Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich..

Economist in the house your explanation is needed here.....

Respect55:



English analyst, so wat answer have u
given at d end of your analysis?





NUTIN.


You are the most deficient. U can't even punctuate ur write-up properly.

Smh

musicwriter:


Strong army would come later. What we and other third world countries need immediately is find our way to science, and begin building our own airplanes, ships, fast train, cars, submarines. Name them!. Everybody would become equal, and western powers would get stuck with their greed.

As it stands now, the rest of the world is in a neo-capitalist slavery still serving the same old ancient slave masters. As you put it "America = Europe".



People that follow me, if you watch above videos you'll understand why I've always argued the US is a slave nation, and the danger is that they're trying to pass their debt to the rest of the world.

PentiumPro:

I don't normally reply kids like you.

Respect55:


[s] Neither do I have time for mediocre in disguised form of knowledge[/s]

PentiumPro:

swerve!

nextstep:
You have to be able to back up all these promises (that's what money is: promise to deliver value to the bearer).

The first issue with printing out money is inflation: everybody may have paper money, but the supply of tomatoes has not increased. All you'll do by printing more money is that the price of the available tomatoes goes up, as the seller will want to sell to the person who wants to give the most money. When the seller wants to go to the bank to deposit the cash, he may find that transport has gone up, since the number of taxis has not increased. When taxi driver then goes to buy fuel, he may find that fuel has also gone up, since there has not been an increase in fuel supply. Fuel seller goes back to the market to find that tomatoes has gone up again this week. As this goes round and round, you'll have the current situation in Zimbabwe.

The second issue is that we cannot fool the world into loaning us money if we're not being more productive or making things of value (this is the privilege of a certain country whose currency is presently the world's trading currency, but arguably that position has been earned over the past century and half. Now if you're that country and you feel like pumping your contracting economy (and by extension saving the world economy from collapsing) by increasing the money supply, you'll find that there are people who will buy your promise for a small fee (interest), based on your previous history of paying/honoring your promise over time.

Since Nigeria does not plan to increase the supply of goods and services, and since it has really terrible trust in the global scene, it has no business printing more currency

mrvitalis:

Then we use our population to mine more gold and save that in the central bank then print more money as loan

Hisduchess:


thanks plenty for explaining to me cos I have kinda tried using internet to solve this puzzle buh I still gets more confused. wish u am seeing u life now so that I can get well cleared about this topic.buh thanks for ur help so far I appreciate

Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich...


Economist in the house your explanation is needed here.....

oglalasioux:


Where is the gold deposit? Where is the technology to mine and smelt it?

mrvitalis:

What are the universities for, have hard of PRODA? ? They can get the technology

We have gold in comerscial quantity in Nigeria

tsdarkside:




the problem with your strategie is: they will not allow you to reach that stage to be self-reliant.....they will set all types of confusions for you....pitching your brothers against you(boko brosis,biafrans,ghaneans,camerounians and many more),full scale media propaganda(very effective),manipulate your leaders(jonathan,kanu)...their is a lot of ways to disrupt a nation...read sun tzu and understand what is in their minds...

i say build first your army out as good as possible,so that they are afraid of you....screw respect,put fear of you in their hearths....

musicwriter:


You're very far behind still living in the past!.

What you're suggesting may have worked in the 1400 to 1600 century when manpower alone meant military might. But, from the 1800 century technology began to replace manpower, not only in military arena but in all areas of life. Just one atomic bomb lead Japan to surrender to the US in 1945 during the second world war.

Today, we're even talking about replacing manned military with robotic soldiers. In fact, the wars going on in Afghanistan is being fought with computers somewhere in America!. Every airstrike and bomb you hear detonated by a drone in Afghanistan were done by simply pressing a ''delete'' botton on a computer sitting in the US.

However, I agree with you on western powers undermining scientific progress in and not allowing Africa or other third world countries develop scienctific and technological capabilities. But, I'm about to break the status quo pretty soon.

Georgry:
Hello Nairalanders....

Knowing fully that a country have the right to print money as much as they desire,and their is no limit to the quantity of money a country can print, this question comes to my mind:

Why can't a country just keep printing money to the stage that it will be enough for every body in the country to be rich...


Economist in the house your explanation is needed here.....

suyamasta:
This can be done in a targetted manner! the cost of printing money is lesser than the value of money, the only problem is the fear of inflation! For example the government can print 1 trillion naira and specifically direct that amount towards payment of salaries and loans to productive sectors! in so doing money is paid for work done! thereby stimulating productivity!
So its a good economic practice if properly done! US did something similar and the ECB is doing something similar as well!
So if Baba Emefiele and co can do something similar with an excellent approach then unemployment can be drastically reduced!

suyamasta:
No no no! If you say it represents individual contribution to wealth you are wrong! the many unemployed youth who are a major part of the population then contribute nothing?

fiizznation:
Yes they do have exchange rate. Every currency has its exchange rate. But don't forget, my first answer to this thread was directed at the op's question; which was why can't we produce more currencies, and which I used Zimbabwe as an example. Honestly as of today, I don't know if the Zimbabwean dollars is still that weak and utmost useless as it used to be about 2years ago

odimbannamdi:


This is a plausible suggestion. I have a question. I am pretty sure that if the govt wishes to print 1trillion naira, it will cost them materials to do so, making the total money printed to be less than the 1trillion naira actually. Like how many percent of 1trillion naira (in the cost of printing materials) is needed to produce it.

I do hope you understand my question.

odimbannamdi:


Yes, that is the tell you that the bulk of the money is simply rotating within the few wealth ones

bookface:


Printing money will not always result in inflation. Although it is the conventional wisdom, it is not always the case.

The conventional wisdom is based on the simple equation MV = PY where M is the supply of money, V is the velocity of money, P is prices and Y is the total quantity of goods.

The conventional wisdom that printing money simply increases inflation assumes that if M is increased, all other things being constant, then P should increase.

But all other things shouldn't have to be constant. For example, if printing money leads to more quantity of goods, prices could actually fall.

Furthermore, the argument is nonsense that more money supply equals higher inflation. Everyday a bank creates a loan, it is basically increasing the money supply out of thin air, which may not necessarily lead to inflation.

Finally, think about this...suppose the central bank prints out 10 billion naira notes today, and they leave it in the vault...would it cause inflation?

The answer is no

Suppose, the CBN choose to give the 10 billion notes to just 10 people, would this cause inflation? The answer is no! hence the role of the velocity of money.

EDIT: That said, you are correct, printing money to make all Nigerians billionaires will result in hyperinflation.

suyamasta:


It should not cost up to 20percent of the value in printing, i dont have the exact figure for Naira but see that of dollar
see how much it cost the US to print the dollar
$1 and $2 --- 5.5 cents per note
$5 --- 10.9 cents per note
$10 --- 9.9 cents per note
$20 and $50 --- 10.6 cents per note
$100 --- 14.3 cents per note
Source: https://www.federalreserve.gov/faqs/
currency_12771.htm
https://www.nairaland.com/3027710/see-how-
much-it-cost

odimbannamdi:


This is a wonderful piece of information you just exposed.

Considering that Nigeria is an import based country, i wouldn't be surprised if it ranges from 40-60%

NwaNimo1:
There needs to be a demand for the money - US and the UK print money but they get away for it due to worldwide demand for the money. Both countries national debts are in the trillions through all the money they borrow from their central banks!

Nigeria couldn't do the same because there would be no demand for the notes (you don't need naira to buy oil and that's all we export)

[img]
https://www.youtube.com/watch?v=UrJGlXEs8nI[/img]