[MEDIA=twitter]1369561862170419202[/MEDIA]
then we will get our first 1 trillion notes… money is created based on market confidence, lack of it equals loss of value
Do you know what S.W.I.F.T is? Ama unathani chinaman gave us cash.and we are supposed to pat as cash!
How many times will this stupid question arise? Also, how many times will it be answered. This is why mlikuwa mnaambiwa msilale kwa darasa.
Ndii gave a long lecture to slayqueen malong on what it means to print money. Its unfortunate that in whole world, only the US is allowed to print money to pay debts.
[SIZE=7]US is `printing’ money to help save the economy, but some wonder how far it can go[/SIZE]
[SIZE=6]The Federal Reserve is creating dollars from scratch at an unprecedented rate, one of many tools to rescue the economy amid the coronavirus pandemic.[/SIZE]
Brent Schrotenboer, USA TODAY
Published 12:01 PM GMT+3 May. 12, 2020 Updated 12:45 AM GMT+3 May. 14, 2020
In its frantic scramble to save the American economy, the central bank of the United States seems to have the ultimate superpower.
It works like magic. With a few strokes on a computer, the Federal Reserve can create dollars out of nothing, virtually “printing” money and injecting it into the commercial banking system, much like an electronic deposit.
By the end of the year, the Fed is projected to have purchased $3.5 trillion in government securities with these newly created dollars, one of many tools it is using to help prop up the ailing economy during the COVID-19 pandemic, according to Oxford Economics.
“The way you and I have checking accounts in our banks, that’s how all these other banks have accounts at the Fed,” said Pavlina Tcherneva, an economist at Bard College in New York. “All the Fed does is literally credit them. They just type it in.”
But an unstated, practical result of the Fed’s bond purchases is that it creates money to finance the gigantic debt run up by Congress. The very idea of it tends to explode the heads of those who say dollars should come from work, savings and investment instead of thin air. In the age of a nearly $25 trillion national debt, such “sound money” concepts seem outdated – relics of a bygone era in which the value of a dollar once was based on a fixed amount of gold.
“What we’re working with now is fake money, a fake measuring rod,” longtime Federal Reserve critic and former Republican presidential candidate Ron Paul told USA TODAY. “It is unbelievable.”
In this case, the federal government’s bank isn’t just creating massive amounts of dollars from scratch. The government also is, in effect, using those newly created dollars to pay down its own debt, this time at an unprecedented scale because of the economy’s massive shutdown triggered by the pandemic.
This might sound like a financial fantasy: You mean we can pay our credit card bills by simply pressing a button?
Yes, the government can, unlike people and businesses, though it’s a little more complicated than that.
kenyan currency ni takataka
We devalue our currency and the loan costs even more to repay.
China is happy because they get to take over whatever was agreed upon as collateral.
More of their citizens come over to run the infrastructure.
if he prints more money to pay china, china will convert the ksh to yuans or dollars which means 1usd will be equal to ksh 120 for example. this is because during the covertion of ksh to usd the supply of ksh was more in the market than usd hence kenyan money loosing value. that means imports become expensive and since we import more than we export prices of good and services will go up creating inflation. that packet of unga going for ksh 120 will now be 130 etc which leads to demand for higher salaries to cater for the high cost of living. this leads to economic problems. the only time our economy did well was when during Kibaki’s tenure when 1usd was equivalent to ksh 67. If it was easy all countries with huge debts would just print more money. Uganda’s annual debt payment is Ugsh 1.21 trillion against a total revenue collection of Ugsh 1.25 trillion. now that’s a dangerous place to be coz it means 2021-2022 budget will be financed almost 100% by debt which means stricter rules from IMF and foreign interference. That’s what kenya needs to watch out for
Yaani bonobos everywhere.
It’s like the loan was given in Ksh or do we print USD?
This is the only instance where kuuliza inakua ujinga.
You can almost tell that this two villagers don’t have the answer to that question
Printing more money equals devaluing of the currency. Supply and demand is parcel of money mathematics
Hizi ndizo Mugabe alifanya thus their currency is useless, they must operate in dollar
Meanwhile the US is printing dollars to pay its debts and fund its budget. This is very unfair.
[SIZE=7]Can The Federal Reserve Print Money Forever? [/SIZE]
You can almost tell that you don’t know the answer to shit, and so you were eager to learn. I will give you one word; inflation. Now google on it and make your illiterate ass wiser.
Reason its fast falling from being a superpower - consequences of bad leadership
Chinese gave us money in dollars.
It’s not unfair, if Kenya was on US’s level they’d do the same shit. If you wanna be top dog and do top dog shit, then make your towards that top dog position.
I mean anybody who went through the 844 should be aware of that, @coldpilsner acts like it’s rocket science.
Watu wengine wakisoma, yeye alikua akipanga na kupangua geometrical set
What if we print the US dollars and pay back china?