The Australian Resource “Super Tax”
Yesterday’s proposed 40% Tax on resource companies in Australia, that is supposed to pay for everything from diapers for old people to mass transit that nobody uses, crushed stocks like BHP Billion. This is an election year in Australia and the Socialists are trying to buy votes, but the mining companies and its political allies have already forced concessions on the proposal.
A Euro Panic
1.30 is major support on the Euro and there is a rumor that the Bank of International Settlements (The BIS) intervened to avoid a crash in The Euro today. The BIS is the Central Bank for Central Banks.
A few weeks ago I mentioned that the Swiss Government intervened (Blue Arrows) to weaken the Swiss Franc (FXF). It has collapsed since the intervention. The Swiss Franc now targets a complete retracement of its 2008 – 2009 rally.
I am assuming that the BIS intervention will act to stabilize the Euro, at least for the short term. Maybe that will help to stabilize Commodities and The Euro, and weaken the US Dollar and US Treasuries.
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