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Forget 2042, South Africa could go broke in the next five years says expert

SA Money
© AdobeStock
South Africa's approach towards the dreaded "fiscal cliff" has been a hot-button issue in Parliament this week. A Wits University professor told the Standing Committee on Finance that the country would run out of money by 2042. But other experts believe a disaster is much closer than that.

When could South Africa "run out of money"?

Janie Rossouw said that Mzansi has 23 years left before it all goes to hell in a hand-basket, explaining that the "exorbitant" cost of ministries is one of the most punishing features of the national budget.

The EFF is calling for the government to scrap deputy ministers in an attempt to combat this wild spending. A total of 35 people in these positions make-up a wage bill of R68 950 000 a year.

Comment: See also:


Bad Guys

Russian, US resolutions on Venezuela fail to pass at UN Security Council

UN Security Council
© Reuters / Lucas Jackson
Members of the UN Security Council vote against the US resolution on Venezuela
Russia and China vetoed a U.S. resolution at the the United Nations Security Council expressing concerns over interference in affairs of a sovereign state. Russian draft also failed.

Russia's envoy to the UN, Vassily Nebenzia slammed the US resolution as "the culmination of the American show of double standards regarding Venezuela."

He insisted that the US knew from the start the document had no chance of passing and was only put together to justify further complaints that the access of humanitarian aid into Venezuela is being denied.

"We have serious concerns that today's [UNSC] meeting may be used as a step in preparing an actual, not humanitarian, intervention into Venezuela," the envoy said.

Bad Guys

Lawmaker lunacy: US politicians cross the aisle to create powerful legislation to sniff out Putin's 'secret' wealth

Putin with sunglasses
As the US saddles up for a contentious 2020 election, lawmakers have shown they can still work together on the nation's most pressing issues... by drafting a bipartisan bill to find out how much money Vladimir Putin has.

In what may be the most perfect illustration of why Congress boasts a 20 percent approval rating, Democratic Rep. Val Demings of Florida has given birth to the Vladimir Putin Transparency Act, a piece of trailblazing legislation which would require US intelligence agencies to sniff out all assets belonging to Russia's president.

Co-sponsored by New York Republican Elise Stefanik, the bill serves as a powerful rebuke to the partisan politics that continue to paralyze the legislative branch.

Comment: Americans can rest assured their nation's leaders are focusing on the things that really matter!




Light Sabers

North Korea will denuclearize for lifting of sanctions - Trump claims he won't press for a deadline - UPDATE: No agreement reached between Trump and Kim at summit

Trump Kim Jong
© REUTERS/Leah Millis
U.S. President Donald Trump during meeting with North Korean leader Kim Jong Un in the Metropole hotel in Hanoi, Vietnam February 28, 2019.
The Trump administration reportedly won't demand that North Korea disclose all the particulars of its nuclear program for now, dropping the request ahead of the second US-North Korea summit, which kicked off in Vietnam.

The move, which some have argued robs President Donald Trump's push for the "complete and irreversible" de-nuclearization of any merit, was reported by NBC News, which cited current and former US officials. The officials said that it does not mean that Washington will not seek the full disclosure of all alleged ballistic missile sites and nuclear polygons in the future, but that it has decided to shelve the demand for now.

With the second summit between Trump and North Korean leader Kim Jong-un in full swing, little is known about the agenda of the talks. It has been speculated profusely that the negotiations will focus on the Yongbyon Nuclear Scientific Research Center, considered to be the main pillar of the North Korean nuclear program.

Comment:
See also: And check out SOTT radio's: Behind the Headlines: Trump Wags the Iran Riot Dog, Kim Talks Korean Peace

Update (Feb. 28): No deal was reached as both sides walked away from the summit:
Kim purportedly offered to dismantle a nuclear facility at Yongbyon in exchange for sanctions relief, but Washington demanded more comprehensive denuclearization that included multiple nuclear development-related sites. The two-day summit was aborted early after Kim and Trump failed to make headway on the contentious issue.
Trump admitted that he called Chinese president Xi Jinping for help in the negotiations with N. Korea, signaling that the discussions were not going well:
I actually called him just recently to say hey, you know, whatever you can do on this. But he's been very helpful at the border, and he's been very, very helpful, I think, with North Korea generally. Could he be a little more helpful? Probably, but but he's been very helpful.
Despite there being no deal Trump said that he was promised by Kim that he wouldn't test weapons or anything nuclear-related:
"He said the testing will not start," Trump said of Kim. "He said he's not going to do testing of rockets or missiles or anything having to do with nuclear. And all I can tell is that's what he said, and we'll see."
Trump also explained why he froze military drills on the Korean peninsula:
"I gave that up quite a while ago because it costs us $100 million every time we do it. We fly these massive bombers in from Guam," Trump said.

"Exercising is fun and it's nice they play their war games - and I'm not saying it's not necessary, because on some levels it is - but on other levels it's not. But it's a very, very expensive thing."
The narrative coming from Team Trump is that Kim and North Korea "didn't do enough". From Mike Pompeo:
"We didn't get to something that ultimately made sense for the United States of America. I think Chairman Kim was hopeful that we would [reach an agreement]. We asked him to do more. He was unprepared to do that, but I'm still optimistic"
Ultimately "doing more" involves Kim agreeing to denuclearize completely. But as even Tulsi Gabbard points out, it's hard to blame Kim for refusing that "deal":

tulsi korea



Dollars

Zimbabwe struggles to convince doubters as it launches new currency

bond notes Zimbabwe
© REUTERS/Philimon Bulawayo
A petrol attendant counts bond notes at a filling station in Harare, Zimbabwe, January 28, 2019
Zimbabwe's government has a trust problem as it introduces a discounted currency in a bid to reverse chronic cash shortages that left people struggling to get hold of basic goods.

Businesspeople and economists welcomed last week's decision to abandon an unrealistic dollar peg for the country's surrogate bond notes and electronic dollars, which were merged into a new currency called the Real Time Gross Settlement (RTGS) dollar.

But they expressed doubts about whether the government has the fiscal and monetary discipline to stick to its commitment to lower the budget deficit and keep inflation in check.

Eye 2

Emmanuel Macron condemns all Yellow Vest protesters as responsible for violence

macron on throne
© Charles Platiau/AFP/Getty
French President Emmanuel Macron has warned Yellow Vest protesters who take part in violent demonstrations are by default "complicit" in fuelling the unrest that has shaken France for more than three months.

The grassroots movement started online as a peaceful protest against rising fuel costs, but has tapped into broader frustration at the sense of a squeeze on household purchasing power. He said during a debate with senior officials from eastern France: "Now it has to be said that those who join violent protests are complicit in the worst [acts]! We cannot, in a reasonable way, ban the protest but there needs to be a clear message from everyone against violence.

"I believe in a democracy that fosters debate but I do not believe in a democracy that fosters disorder."

He said it was a "miracle" no police officers had been killed.

Ten people have died in connection with the protests, most in road accidents related to Yellow Vest blockades.

Comment:


Broom

UK MPs award themselves above inflation pay rise

may parliament
© Xinhua / Barcroft Images
MPs will get an inflation-busting pay rise of more than £2,000 this April, bringing their total salary to almost £80,000.

Parliament's expenses watchdog today confirmed the salary for MPs will rise from £77,379 to £79,468 from 1 April 2019.

The 2.7% rise is the same as the average rise in public sector earnings in July 2018, the Independent Parliamentary Standards Authority (IPSA) said.

Critics said the rise had the "whiff of hypocrisy and double standards", and it comes as Parliament is paralysed over Brexit, with rowing MPs unable to thrash out an EU withdrawal plan.

Comment: Metro provides a timeline of MP salary increases, making this the sixth pay rise in six years:
MP salaries through the years

April 2010​ - ​£65,738
April 2011 - £65,738
April 2012 - £65,738
​April 2013 - ​£66,396
​April 2014 - ​£67,060
​May 2015 - ​£74,000 [It's notable that this was the year the Conservative party won the majority and came into power]
​April 2016 - ​£74,962
April 2017 - £76,011
April 2018 - £77,379
See also:


Eye 2

Democratic lawmaker asks for answers on travel costs during historic government shutdown

Pelosi
© J. Scott Applewhite/AP
Speaker of the House Nancy Pelosi takes questions from reporters as she arrives at the Capitol, the morning after President Donald Trump used his executive power to deny a military aircraft to her and other members of Congress for a secret visit to troops abroad, in Washington, Jan. 18, 2019.
The top Democrat on the committee that oversees government operations wants the receipts for government travel by top administration officials during the historic shutdown earlier this year.

Homeland Security and Governmental Affairs Committee ranking member Sen. Gary Peters, D-Michigan, says he "remains concerned that a culture of wasteful spending persists" in the administration and wants to know how much taxpayer money was used to pay for trips or the cost of canceling travel during the shutdown.

"Given this Administration's record of wasteful travel spending, I am concerned about the extent of travel at taxpayer expense during the government shutdown, and whether funds were being used appropriately," he wrote in a letter to Office of Management and Budget Director Mick Mulvaney.

Peters wants information on how much the government paid in fees or lost from canceling travel during the shutdown, including the president's canceled trip to the Davos Economic Forum in Switzerland. He's also asking for justification for new trips scheduled during the shutdown, like the White House retreat to Camp David during the first week of January.

Comment: See also Nancy Pelosi is so 'concerned' about government shutdown, she's on holiday at luxury Hawaiian resort


Snakes in Suits

'Shame on you!' 'No, shame on you!' Michael Cohen's testimony becomes a partisan farce

M.Cohen
© Reuters /Jonathan Ernst
Michael Cohen testifies before Congress
Donald Trump's former attorney Michael Cohen appeared before Congress on Wednesday to give testimony related to alleged "collusion" between Trump and Russia - but the hearing quickly descended into a partisan political "circus".

The hearing had barely begun before Republican congressman Mark Meadows tried to put a stop to it, announcing in a "point of order" that it should be postponed because Cohen's prepared testimony was not handed over 24 hours in advance. Lawmakers were upset that media got the testimony before them.

Republicans were also quick to point out the attendance of former advisor to Hillary Clinton and Democratic strategist Lanny Davis, who is now working for Cohen, saying that his testimony was really about getting revenge for Clinton after she lost the 2016 election to Trump.

Comment: More from RT, 2/27/2019: Michael Cohen predicts revolution if Trump loses in 2020
Trump consigliere turned federal informant Michael Cohen shared his fear that there will "never be a peaceful transition of power" if his former boss loses the 2020 election during a congressional hearing some called a 'circus.'

"You don't know him! I do!" Cohen insisted...before predicting Trump would refuse to step down even if he was defeated in 2020. "He is a racist. He is a con man. He is a cheat," declared Cohen, who pleaded guilty to charges he lied to Congress. Cohen failed to deliver anything tangible to the salivating Democrats on the committee, admitting he had no "real examples" of collusion and instead filling his time on the stand with public displays of repentance over his ten years of service to Trump.
"Everybody's job at the Trump organization is to protect Mr. Trump. Every day most of us knew we were coming in and we were going to lie for him on something. And that became the norm, and that's what's happening right now in this country," Cohen intoned. "This destruction of our civility to one another is just out of control."
"This is the same Michael Cohen who has admitted that he lied to Congress previously," Trump campaign spokesperson Kayleigh McEnany pointed out. "Why did they even bother to swear him in this time?"

Trump has accused Cohen of "lying in order to reduce his prison time" and has previously called his former lawyer - who rejoined the Democratic Party in October - a "rat" and a "weak person." Those hurt by Cohen's turncoating shouldn't have been surprised, however: the now-disbarred lawyer revealed he only joined the GOP after former Republican National Committee chair Steve Wynn learned he was a Democrat, while he was serving as vice chairman of the RNC's Finance Committee.

The congressional hearing, which coincided with Trump's Hanoi summit with North Korean leader Kim Jong-un, was originally scheduled for earlier this month but postponed because of "ongoing threats" against Cohen's family, according to his lawyer, Democrat operative Lanny Davis.

Cohen is due to report to federal prison to begin his three-year sentence on March 6. He was disbarred earlier this week.
Additional from Zero Hedge, 2/27/2019: Cohen Slapped with Criminal Referral Mid-testimony Over FARA Violation
Former Trump attorney Michael Cohen was hit with a criminal referral for violating the Foreign Agents Registration Act (FARA) by Rep. Mark Meadows (R-NC).

Meadows pressed Cohen over his apparent failure to list contracts with foreign companies that paid him for access to the Trump administration, including Novartis, which paid Cohen $1.2 million to act as a consultant on the Trump administration, as well as $150,000 from South Korea's Korea Aerospace Industries (KAI) and a payment from Kazakhstan BTA bank.


Shortly after the exchange, Meadows tweeted: "I just entered a referral for criminal investigation of Michael Cohen, who violated the Foreign Agents Registration Act by illegally lobbying on behalf of foreign entities without registering," adding "Cohen talks about "blind loyalty." His real blind loyalty? It's to the almighty dollar."
See also:


Arrow Up

Ukraine: Comedian Volodymyr Zelensky leads the polls in presidential race

Volodymyr Zelensky
© AFP
Ukraine presidential candidate Volodymyr Zelensky
Pacing back and forth, Volodymyr Zelensky rehearses his lines as a director instructs him on how to smile and shake someone's hand. Zelensky, 41, is running to become Ukraine's next president. But he is not shooting a campaign video.

In what he hopes will be a case of art imitating life, Zelensky stars in a popular TV series, Servant of the People, in which he plays a history teacher who is elected president after his rant about government corruption goes viral.

Zelensky has become one of the most recognized faces in Ukraine's entertainment industry in his more than two decades as a comedian, actor and producer. And while he plays a president on TV, he has no actual political experience.

But with five weeks to go until voters head to the ballot box on March 31, a recent poll suggests Zelensky is the front-runner, with more support than the incumbent, Petro Poroshenko, or another candidate, former Prime Minister Yulia Tymoshenko.

Educated as a lawyer, Zelensky is also a savvy businessman who many Ukrainians see as a self-made man, one whose wealth is the result of hard work.


Comment: More from France24: 2/8/2019: Ukrainian 'clown' Zelensky leading polls of presidential vote
The March 31 vote was supposed to be a battle between two of Ukraine's most experienced politicians: incumbent Petro Poroshenko and former prime minister Yulia Tymoshenko. But around 20 percent of Ukrainians now say they plan to vote for comedian and film actor Zelensky, putting him several points ahead of his main rivals in opinion polls last week.

The 41-year-old entertainer has tapped into popular discontent with the political class and has largely relied on the internet to get his message across. To some, his approach is reminiscent of the populist strategies that swept US President Donald Trump to power.

Supporters, however, see him as an alternative to an old guard that they say has never been able to follow through on promises to tackle corruption and improve living standards.

Poroshenko came to power in 2014 on the back of a pro-Europe, anti-graft popular uprising, while Tymoshenko was a face of the Orange Revolution that promised a new, fairer Ukraine -- in 2004.

"Zelensky is seen as a 'none of the above' candidate. Also he's fresh, he's modern, he's young, he's trendy," political analyst Vadym Karasyov told AFP. "People are tired of (old) ideas and the usual politicians."

But Karasyov said there was a difference between using the actor's candidacy to protest against the political elite, and actually wanting him to take charge of the country. Despite Zelensky's leading position in polls some experts say his bid remains a long shot because many of his supporters are young and will not bother turning out on election day.

There are also a record number of candidates in the race, adding to the vote's unpredictability.

Foreign diplomats have privately raised questions about his candidacy. "He was too general -- no concrete ideas. It was frightening if you consider that he is a presidential candidate," a Western diplomatic source told AFP following a meeting with Zelensky. "He lacks knowledge, but is very keen to learn," said reformist MP Sergiy Leshchenko, who also attended another briefing.

Like the other frontrunners, Zelensky says he wants the country to maintain a pro-Western trajectory.

Zelensky comes from the industrial city of Krivy Rig in central Ukraine. A father-of-two, he has a law degree but made his career on stage. He is artistic director of a studio theatre called Kvartal 95, reportedly part of a business conglomerate that has had business dealings in Russia.