LETTER: SA’s debt precipice beckons
IMF may not care for our begging bowl once the government sees the fallout from Moody’s downgrade
The coronavirus pandemic has obscured an equally critical matter: the horrendous fallout that awaits SA in the wake of the credit rating downgrade by Moody’s Investors Service.
RW Johnson, the highly perspicacious, insightful observer of most things economic and political, has warned that SA is nearing the debt precipice the IMF has long been predicting and that the country has long been avoiding. As Johnson puts it: “A rough translation would be: your taxes are far too high, your wages are far too high and so is your government expenditure. Your government’s policies are so mad that they are steadily immiserating the whole population. You have to change course completely.”..
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