modath:


You picked Trump out of that, are you aware of the keystone pipleine?

http://www.cnbc.com/2017/03/24/boom-keystone-would-make-us-and-canada-bigger-competitors-with-opec.html

Like i'll always say, i don't like long drawn out back & forth, it most often than not devolves into animosity... Let me leave you with a few things to peruse...


http://oilprice.com/Energy/Energy-General/US-Oil-Rig-Count-Continues-To-Rise-Despite-Saudi-Warnings.html

donbenie:
The MAIN force that controls the price of Crude Oil Price is the Force of Supply and Demand,the current glut in the market occasioned by the US Oil producers IS what lead to the Fall of Crude Oil Price which OPEC is fighting by a cut in their barrel per day production..
Quoting a bunch of Conspiracy Theories doesn't change basic economic laws..

Truth234:


Its hard to explain to people outside the industry how this work. I already stated that surge in US production is disrupting OPEC strategy. Hence, plunged in global oil prices and the reason they are meeting in Kuwait tomorrow.

Let me ask you why did US producers stop production when oil plunged to its lowest last year? Listen there is limit to how low they can go, and the came on board because of Trump tax advantage and OPEC successful consensus.

I spoke extensive on Trump policy and you said that was the only thing I picked. Listen Keystone project was blocked by Obama because of its impact on climate, Trump approved because he has repeatedly stated he doesn't believe in it. Again, I don't even know why this is now an issue when it still needs two different approvals (Nebraska Public Service Commission and local landowners) before they will even start the project that will take years. My question is how does that impact current economic approach?

Badgers14:
It is a shame that with all the brains we have in this country this is where we found our selves today.

In my opinion, CBN pumping dollars in the economy is a rubbish idea, voodoo economics.. Whose idea was it anyways It is a shame.

Before you start quoting me, let's reason this,

1. People talk about Forex this and that, Is Nigeria the only country that its citizens operate FOREX?

Why aren't all other countries currency down the toilet as well?

2. People say because we import more and export less. Yes that might be one of the reasons but let me tell you sth. Do you know almost everything sold in the U.S is imported? Yes I kid you not, Iphone is designed in California but produced in China.

The U.S import Bananas, Plantains, Pineapple, coconut Yes.. People living in the U.S, check the label on the bananas at Walmart, Kroeger or which ever grocery store you go.. The label would read most times, From Honduras, Guatemala, Costa Rica or some other south American country.

Also, the U.S import tooth picks, I kid you not, I was surprised when i purchased one and the label reads made in China.

You could disagree with me if you like but the main issue we have is over dependency on foreign currency.

There are some law offices that charge their clients in dollars, some government officials/ contractors are paid in USD.

Even some business, schools etc. Accept only USD as a form of payment.

Why would USD be accepted as a legal tender in Nigeria You couldn't use GBP in the U.S.

Likewise, you can't use USD in GB.

The implication of some business using USD as a legal tender is that, those businesses that accept Dollars from their clients, they pay their employees in Naira and make their office purchases in Naira.

They are indirectly running a BDC. Recall, when clients and the government go and source dollars from banks to pay those busineses , contractors and personnels. Then those business pay their employees in Naira and make their purchase in Naira. At a point banks will run out of dollars and what happens?

Economics 101, scarcity of dollars.. Then those dollar businesses will start selling their stash at a higher rate.

Does anyone recall the NNPC guy that they found $10m cash in his house? How much was recovered from those judges Diezani Plus lots of others we don't know about.

Have we ever asked ourselves, CBN have pumped almost $1bn into the market since this year and still pumping where is the money going

iaatmguy:
some of your points are facts, but to say the US import most of their products is a very ignorant statement,, machineries equipments nko?
The money can pumps out are taken by manufactures, students, patients seeking treatment, and taken abroad.

chris81964:

Typically Nigerian in your response. I won't match you in the insult space because I reserve that area of expertise to you. I live in the United States. Go and do you research before you spout your untruths. In my home state of New Jersey there are over 100 large manufacturers and thousands of smaller one. Mercedes Benz and BMW have manufacturing plants in the US as do Honda Toyota and Nissan. The big three GM Ford and Chrysler have manufacturing facilities spread all over. There are still mills, oil refineries Boeing has manufacturing in Washington state. United Technologies manufactures in Connecticut.
Stick to what you know. The CBN outlawed billing in dollars but you would not know that because you prefer to peddle fake news.
Stick to what you know economics or the United States is not it.

hobermener:

Luxury items as you clearly stated are for THOSE WHO CAN AFFORD THEM!!!!
If you can afford them, by all means go for them AT YOUR OWN EXPENSE!!!
That shouldn't be the government's priority in an ailing economy, our priority is to see an economic rebound which can only be achieved by chanelling our limited stock of dollars to those areas of the economy, (infrastructure, agriculture and mass production) that are most sensitive to long term development. I agree it's gonna take some time with some price to pay, but its going to be a bold step in the right direction. And we haven't seen any of that yet in the present government. Remember selling dollars to select importers who inturn sell back to the parallel market lead to this precipitous decline. Importers who need the dollars for importing capital goods should not have them physically, the government should only act as their payment agents through a stable and transparent process

musicwriter:


It's a pity when people resort to calling facts they don't understand conspiracy theory. A well researched documentary with dates, facts and figures you call conspiracy theory? OK, since you believe so much in these economic theories; let me ask you a question. What do you think would happen, if the US federal Reserve decides to tighten dollar supply globally? Would artificial scarcity be created in Nigeria or not? Would the exchange rate change for better or worse?

donbenie:
Certainly I don't discountenance the fact that there are bodies out there working for their own selfish agendas, but we're talking specifics here which is the current World crude oil price slump..
As a Nigerian with a stake in the economy,I've read, listen or watched issues concerning Crude Oil Prices and its effects on our economy;
We're a crude oil dependent economy,fact..
Crude oil prices has been crashing since a high of $114 in 2014 to a low of $28 in 2016,fact..
These crash has been as a result of glut in supply of crude oil occasioned by massive outputs in US Oilfields, fact..
OPEC initially tried to fight back by maintaining the glut due to a better economy of production,fact..
Having achieved THAT to an extent,they then institute a cut in Oil production to shore up the price,fact..
Our economy and the availability of dollars in the market over the last 3 years has mirrored the fortune of Crude Oil Price in the World..
Cold hard facts are incontrovertible and that's what am interested in,the dollar is a means of exchange and tightening it's supply has NEVER had any direct effect on the price of Crude and therefore no direct effect on our economy..
My question is,why do you think Oil Prices usually spike whenever a major producer is in crises/war..

hobermener:
The smart ones will increase their stock of dollars, i repeat, the smart ones will increase their stock of dollars!!!!
Funelling millions of dollars into the forex maket on a daily basis, is a stupid short term solution to a longer term problem, which i assume is j
Call me a pessimist, that's your opinion, buth when the inevitable consequence of this stupid move raises its ugly head, there will be no one to save the naira!!!!!

musicwriter:


Yes, crude oil price may be a major factor, but it's not the only factor. Even though the world Bank and IMF are not a member of OPEC, but they run the world's economy and they can decide the value of crude oil simply by tweaking the availability of the dollar. The west do this all the time to be able to buy oil at cheap price. Most times they do this through a network- the capitalist network that control the world's economy.

And, no, artificial dollar scarcity would be created, if and whenever dollar supply is short from the US federal Reserve. Remember, the dollar itself is also a commodity and as such obeys the economic law of supply and demand that you believe so much!!. As a matter fact, they do that all the time to rescue the US economy or destroy the economy of a target country.

Even ordinary report by the IMF or world Bank would send investors away and have the economy of that target nation spiral downwards overnight. In fact, now that the Nigerian Naira is seeing some recovery, they'll soon release a damning report on the Nigerian economy in the coming weeks, and I bet you the Naira value would crash once again when that is done.

See the capitalist network that control the world's economy http://www.africason.com/2015/05/the-capitalist-network-that-control.html

chris81964:


I am sure you have a sloped forehead, super extended arms and grunt when you speak.
Go to the streets of Lagos or the supermarket and the legal tender is naira. When you make transactions across borders the currency is in whatever is agreed on. But I am sure that exceeds your limited understanding so all you can do is grunt scratch your sloped forehead and low brow in confusion and curse.
Bravo. And I am the one with the single digits IQ. I would love to see how far down the evolutionary scale you fell to feel compelled to respond to you again.

I broke a cardinal rule. It says don't argue with idiots. The bring you down to their level and beat you with experience.

I conceed this battle to you. YOU WIN.

Try to write intelligently without using curse words. Only then would you be described as something more than pedestrian.

hobermener:

Luxury items as you clearly stated are for THOSE WHO CAN AFFORD THEM!!!!
If you can afford them, by all means go for them AT YOUR OWN EXPENSE!!!
That shouldn't be the government's priority in an ailing economy, our priority is to see an economic rebound which can only be achieved by chanelling our limited stock of dollars to those areas of the economy, (infrastructure, agriculture and mass production) that are most sensitive to long term development. I agree it's gonna take some time with some price to pay, but its going to be a bold step in the right direction. And we haven't seen any of that yet in the present government. Remember selling dollars to select importers who inturn sell back to the parallel market lead to this precipitous decline. Importers who need the dollars for importing capital goods should not have them physically, the government should only act as their payment agents through a stable and transparent process

aribisala0:


The IMF and World Bank DO NOT run the World Economy ,that is nonsense. The dollar is not a commodity it is a currency they are not in any way similar.
The VALUE of crude oil has no connection to the availability of USD it is PRICED in USD and there is a fundamental difference. This is a reference only and factors in fluctuations in dollar value. Commodities after all have a relative value and impact on each other . The price of crude oil ultimately depends on production costs as well as supply/demand and not the USD.

musicwriter:


I was holding a good discussion with a more knowledged person on this topic and don't need your parochial input. If you don't know how the world bank and IMF control the world's economy, then it suffice to say you're still a suckling baby and should better concentrate on your free milk. I've provided documentaries and links to understand how they do that.

The dollar in the hands of the supplier; like the CBN in Nigeria, is a commodity, in the hands of a bureau de change is a commodity also, and indeed their supply of dollar to the Nigerian economy fluctuates the rate of the Naira- showing clearly the laws of supply and demand working!.

aribisala0:
There is a definition for "commodity" the dollar is not a commodity. Please stop talking rubbish

bakila:

How much have you invested in Agricultural? The present government has invested so much in Agriculture that there is surplus of fertilizers for dry season farming of Rice. Poor Nigerians will not suffer from huge difference in price of rice between the surplus and normal lean period.
The government is now making it easier for those who need dollars to go to the banks and buy, as well as those who buy through the culturally entrenched "b;ack market".
We cannot have mass production of capital goods in one year, the dollar issue has made more producers to look inwards. Looking to produce locally means more jobs. The pains you mentioned is to create jobs and that is what the government is going.

I just hope you're not one of the social media propagandists from the infamous bmc
Going back to my archives to bring out a post where i condemned double standards in governance and administering justice by the present administration portrays me as no pessimist. Im just some one who says things the way they are, regardless of whose ox is gored!!!
You talk about investment in agriculture, yet food prices are sky rocketing For the first time the economy is contracting at a fearful rate in decades due to underproduction, capital flight and unprecedented unemployment, yet you have to effrontery to parade false facts before my face?? Just how low can you stoop
I repeat, producers who need forex do not get them, the select few who do are involved in criminal acts like round tripping, ultimately leading to a higher price of the dollar in the parallel market. This administration met the dollar at 216, but their reckless and poorly thought out policies lead to a precipitous increase in the value of the dollar within a very short period of time!!
For the very first time we've had zero budgeting, where the impact is not being felt by any one, even some at the corridors of power, no accountability whatsoever, no details how revenue from the budget was expended, but continuous application for loans from the world bank, despite claims of billions being achieved from the proceeds of the anti corruption war. No serious government who wants diversification sinks taxpayers money prospecting for oil in an arable land, for whatever reason!!! There's a lot to be said, which is pretty obvious to all, but I'll say you advise you pay masters to fix the economy or at least return it to the state they met it before the elections. If critizing the present government means hating on the north, so be it!!! Our mouths will not be gagged, we'll speak out whenever we want to, Nigeria belongs to us all!!! Nuff said!!!

Badgers14:


Do you live in the U.S?

Have you heard about companies sending jobs to Overseas, China, Mexico et al.

Don't forget U.S does import Fuel/ gas.

Most electronics , cars, sold in the U.S are built in Mexico.. And assembled in the U.S. Some are built outright over seas amd imported example some Samsung and LG electronics are built in South Korea.. Also Kia and Hyundai are mostly manufactured in SK

iaatmguy:

The US produces 9 million barrels of SHALE OIL per day. Of recent the US is now a net exporter of oil, like I said you are correct on some point BUT what of chemicals, phones, agricultural products agro allied products, machineries, steel.
Their import can never outweigh what they produce

Badgers14:


My brother my Sister. We are on the same page sort of.

Recall, my argument was that U.S imports lots of things just like Nigeria does. I don't have any official report per se about Import Vs Export in the U.S.

But the striking difference between the two countries is, You can never use any other currency as a legal tender in the U.S. even at international airport.. Dew outlets "might" accept "some" foreign currency at the airport.

In comparison to Nigeria, some law firms charge their client in USD. Some schools etc accept only USD as a form of payment. Lots of govt officials and contractors are paid in USD.

To me this is the big issue in Nigeria. Recall those businesses that uses dollar turns around and pay their employees, NEPA bill, buy fuel for Gen all in Naira.

iaatmguy:
ok I get your point

wristbangle:


If some of the projects are being contracted to foreigners, will they accept naira?

musicwriter:
All we have to pray now is for the world Bank and IMF not to crash crude oil price. Its only if this don't happen that the CBN would be able to sustain this effort of injecting dollars wisely into the market.

Badgers14:
It is a shame that with all the brains we have in this country this is where we found our selves today.

In my opinion, CBN pumping dollars in the economy is a rubbish idea, voodoo economics.. Whose idea was it anyways It is a shame.

Before you start quoting me, let's reason this,

1. People talk about Forex this and that, Is Nigeria the only country that its citizens operate FOREX?

Why aren't all other countries currency down the toilet as well?

2. People say because we import more and export less. Yes that might be one of the reasons but let me tell you sth. Do you know almost everything sold in the U.S is imported? Yes I kid you not, Iphone is designed in California but produced in China.

The U.S import Bananas, Plantains, Pineapple, coconut Yes.. People living in the U.S, check the label on the bananas at Walmart, Kroeger or which ever grocery store you go.. The label would read most times, From Honduras, Guatemala, Costa Rica or some other south American country.

Also, the U.S import tooth picks, I kid you not, I was surprised when i purchased one and the label reads made in China.

You could disagree with me if you like but the main issue we have is over dependency on foreign currency.

There are some law offices that charge their clients in dollars, some government officials/ contractors are paid in USD.

Even some business, schools etc. Accept only USD as a form of payment.

Why would USD be accepted as a legal tender in Nigeria You couldn't use GBP in the U.S.

Likewise, you can't use USD in GB.

The implication of some business using USD as a legal tender is that, those businesses that accept Dollars from their clients, they pay their employees in Naira and make their office purchases in Naira.

They are indirectly running a BDC. Recall, when clients and the government go and source dollars from banks to pay those busineses , contractors and personnels. Then those business pay their employees in Naira and make their purchase in Naira. At a point banks will run out of dollars and what happens?

Economics 101, scarcity of dollars.. Then those dollar businesses will start selling their stash at a higher rate.

Does anyone recall the NNPC guy that they found $10m cash in his house? How much was recovered from those judges Diezani Plus lots of others we don't know about.

Have we ever asked ourselves, CBN have pumped almost $1bn into the market since this year and still pumping where is the money going

jpphilips:


What is the connection between the world bank, Imf and crude price?