March 16, 2017

Chinese to cut Coal Production

Timothy Birdnow

The Chinese are planning to cut back on their use of coal in an effort to support the price thereof.

According to Mining.com:

'The Chinese leader also said China would cut 150 million tonnes of coal capacity this year, about half of the 290 million tonnes cut in 2016.

China may also soon reinstate coal production curbs in an effort to avoid the return of an oversupply and improve the profitability of its heavily indebted coal industry. The curbs would come in the form of limiting mines' operations to 276 days a year, from the current 330 days.

Coal, particularly the steelmaking kind, rocketed last year after Beijing introduced production restrictions."

End excerpt.

Now is the time to reinvigorate the U.S. coal market. If the Chinese are going to cut production we should ramp it up, force them to sell for less. Not only is that good business but it also hamstrings their efforts to displace America and assume superpower status. The Chinese are not our friends and the more money they have the more mischief they can make (like building artificial islands in the sea to encroach on Japanese territory.)

Americans continue to look at foreign affairs through the prism of Barney the Dinosaur. Not everyone is a friend. It's time we start acting like leaders and stop pretending we are in Mr. Roger's neighborhood.

Posted by: Timothy Birdnow at 08:42 AM | No Comments | Add Comment
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