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Nairaland Forum / Nairaland / General / Politics / Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times (24145 Views)
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Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 4:23am On Sep 27, 2017 |
Blue3k:QE ordinarily ought to lead to higher inflation. But when monetary policy authorities focus more on outright buying of corporate securities so as to give life to failed institutions,it leads to asset price bubbles like it's happening with US equity markets rather than growth in the real sector. So QE is only making the rich richer in as much as it's operations are fixated on corporate bond buying instead of real money supply to the private sector that should lead to higher profit returns to corporations and then higher wages for employees,leading to higher spending growth which then should lead to higher inflation. Something is seriously wrong with QE operations worldwide 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 4:43am On Sep 27, 2017 |
omohayek:u be real man. An elder and a well studied professional..keep making sense please. 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 5:04am On Sep 27, 2017 |
huntila:that is to show u the level of intelligence people on this forum have. Most people here and to a large extent Nigerians do not like the term "Brain storming" it scares the shit out of them. They are comfortable with skewed linear reasonings and mind fantasy events like u listed. Our poor educational system and nature of the country is to blame too. They stay away from such topics because they just don't understand what is being discussed. so they have absolutely nothing to contribute 4 Likes 2 Shares |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Blue3k(m): 5:11am On Sep 27, 2017 |
seniwellsFX: Typically it doesn't though which why I cite Japan and US. They have been doing doing QE and inflation stayed at 2%. The Federal Reserve bought Mortgage backed securities, treasuries other securities. Keep it mind the federal Reserve exchange the toxic asset for cash to keep it reserves. That why we don't see the massive inflation you might expect after billions have been spent. Yes it does make rich richer. They banks can make money in stock market but they also win during riding rate environment like they are currently doing. They remind me to buy doesn't go up too much since they're not loaning most money they get. They corporations don't want to increase wages yet. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 5:23am On Sep 27, 2017 |
[quote author=chloride6 p [/quote] u think so? |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 5:26am On Sep 27, 2017 |
[quote author=chloride6 post= that's the problem with some of us. We always think rational observation is always a way of attack the current govt. U think they are perfect? [/quote] |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 5:33am On Sep 27, 2017 |
chloride6:we won't be seen as being serious if we keep using magical economic and financial markets operations. U talked about national account,i guess u mean current account. A current account is an account that entails the aggregate income of a Nation. A nation Can only have a current account surplus if the balance of trade is in the positive of which we don't have and can't seem to have in the nearest future since we are still heavily import dependent. That chart of yours has absolutely nothing to do with the Treasury bills market operations. If a government will engage in its own t-bills operations all in the name of having a robust liquid market,then we shouldn't be complaining about speculators spoking asset prices in the shot term just to make profit. It's just like a company engaging in a shear buy back operation. U only end up inviting short timers and not long timers. Such operations also shows that something is wrong with the underlying fundamental macro economic factors of the economy. Long-term,large money investors want to see longer term confidence for them to come in. And this can only be achieved with serious fiscal and monetary policy implementations of which we can't clearly see for now. The drop in broad money supply I think is as a result of the fear of the CBN in reducing the excess liquidity injected into the economy so as to reduce real naira supply. [/quote] 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 6:13am On Sep 27, 2017 |
Blue3k:we are both saying the same thing to a large extent Mr. That was why I said something is seriously wrong with QE. It's either there is a major distortion at the extreme point of the operation that is supposed to yield the desired result which is corporate profit,higher wage growth,higher consumer spending and higher inflation. I don't agree that current weak inflationary pressures in the US is all as a result of the Fed exchanging the bad debt instruments to cash so as to keep its reserve. Of course that is part of QE operation. The Fed is expected to swap it's asset holdings when the yields of those securities begin to notch higher in the long run. So to me,the infectiveness of QE has a lot to do with corporate institutions rather than the operation itself. On the aspect of Japan.its problem is more of a demographic imbalance rather than the effectiveness of QE to yield higher inflation. About sixty percent of the Japanese population is above 50 if am not mistaken. So there is a problem with the labour force in the country. That is why international financial and economic agencies like the IMF and world Bank are calling for a soft landing of the enclosed traditional society settings of Japan so skillef foreigners can flood the domestic labour market and help boost its work force and help push up consumer inflation too. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Iamzik: 6:49am On Sep 27, 2017 |
The money was used to prospect for oil in the north Part of it was stolen to pay for London hospital bill and the balance will be hidden to fund campaign for 2019.... Dont bother to quote me! |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by blackpanda: 6:52am On Sep 27, 2017 |
TheKingIsHere: Ok. I know it makes u feel good. But your insults have no impact either on buhari himself or his supporters. It only shows childisness |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Mccullum: 7:02am On Sep 27, 2017 |
Some of you typing as if you're machinery in economics with explanations that is not applicable of solving the situation Nigeria faced then, mind you all those who are working with the PMB were more fast in experience than most amongst you that explaining state's economics as if is public liability companies I don't care calling me names simply because I expressed my opinion on issue that we all has collective right to speak. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Mccullum: 7:03am On Sep 27, 2017 |
Some of you typing as if you're machinery in economics with explanations that is not applicable on solving the situation Nigeria faced then, mind you all those who are working with the PMB were more fast in experience than most amongst you that explaining state's economics as if is public liability companies I don't care calling me names simply because I expressed my opinion on issue that we all has collective right to speak. 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by trillville(m): 7:34am On Sep 27, 2017 |
Mccullum: The fact that people in the government are more learned and experienced does not mean that they are making right economic moves. Even more interesting, if the people commenting on this thread were in government, would they be able to apply their recommendations? 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by kenostika(m): 7:36am On Sep 27, 2017 |
Time shall tell.We are watching as things unfold |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Bizibi(m): 7:37am On Sep 27, 2017 |
My honourable sycophant Mr salam1...... Please come and clear the air fr the president. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Bizibi(m): 7:38am On Sep 27, 2017 |
kenostika:mtcheeeew....."were more fast in experience" Well,it is your opinion and it doesn't count. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Atk1nson(m): 7:42am On Sep 27, 2017 |
omohayek:True, liberalization, commercialization and privatization are the only things that can save the government, it is pulling a lot of dead weights. There is no reason why the likes of NTA, VON, DPR should depend on government for funding. A lot of MDAs are saddled with carrying out activities that the private sector would have done more efficiently 3 Likes |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by yaki84: 7:48am On Sep 27, 2017 |
efighter:u will die of hyperfOOlishness. My broda, tell ur people to tek u to the nearest prophet, tomorrow may be late. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by yaki84: 7:48am On Sep 27, 2017 |
efighter:u will die of hyperfOOlishness. My broda, tell ur people to tek u to the nearest prophet, tomorrow may be late. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by 0m0nnakoda: 7:51am On Sep 27, 2017 |
omohayek:Hiking interest rates ? Nigeria's interest rates are already one of the highest in the world.That theory won't work. The article is about the CBN funding the government illegally and you go off at a tangent talking about floating naira. As desirable as that may be it is not relevant to this fiscal illegatilty. Radical Privatization? I laugh . Once again not relevant to the CBN misbehaviour but a naive solution. We have privatized before with mixed results. The culture in Nigeria is that these assets are sold to cronies and envelope companies that do not have the capacity to manage them. Besides privatization can never be "radical" as you suggest when you have laws . We are not a military government. Legislation has to pass and citizens can and will challenge decisions. The Aluminium company sold to Russians is one example. Privatizing PHCN has not achieved anything. You mix emotion with economics in a very funny rant. Buhari is an economic illiterate? Let us agree . Which Head of State have we had that was an economic literate. You say government is too big I agree is that Buhari's doing? How is that relevant to the CBN Government needs to downsize ,I agree that will mean a loss of thousands of jobs , are Nigerians willing to accept the pain? Truth is that you do not know what you are talking about and seek to bamboozle the ignorant with your ignorant use of bombastic economic language . The issue here is the CBN losing its independence and acting illegally not raising interest rates which are already too high |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by dotunsteve(m): 7:52am On Sep 27, 2017 |
There is God. 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by 0m0nnakoda: 7:59am On Sep 27, 2017 |
Atk1nson:You have a point but much of that will happen naturally with devolution and restructuring. If the FG has 50% of its budget taken away then new realities would set it and a lot of rationalization will occur. To that extent it is a political problem and that is why the restructuring debate is so important. The FG is set up to fail no matter who is in charge As we speak they are debating setting up a body to monitor NGOs in the National Assembly and no one asks the questions.What will it cost and where will the money come from. In one day GEJ announce the creation of several universities I wonder whether it was costed. There is so much that needs rationalization and university education is one .How do we pay for that going forward etc .Yes there is much to be said about all these issues but I believe they are tangential to the issue here which is the CBN behaviour 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by omohayek: 8:15am On Sep 27, 2017 |
0m0nnakoda:Your response displays both an ignorance of basic economics and serious shortcomings in your reading comprehension. Just because nominal interest rates were high doesn't mean real interest rates were even high enough to keep up with galloping inflation. An interest rate of 17% when inflation is running at 19% actually means real rates are negative by -2%. As for the relevance of my policy prescriptions, I would think they'd be obvious to anyone who actually understood what I wrote: these measures would have made it unnecessary for the CBN to fund the government through such underhanded means. Radical Privatization? I laugh . Once again not relevant to the CBN misbehaviour but a naive solution. We have privatized before with mixed results. The culture in Nigeria is that these assets are sold to cronies and envelope companies that do not have the capacity to manage them. Besides privatization can never be "radical" as you suggest when you have laws . We are not a military government. Legislation has to pass and citizens can and will challenge decisions. The Aluminium company sold to Russians is one example. Privatizing PHCN has not achieved anything.I won't waste any more of my time responding to your meandering rant except to say that it shows your own understanding of even basic economic concepts is as lacking as Buhari's. You talk about privatization having "mixed results", even though you probably dashed out your rant over a privately-run mobile line; do you remember what telephony was like during the NITEL years, or are you too young to even know what I'm talking about? 6 Likes |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by beejaay: 8:26am On Sep 27, 2017 |
blackpanda:That means u were childish all the times you have been insulting those from the other side instead of just criticising themwhat a good exposé! |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by trillville(m): 8:28am On Sep 27, 2017 |
omohayek: You were right in your first post and you are still correct on this one. The issue I personally have is that you blame buhari for this mess. Do you think it is easy to fire workers in Nigeria? Do you think it is easy to increase taxes in Nigeria? When a person tries his best and yet fails, is it fair to keep rubbing it in? Buhari is flying a plane that is crashing and you are blaming him. What about GEJ that was told about the bad weather ahead yet decided all was rosy and took off with the plane? Please leave my Buhari this morning for me. 2 Likes |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by webngnews: 8:39am On Sep 27, 2017 |
Really |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by seniwellsFX: 9:13am On Sep 27, 2017 |
omohayek:u don't need to bother responding to micro and macro economic illiterates that are not rational enough to comprehend and properly analyze monetary policies that are toxic to what a proper economy should work like. Their ways of thought are always we against them,apc against PDP. That had being our major problem as a nation. |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Atk1nson(m): 9:20am On Sep 27, 2017 |
0m0nnakoda: While restructuring may help for some states, so many other states are not properly positioned to reap the benefits of restructuring. Many equally run a lot of ministries that should be revenue centres as cost centres. A lot spend over as high as 90% of allocation servicing a decrepit civil service. Many states are a mini-reflection of the situation at the centre, they will fail woefully if they are left to fend for themselves and the centre will probably not be able to help them out unlike the situation now where the FG bailed a lot of states. Those states only thrive due to the multiplier effect of pumping billions of allocation they receive monthly into the economy. As for the CBN, it lacks the independence it needs to function apolitically. It is willing to breach its laws to promote the political agenda of the party in power. HRH Sanusi mentioned the overreach of the CBN a while back, but he was silenced using the usual gov tactics of blackmail. 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Flaghouse1: 10:14am On Sep 27, 2017 |
trillville: BLAME ALL The present economic and political situation should be everybody's fault as far as the nation is concerned, since the inception of democracy in 1999 we should have charted out a course or path of how things should have to be runned with strict adherence to policies and procedures in improvng the nation rather every aspect of our lives was bring politicized to the extent that we refused to listen to voice of reasonings to avert the current situation we are in My take s that all these policies being impemented is just to favor some selected few and leave the downtrodden in a more bastardized state that they were before,it's pertinent that we as masses should wake up and smell the coffe and hold all post military administration responsible for the dwindling economic posture of the nation |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by Blue3k(m): 12:38pm On Sep 27, 2017 |
0m0nnakoda: ALSCON is a terrible example. The whole the whole debacle was caused by federal government ineptitude. No the company was rightfully sold to an American company BFIG. The supreme court ruled in companies favor twice and government hasn't honored agreement. 1 Like |
Re: Central Bank Bank Illegally Funnels Huge Cash To FG - Premium Times by GEJPosterity: 12:46pm On Sep 27, 2017 |
onatisi:Time to stockpile hard currency ahead of the depression and the inevitable exit rush. Let it please just hold off for about another 18 months or so. 1 Like |
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