popa Posted May 30, 2010 Report Share Posted May 30, 2010 Economist RV Explantion � Part II Thank you very much.--------------------------------------------------------------------------------(5) Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradeable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it�s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country�s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange.This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators.The complete discussion was rather lengthy so here�s the executive summary of how the exchange should work with IQD owned by a US speculator:(1) IQD is released internationally with an exchange rate of $1 USD = 1 IQD(2) IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y�s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate � Bank Private Rate � Bank Public Rate) imposed, but he had no input on that subject.(3) The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn�t any country whose currency was perceived as being equal to or stronger than the USD. The IQD with it�s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it�s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can�t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place.(4) Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury.(5) The Federal Reserve under a controlled redemption plan supervised by the IMF, will use it�s foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc.This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications.The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example:(1) Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account.(2) Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model.(3) The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X are now in the �rich� category and get to enjoy the 35% tax bracket. This lowers the net cost of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out � $3,500 in).(4) The Fed�s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed�s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don�t want USD in their foreign currency reserves.(5) The $10,000 order is filled with 200 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 � .50 � .35)(6) The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD.Simply put, it cost Iraq $130 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $10,000 worth of oil for a net cost of $6,500. That�s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)Now let�s really stir the pot by:(a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.( Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros.© Also execute the plan Iraq announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.(d) To add a little more intrigue have the CBI continue to use it�s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market, think of their impact in public markets.We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it�s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990.Frank26 zip code is $3.21+ as I remember, which is suggested is the same exchange rates cabinet ministers reportedly used to project the 2010 budget.VERY INTERESTING! You have to love it when a plan comes together.__________________IRS Circular 230 requires that those enrolled to practice before the IRS should state when general information is given, that it �SHOULD NOT BE CONSIDERED PROFESSIONAL ADVICE�. We strongly encourage all investors to consult with their own professional financial team. 1 Link to comment Share on other sites More sharing options...
Bobbydee Posted May 30, 2010 Report Share Posted May 30, 2010 Thanks Carla. Excellent post. Very informative. Semper Fi Link to comment Share on other sites More sharing options...
hot2bewe Posted May 30, 2010 Report Share Posted May 30, 2010 I guess this article is no longer needed since they pulled 70% of liquidity. Link to comment Share on other sites More sharing options...
kox Posted May 30, 2010 Report Share Posted May 30, 2010 You need to read the whole article...that is just one step in the process.Thanks Inmarc for all of your details, the whole picture is beginning to emerge...Thanks And Carla for introducing you.. Link to comment Share on other sites More sharing options...
gypsumjohn Posted May 30, 2010 Report Share Posted May 30, 2010 Good read ,Thanks Link to comment Share on other sites More sharing options...
nventr Posted June 4, 2010 Report Share Posted June 4, 2010 Good read ,ThanksYour name "gypsumjohn" intrigues me. I have done some unique (never been done by anyone) things in the world of 'gypsum drywall' so a moniker like yours jolts me to attention. Link to comment Share on other sites More sharing options...
jimanita Posted June 4, 2010 Report Share Posted June 4, 2010 The article at the start of this thread states how Iraq will be able to cash out the flood of incoming IQD if there where an RV. I wrote that it was nothing but mathematical mumbo-jumbo, and I stand behind it. I find it hard to believe the accolades it receives.The whole "Economist Explains..." article is a piece of fiction which uses very deceptive wording to get you to believe in something that is mathematically impossible.I will stick with the original post's numbers and ask each and every one of you this:We each own 1 Million IQD. Do you believe that Iraq is going to pay $13,000 to produce 20,000 barrels of oil so they can give it away so you can get $1 Million? For each outstanding 1 Million IQD? So we can earn a 116,400% gain? They are not giving thier oil away post RV what we give back to them is also worth the same RV rate ... "WE" are not the only ones getting more for our money!! It will be worth the same amount world wide 2 Link to comment Share on other sites More sharing options...
ReturnToGod Posted June 4, 2010 Report Share Posted June 4, 2010 Carlablum, thank you - you are awesome for sharing this info with us! Link to comment Share on other sites More sharing options...
steveandmarlo Posted June 21, 2010 Report Share Posted June 21, 2010 Thanks for the info! Link to comment Share on other sites More sharing options...
Scooter Posted July 27, 2010 Report Share Posted July 27, 2010 Carla, Thank you so much for putting that together --- that was AWESOME!!!! Thanks again, Scooter Link to comment Share on other sites More sharing options...
Uncle Barkie Posted July 27, 2010 Report Share Posted July 27, 2010 That is fantastic information that is very interesting and useful ! Thanks for that great post ! Link to comment Share on other sites More sharing options...
debbieb40 Posted July 27, 2010 Report Share Posted July 27, 2010 very informative, thank you for the post Link to comment Share on other sites More sharing options...
dlbfilm Posted July 30, 2010 Report Share Posted July 30, 2010 Amazing post, hope is a great thing. Well done.... Danny 1 Link to comment Share on other sites More sharing options...
ResoElka Posted July 30, 2010 Report Share Posted July 30, 2010 Great post. 3,22 $ = 1 IQD real exchange rate i hope will be soon. Link to comment Share on other sites More sharing options...
NoPresha Posted July 31, 2010 Report Share Posted July 31, 2010 Economist RV Explantion � Part II -------------------------------------------------------------------------------- (5) Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradeable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it�s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country�s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange. This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators. The complete discussion was rather lengthy so here�s the executive summary of how the exchange should work with IQD owned by a US speculator: (1) IQD is released internationally with an exchange rate of $1 USD = 1 IQD (2) IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y�s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate � Bank Private Rate � Bank Public Rate) imposed, but he had no input on that subject. (3) The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn�t any country whose currency was perceived as being equal to or stronger than the USD. The IQD with it�s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it�s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can�t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place. (4) Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury. (5) The Federal Reserve under a controlled redemption plan supervised by the IMF, will use it�s foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc. This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications. The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example: (1) Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account. (2) Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model. (3) The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X are now in the �rich� category and get to enjoy the 35% tax bracket. This lowers the net cost of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out � $3,500 in). (4) The Fed�s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed�s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don�t want USD in their foreign currency reserves. (5) The $10,000 order is filled with 200 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 � .50 � .35) (6) The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD. Simply put, it cost Iraq $130 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $10,000 worth of oil for a net cost of $6,500. That�s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.) Now let�s really stir the pot by: (a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD. ( Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros. © Also execute the plan Iraq announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury. (d) To add a little more intrigue have the CBI continue to use it�s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market, think of their impact in public markets. We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it�s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990. Frank26 zip code is $3.21+ as I remember, which is suggested is the same exchange rates cabinet ministers reportedly used to project the 2010 budget. VERY INTERESTING! You have to love it when a plan comes together. __________________ IRS Circular 230 requires that those enrolled to practice before the IRS should state when general information is given, that it �SHOULD NOT BE CONSIDERED PROFESSIONAL ADVICE�. We strongly encourage all investors to consult with their own professional financial team. Holy crap, that was a lot of information to process. I don't claim to understand it all, but what I could left me smiling. Thanks for the post. Link to comment Share on other sites More sharing options...
allornone5 Posted July 31, 2010 Report Share Posted July 31, 2010 im not sure if i understand the 3 zeroes being taken off. if i take a 25000 pre RV dinar note in to get it exchanged for a 25 post RV dinar and then equall to 25 US dollars if it RVs at 1.00? does that sound right? or is the exchanged 25 post RV dinar still worth 25,000? can some one please take some baby steps and explain it... im really not dumb just haveing a difficult time wrapping my mind around this. this was my thinking if it RVd at 1USD and i had 25,000 dinar note that i would have 25,000 US dollars.... but i may be way off.... PLEASE HELP!!!!! Link to comment Share on other sites More sharing options...
GrahamB Posted August 2, 2010 Report Share Posted August 2, 2010 (edited) im not sure if i understand the 3 zeroes being taken off. if i take a 25000 pre RV dinar note in to get it exchanged for a 25 post RV dinar and then equall to 25 US dollars if it RVs at 1.00? does that sound right? or is the exchanged 25 post RV dinar still worth 25,000? can some one please take some baby steps and explain it... im really not dumb just haveing a difficult time wrapping my mind around this. this was my thinking if it RVd at 1USD and i had 25,000 dinar note that i would have 25,000 US dollars.... but i may be way off.... PLEASE HELP!!!!! The thing to understand, in respect to this Post, is that it is suggesting that there will be three different scenarios, depending on whether you hold your Dinar: (-A-) In country (IRAQ) as Cash, or (-B-) Out of Country (eg USA, UK etc.) as cash, or (-C-) In a Bank as Iraqi Dinar. The Post suggests that in situation (-A-) above your currency would be exchanged for new notes on a 'Drop 3 Zeros' basis, so you would take in your NID25,000 Note [currently worth approx USD 21.36, and exchange it for a NID25 note now valued at (or near) USD25.00. If the exchange goes through at NID=USD then this gives Iraqis approx 17% gain. In situations (-B-) and (-C-), your NID25,000 (whether Cash or Bank balance) would be exchanged at the rate of One NID = (or approximately equal to) One USD. I hope that clarifies this matter for you! While I see some logic in this proposal, against it lies the matter of 'self interest'. Anyone in Iraq who chooses to adopt this proposal would have to guarantee that all or most of their funds where either in the bank, or out-of-country, if they are not to miss out on the RV 'windfall' that their decision offers to others. Edited August 2, 2010 by GrahamB Link to comment Share on other sites More sharing options...
2dinar1dong Posted August 2, 2010 Report Share Posted August 2, 2010 I just love reading a post that Everyone LOVES..Thanks for the Explanation....I am going to bed with a smile... Link to comment Share on other sites More sharing options...
polygap Posted August 2, 2010 Report Share Posted August 2, 2010 Can anyone tell me if it is more benefical to have the Warka Banking Accout opened now. If so, how do I transfer these notes into this account without penalties before the RV takes place? Link to comment Share on other sites More sharing options...
TR8Man Posted August 3, 2010 Report Share Posted August 3, 2010 Well done. Great read. Thanks Link to comment Share on other sites More sharing options...
debbieb40 Posted August 7, 2010 Report Share Posted August 7, 2010 Thank you sooo much for the breakdown of all of this. You have answered my burning question of how this all works. this is fantastic! I wish to give you a billion thank you's in IQD (future value of course) :P God Bless you Link to comment Share on other sites More sharing options...
debbieb40 Posted August 7, 2010 Report Share Posted August 7, 2010 Help please! In the body of this text I need some help What is the meaning of the following acronyms: DFI (6th paragraph) DOD reserve (item #5 second portion) RV =( is revalue or Reinstate Value or ?) Link to comment Share on other sites More sharing options...
PNixon Posted August 19, 2010 Report Share Posted August 19, 2010 OOOOH heeelll, what have I got to sell, DINARS IMA COMIN!!!!!!!!!!! Link to comment Share on other sites More sharing options...
rroadrunner Posted August 30, 2010 Report Share Posted August 30, 2010 1 to 1 would work for me. I'm not greedy. I'll take the money and run Alan Link to comment Share on other sites More sharing options...
Mortvivant Posted August 30, 2010 Report Share Posted August 30, 2010 Great post! Thank you so very much. The actual date of the RV is irrelevant......Faith my brothers and sisters. It WILL happen. Link to comment Share on other sites More sharing options...
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