Saturday, June 23, 2018


6-23-2018   Newshound Guru Kaperoni   I saw...that someone posted that they expected Iraq to get into the WTO soon...it's not happening but a year-and-a-half ago the WTO told Iraq until they reduce the dependence on oil there's no chance...I believe the number they said was 70%.  Iraq has a long ways to go before they're ready for the WTO. The reference of the WTO in itself does encourage currency reform which is a good thing In other words before Iraq gets in the WTO they're going to need a private sector and begin to produce exports that will reduce the dependence on oil then they'll be ready for the WTO.


6-23-2018  Newshound Guru Breitling  People are always asking, “Is this going to be a slow float or is it going to be fast?”  I think there is going to be a hard revaluation and it goes up from there.  But what if there is a small float in-between?  It doesn’t mean anything.  They are going to have to add a real value to their currency.  Otherwise they are not going to be able to financially make it.  They can maintain, but their country is going to come apart…I think it’s coming down the road fast…

6-23-2018   Newshound/Intel Guru Mnt Goat   Thus, the dinar is still to be pegged (and must be pegged to something) and yet can still be put on a float. The IMF has told us many times they fully intent to peg the dinar on an SDR basket of 5 currencies initially and then allow it to go on a managed free float. ...This is all spelled out already by the CBI years ago what they intend to do. But the important part here I want to emphasize is that when the CBI changes over from the de-facto peg of just the US dollar to the SDR basket, a new rate must be re-established according to the new peg, the SDR basket...This new peg adjustment to the rate is the rate everyone is talking about when they refer to an RV.  [post 3 of 3]

6-23-2018   Newshound/Intel Guru Mnt Goat   I do not agree with his analysis...on this issue of a Float vs Peg. [reference Guru Kaperoni post 6-19-2018, part 2]  ...the “peg” that the Iraqi dinar is currently on is a “de facto” peg, pegged to the US dollar only. A currency, any currency, must be pegged to something to stabilize it’s value thus something to relate it to. Putting the dinar on a float and pegging the dinar are entirely two different things...It is not one or the other...but BOTH.  A currency can still be pegged and the also placed on a managed float at the same time. These are two different tools. The float allows for ease of fluctuations in the rate as demand suggests in the market. A peg is used to attach a currency to another country’s currency (or countries currencies) to stabilize it’s value and spread the risk (so that if one fails the others still maintain some value and they all don’t crash).   [post 2 of 3....stay tuned]

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