SAFTU condemns ratings agencies and government policies and blames Government for creating conditions that allow unelected rating agencies to dictate policy
The South African Federation of Trade Unions is angered that credit ratings agencies S&P Global and Fitch have downgraded South Africa’s credit rating to full junk status, and Moody’s has placed the country on review for downgrade.
It is outrageous that these unelected enforcers of the big multinational monopoly corporations can wield such power to force governments to bend to the will of the rich and powerful, and use downgrades to blackmail them into carrying out policies which will bring even more misery to the working class and the poor.
These agencies exist to protect and advance the capitalist system and the profits and privileges of the ruling class. They represent an economic monopoly capitalist system which is corrupt to its core, which we see with the news that more and more international companies are proved to have been collaborators with the corrupt South African politicians and SOE officials.
The immediate consequences are sure to be still more job losses, as international companies and banks respond by withdrawing investments in South Africa and cancelling plans for future investment. An economy already imploding is likely to go into free-fall, with catastrophic consequences for the mass of the people.
For a country in which unemployment, at 36.85% by the broader definition, is six times the world average, 26% of the population are hungry on a daily basis and half of all South Africans do not have sufficient access to affordable, nutritious and safe food to meet basic health requirements, the effects of this downgrade will be devastating.