Hao! Baby Products

By Arlene Song

Interesting when you heard all of the people around you talking about the same thing: because the government wants to reduce the spending.

Yes. I agree with the reducing the spending. Ok, which kind of spending they are trying to reduce?

House, Credit Card, Car...consumption. Everybody agrees with the house and credit.

So does everyone know why to reduce spending?

South African government tries to stabilize the rand exchange. Everyone knows rand violates too much. It gives a lot of arbitrage opportunities on the forex market. That is not important. Government does not care so much how much money speculators are earning. They do care about their privilege. Adding the political facts, South African government of course do not want to this when foreigners talking about SA economy, they will deny it quickly by quoting the weaker or violating rand. This is worrying them day after day. So if South African government wants to express the world, they had to do something. They already did one thing to stimulate the employment, oh, at the expense of today’s high inflation. The second thing, they want to stabilize the rand. “Please do not depreciate”. Facing the US crash pressure (which actually gives too much forces on the rand depreciation), they finally decided to raise the prime rate again to hold on the rand depreciation.

But it is do bad to hear SA importers use the overpriced rand exchange to benefit the high price inflation. It is the worst to know South Africa is always trade deficits.

Thank for the stabilized rand. So many up class people can enjoy their Christmas Holidays overseas some place whose consumption price not scaring consumers away. All my professors already planned to go spending their Christmas overseas. At the time, I finish my exam, they will go.

Do you realize how many chance South African government may be able to reduce spending by raising the interest rate to stabilize Rand.