South African ANC Just Another African Disaster

Dawie Roodt predicted Tito Mboweni’s exit — here is what else he said

Staff Writer 12 August 2021

Dawie Roodt predicted Tito Mboweni’s exit — here is what else he said

Efficient Group chief economist Davie Roodt has accurately predicted the exit of former finance minister Tito Mboweni, and the reason for his exit is not good news for South Africa.

Last year, Roodt said the ANC’s main purpose is to seize the state to feed and maintain its own massive patronage.

“Without consistent high state spending, the ANC simply loses its reason for existence,” Roodt said.

Mboweni did not favour this doctrine, which resulted in him being side-lined in the party and in his untimely exit from the cabinet.

In February 2021, Roodt said the ANC and its alliance members made it extremely tough for Mboweni to cut state spending and stabilise the country’s fiscal trajectory.

“Ideologically, Tito Mboweni does not sit around the same table as many of his colleagues, and I will not be surprised that he is only there for the show in the short term,” he said.

South African

Roodt’s prediction that Mboweni would not last long in the current political climate proved prophetic.

On 5 August, President Cyril Ramaphosa replaced Mboweni as finance minister with former unionist Enoch Godongwana.

“I have also accepted a long-standing request by Minister Tito Mboweni to be excused from his position as minister of finance,” Ramaphosa said.

Mboweni’s departure as finance minister should not come as a surprise.

In May 2020, Mboweni said he was a free man with no political constraints before he voluntarily joined the government.

After this decision, he said, “you have to obey the majority/collective decisions. Sometimes it feels like swallowing a rock.”

Shortly before his departure, Mboweni said one needs a sense of the political standard deviation.

“Where are things going which accord with your ethics, values and beliefs. Sometimes, the ship might be sailing in the wrong direction. Jump before you are pushed but don’t drown,” he said.

Tito Mboweni, former Minister of Finance

In a presentation at the Free Market Foundation, Roodt said South Africa is on a path of destruction, similar to countries like Zimbabwe and Venezuela.

While these countries where economies were destroyed are not the same, there are similar patterns in how economic destruction occurs.

The first step to destroy a country’s economy is when politicians, through the government, start to destroy existing capital.

Capital destruction is clearly seen in South Africa’s state-owned enterprises like Eskom and Denel, where politically connected people destroyed these once excellent companies.

Well-functioning and valuable companies were gutted for self-enrichment and to execute misguided political ideologies.

The second step is to frighten the taxpayers through ever-increasing tax rates. Increased taxes are needed because the state runs out of money because of corruption and mismanagement.

In South Africa, tax rates are at an all-time high as the country struggles with a large fiscal deficit.

Ultimately you reach the curious situation where increasing taxes does not increase tax collection much, as the taxpayers are already overburdened.

Desperate for more money, the government now has to look at other places to fill the growing hole. Pensions are an obvious choice.

The third step in destroying a country’s economy is where savers are getting scared that the government will hurt their savings.

Roodt said this is happening in South Africa with the ANC’s prescribed assets plans, which will give politicians control of pension funds and where this money is invested.

Savings are, however, a limited resource. After tax revenues and savings dry up, the country reaches the endgame.

The fourth and final step is when a country prints more money to try and inflate itself out of debt. Inflation reduces the value of money and, therefore, the value of debt.

Roodt said this is why the ANC wants to get control over the SA Reserve Bank (SARB). If you can control the country’ central bank, you can get rid of your debt.

It has devastating consequences on an economy, as was seen in Zimbabwe and Venezuela over the last two decades.

Roodt said this would not happen within the next few years while SARB Governor Lesetja Kganyago is in charge.

However, with South Africa’s destructive government in power, Roodt said it is the inevitable end to what we see today.

Now read: Economist Dawie Roodt warns of jobs bloodbath in South Africa



Submit a Comment

Your email address will not be published.

Other recent posts

UK Vax Numbers Again Prove 90% Of Cases Are Vaxxed

NER: When you check these figures always remember that vaxxed are included in unvaxxed up to 14 days and the same after 2nd or 3rd shots. Hence the situation is much worse bu the figures are fudged by "the system." Triple/Double Vaccinated account for 89% of all...

read more

Reams Of Data Point One Way, Vax Is A Total Failure

Horowitz: The very concerning data from Scotland DANIEL HOROWITZ January 21, 2022 “The vaccines are incredibly safe. They protect us against Omicron; they protect us against Delta; they protect us against COVID." Those were the words of fully vaccinated CDC Director...

read more

US Case For Crimes Against Humanity Filed. UK One Is Current

Just In: Criminal Complaint Filed In The Office Of The Texas Attorney General Alleges Murder and Crimes Against Humanity BY PATRICIA HARRITY ON JANUARY 21, 2022 • ( LEAVE A COMMENT )   Listen Now A complaint has been filed in the United States of America on the...

read more

Mask Fallacy: Useless & Harmful & We’ve Known For A Year

Horowitz: The danger of the momentum behind N95 respirators OP-ED DANIEL HOROWITZ January 20, 2022    Were the cloth masks just for psychological training purposes to get us to the main course of obsequious servitude to the gods of Fauci? It took nearly two years, but...

read more
UK Government & Press Proven Pathological Liars

UK Government & Press Proven Pathological Liars

Office for National Statistics admits just 6,000 people died of Covid-19 in England and Wales between Feb 2020 and Dec 2021 BY THE EXPOSÉ ON JANUARY 20, 2022 • ( LEAVE A COMMENT ) Listen Now In response to a freedom of information request the Office for National...

read more
Green Madness & The Grim Reality For The West

Green Madness & The Grim Reality For The West

Why Do NATO States Commit “Energy Hara Kiri”? Green Zero Carbon Madness. Industrial Collapse? By F. William Engdahl Global Research, January 19, 2022 Region: Europe Theme: Oil and Energy All Global Research articles can be read in 51 languages by activating the...

read more

Many Covid Protocols On Web Now But Ivermectin Still A Star

US Military Documents: Ivermectin “Works Throughout All Phases of Illness” BY RHODA WILSON ON JANUARY 16, 2022 • ( 3 COMMENTS ) Listen Now Last week Project Veritas revealed that US Military documents contradicted Fauci’s sworn testimony about gain-of-function.  Since...

read more
More Amazing New Big Pharma Depopulation Drugs Developed

More Amazing New Big Pharma Depopulation Drugs Developed

FDA Denies Effective Remedies as New COVID Treatments Flop  by Rebecca Terrell January 19, 2022  Facebook  Twitter  Linkedin  Email  Print  PDF Marc Bruxelle/iStock/Getty Images Plus Competition is heating up for Pfizer’s new but scarce antiviral medicine, Paxlovid....

read more

Vax Appears To Be Designed As A Neurological Saboteur

MIT Scientist: COVID Vax Looks Like “Perfect Set-up” for Neurological Damage  by Veronika Kyrylenko January 19, 2022  Facebook  Twitter  Linkedin  Email  Print  PDF Lars Neumann/iStock/Getty Images Plus Parents should be doing everything they can to avoid vaccinating...

read more