Profiting from Europe’s New Gold Rush [CaseyResearch]
July 22, 2012 Leave a comment
By Jeff Clark, Casey Research
Europe owns a sizable chunk of the world’s natural resources.
Over the past few decades, however, EU countries have mostly imported their resources.
But it was simply easier, cheaper, and most importantly it avoided most environmental conflicts.
Getting through government regulation and facing off eco-friendly groups is a time-consuming and outrageously expensive business… a fool’s errand.
When you can simply import and let other countries deal with all the hassle, it made a lot of sense. But things change.
When no one’s got a job, it truly focuses the political agenda.
Europe’s job market is a mess. Demonstrators are crying out for action, for opportunity, for jobs.
And mines employ a lot of people.
The trend is reversing because of Europe’s sluggish economy and the real benefits of the increase in local jobs and the leap in tax revenue that mining projects bring.
Of course, local economies benefit. Hotels are full of transient engineers and specialists, grocery stores feed the workers, and bars serve liquor to quench their dusty throats.
Then, of course, the government got involved…
Seeing the benefits of the jobs, income-tax revenues, and all-around political advantages, a “Raw Materials Strategy” was initiated in 2008, then revised and updated in 2010, and again in 2011.