Near panic is spreading in Wall Street following reports that South Sudan is threatening to devalue all 160 billion US dollars “within its reach” as a bold reaction to the recently imposed arms embargo on the country, and has given Trump’s administration a week to reverse their actions or face their own demise – a spokesperson of the government told reporters today.
The sudden but unexpected move comes shortly after the United States government announced it will impose sanctions on President Salva Kiir’s government in order to stop it killing its own citizens and to end the civil war which is the world’s worst humanitarian crisis in the world’s newest nation.
Previous responses by the government of President Salva Kiir came in the form of unsynchronised reactionary statements, through Vice President Taban Deng, saying the USA has never been of any help to the people of South Sudan; that the US is becoming an enemy of state and that the US is not even like China or Russia that donates and supplies food rations directly to government officials.
This latest threat to devalue the US dollar in South Sudan and ban its use, local experts say, will send Wall Street into a tail-spin and threatens an unprecedented financial crisis which economists fear may even lead to the total collapse of the US economy!
With over 160 billion US dollars believed to be hiding in South Sudan bank vaults or stored “under their mattresses”, more and more experts are trying to explain the seriousness of the threat to mere mortals like the US President who provoked this reaction by the young nation and alerts him to the error of imposing an arms embargo on South Sudan.
According to @Saa_kam’s resident money expert, Dr. Kak Akwa, this is a very serious threat and South Sudan is probably the only country that has all the necessary variables perfectly lined up to carry out this rare and strategic economic phenomenon.
“What the economics geniuses of South Sudan are trying to do here is called an economic ‘KARAKACHAK’… it is when a young baby failed nation with a non-existent economy has billions of another country’s currency in its control. What it can do is declare that currency worthless – meaning what was 100 US dollars becomes negative 100 US dollars. If anyone had 100 dollars before the ‘KARAKACHAK’, they will automatically not only have nothing, but will owe an equivalent of that money to mainly the government! Soon, all those people working for NGOs who are being paid in US dollars will refuse to touch their salaries, because the government will be counting that in the negative sum! The last time that happened was when the Romans invaded Britannia in 434AD… the locals did a ‘KARAKACHAK’ and the Romans had to withdraw from that island as they started paying the locals taxes instead of collecting taxes from them… This is essentially the smartest move South Sudan has ever done in years!”
If South Sudan decides to go ahead with the move, Wall Street and the world markets will risk experiencing a monetary vacuum of up negative/deficit 320 billion US dollars as a result.
“It is like an economic black hole… money, like matter and energy, cannot be lost. It is transformed from one form to another…. So what South Sudan will effectively gain from this, if the world economy does not collapse, is that its South Sudanese pound can become anything they want it to become.”
As money becomes tighter and tighter for the majority of South Sudanese this threat of action by the government is generally being viewed as welcome news to the beleaguered SSP currency, however it is too early to know whether the threat of ‘KARAKACHAK’ will have the desired effect or not.
As a developing story Saakam will keep you informed of any updates as they happen.