Darin

We Dont Know The Future Of Iqd Policied... Many Bought Dinars With Great Confidence In Iraq By Entities Involved. PolicieS Can Easily Change, Cant Predict The Future.

Is this incerpt trying to make the claim or idea that the gas and crude will back their economy on a monetary basis?

The point being made is that a Penny value may exist with a Large M2! (The M2 that is being reference is 10 times that of Iraq) Granted we are comparing Apples & Oranges based upon the economy of Japan & their monetary policy compared to Iraq, but the point of the matter is as follows: At the given monetary policy, yes, a $0.01 R/V is nearly impossible. But nothing is set in stone and exchange regimes can change.

10 years for 30%? No, probably not.... But long-term, they may continue to see gains. Those who fall for the quick-rich fiasco will only find themselves disappointed (unless of course some unusual method is used and is successful). Taking the time and understanding that this may be a long-term speculation is no big deal for the more grounded person. They have moved the rate up at a decent pace in the past, when the rates fluctuated frequently. Obviously the stability is not working for them as the market rate runs away from the official rate. Time will tell the end result, and it'll be interesting to watch. We may or may not see some interesting moves over this coming summer.

With the JPY having a M2 of over 800 Trillioin, a M3 over 1 Quadrillion, and they seem to be fine operating off of a penny in comparison to the dollar. Recent news also sounds like they'll be continuing to print money as well, a form of QE.

Instantly? No... Can't say they are unable to crawl their way to it though.

You can't bring wages down.... The simple psychology of the way people work would not allow it. Imagine if you showed up to work tomorrow and the company sent out a newsletter or memo stating that everyone would have their wages reduce 5%. It would cause an outrage by many.... Some will remain thankful they still have a job, but others would maybe upset. Bad morale in most businesses does not equal proper productivity. If everyone at your job is upset, annoyed, or simply thinking of quitting to find new employment, I can't imagine people to be very productive which in the end hurts the business. Higher morale could be a difference between a successful company and a not so successful company. If I could not invest into a company, by the way of stocks, but only by talking to people who work at their company and how they like they're jobs... I would obviously take the company where people enjoy their job. In fact, I think there was even an article about that how investing in those type of companies, you would most likley see profits as the share values more often than not increase. I think raises should cover the increase of costs of living expenses + employment loyalty.

Ha - How'd my name get brought up? I by far am not a Guru of any sort... My goals are simply to get people to think for themselves & outside the box. And a lot of knowledge I would say I acquired was simply reading comments through others... Therefore, my knowledge is based from both Lopsters & RV'ers as I concluded to my own opinions. I try not to post anything unless I feel that I am contributing to some extent... My only background is that I am a business major, so I always find this stuff fascinating.

Sounds like an interesting and very believable story.. I can't even see how the nay-sayers would argue the OP. But hearing from someone within that area & familliar with the concept is quite encouraging. It appears that many of the people still want their zeros. It appears they simply just want to be able to "Buy More..."

I'm a little skeptic on how the CBI would be able to introduce regulations on how the average Joe on the street is exchanging hard cash with the average Jim. Now if they were an entity or business, I could see regulations proposed upon them. But in a free market society, how can a country state what value a person may or may not sell an item when factoring in supply and demand? Is the CBI now beginning to become scared that dollars are in high demand and that the dinars are not wanted by no one?

The examples I brought forward were pretty basic and actually somewhat unusual. They were used to help give an understanding of the situation. But the main goal was to have a healthy debate on inflation versus deflation. I left wages out, mostly because the amount of delation in the terms I was speaking of would be highly unusual. I used more drastic examples of the value to provide better insight to both inflation and deflation. In the real world, prices fluctuate all the time. The interesting thing about wages though, is that increased wages (for example, yearly raises) sometimes are based on the idea of increased living expenses. I remember at an old job of mine many years ago I was makine $9.50 and hour as a delivery person. My yearly raise was $0.10. That is the most the company would allow for my position at the time. Thinking back, I wonder if that covered the difference of how much inflation had occurred over that year. I was likely in no better shape only making $0.10 more per hour as other costs had likely increased in a higher proportion. Most definitely, a strong argument is a need for a balance. Understanding the concepts, you may find yourself hedging your bets appropriately when deciding on investments. Obviously, we cant take $1,000 and put it in a shoe box in a closet and expect the buying power to be more in the future... In fact, if anything it would more likely be arguable that the buying power would be much less. There are numerous factors to always consider when discussing this debate. I for one, believe that a free market society is a great solution. But, as an employer, how would I go forward with making changes regarding wage adjustments if the money they earn is starting to be worth more? I believe that first and fore-most, the best solution would be to decrease the amount in % of how the wage is adjusted. For example, if an average wage increase is 5%, maybe decrease it to 2.5%. I believe that employees still need to be respected for their time on the job, and raises signiify that. They're experience on the job can sometimes be important as a less expereinced new hire who works for less may not provide immediate results or always make the best decisions. Lets not forget the costs of training a new hire in depending on the job. I think for the majority of central banks and currencies, they will always see inflation. Which means we will always see prices slightly rise. However, the exceptions are things that are technology related. As we produce units of technology with ease and more effectively, we will see the prices drop. For example, who here likely has a big screen TV? (LCD or Plasma) in their household? The % of people who own such items today would likely never see themselves lucky enough 10 years ago to buy such an item. Improvements of technology have helped us achieve better, bigger, and higher quality units of technology. 10 years ago, I was happy to buy a 20" CRT Television and thought it was great. Granted I may have paid $100-150 for the TV, present day we may find ourselves buying larger TVs that are slim in profile or even finding larger and lighter models within reach of purchase.

Is deflation good or bad? Is inflation good or bad? Should an economy try to focus on a stable exchange rate for stability purposes? These are questions that many have their own opinions, while even knowledgeable people on the subject will find differences of opinion when referencing the economic theories. Many of us, on this forum, may find ourselves as consumers so we will likely be biased on what we find is better. We would all like to buy more for less, acquire more with spending less of our own cash, I know I would. There are two popular economic theories, Keynesian economics which believes inflation is good and Austrian theory that economics should work off of a free market society and that deflation is good and deflation is bad. Keynesian economics is by far the more popular, as it is used all over the world. But, what if the we started to change our ways and saw deflation as a good thing? Would the economies across the world fail? As many of us on this forum would likely be labeled as consumers, how happy would we be if we saw prices dropping? If our dollar gained value, we may see some prices drop consistently over time. Imagine if the national average for gasoline was $4.00 per gallon and in a couple years it dropped down to $2.00 per gallon and had the potential to drop even further? Imagine the money you have put aside to save for a new car purchase took half the time you had expected? Think about if your monthly grocery bill was $200 and dropped to $100? I can't imagine anyone really complaining about any of the above scenarios. Your first thought would be that the companies selling the goods/services are the losers in this scenario. That is not the case, as they would likely remain profitable or in some cases may even see higher profits. When we reference supply and demand, when prices drop, we can see a rise in demand. More demand may lead to more purchases, thus companies seeing higher sales volumes. To correctly determine the situation, they would have to look at units sold and not in terms of dollars. I will try and provide an example below: Lets say that Company ABC sells mattresses. They only carry a queen size in one model (Trying to keep things simple here). Their costs of goods to acquire the mattresses is $500 per unit. They sell their mattresses for $1,000. In 2010, Company ABC sold 1,000 mattresses. They had yearly sales of $1,000,000. The costs of goods was $500,000, thus their profit was $500,000. Lets say in 2015, the dollar value increases which led to mattresses only having a cost of $250 per unit. If the company maintains selling their product at double its cost, we would see the price of the mattress in the stores at $500 per unit. If in 2015, they sold the same amount of units in 2010, they would have a yearly sales volume of only $500,000, yearly costs of goods at $250,000 and only a profit of $250,000. This would appear they are not doing as good as they did in 2010, but that is not the case. Their volume of units sold is the same and their mark-up was also the same. The costs of goods decreased due to a stronger valued currency, so the yearly sales volume they received is equal to what it was in 2010 on what it can purchase. But, in this type of scenario, many would argue that it can be very likely that if they are able to decrease their prices accordingly that their volume of units sold would actually go up. So right now you may be thinking, "Deflation seems like a great idea, why are we not implementing it into societies? We looked at it from a consumer point of view, but we did not look at it from a debt holding point of view such as taking out loans. Lets say back in 2010 you took out a loan for $100,000 (maybe for a mortgage). If you had waited until 2015 to go buy that house, you would of only needed to take out a loan for $50,000 to buy the same house. This may go beyond loans as items previously purchased and sold later such as houses. In this scenario, if you had purchased a house for $100,000 in 2010 and had it paid off by 2015... The value of your house would be cut in half while if we saw the value of the dollar drop in half instead of double, the value of your house would double. But can we really view it as a major gain or loss as the purchasing power in amounts paid is equal to what it was in 2010? If we could see the future and saw that the value of our dollar doubled, it would likely lead to hoarding of cash. This would not be a good things for an economy. If everyone is hoarding, that means no one is buying. If no one is buying, companies are not making profits. Companies begin to fail and thus have to counter lower sales by layoffs or taking other drastic measures. Thus, a continuing domino effect as less employed people equal less people buying leading to more layoffs. If we look at recent events and history, we would have seen that the central bankers see inflation as a good thing and have continued to have applied its economic principles as the value of our dollar has lost 95% of value since 1915. Thus the good old phrase that we all may have heard by now that a Dollar today is worth more than a dollar tomorrow (Future value of money). If a dollar is worth more today than tomorrow, we are more likely to spend it today instead of tomorrow. We would only prefer to hoard our dollars with incentive (such as savings accounts or promising investments). If we look to the dinar, we see that their currency exchange rate is stable. Their monetary base continues to expand as their country sees economic growth and population growth. But, we see that demand is nearly non-existent and the market value is much higher than the official rate. It would be my prediction that many people from that region do not want the dinar and may possibly not even accept it as a form of payment. This may create or further decrease the market price. As the market price continues to fall, less and less merchants may look to accept alternative forms of payment (i.e., dollars, euros, etc). As consumers pick up on this, even they will not care for the dinars that they hold and seek to convert them to other alternative currencies. It would be my opinion to reverse this effect by taking action on giving back reason(s) to demand dinars over dollars. Deflation may actually be a feasible solution. I am not saying some significant value adjustment that happens overnight, but more of a pegged rate of exchange that slowly crawls and appreciates. As the official rate slowly appreciates, the demand for dinars may return.. Too much deflation may cause hoarding, but just enough may maintain and or return previous demand to use it. As merchants see its trending raising value, they will return to accepting it as a form of payment. As more places become accepting of it as payment, other merchants may follow suit. I know that I have seen a similar trend in the BTC population, as the awareness increases, the demand for it has gone up along with those that accept it as a form of payment. It has slowly grown and value has appreciated. If the CBI were to find that it has a high demand for its currency, it can exploit the demand if need be. The dollar is demanded all over the globe, thus we see that we continue to print due to the global demand. If our demand dropped, our value would plummet as well. Global acceptance has helped maintain our value. But will the demand last forever? I doubt it.. Once the global demand starts to plummet, our value may plummet with it. I guess you can only kick the can down the road for so long.

Thanks SWF - its nice to see tht some people are trying to seek viable truths and provide it to us.... I see that the majority of us here truly appreciate it so I hope you continue to do so to provide us with the possibilities. I always thought a great thread would be a deflation vs. inflation debate..... With taking the idea of bias out of the equation, I wonder how that thread would turn out... An economy really can't rely on one or the other getting away from them.

Ain't that the truth - its just a balancing act.. Raise wages, prices of goods/services rise... But not everything always goes up... I wonder how many employers may be forced to seek layoffs because of higher wages... That's a scary thought to consider as well.

Going off of memory... I believe either last year, or the year prior, this extension was given and put online about 1 or so weeks prior to the deadline date. We have not seen anything or heard anything thus far... Can't imagine an extension to be given last minute, but you never know.

I think I may be confused, but does the original post clarify that some rather intelligent individuals are invested? (i.e., contractors, senators?)

That could be an interesting concept or idea. Finance the appreciation of the value of the dinar based upon the thought and prediction that the barrels of oil are only going to be worth more in the future than it is today. Therefore, why not get some funds to boost the economy and let the future appreciation of the value of crude pay the debt. If you think about.... Lets say you knew you had something that was going to very very likely be worth more in the future in value than it is today... A great example, is land near a vastly growing city that may wish to acquire that land for more than its present day worth in the future. You have the ability to get a loan for a prediction of the future value and pay very low interest along with low value payments. Would you not take that chance? Think of it like if you were a business... It would be a great way to have some capital to maybe build new stores, hire more employees when/if needed, improve present facilities, etc. etc.

You hear something like this and expect a sell-off.. Scary enough, the value has held rather stable. MtGox does about 80% or so of the exchanges, IIRC (for BTC to USD & vice-versa) You read something like this and if your not invested, hope for a sell off to buy in on the cheap. If it can maintain stability, and other exchange stations come to light and provide ease of exchange, the value ideally should go up.

Iraq be stable? The only "stable" they know is where they put their camels.

Thank for the post Al Bundy. With a deteriorating rate, one would have to wonder that the supply obviously outweighs the demand. While that observation may be obvious, how does one go about maintaining or increasing the demand? If a seller does not prefer dinars, or prefers dollars over dinars, that will likely hurt demand as customers may likely prefer to use dollars over dinars for use of payments. As the trend continues, you see a ripple effect continue as more sellers do not prefer dinars, therefore less customers prefer to use dinars for making purchases. Many factors may play a role in the demand for a currency. Obviously where it is accepted plays a large role. (Look at the dollar, it is nearly accepted everywhere & the global demand for the dollar is high). Stability plays a role as well (Why hold something that is losing value if you can use a different form of currency to prevent loss of wealth). You could chop off the zeros, but in my opinion it is more of a status quo and the Psych of the minds of those that use the currency would continue their own status quo. Which would simply lead to people requesting 1.3 dinars for every $1. I think the official rate needs to be increased... The people who use IQD need to see a trend that their dinars are slowly buying more and more. The appreciation does not need to be so high of a % as it causes hoarding of their cash (That is obviously not a good thing). But, what the currency should represent is their growing economy. I think this would look good for foreign investors too. It gives them more data to show that making any investments into the country could provide some reasonable results. Obviously if their own currency is appreciating, any revenues made by doing business could only improve as well.

Its always good to hear that banks are going to be willing to buy back... It just proves that with or without any significant Re-value we can at least feel comfortable knowing we don't have to go through dealers to exchange back for cash. I misread it at first too and thought the post was referencing WF.

DFI fund is more of a funnel, not like a savings account, so to speak. Money is simply just funneled through there. But I know other researchers have found information regarding other seized, frozen assets of sorts that we do not really factor in.

The country is likely entitled to some seized funds that may or may not be protected by the DFI funds. We just know what the DFI funds hold... But, do you think Iraq would be so concerned about a few billion in a DFI fund? Makes you wonder what else the EO 13303 does beside protect funds. The DFI may be just one simple place where some money is stored, I wonder if they have access to the other seized funds and what it takes to acquire that cash. This is one area I believe seized accounts could play a role. A few million? Probably nothing to be too concerned about. Nice pocket change to Iraq if they ever get those funds. (I wonder if they're collecting interest in the mean time?)

No doubt, right? You know, if we all just start ignoring the B.S. that pours out of the mouth of the GuRus, I am quite sure they would stop posting such pathetic lies. I'm sure some may post just because they like to see the reactions people give...

Going off of the initial post for this topic how a code was released. Only code(s) I can think off the top of my head would be an ISO code. In this speculation, a new ISO code is bad. But the IMF also is not the one who issues the ISO code, but they may be privy to the information of an ISO code. (Not 100% sure) But to best answer your question, I don't know if its about a new ISO code, only speculating based upon the contents of the rumor.