MT:
I really need to know as this is not my turf. Why does the the US get away with printing more dollars to save her economy?. Do the laws of micro economic not applicable to US in this case? . Please I will need to be genuinely educated in this area.

Dollar is an international currency and USA is not an import based nation.

Meaning they have the capacity to increase production to match the money in circulation and with the falling FX worldwide, the demand for USD will ensure that inflation will be controlled in the US.

[s]In this time? We are effing playing with mad A** inflation[/s]

Mad Man, so you can use more Bullion Vans

ijustdey:


https://punchng.com/coronavirus-print-more-naira-notes-tinubu-tells-fg/

For you to embezzle abi??

Emedu:

A MESSAGE FROM TINUBU ON THE CORONAVIRUS

^^^^
Thank you kind Sir, for providing the full press statement. The speculation can end now.

I hereby declare these games open.

Masking:
Tinubu might be right.
And I'm quite sure different governments would have resorted to printing cash in critical times.

Liquidity injections that's what its called.

I've always wanted to understand the Economics behind this.

Can someone please explain? Pocohantas?

Wetin Nigeria dey produce apart from oil?

rusher14:
Why is it that the badly educated are the first to air their opinion on issues beyond their comprehension on this forum?

America has implemented quantitative easing- printing of more dollars to absorb the effect of Coronavirus on their economy.

If the US can do that, and Nigeria itself bases a lot of its commodities on the value of the dollar, why shouldn't we print more Naira representative of the volume printed of the dollar?

Wetin Nigeria dey produce apart from oil?

MT:
I really need to know as this is not my turf. Why does the the US get away with printing more dollars to save her economy?. Do the laws of micro economic not applicable to US in this case? . Please I will need to be genuinely educated in this area.

Because there's unlimited demand for dollar. While other currencies were depreciating at over 10 percent some as low as 30, dollar appreciated by whooping 5 percent. That's the power of being an economic power house of the world.

Bigmanpickin:
Wetin Nigeria dey produce apart from oil?

The question I'm asking is simple: if other countries that produce all the things in the world are printing more money from which they would purchase the things you produce, what would your response be?

rusher14:


The question I'm asking is simple: if other countries that produce all the things in the world are printing more money from which they would purchase the things you produce, what would your response be?

Don't compare yourself with America that have the bargaining power to get away with it

Bigmanpickin:
Don't compare yourself with America that have the bargaining power to get away with it

I did not limit my statement to the US.

USA, UK, the EU and even Japan are already printing more money, so the question is, what is your response?

rusher14:


I did not limit my statement to the US.

USA, UK, the EU and even Japan are already printing more money, so the question is, what is your response?

Nigeria can't still compare with those either

TheStarsAlign:


You are being mischievous, you should know that's typo. Pls grow up.

Even when the point(.) was directly in front of you, you still missed it. Look who is talking about growing up, in the first place, what's the correlation between the comment you quoted and the economic jargons you were spewing under it?

dele1727:


Most of the world economy is based on Credit...infact the paper you call money is actually credit note with CBN promising to settle it with another transaction...

The vulcanizer collect the credit note for service rendered and the gives the rice seller for goods sold and now the credit note is with the rice seller.


During recessions...
The CBN/Government help by
1 Reduce the lending rate
[b] 2, Print more bills.. Thereby flooding the market with more credit [\b]
3, reducing Taxes...

Please let us ask questions before we talk

@ the bolded, I think at this juncture the type of market comes into play, and since we import almost everything, it's simple, demand will topple supply and then..

Surely this comes as the last resort but I think we should explore other options.

iCauseTrouble:
This Corona Virus dey funny I swear. One woman wey dey sell hand sanitiser for my area don test positive

rusher14:
Why is it that the badly educated are the first to air their opinion on issues beyond their comprehension on this forum?

America has implemented quantitative easing- printing of more dollars to absorb the effect of Coronavirus on their economy.

If the US can do that, and Nigeria itself bases a lot of its commodities on the value of the dollar, why shouldn't we print more Naira representative of the volume printed of the dollar?

Don't worry yourself, last last ina etile l'omo eranko won ma ya.

Kkshanana90:
Tinubu, poor student of Economics. He should stop thinking like a first year undergrad Economics student wondering why can’t the government print more money and make everyone rich.

Lol

bigpicture001:


Say only wit u know...you said america reversed interest rate nd gave stimulus bonus to citizens...did they print the notes urgently....

Pro if I were u,I would indulge economics in the house cuz they really those courses for a reason

your write up is incomprehensible are you trying to argue for the sake of it?
state your premise/fact, counter my argument, or go rest your lazy head. idiot

In economics, the real sector must be funded, so people have capacity to buy goods, exchange and foster economic activities, this lead to growth and prosperity. Yes, the West havr indiscriminately printed currencies before to save their nation and people from economic and social collapse. you are a fool, if everything you know and believe is what the white man tells yoy, if you dont understand, shut up and learn.

ChristianNorth:

Dollar is an international currency and USA is not an import based nation.

Meaning they have the capacity to increase production to match the money in circulation and with the falling FX worldwide, the demand for USD will ensure that inflation will be controlled in the US.

The Western nations, US in particular started IMF, WTO, to perpetually control the world's economy, they set dollar as the benchmark currency, print currencies, and ask you to follow economic principles designed to perpetually enslave you. Ghadafi tried fighting this, they killed him.

Idiots here only know what the Western nations instruct them to. fucking zombies.

Bigmanpickin:
Nigeria can't still compare with those either

SHIOR.

dederocs:

The Western nations, US in particular started IMF, WTO, to perpetually control the world's economy, they set dollar as the benchmark currency, print currencies, and ask you to follow economic principles designed to perpetually enslave you. Ghadafi tried fighting this, they killed him.

Idiots here only know what the Western nations instruct them to. fucking zombies.

Thank you. Folks who can't marry local solutions to local problems are worthless to Nigeria right now. I am more concerned about continuous internal economic stimuli to keep Nigeria socio-economically productive so people do not starve and law and order does not break down.

All these stilted brains know to do is show they merely crammed to pass exams rather than understand that education is first and foremost geared towards making us solutions providers for our direct society first and then the world at large.

What is my concern with what America is doing right now? When we are in abnormal time when we all dey Oyo (on your own).

dederocs:

your write up is incomprehensible are you trying to argue for the sake of it?
state your premise/fact, counter my argument, or go rest your lazy head. idiot

In economics, the real sector must be funded, so people have capacity to buy goods, exchange and foster economic activities, this lead to growth and prosperity. Yes, the West havr indiscriminately printed currencies before to save their nation and people from economic and social collapse. you are a fool, if everything you know and believe is what the white man tells yoy, if you dont understand, shut up and learn.

You still miss it...why do u think Maynard Keynes is called the father of modern economics....

If you cannot understand Keynes theory of economic growth nd prosperity...no need talking to u....

bigpicture001:


You still miss it...why do u think Maynard Keynes is called the father of modern economics....

If you cannot understand Keynes theory of economic growth nd prosperity...no need talking to u....

Desperate times calls for desperate measures not economic theories, If the CBN has no funds,we cant access our reserves and cant borrow, then what?

Oshigun:


Thank you. Folks who can't marry local solutions to local problems are worthless to Nigeria right now. I am more concerned about continuous internal economic stimuli to keep Nigeria socio-economically productive so people do not starve and law and order does not break down.

All these stilted brains know to do is show they merely crammed to pass exams rather than understand that education is first and foremost geared towards making us solutions providers for our direct society first and then the world at large.

What is my concern with what America is doing right now? When we are in abnormal time when we all dey Oyo (on your own).

They think like kids, idiots who only understand what they are told. If the nation's economy grinds to a halt, crime will skyrocket and there will be chaos, cos government wont be able to pay police/army salaries...idiots will be quoting SS3 economics text books

Oshigun:


Bruv, read three pages of this thread and I am still shocked and shaking head at how it is terribly ignorant posters hurling the most vitriolic insults. The lack of humility of Nigerians on show here is amazing and scary because it indicates we have a nation full of hateful and 'lynch mob' ignoramuses rather than solutions providers.

What Tinubu is suggesting is a form of financial easing available to Central banks, as one of the last resorts for situation like this, called "Helicopter money".

Even a minute of research would have cured many of there ignorance. Yet once Tinubu speaks many, especially from the SE, just rush blindly to say the opposite and insult Asiwaju.

Many should put aside hate and objectively read the summarized article below specifically about economic stimulus options that can ease the havoc Covid-19 is capable of wreaking.

It will become immediately clear why Asiwaju, far ahead of his peers, should be President and that it is only hate preventing some from seeeing/accepting this. I pity Nigeria and Nigerians sha.


https://www.google.com/amp/s/www.cnbc.com/amp/2020/03/17/coronavirus-how-much-firepower-central-banks-have.html

Both you and rusher14 have no idea what you are talking about

Nigeria is not structurally sound to try quantitative easing or any experiment of thag nature
We would be in serious trouble if we try it.

Japan, USA and Britain does it to varying degrees due to the structure of their economy

If we can cut our imports of ESSENTIALS (take note, I said essentials) by two-thirds
We may be in a better position to do so, as such liquidity will fire up the local economy (Japan style)


Besides
We are FAR OFF from even using this option
Interest rates are still through the roof.

If Tinubu had the sense, he would have suggested the central bank governor cut interest rates by way 600 to 800 basis points across board.
That will do the magic and is safer than QE


But then.

Nigeria is a place where charlatans reign
So I'm not surprised at the funny comments I'm reading here

dederocs:

They think like kids, idiots who only understand what they are told. If the nation's economy grinds to a halt, crime will skyrocket and there will be chaos, cos government wont be able to pay police/army salaries...idiots will be quoting SS3 economics text books

Let me ask you


Assuming we implement this Tinubu experiment to the letter

What next?

Pls tell me what you think will follow.

I would be waiting for your response

rusher14:


The question I'm asking is simple: if other countries that produce all the things in the world are printing more money from which they would purchase the things you produce, what would your response be?

Do you even understand how money is "Printed?"

From the way you asked this question
I'm not sure you do

Growing:
Printing more money is the reason our fathers used N3,000 and started a business in the early 80's and made it big (3k had value), but today the same N3,000 cannot feed one for one week.

It is a wicked person who understands what printing money backed by nothing does to the economy that will be quick to bring it up as a solution.

Why is virtually every economy around the world experiencing boom and bust cycles? Because every central bank prints money.

Printing money whether done by the US or any other country worsens the state of the economy. But greedy people are not ready to admit this.

No wonder they don't teach monetary matters in school, so that many people who will read this post of mine will not know what I am even talking about.

I see your point

Niggmatic:


Because there's unlimited demand for dollar. While other currencies were depreciating at over 10 percent some as low as 30, dollar appreciated by whooping 5 percent. That's the power of being an economic power house of the world.

You don't get my question. I know if Nigeria prints more money, it will lead to an inflation. That's settled. I'm trying to understand the principle behind US printing more money to bail themselves out. Is it legal? Do all the global financial institution approves of it? Why does US accuse China of manipulating currency whereas they print theirs as they wish?. I don't want to just accept that it's because dollar is the world's reserved currency. What that means is if I work hard in Germany to build a car and I export it to the US, the US can just print money to settle me. Does that make sense? Will the world at large approve that?

What I'm asking is deeper than the topic of this thread.

dederocs:

Desperate times calls for desperate measures not economic theories, If the CBN has no funds,we cant access our reserves and cant borrow, then what?

Print money..? The money is bought not just printed....nd who told you Switzerland won't allow u collect your government money

4Play:


You can do this safely where inflation is almost non-existent, the economy is at the zero lower bound. This is the case with most western economies where prices are relatively stable. Money printing (quantitative easing) by central banks is the purchase of assets like government and corporate bonds by the central banks to increase the money supply into the economy.

You absolutely cannot do this safely in Nigeria where inflation is skyrocketing and the currency is already under pressure as you will generate a Venezuela or Zimbabwe style hyperinflation scenario.

This problem of copying western solutions for Nigeria, witness the widespread lockdowns over coronavirus, will cost us dearly.

You have said it all

MT:


You don't get my question. I know if Nigeria prints more money, it will lead to an inflation. That's settled. I'm trying to understand the principle behind US printing more money to bail themselves out. Is it legal? Do all the global financial institution approves of it? Why does US accuse China of manipulating currency whereas they print theirs as they wish?. I don't want to just accept that it's because dollar is the world's reserved currency. What that means is if I work hard in Germany to build a car and I export it to the US, the US can just print money to settle me. Does that make sense? Will the world at large approve that?

What I'm asking is deeper than the topic of this thread.

Japan and Britain does sane too

I believe the ECB has also tried the QE experiment before

So any country can ATTEMPT

But when the consequences come
You go use your head carry am

That's just the logic

If Nigeria wants to do same
Nobody will hold you
Afterall Zimbabwe did it fir more than 11 years

But anything that comes AFTER that
You are on your own