20MillionDinar

I actually have an entire detailed business plan to launch a Dinar dealing business. I actually had it ready about 2 years ago but never went ahead with it, looking back, I think it would have been a good idea! In fact, because the overnight RV will never happen as expected, I think it would still be a good idea. Only problem now is, a re-denomination is close (in my opinion) so I will probably never go ahead with this business venture, plus, I don't need the additional stress anyways at this time. Oh well, coulda - shoulda - woulda - didn't...

This tells us one of two things. Either they are lying or they aren't. However, if they are telling the truth then there will be NO RV or RD. Here's why: The smallest currency note in Iraq right now is 50 Dinars. If they RV at a 1:1 rate their smallest currency is now worth $50. There is no way they can operate with such high valued currency right? Let's say they RV to $0.10 (ten cents) then the smallest currency (50 Dinars) is now worth $5. Still too big for day to day transactions... **One thing I know for certain is whether they RV or RD they will need a new currency. Until we see the new currency, all bets are off of ANYTHING to happen, period. Thanks for sharing this with us Katie.

Hi Nadita, You're welcome. Just a heads up, that particular recommendation was not mine. It was Jack Crooks' recommendation from Money & markets. I really don't have any knowledge about that particular fund. Sorry!

No not at all. You have presented your questions and opinions in a respectful manner, I hope that I did the same. You need to go over the numbers again though. 1000 Dinars to $1 USD would make the Dinar a little stronger, but not much. The whole reason for this small increase in the value would be for ease of exchange and it would put the Dinar at 1:1 parity with the USD after a re-denomination. See, right now, the Dinar is at 1166:1 meaning the exchange rate is .00086. If they re-denominate (drop the 000's) then that would make the new exchange rate 0.86 Dinars to $1 USD. BUT, if they raise the value to 1000:1 prior to re-denomination. Then after they re-denominate it would make the new dinar exchange rate at exactly 1:1 with the US dollar. This means they would have successfully reduced their money supply like they have been stating they want to do. AND, the Dinar would now be equal to the USD just like they have been saying they want to do. On top of that, they would then be in a position to grow and develop as an emerging economy. Hope that makes sense. One fact remains though, the PROCESS in building a house remains the same. I understand the process because many many countries have had their currencies in a hyper-inflated state, performed a re-denomination, and have actually moved ahead in the world in terms of economic growth, GDP, etc... You're right, I'm not "RVing the Dinar" but either is the CBI. They are re-denominating the Dinar as that is the blueprint for this type of plan. I guess we will just have to agree to disagree. That's fine. Best of luck to you JayLee.

Silver will more than likely drop along with Gold. **For people holding Gold & Silver. Watch the price of Gold during the next month or so. If $1,520 breaks then gold will fall and so will Silver, Platinum, Palladium, and Rhodium. Over the last few months, since the leading economies put sanctions in place against Iranian oil, Saudi Arabia has been picking up the slack and supplying more oil contributing to a 25 percent plunge in oil prices since May 1. They are actually exceeding their "OPEC" quota. Supply (new technologies to extract oil, improvements in offshore drilling, new reserves, etc) & demand (e.g inventories, OPEC quotas, etc) are key in oil. Geopolitical risk but also many other risk externalities (political, natural disasters , nationalizations, etc). So right now, with Saudi Arabia supplying more and more Oil and the global slowdown affecting the actual demand for oil is telling me Oil will be heading lower. Those are the fundamental reasons. Technical reasons are the major uptrend that has already broken to the downside. What was "support" for Oil is now acting as "resistance." So I see fundamental and technical reasons for Oil to drop down to the $50-$60 level. **The reason OPEC will be OK with this is because they will be well compensated come next year. Oil will probably hit record highs next year. Low Oil prices will not be long term, that I can guarantee! http://www.concordmonitor.com/article/336018/opec-agrees-to-output-of-30-million-barrels http://online.wsj.com/article/SB10001424052702303734204577466441553193660.html Don't get me wrong, the USD is in pretty bad shape in the LONG TERM assuming some major changes don't take place. But as of 2012, with the global slow down, money flows to the USD. Take a look at the following article. You will see how money flows in times of crisis. Why it's time for currency traders to batten down the hatches! by Jack Crooks Saturday, July 7, 2012 at 7:30am Here are two new pieces of evidence that I believe increase the probability this view is correct ...A couple of weeks ago I shared my view on why the emerging market currencies were poised to feel the pain of slowdown in global money flow. I based it on the premise that money flows outward to emerging markets (aka periphery) from the developed world capital markets (aka center). Furthermore, Purchasing Managers Index (PMI) numbers show an increasing number of economies across the world are contracting.First, there is a major disconnect between the amount of money being created to support the global banking system and its ability to trigger real growth. Take Australia as an example. From May to June, its money supply increased 4.8 percent, yet the economy contracted. The story was similar for others as you can see in the chart below. Click the table for a larger view. Second, because EM economies are more highly leveraged to global growth and low volatility, money flow to these economies could indeed decline going forward, which would put pressure on their currencies. The latest evidence is in, and it's not pretty for emerging market currencies. If it is "déjà vu all over again," as Yogi would say, it is time for currency traders to batten down the hatches. Focusing on the grey bars in the next chart, notice how the decline in money flow that started back in early 2007 foreshadowed the last crisis. Now notice the precipitous decline in global money flow to EMs that began in March 2010. Hmmm ... Click the chart for a larger view. Next, take a look at the chart below, considering the real money decline dates that took place in EMs in 2007 to March 2008 and what is happening now. The chart has three moving parts: The Dow Jones Industrial Average (DJIA); the Emerging Market Stock Index (EM Stk Index); and the U.S. dollar index (US$ Index). As stock markets peaked back in late 2007, early 2008, then turned down, money began to flow in earnest to the US dollar and out of emerging markets evidence by the bottom in the dollar in March 2008 corresponding to a bottom in EM money flow during the same quarter in 2008. Now it appears we may be seeing a bit of re-play. Stock markets may have peaked last year as money drained from the EM world. The U.S. dollar appears to have put in a double-bottom at the same time markets peaked last year. The chart analysis validates the view money is indeed moving back to the center. But this time, it also seems the dollar is rallying from a higher base, confirming my longer term dollar bullish view. Now many believe there is no need to worry about emerging markets because China will not let things get "out of control." There is an expectation that China will step in soon with a major stimulus program that will once again buoy stocks and commodities. The view makes sense. But there is, however, evidence to the contrary ... China cut interest rates on Thursday along with the European Central Bank. There was a collective yawn by the markets, and commodities moved lower on the news. This was price action that definitely was not in line with the news. According to Bloomberg Businessweek, "China plans to retain a cap on loans at 75 percent of deposits and may add further requirements that constrain credit growth under draft rules, a senior official at the banking regulator said." This suggests to me that China is still reeling from inflation and asset bubbles created inside the country from the last round of major stimulus it issued during the credit crunch and realizes that money stimulus may not be the answer this time. China's 4 trillion yuan stimulus package unveiled in 2008 led to an unprecedented 17.5 trillion yuan of loans in the following two years, pushing up property prices and inflation while raising concerns over banks' asset quality, according to the state-run Xinhua News Agency. So if China doesn't come to the rescue, this trend in money flow back to the center is likely to intensify. And precisely because it may soon appear this trend could be particularly dangerous to China's still bubbly markets, it could hit the Asian-block EM currencies especially hard. So if you think my EM money flow story makes sense, one way to play it from a currency perspective is by selling short Barclays Global Emerging Market Strategy (GEMS) Asia 8 Index. This fund seeks to replicate the movement of eight Asian market currencies relative to the U.S. dollar. Best wishes, Jack

I will respectfully disagree with most of what you just said here JayLee. For most people it is pure speculation, for those who understand currencies and economics it is calculated math. Would you tell a General Contractor that he is speculating on how to build a house from the ground up just because you don't know the correct process? Due to the fact that this particular post is "Pinned" I am going to add the following link. It is actually my calculated prediction as to what will happen this year with the US equities markets, Gold, Oil, and the USD. Six months from now, when my targets have been reached, is it going to be considered pure speculation on my part? Or will some acknowledge the fact that this is actually not pure speculation like some would think? Folks, economics is not based off of wizadry, it is based off of math. Anyways, here is my 2012 forecast: http://dinarvets.com/forums/index.php?/topic/122869-my-predictions/ (maybe in six months from now I will be considered to be "in the know..." maybe not) **I am not telling people to sell, just stating facts based off of my knowledge and experience in the currency markets**

OK, I guess since you have "secret" intel that can't be shared with others then that is fine for you. But like I said, I can't go off of rumors like this, that would be bad business practice according to my standards. I'm pretty impressed that you know some of the very select few people who are working on the Iraqi Dinar RV plan! Congratulations! Could you at least tell us WHEN they plan on pulling the "RV Trigger" ? If I knew when I would probably sell off everything I own in order to buy as much IQD as possible. Looking for some insight, thanks Katie!

We also hear about how many Iraqi's are poor. So I would assume that the people who have the money to buy a $15,000 car would probably have a bank account as well. By re-denominating this allows them more room for growth and expansion in every way. When it comes to their money supply, refer back to expansionary policy in my first post. This is how a country will grow and develop in a controlled manner. The value will probably change as their country grows, but this will occur after they re-denominate. Keep in mind, Iraq is an exporting nation and exporting nations like lower valued currencies. I won't get into this but feel free to do your own research. I'm going to go out on a limb here and say that they will change their value prior to the re-denomination and it will more than likely take the value from 1166:1 down to 1000:1. This way, when they re-denominate, their currency will be on par with the USD. They will now be in a position to grow and develop their economy the traditional way, not magically send their country into an even more hyper-inflated state overnight which in turn would crash their currency instantly.

Hey no problem Cris!

Your numbers are a little off. Real quick before we get to the numbers, why would they need a wheel barrow for large purchases? A 25,000 note is worth about $23 right? When was the last time you needed a wheel barrow full of $20 Bills in order to purchase something from the store? I never have? Unless they were buying a house with cash... Remember, they do have banks in Iraq with SWIFT capabilities. If they re-denominate the overall value remains the same, just the number of notes will change. This has been discussed many many times. 30 Trillion Notes is currently worth 25.6 Billion. After a re-denomination there would be 30 Billion Notes worth 25.6 Billion. I won't get into details as to why every other country in history whose CURRENCY is in a hyper-inflated state (extra 000's) goes through a re-denomination. *The number of notes in circulation will be reduced but the overall value remains the same. My numbers are EXACTLY SPOT ON with the CBI's financials. The people "in the know" who say there is around 10 trillion are not "in the know." If they were, we would have seen the long awaited RV that has been called by them over and over again. Just refer back to the original post on this thread. Kap is talking about the Dinar being a Reserve Currency. There is no way this can happen at this point in time. And there is no way that can happen in the near future. Countries take time to develop and grow. I wish a country could magically go from having a $100 Billion GDP to $15 Trillion GDP overnight, but that just isn't how the world works. So it all boils down to who you want to believe. The CBI or the random people on different dinar forums who hide behind fictitious names that are "in the know." The choice is always up to us! In my line of work, I can't believe people who can't back up their claims with facts. I would go broke listening to people like Kap, Bond Lady, Okie, etc... Although some of their intentions might be good by trying to keep people "positive", being positive does not make you money. I noticed that when I actually started making good money earlier this year I was able to open my mind a little more and not be so biased towards the "imminent overnight RV" that just HAS to occur. People who are hanging onto the RV in hopes of becoming wealthy (with really no other options) are extremely biased and don't want to hear the facts. They would rather listen to the people that are "in the know" when it comes to things like total M1, M2, and facts about how and why re-denominations work. I'm not trying to scare people, just stating the facts. It's up to you who you choose to believe.

Another interesting note: The U.S. Dollar Index (USDX) consists of six foreign currencies. They are the: Euro (EUR) Yen (JPY) Pound (GBP) Canadian dollar (CAD) Krona (SEK) Franc (CHF) 6 different currencies make up the Dollar Index but there are a total of 21 countries due to the fact that there are 16 members of the European Union. USDX Components: Because not every country is the same size, it's only fair that each is given appropriate weights when calculating the U.S. dollar index. Check out the current weights: With its 16 countries, euros make up a big chunk of the U.S. Dollar Index. The next highest is the Japanese yen, which would make sense since Japan has one of the biggest economy in the world. The other four make up less than 30 percent of the USDX. Here's something interesting: When the euro falls, which way does the U.S Dollar Index move? UP! The euro makes up such a huge portion of the U.S. Dollar Index, we might as well call this index the "Anti-Euro Index".

As you probably already know the Eurozone is in BIG trouble and there is no immediate "fix" for their problems. China has also been experiencing major slow downs in their markets which is why they have actually cut rates twice in the pats few months and have gone ahead with their stimulus plans. The Royal Bank of Australia has cut interest rates from 4% down to 3.75% on April 30th. They also cut their rates again from 3.75% down to 3.5% in June. When China's manufacturing and overall growth slows down, Australia slows down because Australia is very reliant on exports of Gold and other minerals which are used in Manufacturing. Canada is very reliant on their Oil and Gold exports so when prices of Oil & Gold go down, so does their exports and overall production. The European Central Bank also cut their rates from 1.00% down to .75% which is now the lowest cash interest rate since the inception of the Euro. Not good for them... Britain's economy is contracting and has been (and will be) doing more quantitative easing in the near future to try and "stimulate" their economy. There is much more to this, but this is the simplified version. Basically, we are experiencing a contraction / slow down on a global scale and when this happens it is known as "risk off." This means that money flows from "risk on" investments such as the equity markets and emerging economies back to the safe haven currencies - the US Dollar and the Japanese Yen. The major indices move (more or less) in correlation with currencies such as the Australian Dollar, New Zealand Dollar, Euro, Great British Pound, as well as a few others. **The Australian Dollar will do the best out of the other currencies as it is has the highest interest rate and is well liked for the "carry trade" because of the interest it pays. But it will still move down with the others... If you pull up some historical charts from 2008 you will find what I'm saying is true. When major problems occur around the world, money flows to the USD and the JPY as they are the safest currencies, regardless of what others say about the imminent crash of the USD. That is definitely not the case! There is much much more to it then what I stated above, BUT, the overall sentiment of the markets are RISK OFF and will remain this way until the end of 2012. Core Personal Consumption Expenditure is Ben Bernanke's favorite fundamental tool to gauge whether to do QE. If it stays above 2%, QE bugs can kiss QE goodbye. We won't see any additional QE until after November's elections, if ever again at all... LTRO's yes, but no QE.

No problem.

S&P 500: 800 - 1000 (hangman chart pattern forming) DOW Jones: 8000 - 10000 Oil: $50 - $60 per barrel Gold: $1,200 - $1,300 **2012 Cash will be KING, namely the US Dollar** It's time to either sell off your stock holdings OR if you really want to make money this year you can short the DOW, S&P 500, Oil, Gold, or other major currency pairs as the USD is going up up and away. Key areas of resistance have been broken on the Dollar Index. S&P 500 hangman chart pattern forming, this is a very reliable chart pattern on the larger time frames. Key support levels have been broken by Oil. Once Gold breaks $1,520 it will also fall into the abyss. Everything in confluence is confirming my predictions which are stated above. Consider this a fair warning to all!

Hey Tav, Just curious, how did you get "NO LOP" by the fact that they are selling Bonds in their day-to-day open market operations? It actually has nothing to do with whether or not a currency re-denominates or not. Please explain your point using facts. They actually don't sell US Treasury Bills (T-Bills) as that is part of the FEDS open market operations. Iraq has their own form of bond auctions. They have 3 month, 6 month, and 1 year maturity bonds / government debt securities. Read more here: http://www.cbi.iq/in...pid=MofAuctions http://www.cbi.iq/index.php?pid=CbiAuctions

GotSix, What are you talking about? When did I ever say I owned 20 Million Dinar yesterday? Please show me where I said that. I sold out the majority of my Dinar months ago. Also, who said that one has to sell Dinar in order to fund a brokerage account in order to do another form of investing / trading? Dinar was "Vegas" money bud. Multiple streams of income is the name of the game, sounds like you just want something to argue about, go start a fight somewhere else GotSix. I could take a screen shot of this week's trades but it won't prove anything. People who are jealous, envious, and simply love to hate on other people's success will just come up with some excuse like "it's photo shopped..." Or "that screen shot probably isn't yours..." On top of that, I don't need to prove anything to anybody here. How will that make me money? It won't! This site is not a popularity contest, it is a place where people can exchange information and ideas with each other. You want to start a fight go pound a few beers and head on over to the local pub. I won't waste any more time on you GotSix...

You don't have to buy into anything that I'm saying. You can buy into Kap and the other self proclaimed gurus if you wish. I actually don't even post much over here because people don't want to hear anything that I have to say anyways. I trade FOREX for a living, and I am pretty damn good at it. I made a little over $2k yesterday and today on my Platinum trade. I also made a little over $500 on my Oil trade yesterday. Not bad for half a weeks work. I'm not bragging, but somebody who doesn't understand how currencies and commodities work would not survive in my business. The FOREX will eat most people alive! You can refer back to my original post in the News Section which is still "Pinned" which explains how Monetary Policy works. It also goes into depth on how the currency auctions work. **The biggest problem is, Iraq is not using the currency auctions to "soak up" the IQD on the streets. Another problem is, they are not using "Contractionary monetary policies" by reducing the money supply, they are doing the opposite which is Expansionary monetary policy to increase the money supply. I did believe that they had many options in order to decrease the money supply and increase the value of their currency but they have not done any of them. I wonder why? Maybe it is because it is not in their best interest to do so at this time. However, one thing that I do know is that the more they print the more likely a re-denomination is. It has already reached a level where I find it hard to believe a straight up RV at even a penny is possible. I am entitled to my own opinion based off of my own facts and research just as you are entitled to yours. I will also repeat what I stated in my previous post, I did not know what I know now in regards to currencies, economics, etc... Every day I am less naieve, and I am thankful for that because it is allowing me the financial independence I have always been looking for. I am in control of how much money I create, not the government of Iraq! By the way, the name of the thread that I started in August of 2011 is: Open Market Operations aka "Currency Auctions"

GotSix, LOL. You're welcome! No I don't... I bought back in 2006 but at that time they were gradually increasing the value by about 3-5 dinars per day. It was pretty cool waking up watching the investment go in the right direction. From 2006-2008 I watched it go from 1450:1 all the way down to 1170:1 then it just stopped one day! As we all know, that is where it stopped for 3 years straight. After reviewing the CBI financials I realized that they were not decreasing the money supply, but in fact were expanding it. Which was always a possibility, just not what we all wanted them to do... But now it is obvious to see how they plan on going about growing their economy. The traditional way! Expansionary Monetary Policy will do the job. As the private sector, infrastructure, agriculture, and exports improve, so will their overall GDP and their way of life. I didn't know then what I know now but I don't regret getting involved. Another one of those learning experiences we all go through in life!

Here is the best answer I can think of for your question: By the way, for anybody who has seen this post I'm sorry. But I think it speaks for itself and there was no reason to "re-invent the wheel" in regards to this question. **Iraq M2 of 70 Trillion** I then compare the 70 trillion to a 1:1 RV which would equal 70 Trillion USD. M3 Money Supply for Selected Countries: When considering M3, the total money supply (of the world) exceeds US$50.1 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 66.2% of the total. The following graph shows a cross-country comparison for M3. http://news.goldseek.../1185894180.php What I am wondering is how does Iraq, a war torn country, come out of the gate with a newly revalued currency which now equals more than every other country combined? Iraq's currency would now be worth twice of that of the USA, the Eurozone, as well as Japan combined! Even if Iraq has HALF of the stated money supply, it would make Iraq equal to the Eurozone, the USA, and Japan combined. This is where I find it hard to believe that an overnight 1:1 RV is possible. Even $.10 is pushing it... However, I do feel that a gradual increase in the IQD is possible! This way they could slowly reduce the amount in circulation while increasing the value of each existing currency unit in circulation. Increase oil exports, build up infrastructure, promote growth in the private sector, which will all help to build their countries' overall GDP. This is how a currency gains value in the real world. If Iraq is worth 70 Billion but has 30 Trillion (M1) Dinar in circulation. They could keep that same value ($70 Billion) but make each existing currency unit (IQD) worth more by reducing the overall amount. However, the decrease in currency in circulation needs to be gradual, as well as the increase in the value of the IQD. The reason it needs to be gradual / controlled is so that they maintain inflation. Keeping inflation under control has been one of their biggest priorities during the past 9 years or so, I don't think they want to destroy everything they've worked for just to have a high valued currency overnight. Actually, keeping inflation under control is EVERY CENTRAL BANK'S main priority! Something to think about... Japan's total M2 money supply is equal to 6 Trillion USD Iraq's total M2 Money supply is 70 Trillion IQD equal to 70 Billion USD A $0.10 straight up RV of the IQD would make Iraq's total currency more valuable than Japan! Overnight!!!!! *How can this be justified when Iraq has a GDP of a little more than $100 Billion and Japan has a current GDP of roughly $6 Trillion? This is just absurd to think that a country could do something like this overnight!

First of all, Debts (especially government debts) are very rarely, if ever, payed off in full. Minimum payments are made, kind of like some people and their credit cards, car payments, house payments, etc... Dinar Reserve Currency: This is a little far fetched to say the least. There is certain criteria that must be met. Here are just a few items: Low Inflation & Stable Economy (Iraq has been getting their inflation under control but definitely does not have a "stable" economy on a global scale) A LARGE economy (Iraq's economy is TINY coming in at a little over $100 Billion USD, in fact, that is a joke on a global scale) Financial depth, i.e., large market capitalizaton (the total value of securities issued within its borders), substantial availability of securities for trade on the securities markets, and a non-politicized banking system (Nowhere Close!) A good regulatory framework and strong rule of law (they haven't even seated their entire government after over 2 years...) Network externalities, "which include various international uses [for the country's currency], for example, for pricing, invoicing, or transactions outside the country" (95% exports, not much demand for IQD on an international level) Also, keep in mind that a reserve currency, or anchor currency, is a currency that is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, and commodities such as Oil, Gold, etc... What is ironic about this is that Iraq is using the USD, EUR, and GBP as THEIR reserves. Not the other way around... We have only heard RUMORS about Governments holding massive amounts of IQD, there is no proof that they are holding IQD. But one thing is for sure, if we are, and they RV their currency, it would look very bad as that would be considered war profiteering! What currency is Oil priced in? USD (Petrodollar) This is huge! Where are the main Gold & Commodity Exchanges? Well, we have the CME, NYMEX, LME, you know what, I'm not going to list them all. Here is a list: http://www.indexmund...round-the-world But the bottom line is, Iraq doesn't have an international commodity exchange. US, Canada, Brazil, London, China, Japan, Australia all have major commodity exchanges. The biggest being US and London. *China actually launched the Shanghai Gold Exchange in 2002. This was after a solid 3 decades of rapid growing and expansion throughout their entire country. Wonder why it took them 30 years to even get that far... Let's talk about their money supply real quick. Iraq has an M1 of roughly 30 Trillion and an M2 of about 70 Trillion or so. If they re-denominate that would take them down to about 30 Billion IQD in circulation. People wonder how can they survive off of only 30 Billion? Well first of all, they have been surviving just fine at this rate for the past 10 years. Actually, they have been increasing their money supply every year so they were operating with less than that for most of the past decade. But it's actually pretty simple, they will operate and grow the same way other countries operate. You print more money as your economy grows expanding the money supply, but in a controlled manner. This is actually known as Expansionary Monetary Policy. I'm going to copy/paste some important information regarding Central Banks below. I actually posted this yesterday but it was in a "LOP" discussion so most probably didn't get a chance to review the info. This is important so please try and soak in as much as possible. Read over it again if you need to! Any Central Bank's main goal is to keep inflation in check, even if they don't come out and directly say it most CB's try to keep inflation at or around 2%. To do this, they use the monetary tools at their disposal, contractionary and expansionary policy. In Iraq's case, they have been using more "expansionary" monetary policies by printing more and more Dinar. Ultimately the value of the IQD is up to the CBI, period. The biggest problem with a significant overnight RV is that it goes against everything a Central Bank stands for as a CB's main goal is to keep inflation in check, they can't do this if 100,000% increases or decreases hit their currency instantaneous! It will crash their currency! Central banks and monetary policy go hand-in-hand, so you can't talk about one without talking about the other. While some of these mandates and goals are shared by the different central banks. Central banks have their own unique set of goals brought on by their distinctive economies. Ultimately, monetary policy boils down to promoting and maintaining price stability and economic growth. To achieve their goals, central banks use monetary policy mainly to control the following: *the interest rates tied to the cost of money, *the rise in inflation, *the money supply, *reserve requirements over banks, *discount window lending to commercial banks Types of Monetary Policy: Monetary policy can be referred to in a couple different ways. Contractionary or restrictive monetary policy takes place if it reduces the size of the money supply. It can also occur with the raising of interest rates. The idea here is to slow economic growth with the high interest rates. Borrowing money becomes harder and more expensive, which reduces spending and investment by both consumers and businesses. Expansionary monetary policy, on the other hand, expands or increases the money supply, or decreases the interest rate. The cost of borrowing money goes down in hopes that spending and investment will go up. Accommodative monetary policy aims to create economic growth by lowering the interest rate, whereas tight monetary policy is set to reduce inflation or restrain economic growth by raising interest rates. Finally, neutral monetary policy intends to neither create growth nor fight inflation. The important thing to remember about inflation is that central banks usually have an inflation target in mind, say 2%. They might not come out and say it specifically, but their monetary policies all operate and focus on reaching this comfort zone. They know that some inflation is a good thing, but out-of-control inflation can remove the confidence people have in their economy, their job, and ultimately, their money. By having target inflation levels, central banks help market participants better understand how they (the central bankers) will deal with the current economic landscape. Let's take a look at an example. Back in January of 2010, inflation in the U.K. shot up to 3.5% from 2.9% in just one month. With a target inflation rate of 2%, the new 3.5% rate was well above the Bank of England's comfort zone. Mervyn King, the governor of the BOE, followed up the report by reassuring people that temporary factors caused the sudden jump, and that the current inflation rate would fall in the near term with minimal action from the BOE. Whether or not his statements turned out to be true is not the point here. We just want to show that the market is in a better place when it knows why the central bank does or doesn't do something in relation to its target interest rate. Simply put, traders like stability. Central banks like stability. Economies like stability. Knowing that inflation targets exist will help a trader to understand why a central bank does what it does. A currency's interest rate is probably the biggest factor in determining the perceived value of a currency. So knowing how a country's central bank sets its monetary policy, such as interest rate decisions, is a crucial thing to wrap your head around. One of the biggest influences on a central bank's interest rate decision is price stability, or "inflation". Inflation is a steady increase in the prices of goods and services. Inflation is the reason why your parents or your parents' parents paid a nickel for a soda pop in the 1920's, but now people pay twenty times more for the same product. It's generally accepted that moderate inflation comes with economic growth. *However, too much inflation can harm an economy and that's why central banks are always keeping a watchful eye on inflation-related economic indicators, such as the CPI and PCE. On to the next point. Kap says: the Dinar will not be bought or sold overseas. That will be done by the CBI. The CBI will control the monetary policy. The dinar held in international reserves will stay there for a “very long time.” Clearly telling us, once again that banks/feds hold this dinar will use it simply as a reserve currency. A currency held for a “long time.” How does a Reserve Currency not get bought and sold overseas? Of course the CBI will control the monetary policy, that is what a Central Bank does, in every country, with no exception. Please refer to the above info if you are still not clear about that. I'm wondering who else does Kap think would control the monetary policy of a particular country? The "RV" will not accomplish giving the IQD Reserve Currency status. If all of a sudden 70 Billion M2 money supply turned into 70 Trillion overnight, it would instantly send that country into an Ultra Hyper-Inflated state, period! What is one of the main goal's of a Central Bank? Maintaining price stability and economic growth. How do you maintain price stability with a 100,000% overnight increase on everything in your country's economy? I'm not going to expand on the rest of what Kap says in the original article as I have already covered the main points above. Hope this helps at least one person realize that they shouldn't listen to anything and everything a self-proclaimed Dinar gurus says. Unless of course it is for entertainment purposes only. Bottom Line: If Iraq wishes to have their currency as a Reserve Currency there is A LOT of work that needs to be done. This kind of thing can't happen over night, hell, it can't happen in 20 years! I have listed some of the main criteria for a Reserve Currency towards the top of my post. Think hard about what a Reserve Currency needs and if Iraq fits that criteria or not. Unless you are banking on the collapse of our entire global financial system then it would be foolish to think that the IQD will be a Reserve Currency anytime soon. If YOU ARE banking on the collapse of our world's financial system, then best of luck to you. I would say forget about paper currency, go get some guns, ammo, food, water, and fuel. Also might want to learn a few survival skills!

Personal Warka Account: Anything over $10k needs to be declared to the IRS Corporate Account: Depending on how your corporation / trust / foundation is setup and which jurisdiction it is incorporated in will determine whether or not the Warka account needs to be declared to the IRS.

Nothing at all, except for the name.

Hi Gina, I don't think these guys are going out of their way trying to discredit Steve. Steve did a good job doing that himself. The real problem doesn't lie in people poking fun at Steve, the problem lies in Steve pumping out false information to get people to either follow him due to egotistical reasons, pay per click ads on his website, or through kick backs from dinar dealers. We all need to remember, some people who don't know any better, hang onto every word some of these gurus say and quite a few have gotten themselves into serious trouble! This is only my opinion, but I think it is good to expose the pumpers and liars. There is nothing anybody can do to change the outcome, so what is the need to be a guru and create a following? Like I said, it is due to either egotistical reasons or money.

Haha, nah, I think what I'm saying is mostly Propaganda. There is a hidden agenda behind what I'm saying here. Didn't mean to hi-jack this thread, but just wanted to share some tidbits with whoever wanted to listen. I give you props too Dinarck, fighting the good fight, trying to keep people grounded. You, DaveD, BigFrank, Keep, DoctorRobbins, MrFnHappy, RRSport, and anybody else I missed. It seems as though you guys get hit the hardest by negs and bashing by the Pro RVers, but it is silly because you are speaking the truth. Most of the time when I scroll through this forum I just shake my head...it is pretty sad to see what this "Iraqi Dinar RV" conspiracy has done to people's minds. Remember, you can lead a horse to water but can't force em to drink! Keep up the good work Dinarck.

DaveD, I don't want to come across as a know it all, just stating my opinions based off of my limited knowledge and experience. I could be wrong, and if I am, my account will pay for it! The FOREX, in my opinion, is the most complex economical bundle in the world.