tyvm timmy.......Subject: BLC Administrator Shredd Chat 10/21/2013
[tlm724] Despite the White House end the Government shutdown crisis of America there is another crisis threatening the US economy is the US government debt ceiling height to record levels reached 10 trillion dollars,
an amount much difficult in the absence of indicators of recovery of the US economy, threaten new economic crises threatening the dollar.
Read More Link On Right
The economic information center said in a press release received PUKmedia, copy, need work policy in Iraq in cooperation with the Iraqi Government to move Iraq from the dollar
that real economic risk has not experienced since the great depression in the 1920s which requires examination of alternatives to the dollar on the foreign currency basket
Iraq reserves contain the most stable Asian currencies like the Chinese Yuan to the euro and pound sterling, Japanese yen and other currencies are more stable than the dollar
add To promote the transformation of dollarization in the Iraqi market phenomenon to a basket of currencies through partial incorporation of these currencies in the beginning auction currency
and encouraging the Iraqi market for circulation through the payment of such currencies particularly for imports coming from countries that trade these currencies.
Central, Member of the parliamentary Finance Committee Naguib to Iraqi currency current limited categories don’t harmonize with balancing Iraq and encouraging investors not so yzetron to trading in foreign currency “.
Najib said told PUKmedia, said Sunday, “If there were coins of 200 or 250 thousand for the encouraging motivation improved monetary policy.”
“The current figure is difficult without study and without the reform of the economic and financial system in Iraq and current currency unlink Iraqi dinars to the dollar.
MP Najib stressed that “the disengagement of the Iraqi dinar to the dollar needs to raise the value of the Iraqi dinar and clear plans and strategies and the use of some economists.
Said Professor of Economics at the University of Sulaymaniyah Khaled Haidar to unlink the dinar from the dollar is not possible that the Iraqi economy is one-sided, that Iraq exported oil and imports most of its needs from abroad any dollar that exposed Iraq anyway to crises.
Haider in emphasized told PUKmedia, said Sunday that Iraq could seek to reduce a dinar to the dollar through increased domestic production and reduce imports from abroad to fill the growing demand caused by increased purchasing power relative to increase in population in the country. LINK
[tlm724] there is an alternate translation in the forum also ^^^
[Shredd] tlm724 the way I see the above is this...first of all, I see two concepts we need to differentiate, a peg to the dollar is one
[Shredd] and the other is Iraq's dual currency situation, this article above is addressing the latter, the dual currency situation
[Shredd] so, Iraq is constantly having to balance pricing between the two and fluctuations in the rate or threats to the stability of the dollar affects them more than other countries
[Shredd] so, in a way, this dollar instability is good for pushing the agenda of getting away from using the dollar as the primary street currency, they see it as risky
[Shredd] that is what this article is stating....
[tlm724] right I was talking about that yesterday
[Shredd] yes and I'm right there with you
[Shredd] the above is not talking about a peg, regarding a peg, Iraq's finance ministry along with the central bank will monitor the dinar exchange rate relative to the dollar's value.
If it falls below a certain range, they will buy dollars -- many countries do this typically in the form of U.S. Treasuries. This increases the dollar's value so it once again falls within the intended range.
If the dollar were to rise above the range, the dollars or Treasuries are sold to lower the dollar's value back within its targeted range.
This is how a peg works, so there is an effect but as Iraq has their own currency, they can adjust.
[Shredd] now, since the issues of the US debt are mentioned, we may as well briefly touch on that......
[Shredd] so long as an issuer can repay their debt and their aggregate assets do not lose their ability to meet their obligations, there is not a need for concern, that said, the rising debt is concerning, for sure, but the buyers of our debt are still in place because they get the nice returns
[Shredd] political extremist thinking will say that other global powers will call our debt or will stop lending out of concern about our debt, not so
[Shredd] again, so long as the US continues to meet it's debt repayment obligations, and they will, it's going to be fine
[Shredd] I'm not ignorant to see how spending in the US needs to be fixed, for sure, but we all will leave that to capitol hill .....not gonna have a political debate
[raindrop1] Shredd -tell that to the ill informed shredd !!!
[Shredd] borrowing and lending is what makes the wheels of global finance turn
[raindrop1] I'm tired of the fear mongering
[Shredd] the global powers need to lend to get the returns they get, the US is a lending country too. so anyways tlm724 , the above article is addressing the dual currency situation.... I stand in agreement with you!
[Shredd] raindrop1 agreed and what's funny.... is, those same people forget that the US will trade all the dinar they collect (as other countries will) when we all trade it at our banks.
[Shredd] a great stimulus indeed
[tlm724] Shredd tyvm !!!