Now where have all those anti-collusion zealots disappeared to? Why are they not leaping about and complaining about the cosy calls that the US Federal Reserve made to fellow central bankers this week? Surely it is collusion when all together at one o’clock the price of money pretty much worldwide dropped in unison? Except of course for us folk down here on the southern tip.
It must be pretty embarrassing for Governor Mboweni to realise that he is not on Governor Bernanke’s speed dial list. The first time our chap found out that there had been a club meeting to which he was not invited was when he turned to the front page after finishing the sports section the next morning. But he got his own back two days later and at his very own meeting he dropped the rates in South Africa by precisely zero!
And then, if reports are to be believed, the Governor suggested that hope and prayer were important methods for keeping the currency strong. He really should be looking around for other means as well, because not even these tools are working. Money is clearly flowing out of the country – anecdotally, much of it from residents alarmed by political developments here at home – and the rand is testing multi-year lows against most other currencies. At this rate the expected hordes of 2010 overseas soccer fans will be able to party their lives away on just the loose change in their pockets when they leave home.
However, the main story of the moment is that money is leaving the world’s stock markets. In a big way! Either actually as cash in the pockets of those who have sold or notionally as terrifying declines in portfolio values. This is turning out to be one very serious bear market. The only humour in the situation is that the clowns who have been in charge and lying to everyone that everything would turnout alright are now the same folk who are claiming to know exactly what to do to solve the problems. Predictably most solutions comprise dishing out new regulations and money in various proportions. I have seen no mention of integrity, honesty or accountability as important requirements for lifting the broken and discredited financial sector even partially back towards respectability and usefulness.
With already so many indicators pointing towards an economic slowdown it will need some inspired and selfless leadership if we are to avoid local and global recession. Current developments on the domestic scene are not hopeful on this score. One faction has already warned the other that they can “pick up their spears”. In the world’s most indebted nation, candidates for the presidency also appear clueless about how capitalism ought to work. That contest seems to have descended to the level of accusing the opposition of being a dog wearing lipstick.
I have before suggested that the choice of a name of a sports team should be the prerogative only of the lads and lasses who have worked and trained to get selected for that team. The same principal should apply to street names. A simply majority of ratepayers who live in that street should be entitled to choose the name and should also be responsible for all costs if they decide to change it. Politicians who can’t tell one ball from another and who have never paid any rates at all are once again meddling. Go and fix the hard stuff please guys.
James Greener
10th October 2008.
