PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Amdyn
 
Comments: 37
Article views: 2303
 
 
Latest Badges:


 
View all Amdyn's badges.
 

The greatest scam

27 December 2013, 18:19

Well, you are probably expecting this article to be about Nkandla, or maybe E-tolls, or maybe it is about that sign language interpreter, but in fact there is a bigger trick going on beneath our noses.

So lets start with some basics. Our politicians make promises every election - such as free education, free medical aid etc. Of course, there is no such thing as a free lunch and although we "provide" those services they are really paid for through taxes. Simple enough so far.

We have a R1 trillion annual budget but only generate R750 billion in taxes. So where does the extra cash come from ? Well our government sells  "bonds" - a promise to pay someone back with interest at some future date.

In essence the government borrows money from the future to pay for things now - much like we borrow to buy a house. This would be ok if the money raised by those bonds went into assets such as power stations and roads or we were creating new jobs with it.... But let me not become sidetracked too early.

In 2013 South Africa has raised R250 billion in bonds increasing our total debt to R1.2 trillion. The budget plans to borrow an additional R497 billion over the next three years which will increase our debt to R1.7 trillion. How are we going to pay this back ?

Government actually has no intention of paying this back... They can't - they spend more than they earn ... All we plan to do is pay back the interest. And so what happens ? The bonds and loans become due and guess what.... we issue MORE bonds to pay for the old bonds.

Our net debt in 2007/08 was R483 billion... we have TRIPLED it under the current regime to R1.2 trillion and will increase it again to R1.7 trillion over the next three years... think about that.... Borrow R497 billion to pay back R300 billion in interest, and we still have to pay back the principal of R1.7 trillion ! In other words our borrowing has reached the point where the loans are being paid off by more loans.

So what does it all mean ? It means that we are paying taxes to pay interest. And as the interest rises, we pay more and more of our tax money to paying interest. Or put another way, the proportion of our taxes which goes to paying interest is growing all the time. Future generations will have to pay even MORE tax to cover the interest costs.

What it also means is that large amounts of money - interest leaves the country - and does so forever at MUCH greater levels than say e-tolls achieves. And like that family that pays one credit card off with the other, the debt becomes huge. This is how you land up being a Cyprus.

Frankly this interest machine is sheer genius with respect to shifting wealth from the many poor and middle class people of SA to the wealth elite of the world who own the banks who earn the interest. Biggest SCAM ever.

So to all my ANC, DA, EFF, AGANG, the Booi's and Mashilo's and the other political aspirants - what ARE you going to be doing about this ? Your answer SHOULD be what we as a country are talking about and debating .... and SHOULD ultimately be what your vote in 2014 is about.

PS. The government plan is to .... print more money ... and simply devalue everything you earn. To those defenders of the poor, the unions, the politicians and ordinary citizens ... this is why the poor can never earn enough, the reason why petrol is through the roof, and the reason why e-tolls as a new tax form are being implemented.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
37 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Daniel Sutherland
Bell Pottinger, the flames of hat...

The destruction of Coligny is in a way understandable taking into consideration how deeply Bell Pottinger infiltrated our social media. Read more...

0 comments 540 views
Submitted by
Nkanyiso Land Tumi
Decolonisation is pertinent

Our African history is not told at school. Even students are not taught what they are suppose to be taught which develops the positive thinking against black people. Read more...

0 comments 112 views
Submitted by
John Aurelius
Religion in School

Teaching a particular religion in school, targeting easily influenced and gullible minds, is nothing less than cultural suicide and a crime against civil society. Read more...

0 comments 76 views
Submitted by
Steve Thornes
Nuclear fall out

Can you imagine the misery that a trillion rand could alleviate if invested into housing, sanitation or clean water? Read more...

0 comments 106 views
Submitted by
Johan van Zyl629
Religion

I have heard the cry so often: Bring religion back into our schools! Now dear reader, my cry would much rather be: bring corporal punishment back into our schools. Read more...

0 comments 338 views
Submitted by
Peter Hollander
Zuma and Mugabe just ordinary sca...

Even today Mugabe blames homo Blair, and whites in general for the problems in Zimbabwe and more than 30 years he sings the same old song. Read more...

0 comments 870 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2017 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.