To utilise quantitative easing… you should be experiencing deflation… [or] interest rates so close to zero they become ineffective… South Africa does not meet these conditions!
— Lesetja Kganyago, Governor – South African Reserve Bank
The ANC wants to Nationalize the Reserve Bank like they nationalized Eskom, SAA, Transnet and turned them all into limping ANC Looting Brothels.
This they will now do with sufficient support from.
Before this happens, they also want to print Rand notes (quantative easing, i.e. inflation) to “deal” with our permanent economic decline, since we were last a successful nation under Apartheid rule, with 6% annual growth in the 1960s. We have never gone past the 3.5% mark since 1994.
What a shame! But oh no, we cannot be fearful of the ANC’s unforgivable colossal failures as we were with Apartheid. One was a wolf, the other is a fox. You better count all your blessings, because the latter smiles before it devours Mzantsi! At least we are now Smilies (roasted lamb heads, sold in every village, township and taxi tank for R50).
The ANC has agreed to expand the mandate of the South African Reserve Bank (Sarb) to focus on development and job creation, according to secretary-general Ace Magashule.
Magashule says the party is exploring quantitative easing – in essence, creating money out of thin air.
Finance Minister Tito Mboweni, however, immediately took to social media to contradict Magashule.
The ruling party’s economic transformation head Enoch Godongwana was also quick in slamming Magashule, saying the ANC has not decided to change the Sarb’s mandate.
Sarb Governor Lesetja Kganyago too was scathing in his response to Magashule’s statement, reiterating that the Sarb’s primary mandate of “protecting the value of the rand in the interests of balanced and sustainable growth” is outlined in the Constitution.
Kganyago’s first term as Governor ends in November 2020.
He has made himself available to serve another five-year term.
Credit rating agencies have cited Kganyago’s leadership as an institutional strength for South Africa.
The Money Show’s Bruce Whitfieldinterviewed Kganyago, Peter Attard Montalto (Head of Capital Markets Research at Intellidex) and Mpumelelo Mkhabela (Political Analyst with the Department of Political Sciences at Unisa).