The economic situation has made folk very excited but also deeply confused. Daily turnover figures on the JSE have been regularly well over R15bn, which is nearly twice previous “normal” levels. The market has zigged and zagged quite sharply from one day to the next. Sellers presumably are taking the view that a loan of a trillion dollars to European nations that are already in debt is not quite as good an idea as some claim. They anticipate that businesses will sell fewer products and make smaller profits and that shareholders will have lean times. Buyers, however, are impressed by the so-called “shock and awe” rescue program being mounted by the world’s omniscient leaders and agree with them that it will restore confidence and that widespread wealth will be the inevitable result. Loyal readers will not be surprised by my scepticism about how the process actually makes the debts go away. Somewhere, is there not, there is a piper waiting to be paid. Austerity and public sector pay cuts are being announced all over Europe and it seems that many economies have not yet left the recession behind.
Similar cost cutting could not be further from our own politician’s thoughts as they appointed a team of powerful people who can actually read and write and who will take on the hard work of making plans. Assuredly these very clever people will identify and solve the mysteries of the universe. Parliament can look forward to hearing from them in due course on how to fill potholes, generate electricity, treat sewerage and deliver all those annoying service things that ungrateful taxpayers ceaselessly demand. In the meantime they, the nation’s elected representatives, can pursue more important stuff like punishing computerised ticket sellers and beer brewers who are definitely getting unacceptably rich by working hard to satisfy their customers.
Governor Marcus and her team decided that developments in Euro land will have little impact on their domain and declined to change the price of money yesterday. It is probably true that the inflation threat as we used to know it has diminished a bit these days and in any case raising rates had no discernable effect on the scourge. The moans of us pensioners hoping for some increased interest income are also easily ignored.
Down here alongside the nation’s busiest port, however, the effects of the transport strike are very apparent with the number of ships idling at anchor growing daily and local news full of stories about urgent cargoes getting undelivered. Businesses affected by this activity are just the latest who would like to see lower interest rates.
One story that does deserve a lot more notice is that the country will turn 100 at the end of May. Over the years we citizens have picked some really bad governments to run the place and yet it has survived. It is however, currently facing a raid by the forces of FIFA who have laid down a huge smokescreen of imaginary foreign fans in order to plunder and pillage our pockets. Nonetheless the intention to have a good time has taken firm hold on us all and the World Cup party will be a fitting beginning for our next 100 years. I was amused to see that the exact same doubts and fears that we had 4 years ago are now emanating from Brazil – FIFA’s next victim.
Because the invitation obviously has got lost I shall again watch the Grand Prix from a deck above the Indian Ocean rather than one on a yacht moored in Monte Carlo. Mind you I am grateful that I also never received the invitation to go and watch cricket in the West Indies.
James Greener
14th May 2010.
