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.

Love
David

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