Friday, July 3, 2009

South African Trade Unions (COSATU) calls for Nationalisation of Mines


You see this wall? It is now mine!


No, no, no Julius Malema, national clown and El Presidente of the ANC Youth League was there first. He was the first guy to test the waters for the ANC on nationalisation of mines. Now Cosatu, partner in the tripartite alliance with the ANC and SACP (SA Communist Party), professional shouters and populists pur sang, joins the choir. Press release on a Friday afternoon....learning fast! Let's speculate a bit: Good for the gold price I would guess, as no government in the world knows how to run a business. Everybody will now assume think they are getting rich, but how wrong they are. However, all Cosatu and ANC members could get a new BMW as they are more equal than the others. For the mineworkers nothing will change. Say "nationalisation" and it is hard not to get cynical.
On the other hand, the situation in South Africa for the uneducated black population is worrying. We have to do with a large amount of people demanding the fruits of their vote form the ANC. Zuma promised jobs, houses, etc. so now what? 60 Bilion Rand (US$ 7.7 Billion) shortfall in taxes this year and counting. On top of this, the South African finance minister Gordhan informed us today he is not going to print money and that inflation targeting remains in place. So, nationalition of mines for this country makes a bit of sense. It will upset the least amount of people, makes the Communists and Trade Unions happy, keeps everybody very busy, is politically correct and is therefore actually small change. The problem is that for the poor man nothing will change. But don't say that out loud to the voter public.


Cosatu calls for nationalisation of mines

Moneyweb.co.za

Cosatu supports calls by ANC youth league for the mines to be nationalised.South Africa's powerful trade union federation COSATU said on Friday it wants the government to consider nationalisation of mines in the world's largest producer of platinum.

COSATU, which has nearly 2 million paid-up members in the country of around 47 million people, said in a statement it supports a call by the ruling African National Congress' youth wing for the country's mines to be nationalised.

It said its call would back up the nation's Freedom Charter, and was in line with its own resolution declared in 2006, which called for "more equitable ownership, especially collective ownership through the state... of mining and other commanding heights of the economy as provided in the Freedom Charter".

The charter calls for equal rights and equal share of wealth with the country's white population.

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