BRACE YOURSELF FOR THE S.A FINANCIAL CRASH

Brace yourself, we will crash. South Africa is in big trouble, corrupted politicians, crime, forced BEE, land reform, power crisis, high oil prices, a weak rand, over priced property and overly increased inflation with high interest rates to mention a few was all this country could take. Therefore brace yourself we will collapse. This appears like heavy and unrealistic words, but I assure you it’s a reality. I have worked for a financial firm writing in depth financial software while gaining allot of experience in this particular field, and according to my calculation, we don’t add up anymore. Next month is dooms day, Mr. Tito Mboweni , whatever he will decide on the interest rate, will have a negative impact, we will be damned if we do and damned if we don’t hike the interest rate. Why you may ask? Well if he does hike it, the property market and large debt market will not be able to take the pressure, this will have a severe impact on the financial front, he might save the weak rand that recently traded well over R 8 per Dollar. If he does not hike it, the rand will most probably continue to climb to catastrophic heights. In either case we have the following scenario, which is high inflation. High inflation leads to higher interest rates which repeat its self well into recession. We are a few loops in already. As soon as ‘n certain percentage of the SA citizens are forced to skip bond and large debt payments we are in a major crisis. This results in a weaker rand again, forcing the loop into a “great depression” like we see with Zimbabwe. Unfortunately the higher oil prices are forcing higher fossil fuel prices which in return forces higher inflation and again higher interest rates. The government would not acknowledge as this would spread panic, investors will withdraw and within a few months the weak rand would be on its lowest yet. They have spend too much time enriching themselves, blaming the whites and criticizing Western Civilization. This will now have severe consequences, you have milked us empty. My recommendations are, get rid of your debt as soon as possible, this will make your life easier and your stress levels lower.