Renegade Report Interview – June 2017

I went into studio to chat to Jon and Roman about economics. Really enjoyed the discussion covering a range of topics.

“Economist Chris Becker joins the Renegade Report team this week. Chris expands on the differences between the divergent economic schools of thought, why Keynesian economics is most useful to State technocrats, and how Government’s incompetence has been good for the private sector. Roman explains why the poorest people in the world use private school and Jonathan reveals how private healthcare is flourishing in South Africa. The conversation closes with a frank discussion on cypto-currencies and how they may disrupt the status quo of State-controlled currency markets in the not too distant future.”

TV Debate About SA Credit Bubble

I had a mini-debate with Thabi Leoka, RenCap’s SA economist, on SABC Business Review last night. It was only 15 minutes long so I couldn’t get into the real meat of the debate, but I ended the conversation with a hint of where we need to focus: the central banking, fractional reserve monetary system that’s the biggest bubble in the history of the world – and this by its very nature is a credit bubble.

I’ll be writing an article about SA’s credit bubble in coming days where I will back up and strengthen Jesse Colombo’s credit bubble call further. I am busy with three separate research reports at the moment, and this article will take a back seat, but I hope to publish early next week.

TV Interview with SABC about Today’s Interest Rate Decision

I spoke to Francis Herd on SABC News’ Business Review last night at 8pm about the upcoming interest rate decision today.

The Reserve Bank’s in a tight spot. If they don’t raise interest rates, the rand weakens further (because the market’s pricing around 3 percentage points worth of hikes in the next year), and fuels inflation of particularly staple foodstuffs that impact low income earners and the unemployed, and we get more labour unrest and higher wage demands.

Either way, the economy is in for some tough times. It’s now up to the Reserve Bank to decide how they’re going to distribute gains and losses between different segments of society in the short-term. In the past three years they’ve implemented policy that favoured middle to high income people who take on secured debt (the wealthy), let’s see if they decide to switch in favour of supporting pensioners, low income earners, and the unemployed for a change by raising short-term interest rates further and purging the accelerating price inflation out of the economy.

It’s anybody’s guess, really. I’m of the view they should surprise economists again by hiking today, but I doubt they’ll do this. So most likely we see an unchanged decision. YouTube of the interview follows the link below.

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