Economists are just so…. logical?

I heard the happy news today that BHP Billiton, one of the world’s largest mining conglomerates, announced a first half year profit for 2012/13 of over 4 Billiton – err That’s FOUR BILLION Dollars (AUD). (on which they claim to have paid a whopping $78 million in the ‘super’ mining tax or MRRT. That’s a huge 1.9% super tax rate folk,s which is a tax on profits alone (not earnings) made over and above $50 mill per annum!)

Then it was pointed out that this was a massive 58% BELOW last years figure for the same period! (before the MRRT came into being). It was stated that one of the main reasons for this poor performance was the comparatively high value and strength of the Aussie Dollar?

Call me curious but does anyone else find this fact a tad confusing when: a) the Oz dollar has basically been above 1$ US since December 2010, and b) the reason for that is almost entirely down to China buying so much of the Pilbara iron ore from…. guess who?? – BHP Billiton!

So the reason BHP profits are down is because they are so successful? Well, that makes sense….

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