OUT TO LUNCH
It would have been very surprising if the ratings agency Moody’s had taken pity on us last Friday and delayed, yet again, this country’s downgrade to junk status. I did wonder, albeit briefly, if they might have given us a stay of execution because of the dire economic effect the COVID-19 shutdown will have on the economy but the reality is that our downgrade to junk status has absolutely nothing to do with the effects of the coronavirus and everything to do with the financial pillaging and mismanagement of the economy over the past decade.
In fact, Moody’s were extremely kind to us for some reason and their final downgrade comes almost three years after the other two ratings agencies decided we were a lost cause. This enabled us to remain on that all important list of bonds that international investors are allowed to put their client’s money in.
The fact that Moody’s gave us such a generous stay of execution should have sent strong signals to the ANC government that we urgently needed to clean up our act but it clearly didn’t.
___STEADY_PAYWALL___
State owned enterprises continued to limp along inefficiently, bailed out by what was assumed to be a never-ending torrent of tax payer money. Municipalities defaulted on paying for electricity and the government just looked away. Municipal services in places like Harrismith collapsed completely while smiling buffoons who managed to grab themselves cadre positions well beyond their capabilities continued to draw a fat salary while doing nothing.