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Nigeria Raises Rates, Devalues To Defend Collapsing Currency As Oil-Price Blowback Spreads
Having exposed the demise of various oil-producing nations' currencies previously, it is noteworthy that Nigeria folded today and devalued the Naira peg to the USDollar by over 8% from 155 to 168 and widened its 'intervention' bands from 3% to 5% (the upper band is where the market is trading). Furthermore, the central bank raised rates from 12% to 13%.
All oil-producing nations are seeing dramatic pressure on their currencies since oil topped...
Forcing Nigeria to devalue...
The adjusted peg appears to 'try' to cap the collapse of the currency at current levels after the old peg-band was crushed a few weeks ago... and Nigeria is rapidly running out of reserves to defend its currency.
Unfortunately, the currency remains notably weaker...
Charts: Bloomberg
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Does Nigeria have gold and oil? Tell the rest of the world to go fuck themselves and use the gold to establish your own bank and the oil to run our own economy...
Excuse me Mr. Physics. We're from the government and we'd like to have a few words with you.
Sure, come right in. Please have a seat in that chair right there...
"Oh, the irony of it all." syas Mr Physics sitting down in the chair whcih is suppoded to be inside thebox in the other room, " The Arabs were the big sellers of slaves to the white people during the way back then years. Now, the Arabs collapse the price of oil to whatever to the white people and the blacks come out on the short end of the lollipop, again. Sad. T'is a sad sad world." as the chair disappears leaving indica of both particles and wave functions.
Knucks, you gotta quit watching those narcissistic, self-pumping Stephen Hawking movies.....
Actually, with an avocation of Quantum Mechanics, I find Hawking somewhat disappointing.
A little off-topic for a good question:
Why is it the looters never ever loot a Bank, just 7/11's ....do they need more education?
Unlike delusional pensioners, they realize the banks are empty.
If it was a bank they know the cops would shoot them dead. If its private mom and pop stores they know the cops dont give a damn. Dont mess with the bankers who trickle down cash to local cops.
Yep. Look, you can't fix stupid. Full stop, don't even try, just wasting your time and potentially risking your own life. Trust me, stupid kills.
Same as it ever was.
Thanks Boys, I thought it was me,....yup... you can't fix stupid...
Because banks don't have cheetos
Meh.
Its Africa.
The all mighty petrodollar strikes again. This fiat puppy ain't dead just yet. Plenty more tricks up the US Gvt/Fed sleeve.
Nigeria is potentially a very explosive country, it can flare up any minute if the situation continues to worsen. Very good potential for US involvement in bringing "democracy" in there all in the name of fighting Boko Haram... watch Nigeria!
Excuse me, but please give the 'mercs' some credit. Who the fuck do you think is in there making sure things are "explosive". Have a look at 'merican foreign policy over the last 100 years or so.
Don't get me wrong, I think we're on the same page here :)
in John Wayne voice
"Then we oughta just quit pussy footin' around an get our boys in there to free the gold and oil, pilgrim"
Never-mind "Procol Harum", using the immutable mathematics of exponential growth, the last Nigerians succumbed to Ebola this week.
And no Americans will make it to XMAS!!
Ebola and mathematics, bitches!!
Go get an Ebola vaccine shot, bitch!
This is such amazing luck! Its dovetailing very nicely with my current investment strategy in Nigeria- see, this guy from Nigeria e-mailed me just last week. His name is Dr. Johnathan Goodfaith and he is a a doctor, a minister AND a close personal friend of the King of Nigeria himself!! Anyway, he needs my help to move about $200 million in "surplus funds" that the King says is destroying their economy and all I have to do is add him to my bank account and text him my info and a couple thousand to pay for the transaction fees! Those Nigerians are such noble folk... Well, I'm off to the bank to get incredibly rich beyond my wildest dreams!
Eternally yours in trust and blessingness,
Asscannon101
Oh the days of wine n roses, when oil was king.
Now Oil is the harem slave of Saud (what we don't know is for how long).
And Nigeria pays for being an Oligarchy clown run by those minions of Oil's past glory : The Seven Sisters.
Shell's Nigerian enclave is now toast buttered on one side by local corruption and roasted on the other by Shellacking bamboozling.
As the man said : When your cost of production is 4 $/bbl on old conventional fields, all depreciated, when your selling price is 100$/bbl for the 2009-2014 type years, what happens to that 96$/bbl gravy train (for 40 years at 2 million bbl/d production) is what makes this Oligarchy world go round, a constant source just for Nigerian production !
For your info : 2 millon bbl/d @ 96 $/bbl operating margin after amortisation, works out as Oligarchy gravy of : 63 billion $/Yr.
Over 40 years, and that current $ margin was 9 $/bbl in 1974--(which works out at 99 $/bbl today aka in terms of inflation), making that 96$/bbl margin a CONSTANT money indicator-- we accumulate 2.5 trillion current $ that have been split 3 ways : Oil majors, Local political overlords + American "big stick" cover; aka money paid to Uncle Sam for MIC/CIA type protection of its anointed political class, western minions, (whence the US bases all over the world, paid by local commodity and opium poppy fields type "rent").
And this Mantra has been applied all over the world. In Françafrique (Gabon/Fr Congo), in Mobutu land (other Congo) and in Angola (since it became part of Western satrapy in 1980s).
And, of course, its been the mainstay of US/Seven Sister power in the PLUM orchard of Saud and ME monarchies.
Thats how rich the margins have been from a collective production of around 20-30 million bbl/day for Uncle Sam's big stick policy ROI (all controlled by the Banksta oligarchy) and for the coffers of its Seven Sister Oil oligarchy.
From the Halls of Montezuma to the shores of Tripoli the US controlled the PRIME PLUM of Commodity RENT.
Now there is no more unilateral hegemony, Dear Henry's construct.
NWO's mindless, hubristic mayhem has destroyed that Garden of the Hesperides for Europe and USA oligarchies ( only worse for its people who get double doses of pain, increasing govt. debt and increasing govt. taxes).
If it's bad for Nigeria it's fine by me. Every time I went there got my laptop stolen, no matter how careful I was.
Just in time for the general elections :)
recovery/risk on headline just hit the tape lol:
DOUBLELINE’S JEFF GUNDLACH SAYS HE COULD SEE THE US 10-YEAR FALLING TO 1% - CNBC
gundlach's translation = we're all f'd