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Zimbabwe: Press Statement on Ministrial Re-Assignments and New Appointments (09.10.2017)

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Zimbabwe: Hyper-inflation hit the republic yet again, this time it’s the fault of launching the Bond-Notes!

(We have got the Judas Iscariots amongst us); they are manipulating the currency so that they trigger inflation” – President Robert Mugabe on Thursday this week (Chibamu, 2017).

When they launched the Bond-Notes in 2016, the borrowed money from China to launch a new currency. Like that sounds like fresh and sound financial policy. Not like Zimbabwean African National Union – Patriotic Front (ZANU-PF) and President Robert Mugabe unleashed this for the supposed benefit of the citizens. Since the former currency we’re put into death-bed and was total worthless by 2009.

So now that its gone some time, the reports of a black-market with currency exchange, the lack of petrol and others springing bad news. It is international ones that are also looking at the signs. Even if the ZANU-PF Ministers and loyalists to Mugabe, is saying it is only smoke, but no fire. Clearly, there are more into it, than they want to admit. Because, we all who followed the launch and the misuse of funds from the cronies close to Mugabe, knew that a uncontrolled inflation might hit the republic again. Mugabe will blame anyone, like he didn’t create this issue himself. If not his wife who spends fortunes in South Africa, buy luxurious cars like Rolls Royce and the sons of family spends time on lavish hotels there. They are acting like Zimbabwean Royal Family, the perks of diving into the state reserves.

Well, the Zimbabweans are in long lines getting petrol, while the Bond Notes values are getting to level, that they are worthless. That the Bond Notes are far from being One to One exchange with United States Dollars. That ship has sailed and the unfortunate citizens of Zimbabwe, who has to again see the Bond Notes, second crypto-currency in a decade fall to pieces. The destruction of the economy is evident. The statistics of the inflation should worry anyone. Just take a look!

This hard budget constraint became too onerous for the free spending government to abide by. In consequence, Zimbabwe’s government has employed Harry Houdini’s magic and circumvented the hard budget constraint imposed by dollarization. It has done so by creating a new fake dollar, which is referred to as the “New Zim Dollar.” Not surprisingly, this new Houdini creation is rapidly becoming worthless. This makes the methodology that I employed to measure inflation during Zimbabwe’s hyperinflation episode relevant again. Since Old Mutual’s price on the Zimbabwe Stock Exchange is denominated in “New Zim Dollars” and Old Mutual’s price on the London Stock Exchange is denominated in British pound sterling, we can create a “New Zim Dollar”/sterling implied exchange rate. This exchange rate can be transformed using PPP to accurately measure Zimbabwe’s inflation. At present (09/29/17), Zimbabwe’s annual inflation rate has soared to 242.72%” (Hanke, 2017).

More ominously, from the perspective of Zanu-PF, is that, as coffers dry up once again, Robert Mugabe’s government will struggle to pay some of the institutions so crucial to it remaining in power, such as the civil service, the military and the police. Bond notes were the government’s short-term answer to its long-term economic problems. But instead of providing the solution, they are proving to be an expensive mistake” (Allison, 2017).

RM: Do you foresee Zimbabwe sliding into the 2008 inflationary trap? What is your comment on this? Chris Mugaga: We might not necessarily slide into a hyper-inflationary trap, but we need to guard against it. The money changers have started causing havoc and the informal market players have been creating artificial shortages. All that must stop and this will assist in managing the inflationary threat. Last, but not least, fiscal spending also has to be managed as funding a fiscal deficit can lead to inflation” (Muzavazi, 2017).

Markoni, who once served as an economic adviser in the regional block, SADC, said Mugabe’s decision to introduce bond notes – a surrogate currency meant to alleviate the cash crisis – set in motion trial of events that led to the total collapse of the country’s financial services sector. “Bond Notes are not the solution and we have always said this. The price increases are just symptoms reflecting the situation on the ground and Mugabe can order the Zambezei River to flow back to Angola but it just won’t because of the forces of nature” said the former Finance minister. “Such forces of nature also apply to the value of currencies and that is why you see that the bond notes have not mitigated the cash crisis and collapsing economy, it has worsened it instead”. He added”(Tarenyika, 2017).

If you thought this would be sunshine story, your wrong. The reality is that the plan for the Bond Notes was flawed from the outset. I am far from surprised by the output of the currency. The whole borrowing to print the currency was made for a disaster. It was just a matter of time, when the state and cronies would print to much and make sure their we’re lacking amounts of cash in the system. As well as the foreign exchanges lacking funds to change between the United States Dollars and the Zimbabwean Bond Notes. There are enough profound evidence of trouble that could occur and which did.

The economy and financial policy was not made for the benefit of the citizen, but a short term gain for the ZANU-PF. But you can wonder who really earned on it before the inflation hit this time. As the usual suspects would be able to comply, but won’t since they will stay silent since they earned on the scheme. The crones like Mugaga will make it seem like normal and under control, while it is not. Because they know that the numbers are terrible and a doctor in the United States publishing it in Forbes, wouldn’t all of sudden find the numbers on a random spread-sheet. Therefore, the reality should hit the fan. Even if Mugabe never will take the blame. There will be someone falling on the sword, neither will be Rolls Royce driving Grace Mugabe, neither Bob, but someone who is easily gotten rid of in the cabinet. Peace.

Reference:

Allison, Simon – ‘Can Zanu-PF afford another currency crash?’ (29.09.2017) link: https://mg.co.za/article/2017-09-29-00-can-zanu-pf-afford-another-currency-crash

Chibamu, Anna – ‘Zimbabwe: President Mugabe Stays Put, Scorns ‘Judas Iscariots’ (29.09.2017) link: http://allafrica.com/stories/201709290092.html

Hanke, Steve – ‘Zimbabwe Inflates… Again’ (30.09.2017) link: https://www.forbes.com/sites/stevehanke/2017/09/30/zimbabwe-inflates-again/#221257d10d68

Muzavazi, Runyararo – ‘Let’s guard against the hyper-inflationary trap’ (30.09.2017) link: http://www.herald.co.zw/lets-guard-against-the-hyper-inflationary-trap/

Tafirenyika, Mugove – ‘Former Finance Ministers speak on the economic rot’ (29.09.2017) link: https://www.dailynews.co.zw/articles/2017/10/01/former-finance-ministers-speak-on-economic-rot

#ThisFlag: Pastor Evan Mawarire has been released after being detained for 48 hours!

After holding him for over 48 Hours, the #ThisFlag founder and Civil Activist Pastor Evan Mawarire has been released. Magistrate: “The 48 hour window has expired, therefore the accused is entitled to immediate release” (Doug Coltart, 26.09.2017). This because the time of arrest started on Sunday and the legislation together with the hearing should have already started. That is why they could release him.

Clearly, every time the Mawarire speaks out his mind and drops his knowledge of the fragile economy, lacking petrol and the failing Bond Notes. There will be issues as the Zimbabwean African National Union – Patriotic Front (ZANU-PF) government trying to subscribe to their leader and his vision, if that is only to print more cash for his lavish lifestyle and his Zanu-PF elite. Therefore, this is not the last a Civil Activist, someone who is saying “Mugabe Must Go” will be in court.

Mawarire is the leader and the man who stands on his principles and is the one who has the voice. This today was a bail-hearing and he was free after the trial. But expect that he might be back to court on Thursday. Still, that one changed as his hearing happen today and got released. Clearly, the Constitutional Rights of bail-hearing and trial before 48 hours happen today. The release happen at the High Court and Row 6 as the judge actually freed him. He followed the code, even as the Pastor was arrested at his Church, that was on the 24th September 2017.

This might easily happen again. That the Police of Zimbabwe will arrest and detain the Pastor on forged charges, on bat-shit crazy charges that doesn’t belong anywhere, except for in B-Movies. Not in reality, but in a poorly written fiction. Still, the ZANU-PF will continue to strangle and humiliate the activists, the ones who wants a peaceful change for the better. As the economy and the rights of people is stripped away. Nothing is right about this situation. Peace.

Insane-Breaking-News: Pastor Evans Mawarire arrested during Church-Service today!

I’m just about to finish preaching and I’m told the police are waiting for me outside” – Evans Mawarire (24.09.2017).

Because of yesterday on Social Media while being in a que, the #ThisFlag founder and Opposition activist Evans Mawarire was discussing and showing the Bond Notes crisis and the lack of Petrol in Zimbabwe. Clearly, that didn’t run well with the authorities. The Zimbabwean African National Union – Patriotic Front (ZANU-PF), the ruling regime with President Robert Mugabe got a whiff of this and not strange. Since, even I watched the clip on Facebook yesterday.

This with the knowledge of the cost of 50 Cents bond-notes from the South African Mint that was ordered on the 20th September 2017, cost about $3 Million US Dollars. Therefore, before the money hit the streets and towns, the cost is huge for the state. This should worry anyone, this is just one order and one type that has been revealed. We can just wonder how much the Zimbabwean government has paid for other bond-notes from South African Mint. As the debt created by creation and the funds loaned by the Afreximbank. Therefore, the loans that has to repaid on the weak currency, that is now failing. Just like the bearers notes given in 2008. That is what Pastor Mawarire was discussing yesterday. The reason why he was detained while preaching today.

The Zimbabwe Republic Police has really overstepped, we know they have a grudge against the pastor and his civil activism. But taking him during a service is just out of order. Its shocking and insane. It’s like taking an MP while in the Parliament during a plenary session. How can you barge in to the church and arrest the fellow preacher? Are there no honour within the ZRP? Has not the double or triple doctorate of Mugabe any common sense?

Certainly, the Mugabe family is not that common anymore, since they are riding in expensive rides, while the public are in ques for petrol. That the people are on the black-market for the imported goods, while the industries and the exchange are growing. The running inflation of the currency, while the state trying spin-control it. Like it isn’t happening and the world doesn’t know.

If you want proof of impunity and nonsense. Just follow the trail of the civil activist in Zimbabwe, how they are threaten, treated and detained. Where else can a pastor be arrested while leading his church service with his congregation? Where else can a civil activist without court order or even a court ruling be detained for months upon end and released suddenly, that has happen to several activists. That proves how little Mugabe cares, except getting his wife pardoned for violence in South Africa. It is two classes of people in Zimbabwe, the ZANU-PF elite and the rest! Peace.

Zimbabwe: Letter from Ministry of Rural Development, Promotion and Preservation of National Culture and Heritage – “Appeal for Contributions towards Mash Central Presidential Youth Interference” (03.09.2017)

Zimbabwe: The Bond-Notes are creating higher prices on goods and a big black-market for currency exchange!

The launch of the Bond Notes has been hectic and been untrustworthy. Zimbabwe has been hit with economic difficulties, as to the policies and thieving of the state reserves. That is why the inflation and value of the currency dwindles. As well, as the lack of trust of the currency and the central reserves issued notes, are the reason for the troubling issues with the monetary policies. The Zanu-PF government have been more preoccupied with serving themselves, than the people who are spending the notes.

The questions in the beginning of the of the current value of a note issued on a loan through Afrieximbank, this means the state was taking on debt. This is was to issue a new currency, a temporary note that was gaining new debt to the state. Just take a look!

Chakravarti, a University of Zimbabwe economics professor, said keeping the peg is only depreciating the value of the Real-Time Gross Settlement system (RTGS). He noted that the Confederation of Zimbabwe Industries had revealed that the RTGS premium to real money is now at 30%, meaning if one had US$1 000 in RTGS, they only have US$700 in real money. He added that it was “pointless” to have the Afrieximbank facility, which the central bank said backs the bond notes, if it is not convertible.” Chakravarti said it was unhealthy for the economy to have government crowding out funding for the private sector. He noted that the country has the highest tax-to-GDP in Africa which is 30% against the continental average of 22%, a situation he described as unviable. Chakravarti predicted that by December this year bond notes will constitute 50 to 60% of the currency in circulation which will qualify it as a local currency” (Ndebele & Kuwaza, 2017).

Dollarisation has two forms, namely, official/de jure and unofficial/de facto. BMI Research found that an increase in bond notes was actually de-dollarising the economy. BMI Research warned last week that increasing money supply would contribute to an accelerated growth of inflation from 1,4% by year-end to 8,5% in 2018 — making the steepest growth since 2009. “The Reserve Bank of Zimbabwe’s (RBZ) decision to more than double the size of its bond-note programme — to $500m from $200m previously — confirms our view that the country is headed towards de jure de-dollarisation,” it said” (Zwinoira, 2017).

Because Zimbabwe imports more than it exports, the black market is now influencing pricing trends. As such, a transfer now attracts a 48 percent premium, while cash transactions for smaller denominations range between eight and 9,5 percent, depending on the currency involved. For larger notes such as US$50 and $100, it can cost the buyer up to 10 percent. The majority of companies, whose payments fall outside the Reserve Bank of Zimbabwe (RBZ) priority list for accessing the elusive US dollars in banks, rely on bank transfers to get the coveted currency on the parallel market. As a result, prices for all basic consumer goods have gone up by between 20 and 50 percent as companies and retailers pass on the costs to the ordinary consumer” (Bulawayo24, 2017).

We can easily see that the trustworthy levels of Bond-Notes isn’t there, as the businesses not connected with Reserve Bank of Zimbabwe payment system makes the exchange of currency more expensive. The trust was already bad before the issue of the bond-notes before June 2016. It haven’t got better, it is worse as the percentage cost is 10%.

Therefore, the value of the Bond-Notes has made ordinary life harder. The prices on ordinary goods has gone up. This because of the issue of the Bond-Notes and the whole fiscal policy, that is clearly not working. Peace.

Reference:

Bulawayo24 – ‘Value of Bond Notes Tumbles’ (05.09.2017) link: http://bulawayo24.com/index-id-business-sc-economy-byo-117175.html

Ndebele, Hazel & Kuwaza, Kudzai – ‘Officialise bond notes, govt told’ (01.09.2017) link: https://www.theindependent.co.zw/2017/09/01/officialise-bond-notes-govt-told/

Zwinoira, Tatira – ‘‘Zim heading towards de-dollarisation’ (04.09.2017) link:https://www.newsday.co.zw/2017/09/04/zim-heading-towards-de-dollarisation/

10th Parliament MPs is extra greedy as they are eating another Shs. 100m. each!

You know there is something special, you know there is something out of bound and something compelling, when the Members of Parliament (MPs) who has no quarrels with eating without taxation, without thinking of their salaries compered to the ones who they represent. The constituency of the MP must feel betrayed as their allowances and their benefits are enormous, to say it at least, they are gigantic! But take a look at the latest big payment for the MPs!

Parliament — MPs are smiling all the way to the bank after the government authorised the release of an extra Shs45b to Parliament, with each of the 449 lawmakers set to get an additional Shs100m, ostensibly to buy cars for constituency travels” (…) “In a June 13 letter titled: ‘Additional cash limit of Shs45.8b for the Parliamentary Commission’, Mr Keith Muhakanizi, the Secretary to the Treasury, authorised Ms Jane Kibirige, the Clerk to Parliament, to spend the cash as part of non-wage recurrent budget in the fourth quarter of the Financial Year 2016/2017. The clearance comes barely two weeks to the end of the Financial Year” (Arinaitwe & Manzil, 2017).

So the Members of Parliament are clearly getting another pay-day without passing to much legislation or any sort of consideration of the proposed budget or pledges they had for the financial year 2017/2018. President Yoweri Kaguta Museveni and the NRM Caucus have clearly made together with the Parliamentary Commission to make a new pay-day for the MPs, yet again!

The National Resistance Movement and their MPs clearly like to get extra brown-envelopes without any considerations of the state of the budget or the way the funds are raised. It is not shocking, it seems like an ordinary event at this point. Not like it is the first time, the MPs uses their Noble place in the august house to enrich themselves and add cost to the state. Therefore, the added debt and interest payments should be feared by the MPs. Instead, they are adding debt and creating more interest without concern of the citizens.

The citizens are going to pay extra for this, they are the ones that are ripped off at broad-daylight. They are eating directly of the state reserve and does it with impunity. Also worth noticing, President Museveni is not sanctioning against it, since he can do as pleases. Since he is eating directly and misuse s it whenever he wants. Peace.

Reference:

Arinaitwe, Solomon & Manzil, Ibrahim – ‘Uganda: MPs Get Extra Shs100 Million Each for Cars’ (17.06.2017) link: http://allafrica.com/stories/201706190735.html?utm_campaign=allafrica%3Ainternal&utm_medium=social&utm_source=twitter&utm_content=promote%3Aaans%3Aabafbt

Press Statement by Hon. Kasukuwere responding to allegations of trying to topple President Mugabe (20.04.2017)

Zimbabwe: Moto Republik Demolition Press Release (10.03.2017)

Opinion: A 93 year old, apparently doesn’t need succession!

robert-mugabe3-660x400

The President of Zimbabwe, President Robert Mugabe, the man who is in the psalms, who was written to stay as a leader and even be voted on after death, that is if Grace Mugabe, the first lady gets her wish. The Zanu-PF which was created by him as he mended to parties together when he got rid of a rival; so many forgets the past history of how ZANU became Zanu-PF. The Patriotic Front was sucked into the merger for the political ambition of President Mugabe, as he swallowed and got rid of Joshua Nkomo. Nkomo also lost his party as it became one party Zanu-PF.

Therefore listening to the President and leader of decades upon decades Mugabe had to say this on his 93rd birthday:

“PRESIDENT Mugabe has warned ambitious lieutenants in his party who are angling to succeed him to stop fanning divisions, saying he will not be pressured into appointing his successor” (…) “He slammed succession-driven factional divisions in Zanu-PF, called for unity in the ruling party, and reaffirmed his position that whoever would succeed him was going to be chosen by the people through an election” (Gono, Mukarati & Tshuma, 2017).

The man who will run and continue to be the kingpin, the grand master of Zimbabwe, President Mugabe will not leave the republic and the reign before his last breath. The lasting regime and the will to stay is not only for his benefit, but for his closest allies and elite. The ones who drives flash cars in Harare, who owns the banks and export resources to abroad, also the ones who sells special-made cakes, lays chips and all sort of imported goods. That is who keeps breathing air into the Zanu-PF regime and Mugabe’s continues reign.

The ones who thinks this isn’t eating he system, isn’t costing the republics coffers, the possibility for good governance and accountability are not there with a man who rules and give the rules, without following any common-sense himself. A man has used any trick possible in the book and use all sort force to gain his will.

Are now imposing him and continuing his ill-will reign with the force of his army and sometimes like in the past mercenaries or paid forces from North Korea even. Because Mugabe doesn’t believe in democracy, but in his power to reign by all means!

Also, so his family can benefit and earns wealth on his reign. The Mugabe clan must surely have become rich from all of these years. If not why would he not step down and give way for somebody else? That is because he knows that all that is created around him and his family de facto disappears the day he leaves. However, the Mugabe name will tarnish history of a liberator turned Orwellian master. Nobody foresaw the transformation, but over time he has showed more and more traits of a scrupulous leader who use any means to stay and to forge the power around him. Therefore, the ones near him and the first lady are loyal fellows with no spine. If they had spine they would be beaten by the Police in protest, getting produced in courts or starving, even lacking civil service salaries. That is the means of lacking of governance and institutions as it all is and has been all Mugabe.

So there is no surprise, that the future casket President and the one ruling into death. So why be subtle about it. That is not the need of the Mugabe regime now. They are beating civilians, detaining civilian activists and silencing the opposition. Therefore, they feel invisible to anyone who thinks they can bring down President Mugabe. Peace.

Reference:

Gono, Vincent, Mukarati, Levi & Tshuma Nduduzo – ‘NO PRESSURE ON SUCCESSOR: President speaks on party divisions, bond notes’ (26.02.2017) link: http://www.sundaynews.co.zw/no-pressure-on-successor-president-speaks-on-party-divisions-bond-notes/

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