THE DECISION WE WERE ALL WAITING FOR, THAT IS TO SEE IF WE WERE TO FALL INTO JUNK (NON INVESTMENT GRADE)WAS AVERTED YESTERDAY .WE ALL GAVE A GREAT SIGH OF RELEF WHEN STANDARD AND POOR KEPT US ONE NOTCH ABOVE THIS STATUS. LATE LAST MONTH MOODY'S EVEN MOVED US UP TWO NOTCHES. THIS GOES TO SHOW WHAT CAN BE ACHIEVED WHEN BUSINESS , THE TRADE UNIONS AND GOVERNMENT ALL WORK TOGETHER FOR THE GOOD OF THE COUNTRY INSTEAD OF SHOUTING AT EACH OTHER. A FURTHER REVEIW WILL BE HELD AT YEAR END SO THERE IS MUCH WORK TO DO. WE ARE STILL THE STRONGEST FISCAL STATE IN AFRICA!
THE CRISES WAS BASICALLY CREATED WHEN THE BOTTOM FELL OUT OF THE RESOURCE PRICES WITH DOWNTURNS IN DEVELOPED AS WELL AS DEVELOPING NATIONS AND HAS PERSISTED FOR A NUMBER OF YEARS. OUR GOVERNMENT WAS VERY LAX AND CONTINUED TO TRY TO SPEND OUR WAY OUT OF THE RECESSION ON BORROWED MONEY.
WE CAN NOT REST ON OUR LAURELS NOW.
A GOOD MOVE WAS TO BRING MR GORDHAN BACK AS THE MINISTER OF FINANCE. THE GOVERNMENT MUST CUT DOWN ON GRAFT WHICH REACHES FROM THE VERY HIGHEST ECHELONS OF STATE STRUCTURES TO THE LOWEST. THIS IS A SERIOUS MATTER. A GOOD START WAS MADE WHEN THE PUBLIC PROTECTOR MADE OUR STATE PRESIDENT PAY FOR PART OF THE UPGRADES TO HIS PRIVATE RESIDENCE.
A MORE OMINOUS SUBJECT WHICH WAS PUT ON THE BACK BURNER WAS THE SOCIALIST MINING CHARTER. IN ITS PRESENT FORM WHICH WOULD ALLOW THE STATE TO IMPOSE IMPOSSIBLE DEMANDS AND AND EVEN SEIZURE IF NOT MET SHOULD BE TOTALLY SCRAPPED,AS MINING COMPANIES CANNOT PAY WORKERS MORE OR CEDE MORE TO THE STATE TAKING THE STATES SHARE TO 50% AS PRICES DECLINE. NO NEW MINES ARE BEEN DEVELOPED AS THIS REQUIRES BILLIONS OF AMERICAN DOLLARS AND WHO WOULD INVEST IN SUCH AN UNCERTAIN COUNTRY,IF THERE IS A POSSIBILITY OF THOSE ASSESTS BEEN CONFISCATED ?
AFTER ALL IT TAKE MANY YEARS TO BRING MINES TO PROFITABILITY.
ANOTHER DUMB MOVE, IN ANOTHER BILL STILL IN THE MAKING IS TO FORCE MINING COMPANIES AT THIS CRITICAL TIME TO KEEP A CERTAIN AMOUNT OF THEIR PRODUCTS BACK FOR FURTHER BENEFICATION HERE BEFOR EXPORTING THEM. THIS QUOTA WILL BE DECIDED BY TECHNOCRATS OF THE RULING PARTY. THIS IS SUPPOSED TO BE TO CREATE JOBS, BUT SUCH BENEFICATION IS USUALLY HIGHLY SOPHISCATED,REQUIRING SKILLED WORKERS FROM OUTSIDE OUR REGION , IS UNLIKELY TO CREATE JOBS AND WORST OF ALL , WHERE WOULD WE SELL THESE PRODUCTS?
IN THE COMING MONTHS I SHALL ENDEVOUR TO REPORT ON POSITIVE ASPECTS OF OUR EVENTUAL RECOVERY WHICH IS A MUST.
1 THE NEWEST ADDITIONS TO PAGES ARE MENTIONED AT THE TOP OF THE INDEX ABOVE.
2 SEE THE ADDITIONAL NEW SMALL CAP WINTER AND YEAR LISTS ABOVE
3 Whilst we wait for Brexit to play itself out on the 24 June 2016 maybe visit our revamped site at http://paws2012.blogspot.com for a gentler look at life !
