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Thursday, 13 March 2008

Business confidence will increase if South Africa revokes the stable measuring unit assumption.

BusinessDay reports that business confidence is the lowest in seven years.

Business confidence in South Africa will increase considerably if accountants and the accounting faculties of SA universities get together to develop a plan to revoke the stable measuring unit assumption in the South African economy.

Businesses and workers will then know that as soon as the accountants in South Africa revoke the stable measuring unit assumption no more real value will be destroyed in the real value of constant real value non-monetary items never updated in the SA economy.

Salaries, capital, taxes, income and expenses will be updated monthly at the new Consumer Price Index value.

The South African non-monetary economy will operate at 0% inflation since all constant real value non-monetary items will be updated.

Cash inflation will still destroy the value of the Rand and all other monetary items.

Hold no cash and monetary items and you can avoid the destruction of real value in monetary items.

Revoking the stable measuring unit assumption will make the destruction of real value in the non-monetary economy impossible.

Business confidence will surge in SA when everyone knows that what is happening in Zimbabwe now will forever be impossible in South Africa as long as the stable measuring unit assumption is revoked.

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