GLASS PYRAMID ‘EXCLUSIVE’ SEALED SECTION CONTENT
Note: An earlier version of this edition referred to “cretins”. That was unkind to the cretin community. References have been replaced with “snake oil merchants”. Apologies in advance to law abiding and legitimate merchants dealing in that fluid.
Now that the end of the mining boom is rapidly moving to the realm of undeniable fact it is important that the snake oil merchants who promoted the idea of a mining boom that would last for decades are held responsible.
We are talking about those who said that a balanced economy should be thrown overboard to accommodate a land of ‘sweeping mine holes’. Those who said that Australia’s fate was to be a destination for off-shore predatory capital – like some colony who never grew up. Those who said manufacturing was for the birds and we should just leave that to our “currency warrior” capital exporting trading partners.
Care must be taken not to fall for the line / nonsense, that the snake oil merchants are already preparing, and that is to blame the victims who swallowed the BS hook line and sinker. Who are the victims? All those individuals and small and medium sized businesses who made the mistake of accepting as reliable all the rubbish spouted by the mainstream press, over lobbied pollies, policy wonks and “pet economists” of the FIRE sector .
The lines run will be along the following lines “..no one was forcing them to borrow”, “..we did not think anyone would take us seriously”, “..people are adults and able to make their own decisions…”, “…It should have been obvious we were all self-interested spruikers or as clueless as the next guy…”. Basically the sort of stuff the tobacco industry and fast food industry rolls out when their products of addiction and disease cause injury.
The snake oil merchants know that by blaming the victim and “spreading the blame” it is more likely that they will be able to sneak away without censure or penalty. They also know it is more likely that the taxpayer will be called in to make their victims good rather than themselves be held to account.
Even worse we will get even more claims by people like Mr Robb and other sell-out cheerleaders in major news publications, that we now have no choice but to sell off assets and IOUs to foreign buyers and governments even faster than we already do. To assist the process the Federal Government has been signing FTA’s, as fast as it can, that lift the trigger on FIRB review to $1 billion for some items in the great post-mining boom Aussie asset garage sale.
The Glass Pyramid has some sympathy for all of those individuals and small to medium sized enterprises who believed that it was reasonable to base life and business plans on the ruminations, predictions, condescending assurances by the ‘pet economists’ and assorted mainstream soothsayers in government and the banks (where most of the pets live and are trained) that this mining boom would run for decades.
If there is one group that deserves the rough justice of insolvency it is the “blue sky for ever” crowd that spruiked the nation into delusion.
But as we know they are all tip toeing away and even have the hide to claim ‘they saw it coming’ or that the only problem is that the ‘proceeds of the boom were wasted’.
Dumping a mountain of capital into mining CAPEX that is now locked up behind chain link fencing is WASTING the proceeds and I don’t recall many of that crowd (especially the banks who were lending to those mining contractors) arguing against the housing asset price ponzi program either.
If anyone wants to know where the proceeds of the mining boom went need only look around the over capitalised residential dwellings and massive holes across the nation.
It is time to hold people accountable – before it all gets forgotten and rolled under history’s carpet.