It is really all very messy and uninspiring. The state of the world’s finances that is. The government of the world’s largest economy has run out of budget and is trying to decide which state employees are not “essential” and would therefore not be offended if they did not receive a paycheque. Apparently the people in charge who live in Washington and led the country into this mess, most definitely are essential and naturally will be among the first to be paid. However, there is some doubt whether, for example, the lowest ranks in the armed forces qualify as essential. Aren’t they the ones with the guns fighting for democracy in some of the less comfortable spots on the globe? Best you guys in the White House just tell Governor Bernanke to crank up those presses and helicopters again. In Europe, bail-outs of the previously out-bailed continue and this morning on TV I watched as a party of artists and thespians gravely knocked on the British Prime minister’s door to present their arguments why they deserve to receive tax payer’s money. And the Earth beneath Japan is still quaking adding to the woes and costs of those poor folk.
There are a few patches of relative brightness. The South African National Treasury has heroically managed to rein in enough of the government spendthrifts, while squeezing a few more tax payer’s pips to stabilise the deficit. But while the state continues to spend R1.24 for every R1.00 of collected tax, this situation can not last. Further, insufficient of that spending is going directly to private sector suppliers of goods and services that might be considered infrastructural or of a capital investment nature. Some companies have reported modest and, a few, even exceptional earnings growth, but 67 of the roughly 400 listed companies have reported losses.
I have long maintained that South Africa’s present policy of political allocation of resources is calamitous and will have no good outcome beyond providing prime research material for theses and case studies for future generations. Recently several marriages of inconvenience between approved yet obviously incompatible parties have crumbled because expectations on both sides have not been met. On the JSE one can find one species of Sasol shares on offer at R310 per share. A financially identical share is available at R399 per share. Brokers may buy the cheaper one for their clients only once they have determined that the skin colour of their client is sufficiently dark. This is outrageous and clearly racist.
A local invention that can be used to prevent robbers getting any money from the notorious cash-in-transit hijacking events has been on display. As soon as trouble threatens, the guards trigger the release of quick-setting hard foam that encapsulates and binds everything together. Reportedly only several days of patient chipping at the resulting mass will release the valuables and any guards or robbers who were a bit slow. The stuff is called Pudu.
The last time I wrote Tidemarks, the Proteas were still in the World Cup and looking good. Since then we have discovered that the captain was dreaming of a pair of Irish eyes, and the team had been told by some shrink that it was just a game and what mattered most was that they emerged strengthened by the experience. No. What mattered most was that they won all the matches necessary to bring home the trophy. Just because we went home after the Australians did was not a win. And are you also astonished and frankly underwhelmed by the news that the India pyjama cricket party begins today?
With a Grand Prix in the Far East and the Masters in the Deep South, the couch in the TV room is going to take a beating this weekend. So too I fear will the Lions, although the Sharks have been looking as if a few slugs of Pudu are what they need to keep the ball in hand these days.
James Greener
8th April 2011
