₦airaland Forum

FIVE HUNDRED AFRICAN CURRENCY TO ONE IS ILLOGICAL BY GOLD STD

Why would alien countries name present day Ghana Gold Coast, then abandon gold standard to back their promissory notes with mere printed paper? African currencies used to have some value under their rule before Independence. While they gave Independence, they would not relinquish economic independence. They have been able to exchange African resources with printed paper enhancing what Nkrumah titled Neo-colonialism. We have more American $100 bills outside than inside. Aliens never gave up African gold chase, they expand it to other resources.

Are you then surprised that Ghana have to sell its gold mine to aliens in order to gain economic freedom and become rich as western countries? Ghana is just a case in point, it is true for every African country and how their currencies became 500 or 1000 to one foreign currency. Nigeria’s naira used to be one and a half to one American dollar. Liberalized forex has made it worse!

They have been able to convince many African economists as their proponents to preach liberal market that hardly exist in their countries as a way for Africans to be rich or be threatened with the fate of Zimbabwe dollar. In order words, African countries must open markets to dump expensive finished products made from cheap raw materials. The irony is obvious; Africa cannot exchange enough currency or supply sufficient raw materials to buy inflated finished products.

Indeed, there are certain industries that are highly protected in western countries that other companies outside the country cannot buy. When China was allowed into the Rich Club as a trading partner to spite Russia, United States and Europe declared certain companies off limit for sale. Even companies on Bond and Wall streets that are traded daily, have limits and regulations on what can be sold. But African markets must have no limit and left unprotected.

Tsetse fly and malaria had prevented them from invading the rain forest where gold actually came from as they tried to displace the Mossi and Mandinka as middlemen supplier. The British got around that by ship along the coast. Today they resorted to devaluing African currencies to get the same gold, diamond, uranium and other essentials that cheaply subsidize their economy and lifestyle. Mwalimu Nyerere reacted to Pres Reagan when told men should be taught how to fish: how many tons of cocoa do Africans have to work for to buy one tractor in 1960s to 80s?
In spite of the fact that World Bank and International Monetary Fund publicly regretted policy of Structural Adjustment Program in Ghana that devastated and impoverished middleclass, they always find other ways to buy our resources cheap by devaluation. The same way Foreign Portfolio Investors drive African stock markets up and check out. Bitcoin or altcoin is next.

Meanwhile, their markets are heavily guarded and you have to be a member of the rich club to to trade with them. Even within the rich trading club, goods and services are regulated as long as it favors one another. There are always clauses to pull out once it is no longer bearable. United States, the richest debtor in the world has recently threatened to do so with its trading partners. However, African countries must leave their markets wide open for dumping.

They preached liberalized markets to Africans that in most cases only have one or two raw materials to sell. Since they want to buy these raw materials as cheap as possible, they asked each African country to devalue its currency. With a little foreign currency, they could buy the biggest farm cheaply. Usually, if you have junk like China to sell to a trading partner, you can devalue your money so that these countries could buy more of your finished faked products.

So, why cry or condemn devalued currency in China that has cheap labor, plastics and imitated fake finished products to sell but encourage devaluation for Africans with REAL raw materials?

When China penetrated the Rich Club with devalued currency so that Europe and American could buy more of their plastics, steel and other manmade finished products competing with their local companies at home, they cried out against China’s manipulation and devaluation of its currency. Recently, China tightened up when their privileged class started using loopholes and abusing devaluation that reduced its foreign reserve. Point is China can control its currency.

If African countries have manmade materials to sell to the Rich Countries Club like Japan and China, there would be no problem devaluing African currency. But African countries have no trading privileges and the only material they can sell are dictated by the rich countries to their detriment because that policy drains and depletes African gold, diamond, uranium, coffee, cocoa etc. Since Africa have the most arable land, they are buying up the cheap arable land too.

It boils down to predatory mentality of exploiting the ignorant and the poor with colo-mentality that appreciate alien products more. The fact that you have well trained Africans in their most prestigious universities as their proponent preaching liberalized market to African countries but not access to Rich Countries Market, worsen the situation. Prime Minister Indira Gandhi it was, that used to preach that India did not want aid but access to western market to trade.

African countries love foreign educated economists or those specializing in principles of African domination theories preached by their alien mentors. They are showered with appointments and awards in foreign countries as if they have delivered a single economic miracle to a single developing country. The younger generation must ask them what exactly it is these economists have done since independence apart from echoing their masters’ voices.

The glut of steel in the world market is an indication why Ajaokuta Steel never actually took off in Nigeria. Russia was called to help build it after the western capitalist countries procrastinated and eventually refused. All countries are looking for where to dump or sell their steel including Russia that never completed the Steel industry in Nigeria. China has been accused in United States of dumping their cheap steel in their market.
The logical way is to make sure raw materials produced in a country has secondary industry to produce finished products. Since 1957 oil discovery, Nigeria oil industry has not been able to fully develop its secondary industry so that all the oil produced and its byproduct like gas are enhanced to the full maximum potential. Therefore, gas is still flared and wasted since western corporate bodies do not see the benefit of making an African country less dependent on them.

Farouk Martins Aresa

sirusX:
Words to ponder

Ant Financial’s $1.2bn takeover of MoneyGram has drawn fresh criticism from US lawmakers who say the acquisition of the US cash-transfer group by an affiliate of China’s Alibaba, in which Beijing holds an indirect minority stake, poses a national security threat.

Alibaba founder Jack Ma (R) is facing criticism from Capitol Hill for the acquisition of MoneyGram by Ant Financial, an Alibaba subsidiary. )

Ant Financial is facing backlash for its $1.2 billion buyout of MoneyGram as U.S. lawmakers accuse the acquisition of the U.S. cash-transfer group by a subsidiary of China's Alibaba and the Chinese government as a security threat.


In letters addressed to U.S. Treasury Secretary Steve Mnuchin, Republican senators Pat Roberts and Jerry Moran said that Ant Financial's takeover of MoneyGram could hurt America's financial infrastructure.


Mounting opposition in Washington against Chinese acquisitions of U.S. assets puts increasing pressure on Jack Ma, the e-commerce magnate behind Alibaba, who has been positioning himself as a close friend of U.S. President Donald Trump.

Last week, Ma promised to bring a million small U.S. businesses on to Alibaba's platform in an effort to boost U.S. exports to the Chinese market. He has previously pledged to generate 1 million jobs in the U.S., a move hailed by Trump.

Despite Ma's efforts to gain favor in the White House, several U.S. lawmakers across party lines are pushing for an exhaustive review of the deal by the Committee on Foreign Investments in the U.S. (CFIUS).

The committee, led by the U.S. Treasury and has the power to veto deals, is expected to issue a verdict on the transaction by midsummer, according to the Financial Times citing insider sources.

Roberts said that Moneygram's acquisition by Alibaba "should trigger no less concern than if a Chinese company were seeking to take control of a large, well-known bank."

He added that the deal sheds light on the inequity between U.S. and Chinese companies when it comes to international acquisitions.

"There is virtually no chance that a U.S. financial services company would be permitted to acquire a Chinese [rival]," he said.

Moran said that handing over financial data of U.S. citizens, including a large number of American military personnel, to a Chinese company partly owned by the Chinese government merits careful evaluation.

Both senators are from Kansas, the headquarters of Euronet, a rival money transfer company that failed to outbid Ant over MoneyGram. Last month, Euronet said that its proposed offer for MoneyGram had greater certainty of completion as it did not require CFIUS approval.

Both MoneyGram and Ant have strongly rejected such criticisms numerous times.

Alex Holmes, chief executive of MoneyGram, dismissed fears that Ant's takeover posed a national security threat to the US, noting Beijing's promise to allow access for rating agencies and credit card companies in the recently concluded trade deal between U.S. and China.

"Investment reciprocity between China and the U.S. is not an issue in this transaction. The money transfer industry in China is open to foreign competition, and MoneyGram already has a robust business in China as do other money transfer companies," he said.

Holmes added that the Trump administration's support toward Chinese investment in the U.S. will lead to a stronger relationship between the U.S. and China and help the economy.

"Investments in the U.S., like the one Ant will make in our company, are critical to creating new jobs and increasing economic growth in our country," he added.

MoneyGram shareholders will vote on the deal on Tuesday.

Read more: http://en.yibada.com/articles/200972/20170516/alibaba-1bn-moneygram-deal-draws-flak-us-lawmakers.htm#ixzz4hHFRf3Xx

tollyboy5:
lalasticlacla : this are words to ponder on what do you think

googi:
Fake economic gurus please show your colo-mentality to explain why Africans must work to death to exchange all our raw materials for printed foreign papers at any rate dictated by them.

googi:
Fake economic gurus please show your colo-mentality to explain why Africans must work to death to exchange all our raw materials for printed foreign papers at any rate dictated by them.

MagicBishop:
Stop comparing apples to oranges.

China is the world's leading manufacturer and in order to prevent inflation on their exports due to a strong Yuan, the Chinese artificially devalued their currency to maintain an edge in the international export market.

In your case you produce nothing and depend on imports for everything.

Devaluation helps to prevent a scenario where your limited forex gets exhausted funding imports.

googi:
With all respect, those theories about 1. raw materials and finished products while reasonable are no longer valid. It is all politics.

All countries sell raw materials except Japan with none or little. All you have to remember is the status of famine in China.

First and foremost, they have to accept you as member of the trading clubs. China got in to spite Russia. China still dump inferior and fake raw materials at reasonable exchange rate to them. They are waking up. Too late China made it already.

The second point is finished products. Even if we have finished products, we have no market locally and in foreign countries. Obama tried but most of our product were rejected in rich country clubs. Even Africans would rather trade with overseas countries than with one another. Even cassava bread we cannot sell locally.

As for finished products, take gold for example. We've had finished gold designers for centuries but which market accept our finished gold apart from ancient times?

Note that gold standard used to determine how strong your currencies are. When they could not pay back for all the gold in the Bank of England of those days, they started issuing promissory notes WHILE THE COUNTRY THEY NAMED GOLD COAST were issued printed papers for their gold.

So they ditch the gold standard and now depend on printed papers at any exchange rate they desire.

If I may respectfully ask, which finished products were Nigeria exporting in the 60s to 80s when naira commanded one and a half US dollar?

Which finished product was Zimbabwe exporting before their money became useless.

It is all political, no rationale, gold standard or printed papers can explain it.

But if you want to hear the truth, ask a mad man. As I wrote somewhere else, when Trump was asked what happens to USA as the biggest debtor in the world if creditors cashed in.

He told them the truth. Print more US papers! There are more printed $100.00 US bills outside USA than inside.

So Madams and Sirs, stop trying to give rationale from what you learn in London School of Economics.

BTW, Innoson is looking for market. Can anyone open Rich countries Club to Innosson?

Bizibi:
innoson will look at Africa market first before breaking into the intl market.....

But fr Nigeria to survive, y will need to trade within Africa and maybe get into a sound deal with the Asia tigers to have access to the western market,what they teach in schools is what they are using against vulnerable nations via their citizens who learned in their schools.

We have the raw materials but no smart person to negotiate and exchange goods with services alone.

googi:
May God bless you.

I will even go further and say for Nigeria to survive we have to learn how to eat cassava bread, for Innosson to survive Nigerians and the Government must start patronizing their auto and for our agriculture to survive we must start patronizing Tryctors made at home.

Then move to African countries and Asians who were in the same situation as us before they got into rich countries club.

You would think that if we kept on negotiating on their economic theories since the 60s and our currencies kept hyper-inflating, we would have changed our negotiators. No, we pluck them from Sanford, MIT, Harvard, London Sch. of Economics while we call any opposite view dumb and pedestrian.

You hit it right on the head about our negotiators.

banku:
Source

googi:
With all respect, those theories about 1. raw materials and finished products while reasonable are no longer valid. It is all politics.

All countries sell raw materials except Japan with none or little. All you have to remember is the status of famine in China.

First and foremost, they have to accept you as member of the trading clubs. China got in to spite Russia. China still dump inferior and fake raw materials at reasonable exchange rate to them. They are waking up. Too late China made it already.

The second point is finished products. Even if we have finished products, we have no market locally and in foreign countries. Obama tried but most of our product were rejected in rich country clubs. Even Africans would rather trade with overseas countries than with one another. Even cassava bread we cannot sell locally.

As for finished products, take gold for example. We've had finished gold designers for centuries but which market accept our finished gold apart from ancient times?

Note that gold standard used to determine how strong your currencies are. When they could not pay back for all the gold in the Bank of England of those days, they started issuing promissory notes WHILE THE COUNTRY THEY NAMED GOLD COAST were issued printed papers for their gold.

So they ditch the gold standard and now depend on printed papers at any exchange rate they desire.

If I may respectfully ask, which finished products were Nigeria exporting in the 60s to 80s when naira commanded one and a half US dollar?

Which finished product was Zimbabwe exporting before their money became useless.

It is all political, no rationale, gold standard or printed papers can explain it.

But if you want to hear the truth, ask a mad man. As I wrote somewhere else, when Trump was asked what happens to USA as the biggest debtor in the world if creditors cashed in.

He told them the truth. Print more US papers! There are more printed $100.00 US bills outside USA than inside.

So Madams and Sirs, stop trying to give rationale from what you learn in London School of Economics.

BTW, Innoson is looking for market. Can anyone open Rich countries Club to Innosson?

banku:
Source

anonimi:
There is no link in the source.

anonimi:
Does Innoson comply with the auto standards for rich countries?

Xisnin:
This analysis is long but outdated.
The gold standard is dead and only some conspiracists and scam artists are calling for its return.

China wasn't invited into a so-called rich club, it worked its way into it.

Exchange rate is irrelevant to a country's prosperity, it is our economic ignorance
and over reliance on foreign goods that make many think so.


The question the OP should be asking is why are Nigerians and its economists obsessed
with western country's view?