On Saturday 20 Sep 2003 4:19 pm, Bill wrote: > You might remember that in making a point, Douglas > said the one thing he didn't object to with banks was > their dividends, for they are purchasing power. As a > general matter we want all citizens to effectively > become equal shareholders of the Reserve Bank who > receive dividends in supplement to their incomes. ----------------------------------
I am not against the banking system, nor am I against private shareholdings in Companies. What I am against is the rank opportunism seen here -- opportunism to benefit current holders of the shares. The present shareholders would immediately enjoy a P:E ratio of 1000% viewed against their actual investment of One Rand. A holder of the maximum permitted 10,000 shares would also have a value-leap in their asset from R10,000 to R1,000,000 realisable when they decide to part with them. Of course, for anyone purchasing the shares subsequently at that higher price, the P:E ratio will settle down to the norm of 12% to 18% -- a reasonable investment return in this country. Trading in shares after that would just be like trading in any other shares, which is acceptable and recycles buying power. My problem is with the sheer opportunism which would take what should belong to all the citizens and turn it into immense personal gain. (The shares were trading at a R1.30 immediately before the AGM.) Was I tempted to try and buy some after a I learnt of the move by the shareholder? Probably it did enter my mind. Would I think differently if I happened to own some shares? I really don�t know, but I hope not. It is something I have been debating with my Christian colleagues on another List. Had I been ignorant of the implications, I may have just accepted the windfall. But I think that, seeing the implications of the deal, my conscience would trouble me for ever after. I will find out what the shares are going for at the moment, if any are changing hands. I am curious to know because I think/hope that the scheme might have been nipped in the bud when the Minister of Finance commented that they would have to look into the legislation following on the meeting. A newspaper headline also said �Reserve Bank�s Shareholder Revolt Worries Cabinet.� The report ends with �The Reserve Bank has dug in its heels on the proposal as it does not want to be driven by profit.� I cannot see that private shareholding in the Reserve Bank can add any value to the Bank. It should be wholly owned by the state on behalf of all citizens. All profits should go into the Treasury and therefore tend to lower taxes, putting more spending money in the hands of all the people. That a privelleged few should appropriate even 10% of the profits of the SARB is a bad suggestion. Jessop. ----------------------- On Saturday 20 Sep 2003 4:19 pm, Bill wrote: > You might remember that in making a point, Douglas > said the one thing he didn't object to with banks was > their dividends, for they are purchasing power. As a > general matter we want all citizens to effectively > become equal shareholders of the Reserve Bank who > receive dividends in supplement to their incomes. > > In the United States, the Fed's shares are not traded > but held by member banks, which are automatically > shareholders. Now, the member banks have > shareholders so the beneficial ownership is evidently > more indirect in the US than SA. > > This from the Reserve Bank's site > http://www.reservebank.co.za/ : > > ***] > As a result of the delisting of the South African > Reserve Bank ("the Bank") from the list of the JSE > Securities Exchange South Africa ("the JSE") on 2 May > 2002, the Bank deemed it necessary to make the > undermentioned documentation available to the general > public and its shareholders in order to be of > assistance when using the Over-the-Counter Share > Transfer Facility (OTCSTF), which provides for a > facility to trade in the Bank's shares and which was > implemented on 3 June 2002. > > Messrs A Jooste (+ 27 12 313 3350 ) or E Brand (+ 27 > 12 313 3061) may be contacted should further > information be required in this regard. > [*** > > Jessop, I have an assignment for you. Please ring > these fellows up and ask if Reserve Bank stock is > available for purchase, and at what price. > > > > ----Original Message Follows---- > From: [EMAIL PROTECTED] > Reply-To: [EMAIL PROTECTED] > To: [EMAIL PROTECTED] > Subject: Re: [SOCIAL CREDIT] newspeak and the South African Reserve Bank > Date: Sat, 20 Sep 2003 14:29:12 +0200 > > Bill > Yes, I have been there and have read the document. [snipped] > > _________________________________________________________________ > Get a FREE computer virus scan online from McAfee. > http://clinic.mcafee.com/clinic/ibuy/campaign.asp?cid=3963 > > --^---------------------------------------------------------------- > This email was sent to: [EMAIL PROTECTED] > > EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcTQiE.c3V0dG9u > Or send an email to: [EMAIL PROTECTED] > > TOPICA - Start your own email discussion group. 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