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Saturday, 26 April 2008

SA Chartered Accountants´s silly assumption

All underlying value systems determine the value of the Rand. It is not so easy to fix all of them at the same time.

Sometimes we do not even know how our actions are effecting the economy.

Like Chartered Accountants killing the real economy with their silly assumption that the Rand is perfectly stable (no inflation - can you believe that!!) ONLY for the purpose of accounting/valuing constant real value items like retained income. They destroy maybe hundreds of billions of Rand in retained income real value each and every year. AND, they do not even know they are doing it. Hardly anyone knows.

Stopping their silly assumption that the Rand is perfectly stable (no inflation) ONLY for that one purpose will pump maybe hundreds of billions of Rand into the SA economy - by maintaing the real value of retained income and other constant items instead of destroying them. It is simple maths.