The impact of the Rudd government's announcement of an additional 40 per cent tax on mining is starting to be felt across the community.
As share prices fall, investors withdraw capital, our international reputation is tarnished, projects are suspended or cancelled and jobs are lost, the mining industry is reeling in disbelief from the Rudd government's attack on one of the most important sectors of the Australian economy.
It's the resource industry's equivalent of a drive-by shooting.
Kevin Rudd said that it would stimulate more investment, grow the mining sector and be good for the economy.
It is having precisely the opposite effect.
It is not the first time that this Government has fired first and asked questions later - when it is too late.
Remember the fallout in the financial and mortgage fund markets in October 2008 when Kevin Rudd announced an unlimited guarantee of deposits held in certain financial institutions, but not in others?
There was a run on funds from those institutions not covered by the guarantee, redemption payments were frozen and people were unable to access their money. The Rudd government callously told people to go to Centrelink and ask for welfare assistance!
Just a case of unintended consequences?
The phrase ''unintended consequences'' is said to have been coined by the distinguished American sociologist Professor Robert Merton who listed a number of possible causes including ignorance, error through incorrect analysis of a problem, or immediate interests overriding longer term interests.
In the case of the mining tax, all of the above apply.
The disastrous consequences may not have been intended, but they should have been foreseen.
Equally disturbing is the Prime Minister's behaviour over recent days, which reveals that his strategy for re-election will be to personally attack Tony Abbott and members of the Coalition.
Few could be in any doubt that Labor is preparing the mother of all negative scare campaigns against Tony Abbott, making this year's election campaign one of the most negative and personally vindictive ever seen in this country.
No less than five ministers emerged after the publication of polls on Monday indicating that the Coalition was ahead, to parrot that if the election were held tomorrow Tony Abbott would be the prime minister. Duh.
Foreign Minister Stephen Smith dismissed the latest opinion polls as irrelevant but hinted darkly of the "risks" involved if the Coalition were to be elected.
Risks? Coming from a government that has proven itself to be not up to the challenge of managing Australia's economic or foreign policy interests?
Before the 2007 election, Rudd ran paid television advertisements claiming that "A number of people have described me as an economic conservative. When it comes to public finances, it's a badge I wear with pride".
No one is admitting to having ever described Kevin Rudd as an economic conservative, but his record in government has proven to be anything but that of a prudent manager of public finances.
The slide into debt and deficit has been the most dramatic turnaround in government finances in peacetime history.
The spending of taxpayers' money has been the most reckless and wasteful in living memory.
The billions of taxpayer dollars wasted on the shockingly rorted school building program and the hundreds of millions of dollars to repair some of the damage caused by the home insulation scheme are emblematic of this Government's maladministration.
The broken promises, the policy backflips, the arrogant refusal to consult with relevant parties or to take responsibility for the damage caused by its incompetence is a hallmark of this government.
The damage is not only on the domestic front.
Stephen Smith is supposed to be the custodian of our international relationships.
Under his stewardship, relations with many of our key trading and strategic partners have worsened, some considerably.
The sudden decision to announce that Australia would instigate legal action against Japan to stop whaling, without consulting Japan, let alone other affected parties, and just days before a meeting of the International Whaling Commission, has been met with dismay from key allies, the United States and New Zealand.
New Zealand Prime Minister John Key said, "If we go to court, the International Court of Justice, as Australia is, we may well lose, and loss means open slather."
New Zealand remains committed to negotiation and a diplomatic solution.
Smith should explain why he failed to obtain the backing of New Zealand and the USA before making the decision to launch high-risk action through the courts.
Another relationship under considerable strain is with India. While the Rudd government cannot be held responsible for the crisis involving attacks on students, it can take action to remove a matter of ongoing concern by agreeing to sell Australian uranium to India.
Smith is reported to have told Indian authorities that it was a decision driven by internal Labor politics, rather than any concern about nuclear proliferation. It seems Australia's national interest did not even rate in the decision.
Smith's announcement of the cancellation of the Australia-India-Japan-US Quadrilateral Initiative, during his press conference with the Chinese Foreign Minister, was another insult, giving the impression that the decision was taken to appease Chinese concerns about India's involvement in the Initiative.
The list of Rudd government diplomatic blunders is long, topped off recently by reports of Rudd's outburst of foul language and abuse directed at representatives of the Chinese government at the Copenhagen Conference.
It is hard to find where Australia's national interest has been served by either Rudd or Smith given the current poor state of a plethora of international relationships.
There are risks to Australia's economic and foreign policy interests, and they all rest with the Rudd government.
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