If you want to know why we need a significant tax on the billions being pocket by Gina and the gang, look no further than China and the nervousness circling the globe on the stability of the economy. Eventually the party of the resource boom will be gone–and only Gina and her gang of robber barons will benefit.
The warning:
EXPECTATIONS that China will today release its weakest quarterly economic growth figures in three years have added to market pessimism on the mining sector.
Yesterday, Australia’s top mining stocks suffered another selloff as investment banks continued to trim forecasts for commodity prices and share prices, with Credit Suisse downgrading its target share price for both BHP Billiton and Rio Tinto.
And you have to connect this to the world economy:
Australian shares are set for a weak start after Wall Street slipped on earnings fears and European markets closed lower following another spike in Spanish bond yields.
This is not rocket science: everywhere in the world, austerity is the order of the day. People don’t have money to spend. People are afraid.
What we need to do here is see the mining boom as our seed corn: you sock it away for the harder times surely to follow. Not in Gina’s pocket. But, in the public’s pocket.