South Africa’s New Economic Plan: Expropriation of Land and Printing Money

170px-Coat_of_arms_of_South_Africa.svg.pngWith South Africa’s poor economy showing slight improvement and a major credit decision looming,  the new government of President Cyril Ramaphosa would be expected to chart a careful and conservative approach.  However,  its new leaders are turning to two measures that have historically triggered utter disaster for African nations: land expropriation without compensation and the even more dangerous plan to simply print more money and give it to the poor.  I have long admitted to have a Chicago School bias from my undergraduate days, but this does not seem promising for this struggling country.

The new South African former finance minister Nhlanhla Nene reportedly is planning to reduce the number of poor people in his country:  print new money and simply give it to them.  The former finance minister to President Jacob Zuma offered his simplistic plan in the simplest of terms: “South Africans continuing to be poor when we can print more money to ensure that everybody has it. Our people are poor because there is a shortage of money in the country.”

[This quote has appeared in a couple of South African news sites but I have not been able to find it or further explanations in other media.  I am still trying to confirm the details]

It is certainly true that being poor often means being without money. However, printing more money can trigger the scourge of the Third World–runaway inflation.  That relationship was vividly shown in Venezuela, which is an oil-rich country run into the ground by the moronic socialist governments of Chavez and Maduro.  Inflation is now over 4,000 percent.

Like printing money, land seizure is always popular at first.  However, the “land reforms” of Zimbabwe under President Robert Mugabe led to utter disaster and starvation for his country, which remains a disaster to this day.  Nevertheless, Ramaphosa is pledging expropriation of land without compensation.  The move has set off a panic among lenders and banks.  Investors are now less likely to invest in a country that will be following the course of Zimbabwe and undermining the security of land holdings.  Moreover, South African banks are heavily invested in agriculture so Ramaphosa may have brilliantly found a way to not only chase away investors, decrease investment in agriculture, but also undermine the viability of his own banking system. That is a trifecta that is not easy to do without really trying.

An economic policy based on printing free money for the poor and seizing land is nothing new to Africa. They are sirens of disaster that call to every government seeking easy solutions to difficult economic problems.

52 thoughts on “South Africa’s New Economic Plan: Expropriation of Land and Printing Money”

  1. I don’t believe there is a valid or reputable source for these quotes. The article appears fabricated.

  2. While you’re at it, Linda, you explain why the standard of living is so much higher in the U.S. than in Russia.
    By your definition, they are both oligarchies.
    And it’s only your “.1%” that benefit from these oligarchies, at the expense of the other 99.9%.
    If you hold the Russian oligarchy responsible for a relatively low standard of living, why is that standard of living much higher in your ” American oligarchy”?

    1. DBB – there are many multinationals over there – a friend of mine who works for BMW was offered a job in S. Africa – they get extra (hardship) pay as it’s dangerous and all the ex pats live on compounds. How many companies will remain there if this goes through? My friend, btw turned it down – went to China instead.

  3. Sounds like white land owners are the new Kusaks. Yet another country targeting the prosperous in social justice.

    Socialism has been tried over and over again with the same tragic results. It is difficult to stand by and watch them engage in yet another humanitarian catastrophe which will result in starvation and massive human rights abuses.

    But by all means, pull another Venezuela.

    1. Sorry, I’m still having fits that a finance minister thinks people are poor because they didn’t print enough money. What’s the inflation level in Venezuela? 5,000%?

      Print away!

  4. Ben Franklin, we gave you “a republic, if you can keep it.”

    South Africans, we are so overcome with guilt over our conquests and successes we will reconvey everything.

    I wonder if lions disgorge partially digested gazelles out of a misguided sense of guilt.

    Nature abhors a vacuum.

    When lions stand down from their natural position, hyenas will arrive to consume every last morsel, even leaving white scat from lion bones.

    You can lead a horse to water but you can’t make him drink. Stay thirsty, my friends!

  5. From 1948-1989 South Africa averaged 170 murders a year.

    Since 1994 South Africa has averaged 25000 murders a year.

    The urban middle class lives behind razor wire and every house has a safe room.

  6. Zuma’s replacement a total disaster.
    Expect a higher level of corruption.
    White man beware the machete is coming.
    Out now and please heed the warning.
    The lions are at the gate.

  7. Considering that the land being confiscated without compensation was confiscated without compensation it is not surprising that the landed will object, since it is only they who can do that deed.

    1. South Africa needs you, Betty Kath! You need to emigrate there and help all those poor Africans! Seriously!

      Squeeky Fromm
      Girl Reporter

      (I give her six months there, and she’ll be using the “N” word, and hightailing it back to the U.S.A.!)

  8. Also, what’s going to happen to the animals – will the sanctuaries be funded? Who will run them?

    This native son, Kevin Richardson works tirelessly to protect lions

  9. I think the most famous “refugee” from S. Africa is Elon Musk =)

    Seriously, it is a travesty – some of the S. African whites have been there since the 1600s so it is their country too. To be sure apartheid was an evil system and it was great to see it finally ended. The Reconcilation set up by Mandela and Tutu was inspirational – however now the ANC and this corrupt leader Ramaphosa have taken the country backwards. What is going to happen if the whites are driven out? It will most likely affect the poor – the prez and his peeps will steal billions and live super well while the infrastructure and economy crumbles – we have seen this happen in so many 3rd world nations.

    I have a cousin who was brought up in S. Africa, married a S. African and lives in Johannesburg. He is making plans to return to the U.S. – a country he doesn’t even know.

    1. Darn smart of him! The sooner the better. The country is currently less than 10% white, so it is way past time for them to get out. And of course the country will decline and become another one of the dysfunctional black countries. Last white person out, please turn out the lights.

      Squeeky Fromm
      Girl Reporter

        1. Anybody with any sense should be getting out. Pile as much of your stuff as you can into a shipping container and head for greener pastures. About 3 million blacks scooted out of Zimbabwe when the Whites were overrun there, and the place went to heck, and headed for South Africa. I guess they will have to try to find another white-run country to run to.

          Squeeky Fromm
          Girl Reporter

    2. Plus, I don’t know for sure that apartheid was an “evil” system. The choice was between apartheid and civilization, or no-apartheid and a collapse of civilization.

      Does anybody think the older South African whites did not see this coming??? That if the racial barriers came down, that the blacks wouldn’t eventually ruin and destroy the country???

      Squeeky Fromm
      Girl Reporter

      1. I read the blurb at the link, but I will not read the book because its pointless. Her feelings are going to have squat to do with what happens in South Africa post apartheid. Those feelings were only possible because their was a structure around her to protect her from the worst in humanity, so that she had the time, and space, and peace, to have higher feelings. When that structure that came down, however, so did any civilized future for South Africa.

        Now, we can go and autopsy that structure, and find all kinds of things wrong with it, but it did serve it’s purpose. It would be like crying over the death penalty “structure” for a prisoner, and what a wonderful person he was once he was off drugs or whatever, and now he is gone, having been put in the gas chamber. Poignant to the max. But when that structure went, there went a piece of civilization with it, and in its place will be many more horrible things than existed with it.

        Sooo, I am sure that apartheid wasn’t fun. But it will only be worse now for everyone since it is gone. Much like segregation in the South.

        Squeeky Fromm
        Girl Reporter

        1. Well I found it to be a riveting and valuable account of what it was like during that period. She is a damn good writer and I am a sucker for a good story =)

  10. Just like Rhodesia/Zimbabwe, the same fate will befall South Africa. And Robert Mugabe is showing himself to be the role model for disaster. I guess Gideon Gono (Mugabe’s finance minister) wasn’t available to set the plan in motion, but any (blank) African will come up with the same idea for operating the Treasury.

  11. Happy Monday to all in the JT community. Yes Professor Turley is correct–but one needs to understand the reality in South Africa. The ANC is in trouble–it is mired in Corruption and the EFF (known for wearing work overalls and hard hats) spreadheaded the law that the ANC supported because it is trying to win the election. One would think from a President who’s worth half-a-billion Dollars there will be more sense shown–but a country mired in corruption and crime–such moves are not entirely unexpected.

  12. There are crimes against humanity going on in that country. We should be giving asylum to refugees from South Africa. It is no surprise their economic policies are suicidal.

    1. We should be giving asylum to refugees from South Africa.

      Why the United States? Is there no other country on the planet more culturally aligned with South Africa?

    1. DBB – yup. And now the King of Swaziland apparently wants his land back from S. Africa….

      KING WANTS LAND BACK FROM S. AFRICA

      One of the newspapers of autocratic Swaziland King Mswati III is pressing for action for the kingdom to claim large parts of South Africa, including the capital Pretoria, for the Swazi people.

      The Sunday Observer said (4 March 2018) ‘some Swazis’ believed now was the right time to reclaim land ‘lost’ to South Africa during the Colonial era.

      http://allafrica.com/stories/201803050658.html

    1. From what I read, the government quota people got their jobs, and fired the engineers. Ooooooops. Things people forget, you can stack who you want anywhere in the name of equality, but sometimes the people who were there were there out of merit for an important task. It’s an obvious illustration for the whole country, but the more dull folks won’t be able to put that together.

  13. One of the two songs for Africa

    The first is one man one vote one time

    The second is this plan that invariably leads to tribalism and internecine warfare.

    Events leading up to are remarkably similar to the progressive plan for the USA. One party one vote one time then no franchise.

        1. The talking point ,”freedom”, is the Koch’s false flag. It equates to leaving the 99.9% with nothing left to lose.

      1. The Koch plan seems to be printing free money for the rich and seizing valuable natural resources including water and air for the exclusive use of the rich.

    1. Yet, it is the Republican’s egregious gerrymandering that denies Americans the value of their votes. Yet, it is the Republicans who suppress the vote. Yet, it was Republicans (Robert and Rebekah Mercer) who made the path for Bannon ‘s tribalism into the White House….

    2. LOL! Now you’ve gone and done it Michael. You got Mr. Benson to stutter on his keyboard and then there’s Linda. She not only keeps playing the same scratched record over and over, she has no idea it has a side B. The Koch’s have so infested her mind she has no time to learn about George Soros.

      You have it right about progressives and tribalism. They’ve done a terrific job dumbing down voters to the point the voters knee-jerk reaction is the other party is evil. There is no other party, at least not when it comes to Republicans/Democrats. rule of law and separation of powers.

      1. I don’t think it’s a scratched record, Olly.
        Linda’s slogan’s are more likely lifted from a 100 year old Bolshevik pamphlet.

        1. Under Putin’s oligarchy, how often can Russians afford to eat meat in a week? What, beyond a subsistence existence, can they afford? The Russian model isn’t one that anyone wants to duplicate… except America’s richest 0.1%.

          1. A sensible way to evaluate Russia’s economy is to compare the standard of living for the average Russian before Putin, to the standard of living after Putin took power.

            1. Wrong. The comparison is to the standard of living in countries with equivalent resources. Exactly how long have Putin and the oligarchs been plundering Russia? There’s uniform agreement that the Russian people have long suffered from tyrants.

              1. Which ” countries with eaquivalent ressourced” do you want to compare Russia with, and how many times can the citizens of those other countries “afford to eat meat in a week”?

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