Interest rates and a pinch of salt
Towards October this year it was bandied about that the Reserve bank might lower interest rates before year end and now it looks as if it might only happen in 6 to 8 months time. My first impression is to think that our reserve bank is very greedy in that almost nowhere in the world is a housing interest rate anywhere near this berserk level and stability in the housing market is almost exponentially responsible for a stable society, thus playing a pivotal role.
Surely property interest rates, relating to property in South Africa, for South Africans, should be handled in a manner totally divorced from commercial ventures and pertaining only to stable housing. As a non resident another scheme would have to be considered. I believe this might, possibly, help to negate xenophobia and it is perfectly fair to treat South Africans in a preferential manner
With a government that used, as its primary election manifesto, the offer to supply housing to all in need, they have fallen far short of the mark, essentially because they wanted to give housing away..to their primary target voters. My question then is, who was supposed to pay for this gift.??
Can the few tax payers foot this impossible bill? Our percentage income generating to those in need must be a awesome prospect to balance.
It is my feeling that they have now targeted the middle to R2million house owners, of whom a substantial proportion are White, whose salaries are mostly legitimately taxed, to bring them to their knees. These people have traditionally provided better skilled/thus better paid potential tax payers, both in themselves and in their children. Already, these people,(assume them to be substantially between 45 and 55),whose children have, or feel they have, been marginalised, in the job markets, to the extent that at least 4,5million are out of this country, have had very little alternative but to suggest that their offspring look further afield than S.A. Please, what else could they have done ?? These people, being earnest income generators and predominantly better skilled than those left behind in S.A; are now lost to the S.A economy. Their taxes would have gone a long way towards addressing the housing market needs of the poor.
I know that many of these "expats" really miss S.A but this diminishes with time as they see that, having made the initial decision to expand their horizons and, as they become more established overseas, I would expect them to make their homes there, as crime is, contrary to popular political opinion, on the increase, continuing government incompetence, is reported daily on TV and in newspapers all over the world. A real truth is that Africa is a very dangerous place to live in and South Africa, with all its infrastructure, lacks a legal system that has any hope of dealing with the crimes in a deterrent manner.
Multimedia has made the planet a very small place.
We have numerous plans and actions on the go trying to entice our people back to SA.I honestly think that these are just excuses to waste money on idiot ideas..without any control...as at the Olympic games' tourist drive faux pas.
If the government were serious about their intent they would scrap the marginalising land ownership laws..but this would be political suicide because it does not suit the masses. Who wants to buy a home when the authorities can take it away without a fair reason..(to the owner).
An interesting perspective is shown as follows; In 1994 there were 85,000 viable commercial farming enterprises. There are only about 10,000 left now, and these are diminishing with great assistance from government attitude. It would be grossly misleading to call this situation a joke. Essentially it means that we are heading towards a Zimbabwean fiasco and it is becoming apparent because we are being forced to import products we've always farmed sustainably. If it were not for the enormous gap in the $/R exchange rate, I don't think we'd have any more commercial farmers. Who allows such gross foolishness?? Surely only the ignorant or the gravy boat boys.
A sad fact, conveniently forgotten by our communistically inspired government, is that the individual is subjugated to the better of the state, and wholly responsible for the effectiveness of it. Dishonesty is then anathema. The 10 commandments, it's relation to ethics and morals, for all,(forgive my ignorance regarding other religions)could be a wonderful guideline for good governance.
Of course it is absolutely essential to address the wrongs of the past, and to be seen to be doing it. I believe that, in leveling, whether rightly or wrongly, one must expect a lot of unfairness to happen, often very stupidly and for the wrong reasons but gross national stupidity should have been addressed within the formative years of the new government. It is clearly "closing the door after the horse has escaped" to believe that any viable amounts of expats will return to what, so obviously, is a land that refuses to address the realities of murder, theft, incompetence, dishonesty and all the ills that manifest in the wake of this attitude.
There is no way that Shabir Sheik is guilty and Zuma not, irrespective of irrelevant legalities. Malema, is a substantial figure of African foolishness and is held in esteem as is Tony Yengeni, Robert McBride, Boesak, the ex Mrs. Mandela and the hundreds and hundreds of re-employed, in government or elsewhere, politically motivated, who have been found guilty of theft, fraud and the many other obviously intentionally dishonest capers. It is clever to beat/cheat the system seems to be a rallying factor.
I shrivel at the thought of what decent people think of South Africans...all South Africans.
So, back to interest rates...the cost of paying for all the losses that have vanished into thin air must have a bearing on interest rates. It is my contention that, even with substantially reduced rates, without a systematic, measurable attitude adjustment, it will be impossible to correct our faults and, more importantly , to get legitimate financing from caring outside sources, to take our intent... without a pinch of salt.
How embarassing is this ?
Article by: www.lighthouse.co.za