Monday, 31 August 2009

White elephant at fancy dress party

Inflation is undoubtedly SA´s public enemy No 1.

Luckily we have had Tito Mboweni (Julius, Mboweni is BLACK, please don’t forget that!!) over the last 10 years reducing the destruction of the real value of the Rand and all other monetary items to an annual average of 6% in the SA monetary economy.

That is half the 12% annual average during the last 12 years of WHITE apartheid rule.

With a 1% drop in inflation being equal to maintaining R20 billion in the real value of the Rand PER ANNUM it means that Tito maintained on average AN ADDITIONAL R120 billion PER ANNUM in the SA monetary economy. This will carry on into the future as long as average annual inflation stays at 6% or below.

This will have a permanent effect on the SA economy as a whole.

Let’s hope Gill Marcus can get it down another 3% to the bottom level of the SARB´s inflation targeting range. (Julius, not because she is WHITE, but because that would be very good for everyone in South Africa. Tito got it down to 6% now we should go lower. We should expect that from whoever is the next Governor of the SARB, whether this person is blue, orange or purple.)

That would maintain another R60 billion PER ANNUM in the SA monetary economy for as long as inflation can be maintained below 3% per annum.

Good luck to Gill Marcus.

Every year she achieves that, we can have a fancy dress party and go dressed/coloured in gold, platinum and sterling silver. Julius Malema has a standing invitation. He can come as a white elephant.

Kindest regards,

Nicolaas Smith