Junk Status still on the table

Looming credit downgrades are but one symptom of the economic turmoil wrought by political infighting in the ANC. In lock step are market performances which are very much on a downward trend and have been for the past 9 months or so, after a brief period of recovery early in the year. And we are nowhere near being out of trouble with possible junk status ratings in sight as soon as June 2017, unless there are some substantially positive changes in the management of the economy. (time is running out)

Nene-gate, Gordhan-gate, and political leadership hell bent on programs of self-gratification instead of listening to sound fiscal advice from the very people they appoint to watch the economy for them, are all contributing factors to the prospects of an impending junk status.

One wonders if it is the intent of the ANC to actually destroy the economy and whether they realise that in doing so they will also destroy the lives of the tens of millions of South Africans who rely on the economy for their daily bread, and what they, the ANC will do, once they have achieved their goal, how they will appease the poor and starving who have had the wealth of their nation and their communities and their homes smashed and littered at their feet.

The Direct Democracy Forum (DDF) recognise the interdependence of the nation-state and the economy and will use economic indicators as useful benchmarks for measuring their success in governance. DDF policies for Basic Income Grant and a Sovereign Wealth Fund will enable all South African Citizens to share in the fruits of the economy. The DDF believe that a wealthy nation will be a happy nation and gaining and sustaining that wealth for all in the country will be the primary goal of DDF economic policies, where the integrity and acumen of people such as Nene and Gordhan will be respected and supported and harnessed to attain those goals.

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Gordhan and Nene

Gordhan’s ousting and his replacement by Nene are not entirely unexpected.  Gordhan has often been outspoken, as were his predecessors, who all wielded considerable power by virtue of their public declarations on financial mismanagement in the ANC led government, declarations uttered with predictable results.

It is probable that Nene has been groomed for this move and one wonders if he is going to be compliant member of cabinet who endorses the excesses of government, remains silent on them, or will he continue the slightly maverick course of his predecessors? One hopes for the latter but fears for the former.

As for Gordhan – why not just fire him from cabinet instead of demoting him to the circumcision and sangoma affairs portfolio, as described by one South African tweeter?  Perhaps Gordhan’s position is a backstop, in case the appointment of Nene does not work out as planned?   Also, perhaps, out of cabinet all together Goprdhan could pose some sort of a threat?  Just keeping him close and available could be keeping the stopper on a genie’s lamp?

What isn’t speculation is that the finance ministry has always been a zone of calm, rationality and realism in otherwise questionable seas.  Let us hope that Nene continues that tradition.   

A Direct Democracy Forum administration will certainly include the likes of Gordhan and his predecessors and their predilection for rationality and the sensible use of taxpayers money, and with the application of TEAL in place of the hodge-podge of existing taxes, they will have a much more plentiful and reliable source of funds for them to realise their visions.

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