"All money is a matter of belief" Adam Smith.
A rudimentary knowledge of economics should be a necessity. Tinubu is an accountant, that is why am finding this statement of Nigeria printing more banknotes very worrying. Who will stand up and be counted in Nigeria? sooner or later any Nigerian leader will disappoint you. Tinubu can easily become the president of this country, or be a close adviser of the next president, if this is how he is going to run the economy then it is finish.
No country have got away from just printing currency without creating value. Zimbabwe is a current example. Just as Adam Smith said the value of paper money is the belief the people have on it. If the FG start printing money to meet current expenditure there will be hyper inflation on goods and services - I learnt about this in JSS.
The idea that the US is printing money to simulate their economy is so insidious, that it does not even provoke laughter. Currently the US public debt is $22 trillion, why have they not print enough money to payoff that debt?
Tinubu is a member of this government, if they want to help or simulate the economy then, they should earn dollars, not buy dollars - produce produce produce. imagine if a company in Nigeria can mass produce ventilators at this time, the UK and US will be braking down the door to buy every unit, there by earning dollars, that is how countries grow their economy - South Korea a recent example.
All in all a leader should seek advice before making pronouncement that will affect the economy.

That's typical Nigerian politician thinking for you

E no make any change.

You think your country has leaders?

Being an accountant doesn't make him an Economist. There is always an accountant's view in monetary economics, which is distinct from an Economist view point. He spoke like an accountant.
Most accountants believe in expansionary economic policies, even in the midst of inflationary pressures.
An Economist will factor in so many variables before drawing such conclusion. He failed to take note the fact US and other developed countries that resorted to stimulate their economies via printing of more currencies are productive nations, unlike Nigeria that is dependent on imports and consumption.
Printing extra money without correspondent increase in productivity, amidst this lock down in the country will trigger hyper and stagflation.
This is an Economist point of view.

Even his suggestion on Vat removal at this time was another flop. Was he really being serious or was just being deceptive as usual?

Except he is aware of some reserves we have that the govt isn't telling us about.

Izigha:
"All money is a matter of belief" Adam Smith.
A rudimentary knowledge of economics should be a necessity. Tinubu is an accountant, that is why am finding this statement of Nigeria printing more banknotes very worrying. Who will stand up and be counted in Nigeria? sooner or later any Nigerian leader will disappoint you. Tinubu can easily become the president of this country, or be a close adviser of the next president, if this is how he is going to run the economy then it is finish.
No country have got away from just printing currency without creating value. Zimbabwe is a current example. Just as Adam Smith said the value of paper money is the belief the people have on it. If the FG start printing money to meet current expenditure there will be hyper inflation on goods and services - I learnt about this in JSS.
The idea that the US is printing money to simulate their economy is so insidious, that it does not even provoke laughter. Currently the US public debt is $22 trillion, why have they not print enough money to payoff that debt?
Tinubu is a member of this government, if they want to help or simulate the economy then, they should earn dollars, not buy dollars - produce produce produce. imagine if a company in Nigeria can mass produce ventilators at this time, the UK and US will be braking down the door to buy every unit, there by earning dollars, that is how countries grow their economy - South Korea a recent example.
All in all a leader should seek advice before making pronouncement that will affect the economy.

You are right.....but desperate times call for desperate measures ......the stimulus package that America is offering its citizens most of it will have to be newly printed out with corrections made later and currently their cbn interest rates have hit zero with Nigeria heading in the same direction. A lot of government funds and earnings isn't in actuall cash...most are just numbers on a screen somewhere.

There was a country when leaders think right ... but now we only have rulers and polithiefians who are highly self -centered

.
The OP sure made a good point from the Economist point of view.
It all boils down to fixing our infrastructure to attract more investors and also produce better and cheaper goods. If we are still lagging behind in this aspect, then we are heading the Zimbabwe way.
If wasn't for Nigerians in diaspora remitting about $20bn yearly, the Naira would have been more valueless than it currently is.
Good roads and well electrified industrial areas around the country should be our current priority

leokid866:

You are right.....but desperate times call for desperate measures ......the stimulus package that America is offering its citizens most of it will have to be newly printed out with corrections made later and currently their cbn interest rates have hit zero with Nigeria heading in the same direction. A lot of government funds and earnings isn't in actuall cash...most are just numbers on a screen somewhere.

That is the misconception, its a myth and if repeated by people you think should know like a two time governor of Lagos, a lot of people will start to see it as gospel. please dnt even mention it as an economic student esp. if you are outside Nigeria.
Case in point, now that the US congress have approved the $2 trillion package, the money is not going to come from the Bureau of Engraving and Printing. The Treasury will go into the open market and start issuing TB. (Treasury Bill) its big grammar what they are doing is borrowing money from all over the world - if you (leokid) have $1000 you can spare call a broker where ever you are in this world and buy 10 year or 30 year and the US will be owing you.
so those millionaires from Tokyo, to UAE will buy the TB, and the US debt will rise by $2 trillion. The forum is not conducive to go into details read about it, you will learn a thin or two

Izigha:


That is the misconception, its a myth and if repeated by people you think should know like a two time governor of Lagos, a lot of people will start to see it as gospel. please dnt even mention it as an economic student esp. if you are outside Nigeria.
Case in point, now that the US congress have approved the $2 trillion package, the money is not going to come from the Bureau of Engraving and Printing. The Treasury will go into the open market and start issuing TB. (Treasury Bill) its big grammar what they are doing is borrowing money from all over the world - if you (leokid) have $1000 you can spare call a broker where ever you are in this world and buy 10 year or 30 year and the US will be owing you.
so those millionaires from Tokyo, to UAE will buy the TB, and the US debt will rise by $2 trillion. The forum is not conducive to go into details read about it, you will learn a thin or two

Do you think there's actually 2 trillion in cash roaming around the US alone? The tbills they are issuing are going to have to turn to actual cash at some point..it will be surrendered to the cbn to turn into legal tender...or do you think if I buy out of the tbills and pay in Naira it is my naira they will be spending?...Remember how I said numbers on a screen.....at points of low interest rate especially when it hits zero best thing to do is to flood the markets with cash to keep the economy at float...

@ leokid Thats the point. the paper money in circulation in the US now is less than $2 trillion, so what are they printing? the need to print paper money is to meet liquidity not to create value or to make country or individual rich. If the government gives out a stimulus package and the money is not already in the excess crude account like Nigeria, then the money have to be borrowed and it must be in the red column of the balance book.

When a hard drug dealer becomes a national leader.

Ojiofor:
When a hard drug dealer becomes a national leader.

Guy do not kill me with laugh in this lockdown.
You see when you repeat something long enough it can become the truth. I do not think he was actually the dealer, he was probably the money man - moving the money and advising.

Izigha:

Guy do not kill me with laugh in this lockdown.
You see when you repeat something long enough it can become the truth. I do not think he was actually the dealer, he was probably the money man - moving the money and advising.

Lmao .
So he was only employed by drug dealers to launder their illicit ,ill gotten money abi?
He must have been investing heavily in the drug trade before he became their accountant.

So that is the vacous octogenarian warming up to take after Buhari?