Breitling

  In Breitling 

Let’s do a thought experiment. Let’s say you live in Iraq and you have a certain amount of currency. They are not going to gain like you and I are.  Because we bought with U.S. dollars. That means we bought it at a tenth of a penny. Well their economy is set up at a tenth of a penny.  In other words they didn’t pay anything. The currency was just given to them.  If you go buy a coke at a tenth of a penny [Or 1450 dinars] and the value goes up because there’s a revaluation or they just simply corrected their currency – they’re just going to move the decimal over.  Now it’s just a dollar. So now you have the currency that’s a dollar and a coke that has the price tag that’s a dollar…There’s going to be a little bit of gain for them but not like you and I are going to get because we bought with the U.S. dollar. That’s a principle you have to understand.

Tags: /