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Guru TD still says NO RV is expected for now
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Kevind53
Jayzze
Levitations
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Guru TD still says NO RV is expected for now
Guru TD
Noteworthy article from THE FINANCIAL TIMES proposes that "Iraq will "almost certainly" run a deficit in 2015". It goes on to say that the GOI could borrow against it's reserves but this would bring upon the risk of increased inflation and therefore weakening it's currency. I had a chat with my Kurdish friend (an economist) regarding such and he confirms that the current budgetary concerns are real and possibly to get worse going forward. Although Iraq is receiving military assistance they are responsible for the tab of rebuilding their military. Unfortunately they are still losing military bases and along with it millions of dollars in ammunition and hardware. Coupled with loss of economic productivity is the declining price of oil.
Although Iraq knows their path forward is a market driven economy and diversification from oil dependence, it is way too early amid the chaos of any infusion of foreign capital investments by MNC's. Tourism is non existent. My friend indicates that the CBI (so far) has curtailed through monetary mechanisms any decline in the rate of the dinar BUT that budgetary pressures and continued lack of improvement of the disruptive forces of ISIS could and would yield to unbearable ripple effect pressures on monetary policy going into 2015 as the Financial Times article alludes to. At least in the short term it is quite clear based on all these factors that Iraq simply cannot risk nor pay for any increases in the value of it's currency.
Levitations- Elite Member
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Re: Guru TD still says NO RV is expected for now
if i were you td i would sell all dinars and dong
Jayzze- VIP Member
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Re: Guru TD still says NO RV is expected for now
There is nothing to indicate that Iraq will RV anytime soon. Nor is there any compelling reason for them to do so att. They can do fine in the world market with their currency tightly controlled at the value it is. China now has the second largest economy in the world (some say first) with a tightly controlled Yuan. They are also full members of the IMF as is Vietnam with a far lower value for their Dong.
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Kevind53- Super Moderator
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Re: Guru TD still says NO RV is expected for now
That's not what Tony & DC say!
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Ssmith- GURU HUNTER
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Re: Guru TD still says NO RV is expected for now
kevin since you really appear up on this i have one question. how can iraq open there stock market internationally on a tenth of a cent and make money to help there economy?
Jayzze- VIP Member
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Re: Guru TD still says NO RV is expected for now
The value is pretty much meaningless. Let's keep the math simple and assume one USD = 1000 IQD. Stock X trades at 52 IQD, so you can buy 1000 shares at 5,200 IQD, or 52 USD. At the worst, you convert your USD to IQD at the bank or exchange when you make the buy. Stock X doubles in value and you sell. You get paid 10400 IQD which you exchange for 104 USD. I know, I know, I have ignored spread in exchanging currency, but that will always be there regardless of the value of the currency.
So you see you make money whether the currency is valued at 1:1, 1000:1 or 100000:1 the money is mad (or lost) in the buying and selling ... hopefully you buy low and sell high making money, but that is not always the case. Iraq makes out in that corporation X has your money to invest in growth. Really boiled down to it's essentials, that is the stock market, national or international.
So you see you make money whether the currency is valued at 1:1, 1000:1 or 100000:1 the money is mad (or lost) in the buying and selling ... hopefully you buy low and sell high making money, but that is not always the case. Iraq makes out in that corporation X has your money to invest in growth. Really boiled down to it's essentials, that is the stock market, national or international.
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Trust but Verify --- R Reagan
"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18
Kevind53- Super Moderator
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Re: Guru TD still says NO RV is expected for now
"Stock X trades at 52 IQD, so you can buy 1000 shares at 5,200 IQD"
Looks like you've lopped a zero there! :winky winky:
"Stock X doubles in value and you sell. You get paid 10400 IQD"
And there!
Looks like you've lopped a zero there! :winky winky:
"Stock X doubles in value and you sell. You get paid 10400 IQD"
And there!
Guest- Guest
Re: Guru TD still says NO RV is expected for now
Yep .. teach me to write in a hurry . At grandkids, so paying more attention to them that what I am writing.
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Trust but Verify --- R Reagan
"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18
Kevind53- Super Moderator
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Re: Guru TD still says NO RV is expected for now
Grandchildren are much more important than dinar!
Billyg- VIP Member
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Ponee- Admin
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Re: Guru TD still says NO RV is expected for now
Sooooo... all it takes to become a guru is to state that the RV isn't going to happen?
Cascadian- VIP Member
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Re: Guru TD still says NO RV is expected for now
Maybe so. But, the trend is to say it will [every week]. This is a different approach used by some gurus, except for good ole' tony.
Billyg- VIP Member
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Re: Guru TD still says NO RV is expected for now
cascadian wrote:Sooooo... all it takes to become a guru is to state that the RV isn't going to happen?
Hmmm I guess so... So, that makes a LOT OF PEOPLE gurus !
Ponee- Admin
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