Out with the old, in with the not so new (or clean)
Article was first published on libcom https://libcom.org/news/out-old-not-so-new-or-clean-16022018
In South Africa, for white and international capital the last few weeks have been a period of rejoicing due to Ramaphosa being elected as ANC President. Zuma’s days as the State President are now also over. He was recalled by the ANC and in doing so he was forced to resign; leading the business elite to feel an even greater sense of smugness.
The bitter faction fights within the ANC, therefore, have seen Zuma defeated and his erstwhile supporters – a section of BEE capital and parasites in the top of the state - placed squarely on the back foot.
The slate that Ramaphosa won on was the promise to eradicate corruption within the state and the ANC. The tone that accompanied this was that Zuma would be removed from the Presidency and that he may even be prosecuted, along with the Guptas, for his role in ‘state capture’. The ANC itself is hoping that such moves will reverse its ailing fortunes and bolster its election campaign in 2019. Its alliance partners, the SACP and COSATU, are also opportunistically hoping Zuma’s exit from the state will give them a new lease of life politically; and that their leaders will be able to hold onto their cushy and ridiculously well paid jobs in the top echelons of the state under Ramaphosa, which were initially handed to them by Zuma for their backing in Polokwane in 2007.
Read more: Out with the old, in with the not so new (or clean)
Bubble will burst and states will have no quick fixes
First published: https://www.businesslive.co.za/bd/opinion/2018-02-13-bubble-will-burst-and-states-will-have-no-quick-fixes/
When the crash becomes a reality, the political and social consequences will be chaotic and very uncertain.
In early January, capitalists across the globe were celebrating the fact that the Dow Jones had rallied by 45% since the election of US President Donald Trump.
Brokers were beaming in Sandton when the JSE hit a high of 61,475 points. Up a staggering 300% since early 2009, when it was 18,465 points. Yet beneath all the exuberance, danger signs abound, including signs that stock, bond and debt markets are experiencing bubbles that will burst at some point.
The danger derives from the reactions of the ruling classes and their governments to the crisis of 2008.
The paths they chose to follow to save and increase their wealth in the aftermath of the 2008 crisis have paved the way for a future crash that could dwarf the one of a decade ago.
The main thing currently keeping the global economy stumbling along — and not crashing down as happened in the 1930s — has been massive intervention by governments in the EU, US and China.
Read more: Bubble will burst and states will have no quick fixes