Finance Report - Current Conditions

[Deleted]

FINANCE REPORT -- CURRENT CONDITIONS

To the esteemed members of the Ziu of this 41st Cosa of the Kingdom of Talossa, I present the following report of the current status of the finances of the Kingdom, as per Talossan Statute 38RZ15, also known as "The Men in Black II Act," and as mandated by clause 14 of Talossan Statute 36RZ2, also known as the "Newer Numismatic Naming Act." This is the first of two reports required under 38RZ15.


Funds currently held by the Royal Treasury:

Amount: US$445.22, as of 7/22/10
Location: General Savings Account at Port Washington State Bank, Fredonia, Wisconsin, USA
Liquidity: Immediate, upon request by the Burgermeister
Availability: Immediate, upon request by the Burgermeister

Investment Policy:

At this time, no investment is planned.

Valuation of the Louis with respect to foreign currency:

As of 5/26/10, 1 Louis is equal to ...
... 1.50 US Dollars (USD)
... 1.04062 UK Pounds (GBP)
... 1.22680 Euro (EUR)
... 1.60057 Canadian Dollars (CAD)
... 1.81270 Australian Dollars (AUD)

Postage and Currency:

Postage and coins are planned, but precise amounts have not been decided at this time.

The above is submitted this Twenty-Sixth day of May, 2010,
Danihel Forestal
Minister of Finance
Chairman, Royal Bank & Post

[Hooligan]

Thank you, Minister Forestal. It would seem that the current investment policy is not "no investment is planned" but rather "to direct the Burgermeister to continue holding the entire balance of the treasury in the single deposit account in which these funds currently sit". Is this a correct assumption?

If so, for the sake of completeness of the section on the investment policy being followed, what is the interest rate being earned by the treasury in the said account?

Before the budget act (in which funds are budgeted for expenditure or specifically allotted as being retained for use by the Finance Minister to pursue the government's financial investment and growth policy) is presented to the Ziu, might I also ask if it would benefit the Kingdom to move some of these funds into a longer term, higher-interest bearing, certificate of deposit or into securities such as [secure] stocks or bonds? It would seem that perhaps the government feels it best at this time to await an expansion of funds before reducing liquidity in such a way or pursuing (in the case of stocks) a more aggressive growth policy?

I do hope that before too much longer, the Kingdom will have a more aggressive growth policy for His Majesty's funds than simply holding the monies in a single savings account, but I do understand that the amount in the treasury is rather restrictive at this time. Please consider this post simply questions, and hopes for the future, and not in any way suggestions.

Hooligan (MC, RUMP)

[Deleted]

I concur -- a more agressive investment policy is needed, and will be researched and pursued as soon as possible. I will post the current interest rate soon.