Investment
analysts are forever searching through the numbers for signals of what is
coming down the tracks. The puzzlement for outsiders is that the same data will
trigger quite different guesses from the alleged experts. For example, the US
Federal Reserve lowered its key interest rate this week and the commentators
split into two noisy camps. One praising what they saw as a long overdue move
that will keep the economy steaming along and the other warning that cheap
money has caused a debt “addiction” that will cause great hardship in the
future. Those steeped in the knowledge and wisdom of Central Banking Theory
undoubtedly have reasons why a committee is the optimal method to decide the
price of money but the fact is that economies seem to speed up and slow down at
their own pace in response to the net
effect of millions of people doing trillions of transactions paying little heed
to the deliberations of any committee.
Which is what
is happening to that much derided and scorned “barbarous relic”, gold. Its
price is rising. This is of course the consequence of an increase in the amount
cash into something a bit more tangible. Why this is happening is unknown, but
one reason may be the rather strange reaction that has been caused by Boris
Johnson moving into 10 Downing Street as the British Prime Minister. Apparently,
his commitment to taking that nation out of the European Union – a move
requested by a majority of citizens a while back – is alarming, and all manner
of panic buying is happening. Allegedly shedding the cloak of Brussels
bureaucracy will cause shortages of essential goods on that soggy island.
Including gold by the look of things!
As usual Eskom waited until the tax-payer’s bail-out cheque cleared,
before back-dating the wind-fall and then triumphantly releasing its (utterly
dreadful) results. Accountants please explain. Simultaneously it was announced
that Mr Jabu Mabuza would assume the dual role of chairman and acting CEO of
the embattled utility. This sprightly fellow with scant formal education but a
penchant for natty hats now has two more figurative ones. He is apparently unconcerned with the long
list of predecessors who have passed through the revolving door often citing
the pressure of the job for their departure. Good luck sir and please keep the
lights on.
Ah ha! We Durban people are going to get an infrastructure
revolution. And its jewel will be a highspeed train from the airport to
somewhere else. Apparently, it’s early days still and the MEC for the KZN
department of Economic Development, Tourism and Environmental Affairs, the
Honourable Nomusa Dube-Ncube, warned that it’s all very much in the planning
stage but they have R2.3bn in their kitty. Which doesn’t sound like very much. To
begin with, the full colour, full page brag sheet wasn’t cheap. Included in their plans is an Aerotropolis
Institute at the local university. Helpfully she explained that an aerotropolis
is a metropolitan subregion with its infrastructure, land use and economy
centred around an airport. It’s very exciting.
Only the legally informed really
understand the role that the Public Protector, Busisiwe Mkhwebane is supposed to play
in the national team but based on the title an independent and apolitical
hunter of crooked civil servants seems about right. However, she herself is now in urgent need of
protection. Almost everyone she has singled out for investigation has assembled
a pack of lawyers and sent them off to complain that their dignity and
reputations are under threat by her actions. The courts are busy. Dignity and
reputations are hard to find and keep!
Apparently,
it’s against the law (quite right too) to let off fireworks inside a building.
Allegedly this happened inside the Pietermaritzburg city hall in a highly successful
move to alarm and upset the councillors who that very moment were discussing
the collapse of their municipality. The police have yet to make an arrest. You
can’t make this stuff up.
After all the
mid-week day-time sport that we retirees have been able to watch recently, the
current drought is causing us to think about home repairs and maintenance. Oh
wait, there’s an Ashes Test Series on, featuring the infamous Australian
sandpaper squad. Excellent.
James Greener
Friday August 2nd, 2019
