AudiS4

I feel the need to chime in. Many of these articles are being mis understood. The claim that it will be the highest valued currency in the region and prospects of 1 dinar to 1 dollar are not lies. What you are forgetting to understand is that their vehicle for these claims is a lop/redenomination. please dont think it means they are going to revalue and that's that. They are making it sound like they will redenominate at the same time they also revalue therefore making a complete wash in increased purchasing power. Yes, a lop would technically increase the value of the dinar, but it doesnt increase purchasing power. Just because these articles ARE claiming a redenomination/lop doesn't mean I believe that's what they should do. I'm STILL confused as to how all this praise for "removing the zeros, yay for us, we're Iraq and this is a huge step moving forward" really is a step at all. It does nothing financially for them and is permanently screwing the citizens of Iraq. Also, I know you'll all hate this, but think of it this way. When they say "remove the zeros", some of you think they mean remove the zeros from the currency (which is correct). Others think this means remove the zeros from the exchange rate... which is incorrect. 1) There has been a few articles that clearly spell out in exact words: "remove the zeros from the currency", yet was still interpreted as "remove zeros from exchange rate". Stop lying to yourself. 2) In comparison to the exchange rate of other currencies of the world, some would not have three zeros... so you're assuming that when they "remove the three zeros from the exchange rate" that they're talking about USD... which is an assumption at best. Maybe they're talking about the Yen? Who's really to say which currency they're talking about. Wouldn't they come out and say "yes, we meant exchange rate against the USD" if your assumption of "remove zeros from exchange rate" was true? Ok so now that I got that off my chest, I still have to admit that I disagree with the lop/redenomination procedure. I have not switched sides to become a lopster... simply have to give credit where credit it due... and that's with the truthful content of what these articles are stating. The whole theory still doesn't make any sense to me and at this point, I dont think it ever will. If they're going to lop/redenominate... why not just DO IT? Why are they talking about it so much? Why couldn't Shabibi tell everyone the details during his videos from April when asked flat out? ("Well even if I knew, I couldn't tell you")... why not, Shabibi? If it's just a redenomination... what are you hiding? I still think there's more at play here than they're giving out (obviously)... and until the process (whether it's RD or RV) is complete, I'm still in the RV camp.

I agree... $0.75 would be phenomenal! I could only HOPE for that. Give me $0.05 and I'm out!... though I'm with Adam... $0.10 to $0.25 sounds about right with it rising slowly over probably a decade.

I'm with Darin on this and have been for a long time. Bingo! If X + 1 = Y ... then Y - 1 = X ... not Y - 1 = R I believe it's newton's 3rd law that states: For every action there is an equal and opposite reaction If you increase the money supply, each unit will be worth less... we all know this. If you decrease the money supply, each unit will be worth more. Take any collectors item... as time goes on, the item becomes more valuable due to the increased rarity (removal of units from the market increases the units that still remain). I don't understand how else this could possibly work.

exactly 20 years from the aug 1, 1991 date

$0.10

I actually WOULD be happy with a dime. Pretend you had 10 million dinar... that turns into $1,000,000.00... look how many zeros that is! After tax that's about $650,000 off a $10k investment. That could easily buy a very nice house... WITH CASH... nevermind the equity you already have and the fact that you wouldn't have a mortgage. If that doesn't make you happy, nothing will.

Interesting... though I wonder how much of that info he received was from gurus

He also claimed something about how within 6 months you'll no longer be waiting. I forget the EXACT dialogue, but it was something to that extent (within the videos)

They actually posted the rate within Duke nukem forever. Rumor has it the rate is somewhere in there as well.

That's not really the same thing. Hydrolocking an engine is due to "something" in the engine giving out when you try to compress water (or any liquid for that matter). Believe it or not, your connecting rods will give way before that water compresses I'm not familiar with the energy requirements of electrolysis in comparison to the energy output of a fuel cell or combustion of hydrogen. I want to think it adds up to an energy loss.

I've been trying to preach this scenario for a while now. Not sure if people just dont understand or what the deal is. I fully agree and gave you a +

Which is why I'm really thinking the rise in the Dinar will be a slow one (or at least a multi step RV) where they can phase out the old large notes slowly and introduce the smaller notes instantly. There is a magic number range where it still makes some sense to have the larger notes (think $0.01 RV- a 25k note is worth $250 - not totally outlandish). No training would be needed and they can cut down on the chaos. Slowly increase that to probably a max of $0.05 (25k note worth $1250 - getting up there) where a huge effort to pull in the largest notes should be accomplished. I guess we'll all just have to wait and see

If the dollar tripled in value we'd be able to buy "stuff" for a whole lot cheaper. That is... if we continue to import everything. I'm assuming you're talking about a $3 RV after a LOP. HOWEVER, this is not a good comparison. The IQD is so utterly worthless that a 3x increase would have virtually no effect on their economy. You still have to look at the PPP... which is somewhere around $2000 - $3500. If you triple that, MAYBE you can survive. We're not talking about the average american income of $50k... and THEN triple. I'm still waiting for the explanation on why a LOP helps at all. It absolutely won't help their country/economy grow. If it's such a great idea why don't we just print money like mad to create massive hyperinflation so we can LOP. We could continue to print after that so we can LOP again! Why don't we just continue to LOP? Clearly that's the answer to it all

Froto, you are one annoying little troll. Why do you stick around? Are you going to be here to say "I told you so!" and we're all going to bow down to your almighty reasoning? Don't count on it. Life is short, go do something.

Well it's not going to stay where it is forever. The question is "when" and "how much". I would just sit tight... the next week will be a bumpy ride

I guess I'm confused as to why currency can't be removed from circulation. Wasn't it added into circulation at some point? Or was it all hiding in a buried treasure chest since the beginning of time and we've simply been using it since then? You can't tell me 50 Trillion Dinar simply "just" exists. If it can be added, it should be able to be taken away. Please explain

We all know people from Wisconsin are not the brightest bunch, but it doesn't make a lot of sense.

Darin, I'm sorry I haven't commented on much you've said... but that's simply because I agree whole heartedly with your views. it's as if you've taken the words out of my mouth. Maybe it's a Minnesota thing. Froto, I think the point you're missing is an increase in exchange rate would "supercharge" the development of Iraq. If you could buy more for less, think about all the buildings that could be built from materials imported to the country. Think about the cost to build cheap, reliable power plants. How about the cost of water and water filtration? All of these things benefit greatly with additional purchasing power. You're viewing us (as speculators) as a large group of people that will simply suck the life and wealth out of Iraq. Stop being so egotistical. You and me mean very little to the country as a whole. We're a gnat on a elephants rear end. I'm confused how injecting more cash into their market (pre or post redenomination) would help them as much as an increased exchange rate would. Sure it keeps the wealth in country... but who's wealth is it and what will it do for them (them as in each Iraqi citizen)?

I had some comments I was going to share with regards to post #39, but it looks as if most of it was discussed further on. I think we're all in agreement that a significant revaluation will not happen given the current reserves. Am I right? Nobody knows exactly how much is in the DFI, but we can assume it's rather significant. Maybe not $500B worth, but still a significant amount. This, at a minimum, will be needed for some form of revaluation beyond a slight increase. The monetization of non-liquid assets are where they stand the most chance at a revaluation. Assuming they have 150B barrels of oil, at $76.50, they're somewhere in the $11.5T range. This, plus their current reserves, plus an unidentified amount in the DFI, should allow Iraq to increase their exchange rate. All of this has been discussed and mostly agreed upon. It looks like the current debate is "Why would Iraq want to revalue - why not increase money supply?" So I have to ask, why would an increased amount of currency help out individual citizens of Iraq? Where would that additional "value" go? The CBI? So you're telling me the CBI can simply print off wealth? If that's the case, why can't they "burn" so to say any amount in circulation right now (the 3T number)? Why wouldn't every country do this? IMO, Iraq would have much more to gain given a better exchange rate. If Iraqi's could buy what they NEED, they could focus on better themselves. This, and everything that goes with it, makes the most sense to me. Drox does bring up a very, very valid point though that I never considered... If Iraq wants to develop a private sector (which they should), why increase the value of the currency to where they wouldn't have to develop a private sector? It would be more of the same from the ME. From what I understand, Kuwaiti's receive large amounts from the GOK. Though this isn't quite where Iraq would go, it still holds the notion of the typical Kuwaiti, "Why should I work when everything is given to me?". Thanks (or actually, no thanks) Drox for bringing this point up. I think it's fair to conclude that a number of outcomes are entirely possible given the current economic condition of Iraq. Which one they choose is beyond anyone here.

" You can take that to the bank! "

They shot bottle rockets at them... what's the big deal?

But that wouldn't increase the purchasing power at all... no matter how you look at it. Unless they are referring to the exchange rate zeros, it doesn't compute. I doubt they're referring to the exchange rate zeros simply because it looks NOTHING like that.

No, he took it to the bank

Yup, they will. Too bad a LOP isn't what's best for them. For the fun of it, I'm going to start balancing my checkbook in cents from now on... because I just like to redenominate and make my numbers look better. It gives me a warm, fuzzy feeling. And because I feel all warm and fuzzy, it'll therefore make me more financially well off! It's def what's best for me!