There
was a great deal of chat and even mild panic about the sight of bond market
interest rates shifting upwards quite sharply this week. It is of course
inevitable that one day – perhaps even soon – people are going to spot what a
bad idea it is to lend money to governments for ten or more years at very low
yields. But the latest up-tick has not yet even set a high for the year and in
the US
the ten year rate is still a derisory (and terrifyingly low) 2.3%. Our own rate (in rands of course) is almost 600 basis points
greater than this, which might not even be enough. The dip in bond prices has
tempted the shares bears out for a sniff of the winter air but perhaps the
largely unpredicted clear majority win in the British general election may be
the cause of their hesitation going into the weekend. That election result, by
the way, is another wonderful example of the perils of prediction of events
which are the outcome of the behaviour of crowds. Just like the markets.
Deputy
Minister Mkhize has impressive academic credentials with a raft of degrees in
psychology and social work. She even uses the title Professor. However she is
way out of her depth in the department of Telecommunications and Postal
Service and is very hazy on what constitutes a luxury
or good governance. She has described the fact that the board of the SA Post Office is totally vacant as a
luxury that the nation can no longer afford. Good Call!
Another luxury that we definitely do not want to afford, is the very costly
royal household here in KZN whose king has discovered that the government is
unconcerned with any unwise or inflammatory declarations he might choose to
make. It’s time these tax eaters were used for something useful, like sorting
and delivering letters.
News
from Durban is
that the runaway Russian satellite named Progress 59
streaked through the sky just offshore in the early hours of this morning.
Sadly this stricken craft made no progress at all with the task of taking 3
tons of supplies to the International Space Station and has now incinerated
somewhere above the Pacific. However, the crew of the space station are now in
much the same position as South
Africa’s citizens – awaiting more progress
to deliver the goodies.
Good news though is that the port people
have thoughtfully placed a red buoy on the shallow sand bar which has formed in
the mouth of the harbour. A few ships have “bottomed out” but apparently the port has exceeded its dredging
targets for the year (really?) and in any case the dredger is out of order
awaiting a part from Europe. Hopefully it’s
not in the post.
The faintly
hysterical report about the R12.5bn “cash injection” to be administered by
government into SANRAL’s tender rump needs to be compared to the R56bn that the
state will be collecting this year from the fuel levy. It is high-time that
levy was ring-fenced for sole use on road construction and maintenance and not
used to buy Mercs for queens.
The
Sharks CEO, John Smit, has written an open letter urging patience and loyalty.
The response from fans has been a call for entertaining and winning rugby
preferably with rising local talent. At
last the Grand Prix season has moved to the familiar European circuits and
Sunday 2pm start time. That the incidents always happen when you nip out to
fetch a beer or turn the boerie on the braai is part of the tradition.
James Greener
Friday 8th May 2015
