"Shift the Balance of Power" - Sat. PM TNT Thoughts/News 2/16/19
Page 1 of 1
"Shift the Balance of Power" - Sat. PM TNT Thoughts/News 2/16/19
TNT
RDS:
I think the president is going to release 1 to 3 trillion dollars in a bottom up fashion. I have been speaking to some people who have been in training in relationship with the treasury. This actually started before Trump by good people who were working without Obama realizing it.
Whats going to happen is a trillion dollars is going to come into our economy from the bottom up, and the people spending that money ….well it’s the greatest transfer of wealth in modern history. They will be working with 2 rules…..hire good people with good benefits and always buy new.
I think its going to shift the balance of power in the United States and its going to destroy the 2 party tyranny.
Minute 33:00: Q: Do you really think the US will go back to a Gold-Backed Dollar and a Gold Standard?
The president has as one of his top economic advisors a woman who is the top expert in the US on gold-backed currency. Thee is no question in my mind based on watching our president and intelligence we are hearing from China and Russia that the United States will have Gold-backed currency by 2020.
https://youtu.be/yOu4TpvydUI?t=1
Tishwash:
Mthuli Ncube, Mangudya in bitter fight over new Zimdollar
PRESIDENT Emmerson Mnangagwa has been forced to intervene in a growing turf war between Reserve Bank of Zimbabwe governor John Mangudya and his boss Finance minister Mthuli Ncube on the path Zimbabwe will take to deal with a deepening currency crisis.
Well-placed sources say President Mnangagwa met Mangudya in a crucial meeting last night that would assist in shaping and finalising the much awaited Monetary Policy Statement (MPS).
The MPS was expected to have been delivered either in the last week of January or first week of February.
However, disagreements over proposed currency reforms has seen the MPS stall to a point that requires executive intervention. Several options to deal with the currency crisis include, redollarisation, reintroduction of the local currency, rand adoption, liberalisation of the RTGS and bond note as well as ringfencing deposits to mop up excess liquidity to lower the premium rates on the US dollar.
It is believed that while Mangudya and his team tabled local currency re-introduction as the most viable option under the current circumstances, Ncube is only prepared to go as far as liberalising the exchanging rate, an option preferred by the Bretton Woods Institutions. According to Ncube, a local currency can only be introduced within 12 – 18 months.
An International Monetary Fund technical team, which was in the country this week is said to have suggested floating the exchange rate but also warned of the implications this could have on the socio and political environment. This follows a similar push by the African Development Bank. The IMF team is also said to have forced some revisions on the draft MPS.
Sources said Mangudya was concerned that devaluation would result in the collapse of bank balance sheets as most banks were borrowing offshore for on-lending in RTGS. He is also opposed to the move on grounds this will destabilise the economy by putting wage pressure on companies, cause inflation and driving the cost of goods up.
Government was however forced to deny the re-introduction of the local currency this week based on comments on Twitter by former Finance minister Tendai Biti that the reintroduction was due this week although it would not be backed by any fundamentals.
The rand option is also being thrown around considering that this has been a consistent message from industry, which has South Africa as its trading partner but Government is not too keen on that position.
Contacted for comment, Mangudya said he was in a meeting. Later on, he was not picking up calls and a message sent had not been responded to by the time of going to press.
Ncube could not be reached for comment but early this week he told journalists that the MPS would be presented soon without revealing specific dates. Traditionally, the MPS is presented during the first week of February. Asked when the Monetary Policy Statement would be presented he said: "Let's just say around this time."
Presidential spokesperson George Charamba declined to comment saying any comment on monetary issues could destabilise the market
The bond note was introduced in 2016 as an export incentive facility and guaranteed by the African Export-Import Bank. RBZ said it was at par to the dollar despite insistence by several sectors that the parity would not work warning that the surrogate currency would quickly lose value against the greenback.
Analysts expectations are not on devaluation nor the introduction of a local currency but rather that the RBZ mops up excess liquidity through a long dated bond to strengthen the RTGS rate, which is already the pseudo local currency while also introducing a foreign currency auction system.
In his last Monetary Policy Statement, Mangudya split bank accounts into nostro foreign currency accounts (FCAs) and RTGS (real time gross settlement) FCAs in what analysts say was an admission that the bond-dollar parity could not be sustained.
The currency crisis has given rise to price distortions particularly on consumer goods. Prices of some products in RTGS terms are cheaper if one converts using the parallel market rate than what is obtaining in the region while on the other hand, prices are beyond reach for the ordinary consumer whose salary has not changed and moreso for the tourists whose transactions on international cards are rated at 1:1 on the US dollar.
The President's intervention, whose details were sketchy at the time of going to print, also comes as foreign diplomats accredited to Harare are piling on pressure for Zimbabwe to come up with an acceptable currency reform policy, cognisant of the fact that some of their nationals have technical fees, dividends and investment income which are still stuck in the country.
Business Times is reliably informed that the foreign diplomats, due to meet Mnangagwa today at State House, told Harare to shelve the introduction of a local currency until the right fundamentals are in place.
Information at hand suggests government has been in deliberations with diplomats whose countries are key trading partners with Zimbabwe. A top diplomat who requested not to be named said he met Mangudya recently to discuss a number of issues including the Monetary Policy Statement.
"Right now we have dividends stuck in Zimbabwe and nothing is moving. If you have an environment that makes one investor make a loss, then no one else will come and those that are here will close. Why would investors come when you change policies and start selling equipment of businesses that you licence to invest?"
The diplomat said while the Monetary Policy Statement was crucial, government needs to start making tough choices and to create a good environment for business.
"Government needs to start talking to business and foreign investors. They must listen and make changes that ensure investors make money because they come here for money and if they can't make money then why do they stay?"
The diplomat also added that government and the generality of Zimbabweans should stop waiting for foreign bailouts to end the economic crisis. This comes as Ncube is on the hunt for credit lines. He is expected to visit China to discuss bailout options after his visit to the United States next month.
"The solution lies in foreign direct investment and domestic investment not bailouts. When you grow investments then you have jobs and a bigger tax base which needs to be preserved and allocated towards reinvestment not recurrent expenditure," he said. link
RDS:
I think the president is going to release 1 to 3 trillion dollars in a bottom up fashion. I have been speaking to some people who have been in training in relationship with the treasury. This actually started before Trump by good people who were working without Obama realizing it.
Whats going to happen is a trillion dollars is going to come into our economy from the bottom up, and the people spending that money ….well it’s the greatest transfer of wealth in modern history. They will be working with 2 rules…..hire good people with good benefits and always buy new.
I think its going to shift the balance of power in the United States and its going to destroy the 2 party tyranny.
Minute 33:00: Q: Do you really think the US will go back to a Gold-Backed Dollar and a Gold Standard?
The president has as one of his top economic advisors a woman who is the top expert in the US on gold-backed currency. Thee is no question in my mind based on watching our president and intelligence we are hearing from China and Russia that the United States will have Gold-backed currency by 2020.
https://youtu.be/yOu4TpvydUI?t=1
Tishwash:
Mthuli Ncube, Mangudya in bitter fight over new Zimdollar
PRESIDENT Emmerson Mnangagwa has been forced to intervene in a growing turf war between Reserve Bank of Zimbabwe governor John Mangudya and his boss Finance minister Mthuli Ncube on the path Zimbabwe will take to deal with a deepening currency crisis.
Well-placed sources say President Mnangagwa met Mangudya in a crucial meeting last night that would assist in shaping and finalising the much awaited Monetary Policy Statement (MPS).
The MPS was expected to have been delivered either in the last week of January or first week of February.
However, disagreements over proposed currency reforms has seen the MPS stall to a point that requires executive intervention. Several options to deal with the currency crisis include, redollarisation, reintroduction of the local currency, rand adoption, liberalisation of the RTGS and bond note as well as ringfencing deposits to mop up excess liquidity to lower the premium rates on the US dollar.
It is believed that while Mangudya and his team tabled local currency re-introduction as the most viable option under the current circumstances, Ncube is only prepared to go as far as liberalising the exchanging rate, an option preferred by the Bretton Woods Institutions. According to Ncube, a local currency can only be introduced within 12 – 18 months.
An International Monetary Fund technical team, which was in the country this week is said to have suggested floating the exchange rate but also warned of the implications this could have on the socio and political environment. This follows a similar push by the African Development Bank. The IMF team is also said to have forced some revisions on the draft MPS.
Sources said Mangudya was concerned that devaluation would result in the collapse of bank balance sheets as most banks were borrowing offshore for on-lending in RTGS. He is also opposed to the move on grounds this will destabilise the economy by putting wage pressure on companies, cause inflation and driving the cost of goods up.
Government was however forced to deny the re-introduction of the local currency this week based on comments on Twitter by former Finance minister Tendai Biti that the reintroduction was due this week although it would not be backed by any fundamentals.
The rand option is also being thrown around considering that this has been a consistent message from industry, which has South Africa as its trading partner but Government is not too keen on that position.
Contacted for comment, Mangudya said he was in a meeting. Later on, he was not picking up calls and a message sent had not been responded to by the time of going to press.
Ncube could not be reached for comment but early this week he told journalists that the MPS would be presented soon without revealing specific dates. Traditionally, the MPS is presented during the first week of February. Asked when the Monetary Policy Statement would be presented he said: "Let's just say around this time."
Presidential spokesperson George Charamba declined to comment saying any comment on monetary issues could destabilise the market
The bond note was introduced in 2016 as an export incentive facility and guaranteed by the African Export-Import Bank. RBZ said it was at par to the dollar despite insistence by several sectors that the parity would not work warning that the surrogate currency would quickly lose value against the greenback.
Analysts expectations are not on devaluation nor the introduction of a local currency but rather that the RBZ mops up excess liquidity through a long dated bond to strengthen the RTGS rate, which is already the pseudo local currency while also introducing a foreign currency auction system.
In his last Monetary Policy Statement, Mangudya split bank accounts into nostro foreign currency accounts (FCAs) and RTGS (real time gross settlement) FCAs in what analysts say was an admission that the bond-dollar parity could not be sustained.
The currency crisis has given rise to price distortions particularly on consumer goods. Prices of some products in RTGS terms are cheaper if one converts using the parallel market rate than what is obtaining in the region while on the other hand, prices are beyond reach for the ordinary consumer whose salary has not changed and moreso for the tourists whose transactions on international cards are rated at 1:1 on the US dollar.
The President's intervention, whose details were sketchy at the time of going to print, also comes as foreign diplomats accredited to Harare are piling on pressure for Zimbabwe to come up with an acceptable currency reform policy, cognisant of the fact that some of their nationals have technical fees, dividends and investment income which are still stuck in the country.
Business Times is reliably informed that the foreign diplomats, due to meet Mnangagwa today at State House, told Harare to shelve the introduction of a local currency until the right fundamentals are in place.
Information at hand suggests government has been in deliberations with diplomats whose countries are key trading partners with Zimbabwe. A top diplomat who requested not to be named said he met Mangudya recently to discuss a number of issues including the Monetary Policy Statement.
"Right now we have dividends stuck in Zimbabwe and nothing is moving. If you have an environment that makes one investor make a loss, then no one else will come and those that are here will close. Why would investors come when you change policies and start selling equipment of businesses that you licence to invest?"
The diplomat said while the Monetary Policy Statement was crucial, government needs to start making tough choices and to create a good environment for business.
"Government needs to start talking to business and foreign investors. They must listen and make changes that ensure investors make money because they come here for money and if they can't make money then why do they stay?"
The diplomat also added that government and the generality of Zimbabweans should stop waiting for foreign bailouts to end the economic crisis. This comes as Ncube is on the hunt for credit lines. He is expected to visit China to discuss bailout options after his visit to the United States next month.
"The solution lies in foreign direct investment and domestic investment not bailouts. When you grow investments then you have jobs and a bigger tax base which needs to be preserved and allocated towards reinvestment not recurrent expenditure," he said. link
Ssmith- GURU HUNTER
- Posts : 20038
Join date : 2012-04-10
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
» Frank26: "maybe 6,7,8 different countries...those other counties will also be 1 to 1 with the American dollar" (Do They Know That? LOL) 4/16/21
» Guru Pimpy: "They are a rich country...unfortunately the corruption is so bad and people are so greedy" 4/16/21
» FootForward: "But this isn't just a currency exchange in the traditional sense" 4/16/21
» Walkingstick: "The reason why is because supply and demand is going to shoot the Iraqi dinar into a crazy situation" 4/16/21
» Judy: " Tier 4B notification to set appointments would start at any moment" (Again???) 4/16/21
» The Big Call w/ BS Bruce - Intel Highlights "They had until 12 midnight tonight Thurs. 15 April to release the Tier 4B email notifications" (Did You Get That Email?) 4/15/21
» MarkZ: "We appear to be in a holding pattern…waiting for something. Everybody is still in place" (When Do Scams Come True?) 4/16/21
» The Venezuelan Bolivar and the Iraqi Dinar - How a redenomination works
» Hyperinflation Pushes Venezuela to Print 1,000,000-Bolivar Bills
» IMF urges Kuwait not to revalue dinar
» The Iraqi president and the Saudi monarch discuss strengthening bilateral relations
» After the attacks in Erbil and Al-Habibiya ... Kuwait: We support Iraq with the measures it takes to preserve its security
» A member of Parliamentary Finance submits a 6-point proposal as an alternative to taxation
» Dave Schmidt (Meta 1 Coin Scam) - SEC warns Meta 1 Coin scheme is ongoing despite Court orders
» Al-Maliki offers reconciliation with Muqtada al-Sadr and reveals: This is what I will do upon my return to prime minister
» Iraq uses French companies to develop the telecommunications sector
» Iraqi Finance comments on a retroactive tax deduction: The cabinet has the power to cancel it
» Government Advisor: The Central Bank is working to stabilize the dinar’s purchasing power
» Walkingstick & Frank26: "Supply and demand on the dinar is going to explode" 4/15/21
» Because of the dollar .. The Minister of Finance and the Governor of the Central Bank face interrogation in Parliament
» Frank26: "There's a date they've established when they want to come out with the one-to-one rate inside of Iraq and outside of Iraq" (Oh? There's A Date? LOL) 4/15/21
» Guru Petra: "Nor will it come out at the program rate because the math just doesn't work" (Gurus Know Math, Right?) 4/15/21
» Guru Pimpy: "So when you see them sending more and more U.S. dollars it means they have more and more confidence in their own currency" (LMAO! By Not Using It?) 4/15/21
» The Big Call w/ BS Bruce - Intel Highlights 4/13/21
» Judy: "Keep your phones charged and watch your email inboxes" (Do "They" Have Your Phone Number?) 4/15/21
» Baghdad and Washington are discussing security cooperation and the formation of a joint military committee
» MarkZ: "I know we are all tired of hearing it…..but we are watching it all unveil……it really is moving" (1,490 and climbing...) 4/15/21
» Increase the amount of cash sales in foreign currency
» THE ARAB MONETARY FUND PUBLISHES THE TENTH ISSUE OF ITS INTRODUCTORY SERIES OF BOOKLETS ON "THE REALITY OF DIGITAL CURRENCIES."
» Fleming's Fantasy Update: "more details will come from the 800# call center operators when T4B can start calling to make appointments" 4/15/21
» THE ARAB MONETARY FUND ISSUES A BROCHURE ON "CREDIT CONCENTRATION RISKS IN FINANCIAL AND BANKING INSTITUTIONS"
» The Foreign Secretary reviews with the US ambassador the results of the third round of the strategic dialogue between Iraq and the United States
» Al-Baiji: The government bears the legal, humanitarian and moral consequences of the wrong decision to raise the dollar’s exchange rate
» The US State Department is "angry" at the bombing of an International Coalition Center at Erbil Airport
» The low exchange rate of the dollar in the local market 4/15/21
» An attack targets the US-led coalition in Iraq
» Representatives hold the government and the central bank responsible for the disastrous consequences of the rise in the dollar
» Al-Haddad: the Erbil airport attack is a desperate attempt to destabilize security in Iraq
» at the border crossings will push the government to reduce the dollar exchange rate