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rockfl9

RV will not fix Iraqs problem !!! It is BROKE.

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I mean the bank reserves ARE ALL GONE. IF you read the fine print they were used to pay the May salaries.

If you divide ZERO reserves by 88 Trillion dina the NEW rate is . followed by a LOT of ZEROS. When the dealers find that out it will be a fire sale.IF they have any to sell that is. What is worse is that the oil companies have not been paid so shipments will  be constrained.

 

 

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Well they can always print more LOL.  Seems like thats what the FED is doing. Already seeing some inflation but its gonna get worse. 

Bad idea handing out free money. Lots of people collecting unenjoyment don't want to get back to work.  My laid off employees dont.

That extra $600 is gonna backfire on us.!!!I got my PPP loan and will end up giving over 50% of it back after my 8 weeks are up. And those employees not wanting to come back are done. I told them dont use my name as a reference.

 

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Iraq cannot create USD !!!!   The CBI/MOF exchange rate is a MANAGED RATE.   It really is NOT a true Pegged rate.  If you opened eyes you would have noticed  that  the shortfalls in the last 2 budgets were covered by borrowing from the CBI reserves using dollar denominated IOU's …  The hard currency is GONE $40 Bn  worth.   NOW the new government has used what was left to pay April and May salaries AND that wasn't enough so they used the reserves of the other two government banks as well.  So in reality  the dinar is now backed by  $60Bn  

in GOI bonds that we know they in all probability will NEVER be able to pay off. However it is a legal move of sorts at this time .  The situation will change if/when the GOI DEFAULTS  and its credit status is JUNK.

A managed rate can be anything the government needs to keep commerce moving INSIDE of the country.  Outside the country the rate is set by the currency market on a supply/demand basis. Iraq is in a unique  position in that it has never officially exchanged their currency outside of the country. So no one  outside can demand an exchange of dinar for any other currency. This is the reason it is not on FOREX. AND may never be!!!

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Continued. 

IF the bonds go into DEFAULT the CBI is BANKRUPT and thus would have no standing as an International institution.  That is only a logical conclusion .. But in todays world some thing would have to serve as an exchange agent for the GOI at least on a cash in/out basis.

Iraq's  oil dollars would be collected and paid out thru Banks in other countries. 

I know I am painting a bleak picture for Dinarians to expect an RV of any size that would be profitable . But it is a cruel world .

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1 hour ago, Markinsa said:

@rockfl9  You really need to get a life and a girlfriend.

Classic!!!!!!!!😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣😂👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍🇺🇸
 

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2 hours ago, Markinsa said:

@rockfl9  You really need to get a life and a girlfriend.

 

1 hour ago, CSM (R) Thack said:

Classic!!!!!!!!😂😂😂😂😂😂😂😂😂🤣🤣🤣🤣🤣😂👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍🇺🇸
 

For a minute there I thought it said - get a wife and a girlfriend.   😄

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8 minutes ago, ChuckFinley said:

 

For a minute there I thought it said - get a wife and a girlfriend.   😄

🤣😂🤣😂🤣😂🤣😂🤣😂🤣😂🤣😂🤣🤣😂🤣🤣

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