Resource Rents in the Eye of the Storm

Karl FitzgeraldCommentaryLeave a Comment

Comes the Storm
Creative Commons License photo credit: versageek

The might of the Australian mining industry is throwing everything it can at mainstream Australia at present.

Can Joe 6 pack comprehend the difference between industry that is man-made ie car manufacturing, versus the mining industry, who are ripping up our valuable earth as if they scientifically produced the iron ore?

Apparently, the Rudd Government is largely doing what the mining industry asked for in their submission. Thanks to the ever accurate Peter Martin, we read that the difference between now and the collapsing 2008 economic environment (when the Henry submissions were sent) is that ‘decades of profits to come’ are now expected.

Mining magnates have flipped their view now that they realise how much they will be contributing back to the commonwealth.

Miners had supported the Resource Rent Tax because it included the ability to write off losses.

The ramifications of the earth’s privatisation are rearing their head where ever we look at the moment:

  • Greece has run out of money due to a poor taxation system. The bursting of their property bubble has made their pensioners even angrier at having the retirement age raised from 53 to 67.
  • Goldman Sachs is facing a raft of fraud cases and is now attempting an out of court settlement. The risky nature of the US property bubble saw the use of dodgy derivatives to offset this risk.
  • Aus-Aid has announced a $53m ‘aid’ package to map and value the Pacific’s resources. We know this is code for ‘so we can sell it off to our mates in high places’. Tragically none of this money is being spent in Vanuatu to train local ni-vans on how to value the land (we are not sure about the rest of the Pacific). A hand-out ‘beg-for-aid’ mentality is ensured.
  • Indonesia has opened up its property market to foreign investors.
  • East Timor desperately needs land reform to move on from the post Indonesian rule and disputes over land title.
  • China’s property bubble is on the precipice. Check how land speculators are dodging China’s credit restrictions.

Have a listen to our Renegade Economists podcast. The bottom line is that more people need to understand geonomics, an earth based economic system.

You can do this by joining Alanna Hartzok’s Earth Rights course. It takes about 4 hours to arm yourself with knowledge to read between the lines to decipher what the big boys are really up to. Click on the Earth Rights Pacific class to join so we can discuss local issues.

The earth has been sold off and the message in this course is that we can reclaim it, not by force but by redirecting the invisible hand to value and share the earth’s resources on all our behalf, not just for neo-colonising land speculators.

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