drox

20 million.... Nice work! Thanks! I was really studying that same issue a few months back and now I can't find all the stuff I was researching. Basically, I came to an understanding that the bank reserves, CBI reserves, and the DFI account were NOT factored into the M2 at all. I think I mentioned that to Darin at one time but he told me they were. Sorry if I got that wrong Darin. I didn't look into it again. I have a big question mark when it comes to where this 59 Trillion number comes from. I remember reading that the CBI reduced the bank reserve requirements from 20% to 15% maybe a year ago?? I have to try and go back through my archives and figure out how I reached all those conclusions. I could be entirely wrong. Also... No one should assume that there is $250 Billion coming from the DFI. Although a couple articles have alluded to that, there have been articles stating $50 Billion and the actual audits say only $7 Billion - $10 Billion are leftover at the end of each year. $250 Billion would likely be the total amount deposited over the life of the DFI accounts existence. More proof is required to claim $250 Billion is in there. I sure hope there is that much though!

Exactly what I have been trying to say the last year and a half. You cannot substantially RV the currency without certain things in place (small rate moves, yes): *Better local security which starts with a Security Minister appointment *Amendment to the Investment Law of 2006 to amend many things but specifically addressing corruption and fair lending to Iraqi's not just international investors *Broader implementation of electronic banking to handle all the currency movement an RV would create *Electricity increases and availability *Banking guarantees or assurances for International Companies big enough to handle the big corporations *HCL *Showing some effort towards privatization *Reducing unemployment below double digits

dinarminer... you are in the early stages of research but I commend you for making the effort to do the research. You will find that it often takes you in circles in kind of a bi-polar emotional roller coaster ride sorta way. If you look for the negative aspects you will find plenty. If you look for the positive aspects you will also find plenty. It is neither a scam nor a get rich quick investment in my opinion. So... I try to throw those out of the equation. Although you will find "opportunists" or cons that will try to convince you otherwise and try to woo you away from your money. Iraq has made gigantic strides in their sovereignty. We want them to run but they are like a toddler that just learned to walk in some regards. Every step is a shaky one. Many of us suffered through the crawl stage too long so we are happy to just see them walking! Many successful currencies have very tiny exchange rates. Japan and India are 2. Iraq has already gone through hyperinflation like you described and the currency and economy has become more stable over a period of time. They may or may not redenominate. We shall see. Even if they do there is opportunity for growth in their rate because they haven't even begun to touch the surface of growth opportunities there. They have 30 million people which is a very large population. They need everything but oil. Iraq will become a tourist haven someday. Look what happened in Bahrain. I promise you the Iraqi's have noticed. Be patient but don't spend more than you are willing to lose.

Imminent.... Fresh Fish! Keep it up Big Boy!

OR..... This could be a country's actual freaking currency... that is being assisted and guided by relatively unknown groups like: IMF World Bank Arab League United Nations AND... Although not currently internationally traded (easily), It does not take a rocket scientist or some paranoid person from Utah to understand that it will someday be (easily) tradeable internationally. NOR.... Will the value remain at it's paltry level for its entire existence forever and ever and ever. C'mon bro!!! Have faith and a little patience! Patience being the operative word. Treat it like a long term investment and hope for something a little sooner. I promise you... those people providing the links haven't done 1/100th of the research many of us have done.

In my opinion.... Ali is full of crapola! If he is done selling then he as a person is a fraud. Not sure if he committed one or not. That is for a judge or jury to figure out. This is why I say so.... Although I never remember him ever discussing a rate... his actions IMPLIED one. He stated on numerous times he had a variety of cash-in locations ready to go. He had made arrangements with multiple law enforcement officers for security for said locations. He went into great detail about how we had to make appointments and they would be held very privately, to be careful whom you traveled with etc etc etc. He said we could 'CASH IN' and receive precious metals like gold if we chose to. He had 30 day layaway programs that basically rode the waves of the pumpers predictions so that people could lock in a dinar purchase and only be responsible of 10% of it if they could not buy it after 30 days. This was clearly profiting from pumpers that he claims he never understood. Yeah right!!! He told people he was buying a bank in Iraq. Baloney!!! I don't buy it. A person needs $90 MILLION DOLLARS to open a bank in Iraq. Not Dinar... Dollars! In a country that doesn't trust their banks and at a time when Shabibi wanted banks to consolidate to take advantage of economies of scale. They weren't interested in mom and pop banks... they wanted the big boys coming in. He said he wasted a couple hundred grand in the process. I don't believe it for one second. But that is only my opinion. He promised people he had a cash in program where he would buy their Dinar back minus his percentage. We knew Frank and DD were going to run 2 of his cash in offices. Now we find through the grape vine that BHGroup and Currency Vault have "arrangements" with Ali??? How's that? Aren't you competitors even though your all buddies? I don't quite understand that. How do 2 relatively unknown start-up currency companies suddenly jump into the business? Don't you have to have some kind of connections to the CBI since its not exactly easily internationally traded? The fish stinks from the head down they say. He just disappears and everyone gives him a free hall pass?? He was one of the only cash in opportunities upon an RV if the Dinar didn't become internationally recognized overnight. Because the cash in had to go directly through the Central Bank of Iraq! Any successful business owner will usually tell you that a primary reason you build a business is to SELL that business someday. He built an extremely lucrative and successful business and he just shuts it down? Baloney! This man built a fortune living in the United States. He closes down and moves overseas presumably taking all those Dollars with him when they should be filtering through our economy here! I hope he or someone he knows comes on and gives people an explanation because his ACTIONS have IMPLIED something very different than what he states in this article. If someone knows the truth please reveal it and set the record straight. I think his customers and the Dinar community at large deserves to know. The timing of his leaving was quite interesting I must say. I couldn't agree more NYer and others. As I said... This fish stinks from the head down.

Totally agree Ashtray! My heart goes out to those families that lost loved ones. My deepest gratitude for all those fighting for us across the world.

Delta22.... Half of the time time I like your posts but 90% of the time I love them.

Hello my friend! So glad to hear your beautiful words. You certainly may have acquired cancer but you are no longer suffering from the greatest human condition that we all suffer from... unconsciousness. To be at the mercy of the other voice always chatting in our heads called the ego. That voice that thrives on both positivity and negativity but absolutely consumed with thinking and thoughts. You have found the gift of presence. There is no greater wealth than that. You are living in the foreground and taking in all that beauty for what it is and doing it without judgment. You are a very lucky man. Let those electromagnetic waves fill you and heal you from both the sun and the ocean as you said. It stimulates the blood and gets those white blood cells bumping around in there. I hope to meet you too, especially if you have an extra longboard "log" nearby. Although, I think I will stop watching Shark week if I decide to get on one of those things. Ask this question but do not try to answer it okay? Just let it go to the universe. What would it take to be vibrationally compatible with health, wealth, love and happiness? Feel free to insert your own version but you get the picture. Be well!!!

QL.... What's up buddy??? Glad to hear you keep on keepin' on. How did that boy do in T-Ball? Should be time for some flag football now. I am coaching my son's 9yr old tackle team now. So fun. I coached his baseball team too. It took me awhile but I got my priorities straight in life. Hope the reading is coming along without breaking too many windows with that book. Erbil and HCL are important. It is also crucial that they amend the 2006 investment law though. Too many holes need filling in that law for Iraq to substantially RV without it IMO. I am hoping they address that before HCL actually. Hope you are right about the date though. D!

I hear they are based on your Karma.

Darin... I didn't think you thought it needed parity. I thought it would be a good place to get people thinking differently though. With the Dollar not very strong... it is a unique opportunity for Shabs to grab hold of this opportunity to build strength in the Dinar. A move to around a penny would be huge. People in Iraq would rather have Dinar then Dollars because they would make more money there. I think we will see enormous changes in the banking system in Iraq in the next 6 months. New deposits and accounts will increase immensely. ATM and electronic banking will finally catch fire. More lending will be promoted. International investment assurances will be implemented to go along with the MIPA political assurances that are starting to be used from the World Bank. This paradigm can all start with Shabs pushing the magic button. Right now he is in the which comes first the chicken or the egg rut. Does he wait until these items above are done first or does he RV now to push those things to completion sooner because of an RV? These 500 and 1000 coins and the 50k and 100k note articles hold the answers to me.

Your entire post was good. I just would like to point out my thoughts on Dollarization. I don't believe this is a problem anymore except for some last remnants of it being used. The idea of dollarization was to help stabilize the economy to curb inflation and devaluation of the currency. Although 1170 stinks as a number for us investors... it was a magic number to stabilize the economy. Inflation was reined in and it stopped devaluation. It built stability and credibility to the currency. Shabs is in complete control of all economic facets and tools at his disposal. So dollarization isn't really a factor in that aspect. Not sure on your stance on this, but I think many people on here are under the impression that dollarization means the Dinar must get closer to the par value of a US Dollar for Iraqis to stop using the dollar and only the Dinar. I think that is a myth and completely wrong. As I said above... it was to stabilize the inflation and devaluation and it did that. Now the Dinar has become credible again because it is stable and they have their own currency that they can print at their discretion. Even at a fraction of a penny rate. With that said... I think Shabs will get this at least to a penny or more to build purchasing power and consumerism in each Iraqi. Most importantly to promote banking and a more credible currency. My problem is with pumpers that tell people it needs to be around par of the $1 to be viable. That is wrong wrong wrong. As the majority of countries across the world's exchange rates are not at par and function even around a penny very successfully. Just my thoughts.

You two sound like Woody and Buzz as you keep pulling each other's string. "There's a snake in my boot"!...... "To infinity and beyond'!.... "There's a snake in my boot".... "To infinite and beyond"!

Tandy... You are such a classy and awesome guy. I bet you married one heck of a great lady based on that. I know she wasn't well. So sorry to hear she is gone but you will be in all of our prayers my friend! Stay strong. D!

Good point. I have seen some articles allude to a discussion taking place... yes. It has not gone to Parliament or the council of ministers at all. How many ministries is Maliki in charge of now? Maliki says a lot of things for the moment he is in. Sadr hates him because he turned his back on him. Allawi hates him because he has lied profusely about appointments. The Kurds think he is full of it because Article 140 is still not done. The people dislike him because he hasn't done anything he promised them. He supports corruption with his actions yet speaks about the need to end corruption. If there is one certainty in this entire mess it is that Maliki can turn on a dime and is not a man of his word. Think about the 50k, 100k notes and 500 and 1000 dinar coins. Watch what Shabs is doing. He is playing both sides of the field just in case.

DRV... I know you directed this at Dinarck but I hope you don't mind me saying that I think it is possible. Just different than most people. I think that Maliki has no intention of agreeing to re-denominate the currency. He is a total narcissist. Seriously... when was the last time he agreed to anything without a fight? He kicked that outstanding Trade Bank CEO out the door by threatening to arrest him on corruption. Made it all up. That was the only trusted bank in Iraq and totally jeopardized relations with international investment. South Korea flat out backed out of some of their investments and China ripped him up and down for it when he went there around the 18th to ask for a loan. You see that CEO was the nephew of Chalabi and Chalabi and Maliki had a huge public disagreement the day before. Maliki didn't even send his henchmen to do it... he went himself. Maliki wants to keep his thumb down on development and prosperity because he retains more power the more the people are in need. Maliki wanted to take the CBI reserves at one time for other things and Shabibi said no. Maliki has an issue with him and lets Saleh be his figurehead and spin doctor. That is important. Remember what M did to the best bank exec in Iraq? Shabs trys to steer clear of M but is a smart sneaky dude because he gets M to do what he wants without M even knowing it. My point is... the CBI is making contingency plans for the GOI if they vote down the RD. They will roll out some of these other denominations like the 50k and the 100k note. They are making coins for 500 and 1000 Dinar. Why would they do that? Why would you make a coin that will be useless after a RD? Especially when it would be so much cheaper to print then make coins. Perhaps, because those are the most used currencies and wear out the fastest? The US dollar has an 18 month lifespan. Perhaps they are planning for a postponement or cancellation of the RD altogether and it will help them not have to print new paper dinars as much? Think about this... If they kept those coins and just dropped 3 zeros off of the notes as many seem to think these articles suggest... Do you realize those coins would be worth $500 and $1000? How often do you lose the change in your pocket to the couch cushions or in the car? No one would make a coin that high in nominal value. No one! The deal is Shabs can't keep the rate stuck here forever. It is ready for a move off this arbitrary number. If they can get it to eventually to .01 or even .10 without any RD that would be huge for all us. Then they could even consider down the line to drop 2 zeros or 1 zero respectively instead of 3 zeros now. It is all about the options and whose in charge of the GOI. An RD helps certain things but it hampers future growth ability IMO. This is all speculation but fun to think about.

I hope you are right! But I have a question for you that I hope you can answer. Lets say they RV 1 Dinar at $1. Will the another site that pays his Iraqi employee $300 a month now (or 351,000 Dinar a month)... pay him $300,000 a month after it RV's??? If so... How much will the Americans working in Iraq make? How will the shareholders of the contracting company react? Will they fire all Iraqi's working for them? If so, how will that help support the Iraqi economy if they loose all of those jobs? Just curious. Hope to get an answer. Thanks!

This is telling us to prepare for an enormous banking shift soon to electronic banking IMO. In order to reduce banknotes they must get those off the street after they exchange the old currency for the new currency with citizens. Notice in red at the top it talks about timing it right? And at the bottom in red says... "corruption because of inaccurate structuring of the banks"? The CBI is preparing for a grand slam to hit all of these marks and use this as the catalyst to force a paradigm shift in banking for Iraq! Love the optimism but this is not what they are talking about at all. I want them to not RD at all and just work with the existing currency to get the rate up organically. I feel they have more latitude for growth in the future for doing so. This article is pointing to an RD. Unfortunately you and many others have been lied to about the lower denominations and the 3 zero articles meaning from the notes only and not the exchange rate. How do they get rid of the past inflation problem inflating the money supply if they take 3 zeros off of the notes only? How would that make transactions easier in the marketplace? Will they drop prices on goods too or will you just have to bring more currency in smaller denominations to pay for those goods? I am not a lopster... I want nothing to do with an RD. I agree that it is totally confusing as written but actually makes sense. They have to print that much of the new Dinar in order to exchange it tangibly with the Iraqi's for their old currency. What they are saying is that they want to use this process to also encourage the Iraqi's to rely less on tangible cash transactions and to trust in the banks and use and understand electronic banking. This will effectively reduce the number of banknotes on the streets. This move by the CBI will increase bank accounts and capital in the banks which will intern provide the banks more money to lend. This is where fractional banking in Iraq will truly make an impact. Unfortunately I disagree that it actually screams RD with an RV through time because they are building the proper foundation.

Hey guys and thanks for the questions. I want to attempt to address your questions through proof and not just my opinion. I am going to put something together and create a topic in the opinion section based on reduced statements of articles from General Tant from 2003/ 2004. I went through 2 of the very lengthy articles and reduced them to the specific point that you address. So watch for that post. Your question: Why didn't they just drop the 3 zeros in the first place? Well, because the currency was still unbelievably erratic. They had 2 currencies in use Saddam and Swiss at totally different values. The Saddam Dinar had 2 notes in use: 250 note (worth 12 cents usd) and 10,000 note (worth $5 at that time). If people began to view the currency as if the 3 zeros didn't exist as you suggest...it would make total sense to me. 250 minus 3 zeros is .25 and 10,000 would have been like $10. It aligns somewhat with the numbers listed above. They had to remove 3 zeros in figuring out making change in their head. Reducing it to more basic math for all transactions. For the price of the good and then to figure out how to make that change for it. Saddam ran up those currency totals for decades by printing money at his leisure. 90% of the banks were owned by the GOI so they did exactly what the crazy jackass told them to. By the the time the Coalition Provisional Authority took over it was $1 for 2300 Dinar. Of course... in a perfect world they could have re-denominated then but they had way too much going on. Blending the 2 currencies and fighting for stability was hard itself. It was confusing and scary enough for the Iraqis. Going with the smaller denomination notes would have just forced them to RD again soon and I think they were truly hoping they wouldn't have too. Going with 3 note currencies they were already familiar with it and those numbers gave them the latitude to go really high should hyperinflation continue until stabilization could occur. They were aware that Turkey had to lop a whopping 6 zeros! It was a currency structure built to sustain the rampant inflation. The Coalition Provision Authority estimated they would take in 3000 tons of the 2 former currencies. They actually took in 13,000 tons!!! More than 4 times what they were expecting! They had no idea that much was out there. They only made 2300 tons to replace it. I would think a lot of it was counterfeit but who knows. They printed at will and it destroyed the value. Remember... every time a central bank prints a currency it creates a new debt. Money = debt and debt = money. If you destroy a note without creating a new one to replace it then you are basically destroying wealth. So to just destroy the 3 zero notes today outright to reduce money supply you would destroy tremendous amounts of wealth. Hope that helps.

What are you talking about? Have you done any research on the original currency exchange? Do you not understand that they picked a rate and cash equivalents for both the Saddam Dinar and the Swiss Dinar based on the market conditions at the time? 1IQD for 1Saddam and 150 Iqd for 1 Swiss. Then they went through a civil war after wards and then had periods of more crazy inflation with unemployment levels reaching 50%? Part of it was the past from Saddam printing money at will and killing the value and part from the fallout after Saddam. Read the links I posted. They printed the existing currency so that they could get rid of the 2 defunct currencies (Saddam and Swiss Dinar) that were competing with one another. Not to mention that the Saddam Dinar was full of counterfeits from the black market and the Swiss Dinar hadn't been reprinted in decades and they were mostly ripped, torn, and in shambles because those folks wanted nothing to do with the Saddam Dinar. Then you had US Dollars in the equation. They wanted a uniform single currency for Iraq. The 3 zeros were indicative of the market conditions and the rate that the CBI and IMF and US deemed appropriate value for currency in circulation at that time. They thought they might have to bring in different denominations in time (ie...100k notes) depending on the market needs. It is right there in the links I provided you. You are merging 2 things I said into one. No wonder you have everyone so confused. Re-denomination was a separate point from the original currency exchange. Quit being so argumentative and try learning something. We are on the same side dude. Here are 2 decent links on the history of Dinar for anyone that wants to learn the truth and not made up stuff. Do your own research folks. Be your own guru! http://en.wikipedia....iki/Iraqi_dinar http://www.edinarfin...net/history.php

For anyone wanting to do their own research... Please enjoy these links regarding Gen. Hugh Tant who was in charge of changing the Iraqis currency. (Sorry the post above I accidentally typed Taft... it is Tant.) http://www.defense.g...anscriptid=3030 http://georgewbush-w...k/20031120.html http://www.usip.org/...s/iraq/tant.pdf This one is 20 pages but the most info. For fair and balanced research.... Here is the only known mention anywhere found so far of 14 denominations. http://www.cipe.org/...ynopsis_ep6.pdf

Darin... because they were smack dab in the middle of hyperinflation. Changing the 3 zeroes would do absolutely nothing DURING hyperinflation because the wound is still leaking blood and not healed. It would cost a ton of money for something that amounted to a band-aid. The problem would have continued again and they would be having to do a re-denomination all over again! This is the basic misconception of an RD. It doesn't happen DURING hyperinflation it happens years after inflation was reined in and stability has proven itself for some time. I still do not want them to RD but we all must understand how it really works. They had to change the currency because the country was using 3 different currencies at the time. The Kurds were using the Swiss Dinar with one value, the rest of Iraq was using ripped, torn, and often counterfeit Saddam notes, and the US was pushing the Dollar on them for something stable. There were no 14 denominations printed IMO. It was just the 8 as Gen Hugh Taft said. They knew they would likely have to print more in the future... both larger and smaller but that was not part of the plan from the start. It was a stop gap to help unite the currency so they had one and most importantly it was so that they could see we were not invading their country but liberating them.

The truth is neither optimistic or pessimistic. It is merely the truth and the starting point for one to become one of the two. I need the truth so I can make realistic guesses and spot trends. To me... The DFI was a flow through account that paid for most everything in Iraq. The oil industry makes up 90% of the GDP and that revenue was forced to go through the DFI for UN auditing purposes and so that they could subtract out 5% to the Kuwait fund. So if it makes up 90% of GDP and is only a savings account how the heck was Iraq paying for anything else? The answer to me is that it flowed right back through. To me... the money comes in and goes into a T bill account to earn interest, at the same time... other T bills are maturing and being released to Iraq to pay for infrastructure and GOI services. It is a flow through with a interest mechanism. That is my opinion. I agree that it is totally confusing about the surplus and deficit numbers. A lot of times they are referring to completely different things though and we just jumble them together. It is not uncommon for them to be in a budget deficit. They plan on that deficit because they hope oil prices will be higher than the budget number they base their projections of the budget on. Hoping the difference will be made up. If their revenues were exceeding their expenditures why would they require the IMF assistant stand-by loans for the budget shortfalls year after year? I think a lot of the times the ministries might not have been spending the monies too. Pehaps the surplus was the interest from the DFI? All depends on the context of what you read I suppose. Projects that failed or contractors that walked away stuff at years end could leave them with a surplus too. I dunno!

Hey guys, I so hope you are right but... IMO the $250Billion from the DFI was the total amount deposited in there since 2003! Not how much was transferred back into Iraq's control. I will say there is a lot of disinformation from this in the media so it is very confusing. The DFI usually has between $5Billion and $10Billion in the account after each year. Some of that is residual carry over from T-Bill investments year to year. I will say... that there is conflicting statements and understanding from the articles you be the judge. Here are 3 separate arguments below for you to determine what you think. I think if they had those huge amounts they would have paid Kuwait the full $20 Billion outstanding immediately instead of just paying $1Billion as recent articles suggest they reduced the debt to $19Billion. Why not release yourself fully from Ch. 7 Kuwait issues if you got it??? This article above says $250 Billion which you can read the article in full with the link provided. It was also dated July 04, 2011. Then you have this: http://www.iamb.info...20-%20Final.pdf It says at the end of 2010 it had $7.5 Billion in the DFI and at the end of 2009 it had $9.9 Billion. So how much is in there transferring from the DFI and which article is telling the truth???