Comments by "Tony Wilson" (@tonywilson4713) on "Zeihan on Geopolitics"
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AUSTRALIAN HERE:
I wrote to Peter at the start of this series and spoke about some of this.
I hope he pins this comment sorry if its longish
- On the Chinese - Peter is 100% right. We are way too heavily invested in China buy our raw materials. I have worked in our mining industry for most of the last 20 years and when the Chinese hit the wall we will be screwed and their construction industry has been so out of control that it won't be able to do anything but collapse and with that the demand for our raw materials will vanish. We got a taste of it when the GFC hit and as Peter said we didn't learn from that lesson.
Luckily we have the rise of India that will compensate for the loss of China. The question is what happens as China falls and India rises as in how much overlap there'll be.
- On the value adding thing and manufacturing - Peter is 50% right. Before working in mining i worked in manufacturing for over a decade BEFORE OUR ECONOMISTS killed it. We used to make steel and smelt alumina and make cars. We do make flour but only for our market which isn't unusual because transporting flour is a hassle compared to grain. We do make sugar locally and export tons of it. We also export staggering amounts of dairy to Japan and Korea.
What killed our manufacturing was our version of NEOLIBERAL ECONOMICS. America called it Reaganomics, the Brits called it Thatcherism and we called it Economic Rationalism. We had treasurers on both sides of politics who loved it (Paul Keating & Kevin Costello). They privatised everything they could promising "Competition would provide better services and lower prices" and it DIDN'T. They have spun everything that's gone wrong into "Its awesome because investors won." and yes its been awesome for INVESTORS but the other 90% of us have been smashed, screwed and thrown under the bus.
- On the subprime comparison Peter is again 50% right. None of our home loans are guaranteed, its the banks who are guaranteed. Its another part of the Economic Rationalism -> Protect the investors and make everyone else pay for it. The effect is that our banks have been way too open handed at supplying money for home loans. that's driven prices to idiotic levels and when that bubble bursts it will be volcanic and we might not recover.
- On the American links the main reason America will protect us before protecting a lot of other places, IS NOT just because we've been joined every fight America has invited us too. Its because of American has 2 of its most important bases in the world in Australia. There's Pine Gap and Naval Communication Station Harold E. Holt (also known as Northwest Cape). Both have Wikipedia pages but neither really portrays how significant they are.
FIRST - Because of where Pine gap is, its the ground station for the main US Security/Military satellites in geostationary orbit that look down on Russia, China and the Middle East. as well as being the ground station for any other satellites as they fly over Russia, China and the Middle East. Since 2000 the number of satellite antennas has basically doubled on the site. The YT channel RealLifeLore did a great video on this.
SECOND - there's NSC Holt, which is much smaller than Pine Gap but no less significant. Its where the antennas that let the American Navy communicate with all of its submarines in the Indian Ocean are located.
There's rumours that both these bases are nuclear powered, but there's NOTHING to substantiate those claims. So please don't bother me with that crap.
The ACTUAL SIGNIFICANCE is these 2 bases in a "global exchange" is they are ZERO STRIKE targets. In other words they come BEFORE FIRST STRIKE TARGETS. Many Australians are under the delusion that if we have US bases with B52s we'll be a FIRST STRIKE target. So what - the fact is we have not 1 but 2 far higher value targets than 99.999% of Australians realise and have had them since the 1960s. If Russia, the Chinese or a few others really want to do something huge they have to take out BOTH Pine Gap and NSC Holt BEFORE THEY DO ANYTHING ELSE.
That's because Pine Gap is the optic nerve for the "Eyes in the Skye" and NCS Holt is the auditory nerve for the "Ears in the Sea." Basically they are the 2 most important US bases for communications NOT IN AMERICAN territory.
Hope that explains some stuff.
Hope 2024 is better for everyone.
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