The Forum > General Discussion > Milking Globalisation excuses.
Milking Globalisation excuses.
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Posted by steve101, Tuesday, 16 August 2016 1:36:03 PM
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yes
Posted by nicknamenick, Thursday, 18 August 2016 10:49:09 AM
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Globalisation, like 'free trade deal' is a blight, foisted on Australia by the likes of Andrew Robb, who hastely left politics after the ridiculous charade he was involved in with China.
Posted by ttbn, Thursday, 18 August 2016 12:00:22 PM
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Yep, globalisation has been a disaster....
http://commons.wikimedia.org/wiki/File:World_GDP_per_capita_1500_to_2003.png Posted by mhaze, Thursday, 18 August 2016 12:24:20 PM
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Australian milk industry is a another example of boom bust capitalism blame busts on free market forces influenced by globalisation.
What's happening to the milk industry is similar to the North Australian live cattle export industry. So called experts encourage Australian industry to export products to other countries. Governments lower trade tariffs, family industries are encouraged to borrow money and buy: neighbouring farms; invest in milking equipment; trucks to deliver supplies and materials to mining camps. Borrowers told the future is bright, feeling good about believing optimistic predictions, many poor emotional thinking previously out of work hopeful people buying into booming priced houses on long term bright future predictions. Globalisation is a trap: over supply of commodities, competition sending commodity prices down; currency exchange market prices change to market forces excuses; as interest rates decrease, countries invest in competing industries, eventually putting pressure on governments to raise trade tariffs to protect new industries against foreign competition. New foreign industry producers send over-supplied products into new market making the same products. Barriers go up to protect local industries. Which are why trade tariffs exist in the first place. Countries not raising tariffs, holding onto Globalisation will fix inflation, lowering interest rates to aid further industry borrowing, increasing investment, increasing productivity, too much competition producing too much of what people don't want to buy, lowering prices. Lowering prices does not mean increased customer purchasing. Subsidised dumping over supplied commodities lowers demand for unsubsidised production. Unsubsidised manufacturing fails, closing down, firing workers until balanced between demand for products and availability for providing products returns, rising prices turns into inflation, increasing interest rates, which increases borrowing costs making manufacturing products more expensive to produce, increasing prices on products up for sale: boom bust going back to normal production, supply equals demand cost effective manufacturing industry. In the resulting boom bust cycle, employment increase working class long term borrowing, many working class end in worse poverty than before a boom borrowing period began. I recently heard, “the mining industry would be better off if the mining boom never happened”. Posted by steve101, Thursday, 18 August 2016 2:08:54 PM
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Because bad things happen to a number of industries, the many people not effected by boom busts, aren't complaining as they are more distracted by their own concerns and distractions.
Having watched August 15, Four Corners. World milk markets are over supplied: EU removed quoters on the dairy industry; Russia stopped importing milk products; Milk powder sold to China mentioned on Four Corners, then without any stated reasons, “China crashed”. What seems to have happened was milk co-op executives signed up co-op milk producers using complex worded contracts promoted by verbal assurances that gave Murray Goulburn executives and board members the legal rights to do what they wanted. Milk co-op was floated, shares given to who knows, I expect, removing co-op members of influencing co-op policies. Four Corner program details are selective and vague, spending too much time of the 45 minutes on showing farmers cattle. Two milk companies mentioned, executives used the over supply of milk to sign up agreements with big supermarkets to supply milk at below farm gate sustainable profit making prices. “Supermarket Brand” low priced milk persuades supermarket customers to buy cheaper Supermarket Brand priced milk, reducing demand on more expensive brand milks, reducing better incomes for milk producers. Its bad enough to compete with lower priced foreign competitors milk products, local milk co-op packing companies made local milk producers compete against their own below retail priced “dumped” milk... subsidised by milk farm producers. As China was blamed for dumping below cost to produce steel onto world markets, Australian steel producers can't compete, shutting down. Australian milk companies used Australian produced milk to shut down Australian and New Zealand producing milk industry. Even worse, Murray Goulburn milk company demanding previously paid money to milk producers, to pay back AU$200 million back to a share holders owned milk company. Fonterra milk company seems to want undefined money back from milk producers. Milk producers contracted agreements with co-ops, leave milk producers less money after “told to pay back” co-op deductions, having milk passed onto co-ops. Government offering low interest loans, more debt. Posted by steve101, Thursday, 18 August 2016 2:14:14 PM
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Was the Australian milk industry out competed by Australia’s own over supply of milk. Dumping cheap milk onto their-own market?
Is globalisation the hidden cause for Australian over-priced Sydney housing property market?