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AGRICULTURE

CREDIT RATINGS BECOME IRRELEVANT- South Africa

Fanie Brink, Independent Agricultural Economist

"The rating of the country's credit rating by Moody's Investors Service, Standard & Poor's Global Ratings (S&P) and Fitch Ratings has already become totally irrelevant because they apparently have no understanding that the terrible condition of the economy and the state's finances is the direct consequences for the destructive ideology of the ANC government that will not change as long as the African National Congress (ANC) is in power," said Fanie Brink, an independent agricultural economist.

He says the increased interest costs that will be caused by a further downgrade are not the problem, but rather the excessive misappropriation of taxpayers' money, rising budget deficits and government debt that will never decrease and will push the economy finally over the abyss within the next 2 to 3 years.

The actual facts clearly indicate that the "warnings of a complete collapse of the state must be taken very seriously" and that the credit rating agencies must realise "that a collapse is not only possible, but that the country is heading straight for it," according to RW Johnson, an independent political commentator.

The credit rating agencies should much rather have to persuade the ANC government to abandon its destructive ideology of socialism and communism and make a total return to a capitalist economic system. Their own country, the USA, has for many decades been the bastion of capitalism which today is the only system that can create economic growth worldwide from the supply and demand side of the economy driven by the profit motive.

LEES MEER - AFRIKAANSE - KREDIETGRADERINGS RAAK IRRELEVANT- Suid Afrika

Despite the fact that most central banks, such as the Reserve Bank, and many economists still cling to the total fallacy today that economic growth can be stimulated by lower interest rates which is the single biggest fallacy in total economic science.

Why would the credit providers want to see South Africa continue to struggle with a government that is economically totally illiterate and will never realise what the devastating consequences of their policies will be for our descendants?

The ANC government's policy of socialism imposed by the doctrine of communism on the economy and the country should be rejected by the credit rating agencies if they really want to mean anything to the country, otherwise their ratings will be further a waste of time and make not make difference.

The government and its social partners, such as the labour unions and the organised business sector's "new economic recovery plan" aimed at "repairing the damage caused by the Covid19 virus" is purely a screen behind which the government conveniently hides to conceal the destruction that it has already inflicted on the economy long before the pandemic has broken out.

Former British Prime Minister Margaret Thatcher said years ago: "The problem with socialism is the fact that it eventually runs out of other people's money." Is this not exactly what has been happening in South Africa in recent years and that it is very clear that this trend will not be stopped? The great statesman, Winston Churchill, said the following about socialism: "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its only inherent virtue is the equal sharing of misery."

 


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