₦airaland Forum

"N86,935,680" hang-bag

where is her black crocodile skin Hermes Birkin handbag? how can you travel to US with a hang-bag that worth "N86,935,680" to solicit for help. Just imagining

If I call Islam you say -- Terrorism
Islam ---------------------

camouflage arrest, next tomorrow, Emir Sanusi will order for their release. Terrorist Religion

One Nigeria my foot. Islam is a terrorist religion

The answer is Inflation.
You see, the currency notes that we use do not have any intrinsic value. They only have exchange value. That means a N10 note does not actually mean its value is N10 but it means you can exchange it for goods/services worth N1. That's why its called a legal tender (means you are authorized by law to use it for exchange).

How does the currency system work?
Consider a hypothetical country with no foreign transactions for the time being. Assume there are just 10 people in it and each have N10 each. There are various goods that are produced in this country by these people. But whatever be the value of resources/costs incurred by them, these goods can be exchanged for just the 10, N10 notes present in the currency system. That means the sum of value all the goods and services produced in an economy is equal to the 10, 10 notes.

Therefore, sum of value all goods and services produced and exchanged = sum of all the currency present;

Now, the central bank is unhappy that the people just have N100 worth of money and decided to give each person an additional N10. That means there are 20, N10 notes in the system. But the goods and services that are produced do not change. Alas, the additional N100 that was supplied could not buy any more goods than the ones already present. So the exchange value of each good/service increases. Thus, applying the above formula, the goods and services produced in the second scenario will now be exchanged for 20, N10 notes reducing the buying power of each N10 note.

This my friend is called inflation and no country likes it. Almost every country knows it. Well some don't, countries like Zimbabwe which printed a whole lot of notes thinking that people will have more money. What in turn happened was even a single egg ended up costing thousands of Zimbabwean dollars. There was an inflation of 70 billion percent and even then the central bank kept printing 100 billion dollar notes (did they think everybody will become a billionaire lol?)

BUSHHUNTER:
I have always been wondering where he gets his money from? Fuvk! Using public funds to finance your shitty home. . .no wonder e go marry omo a je okuta mamu omi. . . .

Oniranu afi ki o gbe awon omo olorigidigbo yen!

awa omo oduduwa ko e!

keep wondering

I love this man, very proactive

Always making sense even in detention