CJ Morgan: <<It seems to me that our economy is very similar in this respect to places like Nauru, which enjoyed a brief period of wealth but is struggling to support its population now that all the superphosphate has been mined.>>

We tend to react to the effect rather than the cause. The reason our economy is based on the same drivers as Nauru is that our sovereign right to protect our local manufacturers went out the window with the signing of U.N. protocols and the free trade agreements that flowed from them. The first world has been vanquished and we are left to sell our goods and chattels to survive, and as you said they run out eventually.

Dear Julie, Your title “Ground control to Major Rudd..” implies some sort of communication between planet Rudd and the rest of the known universe. I don’t think our PM communicates with anyone on anything. He is in “output mode” only.

There seems to have been little consultation with those most affected, and that includes working Australians who will face cost increases across the board.

What is more concerning to me is the apparent “thrashing” of our PM. It seems that the “grabbing and yanking” of any and every key economic lever is accompanied by populist rhetoric as justification. Every policy announcement sets one section of our society against another, this is getting very ugly.

The mining tax is being “sold” to Australians on ideological grounds and no cost / benefit analysis has been presented, as has been the case with similar and very costly initiatives.

Big policy initiatives need big thinking and analysis because “unintended consequences” of rushed policy can be disastrous, we have already seen enough disastrous consequences with other ALP “rushed initiatives” as evidence.

The rights or wrongs of the mining tax are less of an issue at this stage, because we simply do not know, it has not been explained. What is critical is that all sectors and sections of the Australian community are entitled to fully understand the benefits and the consequences. It is increasingly unacceptable and confusing to many Australians to have major policies literally thrown at the public.

We recently debated the “Health Reform” package here on OLO. We are a pretty determined bunch with talented investigative skills. Astonishingly, no one could explain how the health reform could possibly deliver the stated outcomes.

Now we being asked to support yet another dramatic policy announcement without the economic backing, just ideological rhetoric. To many it seems like a grab to replace CPRS revenue to retire the national debt recklessly incurred on more ideological rhetoric.

The same applies to the mining tax. This ideological warfare is madness and no way to run our nation. It is ugly and divisive

Drag Queen,Julia Bishop's latest harangue belies her Politician's duplicity. She well knows, this 40% Super Tax on the Mining Industry is just another KFC ( Kevin's Financial Crisis ) loopy charade. Despite all the crocodile tears, hand wringing, and dire predictions from Rio Tinto, BHP, Fortesque etc, it is highly unlikely the RSTP will be implemented by July 2012. It will have to pass the Senate first. Both Parties are muddying the waters for Political short term gain.

Out of Henry's 138 proposals to overhaul the cumbersome archaic tax system, only three recommendations have tentatively been accepted. Much ado about nothing.

Looking for ideas ? " Tax the Productive part of our Economy to support the unproductive parts - like our burgeoning, run-riot bureaucratic Public servants, and bloated Govt workers ".

Zeitgeist Treasurer Swan: " these are Resources of the Aust people. This super tax reflects the value of the mineral resources that are owned by the Australian people. This Tax will replace the Royalty regime, which has not given Aussies, their fair value over decades ".

Why has it taken this long to highlight this glaring imposition ? Queensland Labor Anna Bligh was spitting chips, as was WA Premier Colin Barnett.
All State's derive ten's of millions from Royalties, pay-roll tax, superannuation Funds, GST etc which is the mainstay of their respective revenue based economies. Ironically, Swan/Rudd are Queenslanders.
Evidently, his double-speak was not lost among the Labor States, which are visibly incensed.
Alternatively, does it mean we cease trading with China, India, Japan, Korea etc ?. Not a hope in Hell.

Meant to alienate the public into thinking he is a modern day Robin Hood - robbing the rich to feed the poor ! Even though ( in the same breath )he promises to cut the higher income earners i.e Corporate Heads, Parliamentarians, Govt Bureaucrats etc. He may well rue the day for his skewed rationale and chicanery.

Fact is, it's not a normal Tax on super profits, but a super tax on normal profits. There's a vast difference. At 55 % of earnings, it will be
cont..

the highest tax levied anywhere in the World. The reality, if implemented, will cost jobs; slow Economic growth; force projects Overseas; discourage Foreign investment / debt; Banks and Business will move offshore. The livelihood of thousands in Mt Isa, Roxby Downs, Pilbara, Rum Jungle etc destroyed. Whole populations in Mining townships will suddenly cease to exist. More people will join the dole queues. Mugwump Rudd's nemesis, will cost him the Election. The likely aftermath will be mind-boggling !

Kevin's spurious ambitious Plan C, is to retire Oz debt by 2018-19.

All along, politicians of all persuasions have stressed the gravity of his spendthrift extravagance and profligacy; how it will ultimately impact on future generations of Oz kids, left with nonredeemable debt. His GFC stimulus, was nothing short of manipulative aggrandizement. Meant to create mickey-mouse jobs, it fashioned more despair then it was worth. Houses burnt to the ground. Lives lost. Traders saddled with imported insulation bats nobody wanted. Garrett was the fall guy. He lost his cushy Ministerial posit.

Next, his ETS scheme floundered in Copenhagen. Wong was booed and discredited. Flannery, mocked, and the scientific world lampooned as fraudulent and opportunistic. His initial plans shelved for another decade. What became of all the ETS ( Govt) Agencies evangelizing climate change and Global warming ??

Rudd's tarradiddle Health and Hospital Agenda is headed for the same route. If competent State Health Services can't keep up the demand for beds in an aging population, what hope is there for the elderly, when his methodology is modeled after Britain's NHS - which is accident prone, and bears a history of mismanagement and total ineptitude.

The monetary cost, envisaged from reclaiming the GST component from the States, is another recipe for inexorable cupidity. Kevin bribed the States with a fistful of Dollars to accept his plan. A Pyrrhic victory at best. Without the GST receipts, which is dwindling because of consumer confidence and demand, every State absolutely depend on this component for survival. Most State Treasury's are operating on deficits and borrowings. Moody's has downgraded credit ratings on most. Tentatively, the cupboards
cont..

are bare. Little wonder ?
Effusive Julia Bishop is NOT being entirely honest with the Electorate. Most of her colleagues have benefited from bonus issue shares from the Miners. ( Members Pecuniary Interest ) A cusory study of the AEC reveal billionaire Clive Palmer donated $ 280,000 to the Lib-Nat Party in Qld. Energy and Minerals, British Tobacco, and Philip Morris alone donated $ 174,930.
She steadfastly, vehemently states in her preamble : " Mining Corporations should not expect any concessions ". Tongue-in-cheek-no-doubt.

In Washington. DC. President Obama decried 17,000 full time Lobbyist sharing the Rotunda. Many are ex Congressmen, Military echelon, and influential media moguls. They wield enormous clout and decision making on Capitol Hill. Following in America's footsteps, and inspired by the mythical American Dream, we too possess our legions of lobbyist who bestow infinite gifts, lucre and emoluments to push their " vested-interest " barrow. With this in mind, to what extent are Politician's held accountable for ?

" A Lobbyist is a person that is supposed to help Politicians make up their mind. Not only to help him, but pay him ". Will Rogers ( 1949)

CJ, "I'm no economist"

No kidding

First stage beneficiation is heavily labour dependent, and in this Australia can never compete with the likes of China. Second stage, niche market, and high value add is where Australia and other OECD countries can compete.

Secondly there has only been a fraction of Aus prospected. It is unlikely that the availability of minerals will end in the next few centuries.