Loading ...snip RE: SA land confiscation
Another important point is that a lot of this land that the government wants to confiscate probably has quite a bit of bank debt.
Imagine – you just bought a farm for, say, 50 million rand (that’s about USD $3 million). And in order to do so, you took out a hefty loan from a South African bank.
Now the government comes along and steals your property.
Are you seriously going to keep paying the loan?
Of course not.
This means that the banks are going to be stuck with massive defaults and bad debts, leading to a wave of bank failures.
So in their crusade to bring Social Justice to South Africa, the government is effectively engineering a banking crisis in their country.