[sammyb] did anyone hear Frank26 comment about the dong splitting??? what the heck does that mean?? devalue????
[hopeful2&2] splitting, means maybe you get 2 for 1
[sammyb] regarding the split????
[sammyb] at the same value, lower or higher
[hopeful2&2] buy one vnd, and they throw 1 in for free
[Capt Ron] in a stock split, the number of shares is, say, doubled, and the value of the remaining shares is divided by two.
[sammyb] so why don't they just increase the value?
[Capt Ron] So that the company that splits its stock has the same market capitilization, but just twice the number of outstanding shares.
[bcrt] sammyb F26 doesn't make sense to me most of the time
[Capt Ron] currencies, as such, don't split like that.
[Capt Ron] even though the relationship of a currency to a country is similar to that of a stock to it's parent company.
[sammyb] bcrt actually he has been right alot of the time
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[sammyb] i understand a stock split, I just can wrap my head around a currency split
[hopeful2&2] most of the time when a currency is split, you have to tape it back together
[sammyb] hopeful2&2 me too or give it back to the bank lol
[Capt Ron] sammyb for a country to split its currency, it would have to instantaneously issue, say, currency so as to double the number of usd, euro, whatever. and at that instant all the currency in circulation would have, in my example, one half the worth it had a minute before that. crazy.
[bcrt] hopeful2&2 so would that be two ply toilet paper
[Capt Ron] countries inflate their currencies all the time (see: Ben Bernanke) but they do it much more gradually than through a split like that.
[hopeful2&2] no no very thin 1 ply
[sammyb] Capt Ron that was always how I understood it. so how does this benefit Vietnam in any way with currency that is about as low as you can go.... it is worthless now
[hopeful2&2] usd doesn't have to split, we have a very good printing press
[bcrt] hopeful2&2 gotchya!
[Capt Ron] sammyb well, the reasoning for a company to split their stock can be so that the price per share is more affordable for new investors, but,...
[Capt Ron] ...I cannot think of a reason for a country to do the same thing. Doesn't make sense. And it historically just doesn't happen.
[Capt Ron] another problem with a currency (hypothetical) split...
[Capt Ron] how wouold a country's central bank execute THAT? All in a sudden the peeps there wake up and their currency, in my example, is worth 50% of what it was worth the night prior. what a mess.
Capt Ron] an rv is the closest example i can come up with to a currency split...
[sammyb] well our world currency situtation is quite scary....
sammyb] oh now that is good, they call an rv a currency split, hmmm, let me think on that one
[Capt Ron] ...because in an rv you do have an instant change in value to the currency. but it isn't a split as such. it is a brand new value with usually (and in our case in iraq) brand new currency paper to reflect that instantaneous change.
[Capt Ron] so what i'm trying to say here is that countries can revalue their currency, and we hope that's about to happen in our case, but countries don't historically split their currency.
[sammyb] this split thing may be an announcement for them not to really realize what is happening to their money... as far as public announcement?
[sammyb] to control public reaction? Maybe
[Capt Ron] sammyb well, i can see logic in the public 'treatment' of this...
Capt Ron] ...a Central Bank could do an rv but publicly call it a split i suppose. that would be a little weird, but hey.
[sammyb] that is the only thing I can come up with..... but that is why they don't apparently hire me, because I only use common sense.... no hidden agenda lol :
[Capt Ron] and an rv like THAT would be a bad rv, not a good rv. you don't want your currency to get the value cut in half (again, my example above), but you want it to be worth bunches MORE. Like a reverse stock split.
[Capt Ron] arr
[Capt Ron] my head hurts.
Capt Ron] just don't split the dong, whatever you do,
[sammyb] have spent way to many years having to make crap sound like a good idea.... I am now the opposite... just put it out there and we will figure it out!
[Capt Ron] if you guys have your coffee now, i can show you another analogy between stock splitting and reverse splitting and rvs...
[Capt Ron] ...here goes...
[Capt Ron] a frequent way that CEOs of brand new companies can abuse the trust and monies of new investors to that brand new company is by a dirty technique known as.... stock dilution...
[Capt Ron] ...where what they do is issue LOTS of brand new shares to their brand new company, and investors snap 'em up because they are 'cheap' low cost shares...
[Capt Ron] ...but the problem is that these CEOs take that revenue they get from those newly issued shares and waste it further, usually.
[Capt Ron] ...and the shareholders get stuck with all these diluted shares. we call them stuckholders, instead of stockholders...
[Capt Ron] ....in a currency of a nation, the same thing can and often DOES happen. an central bank (see: Ben Bernanke) issues LOTS of brand new USD, and investors snap 'em up, but later on they see that these new USD have only served to dilute the strength of the economy. AKA inflation.
[Capt Ron] ok, there's the speech.
[sammyb] Capt Ron I have read about that, hasn't there been a regulation recently put into effect to protect the stockholders
[Capt Ron] sammyb there are efforts to oversee that behavior all the time, but it continues to happen all the time anyway. human nature i suppose.
[sammyb] hmm, yes, well we are screwed!
[Capt Ron] so when you hear that Vietnam might have split their currency, that in my mind is both improbable, not historical, and if true probably a bad thing for us in here. I don't buy it.
[Capt Ron] no pun intended.
sammyb] thanks for your thoughts on this, I appreciate being able to put it out there and have a discussion
wanda] bbl got work to do
[Capt Ron] wanda hopefully your last week at work. enjoy.
[Precious] [lakeisland] Breaking News on Dinar info... Franks call... He was transcribing from Delta. Meetining in Jordan.. CL met for a couple of days. audits done. gave blessing. The deligate. IMF gave Iraq to March 30 to reveal the rate and released. Not this weekend.
[Tejas] IMF told iraq to RV by march 30
[Tejas] Yes thats what delta is say's
[WCW] jc2 i think that the budget announcement is friday morning in iraq and that s late thursday night early friday for us
[spiritfilled] Cyprus appears to be taking a backseat to the Federal Reserve for U.S. investors Wednesday.At 2 p.m. ET, the Fed will release its latest interest rate statement and economic forecasts. Chairman Ben Bernanke is expected to maintain a gloomy outlook despite stronger economic data.
[xyz] French police raid IMF chief's Paris home 20 March 2013 - 13H34 www.france24.com/en/2013 ··· ris-home View of IMF chief Christine Lagarde and disgraced French tycoon Bernard Tapie. French police have carried out a raid on the Paris home of Lagarde in connection with a probe into her handling of a high-profile scandal when she was a government minister. AFP - French police on Wednesday carried out a raid on the Paris home of IMF chief Christine Lagarde in connection with a probe into her handling of a high-profile scandal when she was a government minister. The investigation concerns Lagarde's 2007 decision to order a panel of judges to arbitrate in a dispute between disgraced tycoon Bernard Tapie and the bank Credit Lyonnais,
[mailboxmoney] wow thats the first time i have seen her on live news
letsdance] Lew's China visit ends with focus on currency, cyber security http://www.reuters.com/article/2013/03/20/us-china-usa-idUSBRE92J0LB20130320
[sunny] Does anyone think this might be auspicious and a coincidence. Today, March 20, 2012 the UN has declared as the First International Day of Happiness!!! If it turns out to be "our day" we'll all be really, really happy!!!
[sunny] To All: Did you ever happen to think you are the "stuff the pioneers of this country" were made of. You, no matter what day you jumped in this pool, have exhibited the same qualities the first pioneers did to develop this country. Now you are called upon to do it in a little different direction.
[nolaspice] whenever you allow doubt to enter your mind, the law of attraction will soon line up one doubtful thought after another. The moment a thought of doubt comes - RELEASE it IMMEDIATELY. Replace it with "I know I am receiving now!" And continue to feel that you are receiving!! ASK - BELIEVE - RECEIVE!!