Who Owns the South African Economy?

Published on 25th July 2016

I would like to address myself to Africans in general the students of South Africa who protested that fees must fall, homeless fellow countrymen and women who are squatting in shacks and those living in low cost RDP houses and the unemployed in particular. Do you know why you will never receive free education? Do you know why they could not build you a decent house? Do you know why you are homeless? Do you know why you are unemployed?

The student's struggle for free education was hijacked by students and student bodies allied to the ruling ANC and the media made one of the ANC students who wore an ANC head scarf the face of the #feesmustfall campaign.

The Republic of South Africa made an application to be given Notes to the tune of U.S. $1,250,000,000 which bear interest at the rate of 4.875% per year, accruing from April 14, 2016. Interest on the Notes is payable on April 14 and October 14 of each year, commencing October 14, 2016. The Notes are not redeemable prior to maturity. The Notes are due by 2026.

A Note is a debt security obligation repayment of a loan at a set interest rate in a defined time period. There are three types of Notes. They are:

  1. Unsecured Notes
  2. Promissory Notes
  3. Convertible Notes.

The current US dollar-rand exchange rate is 1:14.which translates to 17,500,000,000 in rand terms, if my computing is correct.

We have seen that 4.875% of 1,250,000,000 = 60 937 500 in US dollar terms. If we multiply that figure by 14, the result is 853, 125, 000. In this year's budget speech Minister of Finance Pravin Gordhan said that  R16bn was allocated to higher education over the next three years, funded through reprioritisation of expenditure plans. What does this mean when they service their debt annually to the tune of R853, 125, 000? I hope the students whose parents can’t afford South Africa’s exorbitant fees now understand why they will never receive free education as long as their government is a slave.

What I learned over the years about the West's banking and accounting system is that if a country or institution takes a loan at an interest of 5%, after twenty years, that country or institution would owe the same amount it borrowed. Do we agree that if one rounds off 4.875%, the nearest figure is 5%? Let us do some computing. 5% of 1, 250, 000, 000 is 62, 500, 000. If we multiply 62, 500, 000 by 20, we get 1, 250, 000, 000. Is that not right? The information about the banks and the West's elite is contained in my unpublished manuscript Africa's Political and Economic Destiny and the International Money Power which I wrote around 1993 - 1994.

South Africa has been turned into a slave by the international money system. I wonder how many countries on the continent of Africa are modern slaves like the government of South Africa. These lending institutions provide loans with strings attached. They dictate the social and economic policies of borrowing countries. They also have influence on the fiscal and financial policies of borrowing countries; issues such as taxation, price control and the rate of exchange of the borrowing country’s currency. They also use the grading system to which they subject the countries to which they lend.  

By Sam Ditshego 


http://www.harakati.co.za/ @iamsamditshego

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