pocohantas:


Peeress should be in a better position to explain. He is an ED.

Cc: Peeress, please help us out here.

No, Tinubu can’t be right. A consumer country like Nigeria shouldn’t be going about printing money. There are no goods/services to mop up the cash. We would only end up with hyperinflation.

Exactly my thoughts

Wasky101:

Don't mind them, someone that sells shoes in onitsha suddenly knows more than an accountant that has worked with multinational firms.
I just laugh at all this guys

Some of us here are just as educated

Just know that

The only thing at this point Tinubu has over me is his vast experience based on the fact he is far older than I am

But apart from that

We are slightly evenly matched education wise
Just saying

4Play:


It's funny how people who accuse others of being badly educated are themselves badly educated. Yours is a prime example of the saying that a little bit of knowledge is a dangerous thing.

You have managed to attain some vague familiarity with the policy of quantitative easing (QE) but clearly have no idea of conditions under which it is feasible. QE helps in economies facing low inflation (almost in deflation territory) and negative interest rates. To avoid a deflationary spiral, central banks do QE to keep inflation from going into deflation.

Nigeria and most African/developing countries have a different problem - stagflation. This is where inflation increases as the economy goes into recession so printing more money turns you into Venezuela or Zimbabwe pretty fast.

Tell em o

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.

USA don't actually print money indiscriminately. Forget the alarmist. Every economy is guided by the same principles. Although there are some things they do and get away with, that does not mean that they can just do anyhow. Every economy is vulnerable irrespective of how strong it looks. So countries are forced to abide by basic economic principles. Don't just believe everything some media are shunning out.

To add more. You know about inflation and deflation? As long as dollar remains global currency, USA will keep printing money more than any other country for a reason.

neoclassical:
If truly he is an Accountant as you posited, but committed this kind of economic blunder, then his certificate is questionable. I am a trained Economist with years of teaching experience at Undergraduate and Postgraduate levels. If my student gives me this kind of advice in Class, I will be worried so to speak. As an Accountant, he ought to have factored in some macroeconomic variables that can trigger inflationary pressures both in the short run and long run, owing to low level of productivity at the moment, resulting in sharp increase in demand over supply, holding other factors constant. The penacea to this economic debacle and Quagmire is to raise productivity of household goods and break the chain of distribution - from producers directly to consumers, in order to avoid hoarding and price hike.

Pls educate him

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
2, Print more bills.. Thereby flooding the market with more credit
3, reducing Taxes...

Please let us ask questions before we talk

Number one and three is more like it

As for number 2

Na beg I dey beg una

DexterousOne:


Do you even understand how money is "Printed?"

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

The USA backs its currency against the value of gold it holds, yet the value of gold has plummeted in recent months, so against what is new currency being printed?

Even if bonds are being sold, the bonds are still limited to available currency. So against what is the US minting more currency,

Excuzeme:
At the end of the day, l think the CBN would be able to strike a balance between stemming inflation that could arise from the printing of more cash, when it is not balanced by accompnaying increase in production in the short term, and the need to keep the value of the Niara at a good rate, vis-a-vis its value in relation to other international currencies.

But it is still curious and worthy of investigation, the reckless abandon with which America prints paper Dollars, knowing that it is being used as an echange of wealth by other countries!

Imagine if Dangotte produces 100Mbags of Cement and export it to America.
Instead of getting really value for that "effort that creates wealth", America simply goes to its Printer and Prints out $2Billion and hands it over to Dangotte, while it collects the Cement!

Now, think of these on a world scale and you will see how America "lives-off" other countries of the world and why they are willing to do anything, including unleashing Corona Virus on China or any Challenger (Russia, Germany, etc), to preserve this exploitative Economic World order.

If you notice, America does nto worry about how much it spends or how such will negatively affect its economy ...because it knows that as long as other countries still EXCHANGE the Dollar for the WEALTH, they will absorb the inflation and cost.

Nuff said, am out of here. Weldone Guys

I see

But if you really look at it


America creates a lot of wealth too
They have thousands and thousands of companies both at home and abroad that creates value to which can be exchanged for dollars too.

So if they spring USD and give u

You can use that same USD to pay for oil, or even lay claims to US assets.

So it is not a total write off

Why corona Neva locate this criminal?

DexterousOne:


Some of us here are just as educated

Just know that

The only thing at this point Tinubu has over me is his vast experience based on the fact he is far older than I am

But apart from that

We are slightly evenly matched education wise
Just saying

Then I doubt it was you that typed the comment I replied to if you claim to be that educated.

Wasky101:

Then I doubt it was you that typed the comment I replied to if you claim to be that educated.

This is the first time you aee quoting me
So you are right

A lot of emotionally charged comments here largely fueled by their hatred the man. Yet only few based on logic

Not also a fan of him, but he made some sense.

All those harping inflation seem to forget we are in unusual times, and if care not taken, the economy will grind to a halt.


Many states have shut down, and more will follow.

And mind you, but this is a shut down that could last well into May. So what happens to the average businessman?

Eg, Emeka the spare parts dealer will have a shop filled with goods, but no money (cash) due to zero patronage as a result of closure. So not only is he not making money, he's also not SPENDING MONEY. Question is, how do QUICKLY get money into Emekas hand so that he can have money to spend??

Niggmatic:


USA don't actually print money indiscriminately. Forget the alarmist. Every economy is guided by the same principles. Although there are some things they do and get away with, that does not mean that they can just do anyhow. Every economy is vulnerable irrespective of how strong it looks. So countries are forced to abide by basic economic principles. Don't just believe everything some media are shunning out.

To add more. You know about inflation and deflation? As long as dollar remains global currency, USA will keep printing money more than any other country for a reason.

Thanks for your comment but should the US print a dollar note at all without the necessary approval. Yes they create wealth but still create artificial wealth by printing money. I'm not an economist but this doesn't make sense to me.

Print more of naira will devalue the currency

History might repeat itself, the story of the Great Depression of 1930s, HYPERINFLATION.

BTW, the US Dollars is the World's Reserve Currency

ijustdey:


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

imagine who is aspiring to become president.is this the kind of mentality you will use in leading us?.

Excuzeme:




I feel you!
America was SUPPOSED to be regulated in its printing of Dollar Notes, for the rest of the world to keep using that currency for international trade but what we have now is a careless fiat and abuse of that agreement.

If you look at the value of Dollars today, it has gone up steeply in the last two days because the Dollar as a store of wealth, is loosing value due to this arbitrary printing fo Dollars

US treasury was supposed to be backed up by Raw Gold. Whatever amount of money you have, you must back it up by Gold.
America changed that and said you can use a "devalued", low quality (in terms of Gold content) Gold Bars.
:ater they even went further and decided to start issuing "Paper Gold"!
other Countries keep their Gold in the US Gold Reserve and America issues them with "paper" Gold in return

Honestly, the only way to stop American adventurism, stop the wars and stop American belligerence and "attempt" at exceptionalsim, is to abandon the Dollar for another currency (Yuan was angling for this but it is still a long way off) or a neutral currency backed by Gold.

America stole all the Gold in iraq and Libya for a reason.

1971: President Nixon took the USA off the Gold standard

MT:


Thanks for your comment but should the US print a dollar note at all without the necessary approval. Yes they create wealth but still create artificial wealth by printing money. I'm not an economist but this doesn't make sense to me.

The truth is that USA did not force anyone to use her currency. Dollar is not a currency that requires permission of other countries before it can be printed. It US currency and it it's subject to whatever Federal Reserve want it to be subjected to. It's their property and rightly so.

Of course, it is to their advantage that the entire world is using their currency. But it doesn't mean that they are creating artificial wealth. No country would dare throw away economic principles and laws without facing the consequences sooner or later.

Niggmatic:


The truth is that USA did not force anyone to use her currency. Dollar is not a currency that requires permission of other countries before it can be printed. It US currency and it it's subject to whatever Federal Reserve want it to be subjected to. It's their property and rightly so.

Of course, it is to their advantage that the entire world is using their currency. But it doesn't mean that they are creating artificial wealth. No country would dare throw away economic principles and laws without facing the consequences sooner or later.

Thank you. I love the statement that "it is to their advantage that world is using dollar as a world reserve". I found your submission helpful and conclusive. I learnt a lot from this thread. @Excuzeme, thanks too.

MT:


Thank you. I love the statement that "it is to their advantage that world is using dollar as a world reserve". I found your submission helpful and conclusive. I learnt a lot from this thread. @Excuzeme, thanks too.

You are welcome

adoboy04:
I don't understand we Nigerians, the man is giving his own advice and opinion. don't forget he sighted reason why Americans have to print more dollars and he said they Americans have the right to print more of it because is their right and we Nigerians have the right too. now, you people start to call him names, if there is going to be lock down for two years? do you think tinubu is going to lack? me! I don't have more than #3000 in my in and out and I have family.

please stop
Comparing America to Nigeria

bigpicture001:


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

We pay them to print our currencies, because our bleeped up government dont have the equipments/materials to create it, printing money is not rocket science, i know we pay to print from other nations, you can refer to my first post...

aragonchuks:
please stop
Comparing America to Nigeria

You have a slave mentality.

Niggmatic:


The truth is that USA did not force anyone to use her currency. Dollar is not a currency that requires permission of other countries before it can be printed. It US currency and it it's subject to whatever Federal Reserve want it to be subjected to. It's their property and rightly so.

Of course, it is to their advantage that the entire world is using their currency. But it doesn't mean that they are creating artificial wealth. No country would dare throw away economic principles and laws without facing the consequences sooner or later.

Say what you know, US government prints currency anyhow and whenever they want, they impose these policies on us via IMF, and WTO...yes the dollar was imposed on us as the benchmark currency for international trade....after the second world war, there was a new world order, read history, they imposed these policies...trade liberalisation, globalisation etc cos they already have the advantage...ask yourself, why we never get interest for our foreign reserve stashed with the IMF/World bank owned by America. The West sees us as food, you zombies need to smell the coffee.

Sammez94:
Print more of naira will devalue the currency

History might repeat itself, the story of the Great Depression of 1930s, HYPERINFLATION.

BTW, the US Dollars is the World's Reserve Currency

The dollar being the worlds reserve currency is to America's advantage, this was imposed on us.

What an educative thread

dederocs:

We pay them to print our currencies, because our bleeped up government dont have the equipments/materials to create it, printing money is not rocket science, i know we pay to print from other nations, you can refer to my first post...

No... We print our monies here in Naija...so ludo fixed it wen he was governor...

But all foreign money is bought in exchange for ur oil, cashew, groundnut, finished product, services....thats what I mean when I say money is bought

Oshigun:


Tinubu is suggesting that this is a legitimate option. World class economists happen to agree with him and not you isale Eko experts. Are you talking of inflation when we are discussing a pandemic that could render money worthless and people scavenging in the streets for food if the worst happens?

When all is lost, printing money is an option because it directly puts money, as legal tender , in the hands of people to acquire what they need urgently.

At that stage, protecting the value of money is pointless because if people do not get it to spend then they would simple get into beast mode and take to the streets to violently and forcefully commandeer what they need.

Let us see what will happen if area boys have no food and no money to buy their way out of hunger. We will see what your focus on inflation will be worth then.

^^^^

How high minded and noble.

The real you is on this thread: https://www.nairaland.com/5762680/afenifere-printing-more-naira-notes

bigpicture001:


No... We print our monies here in Naija...so ludo fixed it wen he was governor...

But all foreign money is bought in exchange for ur oil, cashew, groundnut, finished product, services....thats what I mean when I say money is bought

We are talking of Naira here, for domestic economic stimulus not dollars...

dederocs:

We are talking of Naira here, for domestic economic stimulus not dollars...

For domestic economic stimulus govt can give her citizens grants like social benefit for staying home...nd the money will still not be printed...it will b gotte. From our foreign reserve holders: swiss banks...they are still open never closed....

D the naira equivalent printed nd substituted

donbachi:
Add ur name here..na men like u.

You didn't add toying abraham too?

Lol, the kind of leaders we have

dederocs:

You have a slave mentality.

lol coming from someone who haven’t left Nigeria in his life