The residents of Durban
poured into the streets last night to gaze in awe at the skies above the
International Conference Centre. Hopefully the dramatic fireworks display that
was reflected in the tears of pride and appreciation that rolled down the faces
of the gathered rate and tax payers marked the end of the COP 17 boondoggle. We
were humbled that our leaders were using our money to stage such an appropriate
nature-friendly display of extravagance to thank the Parties who had attended
the Conference for the 17th time. Those residents lucky enough to
live alongside the roads linking the gritty downtown venue with the luxury
hotels of the north coast were able also to see for the last time the weary and
exhausted delegates as they were whisked past in their police-escorted, blue-light
flashing, traffic-law flouting convoys. Some found comfort in the knowledge
that these hard-working servants of the people would soon be in their
comfortable sea-facing rooms with well stocked mini-bars and 24-hour room
service.
By most accounts it seems that the conference was an outstanding
display of hypocrisy and privileged consumption. No document or memorandum that
could not have been knocked up by people staying at home and using the internet
was published. But lots of folk got to spend several days in Durban (sorry about the weather chaps)
practicing very bad science, displaying some astonishing ignorance, arrogance
and bad manners. As with all these international gatherings one rarely gets to
see a final set of accounts to see if the costs were greater or less than the
benefits, but I do hope that at least
some members of the hospitality industry here in Durbs are feeling better off
today..
I was extremely fortunate to be out of town for all but the dying
moments of the circus, but one excited news item I did see insisted that the
gathered throngs had discovered a new and magical business strategy that would bring
prosperity and create jobs. It seems that manufacturers and businessmen need
only make their products and services eco-friendly and a hitherto untapped community
of wealthy and eager customers and clients would be delighted to pay premium
prices and drive up sales and profits. And so, to cater for this wonderful new demand,
employers would need to throw open their gates and welcome the large numbers of
well trained and disciplined workers waiting outside. Who would have guessed?
Equally amazing is that despite some recent heroic intra-day excursions
by the market indices, the average investor is merely 10% better off than they
were at the 2008 market index peak. Significantly, all of this return has been
derived from the dividend portion only. This is why mostly only well-managed,
dividend-paying companies remain my choice for investment portfolios.
And why, if the Euro Zone is in such a mess, has the euro currency
not completely tanked. In the same way that an excess demand for shares has not
emerged in the last few years, no overwhelming supply of euros has swamped the
currency markets in the last few months. Puzzling, but it suggests that many
people are rather certain that the euro will survive.
It is also puzzling if not very embarrassing for someone that one of
the Durban harbour
pilot boats managed to miss the enlarged harbour entrance by a country mile and
fetch up on the beach after bouncing off some rocks. These are the guys that
the big ships are obliged to pay to have on board when entering or leaving port.
Fortunately, no one except taxpayers were injured as the damage repair
estimated at R1 million was described by the port captain as “minimal”. So not
only is the 5 cent coin being withdrawn, the amount of R1m is apparently barely
worth mentioning. Inflation is
undoubtedly on the rise.
Thank goodness that some test
cricket is starting again in a few days. It really is the ultimate in sport but
let’s hope that the New Year sees the departure if not the arrest of the crooks
and thugs who ludicrously are in charge of this and many other sporting codes.
James Greener
11th December 2011
