It is no secret that Europe is in crisis, and just like a drowning man Europe is clutching on straws. And now Nigeria happens to be latest straw Europe is clutching on, so we either play along and further condemn the masses to further improvishment or we drown together.

So what am I saying? The European stability fund or EFSF was created in 2010 to source funds to bail out the ailing Europe economies. Note, not that they already have the funds, but to borrow elsewhere. Now who in his right senses will lend money to a broke guy? Well that's where Nigeria is heading (just keep reading). Thus the EFSF in a special purpose vehicle structure. ( I will try to avoid technical areas for easy understanding, but what SPVs mean is simply don't like at the broke guy u r lending money to, just focus on the economic sense of lending out ur excess funds!)

I WILL BE RIGHT BACK

Mai Suya, so you think Nigeria is about to start lending money to Europe?
That argument has too many loopholes.

The first is that we simply do not have the money, cities like London alone, generate far more money and employment than the entire Nigeria. I can provide the statistics if need be. Nigeria's entire economic output would struggle to power Greater London alone, not to talk about the entire UK, and thats well before adding France, Belgium, Italy, Spain, Portugal, Germany etc

The whole IMF argument just doesn't cut it, at best it can be argued that rich Europeans are now scared and looking for promising places to invest their wealth and Nigeria is indeed such a place.

Beaf:

Mai Suya, so you think Nigeria is about to start lending money to Europe?
That argument has too many loopholes.

The first is that we simply do not have the money, cities like London alone, generate far more money and employment than the entire Nigeria. I can provide the statistics if need be. Nigeria's entire economic output would struggle to power Greater London alone, not to talk about the entire UK, and thats well before adding France, Belgium, Italy, Spain, Portugal, Germany etc

The whole IMF argument just doesn't cut it, at best it can be argued that rich Europeans are now scared and looking for promising places to invest their wealth and Nigeria is indeed such a place.

Pls stop posting on this forum. U stink.

IMF and World know how the world will benefit from Nigeria if our economy grows.

We have the human resources, and the world needs every one of you to contribute to the world economy!

The only way to make every Nigerian useful is by making Nigeria better.

And that is what GEJ and Ngozi are trying to do.

Ride on GEJ

Fresh Air is finally here!

Now the EFSF is hoping to raise a trillion dollars (note hoping), now that's like over a 100% leverage, it's like a guy filing for bankruptcy trying to raise 100milion  naira from another bank- will that bank lend him the money?

The Europeans were eying the trillion dollar Chinese reserves (thats enough to wash some  eurozone economies down the drain) but the Chinese are not committing any thing to Europe and that has got them worried! Neither are the Latin American economies willing to invest or lend money to Europe's EFSF because they still remember their bad romance with the IMF during the 80's and 90's (read about the Argentinian debt crisis and subsequent default)
Now the last resort is Africa! Why?

I WILL BE RIGHT BACK (will post the links at the end)

Mai-suya:

It is no secret that Europe is in crisis, and just like a drowning man Europe is clutching on straws. And now Nigeria happens to be latest straw Europe is clutching on, so we either play along and further condemn the masses to further improvishment or we drown together.

So what am I saying? The European stability fund or EFSF was created in 2010 to source funds to bail out the ailing Europe economies. Note, not that they already have the funds, but to borrow elsewhere. Now who in his right senses will lend money to a broke guy? Well that's where Nigeria is heading (just keep reading). Thus the EFSF in a special purpose vehicle structure. ( I will try to avoid technical areas for easy understanding, but what SPVs mean is simply don't like at the broke guy u r lending money to, just focus on the economic sense of lending out your excess funds!)

I WILL BE RIGHT BACK

Exactly Mr. The Chinese made it clear to them that they are not ready to use their treasury to prop up Europe's budget but we are so unfortunate to have an edareda ( anywhere belle-face) as president, i am very hopeful that history wont repeat itself. I also believe there is energy/crude oil dimension to the whole scam.This is beyond fuel price of 65naira
Godbless you and please do come back.

Now let me break a bit and explain to those who don't understand how this whole investment process works.

The EFSF is a fund(not funded with cash yet) which is set up to bring in cash to bail out European economies. Now the Europeans -henceforth called the bankrupt, will issue a piece of paper called bond certificates to willing investors like the elusive Chinese and potentially nigerians who will pay to buy these pieces of papers. Now the money the investors pay the bankrupt for the bonds represent certain percentage of the total worth of the EFSF. 
Now don't get it twisted, this is no money you hope to get back tomorrow or next five years. It's a long term investment (no wonder our govt keep telling us we must sacrifice for our children, but if we die of hunger today, who go born that children of tomorrow?)

Now in the mean time as you wait for your long term investment to mature- when or if it ever matures! You are paid intrest on your invested money by the bankrupt guy - Europe, (don't forget this guy is bankrupt in the first place, and has set up some wuru wuru vehicle called SPVs so that we forget it has loads of debt on it's head) now these interest we get in the mean time, I can bet you we will not see, coz it's not much and the current corrupt system won't tell us how or when it comes or is spent!

Any one remember the Nigerian SWF? And how it's investment for our shildrens? Now those were just the ground work for what's to follow.

I WILL BE RIGHT BACK

Africa as the last resort!

Now the Chinese won't commit to investing, the Latin Americans won't either, the Americans have enough problems of their own than worry about bailing out Europe, and unlike the Africans you can't arm twist the BRIC Nations to invest. Africa is the only place where their leaders are corrupt sell-outs and the masses are ill-educated and shallow minded to actually sit and analyse what they are bargaining.

A couple of days ago there were reports on Reuters news network on how the sudden deregulation is the IMF policy towards Africa (the question is why is there so much secrecy covering these policies, and why won't the IMF come out and say yes the policy is our brain child- well it's becoz of their past record of failed policy every where they've been). 
Now is it a sup prise that IMF chief was in some of these African nations in December? And that like dominoes, the subsidy regime in downstream sectors of these counties start falling one after the other. Ghana, Nigeria, guinea, chad, Cameroon you name them.

NOW WHAT'S MY PREDICTIONS.? HERE IS HOW IT WILL GO.

If the deregulation succeeds, the funds will be earmarked and set aside.

Due to the lack of trust of govt by the masses, the coordinating minister of the economy AKA Minister of finance will suggest that we invest the savings in an internationally recognised asset class. Guess what the asset classes will be? Well your guess is as good as mine.

So the savings will either by hook or by crook find their ways to EFSF securities or derivatives there from. 

Oh, lest I forget Moody's, fitch and S&P will grade EFSF investments as "+++AAA+++" (if there is anything like that) and foolish African countries that invest in them will have their ratings reviewed upwards (already potential money miss road countries like 9ja have their outlooks reviewed to encourage them take the jump off the cliff)

Now you can prove me wrong in the next few months