Latest News Editor's Choice

Opinion / Columnist

The president's accounts bruised by Reserve Bank, PFEE to money barons

25 Sep 2019 at 08:26hrs | Views
The freezing of accounts of Queen B and his side kicks shows that the president is now serious. The steps taken shows a serious willingness by the president to steer the country back to its previous glory. In every country, the government takes steps to help the economy achieve the goals of growth, full employment, and price stability. the government must influence economic activity through two approaches: monetary policy and fiscal policy. Through monetary policy, the government exerts its power to regulate the money supply and level of interest rates. Through fiscal policy, it uses its power to tax and to spend. It has emerged that only two people determine  the money supply in the country.  The economic meltdown was largely attributed to these men. But on whose instructions.

It is imperative that the electoral promises be fulfilled.
Our country has everything and anything. The country has been held at ransom for a longtime by the criminals who have been literally surrounding ED. The mafia type of governance must be put to an end. ZAAC must flex its muscles towards the ones who had caused the suffering of the masses in the name of the President.  This is not the time to celebrate our victory but to turn our victory into success.

We can not afford to be sloganeering on empty stomachs. Zimbabwe deserve better. The failure to supply cash to the people is the greatest failure of all times.

In the spirit of fairness Reserve Bank must target all criminals regardless of their proximity to the head of state.
The abuse of the president's name is rampant and indeed many investors were extorted by those who claim to be the president's close friends or relatives.

Any person who is from the Midlands calls upon the name of the president in order to gain unfair advantage in any transaction.
The government must reward the voters and the nation with tangible solutions to our economic problems. The queues in our banks must be dealt with now.  

Our youth must not be the tools of campaign but must be employed and taught how to provide for their families.
It is what we do in the next three years which determines what we will be as a nation.

The first huddle ED must put out of the way is the cash crisis. This takes us to what economist call monetary policy.  
Monetary policy is exercised by the Reserve System which is empowered to take various actions that decrease or increase the money supply and raise or lower short-term interest rates, making it harder or easier to borrow money. When the Reserve bank believes that inflation is a problem, it will use contractionary policy to decrease the money supply and raise interest rates. When rates are higher, borrowers have to pay more for the money they borrow, and banks are more selective in making loans. Because money is "tighter"â€"more expensive to borrowâ€"demand for goods and services will go down, and so will prices. In any case, that's the theory.

This can be achieved if we have our own currency to control. ED must strive to reintroduce the local currency. We can not have a ministry of finance which can not control any finance. A country can not be sovereign when they can not control any currency. Relying on foreign currency reduces the country to beggars. This failure is manifested in the queues for cash. Cash is a basic livelihood aspect it is a taboo to have cash shortages. The real Crocodile must walk out of the comfort of the dip waters to grace the river bend to catch prey. Once we have our on currency we will typically tighten or decrease the money supply during inflationary periods, making it harder to borrow money.we can as-well be able to control the supply and demand of cash. This must be done as soon as possible.

ED must not play politics but get off the high horse for the sake of the people of Zimbabwe.

To counter a recession, the Government must use expansionary policy to increase the money supply and reduce interest rates. With lower interest rates, it's cheaper to borrow money, and banks are more willing to lend it. We then say that money is "easy." Attractive interest rates encourage businesses to borrow money to expand production and encourage consumers to buy more goods and services. In theory, both sets of actions will help the economy escape or come out of a recession. Our problem can be solved by our resilience.

We must control our spending. The rewarding syndrome must come to an end. We must be in a position to control the fiscal policy.
Fiscal policy relies on the government's powers of spending and taxation. Both taxation and government spending can be used to reduce or increase the total supply of money in the economyâ€"the total amount, in other words, that businesses and consumers have to spend. The freezing of accounts of those who have been bleeding the nation gives the country teeth it never new it had. When the country is in a recession, the appropriate policy is to increase spending, reduce taxes, or both. Such expansionary actions will put more money in the hands of businesses and consumers, encouraging businesses to expand and consumers to buy more goods and services. When the economy is experiencing inflation, the opposite policy is adopted: the government will decrease spending or increase taxes, or both. Because such contractionary measures reduce spending by businesses and consumers, prices come down and inflation eases. If only Mthuli can be allowed to work without bias the nation will prosper.

Zimbabwe has enough to run its own affairs. We can survive without borrowing. We are not meant to survive on handouts we are blessed with everything we need. It is only how our leaders manage it which makes us debt free. We have parasites who have been stuck in the name of the president who are causing more harm than good.

If, in any given year, the government takes in more money (through taxes) than it spends on goods and services (for things such as defense, transportation, and social services), the result is a budget surplus. If, on the other hand, the government spends more than it takes in, we have a budget deficit (which the government pays off by borrowing through the issuance of Treasury bonds). Historically, deficits have occurred much more often than surpluses; typically, the government spends more than it takes in.

Consequently, the Zimbabwean government had a total national debt of more than $7 billion this number has risen dramatically in the last five years. The significant jump reflects several factors: a big increase in government spending a substantial rise in interest payments on the debt, and high corruption. Through ED's ingenuity the internal debt has been reduced tremendously.

ED has the toughest task of steering the country back to its old glory. He must not treat anyone with kid gloves.
Now the Pfeeee slogan must usher in progress.  Must pfeeee us to jobs for our youth. Must make those in diaspora consider returning home. Pfee home.

It is not good out there. We must gain our pride in our country.
A Zimbabwean must pick up his pride and walk tall. We now need economy to be blooming.
ED must keep his promise to concentrate on economy and not on politics. He must allow those who abuse their proximity to him to be arrested and their loot to be offloaded.
A call of unity must be made. We must blow the trumpet of oneness. The country must be united to conquer our ills. Together we stand divided we fall.

Chamisa must take a great lip to maturity he must now have the country at heart and stop his obsession with power. He must offload excess baggage like Biti and Sikhala and join hands with ZANU PF for the sake of our nation. There is no pride in our situation now.
We need working together to be in our glory times again

Source - Dr Masimba Mavaza
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.