No change after elections

By Staff Writer
No change after elections

The national elections are due soon, but we can expect no change, at least in terms of economic policy.

The Guv, Tito Mboweni, of the South African Reserve Bank was speaking in Johannesburg recently and basically stated that the would be no economic policy change after the elections.

iAfrica carried this quote from him 'Whatever party wins the election we will have to confront the reality that there will be no room for manoeuvre'.

He was referring to the world wide economic problems which have considerably narrowed the scope of what can be done with the late capital model in a globalised world.

The Guv was not feeling optimistic, but then neither is George Soros. Soros famous for crashing out whole currencies, is not figuring on the crisis ending anytime soon.

The Guv said 'We're in this for another four to five years at least'.

The Guv and Uncle Trev, the Finance Minister, have a disagreement as to whether we will see a recession here in South Africa or not.

Mboweni would not be surprised if there was another quarter of negative growth which would signal a technical recession not quite the full blown depressions being predicted overseas but a period of contraction.

The Times published a story outlining their differences. What was also noted is the Minister is a politician, and well the elections are coming up and politicians are in the habit of saying what ever needs to be said in the run up to an election.

After all an election is nothing more than a five year job contract, so say whatever you need to say to get the contract and then relax safe in the fact that you can't lose your job regardless of what the reality after the election is and whether it matches what you said and predicted and promised before the election.

The new data that will call the truth will come out on the 26th of May.

Safely after the election.

Politics is after all, all about timing.

The Times article interviewed some economists who were in general on the side of Mboweni believing that things would still get worse before they got better.

Fin24 also commented on this story reporting Mboweni's comments about who ever gets in after the election that there would be no real room for them to move and that policy would essentially stay the same.

The fact is we are not totally decoupled from the global economy but the knock on effects are taking longer to hit us, so we will feel the pain, just less of it and for less long.

Now is the time to get a decent savings account and ride out the storm. Don't forget to register with Justmoney to get all of our updates.

 

Recent Articles

Featured 5 Ways to fireproof your house

It’s a fact that some homes are more prone to fire than others. A tragic example of this is the horrific 2017-Knysna wildfires in which people lost their lives and homes. How can you fireproof your house? Justmoney learnt five things you can do to improve safety and reduce the risk of damages.

 

Read more

Do you still need credit life cover when you have life cover?

When you take out credit, your creditors will require you to pay back what you owe no matter what your circumstances are. This is why they have credit life cover built into their loans to ensure you are still able to pay off your debt, should any unfortunate event occur. 

 

Read more

Are you ready to just tap and go when you pay?

The integration of the tap and go system has revolutionised the way consumers make payments. Instead of having to insert or swipe your card, you are now able to simply tap and have the payment registered almost instantaneously. But how safe is this?

Read more

Debt consolidation – Explained

Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.  

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Senior Citizens Property Rebate

Price: Available on request
When: Daily
Where: Nationwide

100% on disability cover premiums

Price: Available on request
When: Daily
Where: Nationwide

Cubana Breakfast Special

Price: R37
When: Daily
Where: Nationwide