Economicwatch

[dr dowell]

Originally Posted by overload

I really dont balme SLS..from where he is he is seeing massive inflation in the offing!

For as long as wealth distribution is skewed in favour of the rent seekers and civil servants who contribute very little or notin (due to massive corruption in the system) to the GDP we will continue to have high liquidity in the system and as such SLS will have to keep fighting inflation!

I believe that If we know the source of a problem the problem is as Good as being solve. Some of the the policies that are being implemented has cyclical effects. Let start with this issues we look at it that corruption is the bases of inflation correct in all ramification, but look at it from this angle. U want to solve corruption problem by high MPR. This will lead to closure of SME who are the main source of employment in the manufacture sectors, this will eventually lead to loss of Jobs and unemployment. Unemployment will lead to security challenge. This will lead to increase budgetary allocation to security instead of increasing allocation to Infrastructures development to combat. Inflation the fund will still be embezzled and still lead to increase Liquidity in the system. The security challenge will scare foreign investors from coming to invest in the economy, this will worsen the unemployment issues and the cycle continues. SLS should advocate for more logical and practical way of solving corruption rather than using MPC to the detriment of the Economic growth. As long as I am concern he is treating the symptom rather than aetiological factor.

[overload]

Originally Posted by dr dowell

I believe that If we know the source of a problem the problem is as Good as being solve. Some the the policies that are being implemented has cyclical effects. Let start with this issues we look at it that corruption is the bases of inflation correct in all ramification, but look at it from this angle. U want to solve corruption problem by high MPR. This will lead to closure of SME who are the main source of employment in the manufacture sectors, this will eventually lead loss of Job and unemployment. Unemployment will lead to security challenge. This will lead to increase budgetary allocation to security instead of increasing allocation to Infrastructures development to combat. Inflation the fund will still be embezzled and still lead to increase Liquidity in the system. The security challenge will scare foreign investors from coming to invest in the economy, this will worsen the unemployment issues and the cycle continues. SLS should advocate for more logical and practical way of solving corruption rather than using MPC to the detriment of the Economic growth. As long as I am concern he is treating the symptom rather than aetiological factor.

SLS has spoken severally on the corruption issue in Nigeria..he has spoken a lot about the high recurrent expenditure but then when you have a clueless and corrupt govt at the center wetin u want make the man do?

We have a judiciary and presecution team that do not want to presecute any corrupt person and as long it remains like that, this vicious cycle dat stiffles industries will continue. The only alternative is for the industries to learn how to compete in a corrupt ridden society as postulated by some of us in this forum!

[dr dowell]

Originally Posted by overload

SLS has spoken severally on the corruption issue in Nigeria..he has spoken a lot about the high recurrent expenditure but then when you have a clueless and corrupt govt at the center wetin u want make the man do?

We have a judiciary and presecution team that do not want to presecute any corrupt person and as long it remains like that, this vicious cycle dat stiffles industries will continue. The only alternative is for the industries to learn how to compete in a corrupt ridden society as postulated by some of us in this forum!

Yes he has spoken, should he now cause another problem in other to solve or window dress a problem. The society were u compete in corruption ridden environment will lead to snake swallowing snake. What an animal kingdom that will be ; all animals are equal but some are more equal than others. This will push us backward to 16 century. (Jungle life) who knows ur friends company may be the one to be swallowed. Something are better said than done. Pls let ponder over this issues

[knightofdelta]

Originally Posted by dr dowell

I believe that If we know the source of a problem the problem is as Good as being solve. Some of the the policies that are being implemented has cyclical effects. Let start with this issues we look at it that corruption is the bases of inflation correct in all ramification, but look at it from this angle. U want to solve corruption problem by high MPR. This will lead to closure of SME who are the main source of employment in the manufacture sectors, this will eventually lead to loss of Jobs and unemployment. Unemployment will lead to security challenge. This will lead to increase budgetary allocation to security instead of increasing allocation to Infrastructures development to combat. Inflation the fund will still be embezzled and still lead to increase Liquidity in the system. The security challenge will scare foreign investors from coming to invest in the economy, this will worsen the unemployment issues and the cycle continues. SLS should advocate for more logical and practical way of solving corruption rather than using MPC to the detriment of the Economic growth. As long as I am concern he is treating the symptom rather than aetiological factor.

This is very interesting. Is Sanusi the CBN Governor or the Head of EFCC?

I assume you are a medical doctor. How would you feel if all of a sudden patients stop seeing you because the medical lab scientists is already consulting and prescribing drugs for your patients?

[wanaj0]

Originally Posted by dr dowell

Consolidated breweries is doing well I keep wondering why they are not listed on NSE.

It is majority owned by Heinekens who are major shareholder in NBL.

Why do you want them to list on the NSE?

[emmanuel ewumi]

Originally Posted by wanaj0

It is majority owned by Heinekens who are major shareholder in NBL.

Why do you want them to list on the NSE?

http://www.heinekeninternational.com...0Breweries.pdf

[emmanuel ewumi]

Originally Posted by emmanuel ewumi

http://www.heinekeninternational.com...0Breweries.pdf

Heineken bought the shares of Leventis in consolidated breweries to become the major investor in the the company.

Heineken owns 53.5% of the company, while Odutola holdings own 10.6%. Adeola Odutola used to be the richest man in Ijebu land.


http://en.wikipedia.org/wiki/Adeola_Odutola

[dr dowell]

Originally Posted by knightofdelta

This is very interesting. Is Sanusi the CBN Governor or the Head of EFCC?

I assume you are a medical doctor. How would you feel if all of a sudden patients stop seeing you because the medical lab scientists is already consulting and prescribing drugs for your patients?

I will start first by answering the question. Yes I am a medical dr. Any time I start competing with Lab scientist and pharmacist that means I have lost touch with medicine and should go for refreshing course. I should employ them not compete with them. Although occasionally I see patients who has been to them before seeing me I rejoice when I see them because I charge them higher. NOI is controlling corruption in subsidy payment yet she is not EFCC. SLS should do more after all he is part of FEC regular meetings on wednesday. He is there to proffer solutions to knotty issues. If he feel he can not perform because off some issues he should resign

[emmanuel ewumi]

Employment racketeering: Nigeria’s worst kept secret — The Punch - Nigeria's Most Widely Read Newspaper

[Salida]

CBN Economic Report November 2012 - Proshare

[bamidele97]

Nigerian crude may not find market in US in 2013

[emmanuel ewumi]

Originally Posted by bamidele97

Nigerian crude may not find market in US in 2013

What does this portend?

[SpecNomics]

Originally Posted by dr dowell

I will start first by answering the question. Yes I am a medical dr. Any time I start competing with Lab scientist and pharmacist that means I have lost touch with medicine and should go for refreshing course. I should employ them not compete with them. Although occasionally I see patients who has been to them before seeing me I rejoice when I see them because I charge them higher. NOI is controlling corruption in subsidy payment yet she is not EFCC. SLS should do more after all he is part of FEC regular meetings on wednesday. He is there to proffer solutions to knotty issues. If he feel he can not perform because off some issues he should resign

Please answer the following questions

(1) Where would you prefer it to be at 5% or 10% or even near 0% like some economies?

(2) What do you expect will be the effect of the growth in money supply, post reduction, on the economy and inflation more specifically?

(3) For an import dependent economy, what impact do you think reduced MPR would have on the exchange rate and the impact of that on inflation?

(4) What do you expect will happen to our Foreign Reserves?

(5) People/businesses borrowing money for investment is better than for consumption, what sort of spending do you think the reduce MPR will most likely fund given our pre-industrial economy and our post industrial tastes?

(6) What do you expect will happen to our banks in the credit expansion that ensues?

(7) What difference would it make to Power, Infrastructure and Agriculture?

I believe you'll appreciate, after thinking about these questions, that reducing the MPR would be INFLATIONARY and therefore a totally futile idea. If anything is sacred in economics its inflation, its the proxy for SCARCITY and that truism that trees don't grow to the sky. There is a scarcity of many goods and services in Nigeria, reducing the cost of money would only exaggerate that situation. You could answer back by saying that a lower cost of money could also encourage a reduction in scarcity, to which i'll respond absolutely, but reducing MPR is not necessarily the best way to go about doing that.

[nosa2]

Originally Posted by SpecNomics

Please answer the following questions

(1) Where would you prefer it to be at 5% or 10% or even near 0% like some economies?

(2) What do you expect will be the effect of the growth in money supply, post reduction, on the economy and inflation more specifically?

(3) For an import dependent economy, what impact do you think reduced MPR would have on the exchange rate and the impact of that on inflation?

(4) What do you expect will happen to our Foreign Reserves?

(5) People/businesses borrowing money for investment is better than for consumption, what sort of spending do you think the reduce MPR will most likely fund given our pre-industrial economy and our post industrial tastes?

(6) What do you expect will happen to our banks in the credit expansion that ensues?

(7) What difference would it make to Power, Infrastructure and Agriculture?

I believe you'll appreciate, after thinking about these questions, that reducing the MPR would be INFLATIONARY and therefore a totally futile idea. If anything is sacred in economics its inflation, its the proxy for SCARCITY and that truism that trees don't grow to the sky. There is a scarcity of many goods and services in Nigeria, reducing the cost of money would only exaggerate that situation. You could answer back by saying that a lower cost of money could also encourage a reduction in scarcity, to which i'll respond absolutely, but reducing MPR is not necessarily the best way to go about doing that.

The real problem is that every Nigerian is an economist and unfortunately they don't allow the real economists take decisions.

[Salida]

Naira gains as investors buy T-Bills and Bonds

[eniyanman]

Originally Posted by SpecNomics

Please answer the following questions

(1) Where would you prefer it to be at 5% or 10% or even near 0% like some economies?

(2) What do you expect will be the effect of the growth in money supply, post reduction, on the economy and inflation more specifically?

(3) For an import dependent economy, what impact do you think reduced MPR would have on the exchange rate and the impact of that on inflation?

(4) What do you expect will happen to our Foreign Reserves?

(5) People/businesses borrowing money for investment is better than for consumption, what sort of spending do you think the reduce MPR will most likely fund given our pre-industrial economy and our post industrial tastes?

(6) What do you expect will happen to our banks in the credit expansion that ensues?

(7) What difference would it make to Power, Infrastructure and Agriculture?

I believe you'll appreciate, after thinking about these questions, that reducing the MPR would be INFLATIONARY and therefore a totally futile idea. If anything is sacred in economics its inflation, its the proxy for SCARCITY and that truism that trees don't grow to the sky. There is a scarcity of many goods and services in Nigeria, reducing the cost of money would only exaggerate that situation. You could answer back by saying that a lower cost of money could also encourage a reduction in scarcity, to which i'll respond absolutely, but reducing MPR is not necessarily the best way to go about doing that.

In my view, CBN has put itself in a tight corner. Reducing MPR would lead to increased demand on the reserves because the naira is "too strong". 18 months or so ago, Bismarck Rewane presented a report showing the PPP of the naira relative to $ and £. If a similar report is produced today (using the same items used in the previous report although I disagreed with the items used then), it may well show an appreciating currency not a "depreciating or stable" one.

To solve this, CBN would have to simultaneously reduce MPR and devalue the naira so our exports (or local production) is more competitive. We will not get a structural change in our economy if we keep the value of the naira too high. It will be a disincentive for investment. In any case, devaluation should accelerate accretion of reserves.

Interesting times lie ahead

[nosa2]

Originally Posted by eniyanman

In my view, CBN has put itself in a tight corner. Reducing MPR would lead to increased demand on the reserves because the naira is "too strong". 18 months or so ago, Bismarck Rewane presented a report showing the PPP of the naira relative to $ and £. If a similar report is produced today (using the same items used in the previous report although I disagreed with the items used then), it may well show an appreciating currency not a "depreciating or stable" one.

To solve this, CBN would have to simultaneously reduce MPR and devalue the naira so our exports (or local production) is more competitive. We will not get a structural change in our economy if we keep the value of the naira too high. It will be a disincentive for investment. In any case, devaluation should accelerate accretion of reserves.

Interesting times lie ahead

If SLS doesn't devalue reality would devalue for him

[Picolena66]

allAfrica.com: Nigeria: FG Generates N9.953 Trillion Revenue in 11 Months (Page 1 of 2)

[dr dowell]

Originally Posted by eniyanman

In my view, CBN has put itself in a tight corner. Reducing MPR would lead to increased demand on the reserves because the naira is "too strong". 18 months or so ago, Bismarck Rewane presented a report showing the PPP of the naira relative to $ and £. If a similar report is produced today (using the same items used in the previous report although I disagreed with the items used then), it may well show an appreciating currency not a "depreciating or stable" one.

To solve this, CBN would have to simultaneously reduce MPR and devalue the naira so our exports (or local production) is more competitive. We will not get a structural change in our economy if we keep the value of the naira too high. It will be a disincentive for investment. In any case, devaluation should accelerate accretion of reserves.

Interesting times lie ahead

Good talk supported

[dr dowell]

Originally Posted by nosa2

If SLS doesn't devalue reality would devalue for him

Wonderful statement. I love that