Got to say, I love the American perspective on this. And by American, I mean the naysayers… the noisy ones on social media. A great many of them think all this push for renewable energy is just government forcing people to do things they don’t want to and to channel money to their partners who already invested in it…
Meanwhile in SA… we’re having a world of trouble motivating government to actually GO that way…
I propose we simply swap countries. Then everyone is happy.
Or swop governments systems (and therefore people) - I would rather live in SA vs USA 
I actually like our system more. I like the fact that we have 50 political parties rather than just 2. I know it is a bit chaotic, but it seems like the better alternative. I also like the proportional representation.
New idea: I’d like a salad bar so I can choose what I want!
(Don’t we all? 
).
Nobody noticed this?
Groetnis
By Kopano Gumbi (Oct 2022)
JOHANNESBURG, Oct 25 (Reuters) - South Africa’s finance minister is expected to announce a plan to take on part of power utility Eskom’s mammoth debt in a mid-term budget on Wednesday, although analysts say the legally complex transfer will take time to execute.
State-owned Eskom has been mired in financial crisis for years and has a roughly 400 billion rand ($21.69 billion) in debt it cannot afford to service.
It has required recurring government bailouts that have placed public finances under huge strain, with officials grappling with different ways to solve the problem.
Economists say a large portion of Eskom’s debt needs to be absorbed by the state to make it financially stable.
“Anything less than 150 billion rand would be deemed insufficient,” said Isaah Mhlanga, chief economist at Alexforbes AFHJ.J.
Groetnis
The state is the sole stakeholder. Personally this is not too controversial to me. The bigger risk is that it becomes a trend. You know, like a cheating spouse. Once you step over that line once, a fart might as well be a … you know what.
The other question is whether the state is in a position to service that debt. It’s about 5% of GDP… which is not insignificant. A study by the World Bank suggests that if you go over 77%, it hurts your economy. We’re at at 69.9%…
(Of course the united states is at 137%, because the rules don’t apply to them).
The thinking is flawed here. It’s not State debt, the Tax payer is holding/carrying the debt.
Only 2.9Million people pay Tax as PIT.
But that is sort of the same thing, is it not? To use Dawie Roodt’s definition of “a state”, that’s when a group of people get together and say, these are our borders, and these are the rules by which we live. Bingo, you are a state. In other words, the state IS the people.
The question remains whether the state – in other words us – can afford another 5% of GDP in debt. The question is also whether we can afford not to do it. For the average citizen, if the question is between eating today, or eating next week… most people will pick eating today.
Man, it’s complicated. Lies, damn lies and statistics. Paper and ink is patient…
Well it’s Complicated much more. If, and by that I mean in a representative democracy, you are represented by Gov, yes.
Buckle up buttercup, this one is going to get really incredulous… I warned ya.
Eskom the worst ever seen
Groetnis
As we said to each other here, you can use common sense and logic to fix Eskom.
We have neither in SA under the current Gov.
So we can debate taxes, and democracy till we are blue in the face, it will solve naught. A futile debate if you want.
Unless “Radical Economic Transformation” (RET) takes place in SA, as that article says is required, it is going to get much worse.
The RET I’m referring to is the one based on common sense and fiscal discipline, and responsible actions are taken. We don’t have that RET in SA.
Differently put:
Oh agreed, the Dawie Roodt definition is a very “cliff’s notes” version, from this video about the budget speech three years ago. Spooled up to about the 5:30 mark. Countries don’t exist. It is merely an agreement between people. And it changes all the time. In 1910, 4 countries merged and became the place we call “South Africa” today. A few years ago Sudan split and became two countries.
The other half of being a “state” is international recognition. Back in 1948, Britain pulled out of an area known (then) as British Palestine. The next day, a new nation declared themselves a state (Israel), much to the unhappiness of many around them. Britain immediately recognised it, and America did so the next day. Done. You get enough people to agree, and enough people to recognise that agreement, and you are a state.
This rather flimsy state of affairs is also where it falls apart. Soon enough, you find that the guys you ceded your rights to, and whom you are funding to protect those rights… are in it for themselves. And then things break down… as we are seeing now with the Cape Independence Movement.
If these guys manage to get a referendum arranged… I will probably vote yes. I mean, I have a heap of concerns about the practicality, about ending up in a Brexitesque deadlock for years, about having to buy out certain items… but a certain amount of “sticking it to the man” remains, and I’d like to see them squirm!
We’ve got bigger drama waiting to pounce:
A Crippling Shortage Of Diesel Fuel Threatens To Devastate Western Economies
If we suddenly had no more diesel fuel, virtually all of our trains, trucks and ships would stop running. Needless to say, just about everything that stocks our store shelves comes to us via trains, trucks and ships. So the fact that there is not enough diesel fuel to go around is a really big deal.
Globally, supplies of diesel fuel have fallen to the lowest level that we have seen since 1982…
“The demand for diesel tends to rise as you get close to the winter, because the molecule that makes up diesel is very similar to the molecule that you use for heating homes in the U.S., for winter fuels in Europe,” Tom Kloza, dean of U.S. oil analysts at Oil Price Information Service (OPIS), told Newsweek.
The issue is global, said Kloza, adding that diesel inventories around the world are the lowest as they’ve been since 1982, "and we’ve added about 3.4 billion people in that time."
Faaark…
(Edit) Eskom’s ~500BN (Rand) on balance sheet debt, ~128BN off balance sheet debt, and 1,072BN in unavoidable capital requirements over the next 5 years, represents a staggering 76% of South Africa’s total debt.
Bugger … we knew it was bad, but what comes out now, it is even worse than anyone thought, yes?
Well many people (or maybe just some) cannot do math properly. 2+2+2+3 me thinks… Or put differently, Esom says Rx in debt, Treasury say Ry in debt etc. Nobody wants to share the truth, because reasons, or because voters really. When people have access to the truth, most can easily make up their minds. The CancER and the patronage network depends on keeping people in the dark, pun intended.
When you can legislate and suppress data, you are in control. In control gives you a means to skim the money on everything and you don’t run out of money to buy off people and business. Lets use the press as an example. The money is spent advertising so newspapers are dependent on that to survive. So don’t print the truth or we don’t sent you one, complicit corrupt relationship really.
The less than 3 million Safes and business pay for all this, and we are all robbed blind… You just need to do a little math.
Groetnis
This rings a huge bell for me.
Hence me a wee bit miffed at Big Business not taking a firm stance against it all, them being the most affected when the power is off.
Also, that “whities” don’t understand what “Eendrag Maak Mag” means, can mean.
Mmmm, make me wonder, did international pressures maybe “suggest” the moving of Eskom’s debt to the government’s balance sheet?
Or a move to be able to “invest more” in SA electricity woes?
At times I sit and think back to all the international support the ANC had way back, and what they did with that “hands-on” support then. Then I sit in wonder how “everyone internationally left the building”, watching how SA was “driven into the ground”, suddenly it being “hands-off”.
Yes yes, I know it is not that simple, but still, the failed countries all over the world where “western nations” have gotten involved, then “dropped it”, are quite interesting to note at times, if one is bored.
Maybe it is a good move, to have “big business” (read countries) invest in SA’s woes. Let money drive the train going forward, as what is is not working.
Sug …
De Ruyter, become the grim reaper … you are the grim reaper … NIKE IT!
Now we are talking, plan for the worst, hope for the best.
