DinarThug Posted April 13, 2014 Report Share Posted April 13, 2014 CNN. Broadcasting While Trying To Pay The Gas Bill With Electric Money ! Stryker Blog 4.11.2014 Where Does the Iraqi Dinar Electronic Currency Come From? I wanted to take the time to address an issue that has come up concerning the larger banknotes that the CBI has said they would print. Some are saying that the larger banknotes are to back all the Iraqi electronic money and something I made reference to on Wednesday’s Roundtable Discussions Webcast this week. First I wanted to point out what electronic money is and where it comes from so everyone is on the same page:~~~ Electronic money as defined by Wikipedia.com Electronic money is a new expression the meaning of which is not stable. It can refer to different realities depending on the context (legal or not, historical or actual, monetary theory...). However, the underlying principle of electronic money involves the use of computer networks, the Internet and digital stored value systems. Examples of electronic money are bank deposits, electronic funds transfer (EFT), direct deposit, payment processors, and digital currencies such as Bitcoin. Hard vs. soft electronic currencies as defined by Wikipedia.com A hard electronic currency is one that does not have services to dispute or reverse charges. In other words, it only supports non-reversible transactions. Reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, i f not impossible. The advantage of this arrangement is that the operating costs of the electronic currency system are greatly reduced by not having to resolve payment disputes. Additionally, it allows the electronic currency transactions to clear instantly, making the funds available immediately to the recipient. This means that using hard electronic currency i s more akin (of similar character) to a cash transaction. Examples are Western Union, KlickEx and Bitcoin. A soft electronic currency is one that allows for reversal of payments, for example in case of fraud or disputes. Reversible payment methods generally have a "clearing time" of 72 hours or more. Examples are PayPal and credit card. A hard currency can be softened by using a trusted third party or an escrow service. http://en.wikipedia.org/wiki/Electronic_money See electronic money is just an extension of hard currency, electronic funds come from the mere existence of hard currency and such is backed by each dinar/dollar amount that already exist. There is really no differentiating between the two, you either have hard currency that can be electronically transfer to someone or some entity or you don’t. Even though you may never see the hard currency because your employer direct deposited it straight into your bank account you can bet it was in their account before it made its way to yours and why you can go into your bank access the cash anytime you want too. There must be hard currency at the beginning of all electronic transactions, either in the bank that covers your deposit that will cover your wire transfers, PayPal transaction or you can use cash (hard currency) to transfer by the way of Western Union or other source of transfer systems. This doesn’t mean that all banks must have on hand at all times enough to cover every dollar deposited in their bank, which goes into another subject altogether called fiat currency. All electronic funds are cleared within 72 hours and backed by hard currency. Nowhere in my research does it state that any government, Central Bank or financial institution in the world must print large banknotes to cover their electronic funds.... If a country transfers money to anyone it has been backed by the existence of whatever deposits they have in their accounts, just like me and you do. The point is all electronic funds are backed by every banknote that has been printed and electronic currency is a derivative from hard currency, so why would large banknotes need to be printed just to back what's already out there? The answer is it doesn't, you either have a dollar, a dinar to back that dollar or dinar electronically transferred or you don't. Now when it comes to Credit Cards the lender has the funds that will back that electronic transfer in your behalf but it must be cleared within 72 hours, that’s why you can’t float checks like you use too!! The facts are that the larger banknotes will either be used IF needed for the general population to use or for commercial transactions depending on what timetable the CBI has in mind for currency reform and when.I personally like the fact that the 250, 500 and 1,000 notes are the only ones that seem to be going into circulation according to many - many articles that have come out. I hope this helps, Stryker 7 Link to comment Share on other sites More sharing options...
MyLadiesDaddy Posted April 13, 2014 Report Share Posted April 13, 2014 Wow, he definitely got that one correct. Thanks THUGS. You da man. 4-15-2014 4 Link to comment Share on other sites More sharing options...
stealthwarrior Posted April 13, 2014 Report Share Posted April 13, 2014 YES! I said this yesterday.The united states does not use giant notes anymore because we don't have to.does Canada or UK have 25,000 notes?no 3 Link to comment Share on other sites More sharing options...
ronscarpa Posted April 14, 2014 Report Share Posted April 14, 2014 I like it Stryker...Thanks..! Thanks for the post D.T. (+1) 3 Link to comment Share on other sites More sharing options...
DinarThug Posted April 14, 2014 Author Report Share Posted April 14, 2014 Right On LGD And Captain Ron ! Here's Today's Update From Stryker ... Post From Stryker: Thanks Timesup!!These are the types of articles, statements and opinions from experts and economist that I said to expect going forward after the CBI announcing the re-print of current series of currency,.I like that experts see what we are seeing in the fact it doesn't make sense just to print more of the same without change, it just means we are on the right track in our thinking!!!Monday, April 13 Iraq / futureThe head of the Economic Studies at the University of Kufa, an economist Raad Twigg, the central bank to take comprehensive measures to replace the currency and delete the three zeroes and determine the exchange rate of new Iraqi currency, instead of putting up a new currency confuse the deal in the local market.~~~ Twigg said, that "put the Iraqi Central Bank to cash currency with new specifications without pulling equivalent represents an expansion in the money supply in the local market, and thus reflect negatively in the creation of large inflationary effects."He confirmed that the addition of new cash currency with the old currency would be a duplication of currency exchange market has created an unbalanced cash and Aald blurry in daily trading of the currency. "He continued, "The deletion of zeros from the currency will reduce the current rate of inflation and reduce the large cash trading currencies in the domestic market also reduces the incidence of theft and forgery of currency cash."The Central Bank of Iraq announced, for re-printing banknotes with pictures of the Iraqi new.The bank said in a press statement, said that the re-print the new series of banknotes currently in circulation and the Iraqi pictures of new protected more, using a good quality of printing paper, with the addition of some signs of security. "He pointed out that the current banknotes will continue to be traded with the new will not be pulling rolling them currently or in the future LINK 3 Link to comment Share on other sites More sharing options...
outlawclg Posted April 14, 2014 Report Share Posted April 14, 2014 Right on! I hope times up doesn't take the place of soon. 3 Link to comment Share on other sites More sharing options...
sandfly Posted April 14, 2014 Report Share Posted April 14, 2014 THANKS 2 Link to comment Share on other sites More sharing options...
Driver Posted April 14, 2014 Report Share Posted April 14, 2014 and BEANS 2 Link to comment Share on other sites More sharing options...
DinarThug Posted April 16, 2014 Author Report Share Posted April 16, 2014 Here's Today's Post From Stryker ... Post From Stryker's BlogRandall: Hey Stryker, It’s not his opinion that troubles me but rather the 72 trillion in circulation. Is there any truth to that?Stryker: Randall, I went over this on my webcast yesterday when talking about the dollarization of Iraq, if you get a chance watch it but I'll touch on it here as well. In my studies over the years it shows that Iraq is heavily dollarized and as much as 80% of what Iraqis use every day to buy things are in USD, so that means that the dinar is only used on 20% of the time when they buy goods and services. ~~~ With that in mind, since their economy is calculated (inflation and such) by the use of the dollar as well as the dinar it only sure makes sense that this money supply (USD) is part of that 72 trillion dinar figure that the CBI shows on their financial statements.In other words, each US dollar in their market place should be accounted for on their financials at 1166 dinars, take away one dollar and you would be taking away 1166 dinars once they de-dollarize Iraq. A country only accounts for their money supply by its domestic currency and not by another countries currency that is being used but since their statistics are based on what takes place in their market place it only makes sense that they do this.I could be completely wrong but that's my take on it.Even if I'm wrong and the 72 trillion number is true and it is only dinar on their books Iraq still has enough assets in frozen funds, natural proven resources that can be added to their already vast reserves to increase the value of the dinar significantly anyway.On my webcast yesterday I also talked about how Iraq lost their wealth in the 80's and acquired billions of debt because of Saddam's actions and how it only makes sense that it would be regained the same way. I hope this helps! Stryker Blog 1 Link to comment Share on other sites More sharing options...
rockfl9 Posted April 16, 2014 Report Share Posted April 16, 2014 Strykers post does not compute! Iraqi public workers retirees and welfare recipients are paid in dinar not dollars and they make up 70% of the economy. These dinar come thru the auctions . Iraqis will do all of their day to day transactions in dinar. To get dollars Iraqis must buy them from money changers and pay a premium. The Iraqi does this to store a lot of value with fewer notes. So we are not talking 5s and 10s more likely 50s and 100s. 1 Link to comment Share on other sites More sharing options...
zul Posted April 17, 2014 Report Share Posted April 17, 2014 Iraq is a country where domestic and foreign currencies co-circulate in the market. Normally, "dollarised" economies with co-circulation of currencies often compile bi-monetary aggregates in their reports. But if we look at cbi key financials data, they dont have bi-monetary aggregates. What does this means? Do they just measure the home currency, ignoring the billion of dollars circulating in their market? To regulate money supply, CBI has to know how much money is in circulation, both domestic and foreign. In short, i agree with stryker, that the money in circulation is inclusive of dollars. IMO, CBI must have the capacity to determine the amount of TOTAL currency in circulation, which is essential in measuring liquidity and money supply. And i would be suprised if the 72 trillion is just for dinar. Iraq is a country where domestic and foreign currencies co-circulate in the market. Normally, "dollarised" economies with co-circulation of currencies often compile bi-monetary aggregates in their reports. But if we look at cbi key financials data, they dont have bi-monetary aggregates. What does this means? Do they just measure the home currency, ignoring the billion of dollars circulating in their market? To regulate money supply, CBI has to know how much money is in circulation, both domestic and foreign. In short, i agree with stryker, that the money in circulation is inclusive of dollars. IMO, CBI must have the capacity to determine the amount of TOTAL currency in circulation, which is essential in measuring liquidity and money supply. And i would be suprised if the 72 trillion is just for dinar. Iraq is a country where domestic and foreign currencies co-circulate in the market. Normally, "dollarised" economies with co-circulation of currencies often compile bi-monetary aggregates in their reports. But if we look at cbi key financials data, they dont have bi-monetary aggregates. What does this means? Do they just measure the home currency, ignoring the billion of dollars circulating in their market? To regulate money supply, CBI has to know how much money is in circulation, both domestic and foreign. In short, i agree with stryker, that the money in circulation is inclusive of dollars. IMO, CBI must have the capacity to determine the amount of TOTAL currency in circulation, which is essential in measuring liquidity and money supply. And i would be suprised if the 72 trillion is just for dinar. 4 Link to comment Share on other sites More sharing options...
zul Posted April 17, 2014 Report Share Posted April 17, 2014 Ooops. Im sorry. I dont exactly know how that happens. Ooops. Im sorry. I dont exactly know how that happens. Link to comment Share on other sites More sharing options...
DinarThug Posted April 17, 2014 Author Report Share Posted April 17, 2014 Yo Zul Try Opening A New Thread In The 'Questions + Tech support' Section About Ur Double Postings And Someone There Should Be Able To Help Cure U Of 'The Hiccups'! Btw, I Both Liked And Better Understood Ur Explanation Of 'The Total Currency In Circulation' Way More Than Stryker's ! Here's Today's Stryker Update ... Post From Dinar Detectives4-16-14 Stryker: Here are a few things of importance going on in Iraq right now:ElectionsTariffs & Protection of Product Laws needing to be implemented for price control of food and other essential goodsWTO needs the Tariffs & Protection of Product Laws implemented before full accession can be assured, one goes hand in hand with the other.Negotiations on Oil Deal between Kurdistan & BaghdadNegotiation on 2014 Budget~~~ Parliament Members have been advised that they must stay active until June 14, 2014 even if they are not reelected to pass budgetEO 13303 Expires in 36 days on May 22, 2014CBI preparing to take control and protect all Iraqi assets frozen worth an conservative estimated $150 billion dollarsCBI announced they are ready to re-print current currencyCBI announces that new modern technology is ready to sort and count old currencyCBI announces to the Iraqis not to sign, write or stamp currency, so do not deface the national currencyRafidain & Rasheed, two of the state owned banks preparing to receive frozen assets worth a combined $78 billion dollarsIraqi Banks preparing to go internationalInternational Banks opening up branches all over IraqMajor Oil Companies investing hundreds of millions each in expanding oil production all over IraqHundreds of Billions of International investment funds flowing into Iraq for all kinds of projects from road construction to housing projectsThese are just a few things that makes me believe Iraq is getting very close to economic reform, thus going international. The Team and I will be going over these, answering members questions and more on our roundtable tonight. I hope you can join us. Stryker Blog –4-16-14 Iraq News Journal: Iraq Buys $1.56 Bln of Gold, Biggest Purchase in 3 Years.Iraq bought 36 metric tons of gold this month valued at about $1.56 billion in the largest purchase by a nation in three years.The Central Bank of Iraq acquired the metal to help stabilize the Iraqi dinar against foreign currencies, it said in an e-mailed statement. The country held about 29.8 tons of bullion as of August, according to data on the International Monetary Fund’s website. The latest addition was the biggest since Mexico bought 78.5 tons in March 2011.While nations purchased about 544 tons in 2012 in the largest accumulation in about five decades, acquisitions slowed to 369 tons last year, according to the London-based World Gold Council. Countries will continue buying amounts in the “hundreds” of tons, the producer-funded council said in February. Bullion prices rebounded 9.2 percent since December, after slumping the most since 1981 last year as demand for a store of value waned.“Gold is quite attractive to central bankers,” Mark O’Byrne, a director in Dublin at brokerage GoldCore Ltd., which has more than $200 million in bullion under management, said today by phone. “They see it as an important asset diversification and a safe-haven element within foreign-exchange reserves.”Gold for immediate delivery traded at $1,316.15 an ounce in London, after sliding 28 percent last year. It reached a record $1,921.15 in September 2011. Prices averaged $1,344.78 so far this month, valuing Iraq’s purchase at about $1.56 billion.Iraq’s ReservesAdding the amount Iraq said it bought in March to its reported holding in August would make it the 40th-largest holder by country, according to the WGC. The nation has no plans to sell metal from its reserves, Muneer Omran, director general of investments at the central bank, said in an interview in Dubai in January.Bullion had accounted for less than 2 percent of the nation’s total reserves, compared with about 70 percent for the U.S. and Germany, the biggest holders.“Demand from the likes of Iraq is important,” GoldCore’s O’Byrne said. “It doesn’t necessarily mean it will lead to higher gold prices per se, but it definitely means that there’s an ongoing demand from central banks that is likely to continue” and should support prices, he said.Mexico owns about 123 tons of the metal, according to the WGC. Turkey’s reserves, at about 488.6 tons now, expanded as much as 44.7 tons in July 2012. Bullion has been added to its balance sheet as a result of accepting gold in its reserve requirements from commercial banks. Article Link4-16-14 Dinar Chronicles: Raw Intel from Deep Source(s) - Wednesday Afternoon."Just spoke to [...], very quickly, he has been told that today is the day that Jack Lew goes to the UN and signs off, not this past Monday as Mxxxxxxxx has posted, at the same time or immediately thereafter, the waiting party in Reno is to go into the bank and release the funds.I asked [...] if this info came from the waiting party in Reno, he said no, it came from a reliable agency source, he would not identify, you will recall, I urged [...] to check with [...], this is only what [...] has been told, but it has a higher degree of credibility than anything posted on the xxxxxxx blog, we did not have time to discuss any related Obama resignation or arrests, just remember the 48 hour previously discussed Interpol arrest plan."(We cannot reveal names for their own privacy. ~Dinar Chronicles) 4-16-14 Vision: Indonesian Rupiah Redomination Won’t Be Implemented In The Near Future.The Government’s plan of simplifying its currency value or the rupiah redenomination will not be implemented in the near future.The fluctuating exchange rate and other factors become the reason for the government and Bank Indonesia postpone the plan.Minister of Finance, M. Chatib Basri, stated that the government will not impose the redenomination discourse. Although the Minister admits, Draft on Redenomination Law (RUU) has been already submitted to the House of Representatives (DPR).The Minister considers, there are many risks if the redenomination is continued today, one of which is inflation. If it fails, the redenomination plan will have an impact on high inflation. Article Link – 1 Link to comment Share on other sites More sharing options...
rockfl9 Posted April 17, 2014 Report Share Posted April 17, 2014 The CBI statistics only account for the amount of dinar. When the CBI sells dollars to citizens it is the same as the citizen buying a product the bank gets the dinar and the citizen gets an asset (dollars).. Tue the CBI does not know r care about the dollars in circulation. There is no way to know as the dollars may have left the country or converted to some other asset Link to comment Share on other sites More sharing options...
zul Posted April 17, 2014 Report Share Posted April 17, 2014 The CBI statistics ONLY reports in dinar. We know their M1 is inclusive of foreign currency deposits but are reported in dinar. If they can do that with their M1, why not 'money in circulation'. They already have the 'official' info of how much EXCHANGED dollar is out there (cash sales), from the daily auctions figure. As to whether the money is still in circulation or in country ~ well, nobody knows. Even the Fed assumes that all the money ever printed is still in circulation, less only that which has been officially withdrawn from circulation or is known to have been destroyed. Thugs, tq . We'll see how this works. 2 Link to comment Share on other sites More sharing options...
rockfl9 Posted April 18, 2014 Report Share Posted April 18, 2014 I don't think so The CBI statistics ONLY reports in dinar. We know their M1 is inclusive of foreign currency deposits but are reported in dinar. If they can do that with their M1, why not 'money in circulation'. They already have the 'official' info of how much EXCHANGED dollar is out there (cash sales), from the daily auctions figure. As to whether the money is still in circulation or in country ~ well, nobody knows. Even the Fed assumes that all the money ever printed is still in circulation, less only that which has been officially withdrawn from circulation or is known to have been destroyed. Thugs, tq . We'll see how this works. I don't think so... The CBI only cares about the dinar it has released. Foreign currency, gold , silver or stocks etal are not included in M1 M2 or the like . They are private property and not managed by the CBI. Link to comment Share on other sites More sharing options...
countryroads Posted April 18, 2014 Report Share Posted April 18, 2014 Not much talk anymore about thr RV. Plenty of political mumbo - jumbo talk. GO RV!!!!!!!!!!!!! Link to comment Share on other sites More sharing options...
zul Posted April 19, 2014 Report Share Posted April 19, 2014 I don't think soI don't think so... The CBI only cares about the dinar it has released. Foreign currency, gold , silver or stocks etal are not included in M1 M2 or the like . They are private property and not managed by the CBI. CBI defeinition of Money Supply (M1): represents money outside banks plus current deposits in national and foreign currency for economic sectors (except for central government sector) with commercial banks. you can find that on page 9 of the document : http://www.cbi.iq/documents/Annual_2011f.pdf Here's a clearer definitions of M1 by CBI. (From diff year annual reports) Money Supply (M1): represents money in circulation with the public adding to it current deposits in national and foreign currency for the private sector and public governmental institutions excluding central government. 3 Link to comment Share on other sites More sharing options...
DinarThug Posted April 19, 2014 Author Report Share Posted April 19, 2014 And For Those Of U Keeping Score At Home It's ... Zul ................. - 4 Team LOPster - 0 ------------------------ 5 Link to comment Share on other sites More sharing options...
zul Posted April 19, 2014 Report Share Posted April 19, 2014 (edited) Do we still have team LOPster in here Thug..? Edited April 19, 2014 by zul 4 Link to comment Share on other sites More sharing options...
DinarThug Posted April 19, 2014 Author Report Share Posted April 19, 2014 Do we still have team LOPster in here Thug..? Lol ! Not Really - They Pretty Much All Disbanded After The CBI Announced 2 Weeks Ago That They Were Going To Print New Notes With Additional Security Features To Run In Conjunction With All Of Our Current Notes ! That Took Away Whatever Scraps Were Left Of Their Bu!!$hit Thunder About A Make Believe LOP ! They Could Never Mount A Credible Case Against Iraq's Micro Puny Inflation (LOP's Don't Take Place In The Absence Of Hyper Inflation) And Also The FACT (Yes I Capitalized It) That Iraq Can Currently Back Their Currency With Their Reserves By More Than Double ! (And Btw Try Calling Me Out On That FACT U Little LOPster GirlieMen) Here's A Stryker Web TV - It's An Hour Long ! I Didn't Watch It So I Can't Give Any Feedback ! Stryker Web TV Show Replay Link 4/18/2014 Iraqi Dinar News Today TOPICS INCLUDE: Iraq is preparing to join the World Trade Organization WTO Accession Negotiations ~~~ 2 Link to comment Share on other sites More sharing options...
zul Posted April 19, 2014 Report Share Posted April 19, 2014 Lol ! Not Really - They Pretty Much All Disbanded After The CBI Announced 2 Weeks Ago That They Were Going To Print New Notes With Additional Security Features To Run In Conjunction With All Of Our Current Notes ! That Took Away Whatever Scraps Were Left Of Their Bu!!**** Thunder About A Make Believe LOP ! They Could Never Mount A Credible Case Against Iraq's Micro Puny Inflation (LOP's Don't Take Place In The Absence Of Hyper Inflation) And Also The FACT (Yes I Capitalized It) That Iraq Can Currently Back Their Currency With Their Reserves By More Than Double ! (And Btw Try Calling Me Out On That FACT U Little LOPster GirlieMen) Here's A Stryker Web TV - It's An Hour Long ! I Didn't Watch It So I Can't Give Any Feedback ! Stryker Web TV Show Replay Link 4/18/2014 Iraqi Dinar News Today TOPICS INCLUDE: Iraq is preparing to join the World Trade Organization WTO Accession Negotiations ~~~ there you go.... 3 Link to comment Share on other sites More sharing options...
Artitech Posted April 19, 2014 Report Share Posted April 19, 2014 Like Sryker! thank you for bring him over will tune in 1 Link to comment Share on other sites More sharing options...
rockfl9 Posted April 19, 2014 Report Share Posted April 19, 2014 ZUL: IF Iraqis are allowed to bank deposits in dollars(specifically ) you would be right!. However dollars held privately could not be included in M1 or M2. Simply don't know that value exists. Link to comment Share on other sites More sharing options...
zul Posted April 20, 2014 Report Share Posted April 20, 2014 (edited) ZUL: IF Iraqis are allowed to bank deposits in dollars(specifically ) you would be right!. However dollars held privately could not be included in M1 or M2. Simply don't know that value exists. Rock, Most of the dollars held privately by the Iraqis comes from the daily auctions. They are "exchanged dollar". If you look at the daily auction reports, they basically have 2 components; remittance sales and cash sales. Remittance sales is to finance imports, where payment are made directly to the exporters bank acct. Cash sales, on the other hand, will go directly into circulations, in the hands of their citizen. And CBI have these records with them. The records/data of the daily cash sales are only made available to the public from Jan 2009 onwards. You can view these reports here : http://www.cbi.iq/documents/CBI_FOREIGN_EXCHANGE_AUCTIONS.pdf Of course the effective amount could be higher or lower, depending on the behavioral response of the Iraqis but as far as making assessment as to how much dollar is circulating in the market, CBI have their tools to do so. Edited April 20, 2014 by zul 1 Link to comment Share on other sites More sharing options...
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