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The post Jubilee and the Debt Crisis appeared first on Gado.
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I don’t know if I would want me kid to have a bounty of 50,000 immidiately he is born . I’m thinking of ways do helping him go to a country that you can see taxes working for you
As an Economist, a country should use as MUCH loans to fund DEVELOPMENT as long as the COUNTRY (County should also be included) is capable of paying the monthly interest and installments. Country loans are not like Personal Loans za KCB ama CooP.
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Name one country that has grown thanks to a lot of borrowing
United States of America. On April 29, 2016, debt held by the public was $13.8 trillion or about 76% of the previous 12 months of GDP. As long as USA pays the monthly installments everyone will give them cash to finance: Wars
As of September 2014, foreigners owned $6.06 trillion of U.S. debt, or approximately 47% of the debt held by the public of $12.8 trillion and 34% of the total debt of $17.8 trillion.[42] The largest holders were China, Japan, Belgium, the Caribbean banking centers, and oil exporters.
South Africa Government Debt to GDP 50.1 %
Germany Government Debt to GDP 71.2 %
Kenya Government Debt to GDP 52.8 %
Tanzania Government Debt to GDP 39.9 %
Uganda Government Debt to GDP 34.7 %
United Kingdom Government Debt to GDP 89.2 %
Almost b every b country has debt. I
Notice that most of your examples are industrialized countries
Shida ya Jubilee is not Debt ratio to GDP as vic - tor should say. The issue is transparency in the use of this money and the cost of the projects in relation to alternatives.
I wish all the debt that kamwana has taken can be put down in writing and the projects he has started listed. There is not even one! Kamwana’s problem is that he is not an ECONOMIST but a POLITICAL SCIENTIST. He is a like Mo1 especially the debate or conflict among individuals or parties having or hoping to achieve power. The new party is the only thing he has done.
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Endelea kutujuza hii maneno
Majority of Kenya’s building are built using Foreign Banks loans
As long as no Chinese will ever knock on my door and demand I pay up my part of the loan, these are some of the things I would rather not let mess up with my sanity.
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never gamble with your own money…billionaires tingz
What if a country defaults to pay the loans?
Governments are like drunken monkeys. They always run the show in deficit and need a constant shot of debt. As long as they play by the rules, money keeps coming in to pay the deficit. However, the moment they attempt to default to their most powerful lenders, everything stops. Argentina and other countries that boldly declared that they would not pay to the IMF had to eventually kneel down and pay the loan with interest. Greece recently said they would “squeeze blood out of a stone” to repay the debt.
Here is what happens to a country that messes with the IMF:
[ol]
[li]Everyone else stops lending to that country. That would force the government to drastically cut back on expenses, leading to domestic riots.[/li][li]Foreign investors would quit the stock markets and eventually even direct investments would vanish. That would ransack the stock markets and destroy domestic companies. More unemployment and more riots.[/li][li]The currency would fall like a rock. Here is how gold and US dollar rose against the peso after its default in 2001.[/li][li]When the currency falls that rapidly, the country would be unable to import essential goods. That would mean scarcity, poverty and riots. [/li][li]Inflation would rapidly increase destroying savings and destroying wealth. More riots. [/li][li]The riots and scarcity would destroy whatever remaining local companies. [/li][li]The riots, currency and everything else would make the country and its leaders laughing stocks of the world.[/li][/ol]
https://www.quora.com/What-happens-if-a-country-fails-to-pay-back-a-loan-from-the-IMF
I’m tempted to ask if you are in Kenya! Everyday @spear puts up a post on development projects being undertaken by the government, just yesterday there was a post about the French and some 3billion for putting up power up north, the SGR(tho’ some might argue about the cost) is financed by debt, and so is the lamu port project and the upgrade of the mombasa port etc. Don’t just criticize without facts!
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So who lends the lender? If America borrows from China, so does Kenya who does China borrow money from?
When and if Kenya goes the Greece way I will be sleeping on my networth, converted to bullion.
Debt issue too heavy to be accomodated in my harddisk,wacha babuon anisome.
Na huyu IMF anatoaga wapi izo pesa zote?
Our debt ratio to GDP is 42% which is low and healthy. The increased borrowing is not for recurrent expenditure but infrastructure developments which grows the economy, lowers the cost of doing business, improves the lives of Kenyans and facilitates trade/investment. Kenya has also a perfect record of repaying its debt so much so that we didn’t qualify for debt relief in 2000 as least development countries since our record shows we can comfortably pay our debts. Lastly our tax collections grow by 15% every year which basically shows we can handle debts as our economies grows and our revenues.
That said future infrastructure projects will be by PPP to slow down our debt uptake.
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