Tapiwa

Zimbabwean 🇿🇼
MD, Speculator

[Tapiwa @Tapiwatan]

@M_Jay94 QFA is printing and not borrowing.
Govt borrows through short, medium and long-dated instruments.

A school (bricks, cement, labour, desks, chairs etc) are domestic goods that don't need Afreximbank.

Borrowing from IFIs is putting on a yoke(interest+principal)

[Tapiwa @Tapiwatan]

@baba_nyenyedzi Stocks

Real Estate is client facing and has a lot of logistics

[Tapiwa @Tapiwatan]

@M_Jay94 Borrowing locally doesn't cause inflation. In fact it does the opposite

Borrowing foreign currency for domestic consumption is setting the currency on fire and you will need to borrow more to quench the fire.

IFIs know that and it's their business model

[Tapiwa @Tapiwatan]

@M_Jay94 Govt doesn't need to print. Borrow from the domestic market (domestic currency) to build infrastructure.

It is stupidity to borrow foreign currency in order to build a school or road. Westerners don't borrow forex for roads

Afreximbank knows it & it's business for them.

[Tapiwa @Tapiwatan]

@M_Jay94 What does development finance do other than for consumption?

Do IFIs replace domestic credit creation?

[Tapiwa @Tapiwatan]

@M_Jay94 @iam_AmOla The auditors will be thieves

[Tapiwa @Tapiwatan]

@DengaBusiness @baba_nyenyedzi Private institutions have been offering emergency treatment since time immemorial.

New Act
- keep the child for 48hrs for free
- if child in govt hospital can go to private & get treatment for free
- Minister has the prerogative to decide whether private hospital can get paid

[Tapiwa @Tapiwatan]

@baba_nyenyedzi Loss of Grey Matter that comes with age

[Tapiwa @Tapiwatan]

@M_Jay94 The basis of their culture and sophistication is rooted in individual freedoma and a dynamic democracy

[Tapiwa @Tapiwatan]

@M_Jay94 The MPs are subject(puppets) of the Executive.

MPs will do what is in their own best interest

[Tapiwa @Tapiwatan]

@muvhitoriwe @DengaBusiness @M_Jay94 And the incentive of high bank charges keeps banks from lending.

[Tapiwa @Tapiwatan]

@M_Jay94 My 2 cents
The opposite might be true.

Pay cash for personal items
And use debt for commercial entities/assets

[Tapiwa @Tapiwatan]

@M_Jay94 It is much more complex.

Zim interest rates range 18 to 30% vs 3-5% USA
Cost of capital is restrictive
Local banks don't offer mortgage to locally employed fellas.

[Tapiwa @Tapiwatan]

@JoshYoung @Kathleen_Tyson_ Which is good.

[Tapiwa @Tapiwatan]

@Hedgeye A bubble has been popped.

[Tapiwa @Tapiwatan]

@baba_nyenyedzi US and China.

The British and European industrial complex ran on and still runs on fossil fuels.

Virtue signalling be the Europeans has crippled them

[Tapiwa @Tapiwatan]

@M_Jay94 Information Assymetry is good for those who are benefiting.
It is a structural advantage.

If a sector becomes flooded everyone in that sector becomes a loser.

Eat with your mouth closed

[Tapiwa @Tapiwatan]

@curious_edline If it is free you are the product