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The end of business as usual …

July 13, 2012 Leave a comment

Life is good for many of us, so that it’s hard to confront the change that is here, and with that the inevitable end of the quality of life that we see around us.

So it strikes me as obvious that the world is going down a road, in some ways where civilizations have gone before, but not for the same reasons, we are in fact going down a one way road, to the destruction of what is, that we have come to consider as normal.

The reasons are self evident, they come back to greed and the need for ever more growth, leveraged growth, more .. more …  all are unsustainable flawed strategies –  I ask you how can one achieve continual growth in a finite world … this insatiable need for more … we have been all living in a fantasy land, especially the Politicians, who are convinced as they focus on statistics and spin, that they are doing a great job when all around, their citizens are paying the price for their inability to have a real original thought – their incompetence, their lack of leadership, their focus only on re-election, their terror at the inevitability of change – drives them to makes nice little touches around the edge of policy whilst the heart of the country decays and we lumber forward, down the wrong path.

This insatiable greed of a few, has brought us beyond the brink of a global financial meltdown, we are in fact toppling over the edge into oblivion as we speak … whole countries and regions are already suffering in the Euro zone, but the whole world will be within the inevitability of what is to come … our mindless pursuit of the status quo .. has indebted the majority of those in the present to virtual serfdom whilst those in control … known colloquially as the 1% .. but who are in reality probably more like just 10,000 people around the word, are so afraid of change that they have convinced our Politicians (who are only driven by the need to be re-elected) that they need to maintain the status quo, this flawed and failed financial structure – which has little benefit to the majority 99+%, except more of the same. 

It is time we allowed the system to fail, we no longer have the ability to prop it up –  we have to stop, mortgaging future generation to pay for our mistakes or steal their birthright … our beautiful home, this spaceship called earth.

When I walk around cities, I see the crumbling structures, both in stone and in systems that are struggling to maintain what we once were, I see lots of papering over the cracks, whilst the infrastructure rusts and crumbles away in silence.

Within the decade we are in, what is hidden now, will become visible to all, in the first instance with the failure of the Euro$, where whole governments are desperately trying to hang on by their finger nails … they will fail … the inevitable collapse will spark a world wide financial meltdown that has never been witnessed in history. In the United States, cities and states are even now technically bankrupt … what will happen when the Euro zone of some other key point in the chain fails .. the banks will fail … there can be no bailout .. change will be here –  this global correction will affect everyone in every country, those who think they are immune are living in fantasy land – this new reality will inflict misery and unrelenting hardship on everyone.

It will not be fun … in fact I cannot see an upside in the short term … it may take a couple of decades perhaps a generation before we can get back on our knees … maybe as long as a 50 years to a century before we can stand up and face the future with any sort optimism … the only way we have any chance of a future, is by changing what we value.

The OWS … the Occupy movement is a symptom, and a necessary one …. in American the Constitution has been and is being continually walked into the mud, whilst those in power seek to silence those who would say … we have a problem .. sadly, the world economy is past the ability to be healed … change is here Ladies and Gentlemen, hang on, because we are in for the ride of our lives, the destination, the abyss –  the outcome unknown … some of us will come out the other side … but very few … for us to survive, and have the capacity to we will have to have the ability to think outside of the box and really work together without agendas, and realise that economies are not about numbers … they are about fully utilizing all of us, for the benefit of all of us ….

I have spoken of this before back in between 2008 and now … then it was a warning .. now it is too late … money will be irrelevant to our future … the accumulation of wealth for its own sake, is now past its use by date … when it happens, from then on, and in the short to medium term, the only thing that will matter is being able to be sustainable in food, in shelter and energy …

Good Luck …

Halla Tomasdottir: on Ted

December 9, 2010 Leave a comment

This women makes sense…. lets try to take the testosterone and the good old boys club out of making investment decisions or perhaps business decisions in general.

Her profile is here

She follows simple and sound business rules as follows:-

1.     Risk Awareness –  won’t engage if they don’t understand the deal, I ask you who could understand those “securities” the basis of the sub-prime disaster

2.     Straight Talking –  Simple language and explain the upside and the downside …  ethics, honour, integrity and transparency to me

3.     Emotional Capital –  note that people make money and use money

4.     Profit with principle –  decisions made based on these clear principle, and less based on the male herd mentality (she didn’t say testosterone, I did)

Makes sense guys –  how about we all listen to this –  make a long term commitment to a sustainable investment, and stop worrying about this 3 month reporting cycle.

Perhaps the idea of making investments in line with the triple bottom line, economic, social and environmental could be a lesson we all could learn , even some so called sustainable banks we all know.

Rothschilds – another non-sustainable business model

December 3, 2010 Leave a comment

Inspired by an article by Jesse Riseborough and Simon Casey

NATHANIEL Rothschild’s the future 5th Baron Rothschild says he now plans to build one of the world’s largest coal producers.

A member of the Rothschild lineage that helped bankroll Britain’s war against Napoleon, he is leading a $USD 3 billion ($A3.12 billion) takeover that will create the biggest exporter of coal to China

So what do you think the motivation of this is … perhaps greed and control …. by suggesting he could corner the control of the coal exports to China …. when China’s apparent strategy is to use all the worlds coal before they have to touch their own ….  because its cheaper …. and makes excellent strategy … because then they will have the option to burn their own coal totally within their own borders … and so much for the worlds need to reduce burning of fossil fuels.

Most Indonesian coal (there are exceptions… yes but few) is generally not preferred for China in any case due to its high water content –  so what is the real strategy behind this …?  perhaps it is to subtly ( though there is nothing subtle about this) apply pressure to China to just suggest that he can for another advantage or have China as a partner in this venture .. mind you I work in commodities … I think he has a snowballs chance in hell of ultimate success .. going up against a sovereign state in this fashion with their essentially unlimited balance sheet –  but as I said … perhaps this is the opening gambit, and this is merely a vehicle for another strategy, yet to be revealed.

If China even considers such a block possible, does he really think that China will let someone outside of China control –  where importing coal is seen by China as part of an overall strategy … people have to stop thinking that China thinks as we do … they don’t …. their vision runs in decades not our baby steps, in other words the next 3–12 months where most of the western world seems to reside.

If we continue down this road, China will have the last laugh …. they are using our greed and lust for money to win this particular battle … and the war … (as they see it) … please wake up and understand.

If this article is true, I would be surprised, as I really would have thought that the 39 year old Nathaniel Rothschild would have come up with a more innovative and technologically savvy strategy … such as control of essential earth minerals … necessary for us in today electronics or perhaps tomorrows energy sources or perhaps research into a sustainable way to make hydrogen .. which could provide a portable essentially non-polluting power source from fuel cells …. but no … with this dated  coal strategy which would have been innovative 50–100 years ago .. I so don’t think so –  as it has so little vision and is so passe’  ….. do get with it mate, remember what century you are in.

Bonuses – Banking and others

July 13, 2010 Leave a comment

Now with the European Union likely to legislate to specify how bonuses will be paid, for instance a large benefit is only able to have a 20% cash bonus… I am sure the affected people are even now re-structuring their pay to counteract this… perhaps by increasing the fixed component of the pay package…

In the United States it seems is not going to legislate, but issue guidelines… which I am sure that they will be bent, sidestepped and outright broken as a result.

However staying in the USA for a moment, something new has come to my attention…. a new basis for paying bonuses… as we know once of the companies, formerly a major casualty of the sub-prime fiasco and their own corporate greed at that time, has come up with what I believe is a solution… that Compensation for those who receive bonuses should be tied more closely to corporate debt rather than equity… what a resounding good idea, as well as responsible one… how unlike a Corporation.!

I am speaking here of AIG (American International Group) who announced that it will link incentive pay to the value of their insurer’s bonds.

This makes cowboy activities less likely, especially as a short term tactical strategy, and I hope this will turn the train around and move it back to responsibility not only to the company, the industry but also the shareholders – but also to the Corporate world in general.  I believe that these types of incentives protect the interest of bondholders and the ultimate value of the company… this will come to be a good strategy especially in uncertain times, and more particularly when a company’s solvency is in question.

Perhaps the rest of the world, particularly The European Union as well as all markets affected by this disease should take notice

RSPT Changes – is this Government having a Blonde Moment?

June 12, 2010 Leave a comment

The RSPT… I of course do not cast any slight against blonde’s in general who are far more intelligent than the players in question, namely Rudd and Swan

From Rueters (with a staff reporter)

Swan says country will unite behind RSPT

Meanwhile, Treasurer Wayne Swan says Australians will come to support the RSPT, given the need to boost super, build new infrastructure and help small business.

“The country united behind stimulus and we’re confident that in the fullness of time – despite all the argy bargy of recent weeks – they will get behind these plans for a stronger economy as well,” Mr Swan said in a speech in Brisbane.

“I’m not going to pretend this debate has been easy, but it’s a debate I welcome because it goes to the core of our prosperity in the Asian Century.

“It’s really important we have this national debate and every view gets aired as we work towards the final detail of the policy.”

Like I said …  I keep saying this about Swan and Rudd… are their any lights on in Canberra… blonds as well as being more fun, have considerably more intelligence that these soon to be “former” members of the Australian Government..

Swan and Rudd … will be the first players at their level… I was going to say calibre (wrong), to shoot themselves in both feet …. I wonder if Labour wants to get re-elected… if they do … some tough choices by the back room boys need to be done and done quickly…. it proves again that the Labour party has NO concept of Business or their irresponsible rantings into the market.  Changing the sovereign playing field after miners have made their investment is the worst form of governance… retrospective taxation is a totally cowardly and irresponsible way for governing … of course if they had made these changes only for future projects they would have earnt nothing as no future money would role in as the International miners including Australia’s own will look for greener pastures – including moving Billions of dollars out of the Australia market … to a more amenable legislative and tax structure… I wonder if there is any room in Monaco..? and there are plenty of countries out there who would welcome the miners with open arms – the other downside from this as all the employees in those countries everywhere but Australia will not be paying their taxes to Australia…. dumb.

Now all that needs to happen is for the Sword of Damocles to fall on Rudd and Swan and Australia can move back to reality – without the RSPT  …. do that or Labour could spend the next 13 years in the wilderness.

If it doesn’t and they get this legislation through the house, it will not hopefully get through the Senate …  however… Bob Brown also has been known to have his blonde moments.  They won’t use this for a trigger for an early election as they , the Labour party will lose.

If they don’t come back to reality, then Julia Gillard would be hopefully be the first Australian woman Prime Minister… who hopefully can think without testosterone and ego getting in her way… so long as she remembers that she is governing for all of Australia, and not just those of the Labour persuasion… the “Them and Us” attitude is the biggest single reason why this world is not pulling together…. The only down side of the alternative option is that if we have a new government, then perhaps Abbott may be the new Prime Minister… hmmmm…. the man who said in Public not to believe what he said.. sometimes… please define sometimes… can you put up a sign please.

Thoughts on the now

June 7, 2010 Leave a comment

Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone.
If your time to you
Is worth savin’
Then you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin.

Come writers and critics
Who prophesize with your pen
And keep your eyes wide
The chance won’t come again
And don’t speak too soon
For the wheel’s still in spin
And there’s no tellin’ who
That it’s namin’.
For the loser now
Will be later to win
For the times they are a-changin’.

Come senators, congressmen
Please heed the call
Don’t stand in the doorway
Don’t block up the hall
For he that gets hurt
Will be he who has stalled
There’s a battle outside
And it is ragin’.
It’ll soon shake your windows
And rattle your walls
For the times they are a-changin’…….

(Words and Music by Bob Dylan, 1963)

The time is upon us, where we need to change or change for which we are not prepared, will be forced upon us…. What we’re witnessing and experiencing with the many crises the world is facing is a paradigm running out: an entire framework of our societal morals and values, a reality that can no longer contain the problems that it creates, nor can it solve them. A paradigm is a way of saying a shared idea about life, but it’s an idea with incredible momentum and many people trying to hold it up, the status quo.

There are good things about our current reality, the fact that it gives individuals something to strive for… unfortunately this something, money is not worth pursuing for its own sake… and it’s accumulation does not outweigh all the negatives of the current system which has replaced integrity, honour and ethics with lies, spin and expediency … in a new society where all the above good is valued will be created (I understand that compromises will take place… but never at the expense of life and our home ) and that which will give individuals something worthwhile to strive for cannot be money, but working in a self structured, unselfish way for the common good. I do not know what this new form of reality, this new paradigm will be at this point.

To me, it’s becoming obvious through the 2008 financial crisis, its current effects, the impending new financial crisis… and this oil mess (there are plenty of others), are a wake-up call for all of us… that the profit motive is not the best thing to have running at the core of our civilisation. Greed is not spiritual, it’s not sustainable and it’s not even useful; and we are feeling the devastating results of a culture based on this selfish self-serving principle.

Similarly, just because we have always lived a certain way doesn’t mean it will continue, the way we live is not sustainable, in fact in business we learn to change and evolve continually – we need to change as it is part of the very philosophy for our present and future relationships… the way we live now, is not a substitute for love or for trust, yet it’s the way we most often try to coexist – we basically live in hope, that “she will be right or there’s no problem” and so we accept – I do not think we accept voluntarily, we accept because we cannot see an alternative…. so that we accept is too strong a word… we are in fact apathetic towards what is so apparent – but because we, who are part of the paradigm – we do not perceive it as a immediate threat to confront – we do nothing.  We do not look for alternatives, or initiate change (even in ourselves) we just stumble from one disaster to another… In general our current approach to life and the living of this paradigm does not contain the reality of our relationships, for our Spiritual, emotional or social needs.

My sense is that there may be an upside; a positive aspect of this disastrous oil spill, that’s threatening to kill aquatic creatures in the Gulf ( its early days, who knows what the final result will be – if the Oil gets into the Gulf stream – what then ?), actually this event could herald an environmental awakening.

The possibility of saying goodbye to the shores of much of The Gulf and the Caribbean as we remember them, unspoilt beautiful azure crystal clear water… abundant life …. This event may be the first step to wake us up to re-evaluate where we are going – and really do we want to go there…. There is a huge risk to our home if we continue down this path.… this hoped for revelation or perhaps even an epiphany if you like, must be built and revealed within each of us, from person by person as part of our own individual choices, then through the coordination of our individual choices to become those of our families, our communities, then onwards a forceful movement with a louder voice, from community to community, until one day it becomes the new world paradigm…  Perhaps we can start very simply by being conscious of the way we use energy, water and make a conscious commitment to use less plastic and fuel every day.

If you are thinking about your neighbour and not just your own insular world, then these events, and the ones to come, do seem destined to wake up enough people to the simple truth that as a society, we have run out of ideas about how to live, and we will now be shown that there are consequences to this, if we don’t resolve to change. What we are witnessing does seem destined to stir people to make a difference — not necessarily a lot, but just enough. I’m not speaking from my unshakable faith in humanity (unfortunately) to take care of itself, but rather the way that aspects develop and unfold.

Another strange possibility that may have contributed to this disaster, or perhaps the next one, may be that the Gulf of Mexico is a favourite dumping ground for the US military who have dumped tens of thousands of tons of old, expired or unstable munitions, bombs and the suck like… you know … the old adage… out of sight, out of mind… I wonder if the explosion was caused or contributed to by a left over bomb or other explosive device…?  I remember from my childhood when I lived in the Solomon Islands… Guadalcanal in fact (the center of severe fighting in the Pacific in World War 2) … I was told of the large stockpiles of ammunition stored at Hell’s point from World War 2, as well thousands of tons of war equipment, such as tanks, trucks, jeeps, air-planes, and munitions were just dumped in the sea… of the Solomon’s.

Perhaps the best way of understanding this need to change, is to start at home, we need to dump a huge bag of our normal household rubbish onto the back porch and figure out what’s in there and how it got there and what we can do about it. We literally need to question everything – every assumption of the way we live.

We all know there is a problem and many people I know, feel powerless, where to start?  However at the same time they feel that time is running out.  We have been living with this feeling for some time, and  perhaps we will be for as long as we live. To do something constructive would be in our own best interest, as it would be for the world.

Within our own sphere of influence (our relationships, family) we need to make conscious choices, and communicate those choices … even if they seem to be piecemeal, minuscule – only a shuffle forward … it is all positive. Perhaps the reason that so few do, is the feeling that these attempts appear hopeless bearing in mind the enormity of the task of saving our home … we need to have some responsibility back into our hands, and put us into contact with the truth that we are part of the world in which we live, and that it is part of us.

For those people we meet today or tomorrow may be a new beginning of relationships that turn out to be truly significant, perhaps we may meet and find our planets and all of its inhabitant’s true identity and then gather with others with that knowledge, and make positive changes.

This time should be an awakening for us, so many things have gone wrong, are going wrong… is it all coincidence that all these worldwide problems are happening at the same time… the huge Oil spill in the Gulf of Mexico, that has a potential to turn the beauty of Florida, Mexico, and the Caribbean effectively into a toxic waste dump.. by dumping 50,000 barrels of crude daily into the Ocean… Now this blood-coloured crude oil is soaking the Gulf of Mexico, it will cause irreparable damage to the wetlands (the kindergarden for many marine species) , and now threatens to wash up on beaches from the Gulf of Mexico at the moment, perhaps travel up the entire East coast of the USA with the Gulf Stream – so I wonder how many people will have the foresight to travel to their beaches to say goodbye to this once unspoilt beauty ?

Each of us, needs to make changes, in a positive way, no matter how small, so we will have the opportunity to partially redeem our current learn thinking, which is based on using non-sustainable resources, with our own knowledge that this disaster is an opportunity to right many wrongs.

The problem when an old paradigm runs out is that most people do not have a clue as to what’s happening, and don’t take a creative role in what happens next. Perhaps it’s because they don’t know what to do next… no concept or even where to start…. But I think that it is simpler than that, I think we’re being called right now to do both: to notice, and to make adjustments to our thinking and then in our behaviour, our economic patterns (what we buy how we spend our money) and in our relationships and to fill the current spiritual void of greed with a change to the current paradigm to that of one that supports all creatures, great and small.

Perhaps if we decided to travel less, use Public transport more, not buy anything that is wrapped in plastic… and where necessary, use bio-degradable products only, make constructive and positive changes in the way we use the simple things such as water … because water may well be the next Global challenge, definitely a new way of thinking is needed. Together with the deforestation of many old growth forests, we are setting the seeds for our own destruction, and thanks to us… the Armageddon is growing very well… we need to stop it…

If we say use Public Transport more, those which are electric powered, some may say that this just moves the pollution from the cities to the coal fired power generation centers are … so new technology to generate peak load power is urgently needed – we need to invest in our future – and stop this by investing in all forms of sustainable energy / water saving inventions and the like, being taken out of the Public domain by being sold to Corporations – these are then buried and by these corporations and by governments who have a vested interest in maintaining the status quo.

Thoughts come from many different directions from Max Whisson, and his machine that just uses wind power to provide fresh water from the humidity in the air around us… to his fresh water river from sea water…. the thoughts are all out there… keep your eyes open…

We have some serious thinking to do, to work out what it is we want, and what sort of society we want for our children and their children…  in time, a movement will start formerly, a huge grounds well of dissatisfaction is growing with the current paradigm, this new feeling and movement will be made up of normal people, who realise we have to change the way we relate to each other and the rest of the world… and will be based upon a huge dissatisfaction with the status quo. In time (hopefully a short time), this movement will be followed by a vocal response to change Governments by making those Governments and corporations that create this oil dependency and the fact that have effectively killed alternative fuel opportunities, and have goaded us into wars funded by our stupidity and lack of moral courage – based on the scarcity principle, to maintain the fiction that we need to maintain the status quo… we should be spending more on research, on alternative energy sources, such as way to naturally grow Hydrogen as a fuel (currently the normal manufacturing process is not sustainable), aside from heat it generates, it seems to be the current hope, it seems to be the nearest thing to a portable clean fuel… then fuel cell technologies, and some insist of major resources into finding a clean non-nuclear way of providing peak load power… there are innumerable options in the search for alternative power generation …  (Real investment.. in fusion technologies will one day yield a positive reward) the answers are there, we need new innovative thought, we need support for these new ideas, and we need leadership …. We won’t get this leadership from our present political structure as they only want to sustain the status quo. What innovative thoughts ever come out of a Nations Politicians and capitals – very few, I cannot think of any… let’s face it..

But change will happen, hopefully over time, but at the very least a spiritual revolution will happen, is happening in the way we need to live our lives, but this change will not and is not flourishing within the current paradigm we live in.

Albert Einstein said…

”The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

We need innovative thought, from all of us including our children, some may have the insight into this new world paradigm that is waiting for us.

We will need to make new adjustments every day, even as we shuffle forward…  if you or I are one of the people to step up, that are summoned by time and events to do something, my first step forward is to  live in a open highly conscious way, aware of the effect on our relationships, and our planet and how we influence the world. I think we are being summoned to “Care”, to give a dam, and to stop being so passive and accepting about the direction our politicians are taking us (leading is not the right word here) – let’s remember that they have few original ideas in general, if the leadership must come from us, by putting those people in power that can actually move us in the right direction, then lets us make it so – the old political them and us doesn’t cut it anymore… its all of us… who need the same thing – a future.

I have a suggestion: don’t waste your time waiting for anyone else. This is about you. As soon as you accept that it’s about you, then it can become about us, and we can make something positive happen as humanity as a whole.

The human and cost to the planet associated with maintaining the status quo are too horrible to comprehend, such scenarios realistically include societal collapse on a huge scale, and if we do nothing the worst case is the ultimate death of our planet… and naturally our own.

Question:  500 years after societal collapse what do you think our descendants will see as our legacy … everything made of steel will have turned into dust, perhaps the concrete roads may still be visible through the vegetation, assuming of course that the steel reinforcing hasn’t broken down… and after the inevitable wars and anarchy we will return to the basics we need for survival to that of the basic human needs, food, water and shelter –  we will have returned to our lives as hunter gatherers and hopefully we are advanced to a stage where we can farm –  and grow our own food. What do you think someone would think of a computer, who have never seen one before, and there was no power to turn it on… a book stop… or perhaps something to keep the door open…

We are not currently spiritually aware and certainly not responsible enough to realise this is not only about us….

We have a chance, for our descendants sake, to envisage a new world, and its new paradigm where we are able to live in the relationship with our world, as a partner, not in our current role as a needy dictatorial sociopath, who cares nothing for the future of the world or the people in it.

We are at a fork in the road, (in fact I really think we are almost past it ) … I entreat you to please choose carefully – and start making a different in your life, if not for you, then to minimize the effect of you children and the coming generations….

Once the societal collapse comes, aside from the anarchy…. the social breakdown, which will included of course the breakdown of law and order, and the rule of law… many people who in this world who are dependent on drugs to maintain their health will not survive, probably myself included..  Charles Darwin strikes again … the strong, the fit and the healthy will survive – lets hope they are not only physically healthy but can think outside the box as well.

You need to take action… dig up the back garden, mulch your leftovers, and start growing your own food… because you will need it… install water tanks, a move your life towards sustainability, do it now before that day comes when there is no food in the supermarkets, and no water in the pipes

Know this, change is coming, be prepared for it, or be consumed by it  …. let’s stop and think now… we cannot sustain the way we live life… make positive changes as many as you can in the transformation of your life to sustainability… if enough of us do this, it will result in a shift in priorities and a change in how you / we live our lives… and it will force us all to confront the need for worldwide change in how we live our lives. After this, add time… and governments will follow. Otherwise when change comes …. we will have no way of surviving.

RSPT… the reality of the proposal…

June 3, 2010 Leave a comment

I really thought the below from the Managing Director of Xstrata, Mick Davis, who wrote in a letter to London’s Financial Times this morning ( it’s worth quoting at some length):

“Australia’s reputation as a stable regime for foreign investment has already been damaged and investments in Australian resources are at risk of being delayed or canceled. The consequences will be borne by mining communities, prospective employees, superannuation funds, customers, service providers and suppliers, impacting on Australia’s prosperity, particularly in resource-rich remote or rural locations.

“Resources are immovable but diversified mining companies have a choice of countries in which to invest. The government has shown itself willing to breach investors’ trust and damage the economic case on which multi-billion dollar investments were made. In developing countries, we manage this risk by availing ourselves of fiscal stability agreements. Sovereign risk concerns about Australia may once have seemed absurd. Sadly, today they are foremost on every mining company board’s agenda.

“The mooted risk of other countries following suit is largely overdone. No other country is considering imposing such a punitive tax on its mining industry. Australia’s resource taxation will be isolated as the highest in the world at 57 per cent. Indeed, many resource-rich nations regard this tax as an opportunity to gain a larger share of global mining investment – unfortunately for Australia, it is”

This is real, and the above especially the part about the consequence in bold… is how it will impact on us.  – what they don’t mention is of course what it will do the Australia’s reputation and our foreign exchange rate… including our balance of payments, and lets not forget our GDP…

Please – could someone turn the lights on in Canberra, especially in the heads of the idiots who thought this up…run the figures through the modeling again… I could even do this in a spreadsheet (I don’t need a super computer)… its so simple – the government needs to see that they are impacting the whole countries future here… Rudd and Swan ….. what a legacy to leave… Australia as a real banana republic thanks to the political meddling based on totally unrealistic and incorrect assumptions that they have feed into their modelling.

If the Government goes ahead, assuming they can get it through the senate… the miners will say no thanks and they will say it unanimously.  They will change their plans, their focus, and move to another country that welcomes them (surely with the appropriate incentives), and has not taken them for granted and so penalizes them – and they will take their money and go with our benefits, our future and our financial security with them…lets not forget that they will not be paying tax here.

What they, that is Swan and Rudd need to understand is that these are by and large Public companies, real Multi-Nationals who have only one thing to consider besides the Corporate Laws and that is their fiduciary duty to the company and to the shareholders, that is to create shareholder value… paying 57% effect tax does not do that… I really like the comment though that really encapsulates it… The government has shown itself willing to breach investors’ trust and damage the economic case on which multi-billion dollar investments were made ….. if the tax comes in we can say goodbye to the insulated artificial lifestyle we enjoy as a country… and hello at the very least to high unemployment, falling real estate prices especially in the West and in rural / mining economies and a lot of mining associated companies without customers.

Such an event is a no-brainer… a lose-lose for Australia and it is so inevitable – if Australia wants a future with a resources sector as part of the mix, the tax cannot be introduced … if in their ignorance they do, then it will have to go at the first opportunity, probably after the next election.

This is real, and it is a commercial reality…if they companies do leave and seek other pastures, you can be sure the deal to have the companies come back will be a lesson in brinkmanship…something that has not seen since the hard ball days of the “cold war”…with the Australian government saying… ..”how high did you want me to jump, Sir..”  – the only trouble with that is it won’t be Swan and Rudd saying it… because they will be in opposition..

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