Re: [kictanet] [Skunkworks] Runway inflation?
Jazz, Phares, Many thanks for your inputs so far. It been great reading. The government has do something about the inflation or face a situation where we just became a very expensive country on the continent. It will then have to deal with a roller-coaster effect , that is price increase means less revenue as people will stop buying. So the revenue being collected so far will further reduce with a NEGATIVE TREND. Electricity costs sky rocket, a negative trend to come? There will be millions of people looking for alternate energy to cutting costs or just use electricity for bare essentails. This will cause a shortfall in collection targets. Will the power company be back in square one, i.e price increase leads to more lost revenue? So what excatly is the government doing about it? What measures has it put in place? Whether bad policies or bad decisions, the current state of inflation is un-acceptable. Passing the buck to citizens is not an option or asking citizens to dig deeper into their pockets is not a solution.
Seems the Business Daily will be running a detailed series of economic analysis. Central Bank of Kenya issues its own press release on inflation. Interesting reading too.. http://www.centralbank.go.ke/
Hi, Given that the thread seems to be closed, here are a couple of comments. 1. Kijiji, the reason the places around Nairobi are expanding is because everyone moved to Nairobi. They city is expanding to accommodate all the migrations. 2. It is possible for 30% of Africa to generate more than 70%. An MP earns 500,000 odd a month. That is 100 house helps in Nairobi's pay... So its a reality.. 3.Inflation is a big problem. Banks currently offer interest rates of 4%, so if you leave your money in the bank you are losing tonnes of cash. 4. Kijiji has a point. It is said that the cure for high prices is high prices. If a product is expensive enough, it's demand will fall as people will look for alternatives...Global demand will fall once everyone starts living green... Hybrid vehicles are on the increase, bio fuels, etc. At the end of the day, these initiatives will reduce demand for crude globally. In the 60's the same phenomenon was observed, with everyone making gas guzzlers, a trend which died down in the 90's leading to our current situation. This has been one interesting thread....Thanks to everyone who contributed to this... - Show quoted text - On Tue, Sep 9, 2008 at 4:15 PM, aki <aki275@googlemail.com> wrote:
Seems the Business Daily will be running a detailed series of economic analysis.
Central Bank of Kenya issues its own press release on inflation. Interesting reading too..
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aki -
Phares Kariuki