We are being robbed!

Februarie 28, 2012 in Sonder kategorie

House of Commons Standing Committee on Banking and Commerce, meeting in 1939;

 

“It is absurd to say that our country can issue R30,000,000 in bonds and not R30,000,000 in currency. Both are promises to pay; but one promise fattens the usurer (those asking interest) and the other helps the people”, and;

 

“It is the people who constitute the basis of government credit. Why then cannot the people have the benefit of their own gilt-edged credit by receiving non-interest bearing currency, instead of the bankers receiving the benefit of the people’s credit in interest bearing bonds?”

 

“Income taxes pay the interest to the bondholders”.

 

Then I found this little gem from our local regime:

http://www.sec.gov/Archives/edgar/data/932419/000119312512009168/d267756d424b5.htm

 

REPUBLIC OF SOUTH AFRICA

US$1,500,000,000

4.665% Notes due 2024

The 4.665% Notes due January 17, 2024 (the “Notes”) bear interest at the rate of 4.665% per year, accruing from January 17, 2012. Interest on the Notes is payable on January 17 and July 17 of each year, commencing July 17, 2012. The Notes mature on January 17, 2024. The Notes are not redeemable prior to maturity.

Application has been made to the Commission de Surveillance du Secteur Financier of the Grand Duchy of Luxembourg (the “CSSF”), as competent authority under Directive 2003/71/EC (the “Prospectus Directive”), to approve this Prospectus Supplement together with the accompanying Prospectus as a prospectus for the purposes of the Prospectus Directive.

Application has been made to the Luxembourg Stock Exchange for the Notes to be admitted to trading on the Luxembourg Stock Exchange’s regulated market (which is a regulated market for the purpose of the Market and Financial Instruments Directive 2004/39/EC) and to be listed on the official list of the Luxembourg Stock Exchange.

The Notes will contain provisions regarding acceleration and future modifications to their terms that differ from those applicable to South Africa’s outstanding external debt issued prior to May 16, 2003. Under these provisions, which are described beginning on page 11 of the accompanying Prospectus dated December 18, 2009 (the “Prospectus”), South Africa may amend the payment provisions of the Notes with the consent of the holders of 75% of the aggregate principal amount of the outstanding Notes.

Upon listing and admission to trading of the Notes offered hereunder on the Luxembourg Stock Exchange, copies of this Prospectus Supplement and the accompanying Prospectus dated December 18, 2009 may be obtained from the Luxembourg Stock Exchange website at http://www.bourse.lu.

NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER REGULATORY BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

USE OF PROCEEDS

The net proceeds from the sale of the Notes are estimated to be US$1,497,520,000, after deduction of the underwriting commission and discount and of certain expenses payable by South Africa. South Africa intends to use the net proceeds to repay maturing debt and for the general purposes of the government, subject to section 71 of the PFMA. See “The External Sector of the Economy” and “National Government Debt — Summary of External National Government Debt” in the Annual Report.

There can be no assurance that the Republic’s credit rating will not change

The Republic’s long-term foreign currency debt is currently rated BBB+ by Fitch Ratings and Standard & Poor’s and A3 by Moody’s. On November 9, 2011, Moody’s lowered the Republic’s credit rating outlook from “stable” to “negative” based on concerns that heightened political risk and spending demands were putting pressure on its public finances. Many issuers have been subject to rating downgrades in recent weeks. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. Any adverse change in the Republic’s credit rating could adversely affect the trading price of the Notes.

Blikskottel: hates it when he has to pay for things that he never asked for.

3 antwoorde op We are being robbed!

  1. …that’s the story of my life.

  2. Dis die storie van meeste mense se lewe en hulle wonder hoekom dit sleg gaan.

  3. Ja, jy’s wettiglik beroof.

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