If you’ve questioned the notion that today’s warfare will not be fought on the battlefields but in the passages of corporations which control the global financial systems, then yesterday’s assault on South Africa’s political and economic sovereignty should be enough to open your eyes.
Rating agency Standard & Poor Rating Services yesterday downgraded South Africa to junk status citing President Jacob Zuma’s cabinet reshuffle last week as the reason. Zuma fired former Finance Minister Pravin Gordhan and replaced him with Malusi Gigaba. The rating agency said the reshuffle had placed policy continuity at risk. S&P was scheduled to make its decision on June 2 but decided to bring it forward by months. Gigaba was not given a chance to even show or dispel his stated commitment upon his appointment that the government would continue to work with rating agencies.
The other rating agency, Moody’s also placed SA’s credit rating on review for a downgrade yesterday.
These two rating agencies are nothing but fraudsters who wield the immense powers given them to force countries to tow-the-line of the global financial empires of the US and London. They are paid by Wall Street banks. In February 2015, media reports said S&P had agreed to pay $1.5 billion to settle US civil charges that it had lied to investors in order to bolster profits. From 2004 to 2007, S&P falsely claimed its ratings of mortgage securities and collateralised debt obligations were objective and independent. https://www.usatoday.com/story/money/markets/2015/02/03/standard-poors-settlement-fcc/22788653/
In January 2017, Moody’s agreed to pay $864 million on charges that it inflated ratings of risky mortgage investments. It too had lied to investors. During the investigation into the 2008 financial crash, Moodys acknowledged it had not followed its own standards in rating the risk of securities backed by home mortgages https://www.nytimes.com/2017/01/13/business/moodys-inflated-ratings-inquiry.html?_r=0
The other rating agency, Fitch, was also cited as having manipulated ratings, giving low risk ratings to the highly risky mortgage securities. https://www.nytimes.com/2014/03/23/business/the-stone-unturned-credit-ratings.html
It’s quite clear these institutions are not to be trusted, are not independent and even more concerning, are profit driven. They will lie to push profit, shareholding but there exists a troubling conflict of interest – they are paid by the “very issuers whose securities they are rating,” the NewYork Times reported.
A mountain of evidence gathered for a lawsuit by two law firms shows that these two rating agencies “have been shameless tools of the banks willing to give just about anything a high rating in exchange for cash” according to the Rolling Stone. In incriminating emails, the executives of these rating agencies show just how much of crooks they are: http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financial-crisis-20130619?print=true
“Lord help our fucking scam….this has to be the stupidest place I have worked at,” writes one S&P executive.
“As you know, I had difficulties explaining “HOW” we got to those numbers since there is no science behind it,” confesses a high-ranking S&P analyst.
The emails go on to tell a story of the collusion between banks, hedge funds, mortgage lenders and rating agencies, to sell worthless loans at the prime AAA rating.
And so here we are in our country being held to ransom by these clear thugs – rating agencies. All of them are American based and get paid by Wall Street banks which they claim to evaluate objectively. You don’t have to think too deeply why the US credit rating isn’t under threat given the policies of the newly-elected President Donald Trump.
We need no longer be held at gunpoint or go to the battlefield with guns to stage regime change but we are dealing with a much more fearsome instrument – which with a purely subjective decision – can decide the fate of a country.
The Onslaught on BRICS
SA has been under attack as part of the global campaign to destabilise the BRICS (Brazil, Russia, India, China, South Africa), established as part of the developing nations’ decision to come-together and build political and economic partnerships. The first leg of the campaign has been successfully implemented in the assault and regime change of the legitimately elected government of former President Dilma Rouseff.
In SA, the campaign is a multi-pronged campaign including media, Western-sponsored opposition parties and non-governmental agencies (NGOs) who are working together and leading protests whose real motive is toppling a legitimately elected government.