FINANCIAL REVIEW: S&P- ZUMA’s THEATRICALS EVENTUALLY PUSHED SOUTH AFRICA INTO JUNK STATUS

 

 

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Article compiled  by: White Nation  correspondent Pretoria  – April 04  2017

 

 

 

SOUTH AFRICA– FAILED LAND OF COMMUNIST ANC ORGANIZED CRIME ,LIBFARTS, UNION CHAOS , MISDIRECTED RAINBOW MONKEYS – AND WHITE GENOCIDE

 

 

STANDARD AND POOR’s (S&P) Global has just announced South Africa’s sovereign credit rating has been downgraded to BB+.(Junk Status) The rating agency says the decision has been taken on the back of political and institutional uncertainty.

Fears of a downgrade were raised last week already when  Jacob Zuma announced his Cabinet reshuffle in which Pravin Gordhan was axed as Finance minister. Gordhan’s deputy Mcebisi Jonas was also sacked. Former ANC Youth League president Malusi Gigaba replaced Gordhan at the National Treasury. In December last, S&P kept South Africa’s credit rating unchanged at BBB-, just one level above junk status.  At 5:20PM the rand was trading at R13.52, before dropping sharply to trade at R13.56 just 10 minutes later. Also in December last year, Moody’s kept the country’s rating two notches above junk on its scale.

Treasury has given its first reaction to Standard & Poor’s (S&P) Global’s decision to downgrade South Africa to junk status. S&P has lowered South Africa sovereign credit rating to BB+ or junk status. This is from BBB minus with money now set to become more expensive for the government to borrow. The ratings agency says it’s taken the decision on the back of political and institutional uncertainty. Fears of a downgrade were raised last week already, when  Jacob Zuma announced his cabinet reshuffle, in which Pravin Gordhan was axed. S&P says in its opinion, the executive changes initiated by Zuma have put at risk fiscal and growth outcomes. The rand immediately plunged with 2%. 

Treasury has released a statement this evening saying it’s noted the downgrade. It says newly installed Finance Minister Malusi Gigaba will hold a briefing. Treasury says it’s committed to a stable fiscal policy after rating agency S&P Global announced South Africa’s downgrade to junk status citing the recent political developments. In its statement, Treasury says while the leadership of the finance portfolio has changed, government’s overall policy orientation remains the same. It goes on to say South Africa is committed to a predictable and consistent policy framework, which responds to changing circumstances in a measured and transparent fashion. Spokesperson Mayihlome Tshwete says, “The issues that they have raised are matters around the political matters. The minister will be announcing the interventions he is going to be making to try and resolve or stabilise the concerns that they have brought up.”

 

ECONOMISTS REACT WITH SHOCK

Economist at Argon Asset Management Thabi Leoka says its bad news for the country. ” This is the breaking point and it really is up to politicians and up to South Africans to decide whether we are going to take 12 years or two years to come out of this situation we are in.” Nedbank’s Isaac Matshego says there’s been a lot of policy confusion in government over the past few years which is finally catching up. “There is this talk about radical economic transformation which, unfortunately, is not very clear what it means. What we need is macro-economic stability, even in the African National Congress’s economic transformation document.” The rand fell by as much 2 %to the dollar this evening in response to the news of that downgrade, while government bonds also weakened sharply.

 

FOOTNOTE:

I bought a bird feeder. I hung it on my back porch and filled it with seed.
What a beauty of a bird feeder it was, as I filled it lovingly with seed.
Within a week we had hundreds of birds taking advantage of the continuous flow of free and easily accessible food.
But then the birds started building nests in the boards of the patio, above the table, and next to the barbecue.
Then came the poop. It was everywhere: on the patio tiles, the chairs, the table, everywhere – !!


Then some of the birds turned mean. They would dive bomb me and try to peck me even though I had fed them out of my own pocket. And others birds were boisterous and loud. They sat on the feeder and squawked and screamed at all hours of the day and night and demanded that I fill it when it got low on food.
After a while, I couldn’t even sit on my own back porch anymore. So I took down the bird feeder and in three days the birds were gone.
I cleaned up their mess and took down the many nests they had built all over the patio. Soon, the back yard was like it used to be .. quiet, serene.. and no one demanding their rights to a free meal.


Now let’s see. Our government gives out free food, subsidized housing, free medical care and free education, and allows anyone born here to be an automatic citizen. Then the illegals came by the tens of thousands. Suddenly our taxes went up to pay for free services; small apartments are housing 5 families; you have to wait 6 hours to be seen by an emergency room  doctor; your child’s second grade class is behind other schools because over half the class doesn’t speak English. Corn Flakes now come in a bilingual box; I have to ‘press one’ to hear my bank talk to me in English, and people waving flags other than our flag are squawking and screaming in the streets, demanding “more rights”  and ” free liberties. ” Just my opinion, but maybe it’s time for the government to take down the bird feeder.

 

Carlos Floris Marie Herckenrath

Analogy on the Facebook site of Helen Zille, the Premier of the Western Cape.

SOURCE: White Nation

 

 

 

 

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