Thursday 23 October 2008

Absurdity.

One thing that bores me about my blog is everyday me and some readers play a game of "let's see whose a fucking retard" tag ..but they're always "it".

Ever since the rand has followed world trends and slid against an inflated dollar, the neurotic south african blogsphere has got a raging hard on. As I have tried to explain without having to resort to "little johnny has two apples.." in my previous posts comments section but it's seems some of my readers have the itellectual skills of a opera singer aspiring mute.

Look a weaker rand for a developing country is a good thing. End of story. South Africa needs to be increasing exports and slowing down on imports. That equals production growth as for every product that is exported needs to be replaced by another. Seeing as imports are too expensive it's a perfect niche for small and new business to emerge. That equals employment and economic growth. It's really not complicated people. The best way this could happen is with a weaker rand. Suddenly South African products are dirt cheap to buy , foriegn products we don't need become less desirable. We spend more of our money on our own people...and guess what....more people from other countries spend more of their money on us. Woo di motherf#cking doo. Utopia here we come.

The absurdity of people want a strong rand can easily be demonstrated by taking it to it's furthest logical conclusion. What if for example the rand was 5 to the dollar ?

Suddenly every South African product would be twice as expensive to export. We'd lose all our competitiveness and other countries would look elsewhere. Local producers would also get outdone by other countries because it was so much cheaper to import their goods. Factories everywhere in this country would have to close. We'd import everything, have a huge defecit and then inflation would really hammer us. It would be disater !!! That's just the f#cking facts my friends.

The only benefit of a strong rand would be we could buy cheap raw materials from other countries. But here's the kicker ! We don't need them ! We have all the raw materials here we need bar oil ...we'd be buying stuff we don't need at the expense of jobs at home to make products no-one could afford to buy. Yeah ! Real great geniuses !!!

Now what if the rand was 1 to the dollar ? Grasp this and you're starting to understand what a currency is and how it works you dumb twats.

So next time you hear someone point out that the rand has slid and how "disasterous" that is for the economy, sit them down and piss on them.

Piss in their face.

Football goodies

8 comments:

Anonymous said...

strong curencies have not done the slide - retard

Anonymous said...

With a weaker rand, interest rates and inflation are going to increase, and the trade deficit is going to get bigger. This will affect the poorer masses directly.

Sounds promising. I can't wait for the rand to weaken even more.

Anonymous said...

You paint a sublime "rosy" picture about the depreciating "ront" rooster and I agree with most of what you say but... the "fly in the ointment" (sometimes known as "the other side of the coin")is the fact that SA does not have the skill sets to produce 90% of imports locally. If you look at most govt capital projects today i.e. communications infrastructure, power reticulation, water reticulation & purification etc, all these are farmed out to international conglomerates that need to be paid in dollars and pounds. So the govt then has to pay more rands to get this forex and so has to charge more rands for these services resulting in pissed off population.
If, as you state, you have studied economics I would suggest you missed one (or a few) of the classes.

The Rooster said...

strong curencies have not done the slide - retard

The yen hasn't ? the won hasn't ? The new zealand dollar hasn't ?

What's the view like 6 feet up your own ass ?

The Rooster said...

Anonymous said...
With a weaker rand, interest rates and inflation are going to increase, and the trade deficit is going to get bigger. This will affect the poorer masses directly.

---------------------

Not nearly as much as with a stronger rand. A stronger rand would mean huge trade defecit increases and in the long run far higher inflation and shrinking of the economy.

Actually a weaker rand affects the poor the least, a stronger rand would affect them the most.

The Rooster said...

You paint a sublime "rosy" picture about the depreciating "ront" rooster and I agree with most of what you say but... the "fly in the ointment" (sometimes known as "the other side of the coin")is the fact that SA does not have the skill sets to produce 90% of imports locally. If you look at most govt capital projects today i.e. communications infrastructure, power reticulation, water reticulation & purification etc, all these are farmed out to international conglomerates that need to be paid in dollars and pounds. So the govt then has to pay more rands to get this forex and so has to charge more rands for these services resulting in pissed off population.
If, as you state, you have studied economics I would suggest you missed one (or a few) of the classes.

---------------

Ah finally ! Someone makes a valid criticism (almost).

Girslty 90% is a hugely inflated number. But what's valid is that a weak rand is only potentially a good thing and indeed as a developing country much of the needed infrastructure and skills to take full advantage is not in place , but I do feel there south african economy is being flooded with enouggh new money and investment everyday to easily face up to this challenge.

What I forgot to mention is tourism....the buzz from my english friends is that they're all heading down to S.A for christmas to take advantage of the exchange rate. they get more bang for their buck , we get more spend thrift tourists....it makes me so happy I'm cumming in my pants.

(Did I mentuon i earn dollars and pounds ? "It's more fun when you're wiiiiiinnniiiiiiiing!"

Anonymous said...

"Not nearly as much as with a stronger rand. A stronger rand would mean huge trade defecit increases and in the long run far higher inflation and shrinking of the economy.

Actually a weaker rand affects the poor the least, a stronger rand would affect them the most."

- oh what nonsense. please prove it. I want to see sources. if you can't provide, I'll see your comment as nothing more than crap opinion.

Katzenjammer said...
This comment has been removed by the author.