the australian dutch disease, page-22

"Prices had to fall and our government policy could not have been more poorly chosen or timed - totally incompetent."



Best time to start a profits based resource tax would have been back in the Howard years when the prices skyrocketed and massive windfall gains were made. This caused higher interest rates for all and higher AUD for all.

The next best time imo would be just before the massive increase in volumes starts to kick in. That's about to start now.

Also, can't see how marginal projects "moving" to Africa will create Dutch disease as it's the high AUD and interest rates that cause the hollowing out of the economy in the first place. If anything it will lessen the effect of dutch disease. Probably keenly awaited by many in the trade exposed sectors.