MED (14:46:02): SALAM! HOSERS
Mountainman: Med do you know how much currency Iraq has in circulation currently?
MED: WELL BACK IN MAY 2010 THEY SAID THEY HAD 24 TRILLION IN CIRCULATION
Mountainman: According to the CBI site as off January 2012 about 28 trillion down from a high of 30 trillion in 2011
MED: NOW THEY HAVE BOUGHT BACK ALLOT NOW WHEN I LOOKED AT THE IMF SBA REPORT THEY HAD LIKE 10 TRILLION ON THAT REPORT
Mountainman: then its down even more
Mountainman: Curious as I have been studying up on revaluations lately
MED: DOES HAVE A REPORT AND IT SHOULD SHOW HOW MUCH HARD CURRENCY IS ACTUALLY AT THIS MOMENT IS OUT REMEMBER THE M2 SHOWS TOTAL DEBT
MED: AND WE ARE ONLY CONCERNED WITH THE ACTUAL PHYSICAL CURRENCY FROM WHAT WE FIGURED JUST FROM THE SITES THAT YOU AND I HAVE BEEN INVOLVED WITH THERE ARE MANY BILLIONS AND IT COULD POSSIBLY BE SEVERAL TRILLION IN THE U.S.
MED: COUNTING THE GOVT
Mountainman: Their M1 money supply is almost triple that of our US M2 money supply. Did you realize that?
MED: OUR GOVT IS SUPPOSE TO BE ABOUT 5 TRILLION NO I DID NOT
Mountainman: Well a basic in economics is that a monies value is based on how rare it is... If Iraq goes to 1 to 1 then they would assume a 28 trillion dollar debt... which would be way more than even the US current debtr
Mountainman: so it makes alot of sense to me why the CBI is talking about bringing up the value of the dinar in stages
Cheeks: is the amount in cicluartion is 70 trillion dollars
Mountainman: 28 trillion dinars cheeks
Cheeks: dinars right oh where the hell did i get 70 from hum
Mountainman: according to my research there has never been any currency revalue more than 50% at any one time and you would be hard pressed to find many that moved 35%
so historically speaking it would be unreasonable to expect the dinar to leap from 1170 to 1 all in one move because that would represent an increase of over 1000%
Cheeks: so mountain what are yo saying
MED: THAT IS WHAT THEY SAID ALSO MM
Mountainman: I think we are going to see a gradual increase in the value of the dinar
THEY SAID THEY NEEDED TO MOVE IT GRADUALLY TILL IT WAS READY TO HIT ONE TO ONE NOW REMEMBER ON THE APRIL 2007 FEASIBILITY STUDY THEY DETERMINED THAT IRAQ COULD CARRY A 1.17 OR APPROX RATE OF EXCHANGE WITH THE USD BRB
Mountainman: But also and most importantly they did not have nearly as much currency in circulation in 2007 as they do today...
Cheeks: which is removing the 3 zeors from nominal rate.. and that is the start of the rv back to 1:1
Mountainman: That is why the CBI is diligently reducing the amount of dinars in circulation... they need to get as many dinars out of circulation as they can get