Sunday, 1 July 2012

What's really happening in South Africa? Why are we in a recession?


So what's really happening?

South Africa doesn't have enough electricity. Similar to Greece, Syria, Spain, some of the more than 40 countries worldwide whose energy imports either exceed their total exports or are more than 60% of their total exports.

South Africa doesn't have enough electricity.

Our capacity is around 35 GigaWatts, and was around 38 GW 20 years ago. Plus peaking power stations taking us to around 38 GW today. At 3.6% average electricity growth worldwide in the past 20 years, South Africa should be at 80 GW today and in 20 years time should be at 160 GW.

To "solve" the problem, the South African government has had to be very inventive. Especially whilst giving another 2 million people electricity since 1994. It has closed the textile industry, moving almost this entire industry to China. It has closed several smelters, hence the reason South Africa's iron and steel exports have plummeted. It blames our problems on China, but China adds 1 GW to its grid weekly and for the first time will install the biggest share of renewable energy worldwide this year.

The South African government needs to limit growth, otherwise the citizen (voter) will find out there is a problem. So the government does this with laws that limit growth or which limit the ability of small companies to employ people or which limit the second hand market from selling goods. Examples? The Consumer Protection Act which protects big business whilst preventing small business from doing business; The new Labour Legislation which has outlawed companies from employing casual staff thus preventing small companies from trying out people before giving them permanent employment. If a big company employs a person who doesn't work out, its not really a problem if the company already has 200 people. But when a small company with 2 people wants to employ a third person, its a massive investment. And in order to buy second hand goods at a market, a customer needs to show their ID book!! When last did you show your ID at Pick 'n Pay or Woolworths or Tafelberg?

Wanting to outlaw labour brokers who help people get jobs is another example.

And there are others.

All because South Africa doesn't have enough electricity.

And the way South Africa will solve this problem is to borrow R2,300,000,000,000 (R2.3 trillion) and the only way South Africa can repay this vaste amount of money is to give away the Karoo, ie allow it to be fracked; to prevent South Africa from having its very own car, the Joule, and in other ways.

But citizens can take back their rights by taking responsibility for themselves. And thus reduce their costs by up to 70% from 2012 prices. Its so simple, that people just can't see it, as they've bought into the Fossilized fuel energy Mythology.

Where to today? That is up to us!

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