Simple, and probably much much better than any nitwit politician is going to come up with.

However, the question of the resource rent tax has been criticised by Sayce and others mostly on grounds that it is somehow unconstitutional, that it is theft, that it is nationalisation and this sort of garbage. Because of this, I took issue with the arguments, seeking to show that the reasons and premises marshalled do not support the desired conclusion, and that, if the government needed to increase the tax take, then putting the burden on companies that can afford to pay its employees two – three times the average wage, would be a better way to do it than raising the money from sections of the economy that have been under the hammer through the GFC and are teetering on the edge even as it is.

I still cannot see anything wrong with this argument, but I have to emphasise that it is a conditional argument, and not a defence of what Rudd is proposing to do. What I think he would be better off doing is ther three primary cuts I have listed above.

…Greece?

Greece, dear reader.

If you believe that one, then please — stop reading. I can’t say anything you’ll find helpful.

But if you remain tuned to this station, I will observe that the nonsense began instantly. At exactly 2:45 PM The New York Times put up a headline which claimed “Stocks Plunge on Concerns Over Greece.” The story itself reported absolutely nothing NEW about Greece, for the simple reason that there IS nothing new. Everyone who cares already knew the relevant facts about that country’s financial crisis. It’s been in the news for weeks and months.

So the story did NOT become “worse” today, or more “threatening” today. This was not the day Greece became “the first of several dominoes in Europe that could fall.”

Then there’s the U.S. dollar rally this week — is “Greece” the reason? Or, is this week part of a rally that’s been underway all year, contrary to the conventional wisdom but in agreement with EWI’s forecast?

Crude oil futures fell 3.6% today. The CRB Commodity Index is down nearly 6% on the week. “Greece” again? Or, part of “The Great Credit Contraction” spelled out in the May issue of The Elliott Wave Financial Forecast?

Neither the word “Greece” nor the phrase “Greek financial crisis” appear in Bob Prechter’s latest Elliott Wave Theorist. But, you may recall that issue’s headline, which I quoted in a recent email message I sent you: “A Deadly Bearish Big Picture.”

Here’s what else my email said:

If you’ve read any of Prechter’s books or heard him in an interview, you know that overstatement is not his style. When he says the “Big Picture” is “Deadly Bearish,” that is exactly what he means.

The past week has brought that “Big Picture” a lot closer. The issue at hand is what YOU need to do as an investor. Market tops are a process — in recent months, you’ve probably found the top of this bear market rally frustrating indeed.

Yet the brief version of the story is simple: The frustration is over. It’s time to get in front of where the trend will go from here.

Our charts, analysis and forecasts are a few clicks away. Follow this link to begin.

Regards,

Robert Folsom
Robert Folsom
Elliott Wave International

As for the super tax I still think there is something fishy and its not just revenue based.

KRUDD gained his political education in China as ambassador didn’t he??? If so, its easy enough to make some comparisons

1. The super tax is being used to cool down the resources sector or slowdown the flow of hot money
2. The BER, insulation, NBN etc… is a massive misallocation of resources – China has mastered that!!!
3. Comrade Conroy demanding internet sites be blocked – the great firewall of Australia
4. Bigger government and legislation giving them more power – just look at the extra power the police have now

GB..looking good heh!! But hey don’t be surprised if it comes back a bit. Remember…two steps forward, one step back. As you move down the track look back and then see how far you’ve come.