Gee vir ons `n mielieprys van R2500/ton en `n koringprys van R3500/ton dan produseer die Suid Afrikaanse boere kos vir 150 miljoen mense. Huidiglik word ons in toom gehou deur pryse wat baie laag daal as ons in oor produksie gaan soos nou die geval is met mielies. Goedkoop laegraad koring word ingevoer sonder invoer tariewe wat ons beskerm. Teen R2140 vir koring in Randfontein gelewer kan jy nie koring winsgewend produseer nie. Behalwe vir die invoer tariewe wat skort is daar ook `n vervoerdifferensiaal aftrekking van R400 wat Kaapse boere moet betaal vir koring wat in Kaapstad gebruik word. Hier in die Noordkaap is die vervoerdif R303 en die koring word in Hennenman of Kroonstad gemaal, nie in Randfontein nie. Ekt gedog Mulder sal inspraak doen vir die boere by Dedt Landbou maar hy is doodstil. Gee vir ons pryse dan produseer ons kos!
exactly manufactoring benefits (not with standing weaker local demand and very weak international demand) .. point is why is nobody mentioning this area, all the talk is mines .. the mines have been in decline for 3 decades, we need to move on or we're history .. as for the poloticians, nobody actually listens or cares about them .. remember when zuma was going to president, the world woudl end .. but it is still windy in CT today ..
Looks as though risk aversion is taking control for us. The maximum effect of an interest rate change on manufacturing output is estimated to take up to about one year. And the maximum impact of a change in interest rates on consumer price inflation takes up to about two years. Fail to plan, plan to fail - like with electrical supply?
In the modern area of largely unrestricted flows in capital and goods, the external value of its currency stands pivotal to a country's ability to progress and prosper in that environment. Any responsible govt. should accordingly have some idea of the "sweet spot range" in which its currency crosses should trade, particularly relative to its major trading partners. Allowing extended periods of currency overvaluation stimulated by relative interest rate differentials and exploited by the carry trade is simply negligent and as damaging as excessive volatility. Support for taxes on speculative capital flows are in fact gathering support amongst developing nations and even the IMF has joined Cosatu in their call for some degree of intervention. Intervention in the SA context will mean that the SARB will enter the market and buy foreign currency, US$, Euros, Yen etc. with Rands. This will weaken the currency and simultaneously bolster foreign exchange reserves. While this action would increase the money supply, this is not problematic given the prevailing liquidity conditions in the domestic market. The damage inflicted on livelihoods and the productive sector by a currency valued according to financial markets dynamics and not reflecting domestic operational realities is surely a recipe for persistent underperformance. Besides, a weaker currency also protects and relieves pressure on industry whether they produce goods intended for export or compete with imports in the local market, be it mines, manufacturing, agriculture etc. While the inertia lingers, layoffs continue and businesses are going to the wall at the cost of jobs across the economy (1m and counting) while permanently sacrificing productive capacity. The mass of unskilled poor in SA, however is a red herring in this argument.they will remain with us at any exchange rate.and even more people will fall into this category in 5 and 10 years' time thanks to the functionally illiterates produced by the SA education dept. Finally, to continually dismiss the importance of leadership is simply disingenuous and ignores the obvious vacuums that have opened up across our body politic. Leadership comes from the front and its absence in policy directives is painfully evident in the multitude of dysfunctional outcomes around us. So, can SBK operate without a CEO?
I never mentioned leadership ?? anyways I ahve two words for you .. chris stals .. in the 90's he tried to defend the rand and spent US$26billion and still lost, speculaters had a one way bet and ripped him ..
Above I stated that trying to defend one's currency when it is weak by selling foreign currency you don't have a la Stals and Soros vs. the Bank of England and then borrowing it (shorting in essence) is pure lunacy. However, to lean against a too strong exchange rate by buying foreign currency via the selling of Rands makes perfect sense and works in moderate interventions ie. there is also a cost involved, but the larger trade-off is the damage inflicted on the domestic productive base and the human cost.
We may now have reached a stage where a weaker currency is desirable, however I have fond memories of a strong currency.Went to Argentina for the World Cup in 1972, barely turned 20 and earning R250 a month, exchange rate R1=$1.20, felt like a millionaire, now a millionaire, (who isn't in this country) and went to Italy on my annual holiday and felt a pauper. In 1969 my late Dad, bought an apartment on the Rivera for R12,500 now valued at 375,000 Euros. Mickey Mouse money??? Not for me. Our biggest problem, is our work ethic, and that applies to all the races, bottom line we are just not productive enough.Most of us don't even know how to spell two four letter words, WORK & SAVE.