Loading ...“So who is going to pickup the debts (mortgages) that white South African farmers have attached to their land when they get kicked off? They walk off with nothing, so there will be no way that the banks will be able to have any claim with them. I don’t think the new “owners” will take over their debts.
So either South African banks take it on the nose and have their balance sheets wiped out (i.e. the banks would collapse)… or the South African government will have to make good on the debts that are owed to the banks.
But where does that money come from? Issuing new debt (printing money).
And who will buy that and at what price? It would come at a huge price. And if South African bond yields skyrocket, what do you think will happen to the cost of capital in South Africa? Interest rates will go through the roof.”
https://www.zerohedge.com/news/2018-08-05/how-profit-inevitable-descent-south-africa