Economic rents are massive – but not for the people.
By Phillip Anderson
Cycles, Trends and Forecasts
Wednesday, July 8, 2015
Each year the accountancy firm Ernst & Young (E&Y) produces a report that warns of the ten most severe risks that face the mining and metals sector.
Of late, resource nationalism has ranked right at the top of the list.
In other words, it is highlighting the dangers posed to miners by the people being ‘economic rent’ literate.
E&Y suggest mining companies align with multi-lateral agencies, such as the World Bank, to ‘achieve a prominent victim status in the face of mounting resource nationalism’. This is to dissuade governments from implementing land or rent reform.
So have a read here.
Again, you see how this knowledge is quite deliberately kept from the populace. In third world nations multinationals such as these work side by side with the dictators to ensure the local population remains compliant.
Even with democratically elected governments like Australia, the process is the same — just without the guns. You can see this via events in Queensland with the discussions involving Adani’s coal mine.
Read the story here.
The whole process has been ‘murky’, to say the least. There is huge economic rent involved here. In fact, massive. But not for the people.
The World Bank, large resource multinationals and firms like Ernst and Young work exceptionally hard at making sure you don’t understand this.
For your investment results, ‘seeing the cat’ is more important than ever.
Editor, Cycles, Trends and Forecasts