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(DENN Financial) - Dragon Empre Sovereign Wealth Fund Update


Maelstrom Vortex

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The Sovereign Wealth Fund Current Status

Current Portfolio Holdings:

20% Industrial Sectors, Ardoria

10% All other Sectors, Ardoria

100% Botha Brewery company.

10% in other alllowed Sectors in Botha

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Current Cash Holdings:

2.595 Trillion in Talons and other sovereign currencies.

Currency Distribution objective: (Approximately 100,000,000,000 talons in value each if available.)

5% Dragonisian Talons

5% Hanseatic Marks

5% Melvin Republic s

5% Kingdom of Cochin

5% Andonian

5% Rebel Army

5% Palintine

5% Peoples Republic of China

5% Lu Empire

5% Khmer

5% Siam

5% New Cymru

5% Promised Land

5% Northeast People's Republic

5% Somal

25% Precious Metals/Oil

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Social Security System

Seeding Pool Value: 1.15 Trillion Talons

Growth over last 3 years: 150 Billion Talons

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The Global Nuclear Fallout and Depression Recovery Charity

Intiail Seeding Pool Value: 2 Trillion Talons

Remaining Nuclear Fallout and Depression Recovery Charity: 825 Billion

Growth over last 3 years: 75 Billion Talons

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Estimated portfolio returns for all investments -1 to 5% depending upon volatility in the global economy.

Recent major moves

Currency Holdings diversification.

To stabilize the value of the monetary fund against regional economys, the Dragon Empire has sought out the currency of its states and neighbors to hold in its reserves to meet the above stated diversification objectives as part of its cash portfolio. Additionally, oil and precious metals were added to the portfolio as a recognized form of commodity which bordered upon status as its own currency. Further diversification is expected as the Empire seeks to stabilize the strength of its currency against the world's monetary supplies. The currency diversification with the nations in the portfolio was achievable because those nations either had open markets or were free trade partners of the Empire.

Operation Global Currency Raptor

Additionally, with the economic downturn in Palintine and the biological attack in Hansa Republic, the Empire has stepped in and bought massive quantities of these currencies off the market due to their devaluations. The currencies of the respective states rallied late in the day as it was a sure sign of global confidence in the recovery of the afflicted sectors. It was not long after the Dragon Empire announced their intent to intervene on behalf of the Hansa in helping in their domestic recovery efforts with foreign aid. If it is successful, the Empire will be the benefactor of a major windfall on Hansa's economic growth once the recovery begins. It is recognized that this is a very long term investment for the Empire and that returns may not be seen for several years, if not a decade, but they're almost guaranteed save for the collapse of the Hansa republic.. which the Empire does not see as happening any time soon.

Distribution to the Maglev Fund

5 Billion of the currency reserves were forwarded to MUMS project managers.

Edited by Maelstrom Vortex
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ooc: That's because printing excessive quantities of money causes inflation. The Sovereign Wealth Fund just keeps enough money in its own currency to keep the national economy running steadily. Keeping your own money in reserve is little more than holding legal documents in a vault. Until you put it into circulation it doesn't have real tangible value.. but keeping it on hand in case you are heading into a recession is a good way to have a life-saver prepared. If you keep to much on hand and in circulation and the world knows about it.. your currency values crash versus other currencies because you have to much paper and to little value. If you back your currency with other currencies, it lends it greater strength as basically you have something to redeem your own currency for. It's kind of like a gold standard, without the gold and various international cash allotments instead. Using this model the average Dragonisian could basically come to the government and trade their dollar for any one of the other items in an equivalent value straight out of the wealth fund.. although currently it's not permitted as they're not buying talons up.

Edited by Maelstrom Vortex
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OOC: Currency board ftw!

IC: The Melvin Republic is glad that we have such an economic-minded leader running the finances of the Empire. Our economy has been growing stronger knowing that it is backed by such a secure Empire Treasury.

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Preliminary estimates have found that the 1st stage production costs of the underground maglev project to be 5 billion dollars. We request that those funds be transferred to the MUMS fund, where Melvin Republican accountants can distribute the money to the various contractors and government workers.

The $5 billion dollars will cover the costs of surveying the best possible routes, as well as physically digging the tunnels.

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Preliminary estimates have found that the 1st stage production costs of the underground maglev project to be 5 billion dollars. We request that those funds be transferred to the MUMS fund, where Melvin Republican accountants can distribute the money to the various contractors and government workers.

The $5 billion dollars will cover the costs of surveying the best possible routes, as well as physically digging the tunnels.

OOC: Is this classified or not? :ph34r: cuz I might have 4000 miles of maglev tunnel equipment i might want to sell. :ehm:

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