I bought into this investment in Aug. of '05. I have been visiting this site for a year and 3 months. Something that I have never been able to wrap my head around (even though I very much hope and wish for) is how a currency can RV (6 years ago the people in my investment circle were referring to this as "pegging").
I get that Iraq is on top of an ocean of oil. What I don't get is why would the rest of the world be OK with one country's currency INSTANTLY becoming worth a thousand times what it was worth yesterday. Won't that in a sense devalue any other country's currency when comparing it to the dinar. If today, one DINAR is worth less than 1/10 of a U.S. penny and then tomorrow 1 DINAR becomes worth 1 DOLLAR, then didn't we just devalue the DOLLAR.
When I bought dinar initially, the guy who sold it to me said it would "peg" to the dollar as soon as the Iraq Constituion was finalized...Awesome...that happened not too long after I bought it and I'm still not living on my yacht...but thats ok because I didn't believe him anyway.... instead I thought the dinar would eventually regain its respectable value GRADUALLY by being traded on a world market (i didn't know this to be called the FOREX at the time).
I understand that if I posted something like this in the rumor section I would receive the second class citizen tag of "newbie"... I posted here because I am assuming this section has more intelligent feedback to offer... someone, please shed some light if you have the time
