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Showing posts from April, 2021

Nigeria is Printing Money: Road to Zimbabwe Part 2

Let me illustrate what happens when Quantitative Easing is managed well and when it is mismanaged as follows: 1. If QE is used rightly, it is a veritable economic management tool that jumpstarts comatose economies back to life. So, let us say our economy produces 1,000 yams and money supply is N100,000, all the money will buy all the yams at N100 per tuber. Now, if the government adopts QE and prints N900,000 so that money supply is now N1 million and uses the money to boost the agricultural sector by clearing the land, buying farm equipment and building processing plants, there will be a sharp rise in output to 20,000 yams. N1m will buy 20,000 yams at N50 per yam so price has crashed (inflation tamed) and jobs created because the workforce that will produce 20,000 yams will be more than the one that produced 1,000 yams! This is the beauty of QE when used for economic growth!  However and tragically too, if QE is mismanaged, it spells a death sentence to an economy. Nigeria is mismanag

EFFECTS OF SMART LEADERS - ISRAEL IS AHEAD IN FIGHT AGAINST COVID19

ISRAEL HAS REACHED HERD IMMUNITY Israel has once again shown countries how clever leaders think in the 2nd and 3rd order (thinking beyond the obvious). Last week, 19th April, 2021*; Israel became the first country to  inoculate its entire adult population over age 18. Yesterday, all schools and colleges were opened and mask requirements were removed all across the country (barring a few congested public places). Here's how this remarkable country did it. Israel's leaders are all well educated and many of them have advanced degrees in science and medicine. Their PM graduated at the top of his class at MIT, and started (but didn't finish) a PhD at Harvard.  Isreal's Prime Minister Benjamin Netayahu They realized at the onset of the pandemic last year that the only way to beat a virus was through herd immunity, and that vaccination was key to expediting this process. They immediately zeroed in the two companies that were ahead of the pack in vaccine