Seems that on this thread many share the doom and gloom scenario, which may be a bit premature. Gordhan needs to demonstrate intent tomorrow, but verbalizing it won't work (government is pretty good at telling everybody what they intend doing but never deliver), he has to set milestones and deadlines otherwise we will be downgraded to junk. The anomalies in the pack of cards are Cosatu which is a spent force, the government needs to call their bluff, and tell them to go away - the trade union movement is so split at present that it is an ideal time for government to move on labour issues. Cosatu are saying no sale of government/state entities, no increase in VAT and no e-tolls, if government panders to their demands we will put the country into recession. I certainly fervently wish that Cosatu decide to break away form the ruling party at the next general elections and try and run as an independent party - but sadly they won't do that as they are aware that they will fail to garner votes.
I hold a contrary view I believe that the government is patently aware that if they don't support business, and don't create jobs within the next 2 years they will be out of favour and will not be the ruling party at the next elections, and that we will have a hung government - which in itself will be a disaster as we will then have a 3 way tug of war and very little will be achieved by the coalition
The yanks are of the belief that their market will rally and do exceedingly well over the next 4 years, and I tend to believe them - the USA economy is a mature economy, the Chinese is a growing economy but no match for the USA, and they are trying to grow consumerism which is normally a failure, as manufacturing and industry grow an economy, which is not the case in China.
In SA our savior is not going to be through resources as they would does not need our resources - sufficient has been stockpiled since 2007 worldwide, however there is massive opportunities for manufacture and industry in this country, but we need to start ignoring our BRICS partners and start concentrating on Europe, Asia, and USA, this should ultimately strengthen the Rand
So for RSA to become successfully we need to limit government interventions, sell some state assets or create partnerships, ramp up exports, limit bureaucracy, and get labour to toe the line on ridiculous wages and wage demands
There I've said it
