Wednesday, 16 October 2019

Diversity: The costs to White Americans

Have you ever wondered how much diversity costs a country in hard financial terms? Well regular commentator Dexter sent me this link which provides some fascinating analysis of the 2014 American Federal Budget. In a nutshell the average White American over his lifetime transfers $384,109 of his wealth to a single black American.  Or at least the Federal Government does it on his behalf. This is based on the following average annual net tax/welfare benefit trade-off:

White: -$2,795
Black: +$10,016


Normalising for the respective population ratios the average black would then be a net lifetime beneficiary to the tune of nearly $800,000. For married couples the figures would approximately double. Kids will widen the differential further. Surprisingly (to me at least, you know, those hard-working Mexican dreamers.....)  Hispanics are barely better than blacks, being net beneficiaries to the tune of $7,298 annually.

Bad and all as these figures are from a White perspective they tell only part of the story. Because they refer only to welfare, and Federal welfare at that. The financial drain on Whites of the black and Hispanic undertow extends much wider and deeper than that. For a start you must factor in State and Municipal welfare payments and subsidies of all sorts for which the tax/welfare benefit trade-offs should be broadly similar to those at the Federal level. Then factor in the likes of incarceration and general law enforcement costs (Hispanics incarcerated at twice, and blacks five times, the rate for Whites). This would add about another $2,000 annually to the individual White's annual tax bill. 

Then, and this is a huge although unquantifiable financial burden on Whites, consider the tens of millions of (mainly public sector) make-work AA 'jobs' occupied by persons of colour. I've read where about 40% of the black so-called middle class occupy such positions. And as everyone who's worked with blacks knows, they're generally useless at anything other than the most basic tasks. So indirectly Whites are paying for this as well. And the cost is stratospheric. The blog author's Conclusion states: The negative fiscal impact of blacks and hispanics is significant. All of this discussion of a “national debt” and “deficit” is primarily of function of blacks and hispanics. Without them, we would be running budget surpluses today, even when keeping the military the same size.

My conclusion is to point out what should be obvious: That this cannot continue. A system based on declining contributor numbers and a soaring population of net beneficiaries will hit the wall sooner or later. When probably depends on how long the Federal Reserve can get away with magicking up their funny money. 

Or when Whites revolt.

74 comments:

Gerry said...

I have recently had a problem with a housing association. For some friends
So I have contacted the housing ombudsman
My case worker is Asian his supervisor is African
For 10 days I have rang .which they told me to do if I didn’t hear from them . I ring every day sometimes 4 times only to be told he is busy on another call or on a break
Eventually I said please just give me a update by e mail
6 days later I ring again only to be told by the obvious white English person. I am sorry but I can see how many times you have rang
And your request for a update by e mail
Hasn’t happened . I can only apologise
And resend the request
To the non white in charge who can’t cope

English Tom said...

Absolutely correct Sav, the system is unsustainable. My view is that the elites want to smash the welfare state and are using the Cloward Piven strategy to accomplish this. Once it goes, the black crime rate, which is already excessive, will explode.
Good times coming!

Cassius said...

Good times coming!

Well, maybe Tom. Very very hard, at least to me, to determine how all of this will play out. I fear that Whites will just continually retreat. God knows how it will all end up.

cranky white woman said...

not a very scientific observation Savant,but when I worked in a large city hospital every year they would organize a holiday lunch and gift give away for the "underserved" children.Music was provided by a local high school band.I bet you can guess which group composed most of the lunch guests and who composed most of the band.
Every year,nogs and spics getting free lunch,whites and Chinese in the band.A glimpse into the not so distant future

Jay Whiteman said...

N. California PG&E Power Outage Day 2 "Calpocalypse" UPDATE

https://www.youtube.com/watch?v=7m1xcX_X0wc

English Tom said...

@Cassius

You can't retreat once you've been backed into a corner.

Armoric said...

Some people still insist that the third-world invasion is a scheme devised by the employers to lower the wages. But it doesn't make sense. If White people's money was not redistributed to unproductive non-Whites, the ruling class could extract much more of it for its own use.

Californian said...

There are a lot of subtle costs to what is sometimes referred to as Black Run America:

* De-policing. This is the flip side of mass incarceration. Blacks have become politically strong enough in some cities to force law enforcement to back off in policing as well as standing down in the face of riots. The result? Urban areas which are descending into anarchy.
* Shakedowns. All it takes is for some race hustler to scream "racism!" and corporate coffers open up while taxpayer dollars flow into outstretched African hands.
* The Space Program. Remember when the US put men on the Moon? Well, can't let YT have some great big program like manned space travel when all that money could be "better" spent on maintaining a permanent welfare class.
* Rewriting history. Related to the above point, thanks to Hollywood we now have a generation which believes that it was black women who made the manned space program work. Add to this the nonsense that comes out of black "studies" programs on campuses across the Homeland. Or the fact that colleges are now dropping their standards to allow more blacks into STEM courses. You lose your history, you lose your sciences, and you go into a downward spiral.

Can you say "New Dark Ages," YT?

D-FENS said...

Consider insurance costs, loss of home value and commuting costs to escspe the black undertow.

D-FENS said...

Something the analysis leaves out is costs of law enforcement, court costs and incarceration costs.

Anne said...

To cranky white woman, A friend of mine (very pro-migrant) who works in a community centre here in Ireland admitted - reluctantly - the same thing. She said the blacks contributed nothing, just took. Food, trips, games, wifi access and never gave a jot in return. Left their cups and plates to be collected and cleaned. And the centre depends on voluntary effort.

Katzenjammer said...

Always play the race card when you have been caught out as a serial looter. That's just the way niggers roll, it's the African way, how dare whites criticise.

DURBAN - Former President Jacob Zuma said he was being victimised because he is black.

Zuma addressed his supporters on Tuesday following a brief appearance in the Pietermaritzburg High Court.

He indicated his intention to challenge a court decision denying his application for a permanent stay of prosecution.

The former president faces charges of fraud, corruption and racketeering linked to the arms deal.

He allegedly received 783 unlawful payments between 1996 and 2005.

But he believed he was being targeted because of the colour of his skin.

“As a black person, you will face victimisation until you die, you will also encounter traitors.”

Zuma is expected to formally lodge his appeal documents by 1 November while the court is expected to hear the matter on 22 November.

https://ewn.co.za/2019/10/16/jacob-zuma-i-m-being-victimised-because-i-m-black

Celtic Morning said...

Hit the wall Savant? Shit hits the fan and your article is about shit.Never before has so many leached so much from so few.

Dave333 said...

Loads of space in America for Whites to retreat to. And that is the problem, Even in England Whites are just retreating, followed of course by the blacks and browns.

Chumlee's Brother said...

Armoric said...
Some people still insist that the third-world invasion is a scheme devised by the employers to lower the wages. But it doesn't make sense. If White people's money was not redistributed to unproductive non-Whites, the ruling class could extract much more of it for its own use.

....Good point Armoric. It's about wiping whitey out.

ianrob said...

Well put Sav'. One way traffic. It can't and won't last, nor is it intended to. It will destroy any welfare provision programmes currently operating. The world is going to be for the elite (self selected or by a suitable God), and as for the rest of us? Your guess is as good as mine. The whites in general, are better at some things than the, "immigrants", and they have their strong areas. I don't need to spell it out, but it is the whites who are being deliberately destroyed, so you can rest assured that any measures taken by the owners class, will advantage the immigrants and not us.

Our options? Bearing in mind that we can be listened to 24/7, and our messages read, I can't imagine doing anything in secret, and if it came to open conflict, our caring governments would be sure to back anyone we were fighting. All I can suggest is that we never go down without a fight. Keep your powder dry.

Poes and Latte said...

Europe/America and the Antipodes... this is coming your way when there are ENOUGH of them to mobilise. (((Turkey))) has a gun to Europe's head already as many of you are aware. Mexico??

https://www.defendevropa.com/2018/news/farm-list-expropriation-south-africa/

Chumlee's Brother said...

Blog author says...

The negative fiscal impact of blacks and hispanics is significant. All of this discussion of a “national debt” and “deficit” is primarily of function of blacks and hispanics. Without them, we would be running budget surpluses today, even when keeping the military the same size.

Unfortunately not. 'Debt' is used as a paralysing psychological weapon. So, there would still be a sovereign deficit, no matter what.

Poes and Latte said...

((((Europe is not white))))

https://www.defendevropa.com/2019/news/europe-is-not-white-black-rights-feminist-elected-in-portugal-celebrates-victory-with-african-flag/

Tony said...

Why you shoot my bro' he just robbin' sto' at gunpoint?
https://www.sott.net/article/422094-Siblings-outraged-brother-was-shot-while-he-was-robbing-Dollar-General-store-at-gunpoint

Anonymous said...

And of course there's also the tax-payers' money that's donated to brown and black countries.

Invictus

Chumlee's Brother said...



2nd Dolly Grips wears green shirt and places black under pants over head. Then does nothing whilst a "voice actor" answers scripted questions from Channel 4 'journalist'.

I was wondering what the game was, when all of a sudden the journalist mentions that incendiary topic ( pardon the pun ) of "The Good Friday Agreement".
The scripted "voice over" in a dubious faux Irish accent, explains how this agreement, which incidentally makes the brexit referendum in Northern Ireland, illegal, has in fact been superseded by subsequent agreements, and is now obviously defunct.

So, there you have it. The 'embedded' message to the UK and Irish masses, "The Good Friday Agreement" is no longer a stumbling block to brexit. So, says MI5.

I thought that the "Good Friday Agreement" was a 1979 film in which Bob Hoskins cuts Derek Thompson's throat with a champagne glass before banging Helen Mirren in the back of a Roller.

Fledgling said...

White British female underclass increasingly becoming the scum of the earth.

https://www.dailymail.co.uk/news/article-7584127/Horrific-moment-two-sisters-mock-disabled-homeless-woman.html?ns_mchannel=rss&ico=taboola_feed_desktop_tvshowbiz

https://www.dailymail.co.uk/news/article-7583769/Pregnant-attacker-released-prison-appeal.html?ns_mchannel=rss&ico=taboola_feed_desktop_news

Chumlee's Brother said...

Tony said...
Why you shoot my bro' he just robbin' sto' at gunpoint?
https://www.sott.net/article/422094-Siblings-outraged-brother-was-shot-while-he-was-robbing-Dollar-General-store-at-gunpoint


.....Yes. I sympathise. This proves institutional racism against blacks.
Black people should be able to rob and kill with impunity and not be subject to the 'Wests' rule of law. There isn't enough 'affirmative action' or 'hate crime' legislation that can undo the centuries of injustice that these people have experienced at the hands of whitey.


Fledgling said...

Here's another

https://metro.co.uk/2019/10/17/woman-admits-almost-suffocating-boyfriend-sitting-face-oral-sex-10932899/

What kind of man in his right mind would want to be anywhere near trash like this?

Is this the results/symptoms of the ((((feminazi league))) ? LOL

reveal1914 said...

The music stops when the dollar loses its global reserve status. When that happens pull up a chair and open a bag of popcorn. Its show time.

Barney said...

ianrob said...

"... and if it came to open conflict, our caring governments would be sure to back anyone we were fighting ..."

That's true, ianrob. It's already happening.

Guns are banned in England, but niggers have them. How?

Shootings in London and Liverpool seem to have died down recently in favour of stabbings and acid attacks, perhaps because someone successfully eeked and ooked ("explained") to the niggers that they're not supposed to be shooting their own species, that they're only supposed to shoot White People.

Bladed weapons are banned, but Pakis have machetes. I once spent some time in Bradford, and the machete-wielding monkeys went berserk when some Paki pop group failed to turn up.

WE can't have weapons, but immigrants can. I strongly suspect that zog issues the invaders with their weapon of choice on arrival.

----------------------------------

I'd like to see a complete list of incentives offered to cause jungle critters to want to come here over all the "goodies" on offer in other EUSSR countries.

We know they get free housing and spending money, probably considerably more than WE could hope to get on the dole.

We're supposed to pay something like £150 a year for the "privilege" of being brainwashed in our living rooms by the electric jew - otherwise known as tel-aviv-zion - that WE have to buy in the first place. No freebies for us. We only built this country.

They're exempt from this extortionate tax, and probably have the tv sets supplied at no cost to them.

They all have mobile 'phones, probably the latest and most expensive models.

(No, I'm not jealous. My five-year-old 'phone cost £2.99 new and does everything I want.)

A lot of them have modern cars. Who pays for them (as if we didn't know)?

It's rumoured that each immigrant, legal or otherwise, is paid €3,000 on arrival in any European country.

We can only guess at what other incentives (=bribes) zog offers these animals to persuade them to come here. Free bananas perhaps?

They also get unrestricted access to our women and underage girls while the plod persecutes anyone - any Human I mean - who dares to complain.

If the White Man doesn't soon overthrow (((the tyrant))), there won't be any White People a few years from now, but that's the plan.

JimBeamLight Goes Disney look there's goofy said...

Now you might have a problem with immigrants in London But I tell you that they know when a piss-take is happening. Watch this, they don't fuck about with middle class dumb cunts disrupting their journey home after a long hard working day.
I'm surprised that these organised NWO types weren't given a slap.


https://youtu.be/9P1UXYS6Bmg

Anonymous said...

(((Fledgling))) (commie tart) 17 October 2019 at 16:09
White British female underclass increasingly becoming the scum of the earth.

Shut up you dirty filthy big nose slag.


Jim said...

Sewerdish cop rides a wooden stick horse through brown town in Blandland.

The job of Sweden’s police forces is to look harmless so their guests of color feel safe while committing colorful acts.


https://dstormer6em3i4km.onion.link/watch-swedish-police-rides-wooden-stick-horse-in-blighted-area/

Anonymous said...


It's an act for the unknown
https://youtu.be/Ski8LcjvwVo

Jim said...

SEWERDEN (Mixland)

The whole country is an example of what happens when you let women run what intelligent and good-willed men have created.

Straight from their government’s website:

Sweden has the first feminist government in the world. This means that gender equality is central to the Government’s priorities – in decision-making and resource allocation. A feminist government ensures that a gender equality perspective is brought into policy-making on a broad front, both nationally and internationally. Women and men must have the same power to shape society and their own lives. This is a human right and a matter of democracy and justice.

Gender equality is also part of the solution to society’s challenges and a matter of course in a modern welfare state – for justice and economic development. The Government’s most important tool for implementing feminist policy is gender mainstreaming, of which gender-responsive budgeting is an important component.


You might think our governments are run by an evil cabal of string-pullers. That may be true at the highest levels, but when you talk to politicians you start to wonder if the governments are just run by complete idiots. Seriously.

Croesus said...

One school of thought says that the globalists actually want to crash the dollar as part of a Hegelian Dialectic which will result in desperate calls for a world currency.

Jim said...

Food, trips, games, wifi access and never gave a jot in return. Left their cups and plates to be collected and cleaned. And the centre depends on voluntary effort.

They won't donate blood either, in case whitey gets it.

Jim said...

Black-pilled whites giving up on clownworld. They just can't take it any more.

Or, there is an alternative view:

Despite concern over the rising suicide rates, researchers aren’t sure of the exact causes. A rise in depression among adolescents, drug use, stress and access to firearms might all be contributing factors, (((experts))) say.


https://dstormer6em3i4km.onion.link/suicide-rate-among-people-aged-10-to-24-increased-56-between-2007-and-2017-cdc-reports/


Use Tor to view.
www.torproject.org
Easy to install on windows, and works the same as a normal browser.

J said...

Why do they destroy families?


Everyone needs to look at the 1950 book “The Authoritarian Personality” by Theodor Adorno.

Adorno was a member of the Frankfurt School, a group of Jewish cultural terrorists who were run out of Germany by a certain very serious man with a mustache.

The Authoritarian Personality is an allegedly scientific examination of the “causes of fascism and anti-Semitism,” and the conclusion that is drawn is that a person who grows up within a strong family with a strong father figure, and identifies with their father as an authority figure, is more likely to support an authoritarian ruler and is thus more likely to support… turning Jews into lampshades and soap.

The solution then offered by the Jews is that the family must be abolished in order to save the Jews from being [denial deleted].


https://dstormer6em3i4km.onion.link/suicide-rate-among-people-aged-10-to-24-increased-56-between-2007-and-2017-cdc-reports/

https://www.pdfdrive.com/search?q=the+authoritarian+personality&pagecount=&pubyear=&searchin=

Jim said...

One school of thought says that the globalists actually want to crash the dollar as part of a Hegelian Dialectic which will result in desperate calls for a world currency.

And another school of thought is that they do not want to crash it because everything's going just fine for them right now.
Low interest rates allow them to buy everything.

Fledgling said...

Anonymous said...
(((Fledgling))) (commie tart) 17 October 2019 at 16:09
White British female underclass increasingly becoming the scum of the earth.

Shut up you dirty filthy big nose slag.
Struck a nerve have I ((ANONNYPUSSY)) ??

Fledgling said...

Annonypussy - this isn't you is it? Did you grow up in Essex bitch ?

https://www.telegraph.co.uk/expat/expatnews/4183759/Essex-woman-rants-against-whites-as-she-takes-over-a-snatched-Zimbabwe-farm.html

https://www.echo-news.co.uk/news/local_news/2265749.mugabes-spokesman-studied-in-southend/

https://www.pindula.co.zw/Bright_Matonga

Jen said...

Fledgling 17 October 2019 at 16:15

I'll tell you what kind of man would be anywhere near trash like that: a gay man cos that's not a woman that's a bloke.

rambaloosa said...

I think it's a bloke as well fwiw.

A. Wyatt Mann said...

Meanwhile, in Uganda:

https://www.youtube.com/watch?time_continue=125&v=4kF-zOXIZUk

Fledgling said...

Hermaphrodite possibly? The shoulders look female - the face male looking yes.

Anonymous said...

Jim said...
Food, trips, games, wifi access and never gave a jot in return. Left their cups and plates to be collected and cleaned. And the centre depends on voluntary effort.

They won't donate blood either, in case whitey gets it. KEEP THAT POISONOUS BLACK SHIT AWAY FROM ME!!

English Tom said...

@Reveal1914

Absolutely spot on. The chaos will be epic. Future historians will look at the first 4 or 5 decades of the 21st with complete amazement. The entire period will be referred to as: the general crisis of the 21st century, and it will follow the patterns of previous general crises. Buckle up for the ride!

English Tom said...

@Barney

Shootings in Liverpool are happening on a regular basis. So are stabbings.

Rapparee said...

The costs of maintaining 'equality' have manifold repercussions, particularly in a drastic lowering of standards.

Savant said, "And as everyone who's worked with blacks knows, they're generally useless at anything other than the most basic tasks."

...and yet their incompetence is actually encouraged from the dysfunctional, insane leftist 'education' system.

Social studies teacher Diane Tirado, 52, was fired from West Gate K-8 School in Port St. Lucie in south Florida …

“I was not allowed to give anything lower than a 50.”

But after a group of students from her class didn’t hand in any work at all, Tirado felt that they didn’t deserve any credit at all, let alone 50 percent, and so handed them “zero” grades. …

“It’s absurd to give someone something for nothing and to do that is creating a future that is pretty darn bleak.”

“We’re creating monsters out of our children,” she added. “We have a nation of kids that are expecting to get paid and live their life just for showing up and it’s not real…people that experience that kind of childhood…then you’re entitled for the rest of your life.”

School policy in the student and parent handbook

This school’s alleged “no zero” policy is an example of one of the latest parenting trends known as the “participation trophy” which claims that rewarding kids for mere participation will boost their self-esteem. Those that support “participation trophies” believe that eliminating the possibility of a “loser” gives all kids the recognition required to improve their confidence.

A policy that introduces kids to politically-inspired fantasies. In reality, no work leads to no reward. And the teacher was sacked! These kids are being taught to be free-loading parasites, that honest work and effort do not pay, but that numbers count in politics and awarding the goodies.

...How do you think they are being trained to vote?

https://allthatsinteresting.com/no-zero-policy-teacher-fired

Gaslighters Inc said...

Anonymous Jim said...
SEWERDEN (Mixland)

The whole country is an example of what happens when you let women run what intelligent and good-willed men have created.

You might think our governments are run by an evil cabal of string-pullers. That may be true at the highest levels, but when you talk to politicians you start to wonder if the governments are just run by complete idiots. Seriously.

17 October 2019 at 20:57

.............

Both are quite true. The evil cabal of string pullers rely on the apparatchiks to carry out Government in accordance to their wishes.

Phil said...

Blacks and dysfunction go hand in hand.

Heraclitus said...

I think the case is that politicians are just getting on the train (Gaslighters). The overall environment of destruction is being orchestrated by globalists at the highest levels and the pols don't see that or don't care. They know what will get them good media coverage and cushy jobs when they retire. The understand the converse as well.

Lord Haw Haw said...

How many on here knew or know this POS?
https://www.youtube.com/watch?v=kqmnRNcR3Bw

((They)) didn't/don't trust him either
https://www.infotextmanuscripts.org/liars_ought_to_part_1.html

Boomer said...

The Culture of Critique

A biographer of the relationship between Jews and Europeans can attempt to show the reality of the situation, but the Jew “is still treated as a victim.” And this “victim” elevates himself to the position of moral arbiter and arch critic. Armed with their very own sadomasochistic historical pastiche, Jewish activists direct the Critique into action for what one assumes to be a Racial Endgame. They deny this, of course, and call it a wicked conspiracy theory. But in reality, they are like the proverbial Irishman who denies he stole the bucket, adding the indignant criticism that it had a hole in it anyway. The Jews vigorously deny any role in the decline of Western culture, adding indignantly that Western culture is rotten, sick, racist, bigoted, and irrational anyway. Their denial is a form of admission. This is the essence of the Culture of Critique.

Great read ... https://www.theoccidentalobserver.net/2019/09/27/the-necessity-of-anti-semitism/

Jen said...

Anonymous Chumlee's Brother said...
Blog author says...

The negative fiscal impact of blacks and hispanics is significant. All of this discussion of a “national debt” and “deficit” is primarily of function of blacks and hispanics. Without them, we would be running budget surpluses today, even when keeping the military the same size.

Unfortunately not. 'Debt' is used as a paralysing psychological weapon. So, there would still be a sovereign deficit, no matter what.


17 October 2019 at 12:43
____________________________________

Chumlee you are absolutely right. People are disincentivised from saving because of low interest rates. If they are willing and able to save they are forced to invest in stocks and perhaps listed property shares which are overpriced exactly because of low interest rates.

Look at what the banks do with credit card debt which is the most expensive debt of all. You are always going to pay a higher interest rate to the bank than you can possibly make in an interest based savings account. I got an sms from my bank the other day saying congratulations, I don't have to pay the minimum charge on my credit card account this month but I would be charged interest on the entire outstanding amount if I took advantage of their generous offer. I pay off my credit card in full every month so I don't see how this would tempt me - but it certainly would appeal to the over indebted. The bank sends sms'es to all credit card holders to push them further into debt, luring them into paying interest on interest.

It's a filthy business.

Jim said...

Proof that Trump's wall is a waste of time. Look how hard it was for these white people to cross a wall border with no wall.

Just tell border guards to treat Mexicans as if they were white and immigration stops.

https://nationalpost.com/news/world/we-have-been-treated-like-criminals-british-family-who-accidentally-drove-into-u-s-detained-with-infant

Anonymous said...

Fledgling
Any updates on the Syrian Turkish migrants resettlements.

AnalogMan said...

Jen said...

If they are willing and able to save they are forced to invest in stocks and perhaps listed property shares which are overpriced exactly because of low interest rates.

Oh, it's worse than that. I recently heard via a broker in South Africa that pension funds are going to be required to invest half "their" assets in government securities. The amount held by those funds is about six trillion rand. So three trillion rand immediately becomes available to the government for essential projects like graft and corruption. Don't worry, you can have your share back when you retire. Promise.

Jay Walker said...

What should be of interest is the real rate of interest. Take any rate and subtract the inflation rate- that is the real interest rate.

The establishment claims that inflation is rising prices. The older definition was any increase in the money supply, regardless of whether or not price levels rose. I use this notion- the rate of inflation really means the RATE OF ADULTERATION. And this is around 7% over decades. If you add 7% water to wine, the wine has been inflated- adulterated- by 7%.

A saving account return- basically zero minus money adulteration- a loss of 7% per annum.
"Very INTERESTing". . .Arte Johnson 1967-73: https://www.youtube.com/watch?v=_SVSak1oBCw

Jen said...

AnalogMan, it's not quite as bad as that yet. For starters you are allowed to invest 40% of retirement funding money outside of South Africa, 10% elsewhere in Africa and the other 30% out of Africa. The remaining 60% must be invested within South Africa, but of that remainder 75% can be invested on the JSE and the remaining 25% of 60% in interest bearing instruments including government bonds and cash. So that amounts to 15% of total retirement funding contributions that must be invested in bonds and other interesting bearing investments. This applies to the private sector, not government employees. Anyone employed in the private sector can choose to put their entire 15% into money market accounts which is not a bad move because this has outperformed the stock market over the last couple of years.

It's the roiling black masses that are vastly over employed by government and state owned entities that are going to get screwed. They get guaranteed lifelong pensions based on number of years worked when they retire. Contributions towards these guaranteed pensions are invested in government bonds and state owned enterprise interest bearing debt. This used to work under the Nats when we didn't have so many state employees and in any they all smoked Rembrandt "elke hoes is 'n meesterstuk" cigarettes and didn't live long after retirement.

If the ANC tries to force private sector pension fund managers to throw money away into government and SOE trash debt they will be told to get stuffed. If the ANC push harder then companies will stop offering retirement funding benefits together.

AKAEW said...

Jen you are referring to Regulation 28 of the Pension Funds Act which controls the assets holdings and allocations of Retirement Funds both individual and corporate.

However there are definitely suggestions from Government relating to "Prescribed Investment" in other words a percentage of all retirement funds to be invested into SOEs.

The industry will not stand up to Government on this issue. They will comply just as they have complied with the myriad of ridiculous "band aid" legislation piled upon other legislation to curb apparent misdeeds for which there is already legislation.

They will respond by packaging up new funds under the title of whatever number regulation this will fall under and offer them up as compliant prepackaged portfolios.*

In South African financial parlance the word "Fund/s" can relate to Unit Trust(Mutual Fund) pooled prepackaged type investment portfolios or to the legislative platform that they are available on for example Pension or Provident Fund is the term used for corporate retirement investments which in turn use such pooled investment portfolios which are confusingly also called "funds".

Jen said...

AKAEW Yes the Old Mutuals and Sanlams will offer this pooled poison but there is no obligation for corporates or individuals to buy these products. You can just as well create your own discretionary (unregulated) portfolio and invest offshore. You won't get any tax breaks for that but who is to say the ANC will remove the tax concessions for pension funds as they are doing with medical aid contributions. The ANC is a ravenous out of control monster and your broker corporate speak is like straw in the wind.

Jen said...

AKAEW I have a background in the retirement funding industry and know how Regulation 28 and pension and provident funds work. When you see how government employees and the Public Investment Corporation are being stabbed in the back you realise how bad things are. But never mind Moodys will downgrade SA government debt to junk status next year. Eskom is already junk.

Chumlee's Brother said...



Jen, you hit that one out of the park!

Jen said...

Oops a few typos there in my comments but I was using a cellphone.

J Whiteman said...

"There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."

JM Keynes [sex prevert]

Anonymous said...

With that sort of cost it would be cheaper to repatriate them to the muddaland.

Anonymous said...

Savant said...

"Now what I'd love to see is a follow up meme saying “Islam is right about homosexuals”."

Islamists are the biggest fudge packers of all.

AKAEW said...

Anonymous Jen said...
AKAEW I have a background in the retirement funding industry and know how Regulation 28 and pension and provident funds work. When you see how government employees and the Public Investment Corporation are being stabbed in the back you realise how bad things are. But never mind Moodys will downgrade SA government debt to junk status next year. Eskom is already junk.

19 October 2019 at 12:23
........

Jen, yes I could see that you have knowledge in the field. My clarification was more for other reader's benefit than your own edification and for discussion.

Yes the raping of the Government employees sector and the Pension Funds etc etc are indeed a sign of the cancer within.

Eskom is all but finished. I do not see any turnaround for them. Too many billions into that black hole already and no sign to the end of the looting.

Jen said...

AKAEW said... Eskom is all but finished ...

The latest is that municipalities are not handing over employee pension fund contributions for investment at all. That's an even quicker way of doing it.

Lol.

Jen said...

AKAEW said ...

Eskom is all but finished. I do not see any turnaround for them. Too many billions into that black hole already and no sign to the end of the looting.

20 October 2019 at 21:35

The UIF website has not been working since Feb this year and UIF claimants cannot get their claims processed or paid out. This is - as far as I know - only for non taxpaying workers such as domestic workers.

What's worrying is that actual inflation - not what the defunct Dept of Statistics tells us - is so high. Even if you have your money invested offshore, whether out of the country or by asset swop, when you draw it down your rands don't go far. It may be because the dreaded Christmas is nearly upon us, but I have noticed some grocery items jump in price by 15%. Medical aid is going up by over 11% next year. No Lindt chocolates this year end.

Now factor in 5% of corporate and private pension fund contributions being used to pay Eskom debt on top of the insane prices we already pay, and it is not just pensioners who suffer. 5% compounded is going to mess up retirement savings for the still working.

Jen said...

There is nothing that the ANC cadres cannot stuff up.

UIF regresses to qualified audit opinion from auditor-general

Significant internal control deficiencies found in the financial management of the Unemployment Insurance Fund

23 September 2019

The Unemployment Insurance Fund (UIF) received a qualified audit opinion from auditor-general Kimi Makwetu for the 2018/2019 financial year, a regression from the unqualified opinions of previous years.

The government controlled UIF gives short-term relief to workers when they become unemployed or are unable to work because of maternity, paternity, adoption leave, or illness. It also provides relief to the dependants of a deceased contributor.

Makwetu found significant internal control deficiencies in the financial management of the fund which resulted in “material misstatements” being identified during the audit. The UIF had total net assets of R144bn at the end of March.

Makwetu said in the auditor-general’s report, which is included in the UIF annual report tabled in parliament last week, that he was unable to obtain sufficient appropriate audit evidence to substantiate the amount recognised as investments in associates, joint ventures and unlisted financial instruments.

“Management did not implement effective systems of internal control to verify the data used to determine the fair value of the investments in associates, joint ventures and unlisted financial instruments and the resultant impairment loss. The entity’s records did not permit the application of adequate alternative audit procedures.”

Makwetu said he was unable to determine whether any adjustments were necessary to the investments in associates stated at R3.7bn, joint ventures stated at R154m and unlisted financial instruments stated at R6bn.

The UIF stated an impairment on investments in associates at R569m and no impairment in investments in joint ventures, but Makwetu said he had no way of determining whether adjustments to this were necessary.

Furthermore, Makwetu said he was unable to determine whether any adjustment was necessary to the surplus from equity accounted investments stated at R497m because management did not implement effective systems of internal control to maintain reliable accounting records.

Makwetu also noted that disciplinary steps were not taken against some officials involved in the irregular expenditure of R87m in prior years, as required by the Public Finance Management Act.

UIF commissioner Teboho Maruping explained the regression in the audit outcome as being “largely due to non-submission of audited financial statements by the majority of our investee companies for audit purposes.

“The financial year-end of most investee companies poses a challenge for auditors because they are unable to conduct a complete audit due to outstanding financial information.”

Maruping said the UIF is in discussions with the Public Investment Manager (PIC), which acts as investment manager for the fund, to resolve the problem “as we intend maintaining our investments in the unlisted space to continue to create jobs and preserve those that already exist.”

He stressed that the fund remains committed to “clean and proper” governance and is confident “that the current opinion is not a reflection of poor governance within the UIF”.

ensorl@businesslive.co.za

AnalogMan said...

Jen said...

There is nothing that the ANC cadres cannot stuff up.

A counter-example to refute that assertion has yet to be found.

The last time I spoke to Uncle Nasty, he told me he'd heard from an old friend in SA that electricity only flows for a few hours a day, now. But we all knew that, didn't we? Since ESKOM fired its White engineers (is there any other kind?) it's been predictably doomed. More surprisingly, he said the internet and email are similarly restricted, and water reticulation, too. People have to collect their drinking water. In Johannesburg, not Harare. Or rather, as well as Harare. How widespread? He didn't say.

But you're quite happy with the new South Africa, aren't you? As long as you can afford your servants, so you don't have to make your own bed. I've got news for you: you are making your own bed.

Red Mist said...

No time to read... ?? - maybe they can't fucking read due to ADHD!
These fucking parasites (MPs) pick up £80K+ PA EACH from the UK taxpayer and are about as much use collectively as a one legged man in an arse kicking contest.

https://metro.co.uk/2019/10/22/mps-say-dont-enough-time-read-110-page-brexit-deal-10960668/

This kaffir from Ghana was ((elected)) as a local Tory MP. It didn't like Brexit so switches to ((Lib Democrat)) and STILL remains MP continuing to suck £80K from the local taxpayers who did NOT vote for it?

Just look at its CV and the positions delegated to it over the years. Farcical

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