Josh Sigurdson talks with author and economic analyst John Sneisen about the recent news of the creation of a sovereign wealth fund in South Africa by President Cyril Ramaphosa.
Ramaphosa thinks this will boost economic growth in the country which is funny to say the least. We’ve seen this in countless other countries before and Norway would be a great example of how not to go about this kind of move.
South Africa is attempting to stabilize themselves, but via the hand of more instability in a vastly centralized system.
Their main exports are platinum, coal, iron ore, diamonds and citrus fruits. But this new system will be almost entirely paper contracts. They will have as per usual far more paper than they have commodities which will lead to another massive bubble.
South Africa is making several similar moves in government to what Zimbabwe did approaching their massive hyperinflation which is certainly worth noting in this context.
This will simply be yet another domino to fall on the world stage.