Thursday, March 17, 2011

Rothschilds - another flawed non-sustainable business model

This is an old post of mine on another site …. but I thought it was worth a reprise here

Inspired by an article by Jesse Riseborough and Simon Casey NATHANIEL Rothschild's the future 5th Baron Rothschild says he now plans to build one of the world's largest coal producers. A member of the Rothschild lineage that helped bankroll Britain's war against Napoleon, he is leading a $USD 3 billion ($A3.12 billion) takeover that will create the biggest exporter of coal to China So what do you think the motivation of this is … perhaps greed and control …. by suggesting he could corner the control of the coal exports to China …. when China's apparent strategy is to use all the worlds coal before they have to touch their own …. because its cheaper …. and makes excellent strategy … because then they will have the option to burn their own coal totally within their own borders … and so much for the worlds need to reduce burning of fossil fuels. Most Indonesian coal (there are exceptions… yes but few) is generally not preferred for China in any case due to its high water content – so what is the real strategy behind this …? perhaps it is to subtly ( though there is nothing subtle about this) apply pressure to China to just suggest that he can for another advantage or have China as a partner in this venture .. mind you I work in commodities … I think he has a snowballs chance in hell of ultimate success .. going up against a sovereign state in this fashion with their essentially unlimited balance sheet – but as I said … perhaps this is the opening gambit, and this is merely a vehicle for another strategy, yet to be revealed. If China even considers such a block possible, does he really think that China will let someone outside of China control – where importing coal is seen by China as part of an overall strategy … people have to stop thinking that China thinks as we do … they don't …. their vision runs in decades not our baby steps, in other words the next 3–12 months where most of the western world seems to reside. If we continue down this road, China will have the last laugh …. they are using our greed and lust for money to win this particular battle … and the war … (as they see it) … please wake up and understand.

If this article is true, I would be surprised, as I really would have thought that the 39 year old Nathaniel Rothschild would have come up with a more innovative and technologically savvy strategy … such as control of essential earth minerals … necessary for us in today electronics or perhaps tomorrows energy sources or perhaps research into a sustainable way to make hydrogen .. which could provide a portable essentially non-polluting power source from fuel cells …. but no … with this dated coal strategy which would have been innovative 50–100 years ago .. I so don't think so – as it has so little vision and is so passe' ….. do get with it mate, remember what century you are in.

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