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Everything posted by drox
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Nope... I think it has made it through all the committees though and is going before Parliament which is really good. Someone just posted the article in the news.
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Awesome article... thanks Trooper! First of all, whenever Dr. Peace Semaism speaks I listen very closely. She is the most in tuned economist in Iraq especially as an advocate for the people and not so much the politicians. We have long waited for an article like this. This is the first time in a long time they have talked about the currency being recognized internationally as a traded currency and more importantly as a currency worthy of being kept in international countries reserve accounts. Possibly for their basket of currencies both mostly for import/export trading and currency convertibility. They are acknowledging that they want this now. They are also acknowledging that Chapter 7 release is critical. It tells me that they also hope that will absorb some of their money supply into the various markets. (Reading between the lines) So... they are bringing Ch. 7 right back into the spotlight for the US and UN right now. It is not a coincidence that they had another article out today saying that Obama seems to want to keep them in Ch. 7. Time to turn that dimmer light even brighter! Something is up and a media strategy of some sort has been hatched! Although the article brings up the 3 zeros removal (RD) as a potential item that will help the IQD to become recognized that is simply an opinion of one of the parliamentary members. In truth, it doesn't need to RD to become recognized. Shabibi and the Parliament have the power to make it international right now. They can shoot some steroids into that turkey right now to make it look even plumper and juicier internationally without having to RD if they want. Say RV to around a penny or even a half of a penny for starters. Then let the market move it systematically with demand and speculation. Plenty of great nations have currency at or around a penny now. Japan and India for instance. An RD is esthetically pleasing and easy to use but makes no difference internationally convertibility wise. They will convert it at any price so long as it is recognized! Great dialogue in the right direction for us.
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CBI warns of spread of the phenomenon of money laundering
drox replied to Sara Johnson's topic in Iraq & Dinar Related News
I am sorry I am not trying to create any panic... I was just wondering if this pertained to us. Not that we laundered but perhaps were the end receivers of these notes some how. I highly doubt it but I wasn't sure what the article is insinuating. Easy makes a good point about 5/3rd bank and our notes being authentic. Not sure if the CBI tracks those though some how. I just read a thread that said Frank gets his notes to sell from a bank in Jordan. Made me say hmmmm??? -
CBI warns of spread of the phenomenon of money laundering
drox replied to Sara Johnson's topic in Iraq & Dinar Related News
Does this article make anyone else nervous? I thought the Dinar Broker's received Dinar directly from the CBI but this article makes me wonder if they are getting it through "other" banks without the CBI's knowledge. If that is the case.... Where did you go Ali? hmmmm? If someone sees this as meaning something else please let me know. Thanks. -
Frank is a fraud and has mislead everyone for a long time in my opinion. He is attempting to cash in the vacuum left by Ali's departure along with his other buddies we know from the summit group. Worst he does it under the guise of religion to promote his credibility. I wouldn't believe anything out of that man's mouth. Consider researching personality disorders and pay attention to "grandiose" idea parts and lack of empathy etc etc. I know people love this guy but WATCH OUT! He gets the money from Jordan is awfully interesting. I thought Ali got his directly from the CBI. Perhaps not. Did you read the article posted today in the news section about money laundry concerns to other countries flowing through banks beyond the CBI's watchful eye. That makes me a little nervous.
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The ministry approves the importing two watermelons.
drox replied to k98nights's topic in Iraq & Dinar Related News
I don't get it... Are you saying they are going to import 2 Jamaal's? Like him and his brother or what? Oh wait, I see K98... You didn't post the whole article. If you would have read further down they are also importing the following: A couple of jugs, grapefruits, balloons, twins, cans, and finally some bazookas. Sounds like a your bachelor party to me. -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Thanks. The CIA fact book says it is 51.51 Billion in 2010 up from about $38 Billion in 2009. Big jump. They rank Iraq 67th in the world for M2 or Broad money. You should take a look at that list. This number is pretty small in comparison to many countries I would consider less attractive in growth. Here's the link please take a look. Look at Japan and India that have exchange rates around a penny or 2. Their broad money numbers and their population. Those markets have no problem at these rates. Iraq should be able to sustain at least that shouldn't they? https://www.cia.gov/...=mde&rank=67#iz You too D&R! Honestly I don't personally believe the lower denominations exist. I think the only lower denominations would be if an RD would occur. The reason I am focusing on only a penny to 10 cents is trying to take in all factors I believe must be present to consider what it could reasonably RV at. I believe that if you remove 3 zeros that it is relative to all the numbers and not just the currency. If they remove 3 zeros from currency they must remove it from the exchange rate and the money supply too. Thanks Dinarck... great questions. I don't think they would have much need for lower denominations if they did that. I think they could evaluate for a period to measure the effect that kind of an RV would have on the economy. They could reconsider bumping it up more, introduce it to the interbank markets, Re-denominating at that point, or just accepting it as it is. There is no reason that Iraq can't add that language on to the existing notes we have now and just introduce it slowly that way. Kind of like the US did with all of their new designed notes. Using them both until the old disappears in time. That would appease everyone and be cost effective. Thanks... I hope you know I just have opinions from lots of reading and learning from others. I am not in the know on anything here. So take it with a grain of salt. In my opinion, I would say that supply and demand will dictate that for us. I don't think big money investors will swoop in and buy it all up. The CBI can control that to a certain extent with their awesome set of tools: Auctions, drop interest rates, print more money, reducing bank reserve requirements, etc. If the CBI comes in too high they won't be able to back it up with the reserves they have so it is all about finding the right balance. I personally don't think it will come into the really high numbers many folks think it will. I think a penny to ten cents is an unbelievable return for all of us compared to most investments out there but I would be secretly rooting for it to get up near the Saudi Riyals around .27 cents. Who knows what Forex and interbank listing the Dinar could do. It might stay right where it is or go up or down. I like staying grounded by positively looking for how it could go up. I know most folks want a buck or higher. I certainly hope they are right but can't see that at all. -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Hey Legolas... I agree. I am not sure if the tails wagging the dog or the dog the tail. An RD without an RV makes not sense at all to me. The 1 thing about Iraq I do know is that their government can't agree on squat. I am counting on that and maybe Shabibi is too?? Don't you find it funny that he is sneaking in the 100k notes though? He did it so nonchalantly too while we were looking at his right hand in the air he was putting the rabbit in the hat with his left. Why would they MINT 500 and 1000 Dinar coins? Usually coins are built to last. Makes no sense except maybe he is counting on using the same existing currency for a long time. That would also mean they are snubbing their noses at the constitution again too unless they put it on the 100k note and these coins? Guess we will see. I just see an RD as a waste at this time. -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Great comments. I swear I didn't see this post earlier (strange). Anyway, I hear what you are saying about the money supply not getting out of sync with the prices of goods and services in the marketplace. That is a normal economic system. The problem I have is this is not normal. We have to go back 60 years to Germany to find a remotely comparable situation. This is a wealthy war-torn country in terms of asset opportunity but they are living like a bottom tenth world country. Every thing must be rebuilt from both war and 30 years of Saddam's neglect. Not to mention this country is in the heart of the Middle East and there is an opportunity to bring peace to this unconscious region through economics and democracy. They could compete with Saudi Arabia to become the power in this region. So... What if the the pricing of goods is already an extremely unbalanced ratio against the consumer because of an overzealous Central Bank hell-bent on single digit inflation numbers and building their reserve? They have been stuck behind the 8ball for 20 years with imports/exports because of sanctions. How do you know that it suddenly is in "sync" anyway? 40% of their income goes to utilities (electric,gas,fuel, water, sewer) alone and they only get electricity for parts of the day I read. The Central Bank and Iraq economists rarely mention the Iraqi people investing in themselves to get ahead and promote jobs. They mostly just mention outside international investment and promote that avenue. The lending tendencies and tax laws all provide incentive to International investment but put their own people at severe disadvantages to the foreigners on these fronts. The Iraqi people's interests ALWAYS appear to come last from the leadership in the GOI and Central Bank. I suppose they figure they have been suffering this long and getting by so lets build a foundation and just ignore them for a bit. But all of a sudden they realize that we can't do this without the people. If they don't stop using dollars vs. Dinar then an RD will do us no good at all. Shabibi is a wizard but make no mistake he accomplished what he did by walking on the backs of the impoverished Iraqis to make it happen in such a short time. So did the GOI. What happened in Egypt, Tunisia, and Libya can happen here too if they don't start helping the people. That was the wake up call. My point is that the average income in Iraq is about $3000 a year. Check out the GDP purchasing power parity or (GDP per Capita)and world rank grid below which I hand selected: Country GDP per capita World Rank Iraq $3800 160th Kuwait $48,900 10th UAE $49,600 9th Saudi Arabia $24,200 55th Bahrain $40,300 21st Qatar $179,000 1st Turkey $12,300 94th Iran $10,600 104th Can you spot the trend here? Which one of these kids is doing their own thing c'mon can you guess which one. An RD will keep the same ratio won't it? So it doesn't solve the problem. Looking at the list above I would say $20,000 to $45,000 is about the range Iraq could fit in. 10 times $3800 is $38,000 right? So is it illogical to assume that the exchange rate couldn't also be worth 10times what it is today knowing the GDP growth potential based on comparable Arab states? That would put us roughly in the ballpark of a penny wouldn't it? So which will come first... the chicken or the egg? -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
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It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Hey Kimberlye... I certainly don't have the answers but I have my opinions for sure. I think you are saying RD and then RV is a waste of money versus just RVing. My answer is Yes and No. The problem is dealing with such large numbers for everyday transactions. Trillions actually has 12 zeros (I think). Billions have 9 zeros. It is just so much more confusing to use those numbers and most calculators don't even compute Trillions. So that aspect has a lot of strength behind an RD as well as just reducing the money supply numbers to make it look more aesthetically pleasing. But if the country is struggling and even has had to borrow from the the IMF for huge budget deficits like it has the last couple of years... Is is really worth spending $200-$300 million dollars on Re-denominating and marketing and security for ease of use and esthetics? I say not at this time. So if it was to combat dollarization then maybe... but I think they have to increase the rate to shift the confidence factor in the Dinar's favor. My thought is... they are used to using the currency now, so add the 100k notes for ease of use concerns. Then revalue the rate in a significant chunk... monitor the results... and then RD later or decide to just keep it but either way go international. -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
This is strange territory for us eh JMW? I think it is possible. I agree that basic accounting rules and central bank money management techniques must be adhered to for the most part... but, this isn't exactly a normal situation. Take the Paris Club debt forgiveness for example. That is not a normal thing to expect either. Pretty much 80% of their debt was wiped off the books. Iraq's situation has certain functions and nuances about it that give the appearance it is in an internationally accepted Do-over mode. When you think about it... Don't you think that 1170 was pretty much an arbitrary rate plucked out of a hat? Sure it reduced inflation tremendously but couldn't that be construed that it was soooo much in the favor of the Central Bank's objective to reduce inflation that it actually hindered growth in the rest of the economy? That it was too low all along? What if they had 30 Trillion Dinar and it was worth a penny right now instead of 1170? Hypothetically speaking... Wouldn't you still be making the argument that they need to drop 3 zeros to RD right now? I mean... would you be considering 4 zeros at that number or just 3 still? I am guessing just 3. If I was Shabs and I wanted to knock 3 zeros off of 30 Trillion ($26 Billion)... I would start printing money like it was going out of style before it Redenominated. Why not run that up to like 70 Trillion by lending to the people and the GOI and then RD? Spurring more growth in the process. $26 Billion is a relatively small M2 for a country with 31 million people in it...isn't it? The currency must be undervalued if they are still relying on the Dollar. Changing the nominal value isn't enough to sway them. Ease of use is important but it really boils down to trust and strength. That is the money illusion that an RD brings. It isn't stronger at all without bumps to the rate. If the plan is to drop 3 zeros and bring it to .86 cents then how much harder is it to increase the exchange rate at that point? It seems they would be better off using the existing currency, making significant increases to it now, measuring the effects, and then re-denominating later once the bugs are worked out if they want. Or... they can keep what they have and work towards reducing the supply. Perhaps trading it internationally will spread out that obligation across the globe to a certain extent? I doubt the US could cash everyone in the world in if they turned all the Dollars in at one time. Foreign currency flooding into Iraq from international investment will force the exchange rate up extensively anyway. Which will come first... the chicken or the egg? Thanks so much for the compliment. I am liked and hated. Sometimes both in the same threads. haha! I just try to come up with options and make people think and it pushes my education further too. A lot of smart folks on this site! -
It's not enough
drox replied to drox's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Hey cottn... The way I see it any increase is a step in the right direction. With the concern over the dollar losing value, an increase in the Dinar will have them going in opposite directions. Word on the street will change the negative Dinar perception quickly. It is kind of like an investor in the US that has stock but it isn't moving. Gold starts increasing at an increasing rate vs. stocks. Pretty soon you reach a threshold and say... screw this I am selling stock and buying gold. Even a 100 point bump to the Dinar could be significant indicator in Iraqi's perception. A tipping point will eventually occur where everyone will see it is going in the right direction and has tremendous upside. The best thing would be for the Parliament to increase laws against corruption and start really lending money to the Iraqis at the banks in conjunction with the increase to the rate. Speculators in Iraq are buying Dinar just anticipating a small bump of 15% with the RD talk. Going from 85 cents and RVing to $1 after dropping 3 zeros. Imagine what could happen if they bumped it up considerably more than 15% and not RDing? I am not sure they could go to a penny or ten cents now... but that is where internationally trading becomes intriguing and exciting with the IQD. I do not want it to RD at all. Too much volatility for us in converting ours at the moment and that makes me nervous. -
It's not enough
drox posted a topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
Clearly... the Iraqi's still prefer the security of the US Dollar versus the Dinar even after some stability has been brought forth to curb inflation. However, Iraq has the difficulty of dealing with Trillions in money supply and ridiculously cheap value for each Dinar (currently at 1170 per $1). Transactions are also tricky because they are dealing with large number denominations... yada yada yada. But is Shabs being honest that an RD is the best solution? Even if Shabs and the GOI agree to RD the currency, exchange rate, and money supply by removing 3 zeros will it really help dollarization? I say no. It will certainly make using Dinar easier and will give the illusion that they are at par with the Dollar, but it will not keep Iraqi's from using the Dollar, will it? Why? Because Iraq still does not trust the GOI, the CBI, or the banks. Aside from the cosmetic change that occurs, nothing really will change in the marketplace. There is nothing in it for them. The value against the dollar does not increase so the lipstick on the pig will not change Iraqi's perception of it. They are not stupid. The ONLY thing that will influence Iraqi's to support the use of Dinar is IMPROVING the value of the Dinar against a seemingly DE-VALUATING trend of the US Dollar. Therefore... it would be a complete waste of time, energy, and money for Iraq to RD the currency without first revaluing the exchange rate to a much higher number than 1170. You must have incentive for the Iraqi's to embrace the Dinar. Increasing the rate of Dinar...against a decreasing Dollar will do the trick. It is my belief the GOI will deny the RD and strongly encourage Shabibi to increase the rate. Therefore, an RD won't occur without a significant bump to the rate. So... Why change the currency denominations before experimenting with a new rate first? I think that is why we will see the new 100k notes. To make transactions easier in the marketplace in the meantime. The RD will be pushed back or eliminated by the GOI and a new rate will emerge soon in lieu of working with the same existing currency. Japan and India operate very successfully at a penny or two to the Dollar. Even at an RV of a penny, your $1000 per million Dinar investment will grow to $10,000 per million. Not too Shabibi!! At a penny, couldn't the CBI consider dropping 2 zeros instead? If it went to .10 (ten cents) you would make $100,000 per Million IQD... could the CBI consider dropping only 1 zero then? We have lots of options here I think. The illusion is that it must be at par with the Dollar to eliminate dollarization. That is simply not true. It must be a better return irregardless of the nominal number for Iraqi's to choose Dinar over Dollars. Doesn't it? The time is now for Mr. Shabibi to reveal his true cards and unite this nation! We have entered the sweet spot time IMO.- 43 replies
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Hey Chooch. First of all I like the name. I think you likely took on that name for the same reason I took on Forrest as my icon. Perception is different from reality depending on those that are quick to judge. Aren't you the humble one? I feel your pain my friend. I too have experienced about 3-4 years of unbelievable things mostly because of the actions of others and their unconsciousness. It has been painful and disheartening often but uniquely amazing too. Sometimes it really digs it's claws in deep and all you can feel is the pain that it causes. It is at those times you must be conscious the most for it is a test of your will. You have the strength of 10 men because of your morals and convictions. You are attacked because you represent the biggest threat to the all encompassing heavy fog that makes up the unconscious movement. Use what ever force to describe that you wish. I choose to simply call it the negative bounce back with an ulterior motive. It is a vibrational frequency manifested by all of us that tends to TRY to swallow up the good folks by a barrage of attacks from many angles. The truly strong, like yourself that recognize the weak ego'd cheats... still stand up amidst the pain. You won't take those short cuts to success, you won't trample on others to get ahead, you won't steal, and you rarely boast. You teach your children that is important to have empathy and do things with integrity even if it means it will take you longer to get there. Even though you struggle... you still teach your children and others by your actions that you will not be swayed off course for temporary gain. You my friend are part of the chosen group. A group with the monumental task of changing the world. You must remain grounded and work on being present. Right now you are going in and out. Sometimes these things happen because their is a greater force in your life that is trying to tell you that you went off course. As painful as it is... the message and goal behind it is a GIFT that you might not realize yet. The gift is clarity and peace. It is the awakening you are supposed to have so that your new course may be revealed to you. The knowledge you have and the ability to learn are not a coincidence. Your ability to communicate and to draw interest are by design. You have another purpose. My advice... cut out the news and anything drama related on tv. Same with talk radio and the newspapers. Selectively read only what you need to from the internet. Often that means just read the headline and move on. It does you no good in the state you are in to bring in other's misery. You cannot fix those things or control them no matter how much you care. So don't introduce them to your life. Don't get caught up in the drama of others through relationship or social media. Take it momentarily but let it flow through you and do so without judgment. Forgive those that wrong you. Let go of any residual effects that you feel your parents may have caused. We all feel some resentment in this aspect and we spend a lifetime trying to figure it out. They did the best they could just as you do with your children. None of us are perfect in that regard. We just want to protect them but sometimes we stifle their growth and limit them by our protection and over parenting. Recognize the voice in your head. When it is telling you to do something or when you are bragging or complaining. That is your ego and it wants to control you. It feeds off of the good or the bad it makes no difference. When you recognize it, that is when consciousness begins. The more you recognize when it is controlling you the more present you become. Those folks that want want want material things or people or titles are at the mercy of the ego. They are engulfed in the matrix. Ever notice when you want something and you get it that you just want something else immediately after? That is what the ego does. It doesn't want things it wants to want and that is a never ending continuous loop unless you stop it. Your job right now is to rescue yourself, find the underlying gift , and then show it to the rest of the world. Life is simply nudging you in that direction right now. Embrace it. Ask questions when you pray or meditate but don't answer them. Leave it open and let the universe answer it for you. How can it get better than this? but... don't answer it. How can I become vibrationally compatible with money and wealth? Again... don't answer it. Be well, at peace, and prosperous. Accept it for now because amazing things are right around the corner my friend!
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One monkey goes the whole dang barrel of monkeys are sure to follow. The banks can kiss my butt for the crimes they have created upon our economy and most of our homes. What... no more free checking and you want to charge me when I put all this in your deposits that help you make more money anyway? Wait.... didn't we just bail your butts out? Now you are threatening to layoff 13000 employees that paid the taxes to bail your dumb non tax paying butts out? Insert the F word here please! I am seriously thinking of pulling all of my accounts for business and personal from big banks and just go with small local ones or even credit unions. I am so sick and tired of being the dog being wagged by the tail. Vent over... beer opening... sipping initiated.
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Whoa... excellent post. I am somewhat versed in the light that you speak of. Although... There is a lifetime of information in the various splinters it takes you in, so how versed can one really be? All the different ideas and functions that form the light fascinate me. Ever read up on the biophoton emissions of molecules basically measuring light within people or things? Even the food we eat contains light. The waves are in coherence on a quantum level. People that are stressed or ill end up scrambling them. Imagine what you could heal by simply unscrambling them through obtaining consciousness? Take that one step further... imagine what could happen if we shared light with each other? We do now but not at a conscious level. Sharing it consciously you would change the world. It could potentially reveal the secrets of the universe and the zero point field. Who knows what else. Let me guess... your favorite color is indigo? Your name actually made me remember that. I knew there was a connection. Interesting stuff for sure. You ask a very interesting question and one that is slippery but I would like to attempt to answer it somewhat with a hypothetical. My question for you is this... could the "I am" actually be a state of consciousness he is referring to living with and not necessarily himself? "I am" could be like "being present" or awakened. So, to "be" is the way... to "be" is the truth, to "be" is the life. And no man can come to the father but by "being present". Interesting way to look at that isn't it? That would make him one brilliant and amazing teacher I think. Strange how we all can have so many interpretations on something. Dinar included. Human is what we are... Being is how we are supposed to live.
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This is great news in my opinion. This definitely tells me they are either expecting the Parliament to veto the idea of an RD or that it will be postponed indefinitely. I know that many people feel like they will be dropping the 3 zeros off the currency but not the exchange rate. I just don't think that will happen although I would love that. Basically, I don't believe any coins or lower denominations were ever printed and in waiting as has been suggested by others through the years. The coins being discussed in this article could be referring to the 500 and 1000 note coins. IMO those are the most used and the ones that wear out the fastest. So... it is my belief that "they" (the CBI) are counting on Maliki and the GOI to turn down the idea as well as turn down reprinting notes just for the Kurdish and English languages to be put on there too. That would thumb their face in their own Constitution, but they have been doing that since well before the elections anyway. So hopefully they will keep the existing currency and work with it. I believe the CBI would prefer that anyway. I think it has a better chance of RVing to a more premium price then RDing and then RVing. The 100k notes make it easier to do transactions in the marketplace. Those notes would be used for all commerce transactions and not just interbank IMO. Wouldn't we rather see the rate raise to a penny or even ten cents versus RD and maybe go to $3? Perhaps it could go even higher I'm not sure. Lots of variables to consider. This is awesome news to me. Think about this... why would they consider minting a 500 and 1000 coin if they were going to turn around and RD? Makes no sense whatsoever. They would become $500 or $1000 coins or else 50 cents or $1 (but with confusing extra zeros on a "minted" coin). I would suggest neither of those scenarios would work. So to me... they plan on keeping the same currency in circulation now for a long, long time. We shall see. Thanks Jim1Cor13!
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Interesting thread for sure. Lots of topics. You kind of sound like Phoenix or maybe killuminati to me. I don't necessarily agree with it all but I have read on a lot of the topics you are discussing. Curious that you haven't brought up Atlantis and the German cave men or the blue people from the Sirius region. Also... I thought that the Lucifer that was spoken of was not actually referring to Satan but was mis-translated in the one passage the word was mentioned in the Bible. I heard it actually meant "The Light" by Greek translation. So if "the light" is knowledge, which is of God or was stolen from God, for these 13 families, aren't we all using these same tools to defeat the Illuminati with now? Any thoughts on these things? Thanks.
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That was completely uncalled for. The person made a comment. Are you so unconscious that your little brain is unable to allow another's opinion on a topic that has not been proven either way? When it states the words... "deleting the 3 zeros"? Are you so at the mercy of your own ego that you have to call someone a "troll" to make yourself feel better and bigger? Talk about insecure and being a bully. Then you go on to cut down DV as you are actively using it? So... if Adam allows all perspectives on his forum aren't you basically calling Adam a troll too? Well, 2 can play at your game. Since you haven't been paying attention toots ... You will find that many of the well know sites out there are full of pumpers, liars, and cons. NOT ALL... but many. They have been exposed. DV has been the beacon to find truth and a vehicle for open discussion so that we may all figure out a likely scenario or spot a trend. Many myths have been dispelled on here and posters have helped to educate each other on both sides of the fence. It is simply where more of the intelligent posters and investors tend to go so I can see why you don't visit us often. There are several sites you can visit that will spoon feed you the BS you crave and maybe even give you a good ol' MLM group hand clapping start to get ya pumped and invigorated. They'll ban anyone for you that doesn't share the same perspective. Lucky for you, you can be the "baby bird" that you are and let them regurgitate articles for you and shove them down your mouth for you. All you have to do is swallow and chirp to the other baby birds. Here's a thought. If you want to draw attention try using intelligence to support your argument versus name calling. Something like the following maybe??? Although an RD is possible, I am of the opinion it will not do so for a variety of reasons. Just remember... that the council of ministers as well as the Parliament still have to vote and agree to it. As we all know, they have difficulty coming to agreement on anything and a new currency would be expensive and confusing in an already tense and porous economic environment. The CBI does not need the approval of the GOI to increase the exchange rate so hopefully the GOI will vote it down and Shabs will just increase the rate and work with the existing currency. So... baby bird, I am curious. At what rate do you think it will RV and how will it occur? If it is a much higher rate do you think the IMF, according to Article 4, would be concerned for the other member countries that an unfair trade imbalance would be created in Iraq with the other IMF members? Do you think the extremely cheap import prices would hamper the growth of new industry in Iraq because it would be cheaper to just import except for oil? If so would that further hurt unemployment and create issues of stability with the highly inflated new exchange rate you propose? Would Iraq still be at the mercy of oil prices (which makes up 90% of their GDP but only 2% of their workforce) just as they are now without that new and necessary industry? Sounds like you already have these pesky types of non-binding riddles solved. Please enlighten us. PS... I am not a "lopster". I think this will have a very nice revalue at some point and actually think the GOI will vote it down. I have developed some interesting arguments as to why, through listening to all perspectives and doing my own research from this apparently "crappy" site you allude to. OBTW... Thanks for the article, that was actually great information! Wish you would have left it at that.
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Ok... I can buy that as long as it then becomes recognized as part of their reserves some how. My point of the discussion is that it does not vanish. When you create a currency it must always be accounted for in some fashion forever and ever. That is the debt portion of it. Accounting must have a debit for every credit and a credit for every debit. The CBI will use the same money supply reduction techniques as all other nations. They are not going to create one all to themselves. Otherwise the currency will never carry credibility internationally because it could never be trusted. If you think about it, that is how they got in this mess in the first place. Saddam made his own rules and just printed Dinar as he needed it and the currency devalued to a paltry level of 4000 to 1. It has actually gone up 15x to get to 1170! The same principle will apply with a revaluation. In order to become credible it must follow internationally accepted accounting principles. That is the fundamental place where RV talk must begin in order to understand where it could possibly grow. Internationally accepted methods are the only way. This is where Article 4 in the IMF Bylaws really factor into what amount the CBI can RV too.
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20mil, Audi, Darin... Lets add estew, Dalite, Mr.Fn, and dinarck.... and whomever, There isn't anyone on this board that doesn't want the CBI to have the ability to just destroy currency to reduce money supply. Feasibility is another story. There is so much nonsense floating out there about unknowns spoken as truths so why don't we try and figure it out together? I challenge all of you to come up with articles and links on how any nation destroys their currency to reduce money supply! Like I said ... I would love for that to be the case. Please help me find that because I haven't found much precedence there. I will sleep way better at night if you can find it. Great thread and discussion by all of you obtw!
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I understand what you are saying. I just think that value wasn't "stolen" at all. Value was received . They bought goods and services with it. You have to have growth otherwise you are dying. Those amounts MUST go up over time! That is why consumerism is so important to the economy. It paces itself. Lots of value took place between $1.60 and $21.60. You can't just erase that. That is what you bought with the creation of that money. You simply can't erase it. If you buy a stock for $10 bucks and it goes up to $50 you can't just sell it and then buy it at $10 again unless it goes down. Value was created between $10 until you sold it at $50 and you can't erase that because you want to buy it at $10 again. Who knows... I fully believe in this investment making a nice return. I think what we are discussing is will the Dinar go to .01 - .10 cents or could it go to $1 or more. I just don't believe they can arbitrarily destroy notes to reduce the supply to raise it to $1 or more levels. I do think with the existing supply they can go to a penny or maybe higher to .10. Eventually growing closer to the Saudi in time. Thanks for the great discussion. Gotta run.
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Hey Darin thanks for the excellent response. Sorry for getting back to you late but had a lot going on yesterday. I understand your take but I disagree with your example. Your pie example says you have a pie in 8 pieces that suddenly becomes 4 pieces. That is incorrect because you are not showing where the pie is you took out. If you cut out 1/4 of it you have an entire different pie then you started with. A part of it was "consumed" or destroyed. Thus wealth was destroyed. You have less pie. Think of it like this. If you have an acre of land and you give 25% of it to the neighbor so that you don't have to pay taxes on that portion. Your tax burden is less but have you gained value or lost value? You are suggesting that you have increased the cost per square foot by making it less. I disagree. You have given away part of your wealth for a smaller return. Debt = money and money = debt. A debt was established when that money was created. That debt doesn't disappear when you destroy that same money. It is filtered into the system and is already factored into the whole equation. You just removed any chance of using that money to build more wealth. Normal money supply contraction methods don't destroy the money they basically hide it. When a FED or Central Bank requires a change they draw them back out. I haven't found anything that shows me any nations destroy currency for any purpose other than to replace it. Can you? So basically I think to destroy the currency you take away more ability for the CBI to back up a higher rate.
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Dalite... (and all others) I totally understand your point and you know I look at this investment from all sides. Keep in mind that 27 Trillion is Dinar at 1170 per Dollar...it is not measured in Dollars. So... I believe that 1170 is/was an arbitrary rate that was used to reduce inflation. To reduce it at such an astonishingly fast rate tells me that they used a very undervalued number to begin with. Kind of like training wheels on a bike. They promote stability but they hamper growth too. You can only go so fast because you are restricted by the stability. That is where Mr. Shabibi finds himself. The chicken or the egg. Does he bump up the exchange rate to a much higher more appropriate rate to promote growth? Or... Does he keep it low and hope some other catalyst will occur to stimulate the economy on its own? Tough choices. 27 Trillion Dinar with a revalued exchange rate of say .10 (cents) means you have 2.7 M2 value don't you? At 1170 right now it is really only valued at $23 Billion. Unless my calculations are way way off. I don't believe the CBI would just destroy notes to reduce money supply because that is just destroying the wealth. Using known methods will help. As one of the posters suggested... Increasing the bank deposits and accounts by the citizens is a big way I think they will reduce the supply. Only 4.5 million people have bank deposits from an article I read. With a population of 30 or 31 million people that is a lot of upside. This is why I was researching the M2 and what was included in it. If bank reserves are not included in that number then increasing those reserves will inherently reduce the money supply right? I remember reading that one of a central bank's tools is to increase or decrease the private bank reserve requirements. Not to mention the international business that will start filtering into the banks and their accounts. All of the new foreign currency deposits will absolutely drive the exchange rate up in my opinion. You are adding foreign currency that inevitably strengthens the Dinar. It cannot go to the ridiculous numbers many espouse though because it would make too big of an import imbalance. If it is too cheap to import everything then they will not build up the necessary ancillary industry that they will need to employ Iraqis and thus would not be able to reduce their dependence on oil. Iraq can sell bonds too. Iraq does not want to be at the mercy of oil price fluctuations. They want to reduce the percent of GDP that oil makes up while increasing the actual production. So... that means they must create lots of new industry. Again... chicken or the egg comes into play. Does Shabs wait until the GOI gets their act together to assist the foundation to support an RV or does he just bump up the rate and let them be forced to plug the holes as prosperity ignites? I am hoping we get close to a penny for starters and then see where it goes from there. That would be right in alignment with Japan and India as a good friend of mine pointed out to me.