Mining a New Face.

If there ever was a proclaimed “second” oldest profession in the world one may suggest that it exists in the long history of mining. Since the beginning of time man has utilized the physical earth and its geological provisions for the advancement of civilizations around the world. From the basic flint in sparking a fire to the refining of rare metals producing space age gizmos, mining has evolved in partnership with technology. Today’s mines, with the advancement of technology, operate deeper, faster, and with fewer people. So while miners are cutting new faces deep below the earth is it any surprise that mining promoters are working on a new face of their own. Facebook.

In the information age, filled with rapidly advancing technologies, a popular social networking site known as Facebook has become the latest tool for mining promoters to reach investors around the world. Promotion has always been about getting the word to the street and top end investment relations personnel appear to have not missed a beat. It seems only yesterday that bullboards and costly private investment forums were cutting edge developments for investors to seek information and discuss updates regarding their prized resource stocks. Today it is the world of Facebook that is making its mark as a free and easy to access reference for info hungry investors.

Cypress Development Corp. (CYP.V), a Vancouver based junior mining company has become one of the pathfinder companies to take advantage of a free social networking site in order to get information to the investor. The group consists of approximately 130 members from around the world including places such as Canada, Bulgaria and China. More importantly, the group can be viewed by anyone with access to Facebook and not just the groups active members. Information is readily available in a convenient format covering the basics of company information and recent updates. Investor relations personnel have gone as far as to post updates on current drill project status inclusive of depths and targets in near real time. Furthermore the social networking capabilities of facebook make it possible for individual investors from far away to not only converse but understand who each other are.

So if you’re looking for up to date information or further resources on your favourite company, log on and search a little because you may be surprised at not only what but who you find. Cypress Development Corp. closed yesterday up $0.075 or 30% on 1,584,780 shares traded.

Canadian budget and mining

So the Canadian government released it's set-back, revised and altered budget earlier this week. The impact it has on Canadian miners is mixed, although it does help it could of gone further to help the industry that has made this one of the biggest economies in the world.

The 15% mineral exploration tax stays put until 2010, which is good. I don't see why they have to stop it in 2010 though, unless they simply like to announce it every year to remind us we have it. The elimination of import tariffs on large mining equipment is very welcomed as well, although we produce a large amount of mining equipment we buy from places like Germany and the US for some specialty equipment.

And well, that's it, it certainly could of gone a lot further. Pretty dull if you ask me, but then again so was the entire Canadian budget in my opinion. At least we didn't get a bailout like it was rumoured a while ago though.

Protectionism

"All politics is local"

A popular phrase usually uttered to explain the short-sighted outlook of politicians, the reality of that simple saying has become blatantly clear in recent weeks and it scares me.

Globalization and balanced budgets be damned, protectionist issues and Keynesian economics have taken over the world. America's proposed Buy America clause along with Brazil's newly implemented tariffs and Europe's dairy subsidy seems to only be the beginning of new protectionist tactics to preserve jobs within nations. Of course, every economist in the world sees the harm in this, it is widely accepted that the tariffs implemented during the Great Depression helped in worsening the situation. Yet...what are we seeing here? It's like watching a car crash in front of you in slow motion and you can't apply the brakes, you know that this will end badly but you can't do a thing about it. It is incredibly narrow minded to believe that other nations won't retaliate with their own tariffs or clauses if a major importer/exporter does so first, at the same time it is ridiculous for other nations to retaliate, because that would only make it worse. All we're seeing is politicians trying to score points for their own constituents, they are trying to show that they are doing everything they can to save their jobs and guarantee them a future. All they are doing though is saving a select few jobs and risking a slew of others, but it's easier to blame others for the loss of those jobs right? How can you blame the guy who saved the steel making industry for the job loss of the farmer or software engineer?

I sincerely hope that the Americans revisit there steel and iron clause and especially back away from the proposed "manufactured goods" extension the senate is flogging. Globalization and free trade has built, sustained and helped millions attain wealth, to abandon it when the economy needs it the most is self-centered and ignorant of basic economic principles.

A lesson on economics from an unlikely source

Here is a exert from a speech at the Davos World Economic Forum, a G20 world leader said this, guess which one?

"Esteemed colleagues, one is sorely tempted to make simple and popular decisions in times of crisis. However, we could face far greater complications if we merely treat the symptoms of the disease.

Naturally, all national governments and business leaders must take resolute actions. Nevertheless, it is important to avoid making decisions, even in such force majeure circumstances, that we will regret in the future.

This is why I would first like to mention specific measures which should be avoided and which will not be implemented by BLANK. We must not revert to isolationism and unrestrained economic egotism. The leaders of the world's largest economies agreed during the November 2008 G20 summit not to create barriers hindering global trade and capital flows. BLANK shares these principles. Although additional protectionism will prove inevitable during the crisis, all of us must display a sense of proportion. Excessive intervention in economic activity and blind faith in the state's omnipotence is another possible mistake.

True, the state's increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent. Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state. And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing."

I've been busy lately, as you may have noticed. I'll be back and posting regularly a little more from now on.