At an overnight yield of 33pct the KES can do whatever it wants

a crush already looking inevitable, next year will be rough, gues thats why Uk is doin a eurobond, if they monetize next year to revamp things then they will face stagflationary issues rite? why cant GoK just balance the books? how hard is it to do this?

Now at 83.35. This is now overkill.

Prices will come down in a couple of months. It's obvious the prices of goods will not come down the same day as the dollar drops.

And this is also part of what's contributing to KES gaining like a stock.

Welcome the avalanche...

dude, please note the CBK has contracted money supply since october, unless new money is created rates will continue edging up! borrowin USDs is a silly move, remember GoKs budget is in KES's and supply of KES's has shrunk(per KNBS stats for oct-M2 stats that is) so if GoK borrows USDs its left with 3 options
1.sell usd's buy kes's= draining kes liquidity jerking rates up higher
2. swap usd's for kes's= same effect as 2
3. keep usd's in fcy reserves= not buyin reserves from mkt= reduced supply of kes's from lack of cbk fcy participation

either way we see higher rates unless offcourse CBK monetize, but with 18pct inflation wud they be that daft, 2012 will be a terrible year for the economy, stay in cash ladies and gents!!

when all else fails they can monetize

And as inflation ease so will GoK debt auction rates. I think T-Bill rates have topped. By H2 2012 things will be very different inflation wise.

Well, I wish U accepted that the attack on inflation is both technical & fundamental. I know the latter bores U to death :) but i'll have U know that 7-forks is @ overflow level and we have enough LOCAL food stock to see is us well into next year.