SA flawed: will blow up, malfunction: hedgefund warns
22 March 2012 Leave a comment
South Africa – the world’s largest platinum & palladium producer — is set to ‘blow up’ and malfunction within 15 years: US hedgefund warns the country’s human capital is decaying…
London – Reuters: “South Africa is flawed and set to “blow up” within the next 15 years with more serious consequences than Libya, says Toscafund’s chief economist and partner Savvas Savouri – speaking for one of the UK’s most high-profile hedge funds.
It tips commodity-rich Russia and Australia to benefit.
Chief economist and partner Savvas Savouri, who has been researching South Africa’s economy, cites emigration of professional workers and what he sees as a “lack of centralised leadership” when it comes to dealing with problems such as the Aids epidemic.
“It’s socially, politically and demographically flawed. It will malfunction within 15 years. It will go the way of MENA (the Middle East and North Africa) but the blow-up will be much more serious,” Savouri told Reuters in an interview in early March 2012. “Professional whites and blacks are leaving in hordes – the human capital is decaying,” he said.
Savouri said a “malfunction” in South Africa, which is the world’s biggest producer of platinum and a major producer of palladium alongside Russia, would push commodity prices higher, benefiting rival commodity-rich countries. “Clearly Russia and Australia will win out. The surge in commodity prices will benefit them,” he said.
SA financial services industry lawless
Savouri, who is known for being outspoken in his predictions, also said in January that the SA financial services industry was practically “lawless”.
— I have confirmed the accuracy of the above-mentioned Reuter report with Mr Savouri. He wrote me in response to my enquiry: – “Dear Adriana – Thank you for your email. I was indeed quoted correctly and quite frankly take no pleasure in having to air serious structural concerns about South Africa’s economic future. It’s all so sad but true.Best wishes Sav – Savvas Savouri.”
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url links to South Africa’s collapse:
SA regime crackdown on news media, creating ‘new Stasi’ security structures:
Protection of Information Bill: (dubbed the ‘Secrecy Bill”)
Protection of Information Bill, written by two white SA Communist Party members
— The African National Congress has a two-thirds majority in 400-seat National Assembly – the bill passed by 229 votes to 107, with only two ANC-MPs choosing not to vote: http://www.bbc.co.uk/news/world-africa-15822105
The new amendments to the ANC’s ‘black-African job-rights bill’ now ELIMINATES all white people including disabled ones: ‘
— “The Broad-based Black Economic Empowerment (B-BBEE) Amendment Bill eliminates all white people including the disabled whites: ‘The definition of black people is now clear and aligned with the Constitution. There has been widespread criticism that white women were “benefitting disproportionately” from black economic empowerment with their black counterparts relegated to the bottom rung of the drive to redress societal inequalities. The Black Management Forum has been leading the calls for white women to be excluded after it came to light that they were the fastest rising category of people in terms of employment equity. White women found guilty of ‘fronting’ could face jail terms of up to 10 years…In terms of the proposed amendments, those involved in fronting could face jail terms of up to 10 years or be fined 2%-10% of annual turnover depending on the seriousness of the incident. In addition, contracts awarded to guilty companies could be cancelled.Further, the amended law requires the government and its agencies (and its tender companies) to comply. The auditor-general will audit and report on BEE compliance for government departments.Stock exchange-listed companies will be required to submit annual reports to the B-BBEE Commission, which the amendments propose. The commission’s function would include supervising adherence to the act.It would further receive and investigate complaints relating to B-BBEE, and maintain a registry of major empowerment transactions. “The proposals are a bold move and demonstrate government’s commitment to ensure successful implementation of BEE,” Tlhoaele said.
The Broad-based Black Economic Empowerment Amendment Bill closes many loopholes in the current BEE Act – a move that is long overdue.”
Nr 53 of 2003 of the ‘Broad-Based Black Economic Empowerment Act 2003’ barred the majority of often very highly-skilled white males from the entire SA job market.
March 2012: 1,3-million SA blacks earn more than average white salaries:
SA State already owns majority of land: