Profiteers reject law of supply and demand
Posted by Dave Bath on 2010-06-12
Some of the statements of the ore profiteers are worth considering. One in particular, from this week’s Four Corners is telling accurate, and destroys the notion that any delay in mining projects is bad for the country.
The ore profiteers want us to forget the fundamental rule of pricing – the law of supply and demand.
The ore profiteers are bleating not for the nation’s long term future, but for their ability to stuff their own individual pockets in the short term.
The statement boiled down to "those minerals will only get more valuable as time passes, other countries, particularly China, running out of exploitable deposits.".
The rate of return, therefore, for leaving those minerals in the ground until raw materials increase in value, far exceeds the long-term bond market, and is certainly better than money in the bank.
Consider how exploitative many think OPEC was during the oil crisis when cutting production to raise prices. Australia, as a nation, assuming we aren’t smart enough to take on the Scandinavian and German models of value-adding through quality and innovation despite a lack of primary resources, has it’s future well-served by keeping those minerals for a rainy day a decade or so down the track, especially as we can expect climate change to wreak havoc on agricultural production.
This is one thing where KRudd and company have been pushing correctly, and leading other nations.
If our federal government loses it’s fight with the ore profiteers, other governments will lose heart, and the profiteers will be encouraged to push for even greater slices (the word "share" is totally inappropriate) of what can only be considered the common inheritance of all humanity – planetary primary resources.
Perhaps the KRudd team would do well to delay the election as long as possible, allow the ore profiteers to spend big on a long, expensive, and tiresome advertising campaign, allow them to dictate the focus of the Liberal Party for even longer.
The longer the blitz, the more likely the general citizenry will be to wake up to the lies of the profiteers and their lackeys, if only because the propaganda will be as off-putting as the loud spruiker character from "The Chaser" – their "THESE OPPORTUNITIES ARE NEVER TO BE REPEATED!" eventually falling on deafened ears, those "opportunities" seen as only for the profiteers not the population.
The longer the blitz, the more likely current voters are to see the Liberal Party as the lackeys of profiteers, the more likely this will be remembered for longer, the more likely other bleatings of the sock-puppets of magnates will be ignored, the more likely we have a chance good policy might become at least a slightly significant driver of the political agenda.
So, let the magnates and profiteers stick their necks out – all the easier it will be to cut their heads off.
If we are reliant on exporting dirt, leaving ourselves (or more correctly, our children) with nothing but holes in the ground, then the more delays in exporting that dirt, the more value we can extract from the rest of the world, the better off we are.
If the Australian population gets a better share of the mineral wealth, and at the same time increases the value of that stockpile as demand increases, we, and our children, win big time.
Of course, if the Australian voters aren’t smart enough to figure it all out, then we are too dumb to do anything else right, and the quicker we deserve to be relegated to the poor white trash of Asia.
Well – that’ll keep the racists happy – no more non-whites will want to come here, and those that are here will leave as fast as they can.