Thursday, June 24, 2010

Australian Miners Helped by New Prime Minister? No!

The novelty of have Julia Gillard be appointed as the new prime minister is only that: a novelty; at least as far as how it affects mining companies.

Gillard has already committed to pursuing the outrageous policies of Kevin Rudd, who introduced the highly controversial and unwanted super tax on mining companies. There is no change there.

As a matter of fact, some of these mining company leaders are acting like foolish schoolboys, embracing the "conciliatory" tone of Gillard.

Who cares about how nice she says something. What are the miners going to do. Give her anything by batting her political and real eyelashes at them?

It sound similar to Obama in America, who enjoyed the novelty of being voted in as the first black American president, but was given far too much leeway in implementing policies the vast majority of Americans opposed.

Hopefully Australians and mining companies, who largely rejected Rudd, will quickly get the stars out of their eyes and realize Gillard may be even more unyielding in her demands.

Almost falling all over themselves, BHP Billiton (NYSE:BHP) said through a spokesman, "We look forward to working with the government in this new way to find a solution that is in the national interest."

They even suspended an anti-tax advertising campaign because Gillard sounded conciliatory.

Who cares what she sounds like. Her policies are as poisonous as Rudds, and she backs them up just as strongly.

Just because she talks nice doesn't change a thing. Miners and Australians beware! Nothing has changed, and it's just got more dangerous.

Realize it's the opposition that resulted in Rudd's removal, not anything Gillard has to offer. Keep the opposition up and don't cave until she capitulates.

Otherwise you'll end up like Americans who have to unravel all the mess Obama has created in a short 18 months in office.

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