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"Go South, Young Man": The Africa Scramble

Tyler Durden's picture


While those in the power and money echelons of the "developed" world scramble day after day to hold the pieces of the collapsing tower of cards in place (and manipulating public perception that all is well), knowing full well what the final outcome eventually will be, those who still have the capacity to look, and invest, in the future, are looking neither toward the US, nor Asia, and certainly not Europe, for one simple reason: there is no more incremental debt capacity at any level: sovereign, household, financial or corporate. Because without the ability to create debt out of thin air, be it on a secured or unsecured basis, the ability to "create" growth, at least in the current Keynesian paradigm, goes away with it. Yet there is one place where there is untapped credit creation potential, if not on an unsecured (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. The place is Africa, and according to some estimates the continent, Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.

Africa is precisely where the smart money (and those who quietly run the abovementioned "power echelons"), namely China and Goldman Sachs, have refocused all their attention in the past year precisely because they both realize that Africa is the last and only bastion of untapped credit growth and capacity. But you won't read about it in the mainstream papers: the last thing those who are currently splitting up Africa into its constituent parts want is for the general public to become aware what is in play. You will, however, read about it on these pages (see here and here and here). Also, if you are a Goldman client, you will certainly know all about it, as the firm ventures out with reverse inquiry indications of interest to its wealthy clients giving them the right of first equity refusal, and slowly but surely providing "financial services" to the last great hope for the developing world, which ironically is what most still consider the poorest continent...

Africa in geographical perspective...

And in every other, from Goldman Sachs:



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Sat, 10/27/2012 - 13:34 | 2923960 SilverDoctors
SilverDoctors's picture

yes, time to build up the 3rd world, and then ensure they store their gold reserves at the NY Fed to make up for Germany and now the Netherland's repatriation requests!

Sat, 10/27/2012 - 13:39 | 2923972 DoChenRollingBearing
DoChenRollingBearing's picture

Excellent reporting SilverDocs!  + 1

Are we getting any hints now?  Stack physical PMs!

Sat, 10/27/2012 - 13:55 | 2924013 Popo
Popo's picture

The world ends in Africa.

It's the last emerging market. After that there is no expansion left. and when the expansion stops, the fighting begins.

But even if that werent the case (and it is) the bankers are making a critical mistake if they thtnk Africa can be industrialized like Asia. The cultural differences are huge. Africa is where the current breed of corporate / banker colonialists will have their Waterloo. Africa can not, and will not be held.

Hedge accordingly,

Sat, 10/27/2012 - 14:07 | 2924039 WmMcK
WmMcK's picture

As/where it began, so/there it will end.
-- Some Mayan dude.

Sat, 10/27/2012 - 16:15 | 2924234 francis_sawyer
francis_sawyer's picture

Niggaz iz da same from 'Watts' 2 'Brooklyn'...

TRAV777 ~ can fs get some love?... Where are you in the hour of need?... The freshly minted 'PC' lot of ZH hasn't figured out yet that the BATTLE FOR MIDDLE EARTH is between the Jews & the Russo/Chinks... That's why I pack my .45...

"Ain't no bloodin' ain't no crippin ~ ain't no punk ass niggaz set trippin'"...



Come on y'all let's take a ride
don't you say shit just get inside
It's time to take your ass on another kind of trip
cause you can't have the hop if you don't have the hip
grab your gat with the extra clip and,
close your eyes and hit the switch
We're going to a place where everybody kick it
kick it, kick it, yeah, that's the ticket
ain't no bloodin', ain't no crippin'
ain't no punk-ass nigga's set trippin'
everybody's got a stack and it ain't no crack
and it really don't matter if you're white or black, I
wanna take you there like the Staple Singers
put something in the tank and I know that I can bring ya
If you can't take the heat get yo' ass out the kitchen
we on a mission
Come along and ride on a fantastic voyage
slide slide slippity-slide
with switches on the block in a '65
Come along and ride on a fantastic voyage
slide slide who-ride
no valley low enough for mountain high

I'm tryin' to find a place where I can live my life and
maybe eat some steak with my beans and rice, a
place where my kids can play outside
without livin' in fear of a drive-by
and even if I get away from them drive-by killers
I still got to worry about those snitch-ass niggas
I keep on searchingc and I keep on looking
but niggas are the same from Watts to Brooklyn
I try to keep my faith in my people
but sometimes my people be acting like they evil
you don't understand about runnin' with a gang
cause you don't gang bang, and
you don't have to stand on the corner and slang
cause you got your own thang
you can't help me if you can't help yourself
you better make a left

Come along and ride on a fantastic voyage
slide slide slippity-slide
I do what I do just to survive
Come along and ride on a fantastic voyage
slide slide who-ride
that's why I pack my .45

Life is a bitch and then you die
still tryin' to get a peace of the apple pie
every game ain't the same, cause the game still remains
don't it seem kinda strange, ain't a damn thing change
if you don't work then you don't eat
and only down-ass niggas can ride with me
hop-hop-hop your five quickly down the block
stay sucka-free and keep the busters off your jock
you gotta have heart son, if you wanna go,
watch this sweet chariot swing low
ain't nobody cryin'` ain't nobody dyin'
ain't nobody worried, everybody's tryin
nothin' from nothin' leaves nothin'
if you wanna have something, you better start frontin'
what ya gonna do when the 5 roll by
you better be ready, so you can ride

Come along and ride on a fantastic voyage
slide slide slippity-slide
when you're living in a city it's do or die
Come along and ride on a fantastic voyage
slide slide who-ride
you better be ready when the 5 roll by
just roll along- that's what you do
just roll along- that's right
just roll along- that's what you do
just roll along- that's right
do you want to ride with me, do you want to ride with me
do you want to ride with me,do you want to ride with me
do you want to ride with me, do you want to ride with me
do you want to ride with me,do you want to ride with me

Sat, 10/27/2012 - 20:30 | 2924629 deKevelioc
deKevelioc's picture

Hate to rain on a parade, but $10 trillion ain't enough to dig the world out of a collapsing $1.2 quadrillion of tier-three assets.

Sat, 10/27/2012 - 20:31 | 2924632 SGS
SGS's picture

Sooooooooo, when Africa has been rapped and pillaged by you know who, then what...?  Does conquering the moon hold $44,000,000,000,000,000,000 in collateral?  Mars.  Its must be Mars then.

Sat, 10/27/2012 - 14:51 | 2924111 markmotive
markmotive's picture

Africa is the last continent to be fully raped by mankind. Sure we've done our damage, but there so much more work to do.

In a peak oil world, the world will scramble desparately as children starve and 401k plans implode.

Sat, 10/27/2012 - 15:50 | 2924202 cynicalskeptic
cynicalskeptic's picture

Seems like the economic (as well as actual) raping and pillaging have been going on for some time - I suspect that much of the continent's assets have already been pledged against IMF and other outside loans.

Sat, 10/27/2012 - 16:29 | 2924285 Stock Tips Inve...
Stock Tips Investment's picture

From my point of view, there is no doubt that the world is changing. And changing rapidly. There are numerous studies that show that as of 2015, 5 of the 10 fastest growing economies will come from Africa. Not that these countries have all their problems solved. However, the experience of many years of economic mismanagement, seems to have left some lessons. Considering the African countries that are doing a good job, with Latin America that are also doing (Brazil, Mexico, Colombia, Peru, Chile, Panama, Costa Rica) and the fast-growing countries in Asia, and the Middle East, it will be appreciated that a good portion of the world population is living in fast-growing countries. Asia and Middle East, focused much population. And these countries are growing quickly and solidly. What I mean by this is that probably the success (or failure) of many companies in USA and Europe depend on the success (or failure) that have to sell in all these countries. The world is changing and we have to go further to sell our products and services. Without understanding this fundamental change, we can not survive commercially in the future.

Sat, 10/27/2012 - 15:50 | 2924201 Fox-Scully
Fox-Scully's picture

Sorry, but you forgot Antartica

Sat, 10/27/2012 - 16:38 | 2924311 falak pema
falak pema's picture

ANd Atlantis if you can find it under the sea! 

Sun, 10/28/2012 - 02:28 | 2924595 honestann
honestann's picture

Atlantis was a few miles off San Francisco the last time I checked.  :-)

Sat, 10/27/2012 - 17:03 | 2924348 Coke and Hookers
Coke and Hookers's picture

Good point. There are several very resource rich areas that have not yet been raped, pillaged and securitized. Antartica is certainly one but the Arctic region and Greenland are also on the menu. There's a mad scramble for the arctic by Canada, Russia, Norawy and others - with the EU trying to get their snouts in the trough through Iceland and Greenland. China has also been showing interest, particularly in Greenland. Greenland may have seriously massive resources; gold, uranium, all kinds of metals and oil.

Sun, 10/28/2012 - 03:10 | 2924909 billsykes
billsykes's picture

its like afghanistan times a continent.

Sun, 10/28/2012 - 22:40 | 2926677 13thWarrior
Sat, 10/27/2012 - 14:39 | 2924097 Silver Bug
Silver Bug's picture

Growth in the resource sector of Africa is exploding. China is investing massive amount of money to secure those resources.

Sat, 10/27/2012 - 17:54 | 2924361 Rochefort10
Rochefort10's picture

How might that affect the paper gold market ala Greenspan?


mmmm, somehow this comment ended up down here. The question was in relation to SilverDoctor's comment re the repatriation of gold

Sat, 10/27/2012 - 13:40 | 2923966 DoChenRollingBearing
DoChenRollingBearing's picture

Africa is still too risky for me.  Peru is enough geographical diversity for me.

Go ahead Goldman!  You and China go for it!  

Goldman and China have plenty of the culture of corruption necessary to succeed in Africa!  But, woe to you if Africans themselves clean up their act!

Sat, 10/27/2012 - 13:40 | 2923975 PUD
PUD's picture

Not content until every last square meter and every last living soul is raped.

Sat, 10/27/2012 - 14:17 | 2924061 john39
john39's picture

that is how the locusts operate.

Sat, 10/27/2012 - 16:34 | 2924298 francis_sawyer
francis_sawyer's picture

only "zionist" locusts... NOT & NEVER "jew" locusts...

Sat, 10/27/2012 - 13:40 | 2923976 michael_engineer
michael_engineer's picture

Adding Canada or Russia overswamps the African continent.

Sat, 10/27/2012 - 15:59 | 2924221 Pure Evil
Pure Evil's picture

Hell, just add Alaska and the bitch will sink like the Titanic.

Sat, 10/27/2012 - 13:40 | 2923978 Belrev
Belrev's picture

This is silly idea. As soon as you build up things there, hordes of negros will quickly destroy all of it. Just look at black neigborhoods in USA or Europe.

Sat, 10/27/2012 - 14:09 | 2924043 Urban Redneck
Urban Redneck's picture

Don't confuse Africans with "African-Americans" who most certanly are not African.

Sat, 10/27/2012 - 15:04 | 2924133 wee-weed up
wee-weed up's picture

What about the Kenyan-American? Certainly everything he touches turns to shit!

Sat, 10/27/2012 - 16:01 | 2924227 Urban Redneck
Urban Redneck's picture

For a supposed anti-colonialist- he was all for supressing the Mau Mau uprising a few years ago, but then- what would one expect from a Luo?

Sat, 10/27/2012 - 18:32 | 2924488 Walt D.
Walt D.'s picture

So what if we decide to back our currency with crap, at a par value of one dollar to one pound. We owe $16 trillion dollars. That is a ton of crap for every person on the planet.  OK, both Obama and Romney are full of it - but not that full! 

Now we see why the problem of fiat money is intractible.

Sun, 10/28/2012 - 00:14 | 2924833 wee-weed up
wee-weed up's picture

Junked by the Obama apologist, yet again! He/she never has the guts to post - just junk!

Sat, 10/27/2012 - 15:40 | 2924189 adr
adr's picture

I don't know; Angola, Uganda, and Somalia could be interchanged with Detroit. Maybe that is why Detroit looks that way.

Sat, 10/27/2012 - 17:38 | 2924407 RiverRoad
RiverRoad's picture

Can't wait to watch the African Muslims sic themselves on the Chinese.

Sat, 10/27/2012 - 13:41 | 2923980 hannah
hannah's picture

what good is it to own raw materials when the developed world cant get credit to buy stuff....denial denial denial.

Sat, 10/27/2012 - 13:42 | 2923982 Segestan
Segestan's picture

PC .........bullshit.

Sat, 10/27/2012 - 13:42 | 2923983 Michelle
Michelle's picture

Well I'll be damned! What the hell is up, Tyler? You removed the entire article with my post and I thought the BLS was bad!

Sat, 10/27/2012 - 14:02 | 2924027 Tyler Durden
Tyler Durden's picture

Perhaps you should learn how this 'interwebs' thing works before you make silly accusations - your comment can be found in the original article which was merely unhooked.

As to your suggestion, the referred Felix Salmon article is the usual rambling mish-mash of irrelevant observations, confused facts and outright misinterpretation of reality by a journalist with zero credit background, and who has gotten virtually nothing correct in the past 5 years - for some amusing examples see here, here and here (but has some tremendous insights on book cover fonts).

The only thing that matters, and will matter, is the contractual obligation divergence of local vs non-local bonds as we explained first in January, and as Lee Buccheit confirmed last week. As to Argentina, this has been a priced in non-event for a long time. Will they default: quite possible, although not probable as the financial system has reached an equilibrium where creditors stand to lose more by forcing debtors into default as that exposes the insolvency and the interlinkages of the entire world - the bonds are merely pricing in a return to reality. That's not the point. The point, as what Paul Singer is actually engaged in, is taking advantage of a strong-covenant bondholder paradigm to enforce creditor protections. Everything else, circuit and appeals court decisions, is absolutely meaningless, as no court of law can supersede the strong covenant indenture as that would undo roughly $60 trillion in bondholder arrangements. As such the Argentina case is completely irrelevant for the time being.

What is relevant, is for readers to reacquaint themselves with the subordinatiuon paradigm as the only thing that matters and will matter, is who is the junior-most bond in the sovereign capital structure, and will thus be progressively impaired once the sovereign defaults resume. As Buccheit explained recently:

"Notwithstanding this revulsion to a debt restructuring, if one becomes unavoidable the process will be facilitated -- as it was in Greece -- by the high percentage of local law instruments in the affected debt stock"

And that is all that matters: the local vs non-local bond divergence, which those who actually have been following our writing, is something we have discussed virtually every month in 2012.

Sat, 10/27/2012 - 14:33 | 2924084 Michelle
Michelle's picture

Tyler, my bad, thanks for the clarification on both ends. Can you repost this explanation into an article for all? Definitely worth revisiting imo.

Sat, 10/27/2012 - 14:57 | 2924126 Yen Cross
Yen Cross's picture

 Compliance is another boring, understaffed website!

Sun, 10/28/2012 - 03:22 | 2924913 billsykes
billsykes's picture

your comments are always better than your commercials



Sat, 10/27/2012 - 13:47 | 2923991 lolmao500
lolmao500's picture

$5-10 trillion in new debt... that ought to give Bernanke and Draghi at least another year!!

Sat, 10/27/2012 - 13:47 | 2923992 Eally Ucked
Eally Ucked's picture

Yeah! go for it!

"The place is Africa, and according to some estimates the continent,Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral."

They don't know them yet there! Lets fuck all those bushmen!

Sun, 10/28/2012 - 00:50 | 2924844 mkkby
mkkby's picture

Most locals won't even know what happened.  Africa will not be industrialized.  It will just be stip mined and abandoned.  It would be too expensive to secure large swaths of territory, build the infrastructure and educate/train the locals.  So it won't happen.

Sat, 10/27/2012 - 13:48 | 2924000 AnAnonymous
AnAnonymous's picture

There is zero growth possible coming from Africa: all the wealth is already allocated to sustain 'american' nations or wannabee 'american'nations in their way of life.

Put the same map 100 hundred ago and the share allocated to European countries would be the majority of it.

As Europe seems to be the elected one to be the required sacrifice among the big consumers, this share is now redistributed over some other countries.

The most important point: all the resources of Africa is already allocated and every forecasting schedule show that 'americans' only make a matter of time the consumption of these resources. It is a store that is known to be consumed in the future to support 'american' nations.

Therefore no growth.

The only place of growth possible: central Asia, where USSR used to lie.

Reason: while communists were inept at consuming the wealth from these places, they were able to withdraw it from the 'american' consumption pattern.

As a result of the fall of USSR, these resources are still not allocated for the most of them. There is room to expand.

Africa is just a game of musical chairs, which show shifting between benefactors of the african wealth, Europe is clearly losing ground while other 'american' or wannabee 'american' nations are taking the seats.

Sat, 10/27/2012 - 14:47 | 2924107 Peterus
Peterus's picture

Thin is an exercise in ignorance, not even a comment on this article.

Sat, 10/27/2012 - 13:49 | 2924002 logos5
logos5's picture

The trouble with Africa is that it's full of Africans.

Sat, 10/27/2012 - 14:03 | 2924029 WmMcK
WmMcK's picture

And the trouble with enginnering firms is that enginners work there.
(so it's hard to sell them insurance a/o securities)
Forget about discussing PM's with them completely.

Sat, 10/27/2012 - 16:36 | 2924307 cardis
cardis's picture


let me add: from bare feet straight to 747 and now 380.  

Sat, 10/27/2012 - 17:34 | 2924398 logos5
logos5's picture

My comment was a variation of what Longshank

(king of England) said of Scottland in the movie

Brave Heart.

Sat, 10/27/2012 - 13:55 | 2924012 The Shootist
The Shootist's picture

The only thing China is doing is raping them of Uranium and other rare earth elements. The only thing the ANC is doing is becoming more like their ZANU friends. The only thing the U.S. is doing there is misallocating resources there.

Sat, 10/27/2012 - 15:19 | 2924161 laozi
laozi's picture

Not true. The Chinese involvement in Africa is serious as hell. They move there. Open stores. Cultivate the land (using mostly African labour). Using every trick from the book to get the good deals.

Africa is a gift from God for China. But they do NOT care much for Africans.

Sat, 10/27/2012 - 16:07 | 2924235 squexx
squexx's picture

China wants land and resources, they have said as much publicly. The Chinese are some of the biggest racists on the planet and destroyed 50-70 million of their own under Mao. Do you think they will hesitate for a second not to destroy any Africans in their way of either?

After the West loses power and China has a free hand, Africa will cease to be a black continent and become a yellow one!

Sun, 10/28/2012 - 22:41 | 2926685 marxist
marxist's picture

The conjuring wizard of global capitalism is an Anglo-Saxon lawyer. Understand that basic pronciple and you may stand to benfit handsomely from the next wave of globalisation (assuming you are in the US or the UK).

Sat, 10/27/2012 - 23:37 | 2924809 The Shootist
The Shootist's picture

That's what I'm trying to say. It wouldn't be a bad thing if the Chinese weren't well, Chi-coms. But, I think they might be moving away from communism, funny how shit happens.

Sat, 10/27/2012 - 14:03 | 2924031 Urban Redneck
Urban Redneck's picture

This is what passes for sophisticated investment insight into Africa?  Does these people have anyone on the ground in Africa or any idea of who is winning contracts? Their investment thesis seems to revolve around larger foreign companies with a marginal exposure, the upside of which is more than outweighed by the downside risk of their non-African exposure. Goldman clients deserve to lose their shirts if they that presentation is advice worth committing their their resources to.

Sat, 10/27/2012 - 14:37 | 2924091 Tyler Durden
Tyler Durden's picture

When one considers that Greece currently has roughly €1 trillion in fully blended debt exposure (including contingent liabilities), or about 90% more than its can realistically sustain, it is quite amazing how much debt capacity the "sophisticated" parties can come up with if they put their minds to it. And since there is no other place left in the world left for incremental debt growth, it will not be Goldman's clients but the world's taxpayer stuck with losing their shirts from the downside case once the African peak leverage bubble pops. The question is what happens from now until said peak.

Sat, 10/27/2012 - 17:02 | 2924190 Yen Cross
Yen Cross's picture

You are far too generous. Lets discuss ECB and BIS debt loads?

The sovereign undisclosed debt loads, and lack of any tangible, collateral.

Sat, 10/27/2012 - 23:11 | 2924191 Urban Redneck
Urban Redneck's picture

If one wants exposure to the (inevitable) growth of debt paper in Africa, there are a number of African banks with foreign listings. There is also a subset of the major commercial banks with a strong existing footprint in Africa. But for the "brains" behind the notion of the BRICS not to point out that that the B & R of that group are the most levered to Africa, is almost negligent (in fairness- it is hinted at in the interview with the guy from Stanbic). If you through the fine print of the E&P portion of the proposal they actually mention some good firms that are primarily a play on Africa, then when you read list of BIG IDEAS at the end, instead of selecting a firm like Tullow, Goldman's big idea is SCHLUMBERGER (almost as if they had an existing position they were trying to get out of)... At the end of the day Africa is high risk, and should be high reward (as opposed to the all-or-nothing insanity of "investment" in Greece). It's both sad and short-sighted that  Goldman is simply pushing more listed paper. Given the scale mismatch between between African and Western investments, the average US accredited investor could singlehandedly take the equity component of the average African VC offering, along with a Goldman coupon for a "discount" investment banking services on a future IPO, everyone would win, but that's not their game.

Sun, 10/28/2012 - 22:55 | 2926729 marxist
marxist's picture

A new wave of value adding utilising all asset classes with the capacity for expansion, of which there are numerous on this planet, if you care to look.

Western real estate was the last vehicle for the expansion of Chinese surplus value, for example.

Sat, 10/27/2012 - 14:05 | 2924037 q99x2
q99x2's picture

Pretty much if Africa has been left alone for this long there is a reason. Paint the lipstick on the pig and sell it. Africa is a mess.

Sat, 10/27/2012 - 14:12 | 2924050 rbg81
rbg81's picture

Actually, Africa hasn't been left alone.  From the late 50s through the 70s, banks lent a lot of $$ to soverign African nations.  The conventional "wisdom" was that they were emerging countries, rich in natural resources, who could easily pay that $$ back as they grew.  OOps.  The banks had to write down most, if not all, of those loans.  I guess what's old is new again because people simply don't remember what a cluster fuck Africa was the first time 'round.

Sat, 10/27/2012 - 15:24 | 2924167 The Shootist
The Shootist's picture

Just watch 2016: Obama's America. His Kenyan Brother says he wished the whites had stayed around longer, things would be better for everyone. That's why he thinks the Zimbaweans, South Africans, and perhaps Namibia have fared better. Speaking of the Namib, that plays seems to be doing pretty well. I woudn't mind visiting there and fearing too much.

Sat, 10/27/2012 - 15:26 | 2924173 laozi
laozi's picture

As I understand it the loans started out as low interst loans, but quickly got an interest of 20% as the global inflation started. IMF hunted these poor countries rather sucessfully for a long time before the defaults started.

Sat, 10/27/2012 - 14:43 | 2924101 BigE
BigE's picture

You may be interest to know World Economics has been running a monthly survey, a lot like the PMI's covering all of Africa for some time now. It's known as the SMI.

As this point it doesn't show very much other than the African economy on a whole is growing at a stung pace.

Sat, 10/27/2012 - 14:43 | 2924104 Piranhanoia
Piranhanoia's picture

This is so 1590's

those who still have the capacity to look, and invest, in the future

The Locusts

Sat, 10/27/2012 - 15:02 | 2924136 Yen Cross
Yen Cross's picture

Forage South, ye young "hominids".   The land of plenty awaits you.

  Mining strikes, and the butcher of "whitey".

Sat, 10/27/2012 - 15:19 | 2924159 janus
janus's picture

i've got one word for you young ZHealots...Africa...enough said...think about it.


i've been waiting for you to shed some light on the 'dark' continent for these youngens.  simply put, there is no better opportunity on earth. 

from what janus has been able to put together, senegal is the best place to begin.  i, for one, am excitedly anticipating the death of robert mugabe (and have been for some time now).  rhodesia is one of the world's last remaining edens.  the soil, the climate, the's a paradise.  and when considering africa, it is VITAL to understand the charecter of the various tribes, how they interact, their respective roles under colonial governance, and the sources of their convoluted enmities.  it can be confusing, but any sort of familiarity with these issues will yeild immense rewards.

africans are NOT some sort of homogenous 'people'.  they are as diverse as the peoples of europe; only moreso...much, much moreso.  one tribe can be war-like, duplicitous, barbarous...just fuckin despicable; and another, with almost identical physical features, living a few hectares away, can be the diametric opposite.  the point is, you wanna avoid the former and hew closely to the latter. 

the good africans (which are the vast and overwhelming majority), are the most generous, gracious, humble, sweet-natured people one would hope to encounter (especially in the south-southeastern quadrant...really, starting in kenya and going down to s. africa, the peopl are amazing.  western africa can be nettlesome.  in other words, nigeria is bout to fuckin explode.  and this is the center of 'western' operations on the continent.  we've ceded the best parts to the sinoman.  but i have to disagree with one element of your spherical influence map, TD.  s. africa is still well within the pervue of the anglo-american superstructure.  s. africa is still, at least at this point, one of china's they'd love nothing more than to seal off everything from kenya to the cape of good hope.)  fortunately for us, the africans prefer dealing with american/brits than with the chinese.  africans do not hate white people; the relationship is far more complex than most will allow.  there are things i'd love to share, but i feel that many would misinterpret what i'd like to say.  i'll just say this: white boy, git yer ass over to sub-saharan, dress in kakai slacks and an oxford-blue button up (deck shoes), be humble but NEVER too familiar, and just see what happens.  i think you'll find yourself SO well received.  so incredibly well received. 

furthermore, and i'll close with this (college football saturday, bitchez!), inasmuch as we are entering phase I of The Global Economic Apocalypse (heretofore referred to as GEA), it would behoove any of you who've contemplated such adventure to situate yourself in an area already familiar with the trials of subsistance living.  people who don't have as far to fall (africans cannot fall much further), will endure the privations to come, if only because the entire course of their life has consisted of nothing but privation, with relative ease -- and they know how to improvise in times of dire need. 

TIA (This Is Africa), bitchez!

and if you do go, remember that, while profit is important, africa is not to be raped! it is to be developed, cultivated...loved!  maybe this time we can treat the people and places as a tresured bride to cherish rather than a cheap whore to ravage.  crazy, i know.  but this is the inception of the New Age; so maybe some new approaches are in order.

vidi vici amavi,


Sat, 10/27/2012 - 15:38 | 2924185 laozi
laozi's picture

Thank you Janus for your information. Most people post opinions, and I already have one of those. Thanks!

Sat, 10/27/2012 - 16:03 | 2924232 Uncle Remus
Uncle Remus's picture

"A new life awaits you in the offworld colonies..."


Sat, 10/27/2012 - 16:23 | 2924270 FishHockers
FishHockers's picture

It will be turned into one Giant Detroit.

Sat, 10/27/2012 - 16:29 | 2924276 dumpster
dumpster's picture

why look to the extreme of debt leverage?. produce , create savings increase capital,  many billions can find a higher standard of living .

Why ontinue to savage the population with debt instruments ?  Stop the crappy keynesian experiment that gives us war , poverty, unemployment.  Let africa become a model for growth along with china, India yadda .

Growth comes on the steady savings of a population that works.  but like a frog in heat the brain cells will keep the game going until that last froglet has been raped silly and the world is full of tadpoles of ignorence .

Even the large brain power still thinks in past paradimes of waste, central planners, who owns the engine of productivity, not the state or the central bankers.


Sat, 10/27/2012 - 23:40 | 2924811 BooMushroom
BooMushroom's picture

If the citizens of ZeroHedgeia took over Africa, you would see hard money, sustainable agriculture, growing co-ops, mining and drilling, savings, investment, and peace through strength.

But it won't be Tyler, it'll be Bernanke and Berlusconi.

Sat, 10/27/2012 - 17:27 | 2924386 alamoillini
alamoillini's picture


GS find another sucker's bet and a way to gather fees, put your $$$ at risk in African and then never get them out or back......history of Africa is that the only benefactors were the sovereign kings and queens who colonized Africa....



Sat, 10/27/2012 - 17:32 | 2924396 cardis
cardis's picture

@The Shootist

They are doing the same thing the English, Dutch, Portuguese, French + others did.

And, they are doing much better than WB/IMF did.

In the meantime en attendent for more news from TD on Gold peas I go back to my popcorn and tune to "Et maintenant" or "Hier Encore".

Sat, 10/27/2012 - 17:34 | 2924399 Walt D.
Walt D.'s picture

Africa is shaped like a giant toilet bowl.....just waiting for billions of dollars to be flushed. Time for another WilliamBanzai7 cartoon.

Sat, 10/27/2012 - 17:58 | 2924443 css1971
css1971's picture

You realise this could be considered, desperation.

Sat, 10/27/2012 - 18:05 | 2924456 The Unabonger
The Unabonger's picture

You can be assured that the African business press cannot acknowledge any potential downsides to this, at all 

Sat, 10/27/2012 - 20:00 | 2924583 honestann
honestann's picture


Of course, the predators have always had a way to deal with people who refuse their debt.  They find some clueless moron who DOES NOT own what they want, and offer him a small pile of wealth to sign a document that "sells" that wealth to them.  They then assign their military to enforce the "agreement".  This is precisely the model of "selling the Brooklyn Bridge", and has been the model just about everywhere... with the "American Indians", with the "New Zealand Maori", with the "Australia Aborigini", and dozens of other examples.


The predators-that-be will strip you bare.

Sun, 10/28/2012 - 15:39 | 2925688 Tortuga
Tortuga's picture

you fergot: the English Anglo's, the Irish, the Scottish, the German barbarians, the chinese (musn't forget Ghengis), the joooooooos, gypsies and mentally ill of Rusia and europe, the poles, the french, the indios of South American and Mexico and central America,  yada, yada,yada, kiss my royal Texas ass, commie. USA rules and the rest of the world sucks hind tit or gets a check from Hilry, borrowed from Japan of course.

Sat, 10/27/2012 - 22:36 | 2924764 Go Tribe
Go Tribe's picture

Sorry, not pouring my money into the dark continent. mama obama stands ready to take your cash there. Just like in America!

Sun, 10/28/2012 - 15:33 | 2925666 Tortuga
Tortuga's picture

And with no donation money filters on the Obummer for President website to refuse illegal FOREIGN CASH donations, "mama obama stands ready to take your cash" HERE. If the average man and woman in that country had any cash.

Sat, 10/27/2012 - 22:37 | 2924767 Akrunner907
Akrunner907's picture

Hmmm, the article was removed?  

Sun, 10/28/2012 - 02:42 | 2924897 silverdragon
silverdragon's picture

The Chinese are in almost all African countries, trading, building infra structure involved in agriculture and mining. The upside for Africans is they let whomever is in power do as they wish.

Wikipedia has China as Africas largest trading partner with trade of 166 billion in 2011 and growing at about 20% pa.

Hard to believe we in the west are finally waking up, pretty f*ckin sad really.

Sun, 10/28/2012 - 06:23 | 2924970 BigDuke6
BigDuke6's picture

Dunno about waking up, adventurers have been trying their luck there for centuries.

China just suits Africa better

They understand that the African works better with boot and fist.

The west dont get anywhere because they spare the rod.

Sun, 10/28/2012 - 15:26 | 2925644 Tortuga
Tortuga's picture

Yea, I can tell you are a real student of history. The west woke up, pretty f*ckin long ago about the African cesspool, except for maybe Santa.

Sun, 10/28/2012 - 23:14 | 2926769 marxist
marxist's picture

The Chinese intelligensia truly understand the globalisation dynamic of capitalism....the Russians on the other hand fell into the incorrect interpretation of Stalinist statism.

Capitalism will globalise notwithstanding. Of course, reactionary mini-capitalists who have no real stake in the globalisation process will argue otherwise with all manner of petty reaction.

Sun, 10/28/2012 - 03:38 | 2924917 thanks for all ...
thanks for all the fish's picture

Having invested and worked in sub-Saraha Africa for years it is true that the Chinese are investing significant funds into mainly mining and resource projects.  This includes the state and private individuals.  It is also true that the people of Africa are not fond of the Chinese and only agree to thier investments because it means jobs.  HOWEVER, the Chinese will learn that if they do not respect the Africans, the Africans will turn against them.  The Chinese can not treat the Africans like thier Chinese workers in China. This has been demonstrated to the Chinese at a number of mines in a violent way.

If you ask an African which country they would like to see more investment it is the US.  (BTW I am not a US citizen). It is likely too late now as the US has ignored Africa in a commercial way.  However, if they understood what was happening with the US currency, they may change thier minds.



Sun, 10/28/2012 - 15:24 | 2925639 Tortuga
Tortuga's picture

Yea, I can see how the US ignored Africa in a commerical way because about $5 trillion of USA treasure has been sucked up/wasted and or stolen on that good for nothing continent. As for the Chinese  " will learn that if they do not respect the Africans, the Africans will turn against them." Shit, the Africans don't respect themselves much less anybody else, yellow,brown,white, green.

Sun, 10/28/2012 - 22:38 | 2926659 marxist
marxist's picture

You should pay a visit to Afro-Caribbean island, the Caymans. Capitalism has established itself quite well on the place.

Sun, 10/28/2012 - 11:46 | 2925250 Bansters-in-my-...
Bansters-in-my- feces's picture

"copyright" bitchez...

Sun, 10/28/2012 - 15:29 | 2925652 Tortuga
Tortuga's picture

Yes, I can see it now, democratically elected governments instituting the rule of law and collecting TAXES from the sustinence farmers that annually knock down $6 or $8 bucks, cash money, lining up to pay back $10 trillion dollars. LMAOROG.

Sun, 10/28/2012 - 22:33 | 2926647 marxist
marxist's picture

In a nutshell, Africa, with its combination of an urbanising and growing populace, severe shortfall of infrastructure, strong resource base as well as expanse of as yet undervalued territory, is ripe for the picking in terms of the accumulative potential of its surplus value.

It offers the same potential as did Maoist China in the heyday of Maoist-capitalist rapproachment without none of the disadvantages of say India or Russia with their strong tendency towards protectionism.

In other words, we are on the brink of a new wave of opportunity for Anglo-Saxon based global capitalism.

This will be evident to the smart capitalist. Of course, the parochial dependents in our midst will continue to cry foul as more jobs are lost in this inevitable and objective process.

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