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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.
See you in court
twitchquotes:Hello Kripp, this is Anne, just letting you know that the DNA test came back positive and I will be seeing you in court to get my child support. Oh and btw she is now 4 years old and asking where is daddy ***, either way see you in court..
Hello Kripp, this is Anne, just letting you know that the DNA test came back positive and I will be seeing you in court to get my child support. Oh and btw she is now 4 years old and asking where is daddy ***, either way see you in court..
Ameng be thy name
twitchquotes:Our father who rolls in heaven, Ameng be thy name. thy goats may come, thy will be shattered, on earth as it is in heaven. Give us this day our daily cheese, and forgive us our throwing, as we forgive those who throw against us, and lead us not into Mayhem, but deliver us from Justice.
Our father who rolls in heaven, Ameng be thy name. thy goats may come, thy will be shattered, on earth as it is in heaven. Give us this day our daily cheese, and forgive us our throwing, as we forgive those who throw against us, and lead us not into Mayhem, but deliver us from Justice.
If you're a grown-ass man and you still wipe your ass, you're not a real man.
This should be self-explanatory but apparently, I have to justify myself.
There's nothing more feminine than using a product on your body. Makeup is 100% feminine and by the same logic, so is wiping your ass. I haven't wiped my ass in about 4 years, and I've NEVER had any issues. My digestive system is in the top 1% in terms of regularity, functionality, and performance, and I've never once felt the need to "clean up" after myself.
If you shit, and you need to wipe, you've got an emasculated GI tract and that's your own issue. Man up and get your shit (literally) together.
This should be self-explanatory but apparently, I have to justify myself.
There's nothing more feminine than using a product on your body. Makeup is 100% feminine and by the same logic, so is wiping your ass. I haven't wiped my ass in about 4 years, and I've NEVER had any issues. My digestive system is in the top 1% in terms of regularity, functionality, and performance, and I've never once felt the need to "clean up" after myself.
If you shit, and you need to wipe, you've got an emasculated GI tract and that's your own issue. Man up and get your shit (literally) together.
Vegan Propaganda
twitchquotes: Howdy Kripp, my name is Bill and I work in the meat industry. I'm getting pretty sick and tired of all the vegan propaganda you're spreading on this here livestream. You rave about the health benefits of becoming a leaf-muncher, but look at you! You're a pale, scrawny, hallowed-out husk of a man. Hell, you probably can't even lift up a hamburger with those pitiful arms of yours. If you don't stop hating on meat, I'm gonna come by in my truck and force-feed you my "giant sausage!"
KKona Howdy Kripp, my name is Bill and I work in the meat industry. I'm getting pretty sick and tired of all the vegan propaganda you're spreading on this here livestream. You rave about the health benefits of becoming a leaf-muncher, but look at you! You're a pale, scrawny, hallowed-out husk of a man. Hell, you probably can't even lift up a hamburger with those pitiful arms of yours. If you don't stop hating on meat, I'm gonna come by in my truck and force-feed you my "giant sausage!"