Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

'Expect a 50 basis-point rate hike'

Reply
john_1
Super Contributor
DC if you take what we know about market disipline and sticking to your stops, the muliply that by the whole economy and now you know just were TITO's nuts are right now. He is going to hike.
0 Kudos
CE
Super Contributor
Now that you mention it Johny boy, it can be 5% !
0 Kudos
Not applicable
There are things I don't understand. Why are we fixated on the interest rate to quell inflation? What about a simple increase in taxation? That will take money out of the economy and at the same time give the government the much needed finance it needs to pay for infrastructure. BTW, inflation is already biting, what with petrol, food, maintenance costs rising 20%+ p.a. Why do we need an r increase as well?
0 Kudos
Brazen
Super Contributor
Ok, Tango's off the hook, now I'm gonna kill Huaron. A TAX INCREASE???!!!
0 Kudos
Preston
Super Contributor
Huaron. Pls explain to me how by increasing taxation ,you take money out of the economy?
0 Kudos
Not applicable
H, aside from the fact that taxation doesn't take money out of the economy (the state gets it and spends it), aren't we forgetting how notoriously inefficient governments (as opposed to the private sector) are at spending that money? Govenment has more than enough revenue (lots of budget overruns, local authorities not even accessing money that is available to them to spend, etc etc) ...
0 Kudos
Not applicable
See what I mean about being brainwashed :)
0 Kudos
Preston
Super Contributor
With Mutual consensus with Gravy. We have unilaterally decided to tax "Brazen" ,50% of all profit made on the stock market from today onward. Brazen... Your Husband (Gravy) made the above proposal , i merely gave him my proxy to vote.
0 Kudos
Not applicable
At a macro level, no money is removed from the economy, but at a micro level it is. You see, if people are taxed more they then don't have money to spend unnecessary items (like luxuries). One way to increase taxes is to increase duty on luxury items, for example PC's could be normal items, whilst large LCD monitors and TV's could be classed as luxury items. Same with cars above R250,000. All cars, not just gas guzzlers, except for electrical cars. My problem at the moment is that our inflation is partly increasing because of the huge fiat money supply in our economies. At the same time, our government is struggling to finance a huge infrastructure improvement program. I believe the way to finance this program is with taxation, rather than with debt. Trevor Manual and his colleagues have done an amazing job these past 13 years to get rid of the national debt - and look how long it took! At the same time, they have allowed Joe Public (not my real name) to catch up with their lifestyle. Now it is time to put cash into infrastructure. For me increasing taxation takes money out of my back pocket without causing a slow down in structural investment; ie one could see a situation with an interest rate decrease and a taxation increase thus improving the accelerator without increasing the multiplier.
0 Kudos
Not applicable
The government might be inefficient at spending money, but right now part of the inefficiency is because there are private sector people who should be working for the government and earning private sector salaries. These are the ministry posts below the political posts. The political posts may change, but the ministry posts stay fixed. SARS has already proven that this process works. Now it is time to do it with the rest of the public sector.
0 Kudos
Brazen
Super Contributor
Huaron, we spend money. We borrow money we can't easily pay back to buy nice stuff. I'm starting to think you may be (gasp) some kind of communist or something.
0 Kudos
CE
Super Contributor
0 Kudos
DST
Super Contributor
Ja I think we should wrap Huaron in some govt issue cling wrap. If Pretoria is seriously short of cash - why are they funding a high speed, gauge-incompatible, luxury train from Park station to Rosebank & the Airport? Presumably because they can't spend the arms deal money fast enough?
0 Kudos
Ditzy
Frequent Contributor
Exactly. And when you can't pay it back you default. Ask Argentina. Brazen, please can you pack some good weed from Gravy's stock and send it Huaron's way. That stuff he is smoking is affecting his brain.
0 Kudos
DST
Super Contributor
And Ditz will you ship Tito & Trev the Tantric Rates Guide, please.
0 Kudos
Not applicable
all that i Know is by 2010 i'll be out of her, its like buying expensive gifts to show off that u know u can't aford
0 Kudos
Brazen
Super Contributor
Out of her? Out of who? Are you having some kind of a wierd day hennie?
0 Kudos
Brazen
Super Contributor
I know DST mentioned tantric, but even so, 2010 would be pushing limits. Surely.
0 Kudos
Preston
Super Contributor
Me thinking i am one zarping year ahead of my time. Sorry for incorrect data. Thanks Simon
0 Kudos
Not applicable
stock market brazen stock market
0 Kudos