Iron Ore plunged under USD100 (AUD 98.50).
This is the consequence of the ongoing crisis (well nobody says crisis and China in the same sentence, apart me) in China and it will put pressure both in Australia and China.
Australia is quite logical ….half of our sharemarket is iron ore.
China is more subtle …yes they depend a lot from iron ore – but in more ways than one as a lot of loans are secured by commodities (as in Australia are secured by houses).
So China is racketing up the scaremongering with Vietnam (The Epoch Times signals even troop movement at the Chinese Vietnam border, apart the naval issues).
Probably it will use the usual technique to build up pressure, until the US Navy gets really interested and then “go away” to find another conflict spot (it is pretty much the pattern they used in the last three years).
In reality is mainly for internal purpose (the classic strategy: when there are too many domestic economic issues, create a scaremongering monster outside).
investorpolitico 