More News, Rumors and Opinions Friday PM 12-3-2021
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TNT:
IMF: Zimbabwe Not Eligible For Debt Relief Until After Paying World Bank Debt - The Zimbabwean
(12/2/21)
The International Monetary Fund (IMF) has said Zimbabwe will not qualify for a special debt relief programme until it pays off its debt to the World Bank (WB).
The southern African country has cleared its debt with the IMF but still owes the WB US$1.52 billion.
IMF spokesperson Gerry Rice told a media briefing in Washington that Zimbabwe does not qualify for debt service suspension. Rice said:
Zimbabwe is currently not eligible to make a request for debt relief under the Common Framework because of its arrears to the World Bank. Once the conditions for international re-engagement are in place and arrears to the bank, the World Bank, are resolved, what I can tell you is we believe the common framework could be a useful option to address Zimbabwe’s debt difficulties and of course for its part, the international community requires improvements also in domestic political conditions and economic policies to initiate re-engagement.
The common framework refers to an IMF initiative endorsed by the G20 and Paris Club that coordinates official creditors to provide debt treatments when they are needed by developing countries eligible for the debt service suspension.
In November 2020, G20 finance ministers and central bank governors agreed to the “common framework for debt treatments beyond the debt service suspension initiative”, which was also endorsed by the Paris Club.
However, due to its unsustainable debt and poor repayment record, Zimbabwe has been excluded from the initiative.
In November, an IMF team led by Dhaneshwar Ghura held Article IV meetings with authorities in Harare during which the lender said the threat to the country’s growth plans remained an unsustainable debt.
Last week, the government said external debt increased to US$13.7 billion in September, over half of Zimbabwe’s gross domestic product, from about US$10.7 billion last year despite paying US$44.2 million to external creditors.
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Courtesy of Dinar Guru
Frank26 [Firefly boots-on-the-ground Iraqi TV update] FIREFLY: They're talking about the old currency again...the ones from the 1940's...they're saying how the new currency will support a true dinar rate as long as Iraq enters the global markets...they're telling us about deals with foreign countries...and they must have a strong dinar to have these deals with these foreign countries because Iraq will be a centerpiece in the Middle East... FRANK: The CBI is trying to explain to you why you need this new currency because it has to match the new math that they're trying to explain to you... [Post 1 of 2....stay tuned]
Frank26 [Firefly boots-on-the-ground Iraqi TV update] FRANK continued: the new exchange rate of 1 to 1 against the American dollar and not the sanctioned program rate of 1190 because that does not mathematically work with the new small category notes that they are about to give you. This is a wonderful step in your education because IMO it is putting you in a position to receive them now...IMO you're going to see them before they officially give you the new rate so that you are prepared for the budget at the beginning of next year. They are showing you again this week the old small category notes from the 1940's because they want to make sure you understand that they will be looking almost like the ones that they're going to hand out to you... [Post 2 of 2]
(Alert). IMF Warns Of ECONOMIC COLLAPSE. Fed. Warns Of INFLATION SHOCK. IS ANOTHER CIVIL WAR COMING?
Greg Mannarino: Dec 3, 2021
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Jeff Clark: Why is Silver so Cheap Compared to Other Commodities?
Dec 3, 2021
Jeff discusses his recent article on silver in which he compares silver to other asset classes' performance since 1980. Silver and sugar are the only ones that remain below their 1980 peak.
Everything else today is overvalued and this will change when the mainstream returns to this market. He says, "Focus on what you can control." Jeff explains why the Hunt Brothers had a minimal effect on the silver market in the 80s.
This was a time when everything was responding to monetary events as every asset was rising in price. Gold and silver are money because they hold their value for centuries.
In contrast, just consider the loss of purchasing power of the dollar since the year 2000. Jeff estimates that the 1980 silver price adjusted for inflation should be in the $250 range.
History shows that silver is often stagnant for two to three year periods but then the price rapidly spikes higher. We don't know precisely when but another spike is inevitable.
Jeff prefers to have physical possession of metals since the possibility of a massive economic catastrophe will persist. It's best to avoid counterparty risks.
Mining stocks are more of a leverage play on metals but one should be aware of the risks. Miners remain underappreciated and overlooked due to the prices of underlying metals. This is one area where there remains an excellent opportunity for investors.
Most metal investors were skeptical of the transitory inflation narrative. Now the Fed has abandoned that theory and is anticipating more persistent inflation. There is also evidence that we could move into a deflationary or stagflationary environment for a time.
When the next crisis hits gold will fulfill its primary function of preserving wealth.