Sean Foo<


https://youtu.be/p9IS0pawRTM?si=2QsTy_6C9f6VuoPA


: "When the US starts to push hard, even traditional allies and friends will move to the only other alternative and that will be China. The Australians are now in China looking to talk trade. Suddenly all the animosity and all the old disagreements have melted away which is really quite funny. Albanese met with President Xi inBeijing. He even went to the Great Wall of China. So he's really paying his respects there. And if we look at the readout, we can tell that Australia is trying to hedge their bets. China is a big trading partner and they buy a ton of Australian commodities. <


Albanese 9:54 isn't on a holiday tour. He is visiting 9:57 his biggest customer. Now, China is 10:00 overwhelmingly by far the largest 10:02 trading partner that Australia has. It his biggest customer. Now, China is 10:00 overwhelmingly by far the largest 10:02 trading partner that Australia has. It 10:04 is very much in the interest of 10:06 Australian jobs and the Australian 10:08 economy to have a positive and 10:11 constructive relationship.


Now, this 10:13 sounds like a Captain Obvious statement, 10:15 but when you have the US breathing down your neck with tariffs, suddenly the urgency to hatch with China goes through the roof. And if China and BRICS are going to be the new growth engines of the world, it's obvious where you want to place your bets.<


When Trump starts slapping the world with commodity tariffs, sooner or later, the US market slapping the world with commodity tariffs, sooner or later, the US market will close up on you. China imports four main things from Australia. Iron ore, natural gas, gold, and agricultural products. The Chinese middle class is going to explode over the next decade, which means consumption power is going to skyrocket. Australian mining alone is around 9 to 10% of the country's entire GDP. And the last thing you want is for China to ignore your exports because you know you sure as hell can't sell to the US markets that easily anymore. Now, Australia has made terrible mistakes, especially with the Orca submarines, but at least they aren't doubling down on this madness. Now, to be frank, thatknow you sure as hell can't sell to the US markets that easily anymore. Now, Australia has made terrible mistakes, especially with the Orca submarines, but at least they aren't doubling down on this madness. Now, to be frank, that sounds ridiculous, right? They are buying nuclear subs from Trump, who's punishing their economy to guard against China, which is their biggest trading partner. And that's why I can't take geopolitics and economics seriously anymore. It's a upside down world. But as always, there are no permanent allies, only permanent interests. Now, Australia is one of the few countries in the world that runs a persistent trade surplus with China. In other words, China runs a big trade deficit of 10 to 20 billion with Australia. Australians are earning money from Chinese trade. China runs a big trade deficit of 10 to 20 billion with Australia. Australians are earning money from Chinese trade. They are selling more to China than what they buy from Beijing. Plus, Albanese probably knows China's building new mines and supply chains around the world. And this makes Australian goods an option and not a necessity. and the last thing he can afford is for China to just play within their own supply chains. So this trip is highly pragmatic and we can expect more countries around the world, even the ones closest to the US to slowly peel away. Australia is going to be one of many more to come. But as always, let me know what you chains. So this trip is highly pragmatic and we can expect more countries around the world, even the ones closest to the US to slowly peel away. Australia is going to be one of many more to come. But as always, let me know what you think. Will Besson close a good deal with China? And will the dollar continue crashing even lower? Let me know in the