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| Governor Ben Ayade of Cross River State |
By Solomon Inok
Too many of us are thought debt is bad or evil. The best our educational system leaves in us is that it is smart to pay off our debts and to stay out of debt. This is right to an extent, there is bad debt and good debt, and it is wise to pay off bad debt, or not getting into bad debt in the first place.
Robert T. Kiyosaki wrote, “Bad debt takes money out of your pocket, and good debt puts money into your pocket.”
When credits are used to buy depreciating items like Household furniture, Household electronics, Cars, etc. they are bad debt. But when a loan is gotten for an investment property which cash flow covers the debt payment and puts money in your pocket, it is a good debt.
To government, when Bailouts money is meant to pay salaries, pensions and gratuities, they are bad debts, why? Because the Interest and monthly debt repayment is added to the State Debt repayment books. It is clear that when a Debt only increases your debt profile without corresponding cash flow to cover that debt payment and puts money in the pocket of government to build infrastructures, create jobs, and meet her other needs, then that debt is bad. This in turn pushes the government to increase taxes, reduce free services and leave more hardship on the people.
The money push inflation higher because government is scared of Deflation which causes Depression. Is our financial problems getting too big? To some, it is no more a political problem but monetary problem.
When the federal government print money from tin air and call it bailout fund, thereby increasing national debt, taxes, inflation and retirement. This weaken the people financially through taxes, debt, inflation, and retirement and allows for government consolidation of power. When people are struggling financially, as the case is in Nigeria today, they are willing to have the government save them, exchanging our personal freedom for financial salvation.
Governor Ayade from 29th May 2015, came clear with plan of emancipation and economic consciousness. Even during Campaign, He asked the question, “Today our economy is running on Monopolistic economy of oil. But what if the party is over?
The signs of today’s situation was shown to Cross Riverians far before the final oil crash, far back when Bakassi was ceded to Cameroon and our 76 Oil wells ceded to Akwa Ibom.
The big question is, will bailouts save us? Because every time there is a bailout our national and state debt grows bigger, we pay more in taxes, the rich get richer, and our money’s value edges closer to zero. Every time our government gives out bailouts, money becomes less valuable, we work harder for less and less.
The final question is, what are the signals of a better future in Cross River state with Governor Ayade?
Investors wooing, basically to Finance our Capital projects which are 95% cash flow in nature. The Garment Factory, Calabar Pharmaceutical Factory, the Calabar Rice City, The Calabar embedded power Plant, The Waste management Plant, Cross River Oil Company, Bakassi Seaport, the Superhighway etc.
Why did Lagos State reject the Bailout Fund? Because they have enough to generate revenue and meet their financial needs. And one basic advantage is their position close to the sea, advantage Cross River state have in a higher percentage than Lagos, yet we languish in doubt and hatred for ideas.
Cross River Arise, keep talking for yes we Can!!!!!!