AUD rise aka "Won't somebody please think of the miners!"

[weemadando]

The AUD is at record highs and is threatening to bust the 1 USD barrier.

But the only thing that anyone is fucking talking about is how this is yet another big blow to the mining industry.

That is fucking cheesing me right off.

Maybe if Australia could stop taking it up the date from the mining industry for a little while and look around we might realise that this isn't a ZOMG! END OF THE WORLD! scenario to have parity with the USD.

After all. We are still way behind the Euro and Pound.

[B5B7]

Actually we are above the Euro and Pound. This is because parity with the pound is $1 = 0.50 pound. When Australia converted to decimal it was based on $1 = 10 shillings, but when the British decimalised it was based on 1 new pound = 1 old pound = 20 shillings.
Currently $1 = 0.62 pound.

[weemadando]

Sure, but in terms of real value, not the denoted value at time of listing, the Euro and Pound are still kicking us in the balls.

[aerius]

The AUD is at record highs and is threatening to bust the 1 USD barrier.

But the only thing that anyone is fucking talking about is how this is yet another big blow to the mining industry.

People are stupid. Is the rest of the world still buying up everything you can mine? Yes. Then what the fuck is the problem? Seriously. As far as I know there isn't a giant glut of resources and they aren't cutting shifts and shutting in mines or anything like that.

As long as you're selling everything you can dig out of the ground you want a high dollar so you can buy more shit with the mining income. A couple years ago Canada was laughing all the way to the bank when oil was trading at $100+ a barrel and the CAD was above parity with the USD.

[B5B7]

You [Weemadando] could be right; I don't know as not as expert with economics and finance as many people on this board.
European economy is of course much bigger, and more evenly developed than our own [lots of manufacturing and service industries].

Our economy is over-reliant on its mining exports, of which the benefits don't flow on much to everyone else [which is why we need a bigger mining tax], and indeed here in W.A. simply seems to push up prices of other things, but that's slightly off-topic.

[weemadando]

You could be right; I don't know as not as expert with economics and finance as many people on this board.
European economy is of course much bigger, and more evenly developed than our own [lots of manufacturing and service industries].

Our economy is over-reliant on its mining exports, of which the benefits don't flow on much to everyone else [which is why we need a bigger mining tax], and indeed here in W.A. simply seems to push up prices of other things, but that's slightly off-topic.

I don't even know why the miners would be complaining that much. About their only expense in AUD is payroll as their equipment is purchased overseas, shipping and refining is all offshore and in terms of profits - they tend to hide everything possible in tax havens.

[Stofsk]

I am so fucking sick of the mining industry.

[loomer]

Yeah, it seems to me that since we're letting foreign companies exploit our soil for its resources, we could at least charge them a reasonable bloody tax (like we were going to. Ugh.) and get something out of it for the entire nation - everyone knows what happens when you build an economy around a natural resource and you run out, afterall.

[Stark]

Wait wait wait. Primary industries whinging and using scare tactics to influence politics?

I seriously don't remember a time when this wasn't the case. The mining guys and the OMG MINING INDRUSTRY DOOMED during a peroid of strong growth (where none of the mining conglomerates we work with are even considering reducing new projects) are just baldfaced lying and politicians are stupid, news at 11.

[bobalot]

What isn't pointed out is that the high dollar (mining being a major cause of) cripples tourism, manufacturing and agriculture in Australia. Mining may bring in a lot of money but it kills a lot of other exports and destroys diversity in the Australian economy.

We should tax the miners at a rate of 50% like we did in the early 90's.

[Chaotic Neutral]

We should tax the miners at a rate of 50% like we did in the early 90's.

Why the hell did you stop? It's not as if high taxes are discouraging them from looking for more mines. And low taxes certainly aren't going to put more ores in the ground.

[Twoyboy]

You could be right; I don't know as not as expert with economics and finance as many people on this board.
European economy is of course much bigger, and more evenly developed than our own [lots of manufacturing and service industries].

Our economy is over-reliant on its mining exports, of which the benefits don't flow on much to everyone else [which is why we need a bigger mining tax], and indeed here in W.A. simply seems to push up prices of other things, but that's slightly off-topic.

I don't even know why the miners would be complaining that much. About their only expense in AUD is payroll as their equipment is purchased overseas, shipping and refining is all offshore and in terms of profits - they tend to hide everything possible in tax havens.

Profits for a lot of the companies are reported in A$ but sales are contracted in US$.

And shareholders aren't smart enough to understand exchange rates...

[Phantasee]

Sounds like you guys are experiencing something a little like Dutch Disease. We've had similar issues here in Alberta.

[bobalot]

We should tax the miners at a rate of 50% like we did in the early 90's.

Why the hell did you stop? It's not as if high taxes are discouraging them from looking for more mines. And low taxes certainly aren't going to put more ores in the ground.

Because people some people bought the Ronald Reagan trickle down bullshit. The idea is that if we let foreign own mining companies keep most of the profits, it will trickle down and benefit Australia. This of course is bullshit because most of the profits simply just go overseas.