So what changed? The JSE, which looked as
if was just as spooked as Wall Street by the prospect of a US government
shutdown suddenly and sharply bounced and the All Share index will end the week
near the levels it was at last Friday. That might well go down as one of
history’s nastier little bear traps. There has been scant good news in the
financial pages. Most concerning is that the politicians’ squabble over the US government’s
debt is starting to be sorely felt by the largely blameless wage earners on the
federal payroll. Despite the rather astonishing promise that the government
will pay them in full once this debacle is over (so how does the “shutdown”
save money?) in the meantime workers aren’t getting paid. And that of course
immediately affects the retailers and bankers who in turn will not get paid.
Wowee.
Next week there are some critical dates
in the US
debt calendar when loans and interest need to be repaid to those who lent money to
that nation. No one seriously believes the US will renege on its obligations
but it is going to be fascinating to see how it works out. This is a great
spectacle for economics voyeurs.
With trade union leaders screaming
“blackmail” and dismissing severely damaging striker action as “normal” our
country is lurching into a damaging phase of failed labour relations. The most
dramatic example of this was the decision by BMW not to expand their existing
South African plant to produce a new model. Marxist Minister Davies hurried
round to the luxury carmaker for a chat but failed to change their mind. They
politely pointed out that there are other places in the world they can make
their cars where the workers are less truculent and more productive. It’s both
tragic and criminal how our leaders still place ideology above reality.
US commentators are getting a bit
overexcited about the prospect of having a female governor of their central
bank (The Federal Reserve). We've had one for years and she has done a good job
changing interest rates down once and criticising the government for ineptitude
a few times. It would be fun to be a fly on the wall when they get to meet each
other. Probably there will be high fives
just as soon as they are in private. Before long they will be swapping stories
about how to tease investors with “forward looking statements”.
The Winter Olympics kicks off in five
months time and already the rather tacky and boring business of transporting
the Olympic flame from Olympia to Sochi in Russia
has begun. The problem is that the darn thing keeps blowing out so alongside
every grinning and waving athletic torch bearer there is a podgy man in a suit
bearing a very unofficial Bic lighter. Furthermore, its route includes an
excursion to the International Space Station, where presumably naked flames are
not all that welcome and so the Lighter Bearer will just have to kick his heels
out on the rocket landing zone until the torch is returned to earth.
It must be seriously annoying to see your
name in one those articles about the world’s rich people. This week a fellow old Rhodian was revealed
as one of Africa’s wealthiest. He will not be
pleased. Not only does such exposure demolish any privacy that the more
reclusive billionaires might crave but almost certainly the reported value of
your nest egg will be way too low or too high and there’s nothing you can do
about it. Now not only do the mendicants
and tax men learn where you live but if you have dropped a few billion since
last time, you will also have to suffer the sniggers and pity of the others on
the list. Shame.
Contrary to popular assumption I am right
behind the Sharks in their match with Province at Kings Park
tomorrow. I have even snared a ticket and will go along to witness the big men
of SA rugby face off. And Sebastian Vettel ought to just about wrap up the F1
championship in Japan
on Sunday.
James Greener
11th October 2013
