Friday, October 23, 2009


Some Developed Countries to Become “Commodity Colonies”?

As the economies of China and India heat up, they have voracious appetites for resources and energy. There’s no shortage of news stories about China’s recent resource stockpiling (which was enough to drive up the Baltic Dry Index) and oil deals, or about similar activities by India. In fact, this appetite for commodities is expected to create boom times for Australia, and now Asian countries are fastening their gaze on Canada as another commodity supply base.

But how long the boom times will last is another question, as the virtually inevitable US financial collapse will send a tsunami around the world that will swamp many smaller boats and severely rock the bigger ones. In 2008 the US was China’s top trading partner, so the loss of that market will be a devastating blow to the Chinese economy.

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