NEWS Puntland Fixing Currency Crisis

[DR OSMAN]

This is great, PL will provide licenses to currency traders, register them, monitor them and ensure their trading the shilling based on Puntland central bank advise and not their own advice.

Currency is a government role and I was suprised how their wasn't much involvement from PL govt before. This is a huge threat area not in terms of losses of goods and products to fake currency, but it can cause instability in your jurisdiction where no-one trades anymore because they have lost faith in the transaction tender, this can also be used as a war tool where enemy states start flooding your market with fakes to cause a market collapse where buyer and seller have no trusted source of currency. This is devastating because it can lead to mass starvation where people won't be able to buy food even.

 

[DR OSMAN]

@Farjano-Walad you are the economist why is it our somali shilling has to be traded with a truck load of tender for what is essentially only $100 dollars which is one note. Why can't we re-do our somali shilling denomination and cull any excess currency floating around, centralize the tender to the puntland central bank and ensure there is no counterfeit printing happening anywhere in puntland. We can then control the currency, register currency traders with licenses, ensure daily exchange rates are following daily market spending need and government advice. Now I do know we don't need billion dollars in puntland market daily, it's not a large economy, but surely we can work out the production and consumption rate daily and print out enough currency to cover that with a slight 'increase or decrease' depending on the season or time.

 

[DR OSMAN]

The Somali Shilling should read at the bottom a 'water mark with security code' and it needs to be highlighted that it was printed by the puntland central bank signature which can only be obtained in high security puntland reserve bank. This will give buyers and sellers confidence inu dawlad ka timid oo gacanta ku hayso daily/monthly/quarterly/yearly supply of currency to support it's economic activities. This is how real economists work it all out. U don't want to under supply or over supply currency and it's a real juggling act

 

[Farjano-Walad]

@Farjano-Walad you are the economist why is it our somali shilling has to be traded with a truck load of tender for what is essentially only $100 dollars which is one note. Why can't we re-do our somali shilling denomination and cull any excess currency floating around, centralize the tender to the puntland central bank and ensure there is no counterfeit printing happening anywhere in puntland. We can then control the currency, register currency traders with licenses, ensure daily exchange rates are following daily market spending need and government advice. Now I do know we don't need billion dollars in puntland market daily, it's not a large economy, but surely we can work out the production and consumption rate daily and print out enough currency to cover that with a slight 'increase or decrease' depending on the season or time.

Cabdi Qasim the HG so called president of so called zooomalia got some Hawiye to hire De La Rue, a Canadian firm that helps central banks print money and water mark them in 2002, the hawiye flooded the market with 36 billion shillings they asked the Canadian firm to print for them in canada,

they created so much inflation that $1 before the Hawiye mafia gang inflation was $1 for 400 somali shillings, with in months they had hyper inflated the currency to 40,000 shillings to $1

before the mafia gang did their inflation, a somali could eat for 400 shillings with breakfast and lunch, now it took 80,000 shillings for both meals

imagine all the poor somalis who had saved in somali shillings, poor families wiped out over night by mafia gnag that become somalis in 1991 who have no idea how to run a state and Allah will question them for that inflation thy have created for it wiped away savings

imagine the somali who had 40,000 somali shillings in savings which was worth $100 but after inflation or rather hyper inflation, that 40,000 somali shilling was worth $1 thanks to brin9ng in billions to wipe out poor folks

Curse be on those who wipe out the savings of poor maskiin folks with fiat money

but the somali is a very localised currency, $1 may buy 18,000 in Kismayo, 22,000 in Doobley, 26,000 in xamar, 36,000 in Hiraan etc - this is because one cannot just bring in a plane load of shillings to take advantage of the arbitrage -exchange rate difference due to being taxed or stopped in the airports and no point in driving from hiraan to garowe to take advantage of the arbitrage since alkabab and gangs and puntland security will stop you no doubt

hence the very strange localised exchange economist like Benjamin Powell of Texas AM Universtiy have written about and economist were not baffled, it was no different than renaissance italian city states at war and their many varied exchange rates

so the blame is fully in the hand of the Puntland so called regional state who created localised bubble hyper inflation, they cranked the print and destroyed the exchange rate of the

the question is which dabyaco is to blame? and somali is a typical African shythole tiny economy like ethiopia where inflation takes weeks to manifest, unlike the well develop US or japan where it takes between 36-48 months to percolate through the economy -

ethiopia is suffering from this, so is puntland, because they screw their money, so is I-dooristan somaliland parts that use somali shilling

which dabyaco authorise to print out somali shillings and flood it to the local puntland market?

the blame starts with your regional government

and if somali shilling was printed en mass in xamar by the mafia ganag in xamar and brought to puntland or even worse by somaliland, then the question is why did puntland security forces sleep on the wheel

Hitler had a plan to print billions in WW" and flooded the UK with fake fiat British pounds,

Nazis tried to flood Europe with fake British banknotes, MI5 files show

Newly released documents reveal the forgeries were so good that unwitting German spymasters bought them to pay agents

www.theguardian.com

 

[Farjano-Walad]

The Somali Shilling should read at the bottom a 'water mark with security code' and it needs to be highlighted that it was printed by the puntland central bank signature which can only be obtained in high security puntland reserve bank. This will give buyers and sellers confidence inu dawlad ka timid oo gacanta ku hayso daily/monthly/quarterly/yearly supply of currency to support it's economic activities. This is how real economists work it all out. U don't want to under supply or over supply currency and it's a real juggling act

None of that will matter if the those in charge of the central will print will nilly shillings and take advantage of the very short term arbitrage since the first user of a new printed money is buying up goods before goods price rise up

you can have all the laws, all regulations, all the latest security, but if Politicians are printing wilily nilly and unable to control and follow their own rules, what is the point?

if you put the fox (politicians) to look after the chickens (state currency) guess what happens mate? politicians will always screw up currencies

criminals actually make up a tiny part of fake currency, the real criminals become disastrous when they become in charge of the region/state and they are called politicians

from Roman emperors, to Mameluke leaders, to Chinese kings, to Chinese dictators, to British socialist leaders to Africana n Arab dictators have always killed their local currency

stop point the finger at outsiders, puntland failed this time and their leaders created this very localised hyper inflation

what is the solution: its one of self control, can an alcohol control, himself if Qamro is next to him?

can a drug addict control himself? your leaders screwed up,

 

[Farjano-Walad]

@Farjano-Walad you are the economist why is it our somali shilling has to be traded with a truck load of tender for what is essentially only $100 dollars which is one note. Why can't we re-do our somali shilling denomination and cull any excess currency floating around, centralize the tender to the puntland central bank and ensure there is no counterfeit printing happening anywhere in puntland. We can then control the currency, register currency traders with licenses, ensure daily exchange rates are following daily market spending need and government advice. Now I do know we don't need billion dollars in puntland market daily, it's not a large economy, but surely we can work out the production and consumption rate daily and print out enough currency to cover that with a slight 'increase or decrease' depending on the season or time.

You can redo it, make a new currency, before Erdogan Turkish lira was 10 million to the dollar after him he took it to 1.3 lira to the dollar after re dominating it but he also created inflation to as much as 11 lira to the dollar though it has stabilised now,

we do it, we need veto for puntland in the central bank so one wild muck from another region does not inflate it away

we need a confederacy central bank where each region has a veto power so galmudug, jubaland etc can block any wild federal attempt to print the currency to oblivion because he needs for a quick inflation robbery

unless you can have a kursi in that central bank and a full veto power, you are useless and a mafia in xamar marehan or hawiye will control you money supply, a somali who became a somali in 1960

we can re dominate the currency, say $1 will be worth 4 shillings, but i will give it 6 months before politicians blow it out and print it to oblivion hahahahhaha

 

[Farjano-Walad]

@Farjano-Walad you are the economist why is it our somali shilling has to be traded with a truck load of tender for what is essentially only $100 dollars which is one note. Why can't we re-do our somali shilling denomination and cull any excess currency floating around, centralize the tender to the puntland central bank and ensure there is no counterfeit printing happening anywhere in puntland. We can then control the currency, register currency traders with licenses, ensure daily exchange rates are following daily market spending need and government advice. Now I do know we don't need billion dollars in puntland market daily, it's not a large economy, but surely we can work out the production and consumption rate daily and print out enough currency to cover that with a slight 'increase or decrease' depending on the season or time.

The US suffered from so much inflation in the 1970s as it come off the gold standard no one trusted her currency, the king dollar, not some third world BS,

believe it or not by the president carter was forced to issue US bonds in 1977 Using Swiss money, because the swiss was backed by gold till 1999, people trusted being paid back in swiss than king dollar, this was an embarrassment for the US and they could not recover form it until Reagan hired a free market economist called Volker - if it was not for him the US would be in the toilet,

Britain screwed up her currency so badly by 1970s they had to beg the IMF twice to be bailed out, this is why she joined the ERM with Germany so German can supervise the UK money supply, the west Germans had the best currency next to the swiss - the UK hated this as the Germans were calling the shots in order for lenders to give loans to the UK , oh how far they have fallen

in fact, France, Italy, and many communist states and even Spain ,Portugal used the west German Mark when issuing bonds as no one trusted their shithole currency that can be mass printed any day

the euro is actually based on the German mark - so relax much bigger nations have been there, they have screwed up, Africans are just much much worse at it

siad barre and the 1960-1969 governments both miss used the currency and killed it relative to the Britton woods agreements fixed dollar rates

 

[Farjano-Walad]

@Farjano-Walad you are the economist why is it our somali shilling has to be traded with a truck load of tender for what is essentially only $100 dollars which is one note. Why can't we re-do our somali shilling denomination and cull any excess currency floating around, centralize the tender to the puntland central bank and ensure there is no counterfeit printing happening anywhere in puntland. We can then control the currency, register currency traders with licenses, ensure daily exchange rates are following daily market spending need and government advice. Now I do know we don't need billion dollars in puntland market daily, it's not a large economy, but surely we can work out the production and consumption rate daily and print out enough currency to cover that with a slight 'increase or decrease' depending on the season or time.

If i was president of Jubaland or Ogadeniya tomorrow and both nations were independent insha Allah

1) i would create a independence currency board/central bank that will have full powers where No state or government minister or person can veto or block their decision - these guys are not involved in day to day running n of the state and do not have a 4 years short term view but will be there for years - short termism leaders here today gone tomorrow screw up nations and kill currencies

2) I would back the money with gold for notes and silver for the coins, meaning for every bank note there will be a certain amount of gold reserve, this limits manipulating money printing, think about it, if the board or government wishes to inflate the money supply over night, it will not happen as she has to find gold and silver to back each new note they print - this is called the gold/silver standard

3) make sure the state does not borrow a single extra dollar, if they get 500 million, they cannot spend a penny more than this - this is why printing happens and why IMF can over throw nations with the CIA - they let you borrow today then come for the pound of flesh tomorrow

4) i would force a constitution where each government is only allowed to spend 75% of what they collect, and save the remaining 25% as aback up

5) private as much as i can, why are goevermtn trying to running every thing under the sun? let the private sector build ports, airports and charge a fee, if you do not like it build yuor own damn port, roads, hospitals etc

6) a lot of welfare goes to very well connected wealthy business owners, no thanks, no more state subsidies for firms, die or compete

7) only spend money on disabled, orphans, widows, defence and courts - why is the state giving money to ex prisoners who are healthy and able bodied, why do states give money to a 16 year old who got pregnant after a one night stand, robbing sahra to pay for amy is wrong when amy is healthy, young and can work,

8) give the president a nice package on condition he does not rob money, when he finishes his term give him a seat in the senate for life and money and security when out of office, this is the main reason African leaders rob their nations, they know no one will take care of them, us presidents and vice presidents get life time protection, 1 million each year just to travel after office and their wives until they die - give him incentives

9_ lower taxes, they discourage investment and hard work, regressive tax is evil, the more you make, they more you pay , why? flat low tax so people can keep more of their hard earned money

10) independent courts to curb corruption, US judges cannot be sacked unless he/she committed offence, when they can be replaced every few years they kotow to leaders and not able to stand up to them, life time hiring until they commit a crime or are disabled or really old

printing money wily nilly is a big incentive when the state over spends thus we need to curb this by forcing the state to stop spending money everywhere, why is the US government giving millions of dollars to Pakistani transvestites ? Pork Bills

all this can only happen when top leaders really care about their nation and will not rob it blind, so a nation and her money is only as honest as the people who lead it,

 

[DR OSMAN]

@Farjano-Walad I still not buying into the fiat currency vs gold standard argument, that is very old conspiracies about govt printing money out of thin air nonsense, no-one is going to print shit if goods/products do not match the value of what is printed. It's far easier to manage global world with fiat currency then gold because the world was never connected like it is now and why gold was needed before, there wasn't a super power with global market connection like it is now.

The US dollar or for that matter cow shit hadi lagu heeshiye aduunka is good as gold, it's the 'trust' element that is needed not the 'gold element' as u think. It doesn't matter where I take my USD around the world, it's value is as good as gold due to global trust given to it. It is the largest economy in the world and therefore the supply of it will be large, your talking 18 trillion dollars worth of goods and services in america, so the pool of usd dollar globally is going to be huge, only the european union comes close and it's startiing to crumble.

 

[Farjano-Walad]

@Farjano-Walad I still not buying into the fiat currency vs gold standard argument, that is very old conspiracies about govt printing money out of thin air nonsense, no-one is going to print shit if goods/products do not match the value of what is printed. It's far easier to manage global world with fiat currency then gold because the world was never connected like it is now and why gold was needed before, there wasn't a super power with global market connection like it is now.

The US dollar or for that matter cow shit hadi lagu heeshiye aduunka is good as gold, it's the 'trust' element that is needed not the 'gold element' as u think. It doesn't matter where I take my USD around the world, it's value is as good as gold due to global trust given to it. It is the largest economy in the world and therefore the supply of it will be large, your talking 18 trillion dollars worth of goods and services in america, so the pool of usd dollar globally is going to be huge, only the european union comes close and it's startiing to crumble.

Then you must explain why the US being the biggest economy on earth in late 1970s had to issue bonds in Swiss franc as people refused to accept bonds issued in US dollars due to high american inflation ,

i genuinely dont think you understand economics or how monetary policy or currency works,

yet you have the audacity to bark and yap about policies and theorems about something you are totally clueless about

leave economics to the economists, stick to your IT field

i am not gona waste my time talking to you about economics or monetary policy, its like an astronaut talking to a caveman about space travel, i have better things to do when people who are not economists refuse to first get educated yet have the kibir to waffle on about a topic they have not clue about

 

[DR OSMAN]

@Farjano-Walad Come on don't run like that, I also tag you in economist topics as it is your area of expertise but 'trust element' is far more important in currency then the 'gold element', when u have 18 trillion dollar economy backing your currency, I am pretty sure that is safe and good or even better then gold plus it's cheaper to produce fiat then it is to extract 18 trillion dollar worth of gold