Why money is tight

[Dave A]

Take a moment to read this story on Sasol holding on to cash. This bit in particular highlights where I'm heading

Sasol ended December 2008 with cash of R22.7 billion, an eightfold increase compared with the end of December 2007.

although the whole article tells a story. Despite wholesome profits and plenty of cash reserves, Sasol does not even plan to pay its dividend in cash, rather considering issuing shares instead.

So how much of the local credit crunch is due to the GFM?
What are the cumulative effects of big corporates like Sasol sitting on bigger cash reserves and putting capital projects on hold?

[Graeme]

So many of the really big companies are either not paying a dividend, or reducing them - Anglo American has just passed its dividend for the first time in 70 years! They all seem to want to hoard cash. One possible (but not stated) reason is that there could be some juicy mergers or take-overs of cash strapped companies being planned for some future date. Back in the 1930's when circumstances were similar here was a huge flurry of these take-overs.

[Dave A]

And pulling back on spend and payout is making those potential targets even more cash-strapped!

So if this is such good strategy, why did the Sasol share price drop on the news? In the medium term Sasol's prospects should be looking even stronger.

[Graeme]

SASOL is widely traded on bourses overseas and all manner of considerations come into play, not the least of which is the price of crude, the extent of reserves of petrol/diesel in various countries and the value of the Rand. Trying to make short-term predictions on the share price of a huge and complex company like SASOL is rather like trying to make accurate short-term predictions of the weather.

[Dave A]

Trying to make short-term predictions on the share price of a huge and complex company like SASOL is rather like trying to make accurate short-term predictions of the weather.

Compared to predicting seasons?

Your preference for strategic investment rather than speculation shows

[Frankincense]

@Graeme
"One possible (but not stated) reason is that there could be some juicy mergers or take-overs of cash strapped companies being planned for some future date. Back in the 1930's when circumstances were similar here was a huge flurry of these take-overs."

As if they would mention they are doing it again....It's commonly known that these Giants withold all good things to drop others to thier knees and buy them up at a song. Just look at money supply in the 1930's and the crimes of the Federal reserve - OMG -they're still doing it......moving along...)

I'm so pleased you reffered to the 1930's...that has been such a Cornerstone of the current New World Order finalisation. A remarkable achievement and any group of wealthy men wishing to control a planet with some people on it can take a leaf outta the Fed's hat. The USA Fed really perfected thier Sh*t on that one....and the current GFM is business as usuall...

Sasol is but one of the many communicating participants in the GFM..they are all together in this...it's not a USA or Europe thing that we may feel or maybe not....it's the same folk controlling the same stocks & boards...

Actually the Global Financial Meltdown is a farse....as the same people who are making the most money, continue and are making trillions off it..nothing of thier Finances melted down at all!

I'd say the GFM is the deliberate meltdown of National Indepence of currencies as we are being forced to unify currencies into ONE...with ONE Government and one Financial system with everybody on it....

Sasol...I got you

[Dave A]

I am sitting here pretty much speechless.

[sgafc]

Abundance

Just sitting here and pondering if resources/ cash is really so scarce? True, the "recession" is biting all of us, but...Sasol is cash flushed, Sars a few percentages short of it target, R600 billion plus, but 3 years ago it exceeded its target of R300billion, my maths might not be accurate, but thats not the issue. Issue is some companies/ establishements are actually doing well in the "recession"(read Rhema's earnings). Truth is, we living in a world of abundance, trillions ($) circulate the globe daily. Food is in abundant supply, and the world, Africa especially, has untapped resources. Problem is, cash, minerals and food is controlled and hoarded, in the wrong hands mostly, of corporations and governments, that could not care a hoot about the rest of us...

[Dave A]

Aha! Now that's thinking this through.

Think about it. An economy is about the flow of money which is something rather different to the amount of money in the system.

Value is driven by sentiment - so we understand why value has gone walkabout. But cash is another story.

Is the problem that the money has gone, or is it simply getting stuck?

[sgafc]

My Economics I , teaches," Inflation is too much money chasing to few goods".

Reality is: To little money( tight, ) chasing to many goods!

Who is lying? Who reduces the money in circulation? Ask the banks, ask SARS, who stubbornly refuses to settle refunds of taxes, and break their own laws, by refusing to pay interest on arrears if they do indeed settle. You right Dave, that "flow" or lack of it,is killing economies...

[Graeme]

Your Economics I teaches also that a Countries' wealth is measured by the amount of money in circulation multiplied by the speed at which it circulates.

[Frankincense]

"Ask the banks, ask SARS, who stubbornly refuses to settle refunds of taxes, and break their own laws, by refusing to pay interest on arrears if they do indeed settle. You right Dave, that "flow" or lack of it,is killing economies..."

I've studied the same Economics I etc, but more importantly have done some of my sentence in a Bank....You are forgetting the most important part: Banks also intend killing you and your families. But I've been saying that for a while already...good to see who you want to ask why they kill economies...lmao

Economy - The word economy can be traced back to the Greek word oikonomos, "one who manages a household," derived from oikos, "house," and nemein, "to manage."

You should agree now Banks are killing economies(the management of a household - You and your families!)

"The Great Depression created a widespread misconception that market economies are inherently unstable and must be managed by the government to avoid large macreconomic fluctuations, that is, business cycles. This view persists to this day despite the more than 40 years since Milton Friedman and Anna Jacobson Schwartz showed convincingly that the Federal Reserve’s monetary policies were largely to blame for the severity of the Great Depression."

http://www.thefreemanonline.org/featured/the-great-depression-according-to-milton-friedman/

" The financial world has changed since the Friedman and Schwartz analyzed the mis-steps of the Great Depression and the definition of money has changed as well."
"When the non-conventional sources of “money” are included, the money supply is actually decreasing, not increasing"

http://www.kanundrum.com/blog1/?p=1084

( how pathetic economics is today - Satan forbids that aspirant economic students at our tertiaries actually realize how little of the truth they're being taught)



In the great depression (1930) in the US the Federal Reserve actually decreased the money supply to plunge the flesh further into turmoil and despair and that was afterwards...that's when they also forced the flesh to hand in their gold reserves....to abolish the gold standard....rendering money "legal tendered"..no longer backed by anything!!!

Have a look at what is happening :it's about a 30 minute clip - WTF?

http://www.pbs.org/moyers/journal/04032009/watch.html

Yeah...less money around....greater inflation....and yes, the same people who reduce the supply to destroy, gave you your pathetic economics syllabus...yeah..you got it.

[Dave A]

Francois - is there any chance we can nudge you into solution mode so that we can all stop being victims of this conspiracy?

All this knowledge is worthless unless it can be converted into action steps.

[Frankincense]

@ Dave
"so that we can all stop being victims of this conspiracy?"

Oh how I wish that was possible....but not ALL will escape... :-(

If you watch the clip, WILLIAM K. BLACK from the University of Mussouri is intelligent and enlightened concerning the topic of this post and is by no account a conspiracy theorist, he gives Bill Moyers ALL THE SOLUTIONS as to what we need to do to stop what's being done to us in the last minute or so of the clip

I see the value add in his suggestions, but I see more realistically how the solutions to this problem are totally not gonna happen in the near future....(am I wrong?)

He mentions that staff with integrity need to be placed in charge of our large corporates/banks as clearly highlights thier incompetence to be moral so as to stop hurting us and conspiring against us...but we know....there's a DREADFULL p6rop6hes6y to be fullfilled first which I don't like going into too deep 'coz I get labelled a conspiracy theorist etc....


Woe to the multitudes of flesh subject to this "event of conspiring men that hurt the very management of thier own loving homes"

Usually we'd change what's within our powers as humble family men
carry sufficient serenity to accept that which we cannot change
and pray for wisdom to know the difference

I enjoy showing love to others and sharing knowledge with those who enjoy light...that's been in my nature since youth...I show mercy and trust too easily occasionally....it's a personal spirit...but through having made naive mistakes and having it been taken advantage of, have learned not to show mercy unto the merciless always... being loving & diciplined is a sacrifice...so not everyone's down for that...alot of readers just wanna get on with thier lives irrespective of who's eating them up everyday..or who they eating up...

You gonna have to look within yourself as to how best apply your gifts to improve this pathetic situation upon the globe right now....my answers may not find favour in your eyes...

From what I see, vast amount of readers reading our posts may read them coz they "enjoy" them....as long as we share THE TRUTH with people... we should assist in propagating true freedom...or be placing in a better position to decide for themselves what can work for them be it business wise or domestically...

I've mentioned we are entering a period where we cannot buy or sell without accesses...as this worsens we will all have to make important desicions...at this stage we can still discuss these things...but soon it will be no more time for talking...and time for action....

For now...love thy neighbour....I hope that's practical enough...

later...

[sgafc]

Francois - is there any chance we can nudge you into solution mode so that we can all stop being victims of this conspiracy?

All this knowledge is worthless unless it can be converted into action steps.

The banking/economic scam is a fact, "theories" should never be entertained, but when I see reservations of the economic collapse expressed by esteemed finance analysts, economic professors(world wide), then I know the conspiracy "theorists" will be vindicated in future for all their predictions. Its not that they are fortune tellers, just they understand how the Illuminati operates, as Francois expounded on the "Great Depression".

Solutions:
VERY SIMPLE,
PEACEFUL NON CO-ORPORATION WITH THIS SICK SYSTEM.
REDUCING DEBT, AND RELYING MORE ON CASH OR "EARNED MONEY", AND LESS BORROWED MONEY(THE BANKSTERS TRICK)
AND VERY IMPORTANTLY, CRITICAL THINKING!