Changing plans from Canada to Aus?
Jun 28th 2020, 3:52 am
#46
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Changing plans from Canada to Aus?
Are your recollections pharmaceutically induced? 
I don't work in mining, have never been involuntarily unemployed, and have never even set foot in Texas. I haven't been to Australia either, but I am not sure if that is relevant to your recollection.
Oh, and nor am I a song bird. 
I don't work in mining, have never been involuntarily unemployed, and have never even set foot in Texas. I haven't been to Australia either, but I am not sure if that is relevant to your recollection.
Oh, and nor am I a song bird. sometimes even debate, than the personality being put forward for obvious reasons, I'd have thought.
Jun 28th 2020, 4:09 am
#47
Lost in BE Cyberspace
Joined: Oct 2008
Location: Perth
Posts: 6,775
Re: Changing plans from Canada to Aus?
Commodity prices aren't "dictated from overseas", even if you're in the oil or diamond business, which are the most heavily managed commodity sectors. Commodity prices are, mostly, a simple balancing of supply and demand, so when demand falls the price will also fall unless the producers also cut production. Unfortunately (for the producers who need a high price to enable profitable production what sometimes happens is the opposite, with producers trying to offset the fall in market price by increasing production, which pushes prices even lower. Which what has happened in recent years to oil producers, with OPEC members often agreeing to cut production, while actually increasing production.
Most notoriously this impacts agricultural production, and the failure to cut supply of fleeces is what led to the collapse of the Australian Wool Commission in 1991, when demand (ironically, from China) for wool collapsed in the late 1980's, and the excess production of fleeces was too great for the AWC to continue buying "excess" fleece production at an intervention price (i.e. artificially cutting supply by buying up some fleeces to stop thrm entering the market) to keep the price of fleeces up.
Most notoriously this impacts agricultural production, and the failure to cut supply of fleeces is what led to the collapse of the Australian Wool Commission in 1991, when demand (ironically, from China) for wool collapsed in the late 1980's, and the excess production of fleeces was too great for the AWC to continue buying "excess" fleece production at an intervention price (i.e. artificially cutting supply by buying up some fleeces to stop thrm entering the market) to keep the price of fleeces up.
A major player like China in the importation of Australian iron ore can easily influence the price it will pay. Obviously supply and demand play a role but market share influences outcomes as well.
You write about the wool debacle of last century. It was never possible to stabilize prices for foreign wool importers and Australian wool growers in a sea of floating exchange rates. Having a fixed price obviously encouraged over production of product. Both sides to blame, but there are examples of certain products in stockpile benefiting political maneuverings. The UK stock pile reserves in coal allowed the Thatcher government the freedom to take on militant miners in the 80's, knowing the stockpile on hand would likely out last the ability of the miners to stay out on strike.
Not forgetting the numerous agreements between governments in EU and farmers around pricing.
Australia's wool stock in reserve though was I believe longer than the distance from Seattle to Miami. It should have been clear under local circumstances just what the outcome was likely to be.
Jun 28th 2020, 4:31 am
#48
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Changing plans from Canada to Aus?
I rest my case m'lud
Jun 28th 2020, 4:37 am
#49
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Changing plans from Canada to Aus?
They're paying USD103 because the market dictates that they must
I'm glad I didn't learn economics where you did!
Jul 2nd 2020, 10:21 am
#50
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Changing plans from Canada to Aus?
Have it your way then Herman the German
