Why Magufuli has a shot on wooing Uganda to join his SGR

[Mkikuyu- Akili timamu]

If you add value to a product you are allowed to increase the price, this is economics 101 I do get how you dont understand this. Your own article disproves your point on currency value affecting GDP instead it talks about GDP affecting currency value(Truly english is not your first language). But for evidence, our agriculture grew very fast last year combined with our services and real estate.

GDP is not calculated in KSH..Its calculated in $$ That is why you are able to compare GDPs Between countries inspite of different currencies. Infact if we compare Tz vs Ke GDP purely based on their respective currencies Tz is far ahead in numbers, but to compare sensibly we have to use an exchange rate and peg everything to the dollar..
That is how important an exchange rate is to GDP figures, IMF has maintained kenya has 17.5% over valuation, if you factor this in the calculation then ke GDP is slighly over $75bn

 

[joto la jiwe]

GDP is not calculated in KSH..Its calculated in $$ That is why you are able to compare GDPs Between countries inspite of different currencies. Infact if we compare Tz vs Ke GDP purely based on their respective currencies Tz is far ahead in numbers, but to compare sensibly we have to use an exchange rate and peg everything to the dollar..
That is how important an exchange rate is to GDP figures, IMF has maintained kenya has 17.5% over valuation, if you factor this in the calculation then ke GDP is slighly over $75bn

This man doesn't know anything about Economics, is just playing with words.

 

[Kevin85ify]

This man doesn't know anything about Economics, is just playing with words.

says the guy who says currency value causes devaluation of GDP

 

[TEMLO DA VINCA]

Acha ujinga wewe, nimekuwekea article nzuri sana inayofafanua jinsi thamani ya pesa inavyoweza kuathiri GDP, sasa wewe badala ya kusoma kwanza ukaongeza maarifa, umebaki kupiga kelele.

Mwanzoni ulisema, " Value of currency has nothing to do with GDP", nimekuwekea article inayoelezea jinsi thamani ya pesa inavyoathiri GDP, unaanza kuleta mifano ya China.

Kwanza kubali kwamba thamani ya pesa inaweza kupandisha au kushusha GDP, kisha tuanze kuzungumzia kuhusu China.

Unajichosha bure Anko hilo Anko sidhan hata kama shule IPO... Lipotezee

 

[joto la jiwe]

You are now being juvenile, but to dissuade your ill informed thoughts. Manufacturing grew at 4.2% last year. The price of beer quoting the example you have given, is due to sin taxes ie A tax meant to reduce consumption of a product not currency but eabl still grew it's profits from increased output ie. They sold more beer last year than in 2017. so giving an example of beer in an sector that manufactures for the whole east and central africa and to make it worse an irrelevant example is puerile to say the least.

Tanzania has the highest value added Tax in the region(18%), while Kenya is only 16%. Tusker beer enjoys economy of scale, and Tanzania like Kenya, also impose A tax to discourage Alcohol uptake, still Safari is three times cheaper than Tusker, only currency manipulation can explain this.

 

[Kevin85ify]

GDP is not calculated in KSH..Its calculated in $$ That is why you are able to compare GDPs Between countries inspite of different currencies. Infact if we compare Tz vs Ke GDP purely based on their respective currencies Tz is far ahead in numbers, but to compare sensibly we have to use an exchange rate and peg everything to the dollar..
That is how important an exchange rate is to GDP figures, IMF has maintained kenya has 17.5% over valuation, if you factor this in the calculation then ke GDP is slighly over $75bn

Yes true GDP it is calculated in dollars(That is where you are right), but do you really want to say as Joto la jiwe has said, that a drop in the value of a currency causes a contraction in the GDP ie. Notice a negative growth in GDP means recession in which case you want to say due to the slide of the TZsh over the past years against the dollar , the GDP of Tanzania has contracted by a similar margin? Come on don't try to act smart because if this is your assertion you are dead wrong. Currency value is determined by exports and imports which determine supply and demand of the currency combined with the foreign reserves a country has not local prices. Local prices determine inflation which then determines how much people can afford to buy for the same money compared to a previous period. If this is you assertion then GDP of countries could be fluctuating at least 100 times a day because the value of a currency flactuates this much in a single day of trading.

 

[Mkikuyu- Akili timamu]

says the guy who says currency value causes devaluation of GDP

Boss, We dont use $ as a medium of exchange in kenya, All the components of GDP whether its imports/exports/government spending/consumption etc are all based on Ksh.
Either you are very un educated in economics or you are simply an idler (mostly a jobless diploma in IT) with an internet connection trying unsecessfuly to look smart

 

[joto la jiwe]

says the guy who says currency value causes devaluation of GDP

Overvalue of your currency is the main reason why your GDP reads $99B. Show us here, how Kenya managed to get there from 2014 GDP was $61.5B, to 2018 GDP is $99B with average of growth rate of 5.6% per year, that is the difference of %37.5B, almost increment of 57% of GDP within 5 years period, remember in 2017, Kenya economy went stand still because of prolonged election period,

That's why I said, it is only stupid people like you and majority Kenyans can understand this GDP without questioning because your Education system doesn't teach you to think and analyze things in details.

 

[Kevin85ify]

Tanzania has the highest value added Tax in the region(18%), while Kenya is only 16%. Tusker beer enjoys economy of scale, and Tanzania like Kenya, also impose A tax to discourage Alcohol uptake, still Safari is three times cheaper than Tusker, only currency manipulation can explain this.

As I said beer, spirits, cigarettes have extra taxes in kenya if it was VAT only it would be cheaper than any east african country.excise tax that is the name of the tax and they now want to put it on every luxury item. The value of the kenyan shilling is not relevant to local prices because we do not import beer, we make it locally with 100% local content then export it to east africa that is why a tusker is cheaper in uganda than in kenya because uganda does not charge excise taxes on such items. If you fail to understand this then i give up, you will have conclusively shown that you are indeed an incorrigible, dyslexic imbecile.

 

[Kevin85ify]

Boss, We dont use $ as a medium of exchange in kenya, All the components of GDP whether its imports/exports/government spending/consumption etc are all based on Ksh.
Either you are very un educated in economics or you are simply an idler (mostly a jobless diploma in IT) with an internet connection trying unsecessfuly to look smart

Who said we use dollars as a means of exchange?

 

[Kevin85ify]

Boss, We dont use $ as a medium of exchange in kenya, All the components of GDP whether its imports/exports/government spending/consumption etc are all based on Ksh.
Either you are very un educated in economics or you are simply an idler (mostly a jobless diploma in IT) with an internet connection trying unsecessfuly to look smart

Okay i thought you were above ad hominem but if you want to stoop to that level, i am not beyond uttering an insult or two, just ask Joto la jiwe. I run a company in kenya with 16 employees and yes it is a technology company, what do you know about value chains and economics other than ill informed facts. If they take the value of all the goods, government investment and services produced by the country that is what forms the GDP. so i run a tech company this year i have 100 outlets using my system, next year i get around 4000 outlets using my system that is a revenue increase on my part which means the value of my company has grown, that means more money that i pay to GOK in taxes and an overall increase in the value of the kenyan service sector. How pray do tell does this growth and value in my company get affected by currency values that can change at least 100 times in a day?

 

[joto la jiwe]

Yes true GDP it is calculated in dollars(That is where you are right), but do you really want to say as Joto la jiwe has said, that a drop in the value of a currency causes a contraction in the GDP ie. Notice a negative growth in GDP means recession in which case you want to say due to the slide of the TZsh over the past years against the dollar , the GDP of Tanzania has contracted by a similar margin? Come on don't try to act smart because if this is your assertion you are dead wrong. Currency value is determined by exports and imports which determine supply and demand of the currency combined with the foreign reserves a country has not local prices. Local prices determine inflation which then determines how much people can afford to buy for the same money compared to a previous period. If this is you assertion then GDP of countries could be fluctuating at least 100 times a day because the value of a currency flactuates this much in a single day of trading.

Wewe utaelimika lini, tofautisha kati ya kushuka au kupanda kwa thamani ya pesa ya nchi kutokana na nguvu ya soko, na kushusha au kupandisha thamani kwa pesa through manipulation.

Are you mad?, there is difference between "Currency devaluation/ appreciation" AND " Over value and undervalue of the currency. The former is a normal economic events, it is legal, but the later is not illegal. Tanzania has never under value or overvalue its currency. Hivi wewe una akili kweli?

 

[Mkikuyu- Akili timamu]

Who said we use dollars as a means of exchange?

Why are you using pedestrian ideas that GDP which is NOT valued in your local exchange currency is not subject to prevailing rate?
How do they comeup with GDP in dollar value yet all production import and export is based on ksh?
Go back to school

 

[Mkikuyu- Akili timamu]

Okay i thought you were above ad hominem but if you want to stoop to that level, i am not beyond uttering an insult or two, just ask Joto la jiwe. I run a company in kenya with 16 employees and yes it is a technology company, what do you know about value chains and economics other than ill informed facts. If they take the value of all the goods, government investment and services produced by the country that is what forms the GDP. so i run a tech company this year i have 100 outlets using my system, next year i get around 4000 outlets using my system that is a revenue increase on my part which means the value of my company has grown, that means more money that i pay to GOK in taxes and an overall increase in the value of the kenyan service sector. How pray do tell does this growth and value in my company get affected by currency values that can change at least 100 times in a day?

GDP not calculated on a daily basis like the way currecy fluctuates daily..
GDP is calculated at the end of the fiscal year on current prices..Thats why they awalys append the words "current prices" on GDP figures..That is why even Quaterly GDPs are always somewhat inaccurate.
You have no basics of even simple GDP norms, you sound very pedestrian
Running Your small cybercafe/ photocopy shop does not make you competent to analyze economics..Goodluck in your venture

 

[Kevin85ify]

Why are you using pedestrian ideas that GDP which is NOT valued in your local exchange currency is not subject to prevailing rate

How do they comeup with GDP in dollar value yet all production import and export is based on ksh?
Go back to school

Wow congratulations you have the lexicon of a 12 year old, at at least i see some hope, but you are very wrong. Going by your logic chinese GDP should be 20% bigger because their currency is undervalued by 20%, Or nigeria GDP should have weakened economy because their Naira lost ground against the dollar.
Here i have done the work you are too lazy to do and i have given you a link below for your perusal. Currency value has no effect on GDP. It all depends on demand and supply driven by imports/exports and government policy.
Here is an excerpt from that article.
Now read and come back when you start making sense.

"In conclusion, it is flippant to estimate the strength of an economy solely through the value of a currency. The strength of an economy is dependent on several variables that exhibit multi-causal relationship amongst themselves. Exchange rate have negligible connection with the strength of an economy. Instead, it is determined by trade performance, capital inflows or an arbitrary number chosen by the central bank."

Does a strong currency mean a strong economy? - Logos

by Anupam Manur & Varun Ramachandra Exchange rates have negligible connection with the strength of an economy. Instead, it is determined by trade performance, capital inflows or an arbitrary number chosen by the central bank. In their book The Dollar Crisis, Paul Simon and Ross Perot famously...

logos.nationalinterest.in

 

[Mkikuyu- Akili timamu]

Wow congratulations you have the lexicon of a 12 year old, at at least i see some hope, but you are very wrong. Going by your logic chinese GDP should be 20% bigger because their currency is undervalued by 20%, Or nigeria GDP should have weakened economy because their Naira lost ground against the dollar.
Here i have done the work you are too lazy to do and i have given you a link below for your perusal. Currency value has no effect on GDP. It all depends on demand and supply driven by imports/exports and government policy.
Here is an excerpt from that article.
Now read and come back when you start making sense.

"In conclusion, it is flippant to estimate the strength of an economy solely through the value of a currency. The strength of an economy is dependent on several variables that exhibit multi-causal relationship amongst themselves. Exchange rate have negligible connection with the strength of an economy. Instead, it is determined by trade performance, capital inflows or an arbitrary number chosen by the central bank."

Does a strong currency mean a strong economy? - Logos

by Anupam Manur & Varun Ramachandra Exchange rates have negligible connection with the strength of an economy. Instead, it is determined by trade performance, capital inflows or an arbitrary number chosen by the central bank. In their book The Dollar Crisis, Paul Simon and Ross Perot famously...

logos.nationalinterest.in

Astonishing that an I.T guy cannot use google👇👇👇

Currency Fluctuations: How they Affect the Economy

Currency fluctuations are a natural outcome of the floating exchange rate system. Read about what effects these changes can have.

www.investopedia.com

Stay within your lane..you will never see me question you on how a LCD screen works

 

[Kevin85ify]

Astonishing that an I.T guy cannot use google👇👇👇

Currency Fluctuations: How they Affect the Economy

Currency fluctuations are a natural outcome of the floating exchange rate system. Read about what effects these changes can have.

www.investopedia.com

Stay within your lane..you will never see me question you on how a LCD screen works

Hehehehe, huyu msee ako na jokes mob! Where in that article does it say that when a currency falls to the dollar the GDP also falls, which is what you were claiming. everything in that article is what i have been telling you in terms of exports and imports and cash reserves. But where in that article does it justify your claim that GDP ascends and descends according to currency value which is exactly what you and joto la jiwe asserted. In fact he mentioned that because kenyan shilling is overvalued by 20% we should remove 20% of our GDP, what kind of a shit eaten brain thinks like that?

 

[Kevin85ify]

Astonishing that an I.T guy cannot use google👇👇👇

Currency Fluctuations: How they Affect the Economy

Currency fluctuations are a natural outcome of the floating exchange rate system. Read about what effects these changes can have.

www.investopedia.com

Stay within your lane..you will never see me question you on how a LCD screen works

I can second guess everything you say because:
-You are not an economist and you have never run any meaningful business
-From precedence you will make anything and everything up to besmirch Kenya
-No economist has ever claimed that GDP falls when the currency falls and vice versa not even the biggest critic of GOK David Ndii who is among the top 100 most influential economists in the world.

 

[Mkikuyu- Akili timamu]

I can second guess everything you say because:
-You are not an economist and you have never run any meaningful business
-From precedence you will make anything and everything up to besmirch Kenya
-No economist has ever claimed that GDP falls when the currency falls and vice versa not even the biggest critic of GOK David Ndii who is among the top 100 most influential economists in the world.

This is ndii..And below that are empty brains like you

 

[joto la jiwe]

Hehehehe, huyu msee ako na jokes mob! Where in that article does it say that when a currency falls to the dollar the GDP also falls, which is what you were claiming. everything in that article is what i have been telling you in terms of exports and imports and cash reserves. But where in that article does it justify your claim that GDP ascends and descends according to currency value which is exactly what you and joto la jiwe asserted. In fact he mentioned that because kenyan shilling is overvalued by 20% we should remove 20% of our GDP, what kind of a shit eaten brain thinks like that?

Hahahahaha, hujui lolote kuhusu Economics, jaribu kujifunza acha kutanguliza" Ego", mtaendelea kulimbikiza ujinga. Sijasema lolote kuhusu pesa kushuka wala kupanda thamani, Mimi nimesema kuhusu " currency manipulation", ni sawa kuwa na NYUMBA ya Kshs 50,000 lakini una overvalue ukasema thamani yake ni Kshs 150,000.