Sovereign risk The risk that a government will either default on its obligations or will impose regulations restricting the ability of issuers in that country to meet their obligations, such as foreign currency restrictions.
Apparently Mr.Black Swan and Mr. Blue Pupil Rudd can argue that the RSPT does not constitute sovereign risk according to that definition as they don't understand the obligation of a public company is to maximize shareholder wealth through profit maximization.
The risk that Mr.Albanese was talking about is the one that the government comes and confiscates private businesses. That's what's happening in Australia.
The miners are depleting resources owned by all Australians? Oh really, so they did not pay for the exploration permits?
So the government, representing the people of Australia (really?), would use the money for the common good?
The banks are funded by our savings, so why can't savers get a fair share of their profit? We want it to be fair, don't we?
The prosperity of the last decade was brought by Aussie miners. We don't have much manufacturing, our agriculture is damaged by bad weather, mining is the only bright spot in the real economy.
Without going into the threats looming in the commodity cycle, Labor is strangling Australian economy with their incompetency.
Tony Abbott doesn't appear to be much of a leader to me but at least I think he has more common sense than the harbingers of doom.
