35 replies to this topic

[DaveD]

I bet there's been close to 100 articles. Look at the chart I linked. It jumped back in Jan and there's been articles out almost daily about it and what to do about it. It was the sanctions in Syria and Iran. They limited and even shut down auctions. This has been going on for a while.


Of course delete 3 zeros is a bad thing for dinar holders. For Iraqis it’s a simple currency swap with no gain or no loss, so no big deal. That’s why we have seen 100’s of articles about it. It’s not a big deal to discuss and talk about because it’s a revenue neutral event.
We have seen countries lie and deny RVing their currency 1% or even ½%. Anyone who thinks Iraq is openly discussing a 100,000 RV is either massively ignorant of currency basics… or they stand to profit from dinar sales and hype. Some fit in both categories.

And anyone else reading this… please don’t give me crap for going personal. Look up the word ignorant. It simply means lacking knowledge or unaware. I’m not saying people are stupid. They are simply ignorant on the subject of economics and currency. I bought the dinar and held millions for a short time. I was totally ignorant at the time.

[jackster]

I bet there's been close to 100 articles. Look at the chart I linked. It jumped back in Jan and there's been articles out almost daily about it and what to do about it. It was the sanctions in Syria and Iran. They limited and even shut down auctions. This has been going on for a while.


Of course delete 3 zeros is a bad thing for dinar holders. For Iraqis it’s a simple currency swap with no gain or no loss, so no big deal. That’s why we have seen 100’s of articles about it. It’s not a big deal to discuss and talk about because it’s a revenue neutral event.
We have seen countries lie and deny RVing their currency 1% or even ½%. Anyone who thinks Iraq is openly discussing a 100,000 RV is either massively ignorant of currency basics… or they stand to profit from dinar sales and hype. Some fit in both categories.

And anyone else reading this… please don’t give me crap for going personal. Look up the word ignorant. It simply means lacking knowledge or unaware. I’m not saying people are stupid. They are simply ignorant on the subject of economics and currency. I bought the dinar and held millions for a short time. I was totally ignorant at the time.

Looks like some ignorant person negged you. Not a stupid person, but an ignorant person.

I thought the 3-zero RD was a bad thing. I got confused when the Pro-RVers wer saying the RD would accelerate the RV process.

BTW, do you still hold IQD? Just curious.

Edited by jackster, 30 May 2012 - 12:52 PM.

[skrappyone]

Also dinar will NEVER be used to buy oil. Why would Iraq want their own currency for their oil? They can print all of the dinar they want. Plus they sold that dinar for 1/10th of a US penny and now they are going to give a barrel of oil for 100 dinar? Huh? Thats like giving away oil around the world for about 10 cents a barrel. Hahaha
This post has been edited by dinarck: Yesterday, 08:23 PM



Read more: http://dinarvets.com.../#ixzz1wOotqlU1

If they are not gonna be willing to take Dinar for oil under the example you give then why would they worry about RV_RD_RI or anything that has to do with their money. According to your statement they might as well use it for heat and continue to use the USD forever. I never said it would be 100 Dinar a barrel so you are adding words like you accuse others of doing to pump up. Be realistic. If they RV at 3-1 then the US and other countries could buy oil for 30 Dinar a barrel, more or less, depending on the rate of oil at the time. Yes they can print all the dinar they want, but so can every country that has their own currency, but it will continue to drop their value also. Just saying, think about it.

[dinarck]

Also dinar will NEVER be used to buy oil. Why would Iraq want their own currency for their oil? They can print all of the dinar they want. Plus they sold that dinar for 1/10th of a US penny and now they are going to give a barrel of oil for 100 dinar? Huh? Thats like giving away oil around the world for about 10 cents a barrel. Hahaha
This post has been edited by dinarck: Yesterday, 08:23 PM



Read more: http://dinarvets.com.../#ixzz1wOotqlU1

If they are not gonna be willing to take Dinar for oil under the example you give then why would they worry about RV_RD_RI or anything that has to do with their money. According to your statement they might as well use it for heat and continue to use the USD forever. I never said it would be 100 Dinar a barrel so you are adding words like you accuse others of doing to pump up. Be realistic. If they RV at 3-1 then the US and other countries could buy oil for 30 Dinar a barrel, more or less, depending on the rate of oil at the time. Yes they can print all the dinar they want, but so can every country that has their own currency, but it will continue to drop their value also. Just saying, think about it.

I have thought about it. Oil is purchased world wide with dollars. Nobody wants Iraqs hyperinflated currency including Iraq who is selling as much of it as they can unload in exchange for US dollars.

Ok. Here is how your theory works. Iraq gives the US, Britain, China and whoever else is in this ”plan” trillions of dinar for billions of dollars, pounds and so on. Then Iraq ”RVs” their currency by 300,000% overnight like you are suggesting so that they can then be paid in their own currency. The very currency that they sold these nations for less than 1/10th of a penny. Now they are going to give a barrel of oil for that same currency? Why not just give trillions of dollars worth of oil away for free instead because that is all that they would be doing. Another way to think about it is that they gave away to these nations the equivelant of 10s of trillions of US dollars in exchange for billions. On what planet does any of this make sense? How can hype and misinformation destroy all logical thinking in people?

Just the fact alone that you truely believe that Iraq could RV by 300,000% is pretty telling. You do realize that there would then 210 trillion dollars worth of dinar in exsistence right? Hahaha....Again, on what planet can this even begin to be taken seriously?

If you would like to continue this discussion then please provide an explaination of how a RV overnight by 3000 times the current value is possible. If not then this debate is pointless.

[DaveD]

If they are not gonna be willing to take Dinar for oil under the example you give then why would they worry about RV_RD_RI or anything that has to do with their money. According to your statement they might as well use it for heat and continue to use the USD forever. I never said it would be 100 Dinar a barrel so you are adding words like you accuse others of doing to pump up. Be realistic. If they RV at 3-1 then the US and other countries could buy oil for 30 Dinar a barrel, more or less, depending on the rate of oil at the time. Yes they can print all the dinar they want, but so can every country that has their own currency, but it will continue to drop their value also. Just saying, think about it.

It’s amazing to me that you understand the highlighted statement above. Yet you can’t seem to apply that statement to Iraq.
Iraq had 30 billion dinar back in 1980 when they had the $3 rate and now they have printed over 30 Trillion and have over 70 Trillion M2. Is it not obvious that they increased the money supply over 1000 times and explains perfectly why the rate is now over 1000 times lower.

[BigFrankD]

How can hype and misinformation destroy all logical thinking in people?

1. A lot of people simply aren't very smart. How many dinarians have you seen that aren't capable of calculating percentages correctly? It's quite a few.

2. A lot of people that are intelligent enough to understand its completely impossible allow greed or desperation to overwhelm their common sense. Unfortunately what might be a harmless fantasy (akin to dreaming about winning the lottery) can be an extremely self destructive practice in many instances. Dinar mania has caused divorces, foreclosures, all kinds of horrible problems for people that are living in a fantasy world where they're about to become rich "any day now".

[RRSport]

“The things that will destroy America are prosperity at any price, peace at any price, safety first instead of duty first and love of soft living and the get-rich-quick theory of life.”

Theodore Roosevelt

Edited by RRSport, 31 May 2012 - 02:41 PM.

[icfaith]

I have thought about it. Oil is purchased world wide with dollars. Nobody wants Iraqs hyperinflated currency including Iraq who is selling as much of it as they can unload in exchange for US dollars.

Ok. Here is how your theory works. Iraq gives the US, Britain, China and whoever else is in this ”plan” trillions of dinar for billions of dollars, pounds and so on. Then Iraq ”RVs” their currency by 300,000% overnight like you are suggesting so that they can then be paid in their own currency. The very currency that they sold these nations for less than 1/10th of a penny. Now they are going to give a barrel of oil for that same currency? Why not just give trillions of dollars worth of oil away for free instead because that is all that they would be doing. Another way to think about it is that they gave away to these nations the equivelant of 10s of trillions of US dollars in exchange for billions. On what planet does any of this make sense? How can hype and misinformation destroy all logical thinking in people?

Just the fact alone that you truely believe that Iraq could RV by 300,000% is pretty telling. You do realize that there would then 210 trillion dollars worth of dinar in exsistence right? Hahaha....Again, on what planet can this even begin to be taken seriously?

If you would like to continue this discussion then please provide an explaination of how a RV overnight by 3000 times the current value is possible. If not then this debate is pointless.

My problem with this statement is the "hyperinflated" word. Where in Iraq is there hyperinflation? As of May 2012 the inflation rate is 8.7%. Inflation is not even a concern until its over 10%.

To start Iraq off after the war was over, USA put into their government, 500 billion dollars. This is additional $$$ to the cost of the war. My belief is we didn't just give Iraq $500 billion, what we did was traded $500 billion USD for the equivilant of their new Iraq currency at the rate it was worth then in 2003. The possible point of why Bush was stating the Iraq war would pay for itself. As it would be redeemed later after whatever RV took place.

All oil sold is sold using the US dollar as the platform. Granted. Now I am not one of those that believe Iraq will overnight come out at $3 plus. People believing this need to wake up. Although, it will have a starting point, whether that is 1000 IQD to $1 or higher is yet to be seen. Regardless, there will be a point when USA will want to use the IQD they have for their advantage. Lets face it, there has never been a war that took place that wasn't for financial gain.

[DaveD]

“This report was originally prepared at the request of the Senate Committee on
Foreign Relations. With the Committee's permission, it is being made generally
available for the use of Members.”

Currency and the Balance of Payments: The Iraqi dinar was long considered a strong currency aided by oil revenues and rising foreign exchange reserves. Some of this reputation may be attributable to the decision, by the National Bank of Iraq in the 1950’s, to maintain 100% reserves behind outstanding domestic currency.30 The official rate was variously set between $3 per dinar to $3.38 per dinar in the 1970s, the last official rate of $3.11 per dinar was set in 1982. During the 1970s, the official and markets rates generally corresponded and by 1980 the country had $35 billion in foreign exchange reserves. By 1987, that figure had fallen to $2 billion. The currency depreciated steadily during the Iran-Iraq war, and the pace of descent quickened after the first Gulf war. One estimate had the currency depreciate from 4 to 8 dinars per dollar in 1990-91. The advent of sanctions paradoxically stabilized the currency for a brief time as foreign exchange transactions virtually ceased. However, the onset of limited food and medicine trade under sanctions renewed the downward slide. The dinar reached an all-time low of 2,660 per dollar in December 1995. It has slowly appreciated from that low, yet has fluctuated widely from 1,000 to 2,300 dinars per dollar in the period 1997-2001 on the black market.

Inflation: As with other indicators, data on inflation are spotty and, during the 1990s, price data have a highly anecdotal quality. Before the oil boom, the Iraqi economy was characterized by price stability with an inflation rate at 5-6% during the period 1960-73.34 This source calculates inflation increasing from 18% to 68% between 1975-79 as a consequence of substantial currency inflows related to the oil boom.35 Prices continued to rise during the Iran-Iraq war as resources were diverted toward the military and government borrowing from the central bank expanded the monetary base. Inflation was recorded at 95% in 1980 and had increased to 400% by 1989. During the 1990s, a period of hyperinflation occurred. The government continued to print money to meet expenditures while economic sanctions shut off the supply of imported goods leading to a classical monetary overhang. A yearly inflation rate of upwards of 2,000% per cent was reported in open market food prices between 1990-1991.36 Another source estimated that inflation increased 5,000% between 1990and 1995.


It's amazing that the dinar went from $3 in 1980 to over 1000:1 and people still claim there has been no high inflation. They have bought into the silly lie pumped by dealers and gurus that the dinar was somehow just magically devalued overnight. That helps them sell the lie that it will magically revalue overnight one day.

[doctor robbins]

My problem with this statement is the "hyperinflated" word. Where in Iraq is there hyperinflation? As of May 2012 the inflation rate is 8.7%. Inflation is not even a concern until its over 10%.

To start Iraq off after the war was over, USA put into their government, 500 billion dollars. This is additional $$$ to the cost of the war. My belief is we didn't just give Iraq $500 billion, what we did was traded $500 billion USD for the equivilant of their new Iraq currency at the rate it was worth then in 2003. The possible point of why Bush was stating the Iraq war would pay for itself. As it would be redeemed later after whatever RV took place.

All oil sold is sold using the US dollar as the platform. Granted. Now I am not one of those that believe Iraq will overnight come out at $3 plus. People believing this need to wake up. Although, it will have a starting point, whether that is 1000 IQD to $1 or higher is yet to be seen. Regardless, there will be a point when USA will want to use the IQD they have for their advantage. Lets face it, there has never been a war that took place that wasn't for financial gain.

He didn't say that there is hyperinflation now in Iraq. But the currency is hyperinflated in that its value is less than 1/10 of 1% of what it was 20 years ago.

[dinarck]

My problem with this statement is the "hyperinflated" word. Where in Iraq is there hyperinflation? As of May 2012 the inflation rate is 8.7%. Inflation is not even a concern until its over 10%.

To start Iraq off after the war was over, USA put into their government, 500 billion dollars. This is additional $$$ to the cost of the war. My belief is we didn't just give Iraq $500 billion, what we did was traded $500 billion USD for the equivilant of their new Iraq currency at the rate it was worth then in 2003. The possible point of why Bush was stating the Iraq war would pay for itself. As it would be redeemed later after whatever RV took place.

All oil sold is sold using the US dollar as the platform. Granted. Now I am not one of those that believe Iraq will overnight come out at $3 plus. People believing this need to wake up. Although, it will have a starting point, whether that is 1000 IQD to $1 or higher is yet to be seen. Regardless, there will be a point when USA will want to use the IQD they have for their advantage. Lets face it, there has never been a war that took place that wasn't for financial gain.

As has already been pointed out, the IQD is in a hyperinflated state due to PAST hyperinflation. Just because countries bring hyperinflation under control doesnt mean their currency goes back to normal. Why do you think that you were able to buy a dinar for less than 1/10th of a US penny? Well, because its in a hyperinflated state.

I read your post in the opinions section and I have to respectfully say that you are wrong. All of the countries that you referenced had redenominations for the exact same reasons that Iraq will. Once a country goes through a period of hyperinflation then there is no going back to a non-hyperinflated state overnight unless they redenominate. During that period of hyperinflation, MASSIVE amounts of currency is printed due to the falling value. What do you think happened to that massive amount of currency? If you believe pumpers and liars then they have been removing it from circulation. This is false. The amount has done nothing but grow every year.

I know that it is fun to believe the George Bush said nonsense but that is all that it is. As a matter of fact please show us a video or article where he said that. Even if he did I am sure he meant by sweetheart oil deals and access to Iraqs oil fields. Now a days wars are fought more for future resources and less for finacial gain. Iraq has oil for decades and now we have access to it. There it is in a nutshell. Their hyperinflated currency is meaningless. We now also have bases in Iraq which is right next door to Iran. How convenient. Iran has decades worth of oil too. You know what else they have? A hyperinflated currency. Why is that when countries with lots of oil can "RV" their currency when ever they want? Well maybe the US will go in there and make a "plan" to RV that currency too. What about Venezuela? Why didnt they "RV" since "RVs" are real and imminent in Iraq? Venezuela LOPPED (in your words). Why? Why would a oil rich country redenominate their currency when they can "RV" because they have alot of oil? The answer is because massive overnight RVs dont exsists and are impossible in economics. Show me one. Anywhere any time in history. You cant because there never has and never will be one because they are not real. Only made up illusions to sell hyperinflated currencies.

Just like Keepem already offered, if there is more that you do not understand or anything else that you are confused about then please dont hesitate to ask. There are pleny of people here that will give you the correct answers instead of the forum "facts" that everyone wants to hear.

[icfaith]

As has already been pointed out, the IQD is in a hyperinflated state due to PAST hyperinflation. Just because countries bring hyperinflation under control doesnt mean their currency goes back to normal. Why do you think that you were able to buy a dinar for less than 1/10th of a US penny? Well, because its in a hyperinflated state.

I read your post in the opinions section and I have to respectfully say that you are wrong. All of the countries that you referenced had redenominations for the exact same reasons that Iraq will. Once a country goes through a period of hyperinflation then there is no going back to a non-hyperinflated state overnight unless they redenominate. During that period of hyperinflation, MASSIVE amounts of currency is printed due to the falling value. What do you think happened to that massive amount of currency? If you believe pumpers and liars then they have been removing it from circulation. This is false. The amount has done nothing but grow every year.

I know that it is fun to believe the George Bush said nonsense but that is all that it is. As a matter of fact please show us a video or article where he said that. Even if he did I am sure he meant by sweetheart oil deals and access to Iraqs oil fields. Now a days wars are fought more for future resources and less for finacial gain. Iraq has oil for decades and now we have access to it. There it is in a nutshell. Their hyperinflated currency is meaningless. We now also have bases in Iraq which is right next door to Iran. How convenient. Iran has decades worth of oil too. You know what else they have? A hyperinflated currency. Why is that when countries with lots of oil can "RV" their currency when ever they want? Well maybe the US will go in there and make a "plan" to RV that currency too. What about Venezuela? Why didnt they "RV" since "RVs" are real and imminent in Iraq? Venezuela LOPPED (in your words). Why? Why would a oil rich country redenominate their currency when they can "RV" because they have alot of oil? The answer is because massive overnight RVs dont exsists and are impossible in economics. Show me one. Anywhere any time in history. You cant because there never has and never will be one because they are not real. Only made up illusions to sell hyperinflated currencies.

Just like Keepem already offered, if there is more that you do not understand or anything else that you are confused about then please dont hesitate to ask. There are pleny of people here that will give you the correct answers instead of the forum "facts" that everyone wants to hear.

So, if what you say is true or what your belief is, then why are you invested with Iraq Dinar?

[jackster]

So, if what you say is true or what your belief is, then why are you invested with Iraq Dinar?

Wow! I'm trying to figure out how your question to dinarck supports your initial post.

Forget discussing points in this forum. Go after the person. Typical.

[dinarck]

So, if what you say is true or what your belief is, then why are you invested with Iraq Dinar?

Haha... Dont worry. I get this alot. Many who have lost the argument ask the same thing. That question has been answered by me a hundred times and is irrelevant to the topic at hand.

What I say is true. If you dont believe it then just research redenominations and how they work. Dont take my word for it. Look into Turkeys RD and what their inflation rate was at the time. Look at Venezuelas and you will see clearly that Iraq is describing the exact same thing. A little research into reality as opposed to forum pumper misinformation is really all it takes to clearly see what is going on.

[daniel c]

DONE


Fazil Nabi, Iraq’s deputy finance minister, previously confirmed to Rudaw that eliminating zeros from Iraq’s currency will not increase the value of Iraqi dinars. (Government spokesman Dr Ali al-Dabbagh also confirmed to Iraq Business News in September of last year that removal of the zeros was purely cosmetic.)

http://bit.ly/KTQe8Q

WAIT ...eliminating zeros from Iraq’s currency will not increase the value of Iraqi dinars.
currently IQD 1165.13 -~~ US$1
IQD 25,000note ~~ US$21.45
after removing 000 with no value increase (mean no change in value) means
IQD 25 note ~~ US $21.45
resulting in a rate of 0.85

is this what he mean???

[jackster]

WAIT ...eliminating zeros from Iraq’s currency will not increase the value of Iraqi dinars.
currently IQD 1165.13 -~~ US$1
IQD 25,000note ~~ US$21.45
after removing 000 with no value increase (mean no change in value) means
IQD 25 note ~~ US $21.45
resulting in a rate of 0.85

is this what he mean???

Any redenomination will have no affect on any currency exchange. Well, maybe about 1%-2%.

You have a 25k IQD note in your wallet. You find something at a store priced at 25k IQD. That evening, after the stores are closed, the 3 -zero RD happens. Next day, that 25k IQD note is now valued at 25 IQD (without the K). And the item in the store is now priced at 25 IQD (without the K). Even your bank account which had a balance of 25,000 IQD, now has 25 IQD.

The exchange rate 1165 IQD = $1.00, now becomes 1.165 IQD = $1.00. or 1 IQD = $0.85 approximately.

This is what he mean.