CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

If you print more money, the value at the international market is devalued. Investors lose confidence. Think about it, you’re devaluing their investments compared to their other investments in other countries.

With a devalued currency, imports cost more.

It's best to print money or devalue your currency when you export more than you import, like China

Maxxim:

I don't think that's what he meant, he never meant each individual should print but the arms of government that execute the printing

It still applies.
Let's say CBN is incharge of printing.

If Tinubu wants to buy 100 helicopters from the U.S, he will just call the CBN governor to PRINT 100 quadrilion naira
If Tinubu wants to give everyone 100k naira he will just call CBN governor to PRINT it and send 100k to everyone in Nigeria and it will help tackle the "hunger in the land" crisis.
Its called-money printer go brrr...- that is what Idi Amin Dada was doing until one day his CBN GOVERNOR TOLD HIM that
"sir, Ugandan shillings is now toilet paper money "
I think idi Amin got angry and killed his CBN governor..

America dey print money send to Ukraine and other countries as donations

Paraman:
I doubt the new minimum wage will be up to 70k sef because of inflation

There will be no minimum wage increase.
Imagine a cleaner now receiving 70k.

That means naira is gradually becoming worthless.
70k used to be a huge amount.

Birdbyrde440:


There will be no minimum wage increase.
Imagine a cleaner now receiving 70k.

That means naira is gradually becoming worthless.
70k used to be a huge amount.

Even Tinubu himself said minimum wage will be increase but you feel it won't be increased

CodeTemplar:
Ever wondered why that is?

Some choose to print at some point or borrow at other point in time. So why do they borrow what they can print locally?

One of the qualities of money is scarcity. The moment it is in abundance and everyone can access it in a unreserved manner it makes worthless.
Even as dumb as this APC government, they understand this

They borrow so that you will not buy a sachet of pure water for #2k. One of the features of money is SCARCITY.

Paraman:
Even Tinubu himself said minimum wage will be increase but you feel it won't be increased

If you believe what politicians tell you, you might die untimely.
Don't listen to what they say, watch what they do. Action speaks louder.

Because money is just a paper with ink without services.

That will only lead to inflation.

Imagine if everyone is getting 1million every month without working? The 1 million will be useless because you have nothing you can buy with it. Because no one is working and just getting paid for doing nothing.


The only country that can do this successfully is America. And that's because the rest of the world is working to feed America.
What America did is have their money as standard for services so they don't really have work for money anymore like the rest of us.
It used to be gold, now it's dollars.

You work, export your work for a worthless paper printed in America because if you want to buy something in a other country that don't even spend dollars, you still have to pay in dollars.

Birdbyrde440:


If you believe what politicians tell you, you might die untimely.
Don't listen to what they say, watch what they do. Action speaks louder.

April is a few week away sha

https://www.thecable.ng/newspaper-headlines-new-minimum-wage-regime-to-begin-april-2024-says-fg/amp

eepeepook:
Why the hell do children on Nairaland keep asking this ignorant ass question?! All you have to do is read old posts for clarification. Surely, this place is littered with SS1 boys. JSS2, sef.

Lol you would be surprised that many of them have 1st class degree or 2.1.
That's why Bill Gates wants to reduce the world population to 500m because there are soooooo many useless eaters.

Paraman:
April is a few week away sha

https://www.thecable.ng/newspaper-headlines-new-minimum-wage-regime-to-begin-april-2024-says-fg/amp

Kai Wlhi I weep for you.
You are there hoping... omg may God help you

YoungBlackRico:
Ask Zimbabwe

We are not under strict sanction by the US and EU like Zimbabwe was

Birdbyrde440:


Kai Wlhi I weep for you.
You are there hoping... omg may God help you

Till April.

Sapeleboy911:
They borrow so that you will not buy a sachet of pure water for #2k. One of the features of money is SCARCITY.

Deogratiasfx:


One of the qualities of money is scarcity. The moment it is in abundance and everyone can access it in a unreserved manner it makes worthless.
Even as dumb as this APC government, they understand this

I wouldn't use the word scarcity.
I prefer "optimality" or "moderateness".

Money is just medium. So many roads can't solve the problem of housing deficit. Money is the road connect locations like industries, schools, houses(service and products).

alphaNomega:
Because they are not USA. That is the only country that can get away with pronting unlimited amount of money with minimal consequence to their economy but maximum damage to every one else

Why do you say so? Do USA produce everything that they use and consume?

Kaycee9242:


Why do you say so? Do USA produce everything that they use and consume?

Actually, alphaNomega is technically correct.

The USA can print money (and has actually done so) with minimal to zero inflationary damage to their economy.

The question then is WHY?

The reason is simple: The US dollar has been internationalized as a medium of exchange.

Just think about all the millions of Africans, Asians, Europeans etc who are saving, investing and even spending US dollars - without having ever stepped on USA soil.

In essence, the inflationary consequences of the USA printing money are exported to other countries!

NaijaphiliaBlog:


Actually, alphaNomega is technically correct.

The USA can print money (and has actually done so) with minimal to zero inflationary damage to their economy.

The question then is WHY?

The reason is simple: The US dollar has been internationalized as a medium of exchange.

Just think about all the millions of Africans, Asians, Europeans etc who are saving, investing and even spending US dollars - without having ever stepped on USA soil.

In essence, the inflationary consequences of the USA printing money are exported to other countries!

Yea yea you are very correct

NaijaphiliaBlog:


Actually, alphaNomega is technically correct.

The USA can print money (and has actually done so) with minimal to zero inflationary damage to their economy.

The question then is WHY?

The reason is simple: The US dollar has been internationalized as a medium of exchange.

Just think about all the millions of Africans, Asians, Europeans etc who are saving, investing and even spending US dollars - without having ever stepped on USA soil.

In essence, the inflationary consequences of the USA printing money are exported to other countries!

well done sir

NaijaphiliaBlog:


Actually, alphaNomega is technically correct.

The USA can print money (and has actually done so) with minimal to zero inflationary damage to their economy.

The question then is WHY?

The reason is simple: The US dollar has been internationalized as a medium of exchange.

Just think about all the millions of Africans, Asians, Europeans etc who are saving, investing and even spending US dollars - without having ever stepped on USA soil.

In essence, the inflationary consequences of the USA printing money are exported to other countries!

add to that the fact they print and use to pay producers of real goods and not salaries of idlers in govt parastatals like ours.
That's means increase in goods the money will be buying as It circulates slowly out of the hands of the first earners.
In our case, one big man will sit on it and take half to forex market, thereby weakening local currency.

CodeTemplar:

add to that the fact they print and use to pay producers of real goods and not salaries of idlers in govt parastatals like ours.
That's means increase in goods the money will be buying as It circulates slowly out of the hands of the first earners.
In our case, one big man will sit on it and take half to forex market, thereby weakening local currency.

well you're on to something here, the Nigerian economy is already at a disadvantage with this current setup, our political leadership makes it even worse.