When I read of COSATU’s plan of using the PIC’s (Public Investment Corporation) funds to pay down some of Eskom’s debt, I thought it was a great idea that they are using state employees pension’s to help alleviate the fuck up that is Eskom (a state owned entity). That was until I thought to myself that if all the communists think it’s a great idea, it probably isn’t.
As satisfying as it is to think that the state employees will pay for their own organizations’ mistakes and that it might actually help by reducing an unbearable debt for a country soon to be swimming in even more of it, you have to park that self-satisfaction and think about the second order effects.
If you think QE is heroin for the likes of the Fed, imagine what this bailout will be like for the ANC?
“Conditions of the deal would include that no worker at Eskom would lose their job and that Eskom would not be privatized.”
Imagine that. You can loot the entity into an unmanageable debt position, mismanage it so badly that a whole country suffers the consequences, and then use the pension funds of employees to bail yourself out with no political consequences whatsoever. As I type this, I can hear the smack-smack-smack of Ramaphosa and Gordan’s lips. If all the communists think it’s a good idea, it probably isn’t.
“But Cyril Ramaphosa is a businessman!” No, dude. Cyril is a BEE partner.
“But what’s the harm if they use these funds? I’m not a government employee.” No, you’re not, but let’s take some second order thinking into consideration. Let’s say this bail out ‘works’ and Eskom can repair itself and continue for a while longer on its path, what happens a few years down the line? Given that nothing really changes – remember that no worker has been fired and nothing has been privatized – how long before it’s in the same position again? And when the PIC is too bankrupt to further support the looting, where do you think they will start to look for further funds? It’s not like regulation 28 whispers are becoming any softer.
The thing we need now is not short-term relief for long-term pain. We need short-term pain for long-term relief. In short, we need hard decisions. But that’s not what we’ll get. Government incentives aren’t aligned with individual incentives. Ramaphosa and Gordan will probably be dead by the time these decisions come back to bite us. If all the communists think it’s a good idea, it probably isn’t.
So, what do you do when they come after your pension and assets? I know they can’t touch mine because I lost all my bitcoin in a tragic boating accident…
Is this good for bitcoin? Yes.