The bear suddenly started to feed on what has looked like perfect bear food for some time. The main course is the situation in Greece, where in order not to default on paying off a debt which has fallen due, the government is borrowing cash from someone else. This seems sort of self-defeating but is quite a common procedure in the financial world where it is dressed up with names like “restructuring”. The implicit assumption is that the borrower will now turn over a new leaf and begin to spend less, earn more and so thereby have a bit over to pay off the debts. This proposition is proving deeply unpopular amongst the Greek folk who up to now were grateful recipients of their government’s spending programs but who lethally are allegedly among the world’s leaders in failing to be at home when the tax collectors call. Lenders to Greece and several other countries in the Euro zone, which are suspected of being in similar very leaky boats, are now demanding that they be paid much higher interest rates on their loans to compensate for their risks. This is the financial market equivalent of kicking a man when he is down.
In the USA, politicians are trying to score points with the voters by kicking men who are anything but down but who are suspected of being too clever by always selling high and buying low. That the people on the other side of these trades are so-called valued clients is puzzling to both the affected clients and to others not actually working in these markets. The outcome will probably be more and stronger regulations on top of the ones which are already in place but are circumvented because that’s what human ingenuity is for.
The main question that has not yet been answered satisfactorily, however, is whether or not the world’s economy really is picking up. At the simplest level this is the same as asking if there are now more people employed in value-adding jobs earning more than before. Like all economic and social statistics this sort of data is notoriously unreliable but the figures released this week in SA suggest that the answer is no. Despite this, all of SA’s ports and railways are due to be shut down by a massive strike next week. While this will bring relief to the hard-pressed “brand police” trying to confiscate all the imported items from which the FIFA regime have failed to claim a tribute, the number of ships lying in the outer anchorages awaiting berths will grow. Many World Cup spectators will have to do without makarabas.
Defence and Military Veterans Minister Sisulu, however, proposed that the nation’s youth should put on “staaldoeke” and uniforms and learn how to march and shoot things. Given the widespread discontent about the government’s failure to deliver any services, arming the potential protestors seems a bit unwise. A better idea would to ditch the laws which make it so complicated to hire and fire people. Start with the one that asks about the employee’s skin colour.
The good news from the kingdom is that King Shaka airport is open and operational with a departures hall big enough to hold the World Cup Final but a road layout that routes both arriving and departing vehicles through the same crossroads. The SkyCar that hoists visitors to the top of the soccer stadium arch has taken a commendable R5m in ticket sales in just five months. This is a useful contribution towards the R3.1bn bill for the structure but together with other businesses in the complex, such as the excellent pub and grill, this tourist attraction will shortly be shutting down for a spell so as not to offend the sensitive souls of FIFA. Odd hey?
Keeping up with the Lions’ record breaking attempt to lose every single Super 14 match is rather diverting and I was a bit startled to notice that the pyjama cricket on the TV was no longer happening in India. The spectators were sitting in bright sunshine rather than grey smog. They were also way more mellow. It was surely that funny collarless shirt that denied the Proteas a win in that first match.
James Greener
7th May 2010.
