After printing the money what next

MT:


But the US depend heavily on China which was what led to the trade war. There was clearly trade imbalance which ran into billion of dollars with the US clearly disadvantaged. I don't think no nation can be self sufficient. My question is has the whole world accepted US to print more currencies to settle their international trade simply because they own the dollars?. If you can point me to a resource to read on this, I will not mind. Thanks

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.

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.

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

and he want more naira note to be printed

MT:


But the US depend heavily on China which was what led to the trade war. There was clearly trade imbalance which ran into billion of dollars with the US clearly disadvantaged. I don't think no nation can be self sufficient. My question is has the whole world accepted US to print more currencies to settle their international trade simply because they own the dollars?. If you can point me to a resource to read on this, I will not mind. Thanks

in what does us depend on us depend on China? The answer is simple, its easier and cheaper to manufacture goods in china than to manufacture them in the united states. That is why many companies owned by the united States carry out their manufacturing in China eg apple phone.

My arguement is still the fact that the united states are at the fore front of technology and innovation and can therefore afford to print money without much effect on their economy.

If we print more naira notes,what will it buy ? The 500 naira yam automatically becomes 1000 naira

Ppl are donating and u are here asking govt to print more money. What are u gonna do with all u have already acquired

able20:
We don't need to print more Naira Mr Accountant Jagaban,
If All the politicians in Nigeria, including Tinubu can donate 2 Bullion vans of cash Full of Euros, Dollars and Pounds, the Dollars will fall to 150 to the naira even with global recession.

We don't need to be in slaved and borrow from the Europeans, USA & China.

You people keep churning out impracticable suggestions. smh

Printing money is our best bet in this situation, especially since we now produce rice and other consumables.

How can somebody like tinubu be advising the FG, tinubu of all people, baba where is your bullion van, oleeeeee

stanisbaratheon:
From remove VAT to print more naira notes.

Really, eyes have not seen neither have ears heard what Tinubu is capable of doing to this country.

Are you an economic expert? Why is it right for the US and wrong for us?

michoim:
I don't support this

Why not?

That is a very stupid suggestion.

MT:


I tell you I accept your position that when more money chase a product or service, there is inflation. However, US itself is not self sufficient. Production is at an all time low in the US too, reason why Trump wants to open up the economy DESPERATELY. With 2 trillion dollars to cushion the effects of this virus in the US and over 3.5 million people (and still growing) filling for unemployment benefit within a week in the US, we can not say things are okay for the US as the US economy is heading to hit the iceberg. So, considering this scenario, can you as an academia still justifies the position of the US to print more currency and has the world agreed that the US should print more dollars whenever they have issues to bail themselves out and settle all international trades with such an "artifically-produced" dollars?

It does not make economic sense even in the case of US. But remember, in economics, there are variables you have to factor in before drawing your conclusions, though some may be stochastic.
First, US has a higher Special Drawing Right (SDR) from International Monetary Organizations than a less developed nation like Nigeria and therefore can absorb external economic shocks because of its advantage in purchasing power parity. Nigeria's external reserves cannot be compared to that of US which can be used to offset balance of payment disequilibrium.

4Play:


If you are not conversant with a subject matter, it is entirely sensible not to opine on it instead of highlighting that you are an obstinate ignoramus. You don't know about quantitative easing other than hearing about its implementation in developed economies.

There are Americans who worry that QE can cause inflation or hyperinflation but mainstream opinion amongst economists is that it is safe to implement it given deflationary pressures building up in the economy.

Nigeria is not in the same position as the US, the UK or Japan. These countries' 10-year government debt attract interest rates less than 1% per annum. In Japan, Germany and Switzerland for instance, interest rates are negative for 10-year government debt. This means creditors lend money to the government for 10 years and pay the government interest on it! Do you know anyone who would lend Nigeria money on anything close to those terms?

Oh hush.

Nigeria would print money as the rest of the world would.

The USA claims its currency is backed by the value of gold it holds yet the value of gold has plummeted in recent months whilst the US is creating new money.

No matter which way you spin it, the rest of the world would be creating money that never existed.

Nobody argues their economy isn't more advanced than ours, nobody argues that their interest rates even hover just above 0% but to assume that you have monopoly of knowledge on this issue, rather makes you a narcissist.

I reiterate, the CBN would print more currency as a response to the global trend and they would be foolhardy to do otherwise.

Countries shut their borders, you did too.

Countries were unable to trade just as you experienced too.

Countries printed money to boost spending but you stayed put.

Benwallt:
Go to hell. Everything na money. Thunder, stop doing press up and fire directly at this very very poor specimen of a man. Shut his ceespit, e too smell. Blind n crack those flashlights.

lol Funny Nigerians. You want your problems to be solved but reject solutions. You lots are clowns.

Tumbulum:

in what does us depend on us depend on China? The answer is simple, its easier and cheaper to manufacture goods in china than to manufacture them in the united states. That is why many companies owned by the united States carry out their manufacturing in China eg apple phone.

My arguement is still the fact that the united states are at the fore front of technology and innovation and can therefore afford to print money without much effect on their economy.

If we print more naira notes,what will it buy ? The 500 naira yam automatically becomes 1000 naira

You are the expert, I am not. I dont want to accept your argument at face value. Break it down in such a way that anyone can digest the bolded. And regarding the dependency, what you explained still points to the fact that the US depends on China cos when those US companies manufacture in China, they still need to export it to the US which the US will have to pay for!!.

Dangote too de stinger, a whole richest man in Africa 200 million? I know I have no damn to give but this shit ant right.

bosman50:
And this man is the "supposed" next president of Nigeria.
It is well

What is your problem with the idea?!

why is it ok for the USA and bad for 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.

Thank you, this settles most of my concerns. Like I said, I am not an economics expert, I am an IT person but I know what US is doing is not economically acceptable. It is not only the US that has that monopoly, other advanced countries can do it and get away with it but I was wondering why they didnt choose to go in that direction. We cannot continue to stomach anything the US throws at us, they are not always right in MOST things, though as a country, I always wish them well.

Let's start with the ones in bullion van

Thief see em eye like print naira. Looking for more money to steal

Lotechi:
this is not a foolish idea. The U.S has signed a 2trillion$ stimulus package. In a normal time it would be considered stupid, but this is war

Indeed and I laugh at the hate-fueled ignorance of some here. Nigeria, with its huge number of unemployed, was already in big trouble. Added to that is the gigantic problem of many newly redundant workers and breadwinners who will now not be able to earn any wage as businesses and workplaces are closed to contain a dangerous virus.

We then have an economy that cannot sustain the provisions of the palliative that can make this compulsory sit-at-home lock down a health success. People should just let that hellish scenario marinate in their heads and try to imagine where we would be if this had to go on for months with so many Nigerians already groaning a few days into financially punitive lock down.

No one is saying we must literally print money today but it is an option we must keep on the table and use as soon as required to ensure we still produce legal tender, that automatically facilitates a reward system which directly encourages vital economic production to continue.

People forget that issues like inflation are only a consideration in a stable world where economic breakdown is not simultaneously happening everywhere, to every Country and at the same time!!!!!!

With others facing what we are and unable to help us will inflation be our worry or the need to keep vitally important internal socio-economic activities going?

Precious4real50:
No need to do that because his loots alone can save the economy



I still remain Ada ogwashi

Hello Ada Ogwashi...!

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.

It's quite unfortunate, the pattern of most comments so far. Obviously many people here are not aware of the concept of "lesser evil". Those whose arguments are opposed to printing of money because of inflation can't see the bigger picture.

Trying hard not to use economic terms (which may sound big) and may not allow many people to understand the analysis.

Would you rather let there be an economic depression (collapse) and people/businesses die of hunger trying to avoid inflation or have inflation by printing more money?

Printing of money itself is not a good practice. However it is permissible as a short-term solution to prevent an economic shutdown. While I don't support Tinubu nor like him personally, Total Money Supply in the economy must be increased (stimulus) and one of the ways to do that is to print (amongst other options).

wman:
Olodo.

Tinubu fall my hand for here sha.

You are actually the olodo, sir

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?

That's voodoo economics. All countries' external reserve are in the US dollars. So, they can print more and its inflationary effect will be absorbed by many countries'. That's why Sanusi advocated for us to save 10% of our reserve in Chinese Yuan. But who can trust China?

neoclassical:
It does not make economic sense even in the case of US. But remember, in economics, there are variables you have to factor in before drawing your conclusions, though some may be stochastic.
First, US has a higher Special Drawing Right (SDR) from International Monetary Organizations than a less developed nation like Nigeria and therefore can absorb external economic shocks because of its advantage in purchasing power parity. Nigeria's external reserves cannot be compared to that of US which can be used to offset balance of payment disequilibrium.

This still does not justify WHY the US is allowed (which I doubt anyway) by the whole world to print more dollars as they wish. If there is a way you can explain to someone like me, I will appreciate, even if it involves you stating a scenario.

neoclassical:
Hahaha, did this man go to school at all. What happens to inflation? So elementary economics didn't tell you that when large quantity of money in circulation Chases a few available goods and services in the economy, prices will skyrocket and that will ultimately lead to hyperinflation owing to this present economic situation. Productivity is low at the moment leading to shortages in supply in relation to demand, yet you want to print more money. Voodoo economics.

This is a BIG lie...there is huge deficit in purchasing power. You can print to bridge the gap. It will be professionally done. Most of you just churn out fallacies.

rusher14:


Oh hush.

Nigeria would print money as the rest of the world would.

The USA claims its currency is backed by the value of gold it holds yet the value of gold has plummeted in recent months whilst the US is creating new money.

No matter which way you spin it, the rest of the world would be creating money that never existed.

Nobody argues their economy isn't more advanced than ours, nobody argues that their interest rates even hover just above 0% but to assume that you have monopoly of knowledge on this issue, rather makes you a narcissist.

I reiterate, the CBN would print more currency as a response to the global trend and they would be foolhardy to do otherwise.

Countries shut their borders, you did too.

Countries were unable to trade just as you experienced too.

Countries printed money to boost spending but you stayed put.

Nigeria can do what it wants including adopting ill-thought policies but Nigeria will be poorer for it. And intellectually stunted people like you will be back pondering futilely why Nigeria is not developing and why poverty is endemic.

The CBN, like many African central banks, has a long and futile history of money printing. Some would even argue Emefiele's CBN has been doing this sneakily. Nothing good will come out of it for Nigeria. Never mind the covid-19 epidemic, there is an epidemic of economic illiteracy that has a stranglehold on Nigeria's middle class of which you are a shining example.

MT:


You are the expert, I am not. I dont want to accept your argument at face value. Break it down in such a way that anyone can digest the bolded. And regarding the dependency, what you explained still points to the fact that the US depends on China cos when those US companies manufacture in China, they still need to export it to the US which the US will have to pay for!!.

have you heard of cash repatriation? Apply manufactures and assembles its phone in china,sell to the rest of the world including US and repatriate the cash to the united states.

SaintChukz:


Hello Ada Ogwashi...!

See, there is already an X1 amount nof money in the economy (this icludes Tinubus, Dangotes, Otedolas etc money). ie TMS1, the total money supply needs to move to X2 or TMS2 to have wider impact. The reason why money could be printed.

TSM = Total Money Supply ie the total amount of money in an economy at any particular time.