Saturday, February 19, 2011

Heads Up for Platinum & Gold Investors - South Africa becoming a failed state

From AfricanCrisis:
Date Posted: Friday 18-Feb-2011

I heard from a friend of mine that recently in parliament or wherever, a staggering figure came to light. It had to do with the collapsing infrastructure of this country – the electricity, etc.

Apparently some officials now say that to fix the basic infrastructure of this country (e.g. electricity, roads, etc) but excluding things like hospitals, etc – will cost… wait for it… a staggering R1 trillion! That is the annual Govt budget of South Africa for 2 years.

You have to ask yourself how it was that prior to the ANC, the annual Govt budget worked pretty well and was able to not only maintain but to enhance all the country’s infrastructure. Under ANC rule of 17 years, while zapping business and private tax payers with levels of taxation unheard of in this country’s history, the ANC still manages to destroy the infrastructure. The ANC’s annual Govt revenues are more than twice what the white Apartheid Govt of this country had. Yet, they built this country’s infrastructure from NOTHING. That is really hard to do – to build from scratch. All the ANC had to do was to maintain the infrastructure like roads, railways, electricity, water, etc. That is normally much cheaper to do. But the ANC actually could not even do that and stuffed it up COMPLETELY.

Now, 17 years later, that infrastructure is so damaged that we literally won’t be able to spend enough money to ever catch up on it. Where will SA get R1 trillion now when the current Govt budget is already being used up? The answer can only be that we will never be able to play catch up. Its that simple.

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