AFRINOMICS UPDATE: ANC LAND GRAB SET TO DESTROY SOUTH AFRICAN ECONOMY

White guilt is simply not good economics. Just look at South Africa, where the Marxist Racist ANC government is using White guilt to push its insane policies of wealth redistribution and in the process threatening to tank the entire economy.

The latest absurdity is that White farmers, who are set to lose their land under the upcoming Land Expropriation Without Compensation Bill, are at present liable for any debts using the land as security. The South African Government has no intention of picking up any of the financial liabilities and has little ability to do so without severely devaluing the currency. 

As reported by BizNews:

The Institute of Race Relations (IRR) launched an open-letter campaign last week asking prominent banks in South Africa to clarify the implications of expropriation without compensation. What the IRR wants to know is; who would pay off bonds of property that gets expropriated, the banks or the mortgage holder? With the debt-to asset ratio in the agricultural sector being particularly high; it could prove to be a tricky situation if the state decides to expropriate farms. Farmers will not be able to service the loans they take out and for the banks there would be nothing to repossess as the property is now owned by the state. The Department of Agriculture, Land Reform and Rural Development recently revealed it had no discussions with the country’s banks about being compensated for loans against property that is expropriated with Agriculture Minister Thoko Didiza indicating that she was waiting for the bill to be finalised. 

The IRR has estimated that financial institutions are owed R1.6 trillion (c. US$100 billion), much of which is backed by the land the government aims to expropriate in what will end up being a grubby land grab by corrupt functionaries of the ANC government.

This means that not only will White farmers lose their land, but a massive hole will be blasted in the finances of the banking sector, causing a severe credit crunch, collapsing banks, and probably panic. 

This will also scare away outside investment for years and possibly decades, leading to an even more intense downward spiral of poverty, chaos, and disinvestment. 

Expect to see exactly what happened in Zimbabwe some years back, but on a much vaster scale and with a much bigger negative impact on South Africa's fragile "Rainbow society." Ultimately White Guilt itself is not going to be economically feasible.  When that happens things will get interesting.

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