AFRICA CLIMATE PSYOP – Gaza –BHP Bid – Africa Boom - ZAR Weak – Load Shedding? – Smart Meters – Eat Insects – Why Inflation? – How Rich is Rich? - Letter from South Africa - [05-18-24]

We have far bigger problems, people sleeping hungry, poor people all around me; I’m more worried about that than I’ll ever be worried about climate change.’ [Anon]

The Climate Change Narrative is Preventing Africa from Modernising and Gaining Prosperity.  Under a blazing Kenyan sun, elderly women toil on their hands and knees in the reddish-brown clay, separating the choking weeds from small, green shoots of a finger millet crop. The women are barehanded and barefoot and work from 0800 to 1800.  Clearing a small field takes three days.

“A combine harvester could replace 1,000 people,” Jusper Machogu, an agricultural engineer and farmer in Kenya, told the Alt Press. “It makes me sad whenever I see my mom wading through millet. We have women kneeling and uprooting weeds throughout the farm all day, and it’s sunny. Those machines would change our lives.”

But farmers like Mr. Machogu can’t run a combine harvester, even if they could afford to buy one, from the meager salaries they make selling crops.  Western nations’ climate policies prevent Africans from achieving what the West already has: modernisation and prosperity.

In 1994, I was in Belarus when a farmer posed a similar question, where to get Western-type capital now that his country is capitalist?  I explained that through 300 years of colonialism, the West had accumulated vast wealth and continues to keep it to the detriment of people like him.

In November 2023, to reduce carbon dioxide emissions from fossil fuel use, the President of the Republic of Kenya, William Ruto, cut subsidies for fertilizer, fuel, and electricity for the 2023/2024 financial year. He did so at the behest of the International Monetary Fund (IMF), a financial agency of the United Nations (UN).

“I come from a community where people use cow dung to fertilize their farms,”  Mr. Machogu said,  “And the reason for that is because last year, the government of Kenya decided that they were going to listen to what the IMF was telling them. It was telling them to end fertilizer subsidies.”

“You can imagine how that will impact farmers; fertilizer prices increased 200%.  We are very poor people around here. So, if I was [purchasing] 20 kilos for my farm, I’m forced to get only 10 kilos now.  Most people have returned to using cow dung, which is not a good nitrogenous fertilizer for their crops. You can’t compare urea, with 46% nitrogenous content, to cow dung, with only 4%. It doesn’t make sense.”

[but you can use urine, which is a wonderful substitute Mr. Machogu, and it’s free!  You also need to measure the soil pH or soil reaction, an indication of the acidity or alkalinity of the soil, measured in pH units, to know what natural additions may be required to balance output.]

Mr. Machogu said the IMF and the Western nations that embrace climate policies for Africa are engaging in neocolonialism, or “climate colonialism.”  And it’s no different than past colonialism, the likes of which liberal elites, such as former President Barack Obama, have condemned.

“Colonialism skewed Africa’s economy and robbed people of their capacity to shape their destiny,”  President Obama said while in Ethiopia in 2015. “Eventually, liberation movements grew and 50 years ago, in a great burst of self-determination, Africans rejoiced as foreign flags came down and your national flags went up.”  Two years earlier, in 2013, while in South Africa, President Obama warned a group of young African leaders about the consequences of Africa achieving Western parity. Sources

• CLIMATE PSYOP & GASLIGHTING OPERATION: The Single Most Destructive Hoax In Recorded History  https://www.theburningplatform.com/2024/05/16/climate-psyop-gaslighting-operation-the-single-most-destructive-hoax-in-recorded-history/

• The most harmful policy is that the IMF, World Bank, and agencies such as the US Agency for International Development (USAID)

• An advertising brochure dating from the early 1960s encapsulates the arrogance of billionaires and their companies that think they are the hand of God, that they are the truth and the science, and that we should all be in awe of the technology they produce  https://www.globalresearch.ca/wp-content/uploads/2023/09/500x745xunion-carbide-ad-via-osha.jpg.pagespeed.ic_.xxjVWrgy6C.jpg    

SOUTH AFRICA'S LATEST GRANDSTAND MANOEUVER

Regardless of what the lying MSM says, I AM PROUD to be part of the nation of South Africa which is prepared to stand up against negative Western opinion and talk truth to power. I don’t care what my wayward countrymen (UK) say – they are all corrupt anyway (Julian Assange?) – because of South Africa’s devastating experience at the hands of the Western Elite, our indigenous people know the truth and dare to tell it today against the odds. South Africa is accused of being a haven for Hamas, Islamic State, and al-Qaeda Terrorists.

• The South African government is the same thing as Hamas. It's an Iranian proxy, and its role in the war is to fight the ideological and ideas war to stigmatise Jews around the world. " — Frans Cronje, CEO of Race Relations Institute, interview on Chai FM Radio, January 26, 2024.

• The ANC's lax monitoring and prosecution of the terrorist presence in South Africa may have been the result of an understanding between the government and terrorist groups not to execute terror operations in the country while permitting fundraising to continue without interference from South African law enforcement agencies.

• Adding to South Africa's concerns is the possibility that its citizens waging jihad in Mozambique may eventually return and apply their combat experience at home to target the ANC regime.

While South Africa's latest grandstand manoeuvre will most likely fail, the effort did succeed in exposing yet another dimension of the relationship between South Africa and the terrorist organisation Hamas, which initiated the war against Israel on October 7, 2023.

South Africa's ruling African National Congress (ANC) has close and long-standing ties to Hamas. As early as 2015, Hamas had developed personal ties with South Africa's then-President Jacob Zuma. In October of that year, the ANC hosted a Hamas delegation led by terrorist mastermind Khaled Mashaal, who met with Zuma in the capital, Pretoria.

South Africa appears to have scored another diplomatic victory by applying to the International Court of Justice (ICJ) to accept onto its judicial docket the African state's charge that Israel's presence in the West Bank is an illegal occupation. This recent initiative follows South Africa's December 29, 2023 presentation to the ICJ that Israel's military operations in Gaza were acts of genocide against the civilian population.

STOP PRESS – BHP’s pursuit of Anglo-American has a major obstacle: South Africa is winning – The Global South WILL prevail!

The De Beers owner is a longstanding jewel in the African state’s economic crown; it will be a ‘big blow’ if it is sold off.  The world’s largest mining company has a problem. Australia’s BHP has indicated its intention to snap up rival miner, Anglo American in a multibillion-pound deal that would reshape the global industry. Its proposed £31bn takeover plan has already been rebuffed as a lowball offer that undervalues the company. But Anglo’s deep roots in South Africa could be a far more sensitive issue to address.

Africa’s most advanced economy was built on mining. For more than 150 years, since the first discovery of diamonds, gold, and coal, the industry has remained South Africa’s economic lifeblood. Today it is the world’s fifth largest producer of coal and diamonds and the 10th largest producer of gold. Source

• BHP’s pursuit of Anglo-American has a major obstacle: South Africa 

NEWS FLASH – AFRICA IS GROWING FAST!

The South African Reserve Bank (SARB) says improvements in load shedding and energy availability in the country are coming earlier than expected, which is good news for South Africa’s growth prospects  These improvements can be attributed to a better performance by Eskom, but it’s mainly thanks to a flood of private investment into renewable energy by households and businesses by the latest economic review from Nedbank. Source

• The big shift for load shedding in South Africa – and who to thank https://businesstech.co.za/news/energy/769442/big-shift-for-load-shedding-in-south-africa-and-who-to-thank/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

FUN TIDBIT – How to feed your family on 100 rand!

THOUGHT FOR THE WEEK – Why is the South African rand so weak?

Domestically, risk aversion in SA is high ahead of the May 2029 elections. While this was attributed to the rand’s weakness in the last week, economists pointed out that it’s not a major factor.  Nevertheless, markets continue to fear an ANC/EFF alliance, given the EFF’s radical nationalisation policies, which would eradicate private sector property rights,  Bishop said.  Until the elections have passed and the path forward is clearer, the election will continue to be a factor.  Source

• Why the rand was back above ZAR19 to the US dollar https://businesstech.co.za/news/finance/768941/why-the-rand-is-back-above-r19-to-the-dollar/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

BREAKING SOUTH AFRICAN NEWS

LOAD SHEDDING – HAS IT GONE AWAY?

While some were quick to commend Eskom, Yelland noted the answer is that demand for Eskom grid electricity continues to decline in South Africa.  He further listed five main contributors to the decline in demand:

• The weak South African economy results in a generally flat overall demand for electricity.

• Rapidly rising Eskom and municipal electricity prices above the inflation rate are dampening demand for Eskom-generated electricity.

• Load shedding and low reliability of Eskom and municipal grid electricity are negatively impacting the electricity supply.

• Electricity customers are moving to self-generation and alternative energy sources, including rooftop PV, battery energy storage, gas for cooking, solar hot water geysers, energy efficiency, and a general reduction in demand for grid electricity.

• The pipeline of big renewable energy and battery storage plants is now coming to the grid, and it is accelerating.

This relieves Eskom of a burden that it has been struggling to meet over the last few years, resulting in a significant reduction in the frequency and intensity of load shedding this year compared to last year.

Driving this point home, Yelland showed that despite the reduction in load shedding, Eskom’s total electricity produced in Gigawatt-hours over the 2023 financial year ending March 2024 reached a 20-year low. Source

• How Eskom is managing to keep load shedding suspended, and it’s not what you have been told  https://businesstech.co.za/news/energy/766583/how-eskom-is-managing-to-keep-load-shedding-suspended-despite-major-fail/?utm_source=everlytic&utm_medium=newsletter&utm_campaign=businesstech

SOUTH AFRICA has a different focus on Smart Meters than that of the UK

First, a look at the UK.  Last week, the Chief Executive of Centrica/British Gas Chris O’Shea caused outrage when he told a House of Commons committee that so-called ‘smart meters’ should be compulsory. But anyone surprised by this hasn’t been paying attention. The ‘smart grid’ has always required that all domestic and business consumers are fitted with smart meters, and compulsion is the only way energy companies can manage the scarcity created by the U.K.’s aggressive climate policy agenda.

Like many of the daftest climate and energy policies, the smart meter rollout was first devised in 2009 by Ed Miliband.  The UK National Grid will be very different in 2020-30. Chris O’Shea said, “We’re going to have to change our behaviour and consume it when it’s available.” [A reference to unreliable, intermittent sun and wind energy sources.]  The smart meter will encourage rationing through ‘dynamic pricing’. Furthermore, energy companies have lobbied to allow them to balance supply and demand by switching off appliances and full supply remotely.

Legal force was always going to be required to install smart meters for people who do not want them and know that these devices are unable to serve their best interests.  A typical household in Britain uses 2,700 kilowatt hours (kWh) of domestic electricity and 11,500 kWh of (heating) gas/oil per annum; here are my energy statistics from when I lived in the UK.  In South Africa, it’s 76% less than the UK at 3,377 kWh per annum!

I predicted, in January 2024, that in the end smart meters will be mandated – wait, watch, stay alert, and Brits should move out when they can because it’s not going to get any better.  I know I can't defeat a Goliath, even if David did by providential intervention, that’s why my Plan 'B' is in effect and I exited the Global North last year with a sigh of relief.

However, in South Africa, the conditions are very different. In the UK my electricity consumption was horrifically high, with 75% expended on heating alone for eight months of the year.  My UK analysis was published in December 2022. My bill for Q1 2023 was £1,095 (ZAR 25,000) or about the average monthly salary in South Africa!).  In Cape Town electricity consumption is a quarter of that in the UK.

The emphasis in SA is on Eskom actually getting paid for their supply!  “Eskom will install new prepaid meters, at no cost to the customers, through vending points including banks, retail shops, smartphones, internet, and ATMS. The new smart prepaid meters are expected to reduce energy theft dramatically through built-in smart features like tampering detection.”  Notice how the SA  government tells the truth about smart meters, whereas HMG tells lies in an attempt to ‘sell’ the benefits but it fails because the Brits don’t believe anything the UK Establishment tells them these days. 

SURVIVAL MONITOR – EAT INSECTS?

Terrorist Billionaires & The Future of Food: The Global Push Forces Humanity to Eat Deadly and often Poisonous Insects ties Directly to Bill Gates, Klaus Schwab, and the CIA.  Let us be clear—consuming insect-based foods comes with potential health risks. These risks are primarily related to food safety and allergens or toxins in some insects. 

The Food and Agriculture Organization (FAO) highlighted several food safety issues associated with edible insects, including: 

• Pathogens. Insects can harbor bacteria, viruses, and parasites, which can risk human health if not properly handled or cooked. 

• Allergens. Some insects contain allergens that can cause allergic reactions in sensitive individuals. 

• Toxins. Certain insects often contain toxins that can be harmful if consumed in large amounts. Insects can contain allergens that may trigger allergic reactions in some individuals. These reactions can range from mild to severe, depending on the individual’s sensitivity and the amount of insect consumed. Allergic reactions will manifest as skin rashes, itching, swelling, and, in severe cases, anaphylaxis, which requires immediate medical attention. Source

• The Global Push To Force Humanity To Eat Sometimes Deadly And Often Poisonous Insects Ties Directly To Bill Gates, Klaus Schwab, and The CIA https://www.allnewspipeline.com/Terrorist_Billionaires_And_The_Future_Of_Food.php?utm_source=substack&utm_medium=email

AFRICA Will Survive and Prosper – they have fewer than 6% vaccinated for Covid-19

In past years COVID-19 adversely impacted South Africa but was estimated to have caused fewer than 89,000 deaths, by far the least in the world.  African authorities, while acknowledging that there might be gaps, are not reporting huge numbers of unexpected  COVID-related fatalities. A heavily unvaccinated Africa has so far avoided the COVID disaster.  Source

• A heavily unvaccinated Africa has so far avoided a COVID disaster. https://www.marketwatch.com/story/a-heavily-unvaccinated-africa-has-so-far-avoided-a-covid-disaster-health-officials-are-optimistic-and-wary-01637309085

INFLATION  - WHERE DOES IT COME FROM?

As E.J. Anthony, PhD economist, points out, “There was never any indication we were heading to the 2% inflation target, let alone the pre-pandemic 1.8% average; we’ve arrived at 3%+ with no indication we’re going significantly lower anytime soon, not with the current levels of Treasury borrowing and Fed allowing money supply growth.”   We need to understand why inflation is not falling as promised and announced.

Fiscal policy has been reckless, and enormous deficit spending is fuelling inflationary pressures through unnecessary government consumption of newly created currency. Government spending is funded by the central bank creating new units of currency through commercial bank loans, and inflation is caused by issuing more than the private sector demands, thus causing the purchasing power of money to decline.

The only way inflation will be reduced is for the Federal Reserve to abandon its policy to cut rates and take measures that drain net liquidity.  Without the support of the Treasury, this is impossible because it floods the market with new money even if monetary policy is restrictive and investors discount that the newly issued currency units will be monetised in the future.

It does not matter if the Fed promises restraint when the Treasury pushes excess. The conservative bondholders will only see positive returns when the Treasury stops destroying the currency’s value, but it does not seem likely anytime soon.  Source

• Governments Cause Inflation And Hurt Bond Investors https://www.zerohedge.com/personal-finance/governments-cause-inflation-and-hurt-bond-investors

NARRATIVE BATTLE –  When is enough – enough?

It’s a common question, of course. How rich do you need to be before you stop wanting to be richer?  Which leads to a deeper question: At what point will more money cease to increase happiness?  That’s a more nuanced matter.

I recently had lunch with a friend at a restaurant overlooking False Bay in Cape Town. The day was sunny and warm, and we were in the mood to dream about pleasant possibilities. These included the question: If our stars were to align, our angels were to favour us and all our mediocre investments were to suddenly soar, how much money would it take for us to say “Okay, that’s enough, I’m fine now?”

It’s a common question, of course. How rich do you need to be before you stop wanting to be richer?  One only has to consider the boasts of the current titans of wealth to realise that, for some, there is no such thing as enough. But perhaps those of us with more modest expectations can imagine a horizon that, when reached, would be recognisable as our destination and a stopping point.

Which leads to a deeper question: At what point will more money cease to make us happier? That’s a more nuanced matter.  It turns out that the Israeli Nobel Prize-winning psychologist Daniel Kahneman, who died last month and who invented the entire field of behavioural economics with his academic partner Amos Tversky, has studied this subject at some length.

His first foray into the relationship between money and happiness concluded that the happiness axis increases up to about $75,000 per year in income, whereafter more money has little impact on one’s state of mind. This study dates from 2010, it translates into $107,500 annual income today.

But in 2021, psychologist Matthew Killingsworth published another study, showing a different result. Kahneman took the criticism to heart and teamed up with Killingsworth to produce a new set of results. It shows a real gain in happiness from $100K to $200K in annual income, but, beyond that level of income, you have to earn $400K and then $800K to achieve the same gain in happiness. And so on; happiness is less and less affected as wealth increases.  The graph looks like this:

On reflection, the result is not that surprising. However, the celebrity podcaster, blogger entrepreneur, and educator Scott Galloway, in his blog No Mercy / No Malice (from which this graph is extracted), saw something else in this curve: a potential solution to all of the US’s fiscal problems. His big idea was that in the US, there were fewer than 26,000 households earning over $10 million in 2020 which paid an average of 25% in taxes, i.e. a total of ZAR210bn into government coffers.

More importantly, according to the Kahneman-Killingsworth study, their happiness quotient was unlikely to have been affected that much by incomes over $10 million.

Galloway comes up with the following startling maths. If the US collected an additional 25% tax from all annual incomes over $10 million, a further $140bn could be added to government coffers.

“[This] could cut child poverty in half ($100bn) and end homelessness ($20bn). These investments would generate a massive increase in the well-being of our commonwealth and a huge economic boon. (These societal ills cost us trillions in lost productivity.) and we would have enough to pay for most of Nasa ($25bn). And rich people love space.”

However, what of South Africa?  I spent a couple of hours rooting around Stats SA and other sources making some wild assumptions with back-of-envelope calculations and came up with this:

If our government increased tax rates to 50% for only those earning more than ZAR5 million per year (around 10,000 households), they would raise an additional R15bn to R30bn for the treasury.

This assumes everyone is honest and pays taxes, which is an improbable stretch. But this pile would go a long way to fixing all manner of problems if it was spent wisely (another stretch), and we can assume that, if Kahneman and Killingsworth are right, those earning this level of income will retain most, if not all, of their good humour even after the additional tax.

My friend and I finished our lunch, unphased by the thought that we would not be in this bracket any time soon. The day was fine, and we were quite happy with it. Source

• On the wealth-happiness horizon, How much money is enough?

COMING NEXT:

• BOOM Weekly Global Review - Japan in Focus - Tuesday, May 21, 2024

• The Financial Jigsaw Part 2 - Chapter 5 – Global N versus Global S – Saturday, May 25, 2024

REFERENCES 

• My Book: “The Financial Jigsaw” Parts 1 & 2 Scroll:   https://www.researchgate.net/publication/358117070_THE_FINANCIAL_JIGSAW_-_PART_1_-_4th_Edition_2020   including regular updates.

• BOOM Finance and Economics Substack (Subscribe for Free) - also on LinkedIn and WordPress. Plus Covid Medical News Network CMN News  and BOOM Blog -- All Editorials (over 5 years) --  BOOM Finance and Economics | Designed for Critical Thinkers — UPDATED WEEKLY (wordpress.com)