DaveD

I don’t know Dinarck any better than I know you. I know nothing of your past interactions with him and why there is so much animosity between you two. I think all this record shows is you playing a petty irrelevant game of semantics in an attempt to discredit someone’s opinion. You can have the last word here, I’m done with this subject, but would love to discuss the dinar any time you want.

But you have also heard him say they currently have single digit inflation. He has said it a number of times when explaining that redenominations happen AFTER periods of high inflation. He has commented about the comparison to Turkey who lopped with 8% inflation. The statement “The dinar is in a hyperinflated state” seems to be true to me. They suffered massive inflation in the past, so the dinar is still in that inflated state. That doesn’t mean it is still suffering hyperinflation at this time. This is a silly argument. If my car tire is flat. It is in a state of deflation. It is no longer losing air, but it is deflated.

I not sure what your point is. Dinarck has said many times that Iraq's current inflation rate is single digit, around 8%. So you know good and well what his point is. It is that the dinar is a hyperinflated currency, not that it is currently suffering hyperinflation. I also don't know why this is an issue. The guru claim that currencies only lop if they are suffering hyperinflation has been proven a lie many times. The fact is redenominations are to remove the past effects of inflation and you yourself are now admitting the zeros represent that. The fact that gurus still make the false claims after years of the proof being submitted is evidence they are intentionally trying to decieve people.

You guys?? I am banned from posting anywhere but here. How am I pouncing on those guys? You seem to be a champion of anti-propaganda... yet I have not seen you one time call these guys out for OBVIOUS b.s.

The difference is the gurus and pumpers are telling obvious and easily verifiable lies. You are hoping the numbers and articles are lies. The gurus are misinterpreting and adding meaning to articles that defy all logic. Lately there was an article that simply stated they would put off the new currency until 2014 and continue to use the current currency through 2013. That’s ALL it said… very simple statement. Yet the gurus pounced on it and somehow claimed it meant lower denominations would be added and a big RV HAD to happen and it was proof of no lop. Funny thing is, just last week there was an Iraqi official who suggested they not issue the new currency and put out larger, 50,000 and 100,000 denominations. Question… how can you, the guy who shouts misinformation at the drop of a hat. The guy who has to point out that every single article or bit of published financial information that doesn’t lend support to a big RV, all that info is propaganda… how do you remain silent while the gurus and pumpers day after day pull that crap? Your hypocrisy on the issue is staggering.

Because it is best to redenominate after a country has stabilized it’s political and economic situation. An academic study of all redenominations specifically stated this. As we have seen lately there are some in Iraq who feel they still haven’t reached the level of stability needed to redenominate. That’s exactly what has been said a number of times in the “let’s wait till 2014” articles.

No surprise you saying that. I just can’t imagine resting my investment hopes on the chance that all published facts and all stated intentions are somehow a lie.

The effects are the zeros on the currency and high prices. It last until the zeros are removed through a redenomination/lop. It is standard procedure and has been done about 100 times in the past when countries experience this. There are no other ways to do it. The mythical big RV of a currency in this situation does not exist. It is simply impossible and will never happen. The only other option is to just live with it. Some countries are ok with having huge denominations. Vietnam is a good example. They don’t seem to care and I’ve never heard them even consider a redenomination. Iran has the same issue, they too have hinted over the last couple years they might redenominate. It is also very common for countries to talk about and plan redenominations for years.

From the CBI 1990 - 2003 After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars. From a congressional report… “This report was originally prepared at the request of the Senate Committee on Foreign Relations. With the Committee’s permission, it is being made generally available for the use of Members.” During the 1990s, a period of hyperinflation occurred. The government continued to print money to meet expenditures while economic sanctions shut off the supply of imported goods leading to a classical monetary overhang. A yearly inflation rate of upwards of 2,000% per cent was reported in open market food prices between 1990-1991.36 Another source estimated that inflation increased 5,000% between 1990and 1995. Kinda blows away the pumper/guru claim that the dinar was somehow artificially devalued by some entity.

Iraq is not currently suffering hyperinflation. The dinar is in a hyper-inflated state though. Iraq’s inflation rates in the early and mid 90’s were in the 1000% percent rage. They suffered hyperinflation for a decade. The effects of that inflation are still present on the dinar. Redenomination’s/lops are done to erase the effects of past inflation. Iraq is a PERFECT example of a country that should redenominate/lop.

It's amazing to watch the misinformation crew at the top of the board work. What's even more amazing is the number of people who apparently have the reading comprehension of first graders... who fall for their twisted interpretations of articles.

I hate to get into semantics here, but the Kuwait central bank didn’t reinstate anything, because nothing changed. Kuwait had about 400 Million dinar in circulation back then. (Notice… Millions, not billions and certainly not trillions) Saddam broke into the CBI and stole billions of dinar that had never been issued. Some people panicked and sold their dinar for less than the official rate. The CBK or any Bank in Kuwait issued one single dinar at a lower rate. All the banks were closed during the entire occupation. Saddam was kicked out and one month later the Central Bank issued a new series of notes to replace the old series. They checked the serial number of all dinar exchanged and didn’t honor any of the dinar Saddam stole.

I think redenomination is just as it sounds. They issue new currency with different denominations having the same value of the old denominations. In most cases it is by 10:1, 100:1, 1000:1 or so on. But not always… as stated the Euro introduction was considered a redenomination, but each country had a different rate. I don’t think what Kuwait did was a redenomination. It was just a re-issue. They issued a new series of notes to replace the older ones.

You ever think that maybe it's because once someone realizes a lop is the apparent outcome here and they start expressing that in their posts… they are suddenly treated much different.

I really wish people would quit saying “people will exchange a 25,000 note for a new 25 dinar note”. While it might be true, it’s not a good description of what will happen. The entire currency is being replaced. Stop thinking about what will happen to each denomination. Do you worry about whether you have 5s, 10s, or 20s in your pocket or are you just concerned with the total amount of dollars you have. I imagine it’s the later. For an Iraqi… if he has 793,450 dinar stashed away, he will take it in and exchange it for 793.45 new dinars. He will not be that concerned with what denominations he gets. He may ask for a couple of the new 200 dinar notes we hear about. He might have a trip to the erotic camel show planned and want all singles for tipping. Who knows. Point being, if you walk in with a single 25000, you might walk out with two 10s and a 5.

In all my years following financial news, I have never once heard the term lop used to describe a loss of profit. I've heard and read the term lop used to describe a currency redenomination many many time. No... there is a big difference in the way Jackster was posting his thoughts/opinions compared to the way the gurus post as if it's a fact. They hold themselves up to be these well informed, well researched experts. If they truly believe what they are saying then they are idiots. I suspect they know a lot of what they say is not the truth though. That makes them deceptive scam artist. Neither would you want to listen to for advice.

Lop doesn't mean loss of profit. Lop means to lop zeros, same as drop, delete, remove, raise, erase, trim, cut, or any othe word with that same meaning. Idiot gururs have confused people for years trying to convince them a lop is somehow different than a RD... please do not assist them.

Haven’t they said lately that the exchange will only be done at Iraqi banks where they have the ability to detect counterfeits? So now you can exercise your right to claim propaganda. Not sure why Jackster thinks there is a difference between lop and redenomination. They are same thing. Lop is just a term used to describe redenomination. I don't think when I'm called a lopster it's any more derogatory than when I call someone an RVr

Not John... but I'll give it a stab. 20Mill is correct, but he overlooked the most basic way Iraq increases the money supply. Iraq for years has had a 60, 70, 80, 90, 100 Trillion dinar yearly budget. I once saw where their budgetary spending was about 80 to 85% dinar and the rest dollars. All the dinar Iraq spends in its yearly budget… Gov salaries, welfare type programs, housing programs, rebuilding the country… they are putting 50, 60, 70 trillion dinar a year into the system. The CBI is buying a large part of that back at auctions and that’s keeping the money supply from ballooning too much. So the money supply is only growing 10 or so trillion per year. In the US we spend 3 or 4 trillion a year on the budget, but we also collect 3 or so trillion in taxes. It should be balanced, but obviously lately it hasn’t. Iraq collects very little in taxes. So they don’t draw back in money that way. Here’s the circle. The Iraqi Gov sells oil for dollars. They exchange those dollars for dinar from the CBI and use the dinar for Gov spending (budget). The CBI then uses most of those dollars to buy back dinar at auctions. And the circle just repeats over and over.

Hilarious post from a guy who’s been on this thread almost non stop for 8 straight days now. For Sanssouci… you sure do seem to be obsessed with making sure no one quotes the media or a government official.

The US doesn't have to back the dollar. The dollars value is determined on the open market. The dollar is worth what people are willing to pay for it. It's econ 101... supply and DEMAND. There is a massive supply of dollars but an even more massive demand for dollars due to the US having a 14 trillion dollar a year economy. There is almost ZERO demand for dinar (except speculators waiting on a 100,000% RV) because Iraq has basically no dinar related economy. The vast majority of Iraqs economy is dollar denominated oil sales. The dinar has almost no demand and yet has a supply 6 times more massive than the masive supply of dollars out there. The dinar is selling for about 1300:1 now in Iraq. It's not even worth the 1166 CBI rate. Not sure what a complete lop is. A lop is exactly what you describe as RD with rate of $.86. There is no such thing as a lop without a rate adjustment also.

SanSucky is full of good factual arguments. He probably has 50 to 60 posts in this thread alone. He’s brought up the great comparison of Iraq to Germany… and Germany lopped. He then posted a nonsense question comparing the US to Iraq. So two attempts to talk about the dinar mixed in with about 50 or so TROLL posts. Not bad for a guy who I suspect might be locked up in a mental institution.

I have been contacted by a number of people over the years who have thanked me for showing them the facts about the dinar resulting in them either getting out of the investment or not getting in it to begin with. If it was only one person I would consider it a success. Seeing how the number is in the dozens who have personally thanked me, and I'm sure there are many more I convinced who never said anything. I think it was well worth volunteering the little amount of time it takes.

Anyone with half a brain knows the US has a floating currency. It's value is set by the forex market. True supply vs demend. Iraq has a fixed or managed rate. There are many reasons why Iraq has a managed rate and will continue for years to have a managed rate. Countries with a fixed/managed rate are required to have large FX reserves to defend their fixed rate. That a guy who went to Harvard doesn't know this simple fact... well... I'll leave it at that.

You’re the epitome of a one trick pony.