MrFnHappy

Here's a direct link to the article http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.com&sl=ar&tl=en&twu=1&u=http://www.albaghdadia.com/n/iraq-polotics/28455-2011-06-06-19-06-59.html&usg=ALkJrhihYHuuYIoRCA4UZ9wRKajHUDSEqA

I get tired of hearing the dinar is a "scam". While you may, or may not make some serious money on this venture, the dinar is acknowledged by the IMF, UN, WB, etc, as "honest to God" money. This is a SPECULATION on what could happen to the dinar's value. There are no guarantees.

I believe what you refer to are the agreements orchestrated by Kurd leader Barzani, in an effort to resolve the ongoing issues over the security posts. So yeah, I guess indirectly it could affect the RV/RD, since I can't see anything happening until they have a full govt.

You stated this in another thread. I replied, and you never responded. So, I ask again, where are these assets? I replied;

I was going to just lurk on this thread, but have to give kudos to jim1 for a nice post.....carry on!

Granted, the IMF wields some measure of influence because the fundamental relationship between member country and the IMF is "quid pro quo",....we'll (IMF) do this for you, and you (member country) endeavor to do that (IMF "recommendation"(s)). Ultimately though, policy implementation is up to the member country.

The short answer (IMO), is yes, it is flawed. I'm not claiming I know everything and know how things will go down, but unless someone can present a reasonable scenario for a "work-around" to the issues I mentioned, based on what I know along with some common sense, the petro-dinar isn't "doable". Please don't take the above as a personal "challenge" to anyone. It's all my opinion, and I'm open to new ideas. After all, it's hard to see the world with your eyes closed.

Not much to add...... Quite some time ago I (and others) entertained the idea of a "petro-dinar". Arguably, it would be good for the dinar. Increased demand typically leads to increased value, and not only this, it would also bring dinars back to Iraq without any drain on the CBI's hard cash reserves. The downside....reduced USD revenues, (which they currently depend on to run the country), and serious damage to the USD (the current cash reserve used to maintain the value of the dinar). It seems to me that the downside outweighs the upside. Of course this is JMO.

Pass the popcorn please.

You are correct, it doesn't reduce their exposure. But, if in fact they are actually going to re-denominate, it's a moot point. They are already over-exposed. IMHO, a straight up RV needed to happen by probably no later than 2006. It didn't happen back then, and still hasn't happened in large part for the reasons Jim1 stated in an earlier post. In 2005, then Minister of Finance Baqir Jabr al-Zubeidi was already talking about a re-denomination because of his concern over the M2 (dinar in circulation). Back then I said "smoke and mirrors", but today I personally have to take them a little more seriously.

Good post. One must also remember that all Central Banks hate speculators, and will do anything to reduce their exposure. Every dollar made by speculators has to come from the Central Bank's reserves, and if you think they don't care, you are sadly mistaken.

Same thing. Taking it in context, we could apply one of the two definitions I bolded. So their intention is either to add zeros, or remove them. Do you propose they intend to add zeros? Another RD article.

First of all, I'm not saying they will definitely lop, but it seems that is the way the wind is blowing right now. Also, I am NOT defending huey. 17 million dinar is not really a lot. I personally have more than that, and I personally know quite a few folks who have substantially more than that. It seems many here believe the dinar will become worthless post RD....it will NOT be worthless, and could quite possibly RV at the same time as it RD's. This is why those who think it COULD go that way are still holding dinar. Additionally, many of us bought long ago, for much less than today's price, leaving us in a slightly better position. Not braggin', just sayin'.......

Many countries have re-denominated in the past, and in every case, there has been an equal adjustment to the rate. Here's one example. Bottom line is the value of the M1 in USD will remain the same. If you have 1 million dinar worth $850 prior to a re-denomination, then after you would have 1 thousand dinar STILL worth $850. Hope this helps.

Exactly keep, hope for the best, and plan for the worst. Especially when speculating, you have to be prepared for any outcome, that's why it's a SPECULATION. If the outcome was guaranteed, everyone and their mothers would be in it.

A revenue neutral event. The zeros would be removed from both the currency, and exchange rate.

Karma can be a real MUTHA!