Popular lawyer Donald B. Kipkorir shocked many on the X (Twitter) platform when he advocated that it is time the government of Kenya started printing money like the US and use it to pay off its outstanding bills.
“Once, I tweeted Government should print money to meet some of its obligations and some “Economists” abused me calling me all sorts of names!” said Lawyer Kipkorir.
“Japan literally survives on printing money. So is US. The outgoing government of Justin Trudeau in Canada printed $600 billion to fund its economy. As our inflation is stable, Government needs to print money to settle all outstanding pending bills! And we deal with inflation later.”
The call by Lawyer Kipkorir attracted widespread criticism with critics lamenting that the impact of making such a move would be unrecoverable for Kenya.
“The long term effects would be far more damaging than the short term relief it provides. Unlike Kenya, Japan has a strong reserve currency and robust monetary systems. Try that here, and you’ll witness runaway inflation on a scale we’ve never seen before,” said entrepreneur Muthoni Njakwe.
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“Japan and US monies are reserve currencies held by other countries as assets. Outside of Kenya, you will only find the stray Kenyan shillings in Uganda,” said senior banker and monetary adviser Mohamed Wehliye.
Whereas a government may print money to pay off debts, the result of making such a move is usually hyperinflation. The extra printed money enters circulation and the value of each unit of the money decreases.
However, the United States does not face these currency risks. According to Forbes, this is mainly because the US dollar is the global reserve currency.
“Most countries and companies from other countries usually need to transact business in US dollars, making them exposed to the value of their currency relative to the US dollars.”
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