- As a serious and firm believer that big opportunities are in Africa, i must say for sure i am horrified by lies that CBK and simple mindedness Kenyans.

At beginning of 2006 US had a national debt of 4 Trillion US Dollars, and now at 2011 it is at 14 Trillion Dollars. With all QE1,2 and another QE 3, the money printing press has been on over drive for last 5 yrs in US. What does this really mean when it comes to the Kenya economy!!!! At 2009 Kes was trading at 67 Kes to US Dollar..and now it is trading at 91.

To put in to proper prospective better managed economies like my 2nd Home Australia have kept their National Debt very low, at 2006 KES was trading at 41 to Australia Dollar, and now in 2011 it is trading at 97 Kes to AUD.

Just to put it into better perspective for all of you..At 2006 1AUD=0.73 USD, and now 1AUD=1.07.

The real reason why Kenya shillings is loosing allot to USD, it is because CBK is printing and printing allot monies more that of US Federal Reserve...

Clearly it is easy to fool and take a ride of most Kenyans citizens, with most of them concerned about trivial things like politics (Raila, Kalonzo, Ruto etc), Mwau drug issues..and other useless things.

If you want to drop your Jaw today, Get the figure of National Debt of Kenya in Kenya Shillings today, back in 2009 it was 1.4 Trillion shillings...

Kenya government will continuously print more monies and borrow allot more being locally or international..are all these debt will paid by Kenyans at one time, and one day we might end up defaulting it...and the debt is in US Dollars, AUD, Euros and etc..With Kenyans shillings loosing it value every day..our loan only becomes bigger everyday...

With 2011/2012 being an election year, more and more monies will be printed, and press will continue to keep you busy with useless stuff...while price of food goes above roof...and they will blame the Banks and Forex traders..Famine and other bull shit and because most kenyans dont understand or even care to know about fiat currency based system..they will glad believe it and sympathize with government..

With Soaring inflation, I beg you today to withdraw all your monies and buy AUD and other safe currencies and not US Dollars...and if you are wise buy physical Gold and Silver Bullions and not the ETFs..

I have benefited allot personally with weaker Kenya shillings, because Kenya properties are getting cheaper every day...

Most countries is one is based on fiat system, based on dollar as standard and dollar is based on nothing..

How does the government print money?
For CBK to print monies, they need to issue treasury bonds, once the treasury bond is bought, the government can proceed to print more monies based on deposit and lending ratios...normally banks are allowed to lend more than 10 times their deposits..

It is insane when you closely think of it...just imagine a bank can buy 1 billion worth of treasury bonds from CBK at say 5.6% and buy treasury bonds with return of 11%. Out of 1 billion, 9 more billion can be created from it..

Thats why shilling, Dollar, Rupees, Kroners, Rands...will only loose their values..Because all the new monies created derives it value from existing pool...and they have a nice name for it called "Inflation"..

What happening to Greece, soon Spain, Portugal it is because of ever increasing national debt to a point where the government cant pay it debt at all...

Precious metals will always protect your wealth and always beat inflation..thats why most smart countries like Germany, China, Malaysia, India are stacking them high..because they know the Dollar and Petrol Dollar regime is on its death bed..

When you get a chance, take your receipts of food purchases in 2006 and compare them with 2011...then compare your annual income and ask yourself whether your income or investments is beating inflation or not..

@Seles83, please feed us with more info and other ways of been safe.

And the fellows down in CBK and those behind vision 2030 continue to accrue more debt as they engage in massive massive infrastructure deals. Not that having good infrastructure is bad but if not well financed especially ignoring or lacking to understand the global economic driving forces, we are plunging into a dark pit and real fast.

Maybe the US will start selling green cards to all that want them, for that exact price- US 46,451 (4.18M Kes). Financing available. President Obama could balance the budget and solve the immigration issue all at once.

LOL. The real question about sovereign debt and how it compares to personal debt is the issue of default... will countries and institutions holding this debt try to collect via, what, repossession? Liquidation? What does that mean in terms of a government in this day and age that you owe and cannot pay- where globally there are tremendous political and social factors preventing, well, basically preventing a war or invasion in order to collect what is owed.

Best,

Hill

too much gloom doom theories on wazua of late....i'm tempted to think anti-christ will be born tomorrow

How does having many banks help improve the economy GDP..more banks more monies to lend, more debt to the people and to the government.

What Kenya economic balance sheet is income being it exports or taxes..

"This doesn't happen in Kenya Mr.!" Before you arrive to his conclusion, research alittle bit more..about Fiat based currency system and fractional reserve lending...

With just a little more knowledge, you can make sound decisions and save your future generation a fortune..

To be clear..i am not saying AUD is on gold standard and that should tell us there is not enough to do so. Quite rightly, i was alluding to the fact that OZs BoP is in surplus mainly (hence backed) due to gold and the CURRENT boom. I understand how that good it is, the boom, as I am invested in a more resource rich (42 minerals, gold included) Zimbabwe. But we should accept these are depletable resources & there can be adverse consequences thereafter. I know things are getting worse in the OZ mining and the govt.is now raising royalties on the mines, I know! The mines are getting deaper drill by drill and soon it will not make sense to mine further...then the chickens will come home to roost.

Well said, economy is always on wealth cycles..One thing the mining boom or the demand from China will ease and then the OZ economy will be a shady state..ride the tide and get off before it swallows you...mostly are caught because of greed..

Now we are talking. Make hay while the sun shines.