Interesting to learn recently that ninety five percent of antibiotics in the United States are now manufactured in China. We can assume that it’s pretty much the same for Australia.
But even if that’s not the case, just extending that line of thought, I find it equally interesting how all the economic and financial experts, all the academic gurus and advisors recommend that when it comes to investing that we should hedge against risk by diversifying our investment portfolio across a broad swathe of investment sectors and products?
But in the Las Vegas casino of the world economy, this would be the same political class and the same academic gurus, experts and advisors who have, over several decades, rolled the dice and placed most of the eggs of the Australian economy and our national sovereignty at risk by betting on China.
If nothing else, surely the Coronavirus has demonstrated just how delicately balanced, poised and reliant, the Australian economy is in relation to China?
This has the potential to end very badly indeed.
So much for hedging bets and diversification.