Rating agencies are not class neutral... Malesela Maleka 01 November 2012 Malesela Maleka says the ANC leadership is being scapegoated for the capitalist crisis
Recently we have had to put up with stories in both electronic and the print media that are meant to empower us, as citizens, to stand up against the "crisis of leadership". Most commentators, analysts and even leading politicians agree that there is a crisis facing our country - a crisis of poverty, unemployment and rising levels of inequality. However there is a huge divergence among the role players when it comes to the true root causes of this crisis. What the press, commentators and others have told us is that the lack of leadership (political) in South Africa is responsible for this triple crisis we face. We have no problem facing up to the agenda that these role players are agitating for. They have never believed in the leadership capabilities of the current ANC collective in any case and consequently they are not being honest in their evaluation. Our responsibility is to organize our people so that they can see this agenda for what it is: another attempt to stop the election of a particular candidate we are all told incessantly not to like, not to trust and that he cant lead, period. This time around however the attempt is more sophisticated. It plays to people's emotions and seeks to focus on the very real issues and problems on which we are all agreed are a challenge that requires to be tackled. While we are all agreed that things are tough, it is incorrect to blame a particular leader for the systemic challenges in the South African economy and society at large. Framed in such emotional terms this flawed narrative can appeal to ordinary folk who find themselves stranded in poverty. But what concerns us here is the use of the downgrading of South Africa's credit ratings by several ratings agencies, including Moody's. This sub-narrative is being used to corroborate the main storyline about the crisis of leadership. Let us recall that the same agency also downgraded South Africa in the run up to the 52nd ANC Conference in Polokwane. At that time the downgrade was used to tell the nation, and ANC members going to Polokwane, not to vote for a particular candidate. Same line, same agency, same papers, same ANC delegates. Why must they listen to it this time around? The reason why this view will not gain traction among ANC delegates is because the news and comment feed we've been given has not been completely candid about the exact root cause of the problems confronting society. It has framed the news in such a way that the leadership of the ANC is seen as the scapegoat and not the actual system of Capitalism, which is undergoing one of its deepest and most prolonged crisis. Worldwide the result of the crisis has meant that more and more people are out of work, more and more people are getting poor while a tiny minority remains filthy rich. The structural deficiencies of our economy have not been properly elaborated on for people to understand the need for a radical structural shift in economic policy. In narrowing the argument, mainly driven by an elitist irritation with the president the press has also failed to look at the credibility of rating agencies such as Moody's, the very same agency which gave triple A ratings to the large American Banks who, by their reckless trading, were in fact at the root of the current financial crises faced by the capitalist economies of advanced countries. For example Moody's gave Lehman Brothers a triple-A rating only a few months before the mortgage company collapsed. The question of who is actually behind Moody's has never been critically engaged with in our country or by the media generally. Warren Buffet's Berkshire Hathaway, Fidelity, State Street, Blackrock and Morgan Stanley Investment are just a few of Moody's shareholders. These are indeed the world's biggest fund managers that are using Moody's to influence the market so as to increase their share value and profits. Their perceptions and views about South Africa are not class neutral or politically disinterested. In reality they represent the crudest form of capital trying to use its muscle and its institutions that are so tightly linked to the system of global governance to dictate terms to liberation movements and government all in an effort to shape and influence respective economic policy adopted in countries such as SA. So why should we now be persuaded to trust Moody's? And why is there a complete blackout of the investigations in the US and in Europe into the role of rating agencies in plunging those economies into the abyss they find themselves in today? Rating agencies are nothing but the creation of a capitalist system that needed to concoct confidence in its financialisation project and fictitious growth of economies. It is this inability to be critical when telling the South African story that should always lead us to reading the pessimistic messages with caution. It is this blindness to the reality of who and what Moody's serves that shows the class leaning of our own media. Our determination to radically transform the systemic features of the South African economy will never receive any positive feedback from Moody's or other rating agencies. So let's not lose focus! Let us focus on mobilizing the working class and our people to focus on our five priorities and the struggle to transform the growth path that sharks like Moody's have been profiting from. *Malesela Maleka is a member of the NC and NWC of the Young Communist League and SACP Spokesperson. This article first appeared in Umsebenzi Online, the online journal of the SACP.* On Fri, Nov 2, 2012 at 4:44 PM, Sibusiso Mchunu <[email protected]> wrote: > These rating agencies always reflect an imperialist posture when ever they > are dealing with Africa countries or government. > > its like they are saying Europe is good (when all indications show the > opposite) and all that is African is bad when the opposite is true. > > The local Credit Bureau on the other hand have been given free run, with > South African people credit check and rating, too. > > I am not so sure about the law of the country on this side, but however, > these local rating agencies, without permission to collect data of > individuals, they sell it to any credit providers without letting the > primary-person to know that somebody is enquiring about one's status. > > Credit providers are able to get individual rating much easier and simpler > that the individual credit profile-owner. We end depending on the credit > providers to tell us about our status rating, which is very difficult to > dispute, since the one has to provide proof, even if they such adverse > record was due to fraudulent means. > > The contract written such that if one opt to refuse credit check, then one > will not be offered any credit. Double sword knife, in deed, since when one > agrees, still there is no guarantee that one will get the credit, this is > all done without knowledge of a credit seeker, one will know at the end of > the process. > > These rating agencies unlike the international counter part (not that they > are good either) but the local rating agencies, while collecting data > (without permission) they don't advice people, about the level of > saturation, or indebtedness, so that one may review his/her life style much > early since all indicators are with them. > > should one seek these information on a regular bases, one has to pay for > such service, yet no individual offered to have his/her credit monitored. > > The once off, a year free credit check, i think it is not enough > considering that these rating agencies, they don't issue alerts which i > think, they should be able to do much more at least once in every three > months or at least when they can see one's credit rating is approaching > uncontrollable level, course it does not help to be told at the end, that > one is leaving beyond his/her means. > > Should this approach be accepted, everybody including the bank, may be > able to do responsible landing, both on the part of the Bank and or rating > agencies. > > Therefore i agree with cde Blade when it comes to these agencies, so that > we don't leave government to take care of things that social partner to > government, are not willing to accept that any responsibility as, we are in > this together. > > Amandla > > Sibusiso > > > > > > > > > On Fri, Nov 2, 2012 at 2:43 PM, VC <[email protected]> wrote: > >> >> [image: Business Day] >> >> >> *Nzimande proposes sociology for bankers*** >> ** ** >> ** ** >> *Phakamisa Ndzamela, Business Day, Johannesburg, 2 November 2012 * >> ** ** >> HIGHER Education and Training Minister Blade Nzimande says bankers need >> to be taught courses such as sociology in order to develop a social >> consciousness about the effects of lending.**** >> ** ** >> "We need to train banks with a social conscience," Mr Nzimande said on >> Thursday in a speech at a banking sector education and training authority >> (Bankseta) conference.**** >> ** ** >> He said he was concerned some credit providers were violating the >> National Credit Act by aggressively offering financial products through >> cellphones. He also expressed concern at the increase in unsecured lending >> in South Africa and that much credit was used to fuel consumption rather >> than for productive ends.**** >> ** ** >> Unsecured lending in South Africa has risen rapidly, leading to concerns >> consumers are overindebted which then prompted employees to demand higher >> wages.**** >> ** ** >> Excluding credit cards and overdrafts, unsecured lending in South Africa >> accounts for 9.6% of all lending — or a total of R1.36-trillion according >> to the National Credit Regulator.**** >> ** ** >> However, Mr Nzimande commended the banking sector for employing more >> black people. He said Bankseta needed to play a greater role in training to >> prepare blacks for managerial roles.**** >> ** ** >> Bankseta is among the few sector education and training authorities >> credited for being solvent and well run. This year it received an >> unqualified audit from the auditor-general for the 12th successive year.* >> *** >> ** ** >> Bankseta CEO Max Makhubalo said the body offered a few opportunities for >> bank employees to attend financial courses abroad, which prepared them for >> senior roles in South Africa’s banking sector.**** >> ** ** >> Mr Makhubalo also said that the University of Fort Hare offered a course >> in financial markets thanks to Bankseta. However, he said further training >> opportunities had to be offered, especially in investment banking, as South >> Africa was not producing the skills to match what was required by the >> fast-growing industry.**** >> ** ** >> Mr Nzimande also took a swipe at ratings agencies, saying that they were >> not consistent in the manner in which countries and institutions were >> rated. He questioned how ratings agencies had given top ratings to some >> international banks just before the 2008-09 global financial crisis. >> ** ** >> * * >> *From: >> http://www.bdlive.co.za/business/financial/2012/11/02/nzimande-proposes-sociology-for-bankers >> * >> * * >> * * >> ** >> *** * >> >> -- >> -- >> You received this message because you are subscribed to the Google Groups >> "CU with attachments" group. >> To unsubscribe from this group, send email to >> [email protected] >> For more options, visit this group at >> http://groups.google.com/group/cu-with-attachments >> >> >> >> > > -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. 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