coldwarvet

I agree with easy's comments. IMO, they still have an eye on the amount of IQD that remains in circulation, especially that in the hands of speculators/investors (AKA, us). It's entirely possible that they'll do another round of incremental increase, perhaps even as high as 1000:1, in hopes that the speculators/investors (AKA, us) will throw in the towel and cash out. Given the relative ease with which they could implement an RD at any time, and haven't, I think we are watching them play a waiting game with us. The good news for us is they're running out of time. WIth inflation on the rise, and their promises for a powerful IQD looking increasingly empty in the eyes of their own people, the pressure is on for them to do something more substantive, and soon. GO RV!

I agree. Ali has said that all along. This could be a good sign that the end of this ride is near. Hope so!

This is big news! Since the Parliament DOES have the approval authority for changes at the CBI, having a key Parliamentary committee advise against the CBI's plan for deleting the zeroes means a lesser chance of a straight RD, IMO. Of course, tomorrow we'll see another article saying someone else in Parliament advises FOR deleting the zeroes. The waiting continues . . .

Nicely done, easy. A very insightful post!

The one thing I keep going back to is that they could implement/could have implemented a redenomination (AKA LOP) AT ANY TIME! It wouldn't cost anything but a series of clear public announcements. IMO this hoopla about having to educate the people before the change is nothing but subterfuge. I think they will try to drag this out as long as they can, and create as negative a climate as they can regarding what their real intentions are, hoping that most of us will throw up our hands in frustration and unload the currency. The very fact that they refer to "loping" (sic) in one of the recent articles is a clear indication that they are aware of, and concerned about, how much of their currency we hold. They want us out of the way so they can do what they really want to do. The only thing that may/will force their hand are the existing economic conditions in Iraq, and/or some behind-the-scenes pressure from the Powers-That-Be. Otherwise, this disinformation campaign could continue for a while. Anybody wanna bet that they will announce a delay in September?

Gee, hmmm, I think I know what might help!!!

Double R, I agree with you, if that's where it stops. More and more, though, I have to agree with Adam that there will be a stair step from a low value, maybe around $.10, up to about 1:1. The currently reported CBI reserves could not support a 1:1 RV, that's one point I agree with the Lopsters on. However, if the recently reported "hidden" reserves of $800+ billion are indeed factual, then an inital RV somewhere close to $.50 is feasible. The good news is that if it RVs low, those of us who have substantial holdings in the IQD can sell ours and purchase some of the newly valued currency, starting a currency ladder that can make us some significant $ as it moves up to 1:1. Something to think about. GO RV!

How many times do they need to study this? They know what they need to do, they just don't have the b***s to do it. RV ALREADY!

Before we go too far off the deep end about the coming crash of the dollar, I suggest we all watch this program; I just did. According to the Discovery web site, it'll be on again this Sunday at 9 EST. Here are some clips from the Discovery web site: http://curiosity.discovery.com/question/whats-america-worth-videos For those who want the Cliff Notes version, host Donald Trump computes the net worth of the USA (minus the $15 trillion debt) to be a staggering $280 trillion. If you want to know why, watch the program. It's a very encouraging look at how valuable our country truly is, and how strong.

Folks, let's get real here. It is spot on to state that we are only being told what they want us to hear. After the worldwide debacle of 2008, does anyone truly believe anymore that the playing field is level, that the financial system is transparent, or (most important) that they can't change all the rules at the drop of a hat? Of course they can! The powers-that-be do whatever the heck they please, and then put up window dressing to make it look legit. The endless talk about balance sheets, math that doesn't add up, financial reserves versus oil in the ground, etc. is pretty pointless IMO. I'm in this investment because I see not only what we're being told, but because I'm inferring what we're NOT being told. And it's the latter that will make the biggest difference in the long run. GO RV!

You can get a rough idea of Iraq's oil reserves from the numbers the OP quoted: "$200 trillion value of world oil and gas reserves" times "The rest of the MENA region has the next largest share of global hydrocarbon reserves (23 percent), particularly in Iraq and Iran" equals $46 trillion as the value in the MENA region. Somehwere in that total is the value of Iraq's oil reserves.

Maybe the nonsensical nature of the article is deliberate. When you can't convince them with the facts, baffle them with bovine excrement.

Thanks for the post randalln. Much appreciated. Like most of us, I truly hope your contact is right. However, I think we're smoking rope if we think that there (see, I spelled it right! ) WON'T be a cash-in window. Additionally, IMO it will be a narrow one. Shabibi and his minions haven't spent all the time and effort they have soaking up the in-country bills for nothing. They also obviously hoped that all the negative press, up to and including the silly article that misspelled lopping, would cause most of us to dump our currency. Since that hasn't happened, they're (spelled right again! ) going to have to go ahead with an RV of some sort. We've read ad nauseam about the pluses and minuses of a $.10 RV versus a $1 RV, so I won't rehash that here. IMO the key is the level of education (or lack thereof!) of the average Iraqi that will drive this train. Given the way the Iraqi economy apparently operates, I can't see the CBI coming out with a $.01 or $.10 RV; it would create chaos in the Iraqi currency exchange markets, to say nothing of anger on the street. Given Shabibi's prior public pronouncements, I think they'll have to come out with at least a 1:1 RV to make it work. But, we'll see, won't we? Finally, I think the predictions of the dollar's iminent demise are way too premature. If we're going to transition to an asset based financial system, don't you think that ALL of a country's assets should and would be included? Other posters have already talked about the GPS satellite network, the telecommunications infrastructure, and the Internet as examples. What about the interstate highway system, the urban infrastructure, the arable farmland, the space centers at Cape Canveral, Vandenberg AFB, and Wallops Island, the shale oil deposits in the northern US; the list goes on? Simple because it isn't oil, gas or a factory doesn't mean it's worth nothing. Yes, we need to produce more for ourselves, but let's not shortchange the amazing assets we DO have in the good old US of A. Bottom line: the death of the dollar is NOT a done deal. So let's all take a deep breath and relax a bit, shall we? GO RV!

Let's be clear: all that an RD would do is allow the "guys with the green eyeshades" (i.e., the economists and accountants) to keep the books a little easier. Even the LOPsters agree it is a value neutral event. And I agree with Nelg that the GOI/CBI would be hard pressed to de-dollarize the Iraqi economy with either an RD or a low value (i.e., around $0.10 USD) RV. The Iraqi "man on the street" wouldn't go for it. IMO, the ONLY solution they have right now is an RV at or above 1:1. My call is 1 IQD:1.17 USD, to take account of the (very important) Arab pride factor. Let's quit screwing around and RV already!

How reputable is the source whom the article quoted? Let's not jump to conclusions just yet. But I agree; too many chiefs, as in EVERYONE wants to run things, NO ONE wnats to take orders, especially from someone in another tribe! These guys might as well be their ancient ancestors, tossing rocks at each other across a stream to see who gets the water rights. So much for advanced society in the ME.

IMO, they will keep talking about "deletion of the zeros" until the bitter end. They are now in a box that is slowly shrinking. Had no one found out about the IQD except the Elite, the RV would have already happened and we would not be having this discussion right now, since we wouldn't have know about it until after the fact. But since the word DID get out, they will continue to talk about "deletion of the zeros" as their only way of trying to dissuade people like us from looking at this as a true investment, and hoping we will sell out. Unfortunately for them, they're now faced with a situation where they will have to de-dollarize the economy very soon, no matter how many of the large bills they have or have not collected. So IMO it's simply a matter of the CBI deciding what the rate and date is, not whether they will RV. That's probably the only way the have at this point of getting the large bills off the street. On the other hand, the CBI's reserves may dictate that the RV will come in at a low rate, just like Adama Montana has predicted. In any event, it's going to get very interesting the next few days, I think! GO RV!

[Adam Montana] but I think the l0psters are going to be eating crow soon Read more: 'Nuff said!

Shabibi has stated publicly, on more than one occasion, that completion of the GOI is a prerequisite for the value of the currency to change. He would majorly lose face (a big no-no in the ME) if he were to do nothing after the GOI was complete. Assuming this is true, it is big news. :-)

Ten cents = 1 IQD would make sense if the CBI had not already spent all that time and effort to soak up the large denomination bills in country in exchange for USD. They obviously did that for a reason. LIke most of us, I think they recognize that the average Iraqi doesn't have the level of education to handle a fractional RV. Likewise, it would take a concerted effort on the part of the CBI to be able to convince the Iraqis that an RD wouldn't hurt them. While an RD may technically be a balance sheeet-neutral move, the psychological impact, on both the Iraqi people and Iraq's investors, is likely what is concerning the Parliament and has been holding the CBI back as well. Otherwise, they would have RD'd long ago. At the same time, Arab pride dictates that the new value of the IQD (whatever that is) will be greater than the USD. Despite the multiple times we've seen "the appearance of Mohammed Saleh" to talk about the raising of the zeroes, I'm beginning to think that (for sure) the Iraqi Parliament and (just maybe) the CBI now understand that the ony way they can execute this is to RV at around 1.17 USD per IQD, soak up the remaining large bills (including ours), and then start moving the value of the IQD upward from there. I also don't think those of us who hold large bills will be allowed to do so indefinitely. There WILL be a definite cash-in period, after which the value of the large bills goes to zero. Bottom line: assuming the OP is correct, we'll see an RV of about $1.17 USD. Fingers crossed. GO RV!

Thanks, sonny1. I just had a similar article read to me over lunch by a fellow IQD investor. Great to see additional validation by a credible source (you).

Thanks, Thug AND Kap! What a great discussion and analysis. Some new info too (at least for me!) re who designed the plan and when.

So I read that to mean they feel confident that they have a handle on controlling who outside the country can get their currency, and therefore they don't have a problem with smuggling.

I've said it before and I'll say it again: they are NOT going to be truthful and tell us exactly what they will do. It would be foolish in the extreme for them to do so, whether it's an RV OR an RD. We'll all just have to wait and see.

Think for a moment about the HUGE psychological hurdle the CBI is asking the average, poorly educated Iraqi to overcome with an RD. Think about what you would do if you walked into a bank here in the good old US of A with a $1000 bill, and the bank teller gave you a $1 bill in return. How would that feel? Regardless of the education initiatives, that's going to be a significant obstacle to for Iraq to overcome. Perhaps that's why the Iraqi Parliament is resisting this change; they are more in touch with the Iraqi man in the street than the college-educated economists like Saleh and Shabibi are. So they see clearly how that man in the street will react. This is one more important difference between Iraq and the other countries that have RD'd. You can carp all you want about Turkey, but I'll bet you that the Turks, on average, are far more educated than the Iraqis, and therefore they didn't have to confront this problem as much. So once again, we are confronted with the reality that this isn't just a balance sheet exercise. It remains to be seen how it will play out.

Yes.