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The Danger Of Borrowing Unclaimed Dividends / Foreign Loan: Why Can't CBN Print The $5.5bn Instead Of Borrowing? / Nigeria’s CBN Is Printing Money To Keep The Govt Afloat & Alarms Are Ringing. (2) (3) (4)

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Re: . by TheGiftedOne(m): 8:49am On May 04, 2020
The mods haven't deemed it wise and needful yet to push this to FP. If it was snake and some irrelevant nonsense, fiam, gbam FP mtcheeew!

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Re: . by Ekemeze: 8:56am On May 04, 2020
.

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Re: . by Quelme: 8:57am On May 04, 2020
sassysure:
Zimbabwe and Venezuela comes to mind.

In this corona pandemic, USA, UK, I know have printed billions to cushion the effect on their economy.

They are the first world countries. Not all first world countries printed .
But us, being 4th world printing money, we will end up trading by barter again cos we don't even have the economic muscle to control ordinary demand and supply without printing money not to talk of when we print.

The veggies in the market will have more value.

Had the govt not been injecting enough in forex since Mr robot came to power, by now we would have had 700naira to one dollar.
Zimbabwe and Venezuela hyper inflation is as a result of economic sanctions.

2 Likes

Re: . by Quelme: 9:03am On May 04, 2020
Sunshineg5:
Every country in the world is required to hold their reserve in us dollars

The American dollars is the global currency of choice.

You can't compare that to Nigeria.
not all countries hold their reserve currency in dollar. But I think the dollar dominates, about 60% or so.

3 Likes

Re: . by Erosion2020: 9:06am On May 04, 2020
Nice thread.
I'm here to read and learn.

2 Likes

Re: . by mekuso89(m): 9:09am On May 04, 2020
Sunshineg5:
Every country in the world is required to hold their reserve in us dollars

The American dollars is the global currency of choice.

You can't compare that to Nigeria.
kk

1 Like

Re: . by Salvavibe: 9:09am On May 04, 2020
some times its not about the money but for the safety of the economy https://www.nowviba.com/music/pages/well/Its-Not-About-Money-(Original)/Fille-ft-B2k/596

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Re: . by Nobody: 9:13am On May 04, 2020
Quelme:
Zimbabwe and Venezuela hyper inflation is as a result of economic sanctions.
Answer yourself by defining hyperinflation.
Re: . by Quelme: 9:29am On May 04, 2020
sassysure:

Answer yourself by defining hyperinflation.


Please o, I'm not here to argue with anybody. I only pointed out the fact that those countries you mentioned, their economic woes isn't just as a result of bad economic policies. You get my point?

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Re: . by Nobody: 9:41am On May 04, 2020
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Re: . by Nobody: 9:50am On May 04, 2020
FivePeas:
China in the past decade printed lots of money and it didn't go the path of Zimbabwe. A country can print more money or inject more funds into its economy proportionately to its projected estimated economic value. I.e if a country can make one trillion in five years, it can have one trillion printed in the hope that it's economic potential over the time line matches the value of the printed money.
You just described how money is printed globally

2 Likes

Re: . by holocron: 9:57am On May 04, 2020
mrvitalis:

First you need to understand what naira means ....naira is a second level money meaning it is backed by first class money

Here is what I mean 100 naira is a receipt that I have 100 naira worth of dollars lodged with the CBN and can take it anytime

In Nigeria this receipt can serve as money ...but if I want to import u have to change it back to real money then import what you want

When you earn dollars , CBN gives u naira and keeps the dollars ....printing more naira means CBN owing more people

More people would demand dollars , based on the fact no equivalent dollar was earned the price of dollars would raise

The naira I your hands lose value so you lose money ..so printing more money is like robbing you of your hard earned money

Thanks for your sagacious response. Does this not mean that the sovereignty of the country with this secondary money is a sham? From your analysis the countries operating the primary money i.e USD, can as well print as much as they want and purchase goods and services with ordinary paper, or grant loans with huge interest? Yes you can redeem their purchases by your imports, but they can frustrate or control what you want to import. Can u throw more light on this?

5 Likes

Re: . by mrvitalis(m): 10:05am On May 04, 2020
holocron:


Thanks for your sagacious response. Does this not mean that the sovereignty of the country with this secondary money is a sham? From your analysis the countries operating the primary money i.e USD, can as well print as much as they want and purchase goods and services with ordinary paper, or grant loans with huge interest? Yes you can redeem their purchases by your imports, but they can frustrate or control what you want to import. Can u throw more light on this?
Firstly yes it's almost a sham ...but your can make your money first class money buy buying up gold and manufacturing so people would have know option that to buy from you ....at that state you can demand to sale only with your money

If Nigeria was the sole supplier of say oil to the world we can demand oil must be bought with naira ....this would make nations have naira as reserve incase they want to buy oil

We would print the naira but not so much that it becomes valueless ...so we only print based on the demand

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Re: . by holocron: 10:25am On May 04, 2020
mrvitalis:

Dollar is a first class money ... they have a gold reserve backing the dollar .....two the USA manufacturer alot so u just use dollar to buy from them

But here we import alot so we need dollar to trade internationally as no one would accept naira

"No country currently backs its currency with gold, but many have in the past, including the U.S.; for half a century beginning in 1879, Americans could trade in $20.67 for an ounce of gold. The country effectively abandoned the gold standard in 1933, and completely severed the link between the dollar and gold in 1971."
--google

US as the most powerful nation on earth, can print USD at will to stimulate their economy. Weaker countries are not allowed to do that, but US can give you loan at great compound interest out of the USD they just printed.

African countries are still in chains. Independence, sovereignty is a sham. Our leaders are just errand boys of the master.

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Re: . by holocron: 10:35am On May 04, 2020
mrvitalis:

Firstly yes it's almost a sham ...but your can make your money first class money buy buying up gold and manufacturing so people would have know option that to buy from you ....at that state you can demand to sale only with your money

If Nigeria was the sole supplier of say oil to the world we can demand oil must be bought with naira ....this would make nations have naira as reserve incase they want to buy oil

We would print the naira but not so much that it becomes valueless ...so we only print based on the demand

@the bolded, I don't think we can be allowed to have such privilege come what may; if need be, such ambition will be suppressed by physical force ( if regime change through sowing chaos by backing or arming rebels fails). As powerful as China is, they have not been able to enforce international transactions with their own currency.

Only armed Might, preferably nuclear arms, can enforce and make naira convertible.

1 Like

Re: . by mrvitalis(m): 10:55am On May 04, 2020
holocron:


@the bolded, I don't think we can be allowed to have such privilege come what may; if need be, such ambition will be suppressed by physical force ( if regime change through sowing chaos by backing or arming rebels fails). As powerful as China is, they have not been able to enforce international transactions with their own currency.

Only armed Might, preferably nuclear arms, can enforce and make naira convertible.
I was given a simplified explanation an ideal case

1 Like

Re: . by mrvitalis(m): 10:58am On May 04, 2020
holocron:


"No country currently backs its currency with gold, but many have in the past, including the U.S.; for half a century beginning in 1879, Americans could trade in $20.67 for an ounce of gold. The country effectively abandoned the gold standard in 1933, and completely severed the link between the dollar and gold in 1971."
--google

US as the most powerful nation on earth, can print USD at will to stimulate their economy. Weaker countries are not allowed to do that, but US can give you loan at great compound interest out of the USD they just printed.

African countries are still in chains. Independence, sovereignty is a sham. Our leaders are just errand boys of the master.
The USA can only print based on the demand for dollar ...if u print more than the demand it would become valueless over time ...

The USA is backed by the demand for dollar I was trying to explain to someone who is not familiar with Marco economics ...the gold standard is the easiest to explain

2 Likes

Re: . by holocron: 11:07am On May 04, 2020
mrvitalis:

I was given a simplified explanation an ideal case

Noted

1 Like

Re: . by holocron: 11:16am On May 04, 2020
mrvitalis:

The USA can only print based on the demand for dollar ...if u print more than the demand it would become valueless over time ...

The USA is backed by the demand for dollar I was trying to explain to someone who is not familiar with Marco economics ...the gold standard is the easiest to explain

...and can it create this demand...for instance, pressuring countries to accept loans through the international agencies, using AID programs to sabotage the economic production of weaker nations and conditioning the countries to be reliant on American imports, formenting wars here and there in order to sell arms and create a need for massive rebuilding (requiring imports) after the wars (fact: since the creation of the USA in 1776 no 5 years can pass by without the US being involved in a war, battle, or military conflict, many times several at the same time. They end one just to start another almost immediately without end)

1 Like

Re: . by Blazebond(m): 11:25am On May 04, 2020
Most of the replies here about inflation ain't really right,world economics is ruining africa,China printed money,they are still printing money till today,infact China have refused to allow the yuan to rise to its real value (the Chinese yuan real value is as high as the u.s.a dollar currently)China is doin all these because they want their goods to be affordable around the world and that automatically makes goods of Europeans and Americans more expensive around the globe,Nigeria can print more naira to stabilize in critical times like these,we can print more money so as to boost our economy and enable the industrialization that we all yearn about,industrialization on a massive scale is the only way Nigeria can meet her dreams of exportation,you borrow a bit and you print a bit,the world ain't waiting for anybody,this wild goose dream of a dollar to match a naira that most of us yearn for is childish and stupid,the real secret is to toe the path of the crafty Chinese,allow your naira to trade at 100 to a dollar,but produce goods and provide services that will match the best of the best worldwide and see people flock to your goods and services,because yours would definitely be cheaper cause of your low cost of production,same quality but cheaper in prices,China is doing it is goods today and it is paying off for them,how did they start?they started by printing more of their currency in other to boost industrialization in their country.

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Re: . by mrvitalis(m): 11:28am On May 04, 2020
holocron:


...and can it create this demand...for instance, pressuring countries to accept loans through the international agencies, using AID programs to sabotage the economic production of weaker nations and conditioning the countries to be reliant on American imports, formenting wars here and there in order to sell arms and create a need for massive rebuilding (requiring imports) after the wars (fact: since the creation of the USA in 1776 no 5 years can pass by without the US being involved in a war, battle, or military conflict, many times several at the same time. They end one just to start another almost immediately without end)
Now u get the idea

1 Like

Re: . by FivePeas: 11:31am On May 04, 2020
Like the person above me said many comments here are right but flawed. A nation cam print it's money commemorate with its " achievable potential capability " China before it assumed it's current status, kept printing money in extremely high levels boosting it's local capacity, and then tweaked it's international books to get dollars to back it up.


The people handling our economies are not entirely genius. The presidency has to work with the finance ministry CBN and Co to make blueprints and set objectives if similar feats is to be done. But then the continuous beaurecratic disunity within institutions will always keep Nigeria and Africa at best, average


CC Blazebond

1 Like

Re: . by Nobody: 12:12pm On May 04, 2020
bigerboy200:
I really wish you can further break it down for “economics ignorant” people like us. Where is the US getting the billions of dollars continuously released as economic stimulus? Is it the savings they made over the years, or they are printing dollars? I really wish to understand. Thanks.


Savings.

1 Like

Re: . by ubcandid(m): 1:31pm On May 04, 2020
China and North Korea have been printing counterfeit (because it's not printed by those authorised. But genuine quality) US Dollars in excess volume.
If we go by most statements here, the US economy would have packed up by now.
Balancing National economy entails more than currency in circulation and monetary policies.

1 Like

Re: . by Oghenerobo2002(m): 1:32pm On May 04, 2020
It will be a nice idea ONLY if we are no associating or buying from other countries
Re: . by KayCee92(m): 1:33pm On May 04, 2020
Mathscum:

This is the funniest thing I have heard this year


Now tells us, as an economist, why does this sound funny. We all here to learn. Am waiting grin
Re: . by Nobody: 1:45pm On May 04, 2020
Ekemeze:
You are very free to mock me, but I do not care. I just want to know because the issue doesn't make any common sense atall.

We have CBN to start with, why can't they get a money printing machine and produce money locally and give to the FG? O.o Instead of going out to borrow unbelievable amounts from China always?


Your economics teacher in highschool deserves to be flogged.
grin
Re: . by Saintinoo(m): 2:14pm On May 04, 2020
FivePeas:
China in the past decade printed lots of money and it didn't go the path of Zimbabwe. A country can print more money or inject more funds into its economy proportionately to its projected estimated economic value. I.e if a country can make one trillion in five years, it can have one trillion printed in the hope that it's economic potential over the time line matches the value of the printed money.
You will make a bad economist... You said a country can print more money in anticipation of projected economic value? No way, you can only print more money when there is an increase in your gold reserve. Or when their is an acute shortage of your currency in circulation.
Re: . by engrchykae(m): 2:17pm On May 04, 2020
mrvitalis:

First you need to understand what naira means ....naira is a second level money meaning it is backed by first class money

Here is what I mean 100 naira is a receipt that I have 100 naira worth of dollars lodged with the CBN and can take it anytime

In Nigeria this receipt can serve as money ...but if I want to import u have to change it back to real money then import what you want

When you earn dollars , CBN gives u naira and keeps the dollars ....printing more naira means CBN owing more people

More people would demand dollars , based on the fact no equivalent dollar was earned the price of dollars would raise

The naira I your hands lose value so you lose money ..so printing more money is like robbing you of your hard earned money
who the hell made dollar a yardstick for world currency?
Isn't it annoying?
It means Africa must start continental economic co operation first.
When we became strong in terms of a strong market with one regional currency,we can now negotiate a better value for our currency and more importantly we have to abolish this nonsense Anglo phone and francophone nonsense of classifying Africa.
In fact the youths have to be mad in order to change this silly system that only serve the West.
Re: . by FivePeas: 2:22pm On May 04, 2020
Saintinoo:

You will make a bad economist... You said a country can print more money in anticipation of projected economic value? No way, you can only print more money when there is an increase in your gold reserve. Or when their is an acute shortage of your currency in circulation.



Before you try to act God on me go read up on China on its ascendancy path to second global financial power, when you find the truth yourself, your ignorance will have been cured



And before you mumble up grammar to try to look intelligent, please remind yourself what the underlying principle of cash flow loans is about



Good day
Re: . by engrchykae(m): 2:23pm On May 04, 2020
Ekemeze:


Wheel barrow? hahaha.

yeah. I know what happened in Zimbabwe but I'm pretty sure there are many other MAJOR factors that caused the hyper inflation in that country.
it was the West controlled imf that wanted to punish Mugabe for daring to take away the farms from the colonialists.
It was to serve as a deterrent to future occurrences.
So whenever any African leader wants to be Patriotic, opposition will remind you of Zimbabwe,if you want to be independent as against the colonial interests during the Berlin conference,they will remind you of biafra,if you want to remove the house niggas of the colonial master,they will remind you of Congo.
Re: . by Saintinoo(m): 2:27pm On May 04, 2020
FivePeas:




Before you try to act God on me go read up on China on its ascendancy path to second global financial power, when you find the truth yourself, your ignorance will have been cured



And before you mumble up grammar to try to look intelligent, please remind yourself what the underlying principle of cash flow loans is about



Good day
No one is acting God.... If China printed more currency, it is either their gold reserve is enough to contain the increase in currency or because they are an exporting country, just like US who can print money without it affecting their economy... You have to be well grounded on INFLATION first then you will understand this better.

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