@hisah. You're onto something...ive also bin looking into this after I did a research on the little adjustments (read hedonics) made over time in the more developed economies. The current Kenyan inflation stats have poor correlations with most economic indicators from savings rate to M3 to KES currency. It's become irrelevant like the CBR that CBK admitted that it wasn't factoring it into the interest rate structure.

The article made a good point about the erosion of purchasing power, which is one of the interesting indicators that should be followed. What are bank lending decisions based on if they borrow at zero rates interbank, hold in excess of 25b in clearing accounts and the real interest rate suggests it's time to lend. The problem i have with the inflation rate is that one can't make comparisons b4 2009, so we can't know the drivers. A devalued currency during export recovery growth as well as other inflows, it's all so confusing.

http://www.bi-me.com/mai...=48853&t=1&cg=4

http://blog.kimblecharti...dollar-testing-support/

Return of unsecured loans as banks raid salaried employees www.nation.co.ke/busines.../-/14qfos7z/-/index.html Could this turn out as bad as it did for the American banks when they went on a lending spree?

U.S. Security Company Seeks $7.5 million in Exchange for Equity

USA existing security (public safety, consulting, training, alarm monitoring & installation, access control, body guard, investigations) company seeks 7.5 million USD in exchange for equity to consolidate 4 existing companies into one LLC and purchase equity in other similar companies to increase market share. Management has over 300 years of combined security industry, real estate, construction and government experience, and their goal is to operate more efficiently and profitably as a whole unique brand, rather than as divided companies and brands. They have profitably managed a multi-million dollar security services firm, and have clients at the local, regional, national and international levels.

Clientele that they protect include federal agencies responsible for disaster response and recovery (federal government), national alarm companies, local utility firms, national utility firms (electrical, water), wind generation plant companies (“green” technology), international security companies, celebrity security (estate and travel), Fortune 50 executive protection, natural gas pipelines and terminals, jewelry (diamond import / export) companies, large parcel carrier firms, consulting and investigations firms, national P.I. agency referral firms, national and regional security companies, international banks, A.T.M. servicing firms, city governments (local and state) throughout operating areas, educational facilities and schools, residential communities, homeowners associations, property management firms, hospitals and medical clinics, tobacco manufacturers and distributors, petroleum companies, disaster response and recovery companies, construction companies building clean energy housing and commercial spaces.

Please let me know of a good candidate via karanjakinuthia@hotmail.com

@scubidu - An interesting FT article on the latest count of CB's still devaluing or intervening on their currencies against the $.

http://ftalphaville.ft.c...-a-one-week-band-redux/

In 1949, Henry Hazitt was quoted on Newsweek about how the Bretton Woods fixed foreign exchange mechanism could collapse due to rogue devaluation - what the world is currently experiencing. He called this the World Monetary Earthquake (title of his book) - note it's a long article.
http://books.google.co.u...m=1&ved=0CCgQ6AEwAA

http://en.wikipedia.org/wiki/Henry_Hazlitt

Biotech and Healthcare Takeover/Joint Venture Offer

A Singapore based fund is investing USD$50 Million Dollars
into an Australian Company who are market leaders in healthcare
supplements.

The company holds significant international contracts,
currently exports to 12 countries as well as entering a
major acquisitions program to accelerate market penetration.

They are going to use the funding to take over and or JV
with listed companies all over the world in their sector to buy every
good ebitda positive company in their space.

Some of the key criteria:

a) SECTOR: Similar space and/or product synergy

b) KEY CHARACTERISTICS OF TARGETS
Compatible market or product and strategy Excellent brand
Capacity & ability to ramp up
Asset rich
Multiple revenue streams
Listed or private
Efficient decision making process and capability to provide
accretive ebitda
Ability to add value geographically and strategically
Acquisition model based on earn out, part cash, part equity.

Please let me of a good candidate via karanjakinuthia@hotmail.com

@Scubidu - Did you read this article - http://www.businessdaily...8/-/u5fo4uz/-/index.html

[quote=hisah]@Scubidu - Did you read this article - http://www.businessdaily.../-/u5fo4uz/-/index.html[/quote]

Yes I did read it. I know him personally (so no surprize on the inflation thing). You'd be surprized how much of his article was actually edited (not politically correct). His next article is on the EAC I believe, will it last.

Could open your other link on bank officials...

Did the Treasury say that they were going to slow down on the Kenyan stimulus?

@hisah. Can you explain how TIPS can yield negative? How do they work?

In the IMF latest October report for Sub-Saharan Africa Kenya is still classified in the list of oil importers that are money targeters or inflation targeters. Slide 4 have interesting table showing the downward slide in commodity prices for food and grains.

http://www.centralbank.g...202010%20Commentary.ppt

http://www.lewrockwell.com/paul/paul700.html

http://www.caseyresearch...791?ppref=CRX175ED1010A

http://www.financialarma...street-disconnect.html?

http://www.businessinsid...cy-subcommittee-2010-11

I expect an animated week in week out with the Fed chair facing Ron Paul on monetary policy debates The US markets will not like this very soon coupled with a measly $600B stimulus. At least this should spare the $ some gold & silver punishment...