Quotable
“No one believes more firmly than Comrade Napoleon that all animals are equal. He would be only too happy to let you make your decisions for yourselves. But sometimes you might make the wrong decisions, comrades, and then where should we be?”

- George Orwell, Animal Farm, Ch. 5

FX Trading – A vulnerable currency – The South African Rand?

To the global media, South Africa is presented as a multi-cultural success story it seems. To me, the country appears about two-clicks away from major turmoil. So instead of a leisurely walk on the way to becoming the next Zimbabwe, my view is the country may soon break out into a brisk jog along that path.

The four C’s plaguing South Africa: Crime, Corruption, Competency, and Communism

Note: The following piece was sent to us by one of the brain-drain victims who left South Africa; he hates what he sees happening to his country. It is a piece that summarizes the incredible problems of crime and corruption blanketing the country. Sadly for all who live there, it seems to be getting worse instead of better. If you are at all squeamish, or have an angelic view of South Africa as the “multi-cultural success story,” we recommend you not read this piece. Click here to view.

The two C’s and one S supporting South Africa: China, Commodities, and Soccer playing a supporting role

Currency traders have looked past that political risks; there have been reasons for that:

1) The commodities bull market is part and parcel to what South Africa does; being a hugely mineral rich depository.
2) Big positive yield differential for South Africa has attracted hot money flow to the country; South Africa 3-month yields are still at a whopping 7.1%.
3) Though we haven’t seen specific numbers, the infrastructure build for the up and coming World Cup soccer match has likely created a decent number of jobs and amount of foreign investment. (Good luck to those who attend those matches in Johannesburg; a Kevlar vest under your favorite team jersey is suggested.)