In case you’ve been wondering why the BRICS (Brazil, Russia, India, China, and South Africa) bunch included South Africa, in spite of South Africa’s overtly corrupt and totally inept, uneducated government, the least productive and motivated people on the face of the earth, the world’s worst crime, and a crumbling infrastructure, since nothing has been maintained since Mandela took over?
Here’s the answer: GOLD. In the 70’s, South Africa produced 80% of the world’s gold. Thanks to unions, low productivity, increasing world pressure to molly coddle workers, and this pathetic government since 1994, it now only accounts for 20% of world production. With the right management, the potential is still there, plus numerous other minerals and farming.
When you have Chinese and Russians running the show, those mines will run like clockwork, and there will be no concern about working conditions, unions, being politically correct, or being afraid to “offend” anyone. If they thought things were tough under Apartheid, they “ain’t seen nuthin’ yet,” believe you me. Think Siberian Salt Mines. Think “blood out of a stone.” They will drag every last gram of gold out of those mines. And it will be easy. With an uneducated, unscrupulous, and incompetent SA government that can easily be bought and bribed and the United States being systematically hobbled by its own leader, there are no barriers.
The BRIC countries have openly been buying and hoarding gold in preparation for the coming collapse of the once great US dollar, and they need every ounce they can get. So why not own the South African mines? And they have enough hard working people to manage and run and even work those mines.
Russia and China now produce most of the world’s gold themselves, anyway; they know how. Why would they even bother employing South African blacks except in a slave capacity? Want proof? See this. They will rule they way they always have, with an iron fist.
And that is why, in my opinion, South Africa is the tail end of BRICS; it’s the only reason that makes sense. Plus perhaps strategic control of shipping routes, but I believe it’s the gold.
Robin Elliott LeverageAdvantage.com