New IRS Exchange Tax Law effective September 9, 2024, impacts cryptocurrency trading, international treaties, and currency valuations.
Highlights
🚨 New IRS Tax Law: Effective today, impacting cryptocurrency transactions.
🌍 International Treaties: Countries signing agreements affecting trade and currencies.
💱 Currency Backing: All currencies to be backed by national commodities.
📊 Digital Asset Regulations: New guidelines for reporting gains and losses.
🏡 Real Estate Tax Reporting: New requirements for real estate transactions.
🔄 Compliance Deadline: New regulations effective September 16, 2024.
📅 Future Updates: More changes expected in October regarding currency regulations.
Key Insights
📈 Impact of New Tax Regulations: The IRS now requires brokers to report cryptocurrency gains and losses, creating obligations for traders and affecting tax liabilities. This change emphasizes the growing scrutiny of digital assets.
🌐
Global Trade Agreements: As countries finalize international treaties, local currencies will replace the US dollar in trade, potentially reshaping global economic dynamics and currency stability.
🏦 Commodities-Backed Currencies: The trend of backing currencies with physical commodities like gold and silver increases their stability and trust, hinting at a return to more sound financial practices.
⚖️ Real Estate Transactions: New rules require detailed reporting for real estate purchases, reflecting an increased focus on transparency in asset transactions and potential tax revenue.
🔍 Regulatory Oversight: The integration of various financial regulatory bodies suggests a more cohesive approach to monitoring currency exchanges and trading practices, enhancing accountability.
📅 Upcoming Changes: Significant amendments to currency regulations are set for mid-September 2024, indicating a rapidly evolving financial landscape that investors should monitor closely.
💬 Community Engagement: Encouraging dialogue and questions among viewers fosters a supportive community, emphasizing the importance of staying informed during this period of change.
Thank you MarkZ for all your time, and encouragement daily….. PDK
MarkZ Update- Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Tuesday Morning Mark Z, Mods and RV’ers !
Member: Really could use some Hopium today. Hard to watch everything play out, but we still sit here and wait. I wish I were better at patience.
MZ: I think this is important and setting the stage for a fantastic move and possible clouding the reason why??? From the Wall Street Journal . “ Iraqi Banks used US-created system to funnel funds to Iran” Iran does have a tremendous amount of influence in Iraq. Now what are they going to do? They feel they have to crack in on this….If they do this- dinar may drop by at least 10% and the US dollar will be more in demand.
MZ: In a news article from Baghdad today- “ It will turn the parallel market upside down-Sources: Expected decisions from the Central Bank will confuse markets and raise exchange rates” When they say raise exchange rates…they are talking “in the wrong direction” So if one US dollar now equels 1310 dinar ….it will go to one US dollar equels 1500 dinar or so. So what they are going to do is have an auction on US dollars. They are planning on injecting ore US dollars into the markets and buy dinar off of the streets. “To help support the exchange rate” is the claim. And to help clean up the sanctions and oney laundering….
MZ: Think about this. It will hurt the value of the dinar temporarily…..but allows them to buy it at a discount through major auctions. Suck trillions more dinar off the streets …What a great prep going into a re-valuation. It will help them justify a higher value. This may be major for us.
MZ: This is my theory and I think it makes sense.
Member: Sounds like bad news to me….like they won’t RV for weeks now.
MZ: If auctions are immediate- they could be ready in a day or two. I believe they will move forward quickly on this.
MZ: Also the Iranian President is coming to Iraq tomorrow for some talks….this comes on the heels of the articles about Iraq funneling funds to Iran.
MZ: Remember Sudani said just last week that they plan to revalue this year during his administration….I think the timing is great and they are setting the stage.
Member: Remember- by the time we see Iraq news it was already done and we are getting it after the fact?
Member: Mark-any word from your banking, bond or group connections??
MZ: Bond people are still quiet this week. They are still waiting.
Member: I feel sorry for all the bond people that are asked to travel only to be told SOON
Member: I think the Bond people are like us …like the Boy who cried wolf….the PTB lie to them constantly…..and we/they no longer believe anything.
MZ: “Illinois Trucking Company with 480 drivers abruptly ceased operations” They are contracted with the US postal service to haul mail. They are ceasing operation as of Monday and now there will be many postal trailers sitting at docks as of next week.
Member: What is all the chatter about National Guard Troops in every major city?????
MZ: We are seeing very unusual movement with the National Guard in major cities. We don’t know the reason why….but lots of theories out there.
Member: Maybe because tonight is supposed to be a presidential debate?
Member: Wish it was because we need security when we exchange …sigh
Member: Maybe they are finally starting to clean house……start arrests?
Member: Is it our military holding things up? So it seems!!! Every other country is ready to go!!! What’s up with that?
Member: I really hope the RV goes with Nesara/Gesara so we can all be blessed at once
Member: Amen to that.
Member: Mark can you go over your podcast schedule this week?
MZ: I will be off to the airport for a trip stateside right after this podcast. Going to see my children for their birthdays…I will continue to do mornings…..Zester will be filling in some evenings this week …. There will be no Whiskey and Wisdom this week
Member: Zester is a chip off the old block and is quite knowledgeable.
Member: Safe travels Mark….and have a great trip.
Member: Markz… may your trip be uneventful & your visit exciting & relaxing!
Member: Everyone stay positive…..and keep the faith
Member: Faith consists in believing when it is beyond the power of reason to believe.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
FOLLOW MARKZ : TWITTER . https://twitter.com/originalmarkz?s=21. TRUTH SOCIAL . https://truthsocial.com/@theoriginalm...
Mod: MarkZ "Back To Basics" Pre-Recorded Call" for Newbies 10-19-2022 ) https://www.youtube.com/watch?v=37oILmAlptM
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, medical opinions or many guests on this stream……just RV/currency related topics.
ZESTER'S LINK TREE: https://linktr.ee/CrazyCryptonaut
THANKS FOR JOINING. HAVE A BLESSED DAY! POSSIBLY NO PODCAST TONIGHT UNLESS BREAKING NEWS HAPPENS!
Iraq's Monetary Reform: Nearing Completion in 2024
Overview of Iraq's Monetary Reform
Iraq is in the final stages of a significant monetary reform that began in 2024. This reform is part of the broader economic measures designed to address the country's fiscal challenges and reduce its heavy dependence on oil revenues. The International Monetary Fund (IMF) has been closely involved in the process, providing guidance and financial support.
Economic Growth and Fiscal Expansion
The Iraqi government has projected continued economic growth, supported by fiscal expansion. This expansion is critical, as it aims to cushion the economy against medium-term vulnerabilities, particularly the increased risk of oil price volatility. To ensure fiscal sustainability, the government is focusing on controlling the public wage bill and increasing non-oil tax revenues.
Challenges and Opportunities
Iraq faces significant challenges in diversifying its economy and modernizing its financial and banking sectors.
The country's history of conflict and political instability has hindered economic development and private sector growth. Corruption remains a pervasive issue, and the lack of basic services is widespread. However, the government's commitment to the monetary reform presents an opportunity for Iraq to stabilize its economy and lay the groundwork for more sustainable growth.
Budget Approval and Economic Policy
In a notable development, Iraq's parliament approved a three-year federal budget for 2023 to 2025, the largest in the country's history. This budgetary decision is ambitious but also precarious, given Iraq's heavy reliance on oil revenues. The government's ability to fund local investment projects and hire public sector employees is a positive sign, but the volatility of oil markets and Iraq's limited influence in global oil dynamics pose challenges to its economic stability.
Humanitarian and Development Context
Iraq continues to grapple with the aftermath of conflict, including internal displacement and inadequate public services. Despite this, the country has made some strides in human rights and social development, with efforts to combat corruption and improve government services.
The government's focus on the five key issues of corruption, unemployment, poverty, economic reform, and service improvement is crucial for addressing the grievances of Iraqi citizens.
Outlook
As Iraq nears the completion of its monetary reform, the country stands at a critical juncture. The reform's success will depend on the government's ability to implement fiscal adjustments, enhance private sector development, and navigate the challenges of economic diversification and political stability.
Dinar Guru updates reveal Iraq is in the final stages of monetary reform, with expectations for lower notes and increased non-oil revenues.
Highlights
🚀 Frank 26 reports we’re in the final education phase of monetary reform.
💵 Lower notes will be introduced after commercial releases, potentially next year.
🇺🇸 CBI’s meeting with the U.S. Treasury is anticipated to be crucial for the exchange rate.
🏙️ The new Central Bank skyscraper in Baghdad symbolizes stability and progress.
🔄 Non-oil revenue streams, especially liquid natural gas, are set to enhance Iraq’s economy.
📜 Investment law expected to pass within two weeks, boosting economic prospects.
✅ PM Sedani confirms plans to revalue the dinar and remove zeros during his administration.
Key Insights
🔍 The completion of the monetary reform education phase suggests that Iraq is preparing for significant currency changes, indicating a pivotal moment in its economic strategy.
📈 The focus on commercials before lower notes suggests a strategic communication plan to prepare the public for upcoming changes, enhancing public trust and participation.
🤝 The anticipated meeting between the CBI and the U.S. Treasury could lead to essential agreements that impact the dinar’s exchange rate, emphasizing international cooperation.
🏗️ The Central Bank skyscraper not only represents physical growth but also reflects Iraq’s commitment to stability and modernization in its financial institutions.
🌍 Iraq’s shift towards liquid natural gas production demonstrates a diversification of revenue sources, crucial for economic resilience and reduced dependency on oil.
🌟 The upcoming investment law could attract foreign investments, fostering economic growth and stability, which are vital for the dinar’s value.
📅 PM Sedani’s confirmation of currency revaluation ambitions signals a transformative period for the Iraqi dinar, aiming for greater economic strength and public confidence.
Emphasis on Reducing Inflation and Strengthening the Iraqi Dinar in September 2024
In September 2024, Iraq faces significant challenges in managing its economy, particularly in the areas of inflation reduction and strengthening its national currency, the Iraqi dinar. The country's heavy dependence on oil exports has left it vulnerable to global price fluctuations, exacerbating inflationary pressures and impacting the value of the dinar.
Struggling with Macro-Economic Volatility
Iraq's reliance on oil revenues, which account for over 99% of its exports, 85% of the government budget, and 42% of its gross domestic product (GDP), has exposed the country to macro-economic volatility. This dependence has been a double-edged sword, fueling economic growth during periods of high oil prices but leading to severe budgetary constraints and economic instability when oil prices drop.
Government's Fiscal Challenges
The government's budget rigidities have restricted fiscal space and the ability to implement countercyclical policies during economic downturns. Inflation has been a persistent issue, impacting the living standards of Iraqis and complicating fiscal management.
The IMF has noted that domestic inflation declined to 4% by the end of 2023, partly due to the currency revaluation in February 2023 and the normalization in trade finance, but imbalances have worsened due to the large fiscal expansion and lower oil prices.
Efforts to Strengthen the Dinar
The Iraqi dinar's value has become a contentious issue, especially after the Central Bank of Iraq devalued the currency in December 2020 in response to the sharp decline in global crude prices. The devaluation led to immediate increases in the prices of imported goods, affecting the purchasing power of ordinary Iraqis and sparking political debates.
The IMF's Perspective
The International Monetary Fund (IMF) has projected that Iraq's economy will grow by 1.4% in 2024 and accelerate to 5.3% in 2025. However, the IMF has also emphasized the need for ambitious fiscal adjustments to stabilize debt in the medium term and rebuild fiscal buffers.
Future Outlook
Iraq's ongoing fiscal expansion is expected to boost growth in 2024, but at the expense of further deteriorating fiscal and external accounts, making the country more vulnerable to oil price fluctuations. The IMF has warned that without policy adjustments, the risk of medium-term sovereign debt stress is high, and external stability risks could emerge.