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SA cautioned against IMF bailout

‘If the country reaches a fiscal cliff it will have no choice but to seek an IMF loan.’

Trade unions and various civil society organisations have warned that South Africa’s economy will not survive if the country seeks a loan from the International Monetary Fund. This comes after finance minister Tito Mboweni told Parliamentary Finance Committees that if SA ends up in a debt trap, the country would have to seek a loan from the IMF. 

Professor Jannie Russouw of the Fiscal Cliff Study Group, says structural problems affecting the country’s economy should be addressed to avert going to the IMF. He talks to Classic Business Breakfast with Moneyweb about the implications of an IMF loan. 

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You can’t get out of debt by borrowing more, grrr.

This will be the best thing that could happen to South Africa in the last 24 years. Lessons will be learnt!
If you cannot govern yourselves properly, someone else will do it for you. That someone else asks questions before the purse strings are opened. “No cadres, A truckload full of Moet and two tons of caviar might be somewhat overboard.”

This cure will be as deadly as the disease.
We need to fix it ourselves – please ANC get with it or get out.
Your actions and policies are destroying the country.
Get rid of your racist bias and use all the resources available.

Tito is correct. We are too far gone. a lousy 400 000 taxpayers earn more than USD 70 k per year and pay the most personal tax. VAT is high, corporate tax with dividend tax globally not competitive so no room for the ANC gang to rob more money.

On the expenses side that Gordhan fellow thought that guarantees are the answer to SAA etc. when he was the Zupta FD. Its not -let SAA go and …implosion! So keep feeding all loss making rubbish SOEs otherwise all guarantees are called up. Couple this with a high fuel price, rising unemployment, crime, fraud on an unheard of scale,hostile dumb unions, broke mines, a bloated civil service and 17 m passengers on grants…then its simple -less money coming in than going out which means we have to go broke and to the IMF.

I’ve said it a few times.

South Africans have never experienced the poverty that will befall them under the ANC.

The ignorance is staggering.

Pity for them that eating dust and gravel will not keep them alive.

The IMF are growth specialists. Just imagine the miracles they could perform in curatorship of SAA or SABC? Or even better, Eskom!

It’s probably IMF bailout or more ABC… TAKE YOUR PICK.

I do believe that 3 years ago, RW Johnson predicted this in his book “How long will South Africa survive?”

It’s not exactly like that brainless turd who was president kept us guessing. (Well at least not those of us who don’t vote ANC.)

The IMF intervention in the far east from 1997 with measures of austerity, discipline and commitment turned Thailand, South Korea and Indonesia around. Today, these countries are back with growth rates of over 5%

In recent times Iceland, Ireland and Greece have had IMF intervention all have rebounded, albeit Greece slower than the other Euro countries

Seems sensible on the face of it but my guess is that the crooked and incompetent scum ANC Big Men will try and avoid it at all costs. For several reasons; it will show up their incompetence and slow down the flow of loot into their overseas bank accounts and old misdemeanours may well pop up. Their pride will be properly dented as they will be shown up as incompetent and have to listen to an overseas baas, who, unlike their Chinese and Indian baas’s doesn’t pay them any backhanders. Finally it (the IMF) will take away the ANC’s grip on patronage and cadre deployment, fictitious grants and the like, probably insisting on a reduction in the civil service number of deadbeats, clearing out the rot at the parastatals, downgrade the pork barrel skimming of BEE etc.

Eish, too much of paining.

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