#3 Harming the Australian economy 101

This graphic of relative currency changes in the four weeks from 26th April to 25 May 2010 – shows with crystal clarity how the Australian dollar has fallen further against the US Dollar than currencies from a range of comparable economies.
Weak Aussie dollar post big new tax proposal
All data from Oanda.com
It is obvious that the reason for this greater Australian weakness is the Governments new Rudd-Swan-Henry so called Super profits tax on our resource sector, announced on 3rd May. The Aussie has fallen twice as far as the other currencies in the last three weeks. So keep these facts in mind when you hear Government lies promoting how great their new tax is. The other currencies are Canadian, New Zealand, South Africa, Indonesia.

4 comments to #3 Harming the Australian economy 101

  • Louis Hissink

    Warwick,

    To make matters worse, Ross Garnault is supporting Henry’s idea that EL’s should be granted by a competitive tendering process.

    One way of gaining control of a company is to inflate the currency to engineer a boom, create bust, (you know when to move out of the market), then buy in the companies that have gone belly up.

    I wonder whether Rudd et al are bankrupting OZ, creating an enormous debt, attacking the miners for their “super profits”, (the punters seem to agree with this policy), and then take them over in a clayton’s fashion by grabbing a larger share of the profits.

    What irritates me is the few if any of the economic commentators, let alone the industry, are focussing on the plight of the individual shareholders whose dividends become reduced as a result of a super profits tax.

    I also understand from acquainances that Ken Henry whilst an undergraduate at Melbourne was a communist. I wonder if he has changed into a water melon.

  • Louis Hissink

    I should have added, grab the miners profits into order to pay the debt they created in the first place. Cunning way of reallocating resources and wealth.

  • WSH

    Please keep spreading the message Louis.

  • Romanoz

    An American Investor on Bloomberg called the Super Profits Tax “idiotic”, compared Rudd to Chavez and said that the Government had NATIONALISED the miners. Bit over the top?
    The ABCs Economics Correspondent appears to agree - about NATIONALISING that is.

    it’s not actually a tax. What Ken Henry is proposing is essentially a joint venture between the government on behalf of the Australian people who own the resources and mining companies, where the government in effect takes a 40 per cent stake in any new mining…
    So, Twiggy Forrest is right in a sense: it’s a part nationalisation.

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