Bless the government it is not only lowering the price of all Australian miners so the overseas hedge funds can protect their cash resources during a period of high inflation by buying Australian mining shares at a discount, he is also including a get out of Gaol card so in a few years those stocks can be put back on the market at a huge profit.
The get out of Gaol card is the including of the Australian taxpayers in the risk taking part of mining.
These overseas companies are going to rape the system sending company after company broke so that the government has to pick up 40% of the losses.
The government is then going to say, surprise, surprise, "We made a mistake" and repeal the tax.
Now here comes the good bit, the miners that went broke will be sold off (to their mates) and restarted. In the restarted situation they will have almost a bran new plant and this time they mine the real ore not the .001% copper that they mined to send themselves broke.
How much in bribes will this cost the hedge funds say between 100 and 200 million spread over possibly a handful of people.
Whitlam tried this (the Karmanli affair) and that is the reason he was thrown out of office. Read up on the Sanco (possibly spelt wrong) case. Frazer was the man who refused to deliver the papers to the court from the Commonwealth government (claiming privilege) and as such he saved those labour people from facing trial and possibly gaol. O how the faithful forget.
FMG Price at posting:
$3.78 Sentiment: None Disclosure: Held
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