Sunday evening SHredd Chat

[Shredd] well, think about it.....the rate is moving in the opposite direction..........does simply flipping the swith to a free float change anything? No way....too risky and spawn no confidence in the dinar. A managed float to at or above the dollar would.
[Shredd] it would also turn every investor's head and investment coming into the country would be beyond the visionaries with an appetite for risk
[Shredd] and patience
[bubbiesbrother] Shredd agreed
[Shredd] Iraq WILL go to a free float, just not right away
[Shredd] and again, if that IS the plan, we got a long wait
[bubbiesbrother] agreed
[Shredd] also, how does an immediate move to a free float fix the currency supply and demand issue?
[Shredd] doesn't
[bubbiesbrother] true

[Shredd] if you know what effects the rate of a currency and look at those in Iraq, they will not support a free float
[Shredd] let's say the dinar went to a free float tomorrow.........
[bubbiesbrother] ok
[Shredd] no investor is going to say, hey I'm gonna hop on that iraqi investment train!

[Shredd] why? cuz they are going to look at what drives the rate
[Shredd] and the direction it is going
[bubbiesbrother] floats can go two way
[Shredd] the lower denoms would not release tomorrw with the free float
[Shredd] cuz they would have a horribly low rate and no iraqi will use it
[Shredd] too much to carry
[Shredd] their confidence won't automatically be restored in the dinar just because of going onto a free float
[Shredd] won't matter to them
[Shredd] show me the money
[Shredd] ie show me a strong currency
[Shredd] banks wouldn't even release the lower denoms until the rate was at or above the dollar
[Shredd] anytime sooner, they'd run out of supply
[bubbiesbrother] I don't think they would understand the term free float what they want is hard cold cash
[Shredd] money talks
[bubbiesbrother] IMO RI
[bubbiesbrother] but heack I am related to therealbubbies
[Shredd] well, that would be awesome!

[Shredd] the way I see it, if Iraq is going to move forward, they have one option
[Shredd] and again, this was the plan but it obviously escalated sooner than they had expected based on the news
[Shredd] and accusations agains the CBI
[bubbiesbrother] give value to their cirrency
[bubbiesbrother] step up and be a leader in the region
[Shredd] some may say, the government don't care about their people, but it's way more than that
[Shredd] you have a country rich in reserves and resources
[Shredd] 74bn is amazing
[bubbiesbrother] Shredd yes
[Shredd] so, you don't want a local economy crumbling
[Shredd] that is not the message iraq wants to send to the investment worls
[Shredd] world
[Shredd] so, this problem will go away
[Shredd] it has to
[Shredd] iraq has a choice
[bubbiesbrother] if it were to crumble it would throw them back in to early 1900's
[Shredd] red pill or blue pill
[Shredd] right bubbs
[Shredd] ain't gonna happen
[Shredd] ok, I gotta run
[bubbiesbrother] and thus shabibis claim of being the leader in the ME would be for not
[Shredd] ttyl folks
[Shredd] tc bubbs
[bubbiesbrother] Shredd Shredd you too have a good one