Reader Mail: Natural Resources & China Invades Australia

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It looks like yesterday’s Daily Reckoning did not cheer up at least one reader.

“If natural resources are this precious then sovereign states will expropriate them and dole them out on terms that best suit their interests. And they will be prepared to spill blood and wage war to protect those interests.

“This world isn’t a zoo, it’s a jungle. The death of one person is a tragedy, that of a thousand a statistic. Civilisation is the thinnest of veneers over animal instincts.

“I am become death, destroyer of worlds. Man is his own worst enemy. He will disappear from this earth one day.”

Investment wisdom from revealed truth? Ecclesiastes chapter one verse four: “One generation passeth away, and another generation cometh: but the earth abideth for ever.” In the first line “I am become death, destroyer of worlds,” the reader quotes the Baghavad Gita, Chapter 11, verse 32. It is the line J. Robert Oppenheimer reportedly spoke aloud after witnessing the first successful nuclear bomb test at the Trinity Test in Alamogordo, New Mexico on July 16th, 1945.

Hey, it’s not all apocalypse all the time around here. Men are nature’s most adaptive creation. Our goal at the Daily Reckoning is not to scare the living daylights out of you. It’s to make you aware of the financial dangers coming your way so you can get out of the way with your money intact. And for the record, while we are bearish on government, the era of fictitious capitalism, and banking stocks, we are bullish on the future, or else we wouldn’t bother coming to work each day.

And a letter from an American. By the way, your editor is American too. We’ve voted with our feet by leaving that country (for the last five years) to get a better look at the world. We look up to and see a giant stretch of undefended coast. But from here in Melbourne, it’s not all that worrisome. But some people aren’t as sure…

Dear Dan:

I am a subscriber to your daily newsletter. I am very interested in what you say and what your opinions are (not so much from the Brits though).

And as an American, your letter is very difficult for me to stomach at times – because I know what you say is true.

However, from my and many other American’s perspective this is what you need to be worried about:

Australia is a geographically large, mineral blessed country with a small population of 20,000,000 (about the size of Florida). Your military can’t be that large.

China is a country that has a population of at least 100-150 times that of yours. It also has a military that will soon rival that of the USA and/or Russia.

If I were you, I would be worried about China either invading or annexing Australia in order to get your minerals (they did it to Tibet and they may do it to Taiwan).

Just imagine what an Australian invasion scenario would do to the price of gold! I would appreciate you discussing this topic in one of your letters?

Again there are no hard feelings. I have been to your country and I love it.

However you guys better beware down there and don’t let your guard down.

After all I don’t think New Zealand would be much of an ally.

Regards,

Wayne H.

Dan Denning
The Daily Reckoning Australia

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
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28 Comments on "Reader Mail: Natural Resources & China Invades Australia"

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Coffee Addict
Guest

If you lose all your money……. so what! It’s not the apocalypse. All you have to do is make or earn some more – and that could be fun.

And China doesn’t need to invade Australia if the resouces in question can be purchased more cheaply at the stock exchange. In any case China is currently only interested in flexing its economic muscle.

Mr. Eden
Guest
“If I were you, I would be worried about China either invading or annexing Australia in order to get your minerals (they did it to Tibet and they may do it to Taiwan). ” Sorry to disappoint you Wayne, I do not think the Chinese Communist leaders are as stupid as your NEOCONS when they naively believed that the price of Oil would drop to $11/ a barrel when they invaded an OPEC country. Australia is 5 times larger than Iraq, and it would be hard to maintain a long-term occupation force from Perth to Sydney. Besides, all the Chinese… Read more »
DailyReader
Guest

Just because the US invaded Iraq for oil, it doesn’t mean another world power will make the same mistake. I think Wayne H. is still in denial of the actions of his elected leader.

Until Australia starts hiding weapons of mass destruction from the world and China elects an idiot like Bush as president, I doubt the scenario will play out.

tc
Guest

Pretty hard to wage a war/invasion of another country when you have to fly/sail through 6-10 other countries airspaces/waters.

Is Wayne H really Donald Rumsfeld ?

Richard
Guest

i totally support what Mr. Eden said. apparently the guy who wrote this letter has snophobia, he should definitely check it out, without proper treatment, it can develop into a horrible psychological disease called “super-sinophobia” it is very common in the west. how do it know? i am in ameria taking a class called “chinese foreign policy”. some kids in my class have the same symptoms.

Watcher
Guest

No need to worry, If China invaded Australia the US would shower her in multiple warhead intercontinential Nuclear missles, its all good, might get a little cold though ? Anyway seen as we arnt aloud to own Guns down here, we can fight invaders off with penknives and sling shots !

watcher7
Guest
Don’t worry about Australia being invaded by China; China will descend into anarchy and civil war in the coming depression; (China will not soon have a military to rival America even if the world was to escape the depression-enforced restructuring for the Information Age proper). But worry about Australia being invaded by a Japanese-Indian coalition – which will take place at the same time a European Superpower led coalition takes out America. “Rereading history books and the testimony of those who experienced the transition from the Taisho democracy of the 1920s to the militarism of the 1930s, I marvel at… Read more »
bill
Guest
They don’t need to invade Australia all they need to do is sell us food that is full of toxins and cheap furniture and clothes full of formaldehyde… drug dealers and large corporations will take care of the rest, not to mention the small alcohol problem that Kevin Rudd pointed out a nation of dead heads. I actually feel sorry for the people that live in China millions of people die each year due to poverty and pollution they pretty much have no free speech and can get locked up and torchered at the drop of a hat not to… Read more »
G.Gibson
Guest
A number of visions and prophecies from the Christian churches of Australia of an invader to the South Pacific/Australasia region Pass this on if you like… 25 minutes or so reading… download for a reference… Quite often when I would visit my mother in country Queensland I would drive up to one of my favourite hills just outside of town and park the car on the grass strip next to the open paddocks on the hill and look out across what must be one of the prettiest views in all of Australia. Sit there long enough… and the view can… Read more »
SteveG
Guest

And don’t forget to buy gold.

bollywood gossip
Guest

Hi, great site you have here.

Antique Ring
Guest

I usually do not comment on blog posts but I found this quite interesting, so here goes. Thanks! Regards, P.

Eufemia Belovs
Guest

Please, can you PM me and tell me few more thinks about this, I am really fan of your blog…

Laurie
Guest

What a great site and super informative posts too! I am bookmarking and will be back soon.

Dan
Guest
Re: China invading and Australians being obliterated and other scary ideas. Coffee Addict is right, in a way. Control of resources does not necessarily mean colonization, so China does not need to invade Australia. It just has to have access to our stuff, which it is getting. But if that access gets blocked, then plan B might be “regime change” in favour of China. But invasion is practically impossible, as long as the defending country has the capability to take out the population centres of the aggressor (with submarines in particular). What is developing in China is that China is… Read more »
Marina Anderson
Guest

Very funny, Steve G.
Where did you get that revivialist tent ability to stay ‘on message’ despite the revelations?

Rick @ United States Paper Money
Guest

Ive really have learned a lot from your blog. Keep up the nice work.

Jacinta the aussie
Guest
look I really don’t think china will invade us we might be small ‘in size but we have NZ America and the British as allies so communist china holding so much of Americas debt would not rock the boat by starting an all out invasion sparking war I find this scenario highly unlikely I think china’s biggest concern is the world currency so they can drop Americas debt they are currently holding I think we’ve become paranoid I do believe sometime later on in the future foriegn troops will be policing us come on thats becoming reality everyday how ever… Read more »
Robert
Guest

haha � the one who is posting the comments :D

mike
Guest
My greatest fear with an acendant china followed by india coupled with a decline in us power is that austral;ia will be left more and more to her own devices untill we reach a point that its becomes as clear as day that the us cannot and will not get into a major shooting war with china or india over australia…so as austrlai finally wakes up to itself and sees the writing on the wall and initiates an expansion of her military and a clandestine nuclear weapons programme aquisition the chinese will see this and make their move and all… Read more »
Biker Pete
Guest

“…bilogical weaponsm…”

WoBW!~

Australia’s superior intelligence, with a little XXXX added… . :D

Ned S
Guest

Hmmm – Hope all my Chinese rellies will put a good word in for me then?

Does anyone recall the ole joke about what Tonto said to the Lone Ranger when they where surrounded by hundreds of renegade redskins and the Lone Ranger opined “Well my red brother, it looks like it truly IS the end for us this time!” ??? :D

Don’t sweat it Mike – Indonesia will want our resources eventually too. And as god fearing Mussies they’ll protect us from any harm and injustice from the infidel! ;)

Ned S
Guest

errata: where??? => were!!! :D

Biker
Guest

Doncha love these chronological flashbax, Ned? Deja vu all over again… :D

Ned S
Guest

I can see why some of the old timers I’ve known over the years have seemed a bit less excitable than some of the youngies Biker.

Conquest, War, Famine and Death – Brings to mind “Age shall not weary them” for some reason? :)

Biker
Guest
Ned: “…the old timers I’ve known over the years have seemed a bit less excitable than some of the youngies…” Well, one could respond that we’ve seen it all before, perhaps… but that’s neither true nor complex enough. Don’s quote “History repeats itself until it doesn’t” is probably relevant. The patience we’ve had to learn may help explain it. I’ve recounted how I had to move out of the city in the late sixties, to achieve my goal of home ownership. Just couldn’t afford anything on an annual wage of $2200. Mine dew there was no-one around promising a 40%… Read more »
Davo
Guest
Can’t remember where I read it years ago, but there was a “prediction” that we would see aliens landing in 2012 who would come in peace and tell us mere Earthlings that the way forward was to dismantle armed forces, unite under a single government and currency and forego separate religious beliefs. Because they were so advanced, we would change our ways to follow their example and the golden age would begin. Conspiracy theorists would say it was all staged by certain Governments to ensure total control was gained over the populace. I’ve seen movies that borrow some of these… Read more »
Hua Yan Hu
Guest
It is very unlikely that China will invade Australia because of the distance between the two countries and the clearance needed to go through all the countries to attack Australia and also this may damage Chinas reputation among the UN and the world community. If China did invade Australia and annexed it these would be the pros and cons for China and the aftermath. Pros- More natural resources More land space for expansion and industry Strategic point for ongoing invasion of nearby countries for further expansion and resources if necessary. Cons- Bad reputation as mentioned above Resource drain Other countries… Read more »
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