Tyranny of debt

Finance Minister Trevor Manuel's medium-term budget yesterday signals the end of any hope for a strong rand.

Finance Minister Trevor Manuel's medium-term budget yesterday signals the end of any hope for a strong rand.

Our currency is plummeting and has lost almost a third of its value against the dollar this year, mainly because we import more than we export. And that bodes ill for inflation.

The global economic meltdown and social spending will cause the state to start spending more than it takes in, and everyone should fear the tyranny of living in debt.

We should all be thankful that Manuel's cool hand still steers our economic course.

But let's hope that folks in high places are planning lessons in basic economics for their wildest-eyed new colleagues who clearly fail to understand the delicate balance of a modern economy.

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