iamord: u are very right.. But actually like I said its a deadly mission.. I want to fully understand how they operate from within.. Then restructure a plan to topple it for my countries benefit.. It won't be easy.. We need people that can tap information..am sure if we had we will be suprised about some links of bokor haram sect etc

iamord: u are very right.. But actually like I said its a deadly mission.. I want to fully understand how they operate from within.. Then restructure a plan to topple it for my countries benefit.. It won't be easy.. We need people that can tap information..am sure if we had we will be suprised about some links of bokor haram sect etc

red101: countries go broke because of low production. money is just paper. you can't eat it, you can't use it to clothe yourself. etc
ex. Mugabe kicked out the white farmers in Zimbabwe hence agricultural and livestock output went down and food became scarce. Mugabe thought he could solve the problem by printing more money.
Think about ancient barter system. How do those societies go broke. probably because of famine or drought or wars etc resource depletion. Money is just paper meant to represent production of valuable resources. Banks and economists have to regulate it so that the currency is a proper reflection of production rates. otherwise, there will be inflation or in the opposite case, deflation.

kolykoldy: There's something call the Dollar certificate. When a country transact Biz with another,like crude oil or palm oil (lol),the recipient country pay em in dollar certificate from their trade and something fund (couldn't recollect that)...country also do biz with this certificate, and when ever they have to print money they Dollar certificate ll reduce the exact amount printed by your country....the world have regulatory body...but dem baba iyabo dey print money oo...and my oga in the grave Abacha print more than enough...ITT my assz.

nickz: [b]If inflation increases, people will not want to hold bonds because their value is falling. Therefore, the government will find it difficult to sell bonds to finance the national debt.[/b]

benuejosh:

Why are bonds sold? stop complicating issues bro. selling of bonds are part of monetary policy strategy to bring down inflation to it' barest minimum. most probably to a single digit.

alexanderdeg: Nice thread , but what about b***d money , its mint too and who prints them ?? Accountants and Economists please your comments on this ........

RebelLeader15: Using Nigeria as a case study, I can categorically tell you that, if any God fearing country have these set of Politicians we have, the country must surely collapse not even going broke....

Missy89:

This is very wrong! US Europe and Japan doesnt print money and get away with it. no one print more money to pay for debts .
has nothing to do with militarily.

The reason why US prints money daily is because the dollar is used in the Oil trade and since it is done daily, there are high demands for the dollar which makes the value stable regardless of the amount in circulation.
It is a risky system of course and it can backfire if the dollar is no longer used for trading but that is highly unlikely because the US is very stable and it actually got this privilege after the end of the war.

USA do print money. Or what do you call Quantitative Easing? QE was done to boost demand! Most of the trades that uses dollar don't use physical cash. Or you think when we sell oil, buyers pay cash? In fact, if you did elementary economics, you will know that the VALUE of money in circulation is many times the physical cash in circulation. So powerful nations like China, USA, Japan have been printing money to tilt things in their own favour since. Why do you think China is being accused of currency manipulation? The thing is some countries can print money without attendant inflation, but they must be able to manipulate the value. Few countries can do this
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mikedanza: Your currency is influenced by several factors

1. Amount of output in the form of GDP and relative comparative advantage ( stuff you can produce better than others). Some of which you will consume and/or sell to other countries (export)

2. What other countries feel is the value of your currency based on some of the other listed options

3. Stability of your Government and Economy (they are sure you won't overthrow tomorrow via a coup or wake up overnight and Nationalize foreign investments, or change interest rates etc)

4. Amount of stuff you require from other countries/bodies which you cannot produce yourself (imports)

Let's give a Layman's scenario in the light of the above.


Assuming this government prints lots if naira (NGN) and shares 100 million for each citizen.

At the current rate of prices of goods in the market, on a first come first served basis a few thousand people will buy up most of the land in each state. Goods and services will be bought up in the same manner with millions of people having money in their pocket with nothing to buy.

Next thing is if you wish to buy a piece of land that used to cost 10 million, you might be ready to cough out as much as 3 times the amount for the owner to feel tempted to sell to you because he knows he can't get it at the same price he bought it at first ( due to scarcity occasioned by high demand as everyone has too much money now). This same pattern will affect all sectors and drive up prices leading to what we call INFLATION (plenty money chasing too little goods/services)

Taking it to the import /export level......

Nigerians now have lots of money and will want to import cars and luxury items from the United States. Assuming you must convert to USD.

Your currency is as strong as the sum total of your output (GDP).

If they finish accepting your NGN and come over to spend it in buying Crude and they discover the entire Crude you own is less than the amount of NGN you have spent in their country buying cars, a trade deficit sets in. They will no longer accept your NGN again and they will promptly tell you to make purchases henceforth using their own current.

The only way to raise the USD will be to sell crude. and the amount of crude you produce per day is just over 2 million barrels. But you want to buy cars worth 20 million barrels cos you printed more money.

Every country will now increase the number of NGN they will collect from you in exchange for their own USD. AND YOUR CURRENCY BECOMES LIKE THAT OF ZIMBABWE!!!

Therefore part of the difficult jobs of Central Banks and Ministries of Finance is to find out where this fluid balance is between Output, Consumption and the amount of currencies/instruments to print/generate via fiscal (Quantitative Easing, Budgetary spending, debts etc) and monetary (interest rates, cash reserve ratios for banks, inter bank etc) policies!

birdman:

When you print money as you please, you cheat the countries you owe money by making that debt worthless. In other words, in addition to printing money, you need to have the military might to "talk" other nations into accepting it. Hence US, Japan, Europe generally get away with it. Argentina on the other hand cant, I believe one naughty Nigerian named Soludo tried something like that once only to receive flogging from yet unknown forces. Man pass man

henrykelek: in Economics it is theoretically not plausible to just print money to buy what u need.
Idi amin tried it and collapsed Ugandan economy, Zimbabwe tried it and experienced the worst inflation ever. The simple idea is dat that economy will become very unstable. prices( inflation, exchange rates and interest rates) will come together to kill dat economy through certain mechanisms.
1. printing money carelessly will lead to hyper inflation, the real value of that same money u printed will be eroded( money illusion). producers in that economy will stop producing because it will be cheaper to import and uncertainty has come to play.
2 exchange rates will become volatile for dat economy, other countries will refuse to exchange their currency with yours because yours is somewhat useless, which will contract that economy in terms of international trade.
3. international sanctions, it is illegitimat to carelessy print money puting the international financial system at risk. IMF and WORLD BANK would impose serious sanctions on such an economy.
4. historical perspective: Zimbabwe notoriously did thid and where severely hit by its consequences now they use the US dollar and SA rand as official currency.

antartica: If they can print their own money?Why can't they just print their money and buy what they need?Why do prices have to rise astronomically with increased money circulation in an economy?Why can't the producers stabilize the prices as before and produce more goods for the demanding consumers that have more money to spend?

Who gains from the stringent money control policies?The people or the iluminaties?

antartica: If they can print their own money?Why can't they just print their money and buy what they need?Why do prices have to rise astronomically with increased money circulation in an economy?Why can't the producers stabilize the prices as before and produce more goods for the demanding consumers that have more money to spend?

Who gains from the stringent money control policies?The people or the iluminaties?

seagulsntrawler: Nice write up you've got there. If i may ask, why does Nigeria go looking for funds to borrow when it has a foriegn reserve of over 50billion usd? I know d funds are held in form of soveriegn countries debt bonds but why not call them up to finance projects?

SpencerLewis:
Birdman (aka nwa nnunu) u are not making sense. Is not a matter of military strength. If not Russia would have been very rich like the USA. USA's wealth has nothing to do with their military might. Instead their economic might gave way to their military might as they were able to finance researches, educations and these attracted more and more immigrants with their expertize knowledge.

Missy89:

This is very wrong! US Europe and Japan doesnt print money and get away with it. no one print more money to pay for debts .
has nothing to do with militarily.

The reason why US prints money daily is because the dollar is used in the Oil trade and since it is done daily, there are high demands for the dollar which makes the value stable regardless of the amount in circulation.
It is a risky system of course and it can backfire if the dollar is no longer used for trading but that is highly unlikely because the US is very stable and it actually got this privilege after the end of the war.

padeolu: Does it matter if the currency is worthless or not? So far money is available to buy whatever it is you need.

aminho: ask the emir of kano

pDude:

Same reason Nigeria is broke.

Tiff tiff Leaders are the cause and corrupt citizens.

Shebi Zimbabwe tried that shyt some decades ago and they are still trying to recover from their fiasco till date. Money is ordinary paper unless it is backed up by something. That something is called value. Otherwise, it is ordinary paper. That is why you can't just print money without it having value.

It isn't rocket science

SirChotas:


That rocket science part made me hate your post. You give a half baked answer to a honest question and you go like.... come on, are you really this dumb, dude? Kindda arrogant. No offense. And I assume that you never needed my opinion.

Missy89:



Africa cant enjoy its resources because of the kind of system in place which is almost impossible to change because of vested interests.
Multinationals are eager to get it cheap, government ready to get money without too much investment, oil barons enjoys free hand as long as money reaches the right people within government, US happy whichever was as long as it is done in dollars