THE IRONY OF CAPITALIST LOGIC

Neo-colonial governments in Africa are always trying to satisfy the needs and wants of the so called investors. There are two important constituencies in the minds of these puppets governments, namely tourists and investors. All institutional development viability is justified on the basis of these two pillars of economic mirage.

The recent jitters in international equity markets are evidence of crazy logic of international capitalist system. Why should Stock Market Index have a free fall in Africa or Brazil when America Companies have failed to manage the granting of loans? Why is it that when American corporation’s management steals from investors locally, the Stock Market in so called developing markets plunges? Why is it that when evidence of corrupt practices which caused the collapse of Asian Tigers a decade ago do not have the same effect on American accounting scandal? There are many examples of such inconsistencies and double standards.

Capitalism
Sbusiso Xaba explores the irony of capitalism in neo-colonial Africa

Neo-colonial governments in Africa are always trying to satisfy the needs and wants of the so called investors. There are two important constituencies in the minds of these puppets governments, namely tourists and investors. All institutional development viability is justified on the basis of these two pillars of economic mirage.

The recent jitters in international equity markets are evidence of crazy logic of international capitalist system. Why should Stock Market Index have a free fall in Africa or Brazil when America Companies have failed to manage the granting of loans? Why is it that when American corporation’s management steals from investors locally, the Stock Market in so called developing markets plunges? Why is it that when evidence of corrupt practices which caused the collapse of Asian Tigers a decade ago do not have the same effect on American accounting scandal? There are many examples of such inconsistencies and double standards.

Investors run most mediums of communication and these questions have been answered with the most ridiculous responses. The repetition of same line of lies time and again makes the most illogical answers normal and acceptable. They also will not forget to put an element of truth that the financial market system is driven by perceptions, however, without indicating whose interests drives such perceptions. It is for this reason that the formulae for evaluating economic indicators are so fluid, with most variables based on sentiment rather than empirical factors.

International Monetary Fund and World Bank informs African governments and governments of developing nations that fiscal deficit is a sin and should not be allowed hence the cutting of government spending in critical social needs including welfare, education and health. On the contrary, experts use different logic to explain the fiscal discipline of United States of America which is out of control.

These parasitic investors are interested in good infrastructure but do not want to be taxed by host countries. They are interested in crime free societies whilst they are first to run to government officials with bags of money to influence to gain favourable consideration in state projects. Investors want small weak government that does not interfere with their monopolistic tendencies while at the same time demanding strong protection of their investments from same government.

5 thoughts on “THE IRONY OF CAPITALIST LOGIC

  1. It still defeats any logic how one would resolve to use interest rates to curb inflation. The process is simple, when the reserve bank raises interst rates to the banks, they just transfer it to its customers who are curently holding loans.

    This includes individuals and businesses.As with business they will transfer it to consumers in the form of higher prices.As with individuals it goes to your bond, car installment & any personal loans.

    Unfortunately individuals are also consumers, eventually it all biols down to the average harding working men/women on the street.Now, how does that curb inflation?

  2. a senior employee of a bank in the united states – i think he was the manager of city bank or citicorps – once boasted that there were about 200,000 speculators globally (he was/is one of them) who manipulated financial markets. they use hedge funds on behalf of investors to achieve what they want. he said if they didn’t like a country’s policies they took one look at its policies and take out all the money to cripple that country’s economy. he said they did that to french president francois mitterand in 1981 when he introduced socialist policies. the exact information is contained in my article which was published in the New Nation of 16 august 1996. another useful information on the pitfalls of foreign direct investment is in a seatini booklet authored by yash tendon.

  3. Splendid take and use of contemporary/recent events. Continue to inform and educate. We continue to spread these important writings and to share with others. Thank you.

    A lot of friends are worried about the advent of Chinese people on our continent. While as I am keen to believe that this is not capitalism but socialism – out there to work rather than to exploit,; it would be interesting to hear what Mayiholme’s take on this issue is.

    Capitalism is just about frailing for breath now, but which way forward is the question that continues to haunt most conscious brothers and sisters…

  4. Good article which draws on current events. Have shared as usually. What is Mayiholme’s take on the advent of Chinese in Africa. Social or capitalising workers? Capitalism is frailing for its last breath – but which way forward.

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