A number of people have been wondering why government of Kenya is not printing more money to settle her international debts such as that of China. This is a very good curiosity! Though cannot be allowed simply because, printing more money will increase money supply in Kenyan economy thereby resulting to majority of people having plenty of money thus prices of goods and services will go up. Therefore one would need more and more money to purchase goods. Two countries Venezuela and Zimbabwe once tried to print more money to help their economy grow.
The end result was wanting as prices goods and services went up, where cheap goods were now bought in millions. Venezuela went further to restrict increase of prices of goods, thereafter shops ran out of things. Thus printing more money is such dangerous!
For a country to settle her debts and get richer, the country has to sell more things to other countries, whether goods or services, this makes it safer to print more money so that people can buy those extra things. If a country prints more money without making more things to sell, the prices will definitely go up.
However there is a country that can print more money and still get rich, USA. This is because, USA is wealthy, makes more things and boasts valuable goods such as gold and oil which are priced in US dollars. However printing too much money can still result to rise in prices in the country.
Therefore if Kenya prints more money to settle China debt, prices of our goods may go up and reach a point where people may even stop using Kenyan currency and want to be paid in US dollars. Below are some of the amazing pictures of Kenyan currency.
Content created and supplied by: Orimbatyson (via Opera News )
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