7-9-2012

Breitling keeps talking about a dirty float, and how they need to be on a managed float.  Like DaveD has said, a dirty float and a managed float are the same thing.

From Investopedia:

Definition of 'Dirty Float'

A system of floating exchange rates in which the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency. In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy. Also known as a "managed float".   

http://www.investopedia.com/terms/d/dirtyfloat.asp#ixzz207QiKMPZ

Breitling says Iraq can't let the cat out of the bag (that they're going to RV) "even though they have because of guys like me".  I think it's much more likely that there's no cat and no bag and no big RV forthcoming, and that B is either terribly confused or lying about what the CBI is saying.

A listener tells B that the dinar's value is stagnant and the money supply is bloated which would indicate a drop in the GDP.  Actually an increase in the money supply and a stable exchange rate would mean they are expanding their monetary base which would be consistent with a growth in the GDP.  A decrease in the money supply accompanied by a stable exchange rate or a stable money supply with a decrease in the exchange rate would mean a drop in the GDP.  This person is as confused as B is.

Breitling then discusses Turkey's lop again, saying that Turkey's inflation was a huge problem (not when they lopped ... it was right about where Iraq's inflation rate is now) and says that Turkey's numbers were correct but Iraq's aren't.  B, Iraq's money supply numbers would have to be off by over 90% to justify an RV of the magnitude that you guys are talking about.  B also says that the Turkish lira revalued nine times.  I don't see any revaluation of the lira.  There was a redenomination (incorrectly referred to as a revaluation) that occurred in 2005 when they dropped six zeros from the exchange rate, but no revaluations according to what I've read.

http://en.wikipedia.org/wiki/Turkish_lira

B says that Kuwait got their printing plates back after Saddam was removed and then BOOM! the value came back. Actually the Kuwaiti dinar printed after Desert Storm was a different series from the Kuwaiti dinar prior to Desert Storm. Does this guy ever do any research before he opens his mouth? B says that when Iraq talks about printing new 50 notes they're just talking about printing more of the current 50s only with a new design.  Well ..... not exactly.  What they're talking about is replacing the current 50 notes worth less than a nickel ($.043) with a new 50 worth about $43 (50,000 of today's dinar).&

BAGHDAD, Nov. 24 (AKnews) – The Iraqi Central Bank (ICB) has confirmed it will issue a new bill with a value of 50,000 IQD ($43 USD) but marked as 50 dinars.

http://dinardouchebags.blogspot.com/2011/11/new-50-dinar-note.html

That's a lop Breitling.  End of story!

In B's second video of the day he basically just pumps his REIC gig this weekend and then starts talking about his philosophy of  self-reliance.  Nothing wrong with that philosophy but the point he raised to validate his view was nonsense.  He claims that India takes kids off the streets and teaches them to read and write and turns them into better computer programmers than our universities produce.  My God!  India's technology schools are highly competitive.  They don't take illiterate kids off the streets.

They have an entrance exam for their technology institutes and only about 1 in 50 are accepted.

They take the elite from their school system and turn them into great programmers, not illiterate kids off the street.  Where does B get this stuff?

http://www.youtube.com/watch?v=Oxy55TY9IMQ&feature=plcp

http://www.youtube.com/watch?v=zeQoyRmJAMw&feature=relmfu