The president has delivered a shattering blow to the South African economy. Just as the economy was beginning to show definite signs of renewed optimism, South African consumers have been frightened into “pulling their heads back into their shells”. When consumers and businesses are scared, they typically stop spending and conserve cash to cope with whatever the new uncertainties may occur. This will reduce the sales of white goods and big ticket items like motor vehicles. It will result in major investment projects being curtailed or abandoned and it will result in consumers “trading down” to cheaper products.