IceCreamMan
Investor confidence...that's about it...nothing more....
If there is demand for local currency you good, if not u suffer
Our use,ess politicians are the driving force here....unions too
BluJu
Many factors as the ones stated above affect the rand.
A big one not mentioned here is the USA quantitative easing policy.
Ben Bernanke just hints of a slow down in the buying back of USA bonds and money flies out of emerging markets.
Just look at what has happened to the Indian Rupee of late.
warrenpridgeon
Don't forget the conspiracy theories around people intentionally weakening a country's currency for their own nefarious reasons... hehe...
But yeah... it's a right pain in the aaa... wallet...
peterleroux
warrenpridgeon wrote:
Don't forget the conspiracy theories around people intentionally weakening a country's currency for their own nefarious reasons... hehe...
This is not a conspiracy theory. Banks make good money speculating on emerging currencies, and eg. Japan is well known to intentionally weaken it's currency to help exports
BluJu
This is not a conspiracy theory. Banks make good money speculating on emerging currencies
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It is extremely expensive for banks to take propitiatory positions. Banks make money by making a market.
I think your'e talking about funds and the like.
DaFiz
What is so sad is that most of us cannot afford a USA guitar but end up playing a Chaiwanese copy instead :'(
warrenpridgeon
DaFiz wrote:
What is so sad is that most of us cannot afford a USA guitar but end up playing a Chaiwanese copy instead :'(
I'm happy with my Korean one... hehehe...
But yeah... things that were crazy expensive have now become prohibitively expensive...
flatfourfan
................and on the plus side.
My little export business has been booming. Picked up a new buyer this morning from KaliiiiiforniA.
Cleric
It's been covered pretty well, but as someone who works in this on a day to day basis, the key points are:
- Low growth next to comparable economies
- This is mostly due to lack of the right govt policies, wealth redistribution not moving quickly enough, and thus resulting labour issues country wide
- Inflation pressures and unemployment will keep consumer spend low, further constraining growth
- The dip in commodities, our major export, makes what we do export contribute less to GDP, and gives less reason for investment in new mines to drive more growth
- "Risk-off" mode by global investors as the cost of liquidity increases due to Bernake's intentions to slow Quantitive Easing over the next few months
Gearhead
There is only one answer to the gini coefficient being so high (the highest in the world at 0.7): education. Wealth distribution not moving quickly enough can also be solved by forced redistribution but that model has failed to spark international investment in countries North of us, who tried...
Charlie4
In terms of all the crazy strikes we've been having the irony is that it's not really about money - it's about basic living conditions being poor. Unfortunately the masses think that this will be solved by earning a bit more - this will not stop an inept municipality being inept.
Political discussion so I will end here. (Forum Rules)
My 2c.
IceCreamMan
Gearhead wrote:
There is only one answer to the gini coefficient being so high (the highest in the world at 0.7): education. Wealth distribution not moving quickly enough can also be solved by forced redistribution but that model has failed to spark international investment in countries North of us, who tried...
not sure education will improve anything ..... there are countries north of us with higher levels of education and higher levels of poverty...... I have travelled Africa quite extensively ....its an eye opener....
IceCreamMan
education is without doubt important but its a "symptom" of intelligence...without intelligence, education on its own has little worth. We have to nurture and cultivate intelligence , education follows.
unfortunately I cannot access that website will try from my ipad
MikeM
Valid point ICM. What I had in mind was the lack of access to learning materials that is still happening in SA. I personally believe that there should be free access to educational materials if a person wants to make use of them, particularly in a developing country like ours. It'll separate the lazy from those with the desire to make it - but this is just from my small experience of some parts of SA ?
Also, the website is off on a bit of a tangent. It's a interactive map of the world, with a listing of "peace rankings" and a whole bunch of factors they consider for it.
Ray
The wealth is focussed too much. You have too many really wealthy people and too many really poor people. And ideally you should have none of either of them.
But really I dont know how this discussion will make the guitar I've now got to pay shipping for get here cheaper.
strataxe
its an African currency, so it will follow in the footsteps of the powerfull Zim dollar, the Botswana De Beers Pula and other successfull African currencies. ?
21Fretter
Recently covered unemployment at varsity, there are several factors to consider. South Africa has a large unskilled and uneducated workforce but South Africa's economy has continued to develop towards a more skilled economy (e.g. financial services are a massive contribution to the SA economy). This is structural unemployment ("the structure of the economy does not match the skill-sets"), but also, SA has strict labour laws (fairness, BEE etc.) which further pushes companies towards smaller, more skilled workforces. They do not have to train the workforce, do not have to worry about having to fire the people because they cannot do the job, gets costly and lengthy, and look for experienced workers, not giving the recently employable youth opportunities. There is also significant striking, other companies move towards mechanisation.
South Africa needs to obviously improve education to develop skill-sets but unskilled labour (and semi-skilled) is simply a strong contributor at the moment, it needs to be focused on e.g. develop industries which employ significant numbers of this skill-set.
People do say, "When can we stop blaming Apartheid", but it obviously has a significant involvement. The kids who did not have the opportunity for education work in the unskilled sectors earning low income, their children join the world and have to start working asap to help the family live (don't develop their skill-set) etc etc.
Ray
And that's why the Rand is effed?
