By Jo Nova

In terms of civilization, Niall Ferguson is speaking simple maths. The arithmetic of resources.

Niall Ferguson:

“For an enormous island that is thinly populated, with enormous resources — for such an island to be ill-defended seems like the most spectacular folly…

Empires, at some level, are about acquiring commodities at below market prices, or at least not trusting to the market to supply you — not to be at the mercy of the market, or the mercy of a navy, the US Navy, which China currently is. 

To have security China cannot be dependent on imported commodities and market prices, when you think about what that implies for Australia, its really quite scary…

Australia is a prize…

“If you want Peace, prepare for War.

If you want War, act like it will never come. Allow your defense capability to atrophy.”

The lucky country needs to prepare

The rulers of China would be irrational not to want more land to feed people, and control of more resources. Australia has  the largest known uranium reserves in the world, the 2nd largest cobalt, lithium, tungsten, vanadium resources. It is in the top five for world economic resources of black coal, brown coal, copper, ilmenite, magnesite, manganese ore, silver, tin.

Australia has 0.3% of global population but is currently producing 27% of global bauxite, 36% of the world’s iron ore, and 53% of it’s total lithium. It is often the largest exporter of coal and sometimes the largest exporter of LNG.

–source: Geoscience Australia

 Australians assume that the US will be there, but it has its own battles.

h/t David E