More Proof of How Credit Fueled Asset Bubbles Has Spurred the War on Mining

Last June I wrote

And because the Duterte regime believes that the bubble economy will continue to provide them with the necessary tax revenues for their pet boondoggles, they believe that they can exorcise the mining industry of environmental evils through intimidation.

More proof of this. From Interksyon

President Rodrigo Duterte raised the pressure on the mining sector on Monday, saying the resources-rich country can live without the industry if firms fail to comply with environmental laws…

"I can do away with 40 billion (pesos, or $840 million annual mining taxes). I will shut all of you down. You obey or we will survive as a nation without you," Duterte told a rare press conference, referring to the industry.

Well, my prediction is that things will radically change when the bubble pops.

Once the bubble economy begins to corrode and where prices of metals soar, such industry bullying will come to an end. Ban on mining will transform to welcome back mining!

First, the tax numbers provided by the Bureau of Treasury below tells us why such volte face will come sooner than later.

 

 

Second, higher precious metal prices will encourage more mining whether legal or illegal

 

So policy flipflopping will be the standard of this regime.