Australian Mining Shares Tumble on New 40% Tax on Resource Firms to Fund Increase in Government Employee Wages

Stacy Summary:   The Banana Republicanization of the entire Western world.  Government employees and the graft they are able to extract corrupts the entire economy.  It would be one thing if a resources tax (and Michael Hudson has some interesting ideas on this) were being used to abandon all income taxes and not being used just to line the pocket of the political class (some reports also say the revenue will be used to cut some taxes on  property); but, to me, it looks like the only thing being abandoned is the illusion of free markets.  Political classes are just openly and blatantly plundering our Submerging Economies, as they have apparently given up all hope of competing with Emerging Economies.

174 thoughts on “Australian Mining Shares Tumble on New 40% Tax on Resource Firms to Fund Increase in Government Employee Wages”

  8. themoops

    Oh yeah I forgot. Lol @ the Greek retirement age. 52. Lol again. As part of the bail out rules they now have to bump it up to 67. Just like us in Australia. Oh, the boomers will be exempt from that of course, it will be brought in in time for gen x.

    @Zaphodity. Yeah no doubt the mining tax will go to Labor’s tradie mates in some perverted form instead of building stuff we need like trains. Maybe we’ll get a free dunny this time. ( dunny is toilet in Australian )

  12. frances snoot

    “Fitch notes: “The rating actions reflect Fitch’s view that the banks’ already weakening asset quality and profitability will come under further pressure due to anticipated considerable fiscal adjustments in Greece.
    In particular, Fitch believes the required fiscal tightening that needs to be made by the Greek government will have a significant effect on the real economy, affecting loan demand and putting additional pressure on asset quality.
    The latter could result in higher credit costs, ultimately weakening underlying profitability.” In the US, where any news is good news, equities jump following the headline.”

    http://www.infiniteunknown.net/2010/02/23/in-the-worst-possible-moment-fitch-downgrades-greeces-largest-banks-to-bbb/

    Weakening asset quality?

    http://ftalphaville.ft.com/blog/2009/12/17/115516/digesting-the-basel-reforms/

  13. Josh Fulton

    Any possibility they’re taxing mining companies to prevent the discovery of more gold and silver?

    Just a conspiratorial thought, ya’ll.

  15. white hunter

    maybe what you tax, you have less of; what you subsidize, you have more of.

  20. frances snoot

    Weakening asset quality?

    “Investors are worried about the potential hit to French banks from higher capital and liquidity requirements being pondered in Basel and about a bank tax on earnings – a draconian version of which was promulgated last week by the International Monetary Fund.

    Many banks globally would struggle to fulfil the tighter demands from regulators.

    However, in some areas the French banks could be at a possible disadvantage to others, such as proposed rules on capital treatment of subsidiaries held alongside minority interests.

    Agricole, since it owns shares in its main shareholder, is regarded as among the most at risk from the proposal, which would oblige a bank to account for 100 per cent of the capital requirements of the subsidiary, even if another shareholder holds a substantial minority stake.

    In general, French banks’ tier one capital ratios – a measure of balance sheet strength – are at the lower end of the 9-11 per cent European norm.

    Analysts at Credit Suisse estimated this week that France’s top three banks – BNP, SocGen and Agricole – could face a €565bn funding gap due to the global liquidity requirement being set up in Basel.”

    http://www.ft.com/cms/s/0/d20bd424-52ff-11df-813e-00144feab49a.html

  25. FranSix

    @French Banks

    I would be surprised if banks everywhere were not seriously considering bolstering their asset ratio by accumulating bullion.

  26. frances snoot

    @FranSix:
    Has Basel defined buoy-on as a ‘highly liquid asset’ for Tier 1 capital? Or are you just hopeful?

  27. frances snoot

    Of course the sdr reweight and the Basel liquidity proposal will both be released in December this year: time for fireworks in January.

  29. frances snoot

    “A key question relates to the definition of liquidity. Far greater demands to hold high quality liquid assets as a buffer will arise and, in practice, Government securities will form the basis of bank liquidity buffers. Assets that are not considered highly liquid will attract increased costs as they cannot be counted in the liquidity reporting and longer term funding needs to be set against holding them.”

    http://www.bis.org/publ/bcbs165/ecpc.pdf

  30. karate kid

    food for thought
    tax mineing companies
    because they know gold will soar
    get the money before it leaves the hole
    inflation will come quickly
    germany it was one week on sunday a million dollars
    by saturday it was worth a 100 dollars
    prepare because you are your only hope
    ob1 kanobie wont be here
    hi max stacey
    its raining in westchester ny

  32. hollow man

    This turely a wonderfull web site. Thanks for help to open my eyes to the couurption that is the US.

  34. sedgewickville

    Josh, here’s another angle…
    rather than restricting the search for new gold/silver, perhaps the gov. wants to tie tax revenues to the anticipated increase in the value of gold/silver – thereby generating increasing tax revenues as the price of gold and silver goes ballistic in the near future….

  37. sklein

    The Queen sacrifice…

    Goldman Sachs, Chess, and the Godfather

    http://fedupusa.org/2010/04/30/goldman-sachs-chess-and-the-godfather/

    -snip-

    Goldman Sachs is very much analogous to a queen in the chess game being played by the ownership class—the richest pools of private capital controlled by multi-generational wealthy families that hover above countries via the central banking system. It has been one of the most potent pieces on the board for many years, its most recent attack being on the entire nation of Greece. But as the endgame comes into view, perhaps the most brilliant play to reach checkmate is now the queen sacrifice. Goldman employees had better be sending their resumes to JP Morgan Chase—a critical chess piece in the endgame that will be protected at all costs.
    -snip-

  38. The Dork of Cork

    Gold knocking on the 900 euro door – wow

    This is a rise that I ain’t chasing but who knows where we will be at the end of the week !

  42. frances snoot

    http://imarketnews.com/node/12752

    “BERLIN (MNI) – German Chancellor Angela Merkel said in a newspaper interview published Sunday that the European Union should be able to revoke the voting rights of member states that violate the deficit limits set under the EU Growth and Stability Pact.

    “As a last consequence it should be possible in the future to temporarily revoke the voting rights from a country which does not fulfill its commitments,” Merkel told German weekly Bild am Sonntag.

    The Chancellor stressed that this was essential for Germany.”

  44. Bev

    Your report is untrue. I live in Australia and have followed tax report and changes to the increase in taxes of the larger profit mining companies.
    It is not to fund wages of government employees, it is to fund higher superannuation payments to employees on low wages.
    This has been reported widely here, nothing like what you say has even been hinted at by the (right wing) opposition or commentators.
    Your report is such a distortion I can only wonder what your agenda is, apart from disinformation which is obvious.

  46. Bonn

    @ Youri
    Remember how tey started wit ta Anthrax letters immediately after 9/11
    To distract us from looking @ 9/11 more closely
    Same stupid plot tey gonna use now to Distract ta peasants from GS & bailouts
    Tey really tink we r stupid
    Power hungry psycopathic Twerps
    lololololol
    ROFL
    Hic ;-)

  47. The Dork of Cork

    @
    R. Cain

    I would not thrust D. Gartman with my last Banana – the guy is a pure fake

    Greece can default yet stay in the Euro – I believe that is the Plan but they need more time to devalue the currency another bit.

  51. FranSix

    @Copper Futures

    Copper futures doing comparatively poorly:

    http://www.finviz.com/futures_charts.ashx?t=HG&p=h1

    @Traction In Gold Futures Markets

    I think traction is in the bullion markets because lease rates are above short term yields. (The discount rate in the U.S. is .16%, while the one month lease rate is .29% – even the policy rate is lower.)

    So, theoretically, its suddenly become cheaper to borrow gub’mint money and buy gold futures for immediate returns than it is to lease bullion and vend it into the markets. At the same time, you have declines in the face value of leases while the gold price advances.

    It bears watching.

  54. frances snoot

    @Youri:
    Risk is not toxic: fraud is toxic.

    The link you provided fails to differentiate between risk and fraud.

    Now bank liquidity is being damned: but not sovereign liquidity which is being enhanced.

    This is insanity.

    The fraud is dressed in hypocrisy and sanctity these days.

  55. frances snoot

    The application of the acrimonious acronym piigs to members of the EU is part of the arbitrary application of regulatory agency mediated through the press and advantageous to the core nations of Europe.

    Fawning towards the apex of their greedy desiring, the press leads us all unto the abyss.

    And what folly is wasted shall be wrought in our very flesh. This new reserve system is the full-throttle thrust of tyranny upon man. From whence does it emanate, Youri?

    Coca-cola?

    hahahahaha

  56. Youri Carma

    @frances snoot

    “From whence does it emanate, Youri?, Coca-cola?”

    DERIVATIVES!

    And Coca Cola is a derivative from water which the Indian adved clip clearly shows LOL

  58. frances snoot

    DERIVATIVES!

    Derivatives or fraud? The real problem was the bailouts. If the banks had gone bankrupt then the derivatives would have minded nicely.

    The G20 has been the problem. They are operating for someone. Who is it, Youri?

  59. frances snoot

    You’re telling me that the depression will be caused because of soda pop?

  60. Youri Carma

    @frances snoot

    No silly ….. We are in a depression.

    But what will cause the next whammy is the fact that all the toxics are still on the On and Off Micky Mouse balance sheets.

    Commercial Real Estate still hasn’t been written off and Real Estate has been artificially hold up by the $1.5 Trill buying up prog from Bernanke. It has to go down at some point, and it will. This will trigger the greater $Quadrillion derivative peg which never can’t be paid back.

    End of Game!

    America and Europe are Toast!

  65. Dedo

    @Youri,….I don’t know why you’re so scared of this NEW World Order,..
    It looks quite sensible to me,….: )

  66. nama rama

    @Dedo:

    Good point bud, Maybe we don’t need/want

    “THE” New World Order,

    but…

    “A” New World Order might suffice!

  67. frances snoot

    @Youri:
    I wouldn’t worry about Germany. Seems they’ve hidden their cmbs somewhere: they’re aging them like fine wine. But then some people do seem to retain advantage whereas others are not quite so lucky.

  68. frances snoot

    $1.5 Trill buying up prog from Bernanke

    That would be the NY Fed. Seems our securitization (you know the Anglo-Saxon kind) has been the engine of our dissipate economy. Why there’s a hole generation in bondage to useless student loan debt. And now that the small business end is being sewn up by Elizabeth Warren’s CFPA (aka new world order stint) we can REALLY get started on that depression Youri insists we have already entered.

    Anybody feel like singing?

  71. frances snoot

    Unfortunately:
    a. The World Bank is not a reputable charity.

    b.Housing developments, slums, or ghettos are places people are slotted when society has no further use for them. Think: Gilligan’s Island meets The Flintstones. sustainable villages=slave colonies (or worse)…can’t you just see vying for Keynesian funding through group exercises?

    Yabba dabba doo!

  72. Giuseppe Bagodonutti

    This story is a little misleading

    Take for example BHP Bhilliton
    Their current tax rate is 43%
    This move, which doesn’t go into effect until 2012, will raise their rate to 57%…

    I think they’ll figure out a way to shuffle profits overseas and saddle the Australian operations with debt, so as to get some manner of future write-offs…
    Like Canadians!!!

    But, we’ll see… :twisted:

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