By Inok Solomon
The world dependence on Bailout Funds is a sign of the Rich getting richer and the poor pushed far more below poverty level.
Let take one example. In 1971 according to a US publication, President Richard Nixon changed the rules of money: without the approval of Congress, he served the US dollar’s relationship with gold. He made this unilateral decision during a quietly held two day meeting on Minot Island in Maine, without consulting his State Department or the international monetary system.
One analyst stated that with that America in everyday terms, was going bankrupt. Spending more than they earned. US could not pay bills as long as their bills were to be paid in gold. By freeing the dollar from gold, and making it illegal to directly exchange dollars for gold, Nixon created a way for the United States to print its own way out of debt.
Another analyst stated that with the rules of money changed, the door to the world’s biggest economic boom in the history of the world began in the early 1971. The boom continued as long as the world accepted America funny money, money backed by nothing but a promise by the taxpayers to pay the bills.
Nigeria had her share of the boom. But inflation took off. Party was on, Champaign was on the air. Blinded by greed and easy credit, however, many people either didn’t see or ignored the dire warning signs such system created.
What happened in the 80s? Nigeria economy collapsed with blames on the Politicians who only danced along the party. When President George W. Bush took over, there was such an overwhelmingly bad economy, He pushed through a landmark Bailout plan aimed at saving the economy, saying, “This legislation will safeguard and stabilise America’s financial system and put in place permanent reforms so these problems will never happen again.”
Many took a sigh of relief, thinking finally, the government is going to save them! But analyst pointed out that those are not the words of president George W. Bush. Those are the words of his father, George H. Bush. In 1989 according to reports, the first President Bush asked for $66 billion to save the saving and loan industry. The $66 billion did not solve the problem, it rather disappeared. On top of that, the estimated $66 billion rescue package eventually cost taxpayers over $150 billion more than twice the amount originally estimated. Where did the monies from Babaginda’s Structural Adjustments Programmes go to?
The Federal Reserve System gave politicians the power to borrow money, rather than raise taxes. Debt, however, is a double edged sword that results in either higher taxes or inflation.
Today, we are still where we are with our Imports higher than our exports, bad situation creating hardship for the poor common man and making the rich richer.
Ayade administration is saying, enough is enough. If we must feed in Rice, let produce the rice we feed on first to be enough for us and export instead of import. If we must wear clothes, let us make our clothes enough for ourselves and export instead of import. American economy dropped when production cost became higher and other countries like Japan and today China took advantage. No matter how the monetary policies is manipulated, a production exporting country is far well positioned to face economic crisis than an importing consumption country.
It is therefore, imperative that we turn our creative and thinking skills towards Ayade Industrialisation Policies and save our future generations from extinction.
Cross Riverians, enough of lies and blind politics, let face economic realities.