JayP

Thanks PP.. I am ok with that, but the problem though, is that it was carrello that stated I did not bring value to the site. I think all opinions are fine, and I think material for great discussions. It is carrello that has stated and I quote: "So, I really don't understand you comments to me, and nor do I care. You are becoming a bad penny around here. You just have no value. Tens is still open, isn't it. You're a hero over there." So, for the record, I am all for open discussion of different points of views, and in fact welcome it, it is carrello and others that want to point out that only one view should be allowed, as if this site should be just like Okie's, where that is there standard practice there, by attacking the poster of opposing views rather than responding in a respectful manner and explaining how the opposing view may be wrong. One thing they say is they hate when people define things for them when a a view provides wrong information about something. Well here is another definition then... ad hominem: ad ho·mi·nem    [ad hom-uh-nuhm ‐nem, ahd-] Show IPA adjective 1. appealing to one's prejudices, emotions, or special interests rather than to one's intellect or reason. 2. attacking an opponent's character rather than answering his argument. Does this sound like a practice used much by chance?

I can respect that.. thank you

Please stop with the insults, and telling people that they are not welcome because some people like 2 sides of the story. If the site owner allows good discussions of both sides, then that is the decision of the site owner. I do know that site owners such as Okie, or steveI, would never allow anyone on the site that does not say it is going to RV soon, and definitely nobody that ever mentions the word redenomination or the possibilities of it, so maybe, the better statement is that this is not the board for you.. there are others that I think is much better suited and tailored for your needs If you know we we are allowed to discuss and ask both sides, why do you bother to torment yourself so?

Interesting take on it.. Thank you for the response..

Well said.. anytime anyone questions anything, they instantly are on the attack.. It is a rather strange phenomenon here on this site, and it is a real shame.. the Okie's of the Dinar world love people like that, it helps give them the cover they need to continue doing as they do as long as people like that stop those that dare question anything wanting to bother... I have never seen any investment where people are so quickly attacked for asking the hard questions that we may not like to, but as investors, should explore..

Thank you for addressing the question Sonny1.. I appreciate that some are willing to discuss openly. I do hope that is correct regarding the 6-8 Trillion. Anytime they can say that they have a strong currency where they are protected from the volatility of the surrounding countries, I think that is a great thing for our currency we hold. There is a great document that explains why nations decide to Rd: http://www.unc.edu/~lmosley/APSA%202005.pdf I do not think that they would necessarily have done it 4 years ago if they were going to do it, and there has been countries that waited a decade, but that is another topic for another time, if we get into the Rd discussion here, people will for some reason or another get quite upset, so need need to respond on that item. The real question though, would be if they desire the strength they have today because of the 100% of the reserves, then would even if they only have 8T in circulation, that means they only have about 6.8B total (USD worth) in currency today. If this is true, that would allow them to increase their rate no more than about 8 times higher before their total currency outside the banks is no longer backed 100%. Do you think they would risk that, and go above and beyond that to be able to Rv more than 8x the current rate, and no longer be backed 100% by Fx reserves?

Yes, they have stated on a number of occasions in the last year that they have the strongest currency in the middle east, and that is because they have the 60B in reserves. They can literally double their exchange rate, and still be covered by 100% with about 14B worth of reserves left over. That definitely allows them some great protection from volatility.. I have not heard them mention any other reasons for this though, but would like to hear if anyone else has anything showing them saying anything else though...

Yota691.. my apologies if you asked me something and I did not respond. I do not recall seeing a question addressed specifically to me. If you are asking in honest question, and want an honest answer I will be happy to oblige, but if you are going to attack me no matter what answer I give unless it is, "the answer is RV tomorrow", then please do not even bother.. I will be happy to discuss a good point with you though if we can keep it civil and adult like.

Hmm... you do nothing but attack me anytime I have anything to say or ask.. please stop the attacks.. and please do not tell me what to do and what I am allowed to ask or say.. I asked Sonny1 the question, and he is smart enough to know how to answer the questions addressed to him, I do not think he needs your input..

Relax carrello.. no need to get upset and worked up.. it is an honest question.. just trying to understand what we should be excited about.. it's all good..

Sonny.. can you explain your thoughts about what makes this the best article you have ever read? They have been saying this for a while that they have the strongest currency in the middle east, and while I cannot disagree because when they are so strong because their currency is backed by 100% of their Fx reserves then they do not need to be concerned of the volatility of the surrounding countries. The only thing that does concern me though, is that if they enjoy this now, then with about 23B (USD worth) of IQD in circulation, anymore than a little under 250% increase in rate would now no longer give them that 100% backing of their Fx reserves to protect them from that volatility that they enjoy today. Do they go over 250% higher and risk losing that strength they desire? Either that or they would definitely need to raise their Fx reserves substantially..

Thanks Stryker... I have read the Tant documents as well in the past, which was one of my reasons of my skepticism that there were more notes already printed, and I have never actually seen or read any other official documentation that states that 16 denominations were printed, so that is something I would like to see if anyone can find that. I am still searching as well though. According to this document it was just the 6 denominations. As someone pointed out anyway, even if it were the case it would not do any good since they would need the 3 languages, but I would still like to see if there really is anything that reads that there were actually 16 (or whatever the number was) rather than 6 we know of.

Thanks for the info. Good stuff.. I am not convinced that Iraq would go to a free float in my opinion, as I believe that rate stability would be important to them. I think that a managed float would be their best option since the confidence in their currency will be important as an emerging economy, but you brought up something interesting to think about at least. I would like to see continued small adjustments making a slow rise to where we would love to see this currency be!

Great point caz1104.. we are in complete agreement on this one. Key to a good discussion where all points can be put out there for folks to see and make their own determinations is being respectful of one another's opinions.. great post by you here

That is correct unfortunately. There are some "gurus" out there that are supposedly not rate-n-date guys that have absolutely insisted that the notes are already printed and have been saying that for a year not at least.. and have even gone as far as to state they even saw a pic of the notes, but never produced that picture. I have debated this issue with the pumpers for at least a year now that they have not printed the notes yet, and this is just another indicator that they have not yet done so. I would love to see evidence that they have though that would contradict this quote from the CBI.

I actually liked how you put this. I may not agree with it 100%, but you explained your thought process nicely where it was easy to see where your thought process was going. I personally cannot see them printing new notes, adding to the current circulation, and being able to then also to give the currency a much higher rate so the 25 dinar would not only be worth only .0215 if it were the same currency unit as the current dinars. To be able to raise the rate they would need to reduce circulation drastically, not add to it. I do see that in your thought process clearly though, and you did at least look at all the information and gave it consideration. I give you a + for that one for being open minded in the discussion.. thank you.. We would be able to figure things out much easier if all discussions were that open minded and thought through...

Let's look at a couple of Truthful1's recent posts: Jan 26 - 10:59: "Congratulations, your excellent at stomping on peoples opinions. your response is utter garbage and non warranted. i am very thankful who explain in deep thought as to why something will or wont happen. disrespecting opinions is nonsense. he has the right to contribute and you have the right not to read it. please keep your personal negativity to yourself." 12:09 "Im right there with you. i disagreed with about all he said. Theres justa level of respect we should hold for one another even in utter diagreements. im not the forum monitor, so state whatever it is thats pleases you. To me, someone opens up in deep thought just to be analazed and scrutinized, then they clam up and never speak thoughts again. i want everyone to bring as many thoughts to the table as possible. ignore it, disagree with it fine. i guess im just asking for a level of respect, that will never happen here. maybe i should shut it down? What am i accomplishing by saying something? The answer is nothing. i should not have commented myself. continue on, no forum policing for me. peace" Truthful... your post here about me providing some useful information to clarify some wrong information.. and then you are the same person that posted things like these 2 posts I copied... Hypocrisy at it's finest..

ok, apparently you have a hard time reading anything that does not contain "it is going to RV tomorrow", or "woohoo, we're almost there!!". Well, let me help you out then, my response and participation involved me clarifying what the currency outside the banks was. It was in the pump and hype of this article that someone said that the currency outside the bank may consist of USD x 1166 to make up the currency supply. I provided the CORRECTED information for you guys that none of you have the guts to point out to the person that stated that, and I provided the link to support my information. Now, tell me, other than cheerleading that we are close, and getting excited over speculation, and standing behind pumpers, and throw a jab my way... what great insight did YOU provide to this post that provided a link or anything else that helped us learn something???? That's right, nothing.. keep pumping it up though, I will not take the lolipop from the baby.. but do not attack me for sharing facts and links for folks where I saw wrong information being shared.....

For your 1st point. Here is the definition of a redenomination: "Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency. " I do not dismiss the articles as smoke, and I do believe that is what the CBI wants to do, and then hope that they do not actually follow through with those plans. But the fact is, releasing new notes, and deleting the zeros is in fact a redenomination based on the definition provided above. Your opinion 2: I would love for them to work things out with Chapter Vii by June of this year, but the fact is they can change their rate at anytime as we have recently seen them do from 1170 to 1166. I do think that indirectly, exiting from Vii will help them in the long term though, so it certainly would not be a bad thing. As far as the timing though, here is something to keep in mind though. They owe about 17 Billion to Kuwait, and Kuwait has stated that they do not wish to work bilaterally with Iraq to get the remaining items of Vii (the 17 Billion, the missing persons/artifacts, and the land and maritime border issues) resolved. They believe that the assistance of the UN is the only way to ensure that they will be satisfied. With the current Oil production, the 5% Iraq pays to Iraq every quarter comes to about a bit over a Billion dollars a quarter. If 17 Billion is still owed to satisfy the requirements of Vii, that means it would take about 16 quarters which is about 4 years to pay off that debt. I guess we can hope that maybe they can work with the UN to hopefully come to some settlement agreement on that that would be different than the 5% they are paying every quarter now. As far as your 3rd opinion.. I say that is fair enough. It is your opinions, and you are entitled to that, just as everyone else here, so good for you, and I hope that you are right as it would be a great outcome for all of us.

Just to clarify.... and not sure what you are trying to say I am reaching for.. but I was talking about MY emotions hoping, not yours... so not sure how I was bringing your emotions into it with the comment..

Wow.. pumpers never seem to know how to not be standoffish.. No worries Stryker..enjoy the time with your family. You will never be boring, I am about facts, your about fun... the straight truth never does sell well.. You stated that the figures could be based on dollars x 1166.. sorry, while you pontificate on theories, hopes, and misinformation, I am the one that provided what the currency outside the banks are correctly defined as. My apologies if that was too drawn out or boring for you...

I am in agreement with you that they prefer the dollar. I do think that how they define the currency outside of the bank is based on the domestic currency, not the dollar though. As far as the numbers being accurate based on that, well, I do hope to see evidence that it is wrong, but I have not seen any of that other than my own emotions making me hope that is the case. As far as inflation figures, it is often based on rent and food prices. I do think that regardless of the use of the dollar or the Dinar, the prices are the prices, and you can easily tell if the prices are on the incline or not. I have seen your responses as well.. I am not willing to wager on which of us is worse.....

Well, frankly there is no need to prove this wrong, because frankly, I hope it is right, but what I would be interested in, is if you can prove this theory to be true. What you are saying sounds great, but just because you say it, and it sounds good to you and I, does not make it true. I can say many things that sound great in life, but I will not speak to it as if it were true. I think perhaps maybe the more productive thing we can do together though, is to see if we can prove that what the CBI documentation is saying is not true. I do know most people prefer to use the dollar because of confidence in the Gov't there, so many people have, hold, but never use dinar, and prefer to exchange it at the currency traders for dollars. With all the uncertainty in the govt, I suppose I would do the same. That and the fact that if there is 27.6 Trillion in and out of the country floating around, with a rate of .00086 where I need 1000 of them to purchase 2 cans of soda, I would prefer to use the dollars where I would only need 1 of those to get the same 2 cans of soda.

Hi Stryker.. here is what the CBI defines as the money in circulation: Monetary Base is the sum of domestic currency outside of bank and bank reserves (a + b ) a - Currency outside banks, i.e., the currency component of the money supply as shown in the Analytical Balance sheet (Item 8) which is derived from the following sources (currency put into circulation reported by Issuing Dept. less vault cash(item 8.1 of Analytical Balance Sheet) reported by Research & Statistics Dept.). From December 2003, currency in circulation is the new currency issued by the CBI less redemption of old and damaged new currency notes. Prior to October 2003, currency in circulation is all Iraqi Dinar (other than the 25 swiss Dinar notes) issued by the CBI (both Swiss and Saddam Dinar at face value) less redemption of old and damaged notes and issued currency in vaults of CBI. b - Bank reserves: ID current account (item 10.1) Overnight ID deposits (item 10.3) ID vault cash (item 8.1) Page 2: http://www.cbi.iq/documents/Key_Financial_Indicators_Documentation.pdf The currency outside the bank is domestic currency. Hope this helps clarify that some..

The fact is that Allawi wants the power, and the Sunni have believed from very early on that they cannot envision a situation in Iraq where they can protect their interests without domination. This is from a document that was sent to from the Embassy in Baghdad to the Secretary of State in Washington back in July of 2004: "© Pol Counselor Ford and Pol-Mil Counselor Neumann met July 20 with Jordanian Charge Demi Haddad (strictly protect). Haddad has extensive Sunni contacts built up over several years in Iraq. He reports that more Sunnis than ever are coming through his doors. The picture he painted was depressing. Haddad said that after nearly 100 years of repressive rule the Sunnis cannot envision a situation in which they can protect their interests without domination. The only alternative appears to be permanent suppression. Although outsiders see the potential for an alliance with the Kurds to block Shi'ite domination, Haddad said there is too much bloodshed between the communities. The logic might work in another decade but the Sunnis do not believe in it now. " In my opinion, I think this this shows where the thoughts are for Allawi. The fact is that the majority of the oil is controlled by the Shia and Kurdish regions, so the Sunni want to make sure that they get their fair share of control, money, and power in the nation, but they are going about it in an unhealthy and unproductive manner by doing anything within their means to slow progress, and set an Iraq where Maliki is the PM up for failure until they control and dominate the country so that they can protect their interests. There is simply no trust for each other within the parties.