A WORLD FULL OF DEBTORS …SUPERPOWER DEBTORS CONTROL THEIR CLIENT STATES WHO ARE ALSO DEBTORS...NO ECONOMIC INDEPENDENCE IN AFRICA, BUT ECONOMIC SLAVERY
USA IS TELLING KENYA, UGANDA TANZANIA , RWANDA ….. WHEN YOU SEE OUR DOLLAR WEAKENING , DO NOT STRENGTHEN YOUR CURRENCY ...Die because I am dying
An interesting and very clever move by retired teachers has surfaced where the retirees want to be paid in US dollars citing the weakening of the Kenya shilling.Could such a move be a sign of things to come to East Africa , that is a US Dollar Run East Africa ?
The truth of the matter is the Kenya shilling and other regional currencies are suffering because THE US ECONOMY IS SICK AND THE US DOLLAR IS WEAK.
The US Dollar being the fiat currency or standard measure of money value in the world when it comes to foreign exchange and oil purchase, has to affect all world currencies
This is indirect colonization of the US Dollar.Direct US Dollar colonization is where a country uses US dollars as a means of exchange as is happening in Zimbabwe.
And this colonization creates an interaction among countries, which means that Local Currencies are not independent in that they affect the US dollar and the US Dollar affects them.If you stay with your wife in a house with a leaking ceiling , both of you will feel the brunt of a leaking ceiling during a heavy downpour of rain.
Thus Local governments cannot do anything significant of an economic nature without USA’ ‘s permission.
So these Kenyan teachers , maybe knowing the above fact , opt for a wise option and that is payment in USD.
Well, it may happen. Zimbabwe is using US dollars because of the same problem most East African nations are in : INFLATION.
It all started when Zimbabwe could give out less than it was receiving, Thus for it to give out more it had to devalue its currency .But by devaluing the currency , prices had to go up and inflation was born.
Now when such a situation accelerates or goes on for a long time without abating, hyper inflation comes in and Zimbabwe had a one million dollar note that bought a loaf of bread.
As the Central Bank of Zimbabwe kept on chopping the zeros from the million dollar notes , it could not chop out the fact that goods were scarce which meant high prices .
So they killed the Zimbabwe Dollar and fell for the US Dollar which actually saved USA the burden it had of too many US Dollars due to the same issue plaguing Zimbabwe— giving out less and getting more when you have little to pay for it.
LIKE ZIMBABWE , THE US DOLLAR OR EAST AFRICAN SHILLING MAY REPLACE LOCAL CURRENCIES IN A BID TO FIGHT SKYROCKETING INFLATION
This is where East Africa , Kenya , Uganda and Tanzania are . They are all debtors and they cannot pay their debts because the value of their money is low .
And these governments whose debt is increasing are not just debtors to the USA and the West but to their citizens who work as civil servants .
Now if they cannot meet their international obligations , then what about the local obligations ?
This is why strikes are going to multiply like mosquitoes’ eggs in stagnant water here in East Africa.The Governments cannot pay their debts because they have no money.AND WORST OF ALL, THEY HAVE MISMANAGED THE AVAILABLE FUNDS.
So what I see is that when Hyperinflation sets in the Governments in East Africa will either call in for the East African shilling to replace the dead currencies or if worst gets to worst , call in the US Dollar. It is soon.
That is why when USA collapses, or being a corporation , it will not die , but have its people move to Africa in droves, the use of the US Dollar will be justified to become a local currency not confined to hotels and banks and US based institutions in Africa.
So Americans may not see the US Dollar die but see the US Dollar fly to East Africa and replace the local currencies , making the colonization and imperialism more real , tangible and close to home.
Retired teachers want arrears paid in US dollars
By WAINAINA NDUNG’U
Retired teachers who are owed Sh33.4 billion in pensions and salary arrears have demanded the Government pays them in US dollars because of the weakening shilling.
Two groups of the 1997 and 2007 Retired Teachers Association, Nyeri branch, also asked the Government to clear their arrears at once rather than in five year tranches as proposed by the Department of Pensions.
“We reject that payment module,” said William Chege, chairman of one of the groups. “The Government had promised to clear all the arrears through an allocation in the last Budget,” he added.
The officials said Thursday the arrears dating back to 1997 should be paid in dollars because the weakening shilling means that they would not get the value of their money.
“In 1997, the US dollar was exchanging at Sh65. It is now exchanging at Sh92 meaning that we shall be losing more than Sh27 for every Sh100 we are paid,” said Chege.
Ephrahim Muturi Wanjau, the chairman of a second group said it was unfortunate that some members had been waiting for 14 years to get the pension and arrears.
Both groups claimed the Department of Pensions had recently proposed to clear their arrears in five tranches running up to this year. They, however, said this would inconvenience the aging former teachers most of whom require basic needs, constant medication and were in their sunset years.
“Saying that teachers who retired in 2003 will be paid their pension in 2015 is unfair. Most of them are dying and should be given a chance to enjoy a piece of their hard earned labour,” said Joseph Kingori, an official of the group.
The retired teachers expressed their frustrations following revelations by the Director of Pensions, Anne Mugo that the Sh3.34 billion allocated to clear some of the arrears will only pay 11,000 teachers who retired in 1997.
Clear the air
The Government owes over 52,000 teachers salary arrears after in 1997 it increased salaries, which were, however, paid for ten years with the last phases being implemented in 2007.
Teachers who were in service in 1997 but retired before all the phases were implemented went to court and successfully argued that all the increments should be reflected in their pensions leaving the Government with a debt of billions in backdated salary arrears and increased pensions.
On Thursday, the over 600 retired teachers in Nyeri County said the Government must clear the air on whether Sh8.2 billion has separately been allocated to the Teachers Service Commission in the last Budget to clear the arrears.
Regional currencies lose further to the US dollar
By James Anyanzwa
Kenya, Uganda and Tanzania’s shillings all look likely to weaken next week, possibly to life-time lows against the dollar, amid soaring inflation and strong demand for hard currency from fuel importers.
Kenya’s shilling, which hit a record low of 95.10 against the dollar on August 9, looks likely to weaken in the coming days after the Central Bank changed its discount window rate rules, easing money market liquidity.
The shilling traded at 94.20 against the dollar yesterday, weaker than a close of 92.30-50 a week ago.
“We are seeing consistent corporate dollar demand and the inflows that are coming are not big enough to match that,” said Duncan Kinuthia, head of trading at Commercial Bank of Africa.
“Sentiment favours a weak shilling on the fact that liquidity has come back into the system.” The bank’s discount window lending rate, which tumbled on Monday, fell again to 17.87 per cent yesterday and the interbank lending rate followed, diving to 19.2515 per cent from 27.7299 per cent.
Traders said the shilling, which has hit a series of all-time lows this year, could trade in the 93.00-95.00 range against the dollar next week.
“We are expecting a weaker shilling. With the way central bank has reacted, we have seen liquidity improve but that is not helping the shilling. It could edge towards the 95.00 level,” said Wilson Mutai, a trader at African Banking Corporation.
On the other hand, the Ugandan shilling is seen flirting with its record low of 2,825 against the dollar as rocketing inflation and the prospect of more anti-government protests unsettle investors, traders said.
Commercial banks in Kampala quoted the unit at 2,815/2,825, in line with last week’s close.
“The general gloomy conditions of relentless surge in inflation, political uncertainty and dimming growth prospects are increasing investor appetite for the dollar,” said Denis Mashanyu, a trader with Standard Chartered Bank Uganda.
Annual inflation jumped to 21.4 per cent in August from a revised 18.8 per cent in July, mainly driven by sky-high food prices and a weak local currency that pushes up the cost of imported goods.
“Market sentiment is for a bullish dollar in both the short term and medium term as demand for the greenback is anticipated to remain sturdy while inflows are not showing any signs of growing,” Barclays said in a note.
Meanwhile, Central Bank of Kenya has swiftly reduced its overnight lending rate to commercial banks to 17.8 per cent from a high of 31.4 per cent last Friday.
—Additional reporting by Reuters