What is going on..?
If you follow the markets, you would have woken up to the shockwaves that happened on Wall Street last night.
The Dow Jones was down an amazing 1,000 points in early trading!
The biggest ever drop since the 1987 crash.
WOW!
The good news though is that it recovered and ended up 350 points down at the end of trading.
There are not many days in the financial calendar where you would call a 350 point drop in a day a “good day.”
However, after the shenanigans of the morning, you'll probably agree with me that yes indeed, it ended strong (bit of an oximoron, but true).
Reason for the massive volatility?
The Greeks, The Spaniards and The Euro.
So what?
Well, there's money to be made with volatility.
My thoughts, closely monitor the Greek banks, there is a massive buying opportunity right now. You could double or triple your money.
Nah, not interested in that?
Ok… Sell off the Spannish banks.
Heaps of profit in that.
Even that's too hard?
Do some technical analysis on the Euro and sell that off when it break through a decent support level (Don't know what that means? Education, my friend).
Still too hard?
Last one…
Go on a holiday to Europe.
The Aussie dollar is up about 29% against the Euro… Which drives your holiday dollar a lot further.
Yes, it is the best time to go to the Greek Islands, financially, that we've had for over a decade. I'm thinking about it.
But closer to home, we of course have had our own dramas over the last few days, ever since Rudd, Swan and Henry came up with a new tax blueprint.
The word “tax” for me hold no positive connotations. I always get nervous, even when they say that they're going to lower tax.
What I found interesting about the new tax blueprint was the massive effect it had on the resources sector all this week.
$14,000,000,000.00 (14 billion dollars) was wiped off on Monday after Ruddy announced the super resources tax.
Imagine if someone came into your home and said, “We know you're making a profit, and you've got a decent surplus… We're going to increase your tax by 40% because you've been good at making profits.”
You wouldn't stand for that, would you?
But that's what they did with the resource companies, gone in there and said, “Makin' too much money… Give us some.”
There's another group of people who go around doing that, they're called the mafia. For them it's illegal, but if a government does it, it's ok.
But you're probably thinking, “Jon, they're big companies, they can afford it, we should get a piece of the pie.”
You know what that's called?
Communism.
Ok, a strong word. Maybe we should change that to modern day socialism.
Here's how the resource tax works…
They give with one hand a little, and take with the other a lot.
Ruddy justified the tax by saying that the royalty tax will be removed and this new super-tax introduced.
It might on the surface sound like a fair swap, but here's how it works out.
If you're a start-up business, and you're not making profit, the royalty tax hurts because you have to pay it either way.
So the government's thinking is, “We can help the new businesses get off the ground, become more efficient, and when they start making money they'll be able to pay us more in the long term.”
It sounds like it's fair enough – don't you think?
Help the small companies in the early stages and get paid lots more when projects come into full production and fruition.
But companies aren't stupid. Their agenda is to maximise profits, minimise expenses and keep shareholders happy.
Tax is an expense… and a big one at that.
Big companies aren't going to take this super-tax lightly, they'll do whatever they can to hide profit, pay executives bigger fat salaries, move their focus to overseas projects where the returns on capital are higher and by and large, Australia becomes the laughing stock of the world as our smart resource businesses sell out.
So nobody wins.
I think the boys in Canberra, if they're not careful will cook the goose that is laying the golden eggs.
Ruddy's already doing a back-flip on the super resource tax, quickly trying to patch up the mess that he's created, giving excuses already and suggesting that he wants to work with the mining companies to figure out the best possible solution.
After all, the new tax blueprint was only a suggestion. It still has to be signed off in parliament.
But Ruddy put himself in the corner, didn't he?
After that announcement on Sunday night, surely he would have expected a sell-off the next day in the resource sector…
If he says he expected it, then he's personally responsible for the billions of dollars that shareholders lost through the early part of this week. I'm talking about every day Australians who have invested in the recovery and put all their hard-earned money back to work after the dramas of 2008.
I'm not talking about the fat-cat executives, they'll make money whichever way it goes.
But back to Ruddy's dilemma.
If he says he didn't expect it, then that highlights how stupid the government really is to expect otherwise.
Either way, it was poorly executed and presented.
Knowing how the government does stuff through its advisory channels, it would have all been arranged behind closed doors with very little consultation with the industry – and based on theories and spreadsheets.
There is a thing called reality which works a little bit different.
I wonder how many people who are close to this legislation bought put-options on BHP on Friday afternoon..?
Their friends and families would have made a killing.
In time though, we'll see how dumb politicians really are when it comes to light that potentially related parties took advantage of this information.
It's called insider trading and you go to jail for that. But maybe politicians don't, not sure.
So why am I telling you all this?
Well, you have to get smart about investing and keep your finger on the pulse. No point blaming the governments as to the reason you are poor or not progressing, or not moving forward financially…
It's your responsibility to manage your own money and take advantage of quirks like these in the market.
Lots of people would have made money on Monday, a lot of money.
Simply by following some basic stock market principles and understanding how to make money when the market goes down using either options, futures or cfd's.
Also, there's never been a more important time in Australian history to make sure that you don't fall victim to these socialistic acts of the Government, to steal the wealth of its citizens under the pretence that they're making it a better place for all to live.
So be warned. I think this is the first of many attempts by the government to fill up their coffers with money they don't deserve.
Your job is to get smart, grow your wealth and protect it like a hawk.
That's all for today.
Signed with Success,
Jon Giaan
Knowledge Source
P.S. I'm of no political persuasion. Freedom of speech and the freedom to create the lifestyle of your dreams is what I'm working towards. All governments interfere… Some more than others.
P.P.S. I'm sure we've got some die-hard followers who want to jump on the soap box and have a bit of a rant and rave… Go for your life my friends, comment below.
aj says
Hey Jon,
That’s the best email I’ve read in a long time…
Maybe Australia should be run by successful business owners,
who know how to manage their money properly?
Or at least get some proper financial advisors to Boot Ruddy
where it hurts, whenever he gets some “bright idea” to super tax
the guys that are helping Australia make their money.
Maybe will see you on Monday,
and Peter Sun 😉
aj
Melbourne.
L Zacharia says
Jon, I have picked up on a spelling mistake. Should read Cruddy not Ruddy!
Chris Langelaar says
Hi Jon
I have only just downloaded “Milionaire Phenomena” this morning and have yet to start reading it. This all sounds like it’s going to be very interesting.
Greg says
Hi Jon,
Well summed up email Jon – well done.
Good on you Ruddy & the team – big noting yourselves when interest rates went down (due to the GFC). We are still nowhere near a bustling economy – 6 out of the last7 months have been rates rises — can’t hear anyone big noting themsleves for that one.
$20billion surplus to a $150 billion debt — not bad work for 2 1/2 years.
V Moloney says
Dear Jon,
I find you assessment of the Resources Super Profits Tax one-sided and therefore very biased.
As a shareholder of BHP, Rio Tinto, Santos, I support the tax as I am also an Australian who believes that Australian resources belong to everyone in Australia, not only the mining companies.
Your comparison to the Australian government to the mafia is reprehensible and you should be ashamed of yourself ! Your use of words such as communism is obviously designed to whip up negative emotions. However, you may be able to manipulate some people with such words but not all your readers are so easily manipulated. I, for one, am not.
Your sincerely,
V Moloney
Lisa says
Reminds me of CABBAGES AND KINGS by O Henry… it’s easier to change the government than submit to a stupid tax!
Don’t know about you but I know how I will be voting in the next election.
Leslie Patten says
This is an organised global collapse. By the bankers & the governments there henchman all over the world. It is time people woke up to really what is going on. This prop up being the raise of the market was again artifically propped up so they can eek the last drop out of everyone. Total fraud, total treason by every government & bank on this planet. They should all be arrested & tried. By the way it does not matter who you vote for they are all controlled by the same people doing all of this.
What you need is for the people in every country to throw the lot out of office arrest the ones duplicite in it. Get rid of the bankers & take your country & your rights back. For what we have at present is but total tyranny run by the real terrorists & thieves, your so called elected members most not all , & the bankers behind them.
Mike says
Jon,
You have a gift for cutting through the crap and seeing things for how they really are. Keep up the good work.
Tax is theft!!
Ando says
This issue is that the every day Aussie thinks Rudd has their best interest at hand by taking from the rich and giving to the poor. What they do not realise is that their hard work super funds are investing in the resource and energy sector and they would have all lost a great deal of money in the last couple of days.
Hopefully everyone starts to wake up that Rudd and Swan must go. Sure a lot of people who follow stocks closely will make a lot of money but most will loose especially the mid to lower end that work to pay bills and invest for mid to long term because they do not have time to watch their investments every 5 minutes. Lets all hope that they rebound enough to sell out before it gets any worse.
Derek Cheveralls says
Final words from Ruddy/cruddy. “Will the last one to leave please turn off the lights” this will help green house problem and make me look good.
Definition of a politician ” They are like banana’s, start of green, end up yellow and they’re all bent “.
Shawn Dunner says
Jon and All,
I have to agree with all of your comments in your latest blog entries.
I particuarly like the comment ” I wonder how many people who are close to this legislation bought put-options on BHP on Friday afternoon..?”
This would be a very interesting investigation to carry out indeed.
I am sure you are 100% correct Jon………..I am sure there would be several people, friends and family of all the insiders to this proposed legislation, that gained a massive benefit from this announcement…….and gave some back to the insiders that gave them the info.
I am sure that the Opposition should take this to task just to see how many people from the Government did in fact benefit from this.
A similar kind of involvement was created by the former US President Richard Nixon, in the 70’s……..Look what happened to him as a result of his under the table deals !!
I wonder?????
I also agree with several comments from other commentators above, but particularly Greg.
“$20billion surplus to a $150 billion debt — not bad work for 2 1/2 years.”
I have to say that I am not a fan of the Liberal / National party……..but at least they could manage the economy !!!!
Cruddy and Wayne Swan…..what a joke !!!!!
Al says
Minerals are Australias greatest asset and we can only dig them up once. We haven’t been getting enough value for them as a country and we should tax the companies taking them as much as we can. I’d also be happy to nationalise the mining industry.
Leslie Patten says
Dear V Moloney,
What the writer of the article said is completely true, you have yet to see the truth.
Look who really runs the world & who really runs the government & what is really going on. We need all people to wake up. This is to stir you to see not manipulate you. The government here is part of this Mafia Global network, all are except for the ones they have killed. The world is at a a dire crossroad what the powers to be want is total tyranny, our government in Australia included. This is now unfolding in the complete open on the world stage in every country. Have a look really have a look, do you really know who Rudd is & who really runs him?
Steve says
To have puts on BHP is a gutsy move. Sure the indicators were starting to align but it is still a big call (ummm put!) – it is risky, but managed correctly risk = gain, therefore those who took the risk realised the gain.
The resource sector takes risks. They invest billions of dollars into new projects, they create jobs, they ‘financialise’ entire towns and cities. These risks are giving huge returns… so hey, lets just take the returns and give it to the masses who never take risks.
I am tired of these ‘do gooders’ who just see people making money, what they dont see is all the time spent on education, the sweat and tears through the learning of risk managment. These ‘do gooders’ just want to take (receive money), without risk to themselves. Champagne Socialists… i’m over them.
A great email Jon.
Robert Jongebreur says
It’s an election year but we’re also overspending. What needs to be done is to raise taxes to pay for all the rash promises & projects costing billions (insulation, school upgrades – these are only 2 of about 10 or so “revolutionary” programs that later had to be wound back because they were impractical). So Comrade Kevin has found the elixer that he thought would be acceptable to working families and not lose votes. Bringing in higher taxes is never popular but may be needed to keep us on an even keel economically. Taxing the largest, most profitable mining companies sounds great but it won’t work. There is no single fix for overspending, especially if such spending achieves nothing (eg insulation debacle). There will be another backflip. Now the super contributions will go from 9% to 12% but that will be over 10 years. What about Comrade Kevin doing the same over 10 years because over that time period he can change it again any time; people will have forgotten, he will be retired with a massive pension (not that he needs it), free travel etc.
dave says
@Leslie,
I understand where you are coming from with the thieving banks, however..
Man can not be trusted to govern themselves one on one. Why? because the big kid on the block always beats up the little kid. The only thing protecting them from the big kids is the law of the neighborhood.. and most of the time we are all so busy with our own lives that we do not take any notice of the little kid on the corner getting beat up. So we need government to protect people who can not protect themselves.
otherwise, the mafia type people of this world have free run and we can not do anything about it, unless we have the clout that they do.
@V Moloney, very true… why should any one company, who was just lucky enough to aquire land and dig it all up, have a right to make themselves richer and the people who own shares richer, while the rest of us finding it a struggle to make ends meet..get poorer?
Yeah Yeah Yeah, free enterprise rules and capitalism rocks and all that… but that is assuming that everyone does the right thing. But everyone doesn’t, we as humans are greedy and will always take care of ourselves first and then MAYBE if we have the money look after or donate a little to the people who need it.
Yes, Australians should have a share in some of Australia’s resources.
Shawn Dunner says
Hi all again,
I am not sure about the Mafia comments, but look…….in short, the mining sector has been one of, if not the bigest sectors offering new jobs to Australians, particularly WA.
This TAX, as much as the Government says will assist the Nation, will in fact hurt the nation more than any other tax has done in the history of this country.
The large mining companies are already talking about moving a lot of their projects offshore, so this means jobs also moving offshore. I cannot see too many Australians wanting to leave this country just to go to a job, even if it is a highly paid, (dangerous, but highly paid), job.
Interesting that tthe political parties of this nation all have jobs growth as part of their core directives for the future of the nation.
This decision by the government just broke this directive…….even if it is in a round about way.
I cannot remember the last time a govenrment in Australia, wether state or national, had a jobs project that created the number of jobs that the mining industry has created in the last few years………..maybe the Snowy Mountains scheme……and that was a while ago.
The speed that these mining companies will ditch jobs here in Australia will be very swift.
It turn the government also looses the tax revenue from thos jobs, and will probably see a rise in unemployment benifits, which will cost the econemy even more.
So….in total, the economy, and the people of Australia loose out again.
I wonder when the next big Politicians pay rise will happen……..They are due soon?
Shawn Dunner
http://www.secretforonlinesuccess.com
Ravin says
Craig Thompson spruiked all about a national Dental plan,before getting into politics
now he is in No Dental ever mentioned, or Optical plan,
I want to start a petition to keep “THEM” honest re a National Dental and Optical plan.
Who can help me to get such a petition rolling all around Australia,and shame Rudd and his cronies into making things that matter , HAPPEN for all folks.
Cheers,
Ravin
dave says
@steve,
You said “The resource sector takes risks. They invest billions of dollars into new projects, they create jobs, they ‘financialise’ entire towns and cities. These risks are giving huge returns… so hey, lets just take the returns and give it to the masses who never take risks.
I am tired of these ‘do gooders’ who just see people making money, what they dont see is all the time spent on education, the sweat and tears through the learning of risk managment. ”
Well I am sure glad you have had the opportunity to be educated.. lucky you.
so basically what you are saying is, all the people who are smart enough or smarter than others to make educated risks and decisions should reap all the rewards from our natural resources and all the rest of the people who really try hard, have worked there butts off all the life and really tried hard to move forward in life and just haven’t had the chance or luck to get a good education or maybe just are not smart enough to compete with university graduates, so for them it is “Stiff luck buddy” go dig your own water well… we were smart enough to dig one and if your not, ahh well.. bye bye.
Fried or ... says
HOW DO YOU LIKE YOUR EGGS SERVED?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Australia’s resources are the foundation of its economy. To make statements that are so irresponsible in their naivety as to the impact on the markets and the flow-on effects to its citizens’ wealth and confidence warrants belief!!
Never mind the fact that KR is seriously jeopardising his chances of winning another term (this year being election year) a very crucial effect is the huge outflow of funds from International investors – and into or eyeing to get into … S. America, Chinese resource miners and explorers, etc. It’s already happening!
Unless KR does some fast and major damage-control (like reversing his proposed TAX-RAID), international (and domestic) investors, not to mention Chinese buyers will look elsewhere (if not already!).. and permanently. NZ could benefit – if they are smart enough to capitalise on this, so will Africa, etc.
Actually we could all make money … by following the money outflow … watch Chinese junior miners, etc.
Possible Scenario: Employees in the mining and related industries in Australia perhaps should start looking for jobs elsewhere, to prepare for redundancies in the mining sector … the flow-on effect sadly will impact not just the resources sector, but will ripple through to the rest of the food-chain/ economy, possibly resulting in a reversal of the Great Escape (from the GFC) that Australia has just enjoyed.
Would this affect property markets? Perhaps not as much as what’s happening in the USA but quite likely will curb growth … expect the same with the rest of the Great Australian Economy … so yes, as Jon so rightly puts it, it’s now over solely to you to guard your Financial Life … fiercely.
Perhaps petitions could be in order … why not help our miners? Remind KR >> Let’s not kill the Goose that lays His and Your Golden Eggs!! Once our major buyers and investors exit Australia, it may be a case of ……… Fried Eggs!!
dave says
I agree, Kevin and his mates are overspending.. they need to pull the horse up by the reigns and take a look at where they are.
Fried or ... says
FRIED OR POACHED ?
~~~~~~~~~~~~~~~~~~~
Do not for one minute imagine that because you don’t hold stocks that you’ve escaped. Just look at your Super Funds, etc!!
Or that banks and the rest of OZ do not hold them – if the profits of institutions and the electorate are decreased you can be sure that the revenue from tax-take is going to be severely decreased …. then watch out … for the next TAX-HIKE!!
dave says
Free markets under capitalism is the best system to allow people to succeed.
But what about the people who are challenged?
It can make it harder for them to be able to play in the playground so to speak, because others have been lucky enough to participate and they have not.
There is a reason why a nuclear physicist is who he is and a toilet cleaner is who he is. That is because some people just get it. They are naturally smart, just as some people don’t get it and are born simple. that is just life.
However, what John was saying basically is capitalism rules and socialism doesn’t.
well, yes..capitalism works, HOWEVER, where it falls down is because we are bereft of our core values of charity and caring for others and working together as a team for the greater good.
It doesn’t mean there is something wrong with Capitalism John, it means that there is something wrong with our morals and values as a society.
Under capitalism, the rich get richer and the poor get poorer…
Under socialism, the government take from the rich amd middle class and give it to the people who can not look after themselves due to life circumstances or other factors.
Is that wrong? I think there is no perfect system and we need a mix of both..
Anyway, good on those people who are smart enough to be able to play in the playground… the rest of the people will just wait for the crumbs on the plate and maybe they will get a break in life one day from the capitalists.
Fried or ... says
MOTHER GOOSE
~~~~~~~~~~~~~~
Like it or not, our economic welfare is without a doubt tied with the Resource Sector!!
This is basically all that Australia has (no, we do not have a manufacturing sector, as for our agricultural sector – the drought if not the floods will take care of things, and the greenhouse effect is not going to reverse our ever-increasing deserts – NZ has got a headstart here!), and via the Resource sector our economy’s welfare is tied to China – so don’t cut off the umbilical cord … just yet KR unless its’ hara kiri you’re after.
The Resource Goose is the Mother of all Australian Gooses 🙂 – let’s not forget that!!
Steve says
@dave
Hey Dave,
You are posting on a site called “Knowledge Source” then have the gaul go at me about being educated?? I am not uni educated, I am self educated. I got off my butt and went to investing seminars then put it into action. Uni does not teach this stuff. Options, Futures, FX… everything Jon mentions in his email… you can learn it, anyone can learn it.
Anyone, who is mentally stable, can self educate. It just takes committment and most people just dont do it. Book shops and libraries are full of books that will teach you what you need to know. Jon even organises free seminars, you just have to turn up, listen and take action. The internet is loaded with free advice. There really is no excuse to plead hard done by.
I got tired of working hard so decided to learn what Jon teaches and started working smart. I took the risks. My friends (who refuse to educate themselves) say I had it easy… they didn’t see the sleepless nights or the dedication required to attend seminars instead of going to the pub on the weekends.
So yes, I believe that the educated should be able to have their share of the pie, if they are willing to invest their time, take the risk, they should reap the rewards.
I read 1-2hrs every night, every single night, and have done so for the past 10 years, to self-educate and make a difference to my life and hopefully to the world.
Education and action. There’s the key. Now if Rudd wants to make a real difference, teach Jons stuff to school kids.
Now, should we write calls or buy puts over BHP?
Al says
The Australian people are asset owners (minerals being their assets amongst others).
Like any asset owners they should strive to get every last cent of value from their assets.
KR is the CEO of Australia. It’s his job to get every last cent he can for the shareholders (i.e. the Australian people).
Naive to call it socialism. We owe other companies nothing. We owe ourselves every dollar we can get.
Same as any country. Same as any company. Same as any individual.
Get the best deal you can.
Vince says
It took Margaret Thatcher to fix up the economic mess that British Labour created. Cameron, if elected to No. 10, has got a really big task to fix up another 13 years of Labour economic mess again.
It took Howard 11 years to repair the damage done by Keating’s Labor government. In return he was knifed from all angles. Personally I would rather have a high-paying Work Choices job in the mines, than living hand to mouth from the dole or a government bureaucratic job.
Since the GFC Rudd, Gillard and Swan have wallowed in the credit for the stable state of Howard’s legacy to Australia. The result of Labor’s 2.5 years of government is massive debt with very little to show for it. They have wasted our savings purely for playing politics and spin. The worst part is that Labor pretends to be looking after “working families” when in fact they are screwing up their future prosperity.
To quote Thatcher – “Socialism is wonderful, until you run out of other people’s money”. We only have to look at all the corrupt socialist European governments starting with Greece and finishing with the UK. Rudd and his cronies are bent on taking us down the same road as Socialist Europe. Massive debt, massive bureaucracy, spin and hype like “Education Revolution”. I reckon Rudd is worse than Whitlam.
Steve says
Under capitalism, the educated (can be self) action taker gets richer and the non-action takers, or the “gunna’s” get poorer.
The small number of those that cannot work are looked after. Australia is known as the “The working mans paradise” Our existing taxes look after the social welfare system.
Penalise risk taking, penalise innovation… well just look at our markets since KR made the Henry review public.
Thatcher was right when she said “Socialism is wonderful, until you run out of other people’s money”.
Stuart says
Hi Jon. Just wanted to say “thank you” for another engaging read. I LOVE receiving your emails, not just for the advice and thought but for the inspiration. In fact, recently during some life coaching I had to write down a list of people who are my role models – guess what, you made the list for your attitude, outlook on life, capacity to take yourself on and grow.
Thanks again Jon, Stuart
Dianne says
Hey Jon,
Here here. Totally agree with evrerything you said and you said it all so well!
Its good to hear from people like you,
many thanks
Craig says
Loved reading that.
Reminds me of an old bumper sticker that said “Don’t steal, the government hates competition”
Mullet says
I dont agree with it but for teh record, the mining tax proposal is not another 40% tax on top of the 30% they are currently paying…
Nathan says
Hi Jon,
good call on Rudd, mind you we knew what we were getting when labor got in didn’t we? same old financial mis-management.
will be interesting to see if the mining companies get behind the liberals, and whether they invest in some “pro-liberal” advertising around the next election.
cheers Nath
Luke says
A bit rich to diatribe and then say you have no political pursuasion!!!
Your use of the term ‘Ruddy’ etc gives it away. Note that most of the posts here pick up on the Ruddy and even Kruddy/Cruddy theme which lowers the ‘devate’ to childish political scoring… Well done for your mature, educated, considered contribution.
I’m a Liberal voter, but I don’t want you pushing your political opinion down my throat. As a businessman that promotes self development you could have raised the same and very valid concerns in a more mature and less politically charged manner. You are entitled to free speech, but to contribute you have a responsibility to freely speak in a way that is respectful and does not incite banal ‘point scoring’.
Poor form buddy, you are a self development company, not a political party.
Also you should watch out with causation issues. The whole energy sector globally had a sell off, and any rational person would be hard pressed to prove that even companies not subject to the Rudd Government tax would lose due to this, you’d expect them to GAIN if they compete with the likes of Rio Tinto and BHP Billiton – always be wary of forming your opinions on the back of Channel Nine etc!!!!
Also since then they have recovered largely, so how do you explain that???
I don’t like the tax either, but ALL taxes are socialist/communist in nature – so again using such inflammatory terms is poor form on your part.
You have lost a customer, and I will also ACTIVELY speak against you unless you take the time to do a proper analysis of the situation, accounting for the general resources sell off not attributable to the Super Profits tax, as well as the subsequent gains that were made following the $14billion losses.
In the mean time please unsubscribe!!!
I’ll join a political party if I want this sort of content sent to my inbox!
Sincerely,
Luke
Mike says
John,
I totally disagree with you perspective.
I am a successful business person and currently pay more than $100k tax per year, although I do reduce this through careful planning.
My perspective is that key industries like communications, transport, utilies, banking and mining should be operated primarily for the benefit of the Australian people. It’s ok to have private or public ownership, but these business’s should be taxed on a different basis to other business’s. These business’s are making huge profits, either because they have a physical monopoly, or such scale that they cannot be effectively challenged by other market entrants. In this scenario, the best way to ensure that the Australian public benefits, is to either tax the companies or to create a competition so that prices come down.
I have no problem with the super tax, its a valid response to the growth in mining profits. Its been accepted in the Petroleum industry for years. In retail, Westfield , Sport stadiums, Airports directly link their retail rent to the success (profit) of retail outlet, this is no different to a super tax.
You may call me a socialist, which I don’t mind’ but you need to get off you high horse, stop parroting free market nonsense. There’s plenty of money to made by smart people in any economic system, and I’m sure the mining companies would’nt be sticking up for you,
Dale says
Just wandering, instead of imposing ridiculous taxes out of the blue.., if it would be possible as an alternative to new taxes to push companies to RE-INVEST some compulsory percentage of PROFITS in Australia and make this obvious/transparent process. It could be possibly done on incremental scale over reasonable periods which would benefit all parties (except dimished choice for companies to seek better returns on that part of profit somewhere else).
Education and Money subject brought up by some people with ego problems is laughable, as there hasn’t been a touch of financial education available back in mainstream schooling in most of the countries regardless of political and economical diversity. Only total laziness can stop someone in Australia from acquiring knowledge momentum to succeed financially regardless of level of income. And yes, there IS a RISK and LIFESTYLE DISCOMFORT while doing so…!
Come on, Jon! Excellent and inspiring thoughts! Well done!
Gerry G says
Jon – Gr8 e-mail.
Guess what – I just booked a trip to Greece. Really! Best advise I’ve had this week.
I know you said you’re not politically biased; however Rudd-th-edudd is the cruddy pollie we all got. (Don’t blame for that one). ETS was the biggest moral challenge of our time – most agreed back in 07. Now, when their jobs are at risk, the interest rates gave gone up 7 times in 8 months and they are significantly poorer (mainly because Ruddwit put $30k on each house and so the poor first home buyers rushed in . . and guess what; the average price went up by – you guessed it; $30k!) so all of a sudden the ETS isn’t as important. When times are good people think the Govt’t is slack, but $20b surplus means they were excellent and to spend at a rate of approx $50b per annum for 3 years is a complete and utter discgrace.
Remeber this at the next election – oh, and maybe insulation, supertaxes, ETS, illegal immagrants, no work for less than 3 hours for school kids, school sproject, etc, etc and an annoying laugh will help secure your vote elsewhere too I’m sure.
Gerry G.
dave says
@ Mike, Brilliant post mate.
Frank says
I lived through the Whitlam years and then through Fraser’s term. I saw little difference. Howard as treasurer did what a labour government would have loved to do but never dared to try.
What Rudd is doing now is as bad as what Whitlam did. As a nation we are in trouble because we accept any rubbish our favourite political party dishes out.
We will likely return the Liberals to government at the next election expecting them to start the long task of repairing the damage done by Labour – good excuse for tightening the screws. Well, Fraser was in no hurry to change the way our country was run. We still copped the high taxes. He even pioneered backdating of legislation which should have to be approved directly by the people.
Also let us not forget that financial management is not the be-all and end-all. There is also the issue of decency and ethics. Howard, while professing a war on terror, condoned a brutal unprovoked attack on Iraq. That was no good for Iraq’s economy (and that was not the worst of it) but who cares as long as WE are OK.
I do not know how involved Australia was in that action but our military resources were at least committed on standby and it may have been more than just standby. If Howard’s economic management was so good, imagine how much better it would have been without squandering resources on the Iraq invasion.
I am concerned about ethics and I know that Labour is not much better than Liberal. For instance it is threatening us with horrendous Internet censorship after promising a terrific boost in Internet performance. Also Rudd is just as indifferent to China’s treatment of Tibet as Howard was – not a word out of either of them. Both parties have sucked up to the Chinese government – China being such a good customer.
Not much to choose between our two major parties. I don’t know whom I will prefer out of Liberal and Labour next time. Depends how I feel on the day. I preferred Labour last time but that was much easier, especially being in Howard’s electorate. Labour is working very hard to close the gap.
ichatting says
What about the comment that Rio and BHP are partly foreign owned and that justifies the theft!! What is NOT foreign owned in this country, we wouldn’t exist without foreign investment here.
What Rud is doing is not communism, its what Hitler used prior to WW2 blaming rich and hard working Jews for Germany’s problems.
dave says
@Steve,
“The small number of those that cannot work are looked after”
———————-
Oh come on please.. which world do you live in, a perfect one?
Just ask someone who works in old age care or disability services and ask them if they think the government has looked after them properly.
This is the exact reason that capitalism does not work.
Because people get on there high horses and say “well if I did it, then they can too.. otherwise stiff shit” ok, great that means I can be another rupert murdoch.. as long as I read for 2 hours a night. lol.. I don’t think so.. why?
Because they have a monopoly on the media. and they squash anyone who tries to compete, just like Google.. they have gotten way to big and forgot the little people who got them there in the first place. Banning adwords accounts willy nilly etc..
Capitalism creates monopolies.
having said that.. I see the damage that full on socialism can do…
however, at least the little guy gets looked after.
maybe we need 4 years of labor and 4 years of liberal then 4 years of labor then.. rotate..lol even things out a bit. The poor and the rich both win.
T A Stevens says
What’s with this Gov’t standing over Telstra?First the former Gov’t sells Telstra to the people who owned it and now Rudd wants to dismantle a private company to suit his own crazy agenda.T A [email protected]
Ray Atkin says
I would like to think my friend Kurt was right when just before the last federal election he said Rudderless was going to be a one-hit wonder.
The only thing wrong with that is that Julia Dullard might become PM. How long
could anyone stand that voice preaching to us? And her fashion sense! Sheesh!!
On you Jon, this pack of Bolshies want to retard endeavour and success down to their own mediocre level.
Brenton says
Well put!! This is only the start of it. This govt. will be devising many different ways to attack those companies or individuals who can afford it, to finance its absurd spending spree. This govt. is leaving a legacy in its wake of massive debt and this is the burden every business and individual will have to bear for decades to come. The solution is to restrain spending rather than behaving like a mad woman on a rampant spending spree and show fiscal responsibility, never kill the goose that lays the golden egg , and show some care for generations to come.
Rick Jackson says
My initial reaction to this careless and thoughtless article was simply to immediately ensure that I am unsubscribed, but then I went to this forum and discovered this warren full of bunnies being manipulated and moulded into the Great Australian Idiot, for whom this stuff is fodder.
With the clear exception of those posts from Luke, Mike and Frank this is the kind of banal, reactionary but sadly unsurprising load of regurgitated nonsense that usually keeps me away from online forums.
There are too many inaccuracies to respond to so I will select just one to illustrate the distortions being parroted here.
The media reported on day one of this media circus that Rio had suspended billions of dollars worth of projects in Australia as a result of the announcement of this proposed tax. Buried fairly deep in the articles on day two was the admission that Rio had done no such thing. The company had merely stated, as expected, that it would look at the impact that this proposal would have on its projected activities in Australia.
Finally back to the original article for a moment. Jon, if you didn’t have a job in the Howard governments scare department it was probably because you thought you could make more money and do more damage elsewhere. Your inference that some people connected to this announcement could have taken “put” options in order to profit from the sell down that followed was wrapped up with them having been caught, tried and jailed. You started with an inference, created a culprit, built it up into a monster and fed it to the bunnies, and boy didn’t they lap it up!
Some bunny mentioned Nazi Germany. Well this is how it was created y’all. The manipulation and moulding of the opinions of those who felt they were missing out, and the creation of an identifiable enemy to hate and despise. Wake up bunnies, you’re being used.
Oh, and one last thing….. Spell Check. It’s on every computer. Use it if you want to write something worth reading.
Dean says
If Mining companies threaten to go overseas, and you support this as a viable option , this goes to show your ilk, and reinforces the base creed of capitalism that undermines its legitimacy…greed!
People are not born equal. People are not equal. Education is not readily available or of equal merit. If you are born on the wrong side of the railroad tracks, you most likely will be forced to stay there…unless..there is intervention.
Humans are greedy…I believe Communism failed, because it failed to account for human greed, whilst Capitalism flourishes, because its based upon greed.
Sure, the government must stand back and allow fair and equitable trading, but it must provide structures and imposts to direct, divert and control the excesses, whilst providing re distributive mechanisms for those that are less fortunate, less able, less strong.
Minerals, once removed, can never be replaced. It is Australia that should be the lucky country…not the borderless multinationals whom are intent on exploiting our implicitly inherited wealth that all Australians should benefit from ,
And ill end with this point. Aint we all lucky to have been born in the “lucky” country. I wonder how all you bleeding heart liberals would be fairing if born a different color, under a different flag, under a less caring sharing government, founded on principles of equity and fairness for all?. I am blessed to travel a lot, and i see immense suffering and hardships in abundance throughout the world…and i feel myself blessed and privileged to carry an Aussi passport…and have no qualms paying my fair share of tax to ensure our system and our peoples prosper.
Darren Kuiper says
Well said Jon,
Love reading your emails and couldn’t agree more. As history has shown re Federal Government, it’ll be over soon, whether this next election or the next then “happy days”. The majority of voters that did vote for a new change will continue to whine as to the atrocities that Australia is going through but really, who is to blame? Lets take a look at who and why and then make an educated guess. The uneducated masses that have always had short memories. Cant wait for a “New Change” and get Australia back on track. Keep up the great work.
Barbara says
Why do you think the worst of public servants…sowing suspicion and accusations….calling people dumb is highly unattractive. Name calling is actually a form of violence. Putting people down to puff yourself up….kind of controlling to show your superior power…..not freedom at all. Manipulative. False freedom. There are many forms of intelligence….and the seat of it is the heart. Thanks but Ill listen to more integrous and generous councel. Wisdom is required to apply knowledge effectively. If you”d be so great at it why dont you do it. Anyone can stand at the side and throw stones. That is not inspiring at all. Just a learned cultural dishonouring behaviour…..to which lots of “a current affairs” watching demographics would agree Im sure and which you could bond over. Thank you for your email but really what value adding thing is it giving me? How is it serving humanity? I was just NEGATIVE and aweful really. You make out like the Government is the enemy! I require more from the men in my life than this. So reflect on this feedback. So you may have money and be graced with some moneyQ but we all have room to grow as a human beings…and you my friend have a lot. ..let your money go and let it flow…like manure to make things grow around you…This article certainly hasnt grown me, my financial understanding or been useful to my families growth. The value we place on others speaks volumes. I think you have great potential and can be a true success:) but you need new friends and new influence. Rubbish in rubbish out I SAY.
dave says
@Dean, EXCELLENT POST.
Fried or ... says
LET THE (MINING) EXODUS BEGIN
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sarah-Jane Tasker >> RIO will pour $US400 million into re-starting its Canadian iron ore expansion program, as it assesses the Australian resources tax.>>
http://www.theaustralian.com.au/business/mining-energy/rio-tinto-re-starts-iron-ore-program-in-attractive-canada/story-e6frg9dx-1225863509469
Rudd denies Abbott’s claim that Henry mining tax will “kill boom” >>
http://www.theaustralian.com.au/politics/rudd-denies-abbotts-claim-that-henry-mining-tax-will-kill-boom/story-e6frgczf-1225863739236
Mining tax will increase power costs and bills, predicts energy retailer >>
http://www.theaustralian.com.au/business/industry-sectors/mining-tax-will-increase-power-costs-and-bills-predicts-energy-retailer/story-e6frg9h6-1225862765801
Rick Jackson says
A small post script, having just looked back through the earlier posts. Firstly Al and V Maloney, forgive me for having overlooked, and therefore having not acknowledged your intelligent posts, and secondly has anybody really read what Leslie Patton has written? Organised global collapse? I would really like to see what kind of material Les feeds his paranoid conspiratorial delusions with. But then again, maybe I wouldn’t.
Russ says
Wish I had bought those puts. I wonder how many pollies did?
Fried or ... says
MORE FALLOUT
~~~~~~~~~~~~~~
* Andrew Fraser and David Nason
* From: The Australian
* May 07, 2010 12:00AM
GAS producer Santos has joined the revolt by big mining against the Rudd government’s resources super-profits tax, DEFERRING for up to SIX MONTHS a decision on whether to build a $15 billion LNG export terminal …
Others – they are taking their iron-ore mining projects offshore to Africa … etc. you get the drift. At this rate, there will be no miners left in Oz by year end!!
If you are thinking of working in the mines or related jobs, don’t chuck in your old job yet …
Fried or ... says
I don’t think it was Jon’s intention to be negative, he is cautioning his readers to be alert to prevent or reduce the risk of financial hardship or loss. Remember that it was not that long ago that many people had their net worth savaged by the GFC.
Many investors especially boomers parked their savings in the share markets. These same investors don’t have the time-frame to be able to recoup their retirement savings. Even after the market’s rally from March 2009, it is still down from its high in 2007 and folks who bought (as many folks would do) at the peak would still not have recouped all their losses.
A super tax would directly impinge on shareholders – lower profits translate to lower dividends, not to mention lower share prices (lower capital gains). Again if investors are depending on stock market gains and dividends to top up their income/savings then a super tax is going to reduce this for sure.
Perhaps Jon is planning to find a stock or options expert to show us how to hedge / protect/ profit from the next bout of market roller-coaster rides as no doubt there will be given the massive legacies of the great GFC. It is not over yet! but we could turn this to our advantage … ‘be fearful when others are greedy, and greedy when others are fearful – Warren Buffett”.
Making profits is not the be-all and end-all, but it allows one many options – including the opportunity to donate funds and services to good causes – from cancer research to orphanges, etc. just like Warren Buffett, Bill Gates etc. not to mention being able to help those close to you.
Making profits is not a dirty word, you owe it to yourself and your loved ones to give it a best shot – just remember to give it back to those less fortunate than yourselves. Jon’s intention to better himself is commendable … if everyone can fund themselves through retirement there will not be a need for govt. financial assistance in old age … and therefore no burden/ drag on the economy from a burgeoning ageing sector!!
Wade says
Great article Jon
Michael Coleman says
Goodbye, I’m off to WA to stake out my square metre of iron!
Sal says
Think again Jon. I could not disagree more with you.
This is the typical paranoid response from those who fear change and progress. The benefits of the super tax are more than obvious given what is going to be done with it and remember it is a super tax.
Look at BHP’ s dividends. How much lower can they be and BHP is not subject to a super tax yet. If shareholders think that super profits go towards higher dividends think again!
Isabel Dupuy says
In the local paper this week in Alice Springs it tells us how only 5 mining companies out of God knows how many up this way have ever paid the Resource Levy. Mining companies have had it very good for a very long time. They are very good at taking what is not purely theirs to take, very good at hiding the money they have made taking it and terrible at putting back. Just driving from here to Perth WA one see how little environmental work they have done to recover the mess they make.
I find the whole of WA very sad. From the interior it’s the mining companies that have ripped off the land, then the farmers have made the land a salt pan, then every man and his dog thinks they are a property developer, selling off the coast line. And we wonder why there are droughts and severe fires where the weather prevails. Dah!
It’s not just about the money…its about custodianship of our land for the future. Stop being so shortsighted!
Lee says
Why shouldn’t they pay tax. These are overseas owned companies, at lot of the profit goes over seas. Sure we are in debt but our economy is rolling along. Compare it to the UK, US, Europe or dare I say it Greece.
Politicians of any persuasion are an easy target.
When ever you invest you take a risk. Every body who invests should know that. Take responsibility for putting your money where you put it. Stand up and take responsibility for your life. Nothing is for certain.
Money comes and money goes. Don’t get angry about it. Enjoy it while you have it, let it go when it goes, and let it come when it does. Ultimately we are in control of only ourselves, and how we react to the situation. Money is not important, it is merely nice to have. Health, Family and love are important. Politicians can’t take any of those things away from you!
You invest you win…. sometimes…. other times you loose.
Keep it in perspective.
Brian Buckley says
good comments.
Letting you know that
http://www.ozvotersonline.com.au
is running a online voting poll (aka a mini referendum for the interested)
right now on the
subject : 40% resource rent tax .
have your say and tell all those on your email address list about , also anybody else you come across. it is free to the user.
michael says
WOW!!! You are da man Jon. 100% hit the nail on the head. COMMUNISM VERSES CAPITALISM.
HAS ANYONE EVER SEEN THE EFFECTS OF COMMUNISM AND CAPITALISM APPLIED ON A POPULATION?
http://www.paulnoll.com/Korea/History/Korean-night.html
read it and weep. kevin rutt is a communist. I fear him.
.
To many communist here. wanting to tax our mining companies? what a joke. over seas owned? rubbish. remember we are awarded many hundreds of thousands of jobs thanks to the mining industries. they pay us massive wages and give us great wealth. they are making our country a country much talked about. bringing in more investments into the country. its about to get even bigger and better. oops. I forgot about RUTT. goodbye industry. Hello crappy industry. No more exploration and expansion in Australia. Lol. Thanks RUTT you IDIOT !!!
governments are inefficient and wasteful. very easily corrupted. government employees are lazy. they take long lunches. they arrive to work late. leave early. they can even sleep at work if they really want to. I know cause I work for the government., I have seen it personally. Waste is enormous. People just don’t respect publics money like they do there own. when they steal the private sectors money like they do with the super tax they essentially make us poorer. People are unable to see how they actually achieve this. But that’s just how it works. government provided wealth is really poverty for all. housing commission areas are poor for a reason, the government is supplying them. the aboriginals are very poor for a reason and that’s because the government provides virtually everything they need. they get cheap education. they get bigger social security benefits. they get rental subsidies. they are being robbed from any incentive to create and provide for them selves. a perfect example of how destructive socialism is to a society. Just look at communist Russia where the government provides everything for its people. EQUALS POVERTY FOR ALL. The more you adopt socialist systems the poorer we will be too.
DON’T TAX OUR INDUSTRIES.
yet some communist loving people on here just above me cant see this. they can only see the immediate benefits of RUTTS socialist methods. taxing the miners is a joke. what ever other reason they have to tax its a destructive idea.
wealth distribution is a communist idea and has never ever made us better off. EVER in 6000 yrs of economic history.
if you tax our industries we gain nothing but become worse off.
Jon you know how it really works mate. You rock mate.
michael says
TWO KOREAS.
The North is extremely poor and starving because it is 100% communist. The government provides all for its people. see how there is zero light coming from the country at night.
The south is a capitalist Korea country and is thriving thanks to its less involved government.
Look for your self.
http://www.paulnoll.com/Korea/History/Korean-night.html
Kevin Rudd is a communist/socialist. his ideas are going to destroy this country.
Marilyn Aigner-Muehler says
couldn’t agree more. Tax is legalized theft. It seems to me only some of us are “allowed” to get rich. Mr and Mrs Thong in suburbia (regardless of which flavour govt is in at the time) are just not able to get ahead. Someone somewhere is making more legislation or orchestrating more control over our earnings. I believe our hard graft gets the money it is our right to keep what we earn. We are amongst the highest taxed countries in the world. Rudd baby keep attacking the mining sector and we will ALL end up going to bed in the dark – thats if we are lucky enough to still have a bed, a car, a house, a hospital the list goes on.
Marilyn and Peter Aigner – Muehler
Humbug Scrub S.A.
Vlad says
Well Jon you seem to have touched a nerve. But I feel that the Gov’t is well practiced at insider trading, one only needs to look at Telstra to see that.
Unfortunately, we only have a two party system and therefore even when you loose you still end up in parliament. I don’t trust either party, remember JH he told us the GST was dead, then he brought it back to life in 2000. It was suposed to be simple yet it gets more complex each year, just like the rest of our simple tax system.
Give me a third alternative, but as soon as one comes on the horizon the Libs and Labs will gang up against them and squash them. Remember the Democrats and One Nation? Oh well that’s life in the lucky country.
Steve says
So right, Rudd Swan and Co are useless. They have no idea on running an ecconomy. One question if the ETS is now finished untill 2013 what is Penny Wong doing at work till then?
Jeff says
What was the tax percentage before the proposed 40%?
Kath says
Jon, that is the best analysis of the stupidity of this government that I have ever heard. When socialism seems to be tripping over into Communism then it is time for us all to have a good hard look at who it is we are entrusting the running of this country to. High time. Way over time!
Good on you….
Frank Schoo says
“$20billion surplus to a $150 billion debt — not bad work for 2 1/2 years.”
And that is supposed to mean we are doing well, we havn’t been effected by the GFC like other countries, ?????????
Then the real estate market still going up, Why ???????
When my father bought his first block of land, he had to build our house himself because he could not afford a builder. Even so the house cost him more than 10 times the price of the land, that was the 50’s.
Now the average land portion of a dwelling makes up about 70% of the purchase price. Would you think that the miserly realise of avilable land might have had something to do with the massive increase in land value.
Also the local authorities having been incouraged to continually strive to increase the population of their areas, by telling us that they need to strive for higher density living. The companies building high rises and developers are the ones that benifit while the reat of us find our nieghbourhoods are turning into dull drab areas in the shadows of the concrete high rises.
The greedy are taking us all for a ride, they don’t don’t need to use Mafia tactics, they are conmen and the rest of us are just being conned.
How is life style going to improve for the ordinary working Joe who is mainly responsible for produceing the needs & wants for everyone, including the the CEO’s, Bankers, etc who collect the biggest salaries. without ever produceing anything.
The unemployed & pensioners are also unproductive and they get almost nothing. There are millions of unproductive workers, not that it is all their fault,
Our education system trains people to be good employees, not to be productive human beings. The bosses are able to achieve such high incomes because they make the financial decisions, and are able to leverage off the hard work of productive obedient employees.
We are returning to the past and quicker than we realise.
Are you looking forword to serfdom.
john patterson says
Hey guys, while i need money the same as you i am tired of listening to billionaire’s whinge about paying tax when they don’t ever. If you are registered as a corporation you only pay tax on what’s left after you invested your gross. Get it? The mining giants dont pay a thing for the actual oil/coal/metals they dredge up out of our country. They get it for free!!! and then they complain about the “costs” of getting it.So how come they’re all billionaire’s? None of these bastards are feeding and housing the disadvantaged struggling aussie’s!! And you talk about communism?? They are operating a Capitalist Communism system. Those at the financial big end get all the perks and all the control of the media, the oil,the law, the food,the water, the electricity….. Are you all so dumb as to believe the “old communism argument” Wake up. Ask yourself, ” Who’s got the control and the profits?” and that’s who’s controlling you. Our resources are supposed to belong to every australian. We have a right to free air,water,food and resources to help stay alive build a home and raise a family. The only shareholders are supposed to be people born in this country! Please wake up and start doing something for everyone,not just your greedy little self.
john patterson says
Oh by the way, what is “profit”??? Taking more than you give OR to put it another way “to take a profit you must give your customer LESS than they ACTUALLY PAID FOR!! Guy’s and gals WAKE UP !
Sally says
Our pettiness as a nation will come back and bite us ….HARD!
Tony says
Jon,
just read your article on the Rudd tax for the resource sector, most of the mineing companies are oversea onwned & what are they putting back to our ecconamy except for jobs dont you think the gov- should tax them hard?
Fried or ... says
CHALLENGES = OPPORTUNITIES
————————————————
Take a cue from overseas investors – ditch the Australian stockmarket!!
(And therefore the Australian economy!!)
Between the SR Tax (belting the miners) and the law-suits, not to mention the financial Mess from the West (whopping the big boys aka banks) … the writing is on the wall for Aussie!! No mining boom, no extra jobs, tighter and more expensive credit … FALLING VALUES in some housing suburbs (yep!! actually fallen!!!) – housing’s true story is not told, small businesses hurting, retailing – what retailing!! See Myer’s reduced earnings forecast!! Still subdued spending … this Super Tax is the Nail in the Coffin!! for the budding recovery of Australia; guess we had one too many, premature, interest-rate hikes … followed by reckless Tax ‘Changes’ …. KR should take a cue from NZ!!!
So go live and work in NZ!!! Lower tax (budget out today 20 May) !!! and no SRT on mining projects coming up!!! You will have surplus left after tax take to trip over to oz frequently for your weekend ozzie sojourns!! And you will find heaps of positive cashflow properties now …. until 2011. So NO get ready to BUY PROPERTIES IN NZ …. NOW!!!!!!!!!!
Fried or ... says
IF YOU THINK THAT THE MINERS WON’T AFFECT YOU …
———————————————————————————-
So why would miners and banks be the end all of Aussie economy??
Cos’ that’s what the Aussie economy basically consists of!!! Big 4 banks plus ….. miners!!! Knock them on the head and whaddya have?? A teetering market .. and along with it your teetering job, wealth, everything!!
There’s another spectre looming on the horizon that you should know about if not already … China is overheating and has to cool down!! There will be no big buyers for aussie resources when that happens. Get your seat belt on cos dem brakes could be coming up hard for the Aussie soon-to-be Ex-Ferrari !!
Fried or ... says
OZZIE MKTS GET HIT HARDER
~~~~~~~~~~~~~~~~~~~~~~~~~~
It’s extremely naive to think ozzie is going to be insulated from the rest of the world.
Just because it’s ‘escaped’ the last GFC by importing1/2 million immigrants to boost housing demand in 2008 (see how that number has now been drastically trimmed?!) … does not mean this can be repeated endlessly (no more dough for stimulus!!).
The aussie commodity-based economy is much more vulnerable and therefore more volatile and more extreme than many others. Just compare the performance with other markets over the last 18 months. The ozzie recovery is not to be taken for granted, and if you are going to look for mining jobs, don’t throw your old job away … just yet!!
Fried or ... says
TAKE A CUE
~~~~~~~~~~~~~~~~~~
Take a cue from these countries, Singapore (deep pocket), Malaysia (prosperous), Indonesia (rising star) … what do they have in common? … foreign investment incentivised by low tax rates and sensible economic policies that work.
There are many discussions around the issues of SRT and they are valid: ie. hasty, ill-thought out, shrouded by incomprehensibility, retrospectiveness, mulit-billion-dollar impact/ damage on proposed and existing projects … not to mention the bad timing!!
Time to consider diluting or removing SRT altogether before permanent damage ensues …. or join in the takeover of these Miners because they are looking real cheap right now!!
deck spindles says
Would you be serious about exchanging hyperlinks?
langlang33 says
just below, are some totally unrelated sites to ours, however, they are definitely worth checking out