SOME + PASTORS + ARE WORSENING THE INFLATION IN OUR ECONOMY

When I told my friend Judith that I was broke, she just gave me a short stare and went back to her washing. After about 2 minutes, she broke the silence and reminded me that she had invited me to her church several times in the past but I have refused
to attend.

“Have you ever heard that I went broke?”

She asked.

“My pastor teaches us that children of the Almighty should never lack. Almost every Sunday in my church, different people who are broke get ‘DIVINE ALERTS’, ranging between 5,000 and 20,000”, she said.

“DIVINE ALERTS!”

“From what source?”

“To which bank?”

“Who is listed as the sender?” I inquired.

She told me that the money just enters your phone ‘ON A SUNDAY’ with no one listed as the sender.

DIVINE ALERTS? ... Wow! As an ECONOMIST, my mind quickly went to work, not contemplating the possibility of such a miracle but the likely economic consequences of such ‘divine alerts’. There are approximately 52 Sundays in a year. Let’s assume that at least 2 persons get such an alert in the amount 10,000 naira every Sunday; multiply 20,000 naira every Sunday by 52 Sundays. That’s a total of 1.04 million naira added to the economy, which is not generated from within the economy; extra money that is not as a result of any production process, not printed by the central bank nor created by commercial banks and hence not accounted for in the Central banks’ control on the amount of money in circulation. This situation will inevitably have some inflationary effects on the economy.

Recall that inflation occurs when there is too much money chasing too few goods in an economy. It can also be seen as a situation where the goods produced in the economy is not enough for all those who have money and are willing to buy them. In such a case, there is a rise in the price of goods and service and an inherent reduction in the value of the currency. The simplest cause of this phenomenon is too much money being in circulation. Such a case is clearly seen in our economy today. Our inflation rate is at 18.55% which is a very high figure.

Read this http://ijeomaudechukwu.blogspot.com.ng/2016/03/inflation-explained-in-its-simplest.html to understand inflation fully

These divine alerts which come from outside the economy will only increase the amount of money in circulation in the economy without any commiserate increment in the goods and services which the money can be bought with...

The result...

Increased inflation

Are these so called DIVINE ALERTS real?

Will the Almighty purposely send money that will inflate our economy?

Did I go to Judith’s church to explain this to her pastor?

Well that’s story for another day.