Although the All Share index failed to set a record high this week, the Top 40 did so with ease. It faltered only when Governor Mboweni yesterday glided up to podium in a striking red tie and raised the repo rate half a percent (50 basis points). After a few sessions to take it all in and watch how the US markets are not allowing any bad news to slow them down, I guess the shares on the JSE will resume normal service. Banking sector shares appear to be about the only ones letting the higher cost of money worry them for longer that the obligatory knee-jerk sell off. Not even the currency seems much interested in these higher interest rates. Foreigners probably have more pressing uses for their cash back home than to come grubbing down here on the southern tip for an extra half percent. Sterling holders in particular are currently losing the battle with the euro across the channel to become the preferred alternative to the US dollar which is collapsing in a spectacular way right now.
Deputy Minister Susan Shabangu’s office has been bombarded with calls from the nation asking for pinup pictures of the courageous lady. Her advice to policemen who come across criminals at work, to “kill the bastards” has struck a great chord of approval amongst the citizens of the land who are very tired of living in fear. The carefully reported reactions of shock and outrage at Susan’s heartfelt speech, totally underestimate the mood of the people. We need and want more ministers like Ms Shabangu, who tells it like it is.
Governor Mboweni did that yesterday when he yanked firmly on the “Rates Up” lever. He is definitely focussed on killing inflation, although many of us are not at all certain whether he is using the right weapon. Frankly, after filling up the car and the grocery cupboard most people today have little capacity, at any interest rate, to spend on essentials like wide-screen TVs and cases of Dom Perignon.
Talking of weapons, I was saddened to read that Queen Modjadji is on her way home to Simons Town. She is the third and thankfully last of the utterly inappropriate class of warships that resulted from the corruption–riddled arms deal negotiated for us by people who now claim never to have heard of it. I believe that down here, astride one of the world’s busiest and storm-battered sea-lanes, we definitely have a huge need for a well equipped search and rescue fleet. But just what we plan to do with the good ship Queen M baffles me. She is a submarine.
The furore that is following the progress of the Olympic Torch is also rather disappointing. One can understand the temptation for people with a mission to seize upon the high profile event to publicize their own grievances. However, in the end the Games themselves are simply the pinnacle of a sporting career for thousands of dedicated and disciplined athletes. I think that anyone who has for four years or more every day watched the sun rise while flinging lumps of iron or jumping over fences or paddling canoes or prodding someone with a sword ought to be allowed the opportunity to see if they can do it better than anyone else in the world. Fortunately, for them and the rest of us there are plenty of sponsors pleased to pay for the circus and to enable us to watch it from the chair near the fridge at a respectable hour. Don’t we all love the drama of dashed hopes, unexpected success and the ever more intricate medal ceremonies?
The cat family are not at home in the Super 14 environment. If it wasn’t for bonus points, the poor Cheetahs would barely make the bottom of the log.
James Greener
11th April 2008
