SA falls deeper into junk status

As expected.. but it's fascinating watching rating agencies vs developed nations as they plunge deeper in debt more often in excess of 100% GDP in debt.

I dunno.. I don't disagree with SA rating but i have to question their credibility given Trump, likely split senate with huge deficit and likely a horrid year coming for the US with commercial real estate and student loans making the financial of 2008 look small. On the UK end of things, it looks tough there too..

Hopefully SA is better positioned this go round to take advantage of the coming commodity boom.
 
krycor said:
As expected.. but it's fascinating watching rating agencies vs developed nations as they plunge deeper in debt more often in excess of 100% GDP in debt.

I dunno.. I don't disagree with SA rating but i have to question their credibility given Trump, likely split senate with huge deficit and likely a horrid year coming for the US with commercial real estate and student loans making the financial of 2008 look small. On the UK end of things, it looks tough there too..

Hopefully SA is better positioned this go round to take advantage of the coming commodity boom.
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If you're issuing bonds at 0.3% (or sometimes even negative yield), you aren't going to be defaulting anytime soon. SA at 9% is a different story. Hence why 1st world countries maintain investment grade ratings and we do not.
 
krycor said:
Hopefully SA is better positioned this go round to take advantage of the coming commodity boom.
Click to expand...

Better positioned? Meaning less corrupt and wasteful. Extremely unlikely. Even more unlikely since millions of additional brain-damaged kids are reaching adulthood each year as a result of malnourishment. This is the future that is expected to vote to keep the anc in check.

As early as the mid 1960's, concepts on how malnutrition experienced in early childhood could affect brain development have been investigat- ed. Animal studies have shown that malnutrition can cause decrease in brain volume, number of neurons, synapses, dendrites and reactive zones.
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You should ask your socialist leaders why they steal so many billions while millions of children go hungry in SA each day.

Oh right we have done so. These are the types that literally laugh in parliament when questioned about looting. Sorry for your hopes my comrade. Looks like you are out of luck.
 
krycor said:
As expected.. but it's fascinating watching rating agencies vs developed nations as they plunge deeper in debt more often in excess of 100% GDP in debt.

I dunno.. I don't disagree with SA rating but i have to question their credibility given Trump, likely split senate with huge deficit and likely a horrid year coming for the US with commercial real estate and student loans making the financial of 2008 look small. On the UK end of things, it looks tough there too..

Hopefully SA is better positioned this go round to take advantage of the coming commodity boom.
Click to expand...
You're looking at the debt like it actually matters, it doesn't. It's your ability to pay back that does, and someone like the US could easily raise taxes by a little bit and quickly pay off their debt:
1606220278051.png
www.thebalance.com

Interest on the National Debt and How It Affects You

The interest on the national debt is how much the federal government pays on the outstanding public debt. Learn how it's calculated and what it means for you.
www.thebalance.com www.thebalance.com
Less than 10% of their budget is set to pay back cost + interest, compare that to South Africa that is already at 21% before the payment holiday for some of the larger covid loans kicks in.
 
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