Dole Job Applications - A Joke, 13748004, page-48 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by moorookamick ↑

Hi coalboy,
While I can readily appreciate your automotive analogy to the economy, unfortunately tweaking the economy as you suggest would likely cause more problems that it would solve.
For example:
(1) "Drop interest rates immediately even further"
Interest rates are the RBA's sole responsibility whose charter is to control inflation and price stability.
At present our inflation rate is 4% which is very close to RBA intervention and, if it does intervene,
it will be to increase interest rates and not reduce them. Prolonged lower interest rates lead to house
price bubbles which, when reversed can have a negative effect on your:
"the mortgage belt with 2 kids and a dog..." because houses being bought now at low interest rates
and low mortgage rates will simply be not affordable when mortgage rates normalise at about 8%
(2) "which will devalue the dollar 10-15%
If our dollar devalues by this amount we will have rampant inflation.
We import more than we export and as a result import goods will be more expensive including petrol & diesel.
We now owe $650 Billion ( $350 billion Commonwealth debt and $300 billion of State and Municipal debt
mostly denominated in foreign currency)
and a further 15% would add $97.5 billion to our already mountain of debt.
On the other hand miners who export who would benefit from this South Pacific Paso have financed
this Government with a policy of removing the MRRT which would have benefitted us all.
Furthermore, if as you say that the Government is only collection peanuts from this tax then why abolish
it? Wouldn't it be better to leave it there in case iron ore and coal priced went back up to the 2011 highs.

The truth of the matter is that the former Government gave the Miners a temporary get out of jail card in allowing then
to accelerate capital depreciation and capital investment costs so that, as you say, there is only a pittance to be paid in MRRT tax this year.

Also bear in mind that most of the resource companies are over 70% foreign owned with that share of their
profits going overseas annually WHICH neccessiteted our Big 4 Banks going overseas last year to borrow $125
billion to supply your proverbial 'mortgage belt with 2 kids and a dog " family to a mortgage, car finance,
furniture finance, and credit to juggle 3 or 4 credit cards. We are living away above our means and your
coal miner or iron ore is doing little to remedy this. All they do is call their hip pocket like Ms Reinhart yesterday
who was whinging like a Pom about high mining costs and high wages. What about her $22.5 billion nestegg !

These miners who have the mission statements of "Make as much money as we can" couldn't give a hoot about you or your job let alone your social benefits when you are sick or unemployed and it simply makes me sick to hear
PAYE workers spruik the interests of Multinational Miners.

The bottom line is that when in full flight the MRRT would have collected about $5.5 Billion a year and with
about 11 million workers in Aus, the removal of this tax will mean that you as a worker will pay an extra
$500 tax a year. At present the ATO's tax collection is two thirds Individual tax and one third Company tax.
In a resource rich country like Aus the retie should be the other way around.

The $5.5 billion MRRT which is being removed by Abbott & Co will simply mean:
$3.85 billion a year leaving the country
and about a $half a Billion less income each for Ms Reinhart and twiggy Forrest.
(Dont mention Clive Palmer)

So in summary, cowboy, it is fine and dandy to fiddle with the carbie, but we need to see the whole
kit and caboodle before we screw down the wick and that why we have an independent RBA,
God bless them !
moorookamick

Expand

MM,
"most of the resource companies are over 70% foreign owned with that share of their
profits going overseas annually WHICH neccessiteted our Big 4 Banks going overseas last year to borrow $125 billion"
One of my earlier posts mentioned the necessity to plug the leaky bucket first.
Bringing back the requirement for a significant deposit before being considered for loans would need to occur before dropping interest rates to reduce the bubble effect.
We have to import more than we export because what few manufacturing industries that we did have or are being been shut down, even after being propped up by the taxpayers for years.
While talking about living beyond our means and credit cards , MM failed to mention the last 7-8 years of disfunctional government that booked everything up on the credit card (in the amounts that you mentioned) before getting the cash in hand , which didn't eventuate.
The first 3 rules of business : cashflow , cashflow, cashflow.
From memory everything was in credit before that..............but that's a different story.
This is all now getting right off topic.........and is a sad but true story........so farewell.