Fanie Brink, Independent Agricultural Economist
The International Monetary Fund (IMF) today released its latest report on South Africa, saying that the government will have to improve its "fiscal policy because monetary policy alone cannot stimulate economic growth."
"It is very unfortunate that the International Monetary Fund (IMF) is still convinced that monetary policy can stimulate the economy because it is simply not correct and there is not any evidence to substantiate this claim anywhere in the world," says Fanie Brink, an independent agricultural economist.
In the past, the IMF has repeatedly urged the Reserve Bank to maintain a strict monetary policy just to lower the country's economic growth rate within the next 2 or 3 months thereafter!
The fiscal policy of the ANC government's income and expenditure is the single biggest problem and destroyer of economic growth that cannot stimulate even less economic growth, not to mention the destructive corruption and open theft. And yet, the IMF acknowledges that the "government has no fiscal space."
Brink says it is also extremely worrying that the IMF does not understand that the ANC government's socialist and communist ideology has already completely destroyed the economy and that, as a result, South Africa has almost already become a failed state which cannot go on under these circumstances.
The IMF also clearly does not understand that there is no such thing as “well-defined management, operational and financial performance targets” within the ideology of the ANC government. Therefore, the only reform that can save the country from final destruction is to put the government under administration and to help the country make a complete return to a capitalist economic system. Not a loan that will never be repaid and only worsen the country's bankruptcy.
By just talking to government officials in South Africa the IMF is, in fact, not serious to take the facts and realities of the ANC government's destructive policy in its report into account and it will, therefore, bring no improvement.
"It is also very clear that South Africa will not be able to rely on the IMF to assist the country and its people under these circumstances, and the report of the IMF is, therefore, worthless for the country," says Brink.
