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The year is 2043 Covid variant phi beta epsilon is ravaging 0.0026% of the population
The year is 2043 Covid variant phi beta epsilon is ravaging 0.0026% of the population, you go outside for your government mandated 30 minute exercise, it's 1 a.m. not the best time, but they alternate your schedule so eventually everyone does get some sunlight. You quadruple mask and put on your plastic helmet. You gaze longingly at the sky. A man riding his bicycle points his flashlight at you "Why aren't you doing your stretches and cardio?" He asks, you recognize him as your neighbor (maybe, it's been some time since you last saw anyone). "It's because of people like you not obeying that the lockdowns have been extended another 4 years." He mumbles through his layers of masks. He reports you to AlphabetGoogle and your social credit score drops 5 points, good luck buying bread this week.
The year is 2043 Covid variant phi beta epsilon is ravaging 0.0026% of the population, you go outside for your government mandated 30 minute exercise, it's 1 a.m. not the best time, but they alternate your schedule so eventually everyone does get some sunlight. You quadruple mask and put on your plastic helmet. You gaze longingly at the sky. A man riding his bicycle points his flashlight at you "Why aren't you doing your stretches and cardio?" He asks, you recognize him as your neighbor (maybe, it's been some time since you last saw anyone). "It's because of people like you not obeying that the lockdowns have been extended another 4 years." He mumbles through his layers of masks. He reports you to AlphabetGoogle and your social credit score drops 5 points, good luck buying bread this week.
I am going to short the whole country of South Africa
I assure you, this ISN'T going to get political. Because by all accounts South Africa is screwed. My planned position is bottom paragraph.
Under the current ANC government there has been a general degeneration of all aspects of South Africa. Due to systemic nepotism, there are math teachers that don't know what square roots are, army officers that can't read, and cops that have never fired a gun. The practice of fictitious employees that take checks but don't work there is widespread enough that the government has drove itself into insolvency already. Estimates are that some 80% of government funds are misused in some way, ranging from government subsidies given to businesses owned by government officials to simply going missing from accounts. The ANC solved this, against advise of wiser people, with quantitative easing. Which is a fancy term for printing money, and since they could never possibly reverse that printer they're inflating the South African Rand which is why they've had two bouts of inflation near 9% twice in the past 20 years.
That is all besides how the largely defunct government doesn't prevent anything on the ground. Roaming bands of pirates (many affiliates of the Marxist Economic Freedom Fighter party) will poison guard dogs and torture and murder residents often for as little as car keys and groceries. Many communities are functionally independent and take the law in their own hands, and in many areas utilities are defunct (untreated sewage goes in the river, untreated tap water comes out and it smells as disgusting as it sounds). South Africans are more likely to have their asylum applications accepted than any other nation as there are so many tales of rape and murder and threats of ethnic cleansing. This equates to the most educated citizens leaving SA and most SA based businesses diversifying out of the country as literacy rates have been falling. These disillusioned departures are not new, as they include the most famous Afrikaner in history Elon Musk who is now a naturalized American.
Edit: The Economic Freedom Fighter's usual acronym isn't used because it's also the ticker for a penny stock.
I first thought about shorting South Africa over a year ago when I was researching the country (I'm a historian, I read much on the country for fun). I found the only index tracking SA (EZA) wasn't an accurate representation of SA economy and buying puts on it was useless. It tracked only the largest cap firms, which are the aforementioned companies diversifying out of SA (mostly to other parts of Africa). Which is why it's a volatile ETF that overall trades sideways. Buying puts on it wouldn't really capitalize on SA going full Rhodesia/Zimbabwe. Zimbabwe having experienced the general breakup of modern institutions and hyperinflation due to similar problems.
My new broker, IBKR, allows negative currency positions as long you post 10% as collateral. Now my native currency are US dollars, where inflation in 2020 was 1.4% while the South African Rand's inflation was 4.12% in 2020. That equals a 26.8% return on investment per year from that simple short position. But I'm expecting US Dollar inflation to stay between 1-2% a year while the Rand (ticker ZAR) stays north of 4% with inflation spikes inevitable over the next decade. This position also reduces my market beta, much needed for me as I've got hugely leveraged positions on American ETFs. This isn't a short term swing trade, I'm waiting for SA to implode.
I assure you, this ISN'T going to get political. Because by all accounts South Africa is screwed. My planned position is bottom paragraph.
Under the current ANC government there has been a general degeneration of all aspects of South Africa. Due to systemic nepotism, there are math teachers that don't know what square roots are, army officers that can't read, and cops that have never fired a gun. The practice of fictitious employees that take checks but don't work there is widespread enough that the government has drove itself into insolvency already. Estimates are that some 80% of government funds are misused in some way, ranging from government subsidies given to businesses owned by government officials to simply going missing from accounts. The ANC solved this, against advise of wiser people, with quantitative easing. Which is a fancy term for printing money, and since they could never possibly reverse that printer they're inflating the South African Rand which is why they've had two bouts of inflation near 9% twice in the past 20 years.
That is all besides how the largely defunct government doesn't prevent anything on the ground. Roaming bands of pirates (many affiliates of the Marxist Economic Freedom Fighter party) will poison guard dogs and torture and murder residents often for as little as car keys and groceries. Many communities are functionally independent and take the law in their own hands, and in many areas utilities are defunct (untreated sewage goes in the river, untreated tap water comes out and it smells as disgusting as it sounds). South Africans are more likely to have their asylum applications accepted than any other nation as there are so many tales of rape and murder and threats of ethnic cleansing. This equates to the most educated citizens leaving SA and most SA based businesses diversifying out of the country as literacy rates have been falling. These disillusioned departures are not new, as they include the most famous Afrikaner in history Elon Musk who is now a naturalized American.
Edit: The Economic Freedom Fighter's usual acronym isn't used because it's also the ticker for a penny stock.
I first thought about shorting South Africa over a year ago when I was researching the country (I'm a historian, I read much on the country for fun). I found the only index tracking SA (EZA) wasn't an accurate representation of SA economy and buying puts on it was useless. It tracked only the largest cap firms, which are the aforementioned companies diversifying out of SA (mostly to other parts of Africa). Which is why it's a volatile ETF that overall trades sideways. Buying puts on it wouldn't really capitalize on SA going full Rhodesia/Zimbabwe. Zimbabwe having experienced the general breakup of modern institutions and hyperinflation due to similar problems.
My new broker, IBKR, allows negative currency positions as long you post 10% as collateral. Now my native currency are US dollars, where inflation in 2020 was 1.4% while the South African Rand's inflation was 4.12% in 2020. That equals a 26.8% return on investment per year from that simple short position. But I'm expecting US Dollar inflation to stay between 1-2% a year while the Rand (ticker ZAR) stays north of 4% with inflation spikes inevitable over the next decade. This position also reduces my market beta, much needed for me as I've got hugely leveraged positions on American ETFs. This isn't a short term swing trade, I'm waiting for SA to implode.
I hate taking shits. Taking shits is the worst function of the human organism after sex. You have to sit on the most uncomfortable seat ever, then you have to go through so much pain to push the shit out of your asshole (not to mention sometimes they get stuck in there). And as if those weren't enough then you have to wipe, you have to take your hand along with toilet paper and shove it up your asshole, this process can sometimes take minutes out of your life, it fucking sucks.
TL;DR I hate shitting
I hate taking shits. Taking shits is the worst function of the human organism after sex. You have to sit on the most uncomfortable seat ever, then you have to go through so much pain to push the shit out of your asshole (not to mention sometimes they get stuck in there). And as if those weren't enough then you have to wipe, you have to take your hand along with toilet paper and shove it up your asshole, this process can sometimes take minutes out of your life, it fucking sucks.
TL;DR I hate shitting
Toast stares at the screen
twitchquotes:Toast stares at the screen. His vision begins to fade. "My jaws that bite, my claws that catch". This message burns into his brain. As the armor count slowly rises, Toast's sanity begins to fade. "Just another 1000 armor, then I can quit" he tells himself. His viewers are begging him to stop, it's been weeks and weeks at this point, As he finally begins to succumb to his fatigue and eye strain, he realizes this is the end. He utters one final word, as falls face down onto his desk. "...PogChamp.
Toast stares at the screen. His vision begins to fade. "My jaws that bite, my claws that catch". This message burns into his brain. As the armor count slowly rises, Toast's sanity begins to fade. "Just another 1000 armor, then I can quit" he tells himself. His viewers are begging him to stop, it's been weeks and weeks at this point, As he finally begins to succumb to his fatigue and eye strain, he realizes this is the end. He utters one final word, as falls face down onto his desk. "...PogChamp.