Kaperoni

ZIg   Kaperoni :    Hello

Kaperoni   Zig, you love to stir the pot

Spectra   Kaperoni hows things and what do you think about where we are with this DINAR?

Zig   Kaperoni : Me?….I am just an innocent guy….. ;eye roll;

Spectra   Kaperoni JUST TELL US ..I WON’T ATTACK YOU

Kaperoni   Well if you take the word of parliament they plan to pass the laws needed this session to launch the market economy

Kaperoni   But parliament never does what it says…so we wait and see

Spectra   Kaperoni right

Zig   Now where is that nice man, Sam??

Kaperoni   Sam is funny, wants to try and make information posted by the IMF as misinformation or misunderstood information. If you read the entire context of the information it cannot be misunderstood

Zig   Kaperoni : You are 100% sure of what you conclude??…..100%????????????????//

Kaperoni   Zig, I don’t have to, the IMF answers it owns questions in the documentation.

Zig   Maybe drop down to 99.9?…..LOL

Kaperoni   Let me give you an example of Sam and what he is trying to convince people of…

Dave   Zig Kap could be right……

blackgold   Zig how goes it
blackgold   Kaperoni how is it going

Kaperoni   Hi Blackgold
Kaperoni   A sentence from the IMF…   “staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy. ”

Zig   CONSIDER

​​Dave   Kaperoni A sentence from CBI …no free float

Spectra   Zig right consider

Kaperoni   Sam want you to believe this means nothing..in fact they already did it. That they are already using a more flexible exchange rate policy.

Spectra   Zig and with IRAQ a consider could take years

Kaperoni   Dave I will address you in a minute
Kaperoni   But if Sam read the entire paragraph he would see this sentence….

Dave   call it cherry picking

​Kaperoni   “Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect,”

Spectra   Dave yes leaving out putinent information

Zig   I am no longer a mod but it would be interesting to see an uninterrupted exchange between Kap and Dave IMO….

Spectra   purtinent

Kaperoni   Now if you read this in it’s entirety you can see it cannot already have happened. Not to mention it says specifically the “Balassa-Samuelson effect” which cannot be misunderstood.

Kaperoni   “In 1964, academics Bela Balassa, a Hungarian economist, and Paul Samuelson, a Nobel-Laureate economist, independently observed that countries with higher levels of productivity growth experienced rapidly rising real wages and so appreciating real exchange rates.

Academic studies since have suggested the picture is not as simple as Mr Balassa and Mr Samuelson first thought and that many other factors can also influence the model.

However, many long term investors in emerging market currencies, for example, have been able to benefit from the appreciation of those currencies which is arguably due to the Balassa-Samuelson effect.”

The key here is the last sentence… “many long term investors in emerging market currencies, for example, have been able to benefit from the appreciation of those currencies which is arguably due to the Balassa-Samuelson effect.”

blackgold   The Balassa-Samuelson Effect is a phrase that describes the result when countries with high productivity growth also experience high wage growth, which leads to higher real exchange rates.

Kaperoni    blackgold..yes
Kaperoni   So there is no confusion here   The confusion is Sam

Zig   Kaperoni : Sam says you are confused…..LOL
Kaperoni   Ok, next is Dave.   Dave, you should state things as “matter of fact” when you do not know the context of the statement. As in the worlds “no float”.

Dave   IMF says end MCP correct?
Dave   Kaperoni ALAQ STATED NO FREE FLOAT…

Kaperoni   If you are so sure they would never float, tell me what tool they plan to use to counter inflation created by an influx of investment?

Young SC   I came in at the right time lol

Kaperoni   Dave again, what tool will they use?

Dave   Dave IMF STATED end MCP? Kaperoni

Kaperoni   Dave do you know what MCP means?

Dave   yes

Kaperoni   Do you have a clue?     Tell me?  What is MCP?

Dave   MULIPLE CURRENCEY PRACTICE

Kaperoni   Wrong!   Try again

Dave   Program

Kaperoni   lol   Wrong

Dave   TEach me
Dave   Linked ending the auctions

blackgold   I wish people would use the three letter Abrev, but still write out what it means for dummies like me

Kaperoni   MCP is the result of when a countries currency spread exceeds 2% and creates MCP. In other words it create different prices for the same goods in different parts of the country

blackgold   thank you

Kaperoni   it has nothing to do with 2 currencies

Dave   Kaperoni thats how we work yes

Kaperoni   So as of now, the CBI has met the 2% rule for a year and there is no MCP
Kaperoni   They are in compliance

blackgold   we have MCP in the US all over the place, even down the street

Dave   Kaperoni IMF controls the spread….under managed float buy sell rates can only change that 2-3 % every 90 days

Kaperoni   Part of compliance to get out of Article XIV to Article VIII is the ability to control that. So the IMF requires that before they could move to Article VIII.

Kaperoni   Dave they will never be on a manged float because they want price discovery of the dinar. That occurs on FOREX

Dave   IMFs intent is for CBI to earn money from growing the banking sector and not from Selling or being reliant on USD

Dave   Kaperoni ALAQ stated Otherwise

Kaperoni   I should correct myself..they will not initially be on a managed float..but they could at some point switch once price discovery has happened

Dave   CANT CHANGE BACK AND FORTH

Kaperoni   Again Dave, you do not understand the context. In fact, Alaq just said last weekend he wants “pressure” on the CBI.

Dave   Kaperoni GO BACK 2 WEEKS THEN

Kaperoni   What is the tool the CBI uses to relieve pressure?

Dave   pROMOTE THE BANKING SECTOR

Kaperoni   Dave first it was not 2 weeks ago..it was almost a year ago. lol. You finally found it 2 weeks ago, your late to the game. ​

Dave   Well he stated it again verbatum not long ago
Dave   yes i look at dates …..not those from 10 yrs ago…..

Kaperoni   Dave the CBI cannot stop the auctions until it has something to replace it with. The auctions are the CBI’s source of revenue. The replacement is the float which allows the CBI to then buy/sell its currency on the world market like any other country that floats. This is not new.

Dave      Kaperoni IMF has told them numerous times to end MCP

Kaperoni   Yes Dave and they did lol
Kaperoni   Dave are you adding value here or just being an ass?

Dave   had an auction 1-2week ago

Kaperoni    Well I want to stop in and discuss Sam’s confusion. I did that. Hope you have a great day.

Kaperoni   See ya

Dave   Do you read the news or just repost the same stuff

Zig   Kaperoni : Bye….I remain confused…..lol…. ;dont no;

Zig   Sam and I….Brothers in confusion….lol

Dave   TRy reading the news

Zig;   angry
Sparky   Zig see what happens when you interrupted my monologue?
Sparky   Zig reasonable activity

Dave   Zig Confused that IMF prefer that Iraq make money on the auctions to grow their Federal reserve?…or grow from the banking sector?

Dave   80 % of those folks do not have bank accounts

blackgold   Do ya blame them     If you did a survey you’d be surprised how many people don’t have accounts in the US

Dave   blackgold had one since i had my paper route

blackgold   God bless you but many don’t

Sparky   blackgold under the table cash? Irs frowns on that ​

​blackgold   like the poor basketball player that got his first check of $300,000 and tried to cash it at the check cashing place and they just laughed at him

blackgold   You can be educated but still out of touch with the real world

Sparky   blackgold some are born fools, some grow into it

Zig   Hopefully we will profit from this someday…..meanwhile we hang out and get on each others nerves…..lol

Spectra   Zig Live and let live is my belief ,unless you try too force it on me

Zig    But always fun when Kap visits…..lol

Young SC   Why did Kapreoni stop talking?

Dave   Zig Dont be confused…………
https://www.imf.org/external/SelectedDecisions/Description.aspx?decision=8648-(87/104)

Zig   Young SC : He has a pizza business to run…..

Spectra   Zig Theres lots of different theories,who too say what IRAQ will do….no one knows….

Young SC   Sam nor Kap do not read the news Dave

Spectra   Zig he does not…lol

Young SC   Kap kinda does only if it suits his opinion

Dave   ARTICLE VIII AND ARTICLE XIV   Multiple Currency Practices

MULTIPLE CURRENCY PRACTICES APPLICABLE SOLELY TO CAPITAL TRANSACTIONS

The phrase “multiple currency practices” in decisions of the Fund relating to the use of the Fund’s resources does not, except as otherwise provided, include multiple currency practices applying solely to capital transactions.   Decision No. 8648-(87/104

Dave   Young SC Thats direct from the IMF ….cant post link

Young SC   Dave oh yes i know

Zig   Young SC : Don’t dis my buddy Kap…..

Young SC   Where is SAM

Sparky   Young SC wow, where do you get that ridiculous thought?
Spectra   Young SC That’s the way most people are nothing you can do about it!

Young SC   Spectra Thats True

Spectra   Young SC you have your opinions and your entitled tooo them..KAP HAS HIS!

Young SC   Spectra yes i agree

Sparky   Zig no charge!

Young SC   But you have to go by facts not just opinions

​Kaperoni   Since people either do not understand what MCP is or want to believe it means some thing other than it does here is the direct IMF definition.

Kaperoni    ARTICLE VIII AND ARTICLE XIV   Multiple Currency Practices

MULTIPLE CURRENCY PRACTICES—POLICY

The Executive Board approves the decision set forth in SM/81/34, Supplement, 1 (3/17/81).

Decision No. 6790-(81/43),  March 20, 1981,  as amended by Decision No. 11728-(98/56),

May 21, 1998   SM/81/34, Sup. 1 The Executive Board has reviewed the Fund’s policy with respect to multiple currency practices. The Fund shall be guided by the approach outlined in the conclusions set forth below.

1. Official action should not cause exchange rate spreads and cross rate quotations to differ unreasonably from those that arise from the normal commercial costs and risks of exchange transactions.

a.  (i) Action by a member or its fiscal agencies that of itself gives rise to a spread of more than 2 percent between buying and selling rates for spot exchange transactions between the member’s currency and any other member’s currency would be considered a multiple currency practice and would require the prior approval of the Fund.

(ii) An exchange spread that arises without official action would not give rise to a multiple currency practice.

(iii) Deviations between the buying and selling rates for spot transactions and for other transactions would not be considered multiple currency practices if they represent the additional costs and exchange risks for these other transactions.

b. Action by a member or its fiscal agencies which results in midpoint spot exchange rates of other members’ currencies against its own currency in a relationship which differs by more than 1 percent from the midpoint spot exchange rates for these currencies in their principal markets would give rise to a multiple currency practice.

If the differentials of more than 1 percent in these cross rates persist for more than one week, the resulting multiple currency practice would become subject to the approval of the Fund under Article VIII, Section 3.

Kaperoni
https://www.imf.org/external/SelectedDecisions/Description.aspx?decision=6790-(81/43)

Kaperoni   Enjoy..gotta go.

LINK