Fanie Brink, Independent Agricultural Economist
"Nobody who has for quite some time referred to 'structural reforms' as the solutions to South Africa's destructive economy has ever indicated that they have any idea of what they are talking about," says Fanie Brink, an independent agricultural economist.
Brink referred to the article "Rommel kom - en soos dit nou lyk, gaan SA lank ly” (“Rubbish is coming - and as it seems now, SA is going to suffer for a long time") which appeared in the “Rapport” yesterday.
He says the question is which other "structural reforms" are needed to destroy the economy and the country even further than the ANC's ideology of socialism and communism that caused South Africa to be a totally failed state today?
A state that is totally bankrupt with debt rising to 70-80% of the Gross Domestic Product, annual budget deficits due to corruption and open theft, unalterable downgrading of its credit status, no economic growth, poor business confidence and policy uncertainty, to name just a few! With fund managers trying to mislead investors about how wonderful it is to invest in the country with their "cliché" that the devastating effects of a credit downgrade "have already been priced in by the market."
The Rand, according to them, will only be "volatile" and will not weaken dramatically while investors will not resell their government bonds because "their money will flow to South Africa". "Any improvement in the government's debt burden or a smaller budget deficit - however small - will be well received by the market."
,SA does not have an "income problem" while it was already proved very clear that the South African Revenue Service misses its revenue targets every year because the economy is not growing and it is generating much less profits that would otherwise be taxable, as well as greater unemployment.
“And the media believes everything! Even the ‘policy uncertainty’ about the very clear policy direction of the ANC's destructive socialism and communism. The only 'effective structural reforms' that are now needed are for the International Monetary Fund to put the government under administration, as well as a total return to a capitalist economic system,” according to Brink.
