BHP,RIO,XSTRATA will all be announcing record profits over the next few weeks as the mining boom rolls on.The dollar continues to remain historically high on the back of record commodity prices while the manufacturing sector gets shredded and jobs get exported overseas.
The reality is the mining, financial,public and health sectors will only take us so far,we still need to produce and manufacture goods and the ability to manufacture cannot be turned like a tap.It takes years of investment and decades of experience.The likes of the UK and US let their wealth of manufacturing experience disappear in the 80's to be replaced by services and tourism,Fast forward 20 years and they now have a limited ability to maintain their standards of living and pay their debts.The economies with the growth prospects China/India south east asia as well as Germany in the eurozone have one thing in common,a strong manufacturing sector.
Could it be that they actually produce something tangable to sell????
Shouldn't we be starting to ask whether the benefits of the mining sector,the mineral wealth of every Australian be shared through a much more substancial mining tax/sovereign wealth fund to help smooth some of the imbalances in our economy.
Whilst most of our mineral wealth disappears overseas shouldn't we wonder whether Marius Kloppers,Tom Albenese and co are as hard done by as they would have us believe.
These companies managed to dictate terms to OUR federal government...OUR elected leaders which is uncomfortably similar to way the Wall St Bankers dictated terms to the US Government..
Is there anyone prepared to govern for the greater good anymore rather than the political cycle?
Beware Australia many a visitor from the U.S comment on how we remind them of America 20years ago.
