by Mish Shedlock, The Maven:
The ruling African National Congress (ANC) plans to change the constitution to allow the expropriation of land without compensation, as most of it is still owned by members of the white minority.
The debate erupted again last week when U.S. President Donald Trump said he had asked Secretary of State Mike Pompeo to study South African “land and farm seizures” and the “killing of farmers”. South Africa accused Trump of stoking racial divisions.
The IMF Fund’s senior resident representative in South Africa Montfort Mlachila told Reuters “We are in full support of the need to undertake land reforms in order to address the issues of inequality.”
Land Reform?
We are not talking about land reform, we are talking about a land grab theft.
The ANC announced the plan, backed off and now it appears the plan is back on, with support from the IMF.
IMF Financial Support
Mlachila said South Africa was not expected to seek IMF financial support due to its deep domestic financial markets and access to international markets for financing its balance of payments and fiscal deficits.
“We really don’t see much need for recourse to financing from the IMF,” Mlachila said.
If there is human and capital flight after this theft, South Africa will indeed be headed for IMF support.
Recall that the hyperinflation in Zimbabwe began with a land grab in the interest of “fairness”.
In the sake of “fairness” the Zimbabwe currency went to zero, for everybody.
