naijapips04:


How?

naijapips04:


You are a hypocrite then if you are not practicing what you are preaching. Telling us to produce while you are the own killing our local economy. What a joke.

ImperialKingJosh:


See mumu...
So in a survival scenario, I should be the only one productive when the current government dont encourage it, infrastructure doesn't support it and the economy is dying.. I should create a company from my pocket with imaginary funds and be trying to stabilize a whole nation?
Are you stupid or your trying so hard to look stupid?

For your information before you scaled this to an argument, we were addressing why printing more money doesn't help the economy...
And btw you only assumed what I do, take formal note, I am a business Analyst not an importer..
And the idea of attacking me for the politicians undoing is very immature, lame, stupid and a desperate act to incite violence which I rather ignore your desperation and attempt and let you wallow in your hate, bitterness and anger...

It's an educational thread, dont come here to judge my choice of survival..

You're obviously looking for someone to engage you in political debate as you have been here attacking Peter obi and promoting Tinubu...

I wouldnt dignify your response with a reply..
If I were you I'll go back into the cave you crawled out from...
But from the look of things I can bet you'll be very stupid and proceed to replying this comment...
Well, it's in your DNA..
Prove me right

naijapips04:


Idiot which survival? Are you saying that people are not setting up industries locally? Your Hypocritical Pandora is the king of importation for wine and ovaltine but here blabbing mount about production. Uchu.

ImperialKingJosh:


You never fail to prove your stupidity..
Lol!
I know you couldnt resist being stupid

Now reply this too and verify the stupidity seal is original

naijapips04:


Empty brains retort to personal insults because they have nothing sensible inside their head. It's obvious who the stupid one is.

ImperialKingJosh:


Limited private pocket?
What are you saying, from which channel would the money be tunneled to limited private pocket?...
Once money is printed in excess and released it causes inflation automatically "majority of the printed money will end up in a very limited private pockets, which still in turn won't cause hyperinflation but better the economy a bit" this is all shades of wrong ... Doing so would put more demand on dollar and could affect common goods its affect common goods cause of over circulation of naira and over availability in foreign banks caused by releasing more money into the economy....

Jesus!
How can you suggest the solution of a problem to be the primary cause of that problem?

Just like saying Apc would rescue us from apc...
Printing much more money and releasing it cant save us from devaluation caused by much money in circulation.

ImperialKingJosh:



Between I and you, who resulted to insults and attack....

I just love the way you solidified the originality of your stupidity..
That just made my day...
If you like, reply this, I know you cant help it..

Timekeeper452:
you just explained what is currently happening exactly. You think more Naira aren’t printed? You think that money isn’t being stolen and changed to dollars? This is currently what is happening to Nigeria as we speak.

naijapips04:


Mpama . Onye gbaa osoo mma ya.

Cmeo:
To answer your question that from what channel would the money be tunneled to limited private pockets:

Don't get it wrong, when money is printed, they don't just start to credit account of everyone but tied it to a project (either a real or a fake project). So what I meant is that those money printed will ended in the pockets of few that will steal it or hoard it in another foreign currency and this would NOT make the money to go round or increase our productivity.

ImperialKingJosh:


Bro please...
You're totally wrong in this assessment...
It takes money to print money but not in that perspective..
What it means is... it can take 1billion to print 1 billion..
And maybe 1.2 billion to print 2 billion...seigniorage that's where profits comes in , when production cost is covered

Example ..
I want to make cream, so to buy and set up the factory I need N1m but after setting up I can choose to only produce 100 bottles worth 100k...
I can go ahead to make 1000 and 100,000 bottles to worth cost of startup...
Continued Production cost wouldnt be same as start up cost..
So it took me N1m to make 100k bottles of cream worth N1m...

Now if I need to make another 100k bottles all I need is just labor and material plus some overhead cost like electricity...
But it wouldnt be up to N1m..
Maybe now I spend N100k and make 100k bottles worth N1m..
If Nigeria govt tell you they spent 5 billion to print 2 billion you believe?
Just like they spent 1billion to create airplane logo that till now isn't functional...

The reason they dont accept to be printing more money even when they currently are to finance fed govt on his wastage is cause of the damage it would cause not cause its expensive...
Else logically countries would be printing money on a less destructive material and not paper...

How can you be doing something that the cost is more expensive than the goal?
How is that even logical or reasonable?
It's very unsustainable and absurd.

steveodo:
Why would you be using logical reasoning instead of fact that you can easily get through research, go to Google and check how much G& produce naira note for Nigeria
_Countries don't print money to make profit
Why do you think the central bank is always against spraying of naira note, it is because it's costly to print and maintain as a matter of fact printing and maintaining of naira note eat up chunk of their budget.

ImperialKingJosh:


You're too childish ..
How old are you?
Do this look like your primary school playground where you engage an opponent in comedy insults and emotionally blackmail them with such lowlife stupid phrase "Onye gbaa osoo mma ya"
And the spelling is "gbara" mumu man ...
You should be ashamed of your age, if you aren't, I am ashamed of you for you.

I knew I was conversing with a local Bush breed child

Farid24224:
Doing that will break the economic balance...Not everyone should be rich, there have to be the poor as well for the rich to be recognized..

Cmeo:


You got the point.
But even as at now, I believe they are printing more Naira. The inflation we are expressing recently is caused by not putting those money (and it converted currency) into a productive use that's why it is causing inflation we are currently experiencing. So what I am saying is that we can take out the bad effects of printing more money strategically by using the printed money to increasing cum invest in plants and machines so as to increase productivity to beat its negative effects.

Spells:
This question has always troubled many.
Let me explain in a very simple way.

First things first. It is the Reserve Bank of Nigeria know as the country's central bank, that decides how much notes have to be printed. This decision is a part of CBN monetary policy - the policy that determines the amount of money in the economy.

Now, the very pertinent question - since the country is free to print any number of notes it wants, why doesn't it produce billions of Naira and distribute it among people and end all the poverty in one go?

Let us assume there are only 3 people in a country: Obina, Funke and Musa having a wealth of Naira. 300, 200 and 100 respectively. Also, there is just one commodity in the country that all three of them would buy using up all their wealth.
Therefore, total wealth in the country = #600 (300+200+100)
Total commodity in the country: 60 kgs of rice.
Since they use their entire wealth to buy this commodity only, the price of rice would be = #10 per kg (600/60).
At this rate, Obinna can buy 30kg of rice, Funke buys 20kg and Musa buys 10kg of rice.

One day they get hold of a currency-printing machine. They decided to double their money by simply printing more notes.
Now they have Naira 600, 400 and 200 respectively.
Total wealth now = Naira 1200
But total commodity in the country is still 60kgs of rice.
The new price of rice = 1200/60 = #20 per kg
They go to buy the rice. With 600 bucks, Obinna would still be able to buy the same 30kgs only, Funke 20kg and Musa 10kg! Damn! They realised how futile it was to print those notes.
Merely printing of notes doesn't do good to anyone. If the total money supply is increased disproportionately to the increase of goods (and services) in the country, it only leads to devaluation of the currency. Although their wealth doubled, the value of their currency got halved.
Therefore, to really become rich, they need to increase production of goods (and services as well), in addition to the money supply. Had the supply of rice also doubled along with the doubling of their money, the price of rice would have remain unchanged. With their new increased wealth they would have been able to buy double the amount of rice than they could before. That's what would have made them "wealthier" in the real sense.

You may extend the same concept to the entire country. If the CBN prints billions of Naira and doubles everyone's wealth, the cost of everything in the country would double.
This can also be understood from the simple law of demand and supply. If everybody has got more money out of nowhere, the demand of every goods and service would also increase almost commensurately (since everybody becomes rich, everybody now wants to own a Mercedes, fly in a business class, buy more fruits and chocolates). This would lead to an increase in the price of all the goods and services in the country (inflation).
Therefore to become rich, the country (its people) has to increase its production. That's the reason why countries are crazy about GDP (a measure of production).

naijapips04:


I need to get to your level. Sometimes it's important to roll in the dirt with pigs. Onye gbaa oso mma ya. If you stop, you are a big fool. Lego.

ImperialKingJosh:


My level you say? you cant reach it...
And my level right now is to ignore you...
If I argue with a mad man, people might think I am also mad...
So this is the last message you would ever be privileged to get from me...

As your stupidity is already confirmed I have no reason to engage or banter words with you...
I'll allow you to keep commenting and enjoy the role of a mad man begging for attention and emotionally trying to blackmail me into responding with a childish game of parental insults...

I'm sure you would say that stupid line, subjecting your mother to common online argument and ridicule as evidence to your improper home training..

I wish she was here to see how her so called incubated sperm is wasting online, using her for ridicule and online betting to engage in insults as it's the only thing that turns him on since soap is on the high in price and due to the economy you cant currently afford it nor to waste your neighbors, without being noticed.

Your igbo isn't even good, you should be double ashamed that I teach you your own words...

You're a disgrace to humanity and your family

ImperialKingJosh:



I used your assessment by you with the explanation of your tagged term seigniorage to elucidate printing cost

steveodo:
Seigniorage is the difference between the face value of money, such as a $10 bill or a quarter coin, and the cost to produce it. Seigniorage can be negative or positive, it's currently negative as the cost of production is higher than face value.

Sucre6:
As an economist let me make this as clear as possible in lay man terms

Printing more money will lead to what is called money illusion when huge amount of money is chasing little amount of goods/services.

Printing more money will make the money valueless, which will plunge the country into deep stagflation, which is high unemployment and inflation join together.

Countries that their money has money value than ours would not invest in the economy.

Prices of things will skyrocket like mad, imagine having ten million naira and a price of big loaf of bread is one million naira, u end up spending ten million naira just to feed for 3 days.

With the ridiculous way the value of the money would be the country can't even import anything which will lead to more poverty, even the so call rich men and women would eventually run out of money to spend.

It's a scary situation, during covid 19, tinubu suggested that government should just print more money, I read the news and laughed at his nonchalant statement, which clearly shows that he understands nothing in money generation or managing the resources of the nation, reason why I will vote for Peter obi, not out of sentiment but out of the fact that he understands the uniqueness of Nigeria situation and knows how to economically tackle it.

PNomsule:


I fancy the points you noted however, from the post I made, how do you see the aspect of Price Control Mechanism as a critical vehicle to combat and stiffle inflation before it rears its ugly head, say on bread for example?

07kjb:


Were is the excess cash then?

Sucre6:


You see, it's a vicious cycle, take for example, when more people are employed, they will be paid right, what is the value of working when u know that the money you will be paid won't be enough to buy you food to eat not to talk of clothing and luxury, it gets to a point when the money becomes so valueless that there will be no need to work, a case study is Zimbabwe.

When there is stagflation, prices can't be controlled because an individual could monopolies the market take for example, when dangote refinery is ready, he would be a sole producer of oil in Nigeria, when when stagflation sets in, you can't control or regulate how he sales his product because the whole country is dependent on him for survival, it's will be wild like going back to stone ages.
Now this is a practical example

Take for instance if our normal exchange rate is maybe #1,000 to 1$ dollar and a crude of oil is sold at #100,000 these foreign countries would have to exchange $10 dollars just to acquire one barrel of oil, but when stagflation sets in, exchange rate would be crazy, say N100,000 for $1 dollar and a barrel of oil is sold at 100,000 to foreign export for example, when stagflation sets in and the naira looses it value, you could buy 10 barrels of oil for $1 dollar

These illustration above means, the value of money that the foreign countries pays for 1 barrel of oil when the economy was good, same amount of money would buy 10 barrels of oil when the economy becomes bad thereby plunging the economy into deeper hyper inflation, most countries wont even buy from Nigeria then, to avoid importing inflation to their country, yes a country could be plunge into inflation by importation from inflation Country.


The solution to solving these, The CBN introduces monetary and fiscal policy

Which include Open Market operation, sales of bonds and securities and so on, they do this to rake in excess money in circulation, and when this is continued the money in the economy would be just fine to run the economy. The extreme measures is devaluation of the face value of the currency,

So that's it, hope it's clearer now?

Sholaadey:


Brain washed lots

It’s okay for a government to borrow $1b dollars but it’s never okay to print $1b lmao.
What’s the major difference between the two? Nothing other than one lets them get the money right from home and the other would involve a promissory third party.

USA, EU and CHINA prints money everyday. What they don’t do is sharing or pushing the money into circulation ordinarily.
They build super infrastructures with these kind of money, tho this will temporarily cause inflation, And in the long run, would contribute immensely to their economic development.

You can print or borrow money to build a gas plant which is quite alright, but printing or borrowing money to service debt or pay salaries or cater for high cost of maintaining democracy is what’s wrong, leading to the dreadful super inflation.

Sucre6:


Lets assume this your theory is practicable, you increase your price as demand increases this is so because every business man don't care about you, he just want to maximize profit, so basic law of demand sets in. The more you demand, the more he increases the prices, the lesser you demand the prices becomes static or declines especially when its not a monopoly market.

Reference:- perfect competitive market

Sucre6:


Dude this is my field and I will like to school you here without insulting you or being disrespectful.


Have u ever heard of what is called total money in circulation, ??

Have u heard what is called trickle-down effect.??
Have u ever heard of what Is called money illusion??

If you have heard of all of this then you will know that ur opinion is so, narrow, myopic and unrealistic

See, there is no such thing like printing money to build a gas plant for example, without the money having a trickle down effect to the economy which in turns inject these excess money in the economy which leads to money illusion, the countries u mention that print money on a daily are daily producing than consuming country, for example.

If China decides to print 10 million dollars, dey will use this money more in production of goods to be exported to other countries like Nigeria to make more money, but if a country like Nigeria print more money than required, they end up in circulation, which will lead to inflation and money illusion. So u see the two indices for comparison isn't accurate.

There is no government that don't print money, but it's is done in moderation, that's why we have IRR, initial reserve ratio, and other agents that's controls that

Sholaadey:


My brother it’s still the same thing.
Customers are customers regardless of their region or location.
If China prints money to build products for export, their customers will be buying such products with the RMB or Yuan.
If China prints more money to build local infrastructures to produce product for local customers, those customers too will be paying for such products using the RMB or yuan. So Stop deceiving yourself. There’s nothing like inflation if the government knows the right things to do with such money.

Print money, build a gas plant and refine gas locally for local customers.
Print money and support national companies to be able to produce more quality goods efficiently
Print money and support our local rice production, palm oil exports and the technology sectors.
Impose absolute price regulations on goods produce locally.
Print money and use as PPP (payment/pay check protect plans) for companies to therefore increase the economy employment rate which in turns increase the human capital.
Print money to build schools and equip such schools with adequate facilities to be able to inject high number of innovative personnels into the work force ecosystem.
Print money to build government assisted factories for technology and innovation such as car plants, road construction companies, real estates etc. m
And numerous others. Doing these will have a superficial but short lived inflation effects. The more human and economic resources that exists within the country increases, the faster the rate at which the inflation that occurs as a result of the execution of the above moves diminishes.
Try and learn economics to the core my bro. No disrespect.

What the government should not do is Borrow or print money to pay salaries. Borrow or Print money to service debts. These ones are the type of reasons to print money that leads to inflation or hyperinflation.

PNomsule:


This narrative you are pushing, I beg to differ.

"The Central Bank of Nigeria spent the sum of N58.6 billion to print 2.52 billion Naira notes valued at N1.1 trillion in 2020."

Although we are here to learn from one another, if you can disprove this, then by all means and we would have learnt from you.

steveodo:
Where did you get this data from?