South Africa's ANC says agreed to expand central bank mandate

BBSA

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#1
South Africa's governing African National Congress Secretary General, Ace Magashule, said on Tuesday that a meeting of the party's executive had agreed to expand the mandate of the central bank.

The rand extended losses after Magashule's comments, as investors are nervous about any changes that could harm the independence of the South African Reserve Bank.

"The National Executive Committee lekgotla (meeting) agreed to expand the mandate of the South African Reserve Bank just beyond price stability, to include growth and employment," Magashule told a news conference in Johannesburg.
Magashule added that the ANC's executive wanted the government to constitute a task team to explore quantitative easing measures for developmental purposes.

https://mobile.reuters.com/article/amp/af/idAFKCN1T51OA-OZABS
 

John Tempus

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#6
Central Bank would equal Complete destruction.

Anyone with any funds in any of the private banks right now should liquidate their assets before this central bank kicks in. The ZAR will be inflated so much due to super printing presses working overtime because printing more money will suddenly solve South Africa's poor issues.

Realize this now and let it sink in. The people on top making decisions for those at the bottom have no clue about monetary policies or how money actually work. The more money there is the better for everyone(themself) and that is as far as their IQ reach.

Quantitive easing does not work, never worked. It is a complicated illusion of economics and due to this the USA is in its current debt trap.

Quantitive easing essentially is the government putting a mask on and while wearing it you feel sexy and eventually when they take it off they think they will be one sexy mfker however the day they take it off they are way uglier than when they put it on.

Quantitive Easing and central bank will completely annihilate the ZAR price point with hyper inflation. If this happens refer back to this comment, it takes no genius to realize that this will be the ultimate outcome.
 
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John Tempus

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#8
So the Reserve Bank buys government bonds to help government raise money? And this increases inflation and devalues the rand?
Thats not actually how it works.

Think of it in the most basic form. Think of every country and their currency as an entity on a trading platform.

ZAR/USD
ZAR/GBP
ZAR/EUR

etc. etc.

If a government make monetary policies/decisions that international investors see as beneficial to them they would essentially sell their USD/GBP/EUR for ZAR which would strengthen the ZAR value ie. the daily exchange rate fluctuations.

Now aside from that, each year our government determine with their voodoo magic at this point what the new inflation rate would be for the coming year. This inflation rate is then pegged against how much the circulating ZAR currency would increase so if all is equal and they say there is 5% inflation rate that would mean the ZAR circulating currency would be increased by 5%.

This inflation rate is then also used to price in the cost of products so you would never see prices on anything being sold in SA at stores decrease below the inflation rate for the year else they would quite literally sell at a loss because with 5% inflation every Rand you have from that moment on just lost 5% in value but in a normal society this is not the end all if salaries increased at or above inflation rate however this rarely happens for everyone thus a big reason why everyone is slowly in fact getting poorer without you even having any choice in the matter.

This is also a big reason why if you have longterm savings that if your interest rate per year is less than inflation you are losing money year after year even though the number seems to be going up. Just an illusion.

Think of inflation as the ultimately Casino house edge where the government holds all the cards.
 

krycor

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#9
Magashule added that the ANC's executive wanted the government to constitute a task team to explore quantitative easing measures for developmental purposes.
And here comes crap. The US & EU (they do the same with lesser debt at 81% of GDP) may have deluded themselves but remember EU is the currency of a continent & trading block and US is the reserve .. and even the US has serious issues coming in the next handful years starting later this year when they realise they have to bleed.

Yah.. maybe its time to just take any job i get outside SA.
 

DreamKing

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9,065
#11
later we can use the mandela head bank notes as toilet paper .....

viva anc ..... viva ......
 

Thorium

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Dec 13, 2015
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145
#19
We going to experience high inflation if QE gets off the ground in any serious manner here.

I remember a country just north of here trying to do just that...
High inflation is great, time to splurge on that imported supercar with a 75% balloon payment.
 
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