OT: Current Affairs and Politics

[Gary Gutful]

Anyway, enough dialogue and thoughts on climate change from me...

I'll let you all carry on.

I'll get Twizzle to create a post bot that says "we wont make a difference...because China". We'll program it to go off once every 6 hrs and the discussion should continue to flow smoothly.

 

[Bandwagon]

This is a complete fallacy. It's wishful thinking at best.

Sure there would be a short term increase in the price of coal, but that increase wouldn't be ridiculous and it wouldn't probably exceed the price that the world has previously paid for coal throughout history (even in the last 15-20 years). In fact the price of coal has recently come down, so an increase in the price would just return it to previous levels. This short term increase would only occur if Australia stopped production immediately. if it made the decision to stop in 10 years, it would make little to no difference to the price.

Australia's coal exports account for only 5% of the total coal production World wide.

If only the other Top 15 coal producing countries increased production by only 5% it would cover the removal of all Australian coal from the market. Given that Australia increased it's own coal production by more than 5% in one year in 2010, then this level of increase is easily achievable in the short-medium term. None of the other Top 15 coal producing countries in the World have made any decisions to stop the production of coal.

If only the Top 3 coal producing countries in the World (China, India, USA) increased production by 9% it would more than exceed Australia's total coal exports. If China alone increased production by 12% it would cover Australia's export amount.

The total coal reserves in the USA, China, Russia and India combined is 8 times the level of coal reserves in Australia. The USA alone has significant reserves to cover Australia's current level of coal exports for over 600 years.

This doesn't take into account those countries with significant reserves who don't produce and/or export to anywhere near their capacity at present. If any thing, Australia's removal from the market would encourage new countries to enter the market.

Would a lot of this coal be as clean as that exported by Australia? Probably not, but that would be the price paid for Australia's exit from the market.

The World will continue to mine, produce, use and export significant levels of coal whether Australia is involved or not.

Gee, it's funny how markets work isn't it, all this spare capacity, and we still export to the likes of China, and even India.

What gives? Why are they buying our coal if it was simply a matter of upping their production?

Why are these countries with all this extra capacity not utilising it, I mean there's money to be made right?

It's just not that simple, if it was, we wouldn't be exporting the coal we do.

 

[Bandwagon]

Demand and supply are relatively independent. Price is the key variable. It changes a lot faster than the existence of goods and services, or how much people think they need them.

Nonsense.

The three are inextricably linked, and price is only ever a reaction to perceptions around the balance of supply and demand.

 

[Gary Gutful]

Pou and Chipmunk. You can now officially join me as Bandy's latest Portuguese Chicken products...

 

[Poupou Escobar]

Economics is just opinions. Like footy it's all bullshit. If it wasn't economists would make accurate predictions. So would footy pundits.

 

[Chipmunk]

Gee, it's funny how markets work isn't it, all this spare capacity, and we still export to the likes of China, and even India.

What gives? Why are they buying our coal if it was simply a matter of upping their production?

Why are these countries with all this extra capacity not utilising it, I mean there's money to be made right?

It's just not that simple, if it was, we wouldn't be exporting the coal we do.

We actually export most of our coal to Japan and South Korea, who have f**k all.

You're ignoring overall trade between countries on why one country sells coal to one mob and another mob doesn't.

Minerals exports are often related to overall trade relations and there's often a quid pro quo in the trade game. That's an argument for another day but why do you think we probably have a greater per capita of Toyota cars and Samsung phones than other parts of the World.

China is still a Top 10 exporter of coal, but also imports it from us, Indonesia and others. You'd have to have to ask them on there reasons why, but I'd make a guess it's an overall big picture trade related.

 

[Gary Gutful]

Economics is just opinions. Like footy it's all bullshit. If it wasn't economists would make accurate predictions. So would footy pundits.

You are.

 

[Bandwagon]

We actually export most of our coal to Japan and South Korea, who have f**k all.

You're ignoring overall trade between countries on why one country sells coal to one mob and another mob doesn't.

Minerals exports are often related to overall trade relations and there's often a quid pro quo in the trade game. That's an argument for another day but why do you think we probably have a greater per capita of Toyota cars and Samsung phones than other parts of the World.

China is still a Top 10 exporter of coal, but also imports it from us, Indonesia and others. You'd have to have to ask them on there reasons why, but I'd make a guess it's an overall big picture trade related.

China exports around one half of one percent of global exports, which I would hazard a guess at being to neighbours such as the many "stans", whereas Australia accounts for nearly 40% of global exports.

Irregardless of why this is, it is. Now if you're gonna remove 40 odd percent of global trade of a commodity and think that isn't going to have an adverse effect on prices, really you're detached from reality. .

 

[Bandwagon]

Economics is just opinions. Like footy it's all bullshit. If it wasn't economists would make accurate predictions. So would footy pundits.

Cool, so when you make definitive statements about economics, it's all bullshit?

Glad we got that sorted mate.

 

[Gronk]

 

[Twizzle]

nothing gets past him

 

[hindy111]

Im looking forward to being CCO

Where is my coffee you merkin.

 

[hindy111]

Oi!

What ever happend to that merkin

 

[Happy MEel]

What ever happend to that merkin

The mad merkin went on tour with Chopper.

 

[Poupou Escobar]

Cool, so when you make definitive statements about economics, it's all bullshit?

Glad we got that sorted mate.

Your poor ability to infer might explain why you place such value in economics.

Don't misrepresent me. My opinions are my opinions, your opinions are your opinions. The overall pursuit is bullshit. That your opinions are free doesn't affect my demand for them in the slightest. I'm not buying.

 

[Bandwagon]

Your poor ability to infer might explain why you place such value in economics.

Don't misrepresent me. My opinions are my opinions, your opinions are your opinions. The overall pursuit is bullshit. That your opinions are free doesn't affect my demand for them in the slightest. I'm not buying.

You'll note the question mark at the end of the first sentence, that indicates a question.

The second sentence is sarcasm, I know hard to recognize sometimes.

Now tell me exactly where I assigned you a position mate?

 

[strider]

Where is my coffee you merkin.

Wheres my pay cheque ffs

 

[Gronk]

Wheres my pay cheque ffs

Did he not mention that it was an internship ?

 

[hindy111]

Wheres my pay cheque ffs

Ram and I are stillll discussing how and when you all will be paid. I am thinking of paying Gronk in free energy.

 

[strider]

Ram and I are stillll discussing how and when you all will be paid. I am thinking of paying Gronk in free energy.

FFS ... I have a title ... Im part of the executives ... If you are not careful i might take my chief coffee officerialness elsewhere