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IMF: Kenya's economy self reliant, don't need EU
Rank: Member Joined: 2/18/2011 Posts: 448
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hisah wrote:josimar wrote:With the Head of IMF in town, am just wondering what are these external shocks that the Treasury is seeking to cushion the country from...? Are they foreseeing something We are not aware of? When you float a global bond you open yourself up to international bond vigilantes... That hot money when things go bananas can make things very nasty since no CB is bigger than the market when it comes to quickfire liquidity. See how indian is struggling with gold control...
Read about G. Soros on how his bets made BoE squirm as the pound got a proper shaving back in 1991. Other samples are mexican tequilla crisis, argentine bond crisis, russia bond crisis, asian crisis etc.
The other day KES was being thumped and CBK almost lost the plot, but survived. They've learned their lesson.
**Risk management is crucial this year...
@hisah do you think IMF shall advise GoK on some cost cutting measures such as reduction of the so called bloated civil service as well as introduction of tax other measures such as capital gains tax so as to increase GoK revenue into more meaningful infrastructure projects?
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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mibbz wrote:hisah wrote:josimar wrote:With the Head of IMF in town, am just wondering what are these external shocks that the Treasury is seeking to cushion the country from...? Are they foreseeing something We are not aware of? When you float a global bond you open yourself up to international bond vigilantes... That hot money when things go bananas can make things very nasty since no CB is bigger than the market when it comes to quickfire liquidity. See how indian is struggling with gold control...
Read about G. Soros on how his bets made BoE squirm as the pound got a proper shaving back in 1991. Other samples are mexican tequilla crisis, argentine bond crisis, russia bond crisis, asian crisis etc.
The other day KES was being thumped and CBK almost lost the plot, but survived. They've learned their lesson.
**Risk management is crucial this year...
@hisah do you think IMF shall advise GoK on some cost cutting measures such as reduction of the so called bloated civil service as well as introduction of tax other measures such as capital gains tax so as to increase GoK revenue into more meaningful infrastructure projects? YES IN THE AFFIRMATIVE the talk has been peddled for a while in preparation "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Interesting. For 10yrs, I don't recall the IMF Head setting foot in Kenya. 9 months and the young idiot can't find his way without IMF and presumbly World Bank's help. Moi part deux indeed Sehemu ndio nyumba
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Mainat wrote:Interesting. For 10yrs, I don't recall the IMF Head setting foot in Kenya. 9 months and the young idiot can't find his way without IMF and presumbly World Bank's help.
Moi part deux indeed Don't be too harsh on him. Devolution is also 9 months old. The opposite of courage is not cowardice, it's conformity.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mibbz wrote:hisah wrote:josimar wrote:With the Head of IMF in town, am just wondering what are these external shocks that the Treasury is seeking to cushion the country from...? Are they foreseeing something We are not aware of? When you float a global bond you open yourself up to international bond vigilantes... That hot money when things go bananas can make things very nasty since no CB is bigger than the market when it comes to quickfire liquidity. See how indian is struggling with gold control...
Read about G. Soros on how his bets made BoE squirm as the pound got a proper shaving back in 1991. Other samples are mexican tequilla crisis, argentine bond crisis, russia bond crisis, asian crisis etc.
The other day KES was being thumped and CBK almost lost the plot, but survived. They've learned their lesson.
**Risk management is crucial this year...
@hisah do you think IMF shall advise GoK on some cost cutting measures such as reduction of the so called bloated civil service as well as introduction of tax other measures such as capital gains tax so as to increase GoK revenue into more meaningful infrastructure projects? IMF is a debt collector. Debt collection has never been a merciful or moral exercise otherwise the lender will never get the money back.
Tax on basic commodities was bad enough. I expect this to become a thorn in future and already I can see free education is the first casualty.
I expect telcos to also get boxed in time and again and if there is a way to forestall mobile money this too will be on the hit list.
It's never about the progress of the economy, but how to make it hard for you to pay it back. Debt serfdom is the best summary.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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On a softer note,  How many have been to the GPO banking hall lately? There, the writing is also on the wall in terms of redundancy by virtue of E-Govt, Huduma Kenya. Ni kujipanga. The ICT broom will have a real sweep as well.
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Rank: Member Joined: 8/16/2012 Posts: 660
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hisah wrote:mibbz wrote:hisah wrote:josimar wrote:With the Head of IMF in town, am just wondering what are these external shocks that the Treasury is seeking to cushion the country from...? Are they foreseeing something We are not aware of? When you float a global bond you open yourself up to international bond vigilantes... That hot money when things go bananas can make things very nasty since no CB is bigger than the market when it comes to quickfire liquidity. See how indian is struggling with gold control...
Read about G. Soros on how his bets made BoE squirm as the pound got a proper shaving back in 1991. Other samples are mexican tequilla crisis, argentine bond crisis, russia bond crisis, asian crisis etc.
The other day KES was being thumped and CBK almost lost the plot, but survived. They've learned their lesson.
**Risk management is crucial this year...
@hisah do you think IMF shall advise GoK on some cost cutting measures such as reduction of the so called bloated civil service as well as introduction of tax other measures such as capital gains tax so as to increase GoK revenue into more meaningful infrastructure projects? IMF is a debt collector. Debt collection has never been a merciful or moral exercise otherwise the lender will never get the money back.
Tax on basic commodities was bad enough. I expect this to become a thorn in future and already I can see free education is the first casualty.
I expect telcos to also get boxed in time and again and if there is a way to forestall mobile money this too will be on the hit list.
It's never about the progress of the economy, but how to make it hard for you to pay it back. Debt serfdom is the best summary.
Debt = SerfdomQuote: . . . There are three key dynamics to debt-serfdom:
A. The serf is never free of debt, i.e. he/she is programmed to being indebted for life.
B. Most of the serf's income is devoted to servicing debt.
C. Most of the debt is unproductive: marginal-utility college education, needless auto loan, leveraged McMansion that loses value in the inevitable speculative bust, and so on. . . Live and learn; and don’t forget, nothing ventured, nothing gained.
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