THE BOMBS THAT ARE ABOUT TO ENGULF NIGERIA AND OTHER AFRICAN NATIONS
Authored By; Christopher Okoli April 5th 2017
(Nigerian-American wisdom-based Investment Advisor)
For More details on fueling the bombs click on the link; https://cokoli.blog/2016/02/01/robotically-and-technologically-destroying-mankind/
For decades, African leaders did their best to continually mismanage the continent’s resources, thereby, contributing to the underdevelopment of the once great continent. However, Military interventions in the governance of member countries helped to create powerfully dreaded, untouchable and fearful dictators that destroyed democratic institutions of checks and balances with a looting spree surge, chronic corruption became acceptable means of modern businesses in the continent.
The resources that were earmarked for future population growth were shared among the political elites. Money that was even budgeted to fight radical religious groups, build hospitals, infrastructures, and educational institutions was grossly and recklessly looted, while developed nations adamantly ignored the yearly inorganic ( make believe ) growth that was going on in the continent. In the quest for Western world selling globalization to the continent, African leaders were secretly encouraged and motivated to loot the African treasuries, for in so doing, many Africans started their endless migration to industrialized nations in search of greener pastures.
The political elites and their loved ones travel outside the shores of Africa for most of their medical, educational and shopping needs, while the poor masses are left to die in numbers from the effects of gross continuous mismanagement. The chips are now down, because the migrants’ crisis and advanced technology are on the verge of creating the worst economic crisis in the history of mankind (Bombs bigger than Hiroshima). Here are some of the reasons the currently adopted monetary and fiscal policies by many African countries are failure bound; Global Migrant Crisis, Decaying Global Economy, Crude Oil sliding to $25 per barrel, Increase in Global interest rates, and Global currency devaluation war.
Global Migrant Crisis: The global migrant crisis was the primary reason that drove Britons to vote in June 26th to exit from the European Union. Americans have now voted to close their borders and I expect other countries to join the new paradigm sheet of de-globalization. Globalization, which was sold to the world as a peaceful and business promoting tool suddenly took an unexpected draw back and is now coming to a painful end. Where does this issue of de-globalization leave Africa and other poor countries that are preparing for mass exodus from their countries because of their terrible economic environments? What a crude world of manipulators where the poor are getting poorer while the rich continue to swim in enormous wealth. Expect many commercial banks in African countries to file for bankruptcies as their currencies lose values and their US Dollar-denominated debts mounts in the coming months.
Decaying Global Economy:
The global economy that has been trying to recover from the 2008 credit crunch induced recession, gradually turned into a snail’s pace and became the worst recovery in the history of mankind because trillions of dollars were yearly injected into the global economy without adequate job creations and economic growth. The world economy is about to relapse into a more severe recession that would likely slide into the worst Great Economic Depression. Watch out for my upcoming article on the march to Great Depression.
Crude Oil sliding to $25 per barrel
I have been trying to find reasons that would push crude oil prices to the $70s price range but could not come up with any justifiable reason, meanwhile, African leaders have been configured to believe that the prices are going back to even the $80s; such conviction have made the leaders to not restructure their economies away from crude oil based. The borrowing spree by African leaders to pay fat salaries of the political elites and shore up the values of their over-valued currencies is simply a perfect storm for economic disaster. Decreasing productivity, plus increasing debts, plus increasing interest rates = Economic failure and social disaster. There are still ways out for countries and commercial banks that would want to survive the BIG BOMBS.
Increase in global interest rate charges
The prolonged global low interest rates has now turned into a global economic and financial enigma that is seriously yearning for an immediate solution. How long can the American Federal Reserve chairlady Janet Yelling hold global interest rates down? Rising global interest rates will definitely destroy many emerging and under developing economies, while prolonged low global interest rates will use inflation to collapse global financial system. Which of the two evils will a country be willing to accept now? Expect Janet Yelling of the American Federal Reserve Bank to let go of the fed fund rate that would help to determine the new global high interest rate charges, the world should be ready for 1 or 2 more interest rate hikes by December 2017.
Global currency devaluation war
Nigeria and some other African countries are now borrowing money simply to pay salaries of the political elites and at the same time, trying to save their downward sliding currencies. This monetary policy is actually adding more fire power to the BIG BOMBS heading to the continent because other countries are devaluing their currencies to have distinctive advantage over the shrinking export market at the same time African countries are trying to shore up the values of their unproductive and inflated currencies.
Here are some of the fast ticking time bombs that African leaders must quickly defuse before they go off.
- How in the world can some African leaders be borrowing money to pay salaries of their big and bloated governments?
- Spending billions of Dollars to hold down the fx rates against their over-valued currencies while the majority of other countries are seriously devaluing their currencies?
- Borrowing money to also hide their unproductiveness and save their over inflated currencies, thereby increasing their outstanding debts? What kind of dumb monetary policy and voodoo economy is that?
I really don’t want to sound immodest, but unless African member countries can quickly monetize their hidden assets, stop fighting fx market forces, cut at least Fifty percent of governance costs(recurrent expenditures), and aggressively fight chronic corruption, then the fast approaching global recession will most likely create the worst economic and humanitarian havocs in the continent. Arise O Africa! Confront your challenges head on and start moving forward because you have been wondering in a terrible vicious circle for decades. African leaders have to seriously consider putting a stop to the ongoing looting spree, because the surging unemployed youths might fiercely descend on the political elites one day (unguided revolution). De- globalization started because of migrants crisis and advanced technology(robots that are stealing jobs from mankind), and Africa will be the ultimate loser, without adequate planning to reposition the continent’s abundant resources in the new paradigm shift. For more details, just click on the link below.
African member countries are likely to lose anywhere between 100% – 300% values of their currencies before the end of 2017. Nigeria and other countries that are aggressively spending their depleting foreign reserves and borrowing to stabilize their currencies will likely be the most negatively affected in the coming months.
Africa should be reminded that the road to greatness requires some painful sacrifices; therefore, trying to circumvent the pains that come with the march towards greatness can only prolong and endanger the needed sacrifices to improve the quality of lives in the continent. Find and monetize your hidden assets, cut off 50% of recurrent expenditures, reduce chronic corruption, rebuild your learning institutions, build infrastructures and start moving the continent forward.
God Bless America
Blog Page; cokoli.blog
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Crude World of Oil, “Africa – Emerging or Tapering Continent”, “African Dilemma” and “Nigerian Promising Era”.