Printing money is a way of borrowing without interest.
15 Billion is not enough to do anything. Government needs to print 500 billion plus.
This Njoroge guy has turned out to be a lame duck
hiyo ni testing testing 123… kabla tuingie full marathon
The chickens are coming home to roost!
Anaset pace kwanza aone form niaje
The government is simply ‘overdrawing’ it’s CBK account. Same way you would your bank. Quantitative Easing is okay as long as it’s temporary and they won’t ‘print’ beyond certain limits. In this case it’s 5% of their collected revenue. So we’re not a Venezuela or Zimbabwe, at least not yet.
They should print enough to give everyone 100k each.
Not yet, right. But we are on their path & it’s just a matter of some few months.
That would be the quickest way to derail an almost collapsing economy like the Zimbabwe style. Besides, what more can you do with just 100k?
A Kes 5000 denomination note coming soon.
You are made to believe that inflation will occur but in reality people should be comfortable.
Do you have any little idea about inflation or you are just guessing?
Slow steps towards Zimbabwe style chief.
I know the myth surrounding it…it is a justification for the gap between the rich and the poor.
Guesswork is a very very bad idea chief. If you don’t really know anything else apart from myths, let me give you explain to you after you clearly understand what went wrong in Zimbabwe.
I actually believe we’re very far from it. Take any government debt schedule published on CBK’s website and check on the overdraft row. For example as at June 2020, the facility was in excess of 47B but this was paid up a month later. In September they paid back 4B of their overdraft. Point is it’s been happening and as long as they don’t exceed the 75B ceiling then we can live with it.
So, it will massively affect inflation if 75b is near or exceeded?
Most likely. Because then there will be excess money in circulation. Sort of the pre 1992 situation.
Those were decisions made by a few People, it was artificial.