YES, OR NO

[pureau79]

PS. my suggestion that it is but isn't does not imply that it (currency circulating in country) would be of no effect. Also, KWF, I was not your negative (not that you care)... You have created a "fan" club, but I haven't joined it. I do not always like your posts, but I attempt to perceive the intent and not simply judge you because of the occassional appearance that you are a bloviating know it all. The differences in style and approach create a chasm many seem unable, or unwilling, to bridge, but I hear you and somewhat understand. SO, here's to a good ending for you and I hope the ride is almost over. It is too tiresome. Peace. Out.

[roger-write]

The key to me is that they have repeatedly said they plan to "raise the value of the dinar against the dollar." You can't do that with a LOP.

Peace, goodwill, and have a very merry RV!

[hspotman]

Here's one other thing, and I really don't know the amount of detail it takes for a country to LOP it's currency, BUT do they even have time to do it? It has been said that once Maliki announces the government is in place, and they are pulled out of ch7,that the RV is then present. In fact, I have heard that to be released they HAVE to have revalued their currency. Well, that/those announcements are supposedly to take place today at the UN meeting, unless something has changed....AND even if it doesn't take place today, Maliki has until the 25th to do so I thought-30 day time period ends 25th.

Edited December 15, 2010 by hspotman

[Doc31]

WILL WE SEE A LOP...YES OR NO DOE'S ANYBODY REALLY KNOW?

Why didn't you simply do a poll? You'd actually have a ratio of lopsters to non-lopsters!

HERE IS MY OPINION: SMALLER DENOMINATION BILLS COMING OUT: IMO YES.... A REVALUATION: IMO YES.... WILL WE EXCHANGE FOR SMALLER NOTES: IMO NO... WE WILL MAKE A DEPOSIT INTO OUR BANKS AND NEVER SEE OUR DINAR AGAIN ...WE WILL WITHRAWL USD.... WILL IRAQ PAY FOR THIS: IMO YES, BUT THRU THE BANKING SYSTEM VIA RESERVE BANK , OUR DINAR WILL NOW BECOME PART OF OUR FOREIGN RESERVES IN WHICH WE WILL USE TO PURCHASE OIL FROM IRAQ........ KEEP IN MIND THAT THEY DO NOT HAVE TO PAY OUT RV X 27TRILLION: IF THEY HAD TO PAY THE FULL 27TRILLION X RV THAT WOULD MEAN THAT THEY DO NOT HAVE ANY DINAR ON THE STREETS OF IRAQ.. IF THEY HAD NO DINAR ON THE STREETS THEY WOULD HAVE TO PRINT MORE: IMO THEY WILL NOT MAKE MORE.... THIS ALL IS JUST MY OPINION NOTHING MORE........... REDRV

Nice job ... right up to the "paying out the 27 trillion in IQD" ... that part isn't accurate ... otherwise very nice and especially the "into our foreign reserves" part.

Let's follow this logic all the way through to its conclusion. You say that the 25,000 Dinar notes will be forfeited in exchange for 25 Dinar notes. Let's assume I have 40 25,000 Dinar notes (1,000,000 Dinars) and I exchange them for the new 25 Dinar notes as you suggest. I will receive 40,000 25 Dinar notes in exchange for my 40 25,000 Dinar notes. I will still have 1,000,000 Dinars. When they revalue, (we'll use 1:1 to make the math easy) I will have $1,000,000 US. What am I missing?

If you are suggesting Iraq will only give me (and everyone else holding 25,000 Dinar notes) one 25 Dinar note for each 25,000 Dinar note in hand, then you are missing an important point. What about all the other notes currently in circulation? Will they hold their value while the bills with the three zeros get devalued by 1,000 percent? I think not.

Well done ... everyone always misses this point ... they are always so busy trying to make a 25,000 note into a 25 note.

Peace

Doc31

[pureau79]

Why didn't you simply do a poll? You'd actually have a ratio of lopsters to non-lopsters!

Nice job ... right up to the "paying out the 27 trillion in IQD" ... that part isn't accurate ... otherwise very nice and especially the "into our foreign reserves" part.

Well done ... everyone always misses this point ... they are always so busy trying to make a 25,000 note into a 25 note.

Peace

Doc31

THANK YOU.

[pourit]

NO !!!!!

[Fummins]

Absolutely possible.

[ReturnToGod]

WILL WE SEE A LOP...YES OR NO DOE'S ANYBODY REALLY KNOW?

No one knows but I think not.

[marknet73]

I don't think so. It would hold them back a lot more than it would help them. Investors could buy up their country for pennies. But anything is possible and a lop then RV of say 3 to 1 isn't out of the question in my book. But I think an RV of under a dollar and then get the big bills out is how it's gonna go down.

[CITADEL04]

Thats what a redenomination is......it happens.....other notes get dropped face value as well.......

We are talking about units in currency correct, one 25000 dinar note is = to twenty-five thousand 1 dinar notes. The only way they can change the value of any of thier currency is to change to value of one unit. If they say that a 25000 dinar note is only worth 25 dinars now then they have devalued all there currency by a 1000%, and if they do that then they will not be able to afford to import anything.

[Blue-Duck]

Here we go again, so let these two articles do the talking and answer the question!

http://www.iraq-businessnews.com/2010/09/25/redenomination-an-unlikely-priority-for-the-cbi/

http://www.iraq-businessnews.com/2010/08/24/zeros-will-not-be-removed-from-iraqi-currency/

[Froto]

The key to me is that they have repeatedly said they plan to "raise the value of the dinar against the dollar." You can't do that with a LOP.

Actually that is exactly what a LOP does. The dinar is worth 1000 times more, you just have 1000 times less of them.

[pourit]

AFTER 10,000 POSTS ABOUT IT NOT HAPPENING...I CAN'T BELIEVE YOU ARE ACTUALLY ASKING.............POURITFORWARD

[keepmwlknfny]

We are talking about units in currency correct, one 25000 dinar note is = to twenty-five thousand 1 dinar notes. The only way they can change the value of any of thier currency is to change to value of one unit. If they say that a 25000 dinar note is only worth 25 dinars now then they have devalued all there currency by a 1000%, and if they do that then they will not be able to afford to import anything.

When you redenominate and reduce the money supply, you are able to raise the value of the currency because there is less out there.....you should check the history of redenominations and you will see that when countries redenominate, the raise the value at the same time.....less in circulation means that it can be worth more because its not in abundance......kind of like supply and demand of goods.....

When you redenominate and reduce the money supply, you are able to raise the value of the currency because there is less out there.....you should check the history of redenominations and you will see that when countries redenominate, the raise the value at the same time.....less in circulation means that it can be worth more because its not in abundance......kind of like supply and demand of goods.....

Or the value stays the same but it has more purchasing power.....its a "neutral" change in some cases.......which is exactly how they describe it alot......

[Legolas]

I think it's pretty clear by now that NOBODY really knows what they are going to do in terms of revaluation. The only thing we know with certainty is that they intend to remove the "3 zero" bills from circulation. What everyone seems to miss all the time is that one of the primary reasons for this action is to reduce the "complexity" of their monetary system. The simple process of counting money is made incredibly complicated by the presence of those 3 zeros. "People" are incapable of counting their money in daily business transactions, and most calculators are incapable of doing calculations involving numbers in the "millions" which result from every transaction involving more than "40" 25k Dinar notes. If you think for a minute how difficult it currently is to count any transaction involving more than $1,000 USD, it's easy to see the importance of removing the three zero bills. Imagine how difficult the job of bank tellers is. What they do with the value of the individual Dinar after removing the large bills from circulation is anybody's guess. All I can tell you for sure is never believe the rumors.

Edited December 18, 2010 by Legolas

[marknet73]

Actually that is exactly what a LOP does. The dinar is worth 1000 times more, you just have 1000 times less of them.

seems to me like a lop is sort of like a reverse split - like what happened to a penny stock i was in a few years ago. and the outcome was not good. the dinar would be worth 1000 times more in a lop but i don't see how that would give their country any additional purchasing power on imports or boost their economy. iraq really seems to be getting their *@ together lately so i'm thinking modest RV (under a buck) and then get the big bills out. let's see what happens guys.