Thursday, 29 January 2009

Barak Obama, Yes We Can, Wins (written 5th November 2008)

Dear all

An African in the White House. An African American.

Our Hope. Hatikva: The Hope. Perhaps the hope of the world.

The Mayans predicted that we are currently in the fifth night, where the lessons of the fifth day happen, and where in the sixth day which starts next Tuesday, 11th, we actually start embracing the change. The sixth day is "the darkest hour" of each of the 9 cycles (which have 7 days and 6 nights) in the Mayan Calendar. The current change is a movement from Power to Ethics. As a socialist capitalist, ie a person who believes that the profits made by a capitalist system, which strives for efficiency and effectiveness, must be shared and that debts must be paid off or managed, I welcome this change to an Age of Ethics. The Bible says that some people are given wealth and the ability to make money. They have the associated responsibility to share some of it, as well as to lead by example.

BTW, if you search for Mayan Prophecy you will encounter doomsday scenarios. Having studied the prophecy, watched the videos, been to lectures, Mirjana and I have discovered that this is not a doomsday scenario. Rather it is a dawning of a new age of enlightenment, where time loses its meaning, and where ethics and sharing become the accepted paradigm worldwide. You can find the Mayan Calendar here:

Enjoy the following video: about Change.



Tuesday, 27 January 2009

Saving the South African Economy

Letter written to the Cape Town newspapers: ...

David is a scientist and Reiki Master with a Masters in Business Administration who helps people and organisations to heal. For more information please contact David at

Dear Editor

The Cape Times' "Rate Cuts Could Lift Rand" on 14th January 2009 and the South African Reserve Bank's (SARB's) recent statement that they are bringing the interest rate announcement forward a week refers.

As a healer working with companies and individuals, I am finding more and more distressed organisations and families in South Africa. The common perception is that the worldwide slowdown is not effecting South Africa. However I believe that this is a myth and that in the next few months 1000's of businesses will close and tens of 1000's of jobs will be lost.

There is a lot of goodwill in South Africa with business owners investing in their own businesses, but at some point this will stop and South Africa will be in trouble. I have asked everyone I know who is bailing out their own organisation to fax Mr Tito Mboweni at the SARB on 012 313-3197 or 012 313-3929 stating the total amount of money they have invested into keeping their companies going over the past three years, what their budgeted and actual turnover and net profit figures have been for the past 3 years (ending December), what their employee numbers were on the 31st December of each of these years was, and what their budgeted turnover for the year ending December 2009 is, and what their projected staff complement will be on 31st December 2009.

I believe that these "suddenly visible figures" will shock the reserve bank into doing something bold and aggressive that will stem the tide and show that the SARB is interested in supporting its primary goal of "the achievement and maintenance of price stability." The SARB can do two things that will: dramatically reduce interest payments, whilst removing liquidity from the market, increase net profit, strengthen balance sheets, and at the same time dramatically strengthen the Rand and dramatically bring down inflation AND maintain price stability.

Before I state what they are, I want to refer to the Cape Times' article on 14th January where Professor Brian Kantor of Investec and other economists state that "rate cuts could lift the Rand." A graph was shown on that day that shows that since 2002 rate increases have weakened the Rand and rate decreases have strengthened the Rand, exactly the opposite of what happened in South Africa before 2002.

The two bold initiatives are: 1) dramatically cut prime interest rates by a 1/3rd from 15% to 10% as has been done recently in the USA, Europe, UK and Australia; but 2) increase the banks "cash" reserve ratios held with the SARB from 2.5% of total liabilities to 7.5% of total liabilities and tell the banks that they must hold half of this reserve margin in physical gold at the SARB. Cutting interest rates by such a large amount will give business owners the courage they need to "stick in there", even potentially to invest in new capital or ideas, and potentially to grow or maintain their businesses. It will give credit card holders, car owners and bond holders a breathing space at a time when salary increases and bonuses are on hold. Importantly the ability for someone to go on a spending spree will be curtailed as the banks won't be able to lend because their reserve ratios will just have been tripled and they will be given 18 months to ensure that they meet these reserve requirements.

Bank's ability to give 100% bonds will be eliminated and may be reduced to 80% where it should be. Names such as United Building Society and NBS might reappear as people use their sudden availability of excess funds to start saving or repaying their debts incredibly quickly. The private person's ratio of debt to household disposable income will dramatically decrease thus fundamentally improving his balance sheet and giving him a firm foundation on which to grow his micro-economy into the future.

David Lipschitz
14 Mimosa Street


Evil flourishes when good men do nothing (Edmund Burke)

Thursday, 22 January 2009

Ask the South African Reserve Bank for Bailout Money - Inform them of a looming crisis

Dear all

The SARB and local banks are pretending that there is no problem in South Africa, possibly because they don't have visibility of a looming crisis which can possibly be avoided or at least mitigated if managed well.

If you are bailing out your own company, then please write to Mr Tito Mboweni at the South African Reserve Bank (SARB). I suggest stating that you have put x into the company over a certain time period and that you would like the SARB to also put x into the company, essentially to keep you going. Advise the SARB how many employees you have, what your turnover has been for the past 3 years, what your employee count was at the end of each year and what your projected turnover is for 2009 and expected number of employees in December 2009. Remind the SARB that in South Africa, there are typically up to 10 people dependent on each employee and that if the SARB don't help you out, then the government's ability to pay unemployment benefits at some point will be curtailed and social unrest will likely ensue.

The SARB might not do anything immediately, but as the letters keep coming in and as they start adding up the statistics, they will get a clear picture of what is truly happening in our terrific economy before it is too late. Most in South Africa are stuck in a make-believe world that the world can't touch us. It already is and has touched us with 1000's of companies' directors putting their money into their companies to keep them going. And they can't keep going forever. I have spoken to 3 people in different companies who are already only days away from closing, basically living from day to day, hoping that their debtors pay so that they can pay their creditors. They are slowly running out of a range of stock items which they can't replinish and so their ability to sell is being curtailed. Some of them import products and their ability to import is being curtailed, making their range unattractive.

The SARB might even realise that it's high time that interest rates are reduced in 25% chunks thus satisfying business owners, homeowners, and even bankers whose debts will be paid, but unfortunately not speculators who prefer small and more regular interest rate increases or decreases because they can make more money this way with the stupid games they play.

Here are the SARB's details:
Mr Tito Mboweni
Fax : +27 12 313-3197 or +27 12 313-3929

NB: We can and must survive this downturn. We can do it by doing the following:
1) Stop using all unnecessary appliances.
2) Turn off everything at the wall when it is off.
3) Try to get the kids to stop playing computer games and rather play Risk or Monopoly or some other such "old fashioned game" that a) doesn't use electricity; b) gets them thinking; c) might just get them to show us the way forward. The future is in their hands, but if 5 of them are sitting in a room playing a "network game" we aren't going to get very far very fast as well as them probably using in the order of 1500 to 3500 Watts, eg for computers, fans, airconditioning, heating, running the kettle, beers in the fridge, etc, etc.
4) Replace your fridges with energy efficient fridges. If you were about to go on holiday or spend R8,000 on new mags, rather buy the energy efficient fridge. The main problem I have here is that the old fridge is then used, eg if given to the maid or gardener, so energy use goes up, even though yours goes down. Any comments?
5) This will stop the government from building power stations and spending 343 Billion Rand on that over the next 10 years when they can make the same money available as "bailout money." There is a very simple way to stop the building of these power stations: don't turn on more than one appliance at the same time. If you turn on your kettle (2000W) and your oven (2500W) and your lawnmower (1000W) and your washing machine (up to 600W), etc, then if all are on at the same time, we need power stations to run at at least 6100Watts, but if you turn these facilities on separately, you use a maximum of 2500 Watts at any one time. You still use the same amount of electricity, but you just spread if out. I have left the geyser off this list as most of the time we can't easily turn if on and off. This committment not only saves the need for new power stations, but saves a massive amount of pollution as the power stations are producing the 6100 Watts continuously whether you use it or not; or perhaps rather, whether you switch on the plug or not.
6) Promote renewable ways of living: from electricity; camping solar water heaters for showers; food security, eg vegetables and fruits in your gardens; rain water collection; bartering excess food you have with your neighbours.