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hardnox604008
Advisor

China bid for Potash Corp?

http://www.marketwatch.com/story/sinochem-hires-hsbc-for-potash-bid-wsj-reports-2010-09-01?tool=1&di...

 

Whatdya think about this?

 

Maybe it is one thing for China to buy your corn and beans, quite another to take over your largest potash supplier.

 

Can you say $1000/ton?

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6 Replies
Kay/NC
Advisor

Re: China bid for Potash Corp?

I think that as a nation, in the next 5 to 10 years, we are going to be up against a lot of similar bottlenecks in crucial supplies that will be controlled by foreign nationals, predominantly China.  They have us by the proverbial short hairs on consumer goods for the vast part of that economic sector. 

Just try to buy a pair of domestically-made shoes.  There are still some European brands worth having, but that is about it. 

Now, it will be increasingly the raw materials, too, that are escaping our control.  I still think that old, hokey sci-fi movie "Soylent Green" is an apochryphal tale.

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Gleaner-Baldwin
Veteran Contributor

Re: China bid for Potash Corp?

OK lets say China buys Potash Corp and ask $1000 per ton.  If we Farmers refuse to buy and us their fertilizer yields will go down but so will the food supply.  Wouldn't the price of grain go up so our return per acre be about the same?  If China wants to buy cheap food then they will have to sell the fertilizer at a reasonable price.

 

Maybe they will be doing us a favor in the long run.  I fear grain surpluses like in the late 70's.  You can grow crops without all the over use of fertilizer.  Now I'm not a tree hugging tofu farting liberal.  I'm a Conservative Farmer worried more about my return on investment than raising the biggest yield for the coffee shop talk.

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k-289
Senior Advisor

Re: China bid for Potash Corp?

Maybe they will over do it like in the 70's when Japan was on a buying spree---?? will the egg business be next??/ Never could figure out to this day they can take our scrap metal---ship it there and back & do it cheaper?? no way---to many steps in the transportation steps alone--cheap things are really never a bargain when the hidden cost's finally make there appearance--  like junk food and health care cost's--

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Kay/NC
Honored Advisor

Re: China bid for Potash Corp?

Maybe the rest of you don't see the Chinese the way I do... I have had some business contact wiht some of them, and my favorite attorney sits on the boards of a couple of Chinses corporations.  He's taught me a great deal abou thte collective consciousness there.

They promulgate public policy via the private lives of their citizenry that accomplishes overall government goals.  In America, by comparison, government policy rarely drives personal decisions as effectively or efficiently.  We try to persuade...they issue edicts. 

Not that I am in favor of it, but any country that can make and stand by a policy that convinces a mother to throw her newborn baby daughter down a well is a horse of another color, for sure.  If you think they can do that sort of thing,  and then give a rat's patoot about the US farmer, dream on. 

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wt510151
Senior Contributor

Re: China bid for Potash Corp?

If you think that China doesn't already have the US on a leash, think again. Our debt is funding this purchase! When will they start giving us edicts to follow?

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Kay/NC
Advisor

Re: China bid for Potash Corp?

I fully agree...and in many ways, they already tell us what to do and when to do it.  We've mortgaged our nation's welfare, and the Chinese know it and planned it all along. 

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