Kaperoni, The IMF, CBI & A Float.

[Luigi1]

Luigi asks...

Could The Kaps had been right all along about the IQD float?

Will the Dinar come out around .01 cent to.10 cents to the USD, then float from there?

Getting rich slowly sure beats a LOP. IMO.

Make mine a root beer float while your at it.

Treat this as a rumor. Not varafied. Your opine.

 

 

 

9-21-2019   Newshound Guru Kaperoni  

If they launch the market economy as they have been aggressively trying to move towards and have presented it to be included in the budget of 2020, then I see NO REASON FOR A LOP...at that point I would see the CBI...MOVING TO A FLOAT to allow the currency to appreciate to offset inflationary pressure created by that influx of capital...Remember the number one job of the CBI is to maintain monetary policy and reduce inflation...The IMF is specifically referencing the Balassa -Samuelson effect as the outcome for the dinar. That is a fact...

QUOTE: "staff encouraged the authorities to consider creating the conditions which would make possible a move to A MORE FLEXIBLE EXCHANGE RATE POLICY. Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect,"    The IMF IS ASKING THE CBI TO CREATE THE CONDITIONS TO FLOAT the currency to allow it to appreciate BASED ON THE Balassa -Samuelson effect...

[Adam Montana]

1 hour ago, Luigi1 said:

Will the Dinar come out around .01 cent to.10 cents to the USD, then float from there?

 

I think I've heard people suggest 10 cents to the dollar... I'll dig around and see if I can find a source

 

[Freedomwish]

28 minutes ago, Adam Montana said:

 

I think I've heard people suggest 10 cents to the dollar... I'll dig around and see if I can find a source

 

 

We're all down for anything, ready to receive that text message whenever you're set to hit that send button!! 

[gregp]

48 minutes ago, Adam Montana said:

 

I think I've heard people suggest 10 cents to the dollar... I'll dig around and see if I can find a source

 

 

Please.....anything right now.  

[NWGUY]

I would really like to float to the bank, with my Dinar!!!

[DinarThug]

2 hours ago, Luigi1 said:

Luigi asks...

Could The Kaps had been right all along about the IQD float?

 

Weegie, Next Time U See A Floater - Just Flush It !  

 

     

[bkeiller]

I like the idea of a dinar raft!

Folks have told me that my dinar is best used for wallpaper, but it is red ... F.F.S.! And, I will be using it, instead, to take some walls down and renovating, all going well.

Edited September 21, 2019 by bkeiller
typo

[wizard1]

I have been around for a long time in and out of the money game but I have never heard of the Balassa-Samuelson effect can someone explain it. I also think the float is a good safe bet so push the button and get er done.

[ChuckFinley]

 

 

ECONOMY  ECONOMICS

Balassa-Samuelson Effect

 

REVIEWED BY WILL KENTON

 

 Updated Apr 25, 2018

The Balassa-Samuelson Effect is a phrase that describes the result when countries with high productivity growth also experience high wage growth, which leads to higher real exchange rates. The Balassa-Samuelson Effect suggests that an increase in wages in the tradable goods sector of an emerging economy will also lead to higher wages in the non-tradable (service) sector of the economy. The accompanying increase in inflation makes inflation rates higher in faster-growing economies than it is in slow growing economies. The Balassa-Samuelson Effect was proposed by economists Bela Balassa and Paul Samuelson in 1963.

 

Breaking Down Balassa-Samuelson Effect

The Balassa-Samuelson Effect suggests that the optimal inflation rate for developing economies is higher than it is for developed countries. Developing economies grow by becoming more productive and using land, labor, and capital more efficiently. This results in wage growth in both the tradable good and non-tradable good components of an economy. People consume more goods and services as their wages increase, which in turn pushes up prices.

 

How the Balassa-Samuelson Effect Holds up Developing Countries

As emerging economies develop and become more productive, they also see increased wages, but they see these increases in both tradable and non-tradable goods sectors of the economy. When wages increase at a slower rate than productivity, countries wind up producing more than they can consume. These countries then have a current-account surplus. When wages grow faster than the productivity rate, workers consumer more goods, and the current-account surplus falls.

 

There can be imbalances regarding wages and prices for tradable and non-tradable goods that run counter to the Balassa-Samuelson Effect. For example, tradable goods that can readily be sold in other nations might not see much price difference in other markets. However, non-tradable services and goods could see pricing and wages that reflect their local economies. The salaries of workers who perform the same jobs in different nations can still see drastically different wages despite high productivity growth. The personal services provided by a driver, a barber or a doctor are not tradable goods, for example, and may see deeply discounted rates in developing countries. This can occur regardless of productivity levels and stem from the economic imbalance with more developed countries.

 

The effect an appreciating real exchange rate has on an emerging economy depends on whether the country has a fixed exchange rate or floating exchange rate. Fixed-exchange-rate economies will see an increase in overall prices while floating exchange rates will see increases in the exchange rate

[happygilmores]

At 0.10 I am so GOOOONE!!!!!!!!!!!!!

[Floridian]

I thought it might come out at 10 cents because of this - At 10 cents, 100,000 IQD = $10,000

I posted this a while back.

---

Currency

Currency Import regulations:

Local currency (Iraqi Dinar-IQD) and foreign currencies: must be declared on arrival. 

Currency Export regulations:

1. Nationals or residents of Iraq being older than 18 years of age:
a. local currency (Iraqi Dinar-IQD): up to a maximum of IQD 100,000.-;
b. foreign currencies: up to a maximum of USD 10,000.- or equivalent. 
2. All other passengers: up to the amount imported and declared.

 

https://www.iatatravelcentre.com/IQ-Iraq-customs-currency-airport-tax-regulations-details.htm#Currency

[Laid Back]

If it come out at $.10 still a very good profit $100,000 per million dinar before tax.

 

Go RV asap 

Go Go Go

[Luigi1]

5 hours ago, Adam Montana said:

 

I think I've heard people suggest 10 cents to the dollar... I'll dig around and see if I can find a source

 

 

Thanks. There were several Guru threads out just last week about a controlled float.

There is also the possibility the IMF may give CBI special permission to go to a dirty float.

In other words they won't be locked in to  a 2.5% change every quarter.

The reason why. Iraq is vulnerable to runaway inflation if not put in check. IMO.

[ChuckFinley]

5 hours ago, Adam Montana said:

 

I think I've heard people suggest 10 cents to the dollar... I'll dig around and see if I can find a source

 

 

1 hour ago, happygilmores said:

At 0.10 I am so GOOOONE!!!!!!!!!!!!!

 

31 minutes ago, Floridian said:

I thought it might come out at 10 cents because of this - At 10 cents, 100,000 IQD = $10,000

I posted this a while back.

---

Currency

Currency Import regulations:

Local currency (Iraqi Dinar-IQD) and foreign currencies: must be declared on arrival. 

Currency Export regulations:

1. Nationals or residents of Iraq being older than 18 years of age:
a. local currency (Iraqi Dinar-IQD): up to a maximum of IQD 100,000.-;
b. foreign currencies: up to a maximum of USD 10,000.- or equivalent. 
2. All other passengers: up to the amount imported and declared.

 

https://www.iatatravelcentre.com/IQ-Iraq-customs-currency-airport-tax-regulations-details.htm#Currency

 

23 minutes ago, Laid Back said:

If it come out at $.10 still a very good profit $100,000 per million dinar before tax.

 

Go RV asap 

Go Go Go

This is a great starting point. If you are in some of VIP and lessoned to some of Adam's old call in shows, at .10 we should be able to invest our way to freedom. 

 

Let get closure before Oct baby.  

[Luigi1]

4 hours ago, DinarThug said:

 

Weegie, Next Time U See A Floater - Just Flush It !  

 

     

 

I did a double flush because it's a long ways to Hardee's.

[keylime]

"Fixed-exchange-rate economies will see an increase in overall prices while floating exchange rates will see increases in the exchange rate."

I vote for a floating exchange rate!

 

[Stabstones]

Delete 3 zero programme..  1:1 for me..

[King Bean]

        The SIGIR report to Congress back in 2012 (?) theorized the rate would hover around $1.17.

        But they didn't suggest it would get there VIA a float or an immediate RV, followed by a float.

So we wait. But I'm with all those who say.....just start SOMEWHERE !!  And NOW would be a great time.

                                                The Kap and Luigi show is getting old. LOL.

 

             

Edited September 22, 2019 by King Bean

[Donziman]

King B. i was expecting a clip of you" Floating" into a sunset on a sea of Dinar. ha!!!

[Gunnytex]

This thread is a stark reminder that something else Floats too.