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Friday, June 25, 2010

BHP (NYSE:BHP): Resist Gillard and Super Tax

BHP (NYSE:BHP) (ASX:BHP) - Continue your resistance!

It took only a few hours for the new Prime Minister of Australia, Julia Gillard, to dampen hopes there might be change in the country, especially concerning the hated super tax on mining companies, which ultimately brought the downfall of Kevin Rudd.

While Gillard made some overtures to the mining companies, she didn't change the narrative, already assuming the tax will be an inevitability, and sounding arrogant in communicating that.

The only concession Gillard made was to open up talks on the super tax. What would have won companies and people over would have been to start off with saying she would eliminate the 40 percent tax on profits.

If BHP and other miners would stick together and just wait this out, while continuing the offensive, Gillard and her ilk will be chased out of town, and business and people-friendly people voted in.

what is needed in Australian government and other governments around the world are lawmakers who'll shrink spending and make government smaller and efficient.

The reason for the outrageous super tax is because Rudd, and now Gillard, refuse to make the types of cuts in government spending which would eliminate the need for siphoning off productive money and waste it on unproductive government programs.

The political and popular winds are blowing this way, and even the idea of sitting down with Gillard by the mining companies blows your mind when you see they've already won the battle.

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