Pundit
JF-Expert Member
- Feb 4, 2007
- 3,733
- 123
Kuhani,
Total hogwash.
Until you develop the DSE to be the premier world Stock Exchange surpassing Wall St and Canary Wharf, and the Tanzanian Shilling to be the currency of choice for international trade surpassing the dollar, euro and other major currencies, adopting your position will be akin to floating in a wave of naive wishful thinking that the real is apart from the imagined and the stock market does not count.The imagined is the real, the stock / commodities markets dictate prices, trends and economies.Your nation's founding father -Nyerere- realized this, precisely the reason he used to wake up every morning to listen to commodities prices on BBC . Some would argue even with the above mentioned prerequisite tools, a leading market and currency, you will still succumb to the powers of the global economy and it's sophiostication, just as the Americans are having a hard time presently.
I wonder if the present occupant of Magogoni has the "sophistication" to adopt a steady interest along these lines, but reading your post I am even more concerned that the issue of financial literacy is bigger than the expected ignorance on the likes of Kikwete, but also on some of our most prolific contributors in here. No man, let alone nation, exist in a financial vacuum. And if you operate under principles that assume so, or entertain mediocrity under that guise, be prepared for sudden peril. It is no wonder we are eternal beggars, our young minds are ready to jump at some sorry excuise for our poor state of the economy, what do you expect the old cronies to say?
Unless you reject the underlying principles of modern economies, such as pricing by demand and supply (and face the fate of being relegated to the dustbin of history like the central planning system) you cannot reject these overvalued figures generated by overvalued stocks.The question is, why can't Tanzania generate an economy that will allow enough affluence among it's middle class to generate an equally overvalued stock market? The disproportionate ratio 30:1 between Lehman Brother' assets and Tanzania's GDP is far beyond what one may reasonably attribute to overvalue.One can responsibly attribute to overvalue close ratios, like 2:1 3:1 or even 5:1, but 30:1, that's a different league.
The bottom line is that, Tanzania, being neither a small island state atoll nor a landlocked chiefdom like Lesotho (for all intents and purposes) but rather a resources rich arable land with over 1400 kilometres of coastline plenty of food and water, lakes,rivers, the whole alphabet list repertoire of minerals from the rare to the abundant but valued, vast unexplored land, to say nothing of millions in labor force is lagging this far behind compared to, not a tiny banking Duchy like Luxembourg, not a state like California, but an investment bank? One single sole unaided bank?
Preposterous, and whats even more outrageous is the apologism and obliterate obfuscation disguised in your effigy of this mockery of a country's finances.
Total hogwash.
Until you develop the DSE to be the premier world Stock Exchange surpassing Wall St and Canary Wharf, and the Tanzanian Shilling to be the currency of choice for international trade surpassing the dollar, euro and other major currencies, adopting your position will be akin to floating in a wave of naive wishful thinking that the real is apart from the imagined and the stock market does not count.The imagined is the real, the stock / commodities markets dictate prices, trends and economies.Your nation's founding father -Nyerere- realized this, precisely the reason he used to wake up every morning to listen to commodities prices on BBC . Some would argue even with the above mentioned prerequisite tools, a leading market and currency, you will still succumb to the powers of the global economy and it's sophiostication, just as the Americans are having a hard time presently.
I wonder if the present occupant of Magogoni has the "sophistication" to adopt a steady interest along these lines, but reading your post I am even more concerned that the issue of financial literacy is bigger than the expected ignorance on the likes of Kikwete, but also on some of our most prolific contributors in here. No man, let alone nation, exist in a financial vacuum. And if you operate under principles that assume so, or entertain mediocrity under that guise, be prepared for sudden peril. It is no wonder we are eternal beggars, our young minds are ready to jump at some sorry excuise for our poor state of the economy, what do you expect the old cronies to say?
Unless you reject the underlying principles of modern economies, such as pricing by demand and supply (and face the fate of being relegated to the dustbin of history like the central planning system) you cannot reject these overvalued figures generated by overvalued stocks.The question is, why can't Tanzania generate an economy that will allow enough affluence among it's middle class to generate an equally overvalued stock market? The disproportionate ratio 30:1 between Lehman Brother' assets and Tanzania's GDP is far beyond what one may reasonably attribute to overvalue.One can responsibly attribute to overvalue close ratios, like 2:1 3:1 or even 5:1, but 30:1, that's a different league.
The bottom line is that, Tanzania, being neither a small island state atoll nor a landlocked chiefdom like Lesotho (for all intents and purposes) but rather a resources rich arable land with over 1400 kilometres of coastline plenty of food and water, lakes,rivers, the whole alphabet list repertoire of minerals from the rare to the abundant but valued, vast unexplored land, to say nothing of millions in labor force is lagging this far behind compared to, not a tiny banking Duchy like Luxembourg, not a state like California, but an investment bank? One single sole unaided bank?
Preposterous, and whats even more outrageous is the apologism and obliterate obfuscation disguised in your effigy of this mockery of a country's finances.