You'll be Hurt too!, page-37

Matt

Look on the bright side.

Lower oil price means lower operating costs for BHP and RIO.

Lower IO and met coal prices also means lower cost of machinery, such as dump trucks and mills for BHP and RIO.

Lower IO and coal prices means that workers get laid off and those remaining will get lower wages. Again a positive to BHP and RIO.

Lots of positives there to think about.

Of course tax revenue and royalty payments will be down. But the Oz govnuts were stupid enough to believe the revenue boom would last forever despite history showing that it is temporary, just like the previous boom of the 1970s/early80s.

Our only booming sector is real estate which is based on selling our houses/units to Asians. We are also pretty good in selling our long life infrastructure (eg ports, roads, electricity plants and powerlines) to Asian and other overseas interests.

We had to go this way so that Keating/Howard/Rudd/Abbott could strut the world as leaders worshiping the fake globalisation god while the smarties like China used currency manipulation to support economic expansion.

Anyway, I think I may have to lower my entry price for BHP to $25. I doubt BHP will be able to maintain its current dividend in the face of falling commodity prices.

The next boom will start when Indian urbanisation takes off, perhaps in only 5-6 years time.

loki