How long will South Africa last?

“THE short answer to the question that is the title of RW Johnson’s new book, How Long will South Africa Survive?, is roughly two years.
That is when, he suggests, given the increasingly dire state of the economy, the country, cap-in-hand, will approach the International Monetary Fund for a bail-out which, in turn, will result in a regime change of some kind.
It’s a scenario he unpacked at the Cape Town Press Club recently as part of the hurly burly of public engagements to promote the book. It will more or less be like this:
Unemployment would continue to soar. The budget and trade deficits would continue to rise. Foreign investment along with domestic capital would continue to leave the country. Downgrading by the ratings agencies would continue, resulting in the inevitable junk bond status. With that, the cost of our debt will sharply rise to a point where it may become impossible to service the debt at all.”

Read on http://www.politicsweb.co.za/news-and-analysis/south-africas-looming-crisis.

Advertisements

One thought on “How long will South Africa last?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s