Contingency for worst case SA

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mogiletsiZA

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Let's first define the worst case scenario: In 2019:,populism prevails and mixture of socialism and marxism is adopted fully by the leading government in efforts to attain socio-economic equality for the people. The result: the rand value plummets and inflation begins to rise.

What are some of the contingency plans, if any, that you have set up in order to protect the rand-denominated wealth that you already have?

The answers should shed light on some of the sentiment regarding SA in general. I feat that there may be a general attitude of indifference particularly from young people regarding the future of SA. This is not to cause hysteria or to spread pessimism, just an open discussion.
 
Moved a couple of bar to a Swiss bank account. Unfortunately the Rand started taking a beating soon after and I didn't get around to doing the other things I wanted such as bonding my house and taking those funds out as well.
 
Pretty much to move all Liquid Assets to a mixture of offshore ETF's, Money Market accounts, Unit Trust exposures and limit ZAR holdings as much as possible.
At least that would protect any value of current ZAR holdings against a big drop in value. I think the overall feeling of the local educated populace is that idiocracy is not just a movie in Hollywood anymore. The media isn't helping the cause much as their emotional hype-biased reporting is just spreading negativity. That being said, political parties across the board have no real confidence from any logical investor so the overall SA economic outlook will stay negative until a strong stance is taken against corruption by true accountability in the form of economic recompense by those found guilty in state capture. TL;DR - take your holdings out of ZAR and spread across the developed markets.
 
Messugga said:
Moved a couple of bar to a Swiss bank account. Unfortunately the Rand started taking a beating soon after and I didn't get around to doing the other things I wanted such as bonding my house and taking those funds out as well.
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Interesting - Swiss Francs, I assume? - relatively stable currency and mature economy
 
Mista_Mobsta said:
Pretty much to move all Liquid Assets to a mixture of offshore ETF's, Money Market accounts, Unit Trust exposures and limit ZAR holdings as much as possible.
At least that would protect any value of current ZAR holdings against a big drop in value. I think the overall feeling of the local educated populace is that idiocracy is not just a movie in Hollywood anymore. The media isn't helping the cause much as their emotional hype-biased reporting is just spreading negativity. That being said, political parties across the board have no real confidence from any logical investor so the overall SA economic outlook will stay negative until a strong stance is taken against corruption by true accountability in the form of economic recompense by those found guilty in state capture. TL;DR - take your holdings out of ZAR and spread across the developed markets.
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I agree with you. There doesn't seem to be much in the offering in the political party landscape. More extreme ones are forming by the month!

Spreading ZAR across developed markets makes sense. There is a bit of weariness with the US though as that Bull run has lasted ages!
 
Houses are for sale. talking to family in US to see if they can assist in a move there. I dont want to go back to europe...

Already have off shore investments. going to start looking at moving my local investments out as well.

On the off shoot, just an idea before the attitude before action committee chime in again, Go fullout lawless haha. lie cheat and steal . Cant beat em , join em. thoughts?
 
RustyNail said:
Houses are for sale. talking to family in US to see if they can assist in a move there. I dont want to go back to europe...

Already have off shore investments. going to start looking at moving my local investments out as well.

On the off shoot, just an idea before the attitude before action committee chime in again, Go fullout lawless haha. lie cheat and steal . Cant beat em , join em. thoughts?
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I see you already chose the contingency plan, you are well on your way out!

"Can't beat em, join em?" - this is an ethical issue. If ethics are compromised then all is last, I believe. The "gains" are shortlived
 
mogiletsiZA said:
I see you already chose the contingency plan, you are well on your way out!

"Can't beat em, join em?" - this is an ethical issue. If ethics are compromised then all is last, I believe. The "gains" are shortlived
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Agreed on the ethics, my thought though, if you find yourself unable to feed your family and yourself, lights are off. water is off. your rand value means nothing due to worthless economy. Do you sit and starve or physically fight to stay alive? Hopefully that never happens, but it is a possibility in this great place. There are murmers already from people in corporates that the salary and 8 hours a day simply isnt providing a livable life anymore. How long until people just stop doing things by the book..

did this make sense?
 
RustyNail said:
Agreed on the ethics, my thought though, if you find yourself unable to feed your family and yourself, lights are off. water is off. your rand value means nothing due to worthless economy. Do you sit and starve or physically fight to stay alive? Hopefully that never happens, but it is a possibility in this great place. There are murmers already from people in corporates that the salary and 8 hours a day simply isnt providing a livable life anymore. How long until people just stop doing things by the book..

did this make sense?
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Makes perfect sense. Desperation can and will lead people to extremes - a state of anarchy.
 
mogiletsiZA said:
Makes perfect sense. Desperation can and will lead people to extremes - a state of anarchy.
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Our country is unfortunately already in a state of semi-anarchy. Looking at the brazen criminal activities on a daily basis across SA, lawlessness of certain drivers across the country, violent protests/riots on a weekly basis, criminal terrorism burning down power substations and stealing cables, young students rioting for free education and being told they are "fighting for the freedom of SA" etc.
Not desperation but a country full of self-entitled young people that have to pride or respect for their country(men) anymore.
 
Mista_Mobsta said:
Our country is unfortunately already in a state of semi-anarchy. Looking at the brazen criminal activities on a daily basis across SA, lawlessness of certain drivers across the country, violent protests/riots on a weekly basis, criminal terrorism burning down power substations and stealing cables, young students rioting for free education and being told they are "fighting for the freedom of SA" etc.
Not desperation but a country full of self-entitled young people that have to pride or respect for their country(men) anymore.
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For sure, pride and respect do not exist. The idea of South African patriotism is a joke, it is all about race. Of course, our history forces race to be a key point but it is often wrongly identified as the cause of a lot of problems in this country. The whole dialogue seems to be facts versus feelings, where feelings are subjective and possessed solely by disadvantaged How then do you begin to solve problems without prejudice.
 
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I'm ****ed, whatever I have in currency is in rands, house who knows what value it will keep, thinking of planting chickens, that way I can sell chickens and grow eggs!!
 
I think the best case if the economy does tank is find a way to earn money in dollars while still living in SA
 
lived666 said:
I'm ****ed, whatever I have in currency is in rands, house who knows what value it will keep, thinking of planting chickens, that way I can sell chickens and grow eggs!!
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Chicken is a new trendy veggie like kale to be planted? :laugh:
 
mogiletsiZA said:
I feat that there may be a general attitude of indifference particularly from young people regarding the future of SA
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You really have this wrong, most young people that I know are taking this very seriously indeed, and have either emigrated, or are in the process of doing so !
 
Jola said:
You really have this wrong, most young people that I know are taking this very seriously indeed, and have either emigrated, or are in the process of doing so !
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You obviously mix with some well-off young people who can afford to just up and go so easily, In addition, not everybody has a foreign Visa. My point is, it was my feeling based on the social circles I'm involved with, You have given insight into your social groups but that may note reflect the greater SA as a whole.
 
mogiletsiZA said:
For sure, pride and respect do not exist. The idea of South African patriotism is a joke, it is all about race. Of course, our history forces race to be a key point but it is often wrongly identified as the cause of a lot of problems in this country. The whole dialogue seems to be facts versus feelings, where feelings are subjective and possessed solely by advantaged How then do you begin to solve problems without prejudice.
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What does that mean?

(Not being nasty, I just don't understand)
 
I have a Swiss banking account with enough money to last me approx. 3 month living in Switzerland.
I do not have any fixed assets, I have some liquid cash that if worst comes to worst, I have a Schengen visa, family that live in Indonesia, who have offered me work too.
 
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