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Old Nov 14, 10, 5:59 pm
  #9  
number_6
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Join Date: May 1998
Location: Portland OR Double Emerald (QF and AA), DL PM/MM, Starwood Plat
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Originally Posted by bensyd View Post
And that's always been Australia's problem. We sell you the wool and buy back jumpers, we sell you the iron and buy back steel, we sell you the ingredients and buy back the food. It's no wonder we usually have such an abysmal terms of trade.
Having more resources and wealth than consumption and manufacturing capacity isn't a problem but rather a blessing. Now policy of how those resources are allocated and who benefits from them is another matter, but that is a societal division of wealth issue. Australia doesn't need to grow the pie -- it is huge already -- but does need to watch which little piggies are taking multiple slices.

One of the most efficient steel mills in the world happens to be in QLD, and now is losing money due to the change in exchange rates (most costs are in AUD and most revenue is in USD). Still a great plant, but now uneconomic. Adding value to iron ore and coal can be tricky. Of course this is when the quality of management becomes supremely important.
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