Samuel Jackson and others want us to believe that a George Weah government has the credibility to print new banknotes in the sum of 35billion and use such amount to replace current Liberian dollars in circulation. They say such a government which is inundated with scandal, scandal, and scandal can do so without increasing the money supply through the dubious infusion of newly printed notes. And thus, avoiding the escalation of the inflation crisis as we will not have billions of LD chasing a small supply of USD in a predominantly import-based economy.
The proponents of this argument say a Weah government, I mean just imagine a Weah government will gradually withdraw old notes from the economy and infuse the new notes to bring the Liberian dollars supply in direct proportion to the total value of the Liberian economy since money is nothing but the standard measure of value of goods and services in an economy. Thus, mitigating inflation and giving credibility to the monetary management of the country. Imagine saying such about a Weah government that steals donor funds at will.
The incompetent government of misfits and career crooks is broke. Weah has no more sources to order money to fund his social escapades at will. Those sources have a run dry! The revenue sources cannot supply the needed revenue to fund a budget which predominantly services GOL wage bill that benefits top officials and victimizes civil servants through low wages. Thus, the only alternative they have in their reach is printing billions of Liberian dollars to fund the budget, pay the debt and give Weah and his cabal millions of Liberian dollars to spend at will. And once the increment in the Liberian dollars supply is not backed by a rise in economic output, the economy will bleed profusely.
Isn’t this the same government that received two consignments of the 15.5 billion in March and April of 2018 and infused such in the economy without withdrawing the mutilated notes? Read the Crane and PIT Reports on the missing 16billion. The Weah government received over 5billion of the printed banknotes through the Free Port of Monrovia. As the Ellen government did, such money was infused into the economy through Central Bank borrowing to finance government expenditure. Expenditures that indicated “Security operation” through the NSA were directed towards the construction of Weah’s properties.
This is why the exchange rate skyrocketed from March 2018 to July 2018. The exchange rate crisis was the basis for the 25million dollars mop-up exercise, an amount that was looted by Samuel Tweah on the order of President Weah. So, comrades, the 35billion is another criminal machination in the making which will impose more hardship on the mass of people. Do not be carried away by Shakespeare’s era economic jargons of Samuel Jackson. Do not be lured by his loose rhetoric. This man is an old-time Monrovia man trying to facilitate the banditry of Weah in exchange for his retirement package that he intends to spend in the US.
The only viable remedy to the inflation quagmire in the Liberian economy is an increase in domestic production of goods and services. That is to add more value to your local economy and reduce the importation of consumer goods to your country. The foreign currency earned from the export of commodities like gold, iron ore, timber, etc. must not be repatriated but rather reinvested or circulated right in the local economy. This will lead to the valuation of your local currency as your people will trade internally with it without hunting for foreign currency to import consumer goods such as onions, pepper, buckets, butter, etc. The hunt for foreign currency will be left to the importation of mainly capital goods – goods or machinery that are used to produce other commodities.
—–Moses Uneh Yamiah, Accra Ghana
Main Photo, Liberian Observer: President Weah