Twiggy sticks a great big log up Rudd

[GuruJane]

http://www.theaustralian.com.au/bus...review-super-tax/story-e6frg9dx-1225868605991

Fortescue Metals puts $17.5bn projects on hold to review super tax

Fortescue Metals Group has put two of its three expansion projects on hold to review the Rudd government's proposed resource super-profits tax.

IRON ore miner Fortescue Metals Group said today it has put two of its three expansion projects on hold as it reviews the potential impact of the Rudd government's planned Resource Super Profits Tax.

The mining industry has reacted with alarm to the government's proposal to impose a tax of 40 per cent when mining projects are making returns above 6 per cent and Fortescue's move looks designed to increase pressure on the government to amend the tax or face the prospect of job losses.

The Perth-based miner has put its $US9 billion ($10.5bn) Solomon hub and $US6bn ($7bn) Western hub projects, which it said were together set to employ as many as 30,000 people in construction and operation, on hold to examine the financial impact of the proposed tax.

"The uncertainty in the financial markets caused by the proposed tax and the cash impost that RSPT payments will place on future business revenues has necessitated an urgent review of the economics surrounding the development of Fortescue's major projects," the miner said.

Announcement just in time for Question Time.

What's Kev's next move? Nationalising the banks?

 

[Doctor Jolly]

Nothing like big companies holding the government to ransom.

If we had a PM with balls, the government has a lot more in its favour if we are playing titt for tatt.

Interesting next move.

 

[morgoth]

Nothing like big companies holding the government to ransom.

If we had a PM with balls, the government has a lot more in its favour if we are playing titt for tatt.

Interesting next move.

Yeah there is, they are called unions.

Quite funny watching the media at the moment. Trying to say the $AUD is down on "Euro fears". Foreign capital is selling up and leaving our shores, its that simple. If the media bothered to go interview some broking houses insto desks they would find out foreign investment houses are selling up.

This has not just affected the mining sector, our whole market is being sold on the back of 'soverign risk'.

 

[Bodicifer]

Yeah there is, they are called unions.

Quite funny watching the media at the moment. Trying to say the $AUD is down on "Euro fears". Foreign capital is selling up and leaving our shores, its that simple. If the media bothered to go interview some broking houses insto desks they would find out foreign investment houses are selling up.

This has not just affected the mining sector, our whole market is being sold on the back of 'soverign risk'.

The bond market perhaps doesn't reflect the sovereign risk as much as people think from the credit sense however, it is very clear that we now have political risk in Australia, something we haven't had for years, and it is seen by the world as a potential derailer. Well done Capatain Kevin you imbercile

Youre a spot on about the insto's morgoth...

 

[GuruJane]

Yeah there is, they are called unions.

Yeah, Dr J. The last time I heard this rhetoric from Labor was in the 1960s when we were out of government and then, famously, in the Whitlam years.

It is complete lunacy, as though the whole labor movement has a death wish.

Quite funny watching the media at the moment. Trying to say the $AUD is down on "Euro fears". Foreign capital is selling up and leaving our shores, its that simple. If the media bothered to go interview some broking houses insto desks they would find out foreign investment houses are selling up.

This has not just affected the mining sector, our whole market is being sold on the back of 'soverign risk'.

Beginning to think that I was the only one noticing that the AUD has been crashing since Super Tax Day.

Stand by for some excerpts from (one time Kev poster boy) Twiggy's press conference this arvo. That log he's sticking up Kev ain't hollow, either.

 

[pacemaker]

Take that Rudd PM

 

[Clay Davis]

Yeah there is, they are called unions.

Quite funny watching the media at the moment. Trying to say the $AUD is down on "Euro fears". Foreign capital is selling up and leaving our shores, its that simple. If the media bothered to go interview some broking houses insto desks they would find out foreign investment houses are selling up.

This has not just affected the mining sector, our whole market is being sold on the back of 'soverign risk'.

You're a drama queen. As accurate as your depression prediction.

 

[morgoth]

You're a drama queen. As accurate as your depression prediction.

So basically you can't refute anything I have said.

 

[Clay Davis]

So basically you can't refute anything I have said.

So the AUD is the only currency dropping against the USD?

If the mining companies are pulling out of Australia, then why have metals prices (nickel, copper, lead, zinc) fallen over the past month and a half? Surely if the cost of extraction in one of the world's biggest producer of these commodities has gone up, then the price of these commodities should as well?

 

[morgoth]

So the AUD is the only currency dropping against the USD?

If the mining companies are pulling out of Australia, then why have metals prices (nickel, copper, lead, zinc) fallen over the past month and a half? Surely if the cost of extraction in one of the world's biggest producer of these commodities has gone up, then the price of these commodities should as well?

You get abusive when you don't understand. Foreign investors are selling their holdings of Australian shares (not just mining shares, all shares) because they do not want their capital/returns put at risk of further govt tax grabs. It is called soverign/politcal risk and if you don't believe it is happening you are living in la la land.

I doubt you know any insto brokers but if by some fluke you do, go ask them.

 

[Clay Davis]

You get abusive when you don't understand. Foreign investors are selling their holdings of Australian shares (not just mining shares, all shares) because they do not want their capital/returns put at risk of further govt tax grabs. It is called soverign/politcal risk and if you don't believe it is happening you are living in la la land.

I doubt you know any insto brokers but if by some fluke you do, go ask them.

Do you really think insto investors are irrational as you?

What sovereign risk?

You have gone beyond all reason. The Chinese market has fallen 20% in the past month. Is that because of Rudd's great big new tax?

You crackpot.

 

[Bodicifer]

Do you really think insto investors are irrational as you?

What sovereign risk?

You have gone beyond all reason. The Chinese market has fallen 20% in the past month. Is that because of Rudd's great big new tax?

You crackpot.

Hardly irrational...I'm in the game and this shit is real. This is happening.

20% down, Hang Seng

 

[Clay Davis]

Hardly irrational...I'm in the game and this shit is real. This is happening.

20% down, Hang Seng

Shanghai. That's what I would have thought most people would refer to when talking about China, and I'm not even in 'the game'.

 

[Doctor Jolly]

As someone who is "in the game", I can assure all our readers than Morgoths pathetic attempt to elevate the impact of a new Australian tax, above the devaluation of the worlds 2nd biggest currency is wrong.

Morgoth's predictions of doom have been proven incorrect over and over again. He's bigfooty's resident eno. I dont get why people listen to him.

 

[medusala]

If the mining companies are pulling out of Australia, then why have metals prices (nickel, copper, lead, zinc) fallen over the past month and a half? Surely if the cost of extraction in one of the world's biggest producer of these commodities has gone up, then the price of these commodities should as well?

Bear market in China, Europe falling in to hole.

 

[Papa G]

You get abusive when you don't understand. Foreign investors are selling their holdings of Australian shares (not just mining shares, all shares) because they do not want their capital/returns put at risk of further govt tax grabs. It is called soverign/politcal risk and if you don't believe it is happening you are living in la la land.

I doubt you know any insto brokers but if by some fluke you do, go ask them.

I have spoken with 2 seperate brokers today and they both have told me that foreign investors, the Yanks in particular are pulling out of Australia for this particular reason.

 

[Clay Davis]

Bear market in China, Europe falling in to hole.

And surely this would have an effect on the AUD?

 

[Bodicifer]

Shanghai. That's what I would have thought most people would refer to when talking about China, and I'm not even in 'the game'.

I was asking you wtf you were talking about given that the SSE wasn't down 20% for the month

 

[Bodicifer]

And surely this would have an effect on the AUD?

There's money flowing out for two main reasons...the first is that offshore investors don't want to sit on Aussie stock because of the ******ed government we have adding political risk and the second is the fact that the government seems to have done a good job in f'ing things up so that an interest rate rise is less likely here and more likely in the US.

 

[Grin]

There's money flowing out for two main reasons...the first is that offshore investors don't want to sit on Aussie stock because of the ******ed government we have adding political risk and the second is the fact that the government seems to have done a good job in f'ing things up so that an interest rate rise is less likely here and more likely in the US.

So what you're saying is that the economy hasn't been stimulated enough and thus interest rates aren't high enough.

I'm interested in why increasing business tax by 2% and decreasing compulsory super by a third to subsidise mining profits, thus pushing up the dollar and destroying industry that isn't mining, so that when the resources boom is over our economy resembles scorched earth, is good for the economy?

 

[Clay Davis]

I was asking you clay pigeon wtf you were talking about given that the SSE wasn't down 20% for the month

Are you serious? I hope you're not serious.

I didn't say for the month. I said in the past month. Down from a high of 3166 on April 14 to 2559 today.

Now, a question for you grade A morons. Why would non-resource companies fear this being a high taxing government when they're cutting the company tax rate? Where is this tax grab coming from in the non-resource sector?

Chicken little idiots.

 

[evo]

Now, a question for you grade A morons. Why would non-resource companies fear this being a high taxing government when they're cutting the company tax rate? Where is this tax grab coming from in the non-resource sector?

Clay, a lot of the large instos are fairly indinscriminate. If they decide to lighten their exposure to Australia, for whatever reason on a particular day, or over a number of days, they sell the entire basket of stocks; not just BHP/ Rio. Its all index weighted.

 

[medusala]

I'm interested in why increasing business tax by 2% and decreasing compulsory super by a third to subsidise mining profits, thus pushing up the dollar and destroying industry that isn't mining, so that when the resources boom is over our economy resembles scorched earth, is good for the economy?

No you really aren't.

You will just cheerlead regardless of facts and the economic reality.

You started off badly with subsidise then completely lost it from there.

 

[Grin]

Are you serious? I hope you're not serious.

I didn't say for the month. I said in the past month. Down from a high of 3166 on April 14 to 2559 today.

Now, a question for you grade A morons. Why would non-resource companies fear this being a high taxing government when they're cutting the company tax rate? Where is this tax grab coming from in the non-resource sector?

Chicken little idiots.

Harsh, but fair.

What they're arguing is, that tax cuts for businesses doesn't result in employment or investment, but tax rises for the mining sector results in job losses and divestment.

In their desperation to mindlessly regurgitate Liberal party propaganda (dictated by mining multinationals), they find themselves arguing an oxymoron, with the emphasis on moron.

 

[Grin]

No you really aren't.

You will just cheerlead regardless of facts and the economic reality.

You started off badly with subsidise then completely lost it from there.

Yup.

Knew you couldn't answer that one.

I take your comment as an admission that decreased tax for Australian business is a good thing and thus you now support the tax on mining super profits in order to assist the non mining sector with reduced tax, improved infrastructure and increased national savings and investment.

It's not rocket science.
It's common sense really

Still, very big of you to have changed your position on this.