obekediamondfuto:



Our problems stem from the mentality of the grassroot and becomes more pronounced at the legislative and judiciary level and is at an all time high at the executive level!

tartar9:
Money itself is worthless,its a more advanced and universal form of trade by barter.It signifies a contract/agreement that whoever posseses it has earned that amount of production/service.

AntiBalaka:
Paper money was designed to be a promissory note issued on behalf of the head of the sovereign as an instrument of credit to those who held it in their possession.

The more paper money in circulation, the more indebtedness a sovereign was.

King A issues a promissory note to pay ten metric pounds of gold to one of his subjects, Mr B, for goods or services rendered which will be redeemed in a specified time in the future.

Given that King A has absolute authority and credibility, Mr B, can pass some or all of the debt to Mr C in return for goods and services.

This arrangement only works where King A is not bankrupt and that he is guaranteed revenue to the crown.

In a situation King A is broke and revenue to the Crown in the near and distant future can not meet up to the King's expenditure, his subjects and even fellow kings will not be eager to render services or goods to King A.

In this case, paper money or promissory notes are only good on the sovereign being able to redeem it's debt.

haryomikun:

They were good on being able to redeem debt.

Not the use of the word 'were'.

Paper money used to be promissory notes until the severance of fiat currencies from the gold standard. Fiat notes are no longer backed by gold.

Now it's backed by the full faith and credit of the government that issues it

AntiBalaka:


Before the era of the Caeser dictatorship, Rome issued pure gold coins as currency straight from the treasury. The gold came from taxes and tributes generated across the empire and also from plunder.

The Roman Danarih gold coins were worth their weight.

Then as the empire slipped into decline as a result of waste in maintaining the entertainment of the Roman Proletariat class with gladiator games and flour subsidy imports from Egypt coupled with high deficit spending in infrastructural projects across the vast expanding empire that on its own required Roman administration and military expansion compounded by the decadent opulent lifestyles of the Caersers and the nobility class, Rome went belly up.

The once valued pure Roman coins will later be replaced with gold plated Base metals and at the very dying end copper coins will become the only coins Rome was able to issue.

This is inflation leading up to deflation!

Growth - Bubble - recession - depression.

This is the normal cycle of all human misadventures into collective resource management under a single currency issuing body.

It won't be the first time neither will it be the last as humans are too stupid to figure out the solution lies not in a compacted capacitance - that is what money is- a means of storing human energy (labour) and skill set.

As long as growth continues to be recorded, inflation will arise which will later turn to deflation.

Anoniemos01:


Well, why don't you do the maths?? India has 22% of her population(1.3 BILLION) under poverty, Nigeria has hers at 46%(190.9 MILLION)
Besides, you can't just rule Nigeria out has the poorest country on earth., Or do you want to tell me you don't know of other countries which have almost all of their citizens in extreme want?? You might say we are more in population than them but what would you have to say to a country that has about 75% of her population in penury??

Plus considering the fact that Nigeria has produced a fair amount of people who are still living in stable conditions compared to some of our other counterparts, we are not on the worst-side, 'yet'. And we are definitely not the poorest in the planet, as you erroneously pointed out earlier.

obekediamondfuto:


It is actually because...
Money in itself is designed to hold value. When a particular currency (or denomination of the currency) fails to hold the anticipated value (due to inflation, depreciation etc), then that currency or denomination loses usefulness and with time is phased out (subconsciously not officially)

Your challenge cannot be attributed to lesser circulation of those select denominations but accelerated loss of value.

PS they still print these notes but how many people will go to a bank and choose to be paid in N5, N10 and N20 bills?
Eg.
We had X amount of N5 notes in circulation at some point, due to some silly excuses (fuel related), the price of other things went up... When the same fuel that caused the problem went down.... Those elevated prices did not reduce correspondingly and we repeat the same event periodically just to show how greedy and self centered WE ALL are.
The same N5 still had X amount of bills or X - 0.75 to cater for obsolete, condemned and unusable notes... But it feels like we now have X - 3.75 notes in circulation due to its lack of usefulness as it no longer holds the primarily established and projected value.

Sadly, I'd go right ahead and say this again....
There is no straight forward solution to our problem in Nigeria,. ..

Mass annihilation - it won't work! Even if it does, the supposed successors are even more greedy than the present.

Recolonisation - Might solve a lot of problems but will introduce a whole new world of struggling.

Martial law - Will work but who are the supposed military rulers? Same old Nigerians? Then we see an even bigger problem than them all.

Our problems stem from the mentality of the grassroot and becomes more pronounced at the legislative and judiciary level and is at an all time high at the executive level!

AntiBalaka:


I have already written about the origin of fiat currency and the end of the gold standard in this same thread.

Check it out

haryomikun:



I believe Bitcoin (or some other Cryptocurrency) will be the perfect solution to this inflation nonsense plaguing the world

AntiBalaka:


Bitcoins and other crypto currencies were designed to prevent fiat currencies as there are only one million fixed units, which makes bitcoin a stable appreciating currency if more and more people decide to switch to it.

But there is a problem, conventional banks are deliberately trying to make Bitcoins appear unstable with their massive buy ins and sell offs. The banksters are engaging in insider trading within the bitcoin market by buying and reselling to themselves at steady huge appreciations only to crash it down themselves when Bitcoins are at an all time high.

They can do this because Bitcoins are purchased with their own instruments - fiat money!

haryomikun:

Lol only Bitcoin has 21 million units. Other cryptos have varying circulating and fixed supplies.

In the crypto space, we aren't too sure its the banks that are the ones buying en masse and dumping (they're referred to as whales). However, no matter the effect of these whales, Bitcoin can't go below a certain price. It's been established since the last bubble and market bleed-out after the 20,000$ Bitcoin price swing high.

The whales are more likely to even be individuals. It doesn't matter how volatile they make Bitcoin seem though. That's the reason some get attracted to the market. The only thing Bitcoin's waiting for now is the arrival of several big names in the industry through the approval of the VanEck Bitcoin ETF.

Bitcoin and cryptocurrency has solved a problem that has plagued the world's economy since the issue of trade by barter was solved... Supply. Even if all existing cryptos fucck up, crypto has created a fire that can't be quenched