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Guest Post: Government Corruption Causes Mass Blackout
Submitted by Simon Black of Sovereign Man
Government Corruption Causes Mass Blackout
Around 11:15 this morning, I left my flat and headed towards the Cape Town Gold Coin Exchange to check out their kruggerrand prices today.
(Note: They charge around 10% over spot, and buy coins for about 1% over spot. This is inclusive for all major coins that they carry. They have kruggerrands, eagles, and maple leaf coins in stock.)
I was sitting at a red light not too far from the new football stadium they built for last year’s World Cup tournament, when suddenly all the traffic lights went out. I thought it was just a weird anomaly, so I proceeded cautiously.
By the time I reached the coin shop, I realized that the whole city was without power. Again. Entire buildings had shut down, stores closed, and schools let out. It was a full-blown blackout… and it lasted for several hours.
This sort of thing is not uncommon in South Africa. Politicians will tell you that electrical demand is outpacing supply because of the country’s rapidly growing economy. That’s one way to put it– lemons into lemonade.
But give that excuse to the nearly 50% share of unemployed youths… or the 1 in 6 people who don’t even have electricity, and you’ll get a slightly different view.
A few years ago, the major mining companies in South Africa approached the government with a clearly stated problem. South Africa’s power grid was failing… and without major investment and political attention to the issue soon, the mining companies wouldn’t have the resources they needed to continue producing.
Bear in mind that the mining sector is one of South Africa’s most important economic drivers. They are the nation’s leading employers and exporters, so you’d think that their pleas for critical infrastructure investment would be heeded.
Here’s the thing– political corruption is rampant everywhere. In the developed world of North America and Western Europe, though, politicians are skillfully subtle at their corruption.
Money rarely changes hands in the light of day, but rather gets funneled through campaign contributions, use of corporate perks, and special ‘consultancy’ fees upon retirement. These guys get their rewards under the table and after they leave office.
In South Africa, though, the corruption is blatantly obvious. It’s almost insulting. The politicians here must think their citizens are so stupid, they won’t notice massive financial aberrations.
Julius Malema is a great example. As President of the African National Congress Youth League, Malema draws a small government salary. Yet somehow he drives around in multiple $100,000+ sports cars and owns multi-million dollar homes.
As it turns out, Malema is the sole beneficiary of a mysterious ‘family trust‘ that is apparently bankrolling his lavish lifestyle. Local businesses that are awarded substantial government contracts are routinely found depositing funds into the trust account.
Nobody tries to hide corruption here. It’s outright theft in the light of day, and this is the real reason why the power keeps going out. Public funds are siphoned off or misallocated for private gain, and major infrastructure projects are routinely stalled as a result.
And so, a few hundred thousand people sat around in the dark today. It wasn’t the first time, and it won’t be the last. But it’s not just South Africa.
Much of the infrastructure in the developed world is in serious need of investment. But given at least half a dozen financially cataclysmic ‘Lehman events’ that are looming, (Greek default, Italy restructuring, further US sovereign downgrades, etc.), it’s unlikely that the necessary upgrades will be made… especially for public utilities.
Economics drive everything. People that have suffered through a devastating sovereign collapse (Argentina, for example) understand that flipping a switch doesn’t necessarily mean the lights come on.
Most people take these major systems for granted– that there’s gas in the gas stations, water in the pipes, electricity in the wires, food on the grocery shelves, cash in the cash machines, etc.
A real economic depression affects these major systems as well. Shortages, rationing, and outright failure are all possible. Is it the end of the world? No. Is it something to consider? Absolutely… unless you enjoy sitting around in the dark.
A big part of self-reliance is weaning yourself off total dependence on these major systems. This could mean a lot of things– planting a small garden; installing a solar array or generator; owning gold and silver coins; etc. Any of these options is worthy of your attention.
Personally, I’m taking things a step further. As I’ve mentioned before, we’re in the early stages of establishing a resilient community in central Chile where the scenery is stunning, the climate is warm (Mediterranean), and the soil is some of the most fertile in the world. Oh yeah, and the government leaves you alone too.
Just yesterday, in fact, I gave instructions for the farm crew to begin planting our first batch of organic crops (remember, the seasons are flipped in the southern hemisphere). We also have multiple sources of water and several ways to generate our own energy, including solar, hydro, wind, and geothermal.
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In USA local dealer - 3% above spot for canadian Gold maples. 10% is outrageous.
I paid 1.1% over spot last time I was at my coin dealer. Most of his spread is on the sell side; ~12% under spot. But I've never sold :-)
I also do not pay VAT or sales tax because I make a "currency exchange", trading cash FRNs for U.S. silver coins.
1.1% is great. where ? what do you get for that ? perthmint bars ?
I get common year, circulated silver dollars. Sometimes other 90% stuff.
You can always tell a Simon Black post. It has an excessive use of the word "I."
the excessive use of the word/letter "I" is fantabulous ...its the excessive use of the word "we" that is the fuking problem round here
the collective "we" gets used too much by President Absolute Bummer. The "we" gets used whenever a politician fuks up and wants our money to solve "our" problem in society! The collective is the biggest shithole in history, Govt its stumbling delusional Don Ceyote
Mr Black is out of political reach up a Chilean moutain in the rugged outback making his own living farming. Individualism is the only productive unit, it built America while "we" was used by Govt parasites to destroy every last stitch of its individual brilliance and bleed the I's to death using "we" as the socialists weasel word
Beats sucking on the State and whining doesn't it
Well done Mr Black. "I" is the best letter and indeed word in the dictionary.. the sooner the we's wake up and become I's the sooner this socialised shithole gets turned around
Compounds in other Countries.
1. muni-bribes dont protect you from the Federal Government.. so when they come looking for thier hand shake money..
2. organizing and bring a group of people together than can afford to be fined over and over again..
3. when sitting in jail, you will pay the fine(s).
4. They dont like you and they are just setting you up to rob you.
5. want green grass, water the grass you got.. stupid.
I am broke just to piss off the bankers.
Me too.
Simon Black, "Oh yeah, and the government leaves you alone too."
Never for long mate, never for long!
Govt is the hoarding of power in society/economy by a monopoly (institution). The exact opposite of freedom of the people. Govt staff are effected by a monopoly mechanism, the power goes to their tiny peanut-brained heads and they transform into little Hitlers sitting behind Govt desks thinking they know what's best for everyone else when in fact they know Jack-Shit.
Next stage (of corruption and the destruction of free society/enterprise) is they only feel they're 'doing their job' when they're bossing people around, so they have to constantly make new Rules/Laws. Witness the massive mushroom cloud explosion of Legislation across the Western World in the past 2 decades. Witness the warehouses crammed full of financial and banking regulations, rush of jobs as regulators and witness how this whole bloated shitshow does not work
The suicide-socialist Labour Govt of Britain passed 2,400 in their suicide-spending 13 years. They made over 50% of Joe Public illegal for some heinous petty crime or another at any point in time. See the more Laws the little Hitlers pass and the more of other peoples money they piss down toilets the faster the country goes down the sewer. Remember that? More Law and More Govt Spending leads to the destruction of society and the economy (see USSR, China, North Korea, Argentina, Greece and every other Govt-led country in history) not its enrichment or one iota of improvement
I could go on...
..but you know what's coming because you can witness this stinking institution in history and in the present day, Europe is a Spaghetti Bolognese of Govt Laws and Spending orgies.. More Govt = More Problems. More Laws = Less Freedom. More Spending = More Poverty
...it's only a matter of time for that Govt that "leaves you alone" to start ratcheting up their demands, their rules, their checks on you, their taxes on you until like Marxist-Socialist Greece you cannot scratch your arse without some little worthless Govt Hitler giving you a Licence permission to do so
The only way to stop Govt is to stop funding it. Stop Paying Your Taxes People. Zero Tax = Zero Govt ...simple stuff, remember that before your arse gets owned in Chile and your Freedom and Wealth disappears down a Govt constructed sewer described as "democracy" ..as it has done (yet again) right across Europe, in America, in Japan and in China
It's Just a LIttle Bit of History Repeating
Govt : the Biggest Social & Economic Mistake in History
My recent quite succesful research that lead to successful prediction of Silver (in March 13) and Gold (in May 6th) spot price movements over last 6 months in these silver and gold price charts:
Silver prices 2011-2013
Gold prices 2011-2013
and further analysis has lead to a conclusion-explained here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2860#p34267
That:
an interesting hypothesis emerges that , starting from q2 2012, in H2 2012 commodity prices in USD will rapidly converge towards a certain Bancor equilibrium for the first time, and than fluctuate around it in future, where:
1) the price of paper USD will be de facto determined by amount of a commodity it can buy in this equilibrium rather then the commodities price is as to today will be determined by the value of a certain currency set by exchange rates;
2) In fact, it will be the basket of all commodities that will serve as the ultimate reference medium of exchange for all paper currencies, and will de facto replace thus USD as world reserve currency;
3) the USD price ratios between different commodities will change so that to reflect the monetary ability (i.e. availability, longevity) of a given commodity to be the part of this world reserve currency, exchange medium for trade, not only its utility. Hence the price ratios IN USD between different commodities may differ quite radically ( as seen in example with gold/silver ratio and silver/copper price ratio) from what they are today;
4) if the logic of exchange medium effect on USD price ratio formation between commodities in USD can be discovered, the prices of commodities in USD can be quite accurately predicted after H2 2012, and ratios may not fluctuate as much as in USD as reserve currency time;
5) In such case, the prices in USD of other assets (land, houses, food, produce, etc) relative to commodities (and, of course, USD ) will also move from their current ratios to represent their potential as exchange medium for trade.
The signal for such conscious or partly conscious move to de facto Bancor system of international reserve currency will be triggered by official data of recession in q1 2012 in the USA (predicted here:DJIA 2011-2012 and the recession in the USA in q1 2012) and the resulting obvious unsustainability of USA debt ( it has already entered bubble precrash phase in 2000, as shown here: USA debt is forming a very soon precrash pattern) which will continue to grow superexponentially ( that is , in equivalent subsequent periods of time increases of debt value in USD will continue to grow) and imminent default (crash correction ) of the USA on its debt in near future.
Nice. Now remember next time that the past tense of lead (pronounced lede) is led. Lead, when pronounced led, refers to the metal commonly used in a high-speed projectiles.
Sorry Souvereign Man
Kakstory, the electricity problem has nothing to do with corruption, but everything with the (wrong) policy decision of not expanding the electricity network mid 1990's by (yes, yes: the ANC government, you know...black people...).You don't even try to prove anything, you're just shouting AND but what I find very worrying is that you are writing all the right words which makes Souvereign Man very dangerous as I see now you are writing what I want to hear. If this is far away from the truth, it does not matter. You only want the clicks, you moron. (Malema, blacks, corruption, gold, insult). I wonder when you will bring in Jews, gypsies, homeless, invalids, etc. Pity, I supported you also.
Note, I was this morning a few hundred meters from you in Cape Town and the situation on the gold price is as follows:
R 13.081,00 spot in SA this morning: http://www.randrefinery.info/rand/pricelist/5.pdf
R 13.539,22 selling price ex Rand Refinery for 50+ coins*: http://www.randrefinery.info/rand/pricelist/5.pdf
R 13.000,00 buying price CGCE: http://krugerrandsa.co.za/buy.asp
R 14.500,00 selling price CGCE: http://krugerrandsa.co.za/sell.asp
* price this morning for all dealers/traders, local/international (difference is minting/markeling costs for Krugerrand)
Moral of the story: Piss off with your American crap on what I want to hear. You're insulting my intelligence.
We do have an X type flare coming from the sun for the next 24hrs... NASA issued a warning of posibble blackouts.
We do have an X type flare coming from the sun for the next 24hrs... NASA issued a warning of posibble blackouts.
good point @ Smitty Wesson; whether you're there or not, it doesn't matter.
anyway, the next system, being a OWG, it also won't matter where you are. I don't think the economy is going to go in the toilet necessarily. It will be centered in the center, not the fringes, like now: the mid-east. Prophecies point to the possible short life of any OWG and back to a 10 zone thingy.(kingdoms if you like) God doesn't like Tower of Babel love-ins.
Pretty soon, your 'coin shop' will be buying at -20% of 'spot'.
Fine with me, since I don't sell.
I feel sorry for the folks I see in there hocking their family silverware and coin collections. I know I am blessed to be on the Buy side of the transaction.
Ha --hahahhaha---ohohohhho--hahahh yak yak hahahahah
Wait until this become standard and above board in the US when the economy goes down, it will be nasty.
Bullish for palladium
Big fish + Swimmer in Fish Hoek beach, Cape Town = Lost limbs
Simon's work has always...rubbed me the wrong way, sometimes he shines for liberty sometimes he does not. this piece is ok though. I saw him in a interview recently, I'll have to grab the link.
Simon's work has always...rubbed me the wrong way, sometimes he shines for liberty sometimes he does not. this piece is ok though. I saw him in a interview recently, I'll have to grab the link.