Friday, March 8, 2013

South Africa - A Stable Economy?

This is a post from ToxiNews website.

So South Africa is a stable economy built on solid rock is it?

There is not a single example in the history of the world where a revolutionary communist terrorist movement had taken control of any country and made a success of it. One could call a terrorist a "freedom fighter", but once a terrorists, always a terrorist. Never in the past 100 years had the ANC ever had to work for their money, because standing with their cupped hands they've always been sponsored by a criminal liberal world. The ANC is nothing other than a bunch of spoiled beggars. Anyone who gives a country to a group of beggars with AK47s must expect the worst. Anyone who sympathises with the followers of terrorists is a fool to say the least. Only liberals are so feeble minded as to think it could work. Perhaps it has been working for the appeasing liberals who took their BEE money and fled, but the rest will suffer the consequences of the actions of the appeasing industry and liberals. 

Think about this:

99% of all taxes are paid by 3.3 million South Africans. 

"The government is wrong when it states that only 35% of the annual budget is spent on wages. The true figure is 88%,"

The question is; What percentage of taxes earned by SARS come from money paid from taxes. People working for the State are paid from tax money. Contractors working for the state are paid from tax money. 

All these huge infrastructure projects are paid for from tax money, so the taxes earned from those companies and their employees come from taxes anyway.

The pensions of retired Government employees come largely from taxes. The rest of the state pension fund earnings come from investments in state-funded projects.

The SA government employs more than a fifth (22.8% in 2011) of formal sector workers in South Africa and pays its employees an average 34% more than the private sector does. 

SA has more civil servants than the total number of people employed in mining and manufacturing combined.

The state salary bill was about R382-billion in 2011. People become millionaires by working for government.

In 2011 SA government salaries accounted for more than 12.8% of GDP and, when the salaries paid by state-owned enterprises are added, it increases to more than 14.3% of GDP.

The taxes they pay are paid from taxes paid to the government. So while 3.3 million people pay 99% of all taxes, what percentage of those taxes are paid from taxes?

More people in SA get an income from welfare than from employment.

Besides this the corrupt regime steal billions of Rand each year. Virtually all government projects are given to useless corrupt BEE (Black Elite Enrichment) companies that overcharge government to hell and back. Most of the work given to those companies never get done and are then re-allocated to other equally useless corrupt BEE companies that again overcharge government, which means we pay two to three times for the same, already overcharged, projects.

Add to the above the brain-drain over the past two decades, BEE and transformation that excludes whites from active participation in the economy, land-grabbing by the government giving huge productive farms to inexperienced, unqualified self-sustenance farmers.

Add to the above the fact that more and more farmers are selling off their farms, wanting to get out. Whites are no longer buying farms, but for the dumb liberal fools who believe in the miracle of the rainbow nation farce.

At an average of 18,000 murders each years since 1993 at least 342,000 have been murdered in the past 19 years, many of which were productive contributors to the economy, now lost.

By October 2011, South Africa's vehicle population was 10,156,186, according to the eNaTIS.

64,504 (176 per day) cars, worth more than R9-billion, were stolen and 10 627 vehicles were hijacked in 2011.

This means that of the 570,012 vehicles sold in 2011, at least 75131 occurred due to theft and hijackings.

The Taxi Recapitalisation Programme (TRP) was financed by the SA government with tax money. This added to the sales figures of new vehicles, further bluffing the public into believing that new vehicles sales figures keep rising year on year.

Tens of thousands of vehicles are scrapped each year due to world-record high number of road accidents and not being road worthy, further adding to vehicles sales. The Road Traffic Management Corporation announced that over 6000 unroadworthy public transport and freight vehicles were scrapped from service on South Africa’s roads in October 2011 alone.

Do not be fooled by flashy figures issued by industries such as the vehicle industry, because the sales do not reflect the true economic situation in the country. New vehicles sales would have been much, much less and in a negative downward spiral had it not been for theft, hijackings and vehicle accidents. Most of the new vehicles running around today are the result of state funded BEE projects and affirmative action government employees anyway.

Add to the above the serious wastage trend of this regime. School books dumped in rivers, food by the tons rotting at schools and other feeding programs, ministers going on vacation with chartered airplanes paid for with tax money, fuelled with tax money, the so-called state president being flown to the US to attend one stupid meeting escorted by two empty airplanes, Nkandla palace costing taxpayers more than a billion Rand and those contractors paying tax on income paid from tax money.

Add to the above all the companies owned by government employees paying tax on huge sums of money earned from projects allocated to them by the state, which were paid for with tax money.

It does not matter how we look at it, SA is on a self-destruction path that cannot be turned around and that cannot be undone.
Now add to the above the amount of money leaving the country thanks to migrant workers from the rest of Africa, illegal foreigners sending their earnings out of the country, huge companies withdrawing from SA with the help of liberals/industry created BEE. 

BEE was created by the liberals (PFP/DP/DA) as means to get their money and clear out. MacDonald's, De Beers, and too many others have withdrawn from SA. They supported the ANC and then convinced them to lend money to buy them out (BEE) so they could at least be paid very profitably to flee the country. It should be remembered that BEE stands for Black Economic Empowerment and not for Black Economic Development. The same cake has been sliced up into ever smaller pieces, without any form of economic development taking place. BEE, like land distribution, is nothing other than legalised sophisticated theft. Using tax money to buy farms for private citizens is nothing other than sophisticated theft. Stealing from tax payers to benefit a connected few to the detriment of all. Not only fuel price hikes threaten SA's food security, farms murder,s farm attacks, land distribution (land grabs), violent farm worker wage riots and even climate change threaten our food security.

Then we have the mining companies closing down mines, taking their money and leaving SA with the task of cleaning up the mess they left behind, such as acid mine water, destroyed rivers, etc.

In the fourth quarter of 2012 unemployment increased by 6.1 percent (257 000), the number of discouraged work-seekers decreased by 2.5 percent (58 000) and other (not economically active) increased by 1.4 percent (180 000), resulting in a net increase of 121 000 in the not economically active population.

In the meantime the Rand has hit R9,1220 against the US dollar and now remains floating around R9.00 to the dollar. Petrol has hit a record high, eTolls are being instituted, the communist National Health Insurance scam is being introduced to be paid for by the few non-government financed (independent / private) tax payers. 

The deficit on South Africa’s trade account reached a new record high of R24.5bn in January from a deficit of just R2.7bn in December.

Fuel prices are being increased to make up for the tax short-falls and SANRAL's debts.
The retail price of all grades of petrol would increase by 81 cents a litre from Wednesday.
Both diesel with 0.05 and 0.005% sulphur content would go up by 58.3c/litre wholesale.
The wholesale price of illuminating paraffin would go up by 57c/litre, and the Single Maximum National Retail Price (SMNRP) would rise by 76c/litre.
The maximum retail price of LP gas would go up by R1.18/kg.

South Africa’s small tax base is a major hindrance to the government’s growth objectives. 
More than 50% of personal tax revenue to come from individuals earning R500,000 or more, although they make up just 8.4% of taxpayers. Taxpayers with an taxable income of R150,000-R250,000 a year are projected to account for 13.2%

What applies to taxes also applies to Electricity and water as only a very tiny percentage of the SA population pay for the "right" to to those. It would not come as a surprise if only 3.3million people also pay 99% of the water and electricity bill in this country.

Eskom has an investment grade rating from Standard & Poor’s (S&P) and Moody’s, mainly because of the R350bn financial guarantees provided by the state. TAX MONEY from the 3.3million taxpayers. The 140 largest consumers of electricity have to pay more. Mining companies used 14.5% of Eskom’s 2012 electricity sales of 224,785 gigawatt hours and heavy industry used 26%. BUT remember that they pay much less per unit than household consumers. "This comes at a time when the viability of half the platinum sector is being challenged and is unprofitable, and 37% of the gold sector is in a similar position," In the meantime strike actions are killing the chances of preventing the SA grid from collapsing.

Add to the above that gold is set for longest run of monthly falls in 16 years. South Africa's mining sector has been shrinking consistently and strikes are making it much worse. Most potential investors are now looking outside SA.

Now how is it that some people are still hopeful and positive about the future of this communist country? ENTITLEMENT is the biggest threat to South Africa and it is obvious that South Africa, as it currently functions, is unsustainable and must and shall collapse, sooner or later.


'Civil service eats up 88% of budget'

Government Wages Constitute 88% of Annual Budget

How many taxpayers are there really (2013)?

SA government employs 1.3m people

Gross wages of SA government employees higher than other sectors combined

SA's sizeable and costly public sector

Theft Of 4×4′S And Other Vehicles Is About To Become Less Profitable

SA's car crime numbers detailed

Over 6000 dodgy vehicles scrapped

SA Government Information - Transport

Taxi Recapitalization


South African vehicle sales strong in 2011

South Africa Unemployment Rate

Trade deficit high, expected to worsen

Much of tax burden falls on the wealthy

Eskom’s reduced hike ‘bad news dressed as good’ - the increase would fuel inflation

Eskom reels as regulator grants half of tariff hike

Gold set for longest run of monthly falls in 16 years

Opposition parties irate at Eskom’s BHP Billiton deal

Rand fall no joy for Zim

Price hikes 'threaten' food security

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