Backyard Aquaponics
A place to discuss aquaponics

Sorry.. but bullocks...

The article clearly states that Chile and Brazil were already thinking of such taxes...

And the "commodities analyst" and "equity investors"... are blowing "vested interest" smoke...

The fall of tha dollar etc... is, as the article states.... more in line with commodity prices than anything else...

And in that respect you're right... the timing is bad.... as it allows a smoke screen to hide other factors...

The fall in the dollar... proposed cut in company tax... will only actually add to the mining companies profitability.... and should actually DECREASE prices to consumers...

The new project investment reviews.... relate more to the possible lack of equity that will arise due to the European crisis.... and property bubbles both here and the US...

Smoke and mirrors...

And you think the big mining companies... who actually make a large amount of money from currency manipulations... don't know... and aren't factoring the forthcoming crisis into account.... yep you bet they are....

The rest is indeed bad timing...

Well. in this case the consumers are mostly foreign so... tax away.

Those consumers are already starting to hurt tho (note - prior to the tax). I read that RE prices fell by 30% in china... IN ONE MONTH! If, in fact, the Australian & Canadian markets haven't popped due to China's voracious demand for raw materials, well, look out below!

No read it again. The first paragraph for example:
Another synchronous global bust is underway. It started in January with the Shanghai stock market and it has now spread to equity shares everywhere.


Mish happens to think all corporate taxes should be abolished (in US anyway) and is very against regulation. That only works if governments enforce some reasonable regulation which they aren't (IMHO).

"now is the worst time to announce a tax on insane profits by huge companies on selling finite resources that belong to ALL of the people in given country"

OK, lets wait for a good time....

waiting

waiting

waiting

is it a good time yet ?
(mining companies): NOOOOooOOoOooOoo NO NO

waiting

waiting ...

I think if we are going to have a "double dip" then it's going to be caused mainly by the instability within Europe. Europe is a mine field at the moment... Personally I reckon we are in for some more global pain yet. The global financial problems have not been sorted yet, we've had the rinse cycle over the past 12 months or so. Now as countries hang out their financial laundry, things are becoming more clear and it's not a pretty picture, at least not in Europe anyway, and hey, we are too global to think that it's only their problem.

Then would it not be more appropriate to use an export tax and tarrifs to encourage more local manufacturing and consumption? This global ecconmy with all it's interdependants only fuels the slave labor in China and leaves us in the homeland at the mercy of China and other countries that 1) don't have the environmental regulations that we have and 2) uses child/slave labor where a days work in a factory hardly leaves the workers enough to feed themselves let alone thier families. The human suffering caused is unspeakable. IMO, if it can be made at home, it should be and tarriff the foriegn stuff so price is compatible.

The reason we will have a "double dip" is because there is too much debt in the system (globally). We can not recover until that debt is defaulted on or paid back. Japan never let the debts default and they have been in a deflationary environment since 1989 because of it. Their market is 75% off the top I believe. If we prop up the banks the way they did we have at least 20 more years before the economy heals and before we make a new high in the market.

This is a mathematical fact. Demand was pulled forward by easy credit. Now that demand has to get worked off.

We will mostly likely see this as the economy continues on it's path. Let's hope the tariffs don't lead to war.

BTW, I don't think companies have the pricing power to pass thru taxes. It depends on the industry but it would be awfully tough to raise prices on consumer discretionary items.

I fear war is inevitable anyways. We already see civil unrest in greece, thailand, and etc....with iraq and north korea making waves and banks around the world failing - I think it is just a matter of time before ww3.

Oooo you guys bite your tongues! War isn't inevitable and tarriffs aren't an act of war! We need to stop importing more than we export and we need to get that back in balance and even bring back manufacturing to a level where we can pay them back! When you borrow from someone you have to pay them back. Tariffs are like taking the checkbook out of the hands of a shopaholic spouse so you can save the money to pay your debts!

My main problem with this tax scheme is that it seems to me that our minerals will still get mined, it's just it will be done by the Chinese. They want the minerals but don't care about profit, in fact they will run at a loss and get it back again from our government.
I also don't like it being retrospective and believe there are potential problems with states still able to change the royalty level.

If "we the people" should get paid more for the minerals why is this not the responsibility of the state royalties? This is a tax grab by eastern states but why should they get more? What is wrong with the state that owns the minerals getting the profit from them? And if you try to argue that they are owned by all Australians not just the states then I would ask why draw ownership at our federal borders? Borders only exist by agreement imagine if Europe was to say that minerals in the continent are owned by all Europeans

Anyone wonder why there is no cash around?

Ol' Twiggy(FMG Boss) only picked up a mere 2 billion in the last 12 months.
The cash that got pumped into the ecconomies of the world in the last few months
has been stashed and used to pay down debt.

Another example: bhp was <21$ a share and now is 38.
rio was down to 20 something and recently, but since retreated from, $70 a share.
anz was 11 now over 20(was).

Just think how the financial bailouts have been consumed.

Super tax profits Nah! just tax them like workers and we will be fine.

Double dipping??
How about where a multinational like bhp spends 2 billion dollars to create and processing plant
and it falls over(doesn't work), it becomes a cost and then deductable...
you are being dupt if you believe the tax paid by ALL the majors is relavent to OUR earnings.
Surely if a company can make $50 billion profit in a year THEY are gouging US and what will be left for our kids
to have to use as resources.

bugger it I say leave it in the ground!!!!!!!

There is another school of thought that says one day our population will be large enough to have a decent manufacturing sector...
but by then we won't have enough resources and will have to buy back from someone else... Now thats a nice thought!

Agreed, Novaris. Give people in WA their fair share... Stop robbing us, Robbing Hood "Rudd"... Unfortunately, it seems to me that the WA Premier does not really fight for WA anyway... Most of the landmark resource projects around WA has the majority of the work done outside Australia with only small parts of local content.

Surely one of the true issues of our generation. As we become more global in so many ways, do we do things for the good of the community, the region, the state, the country or the world?

We certainly need to look more at the processing side of things rather than just selling off the raw resource. Value adding is always the way to go. No sense in selling it all off for bugger all..

looks like they're both going to destroy each other ( or themselves ) over this one

hopefully it'll spiral so far out of control that we'll finally have another party in the ring for real