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Just for grins re the "phantom Lop" and Warka


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...Lets say just for grins that we all get screwed with the 25k becoming 25. Total disaster, and I can't believe it will or would happen. But just for conversation, what would then happen to a million Dinar in a WARKA account.....a dinar is a dinar isn't it??? Will they reduce those by a thousand times also.....and then what would happen to the Iraquis money in the bank???all of a sudden the little they have turns to a miniscule amount??

I sure wish this would hurry up and get over. Best to all. FT

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CaptainT:

In the event of a redenomination, all paper and electronic currency would be reduced by 1,000x just like you stated. Bank accounts would immediately have 1,000x less than the original amount. However, at the same time, the reduced amount of currency would be increased in value by an equal amount, 1,000x. This way, the lesser nominal value of the money still retains the same buying power. This is called the 'neutral value exchange' so that the economy remains stable as the large amount of currency is reduced.

FP

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Fp why do yoi think you know all this please provide links to your knowledge and dont say your intel

JustKorky: I've never said that "I Know All", and I've never claimed to have any inside or secret sources (which is what I assume you mean by "your intel"). You'll find a detailed explanation of my opinion on the IQD and supporting links in this thread.

Thanks for your interest. Let me know if this info doesn't answer your question, JustKorky.

FP

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Captain T, please outline exactly what would happen to a 25,000 IQD. When I attempted to write out an equation, the result just didn't seem right to me. Thanks for the information

CaptainT:

In the event of a redenomination, all paper and electronic currency would be reduced by 1,000x just like you stated. Bank accounts would immediately have 1,000x less than the original amount. However, at the same time, the reduced amount of currency would be increased in value by an equal amount, 1,000x. This way, the lesser nominal value of the money still retains the same buying power. This is called the 'neutral value exchange' so that the economy remains stable as the large amount of currency is reduced.

FP

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I still think they are going to take the 3 zeros off the actual bank notes. For example, a 25K note will be worth only 25 dinars... i went to xe.com and click on the notice which says "Notice: IQD will be redenominated by the end of 2010. More on the Iraqi Dinar"

When you click on the "Iraqi Dinar" link, this is what is says:

The Iraqi Dinar is the currency of Iraq. The currency code for Dinars is IQD, and the currency symbol is د.ع . Below, you'll find Iraqi Dinar rates, a currency converter, Iraqi Dinar News and more. You can also subscribe to our currency newsletters with daily rates and analysis, or take IQD rates on the go with our XE Mobile apps for your iPhone, BlackBerry, or even your regular phone.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq plans to slice three zeros off currency notes."

NOW, if you click on the "Iraq plans to slice three zeros off currency notes." link, this is what you get, an article from Thomson Reuters website published in Feb. 2010. NOW, i have not seen, either on web or news, any news articles that contradicts this article. I have not seen any proof that Iraq will NOT LOP its currency. Of course you hear people like Medic and others that have intel and some confidential sources that say otherwise, but unless someone can actually PROVE this to be false, we should consider that this is what MIGHT HAPPEN. If anyone can provide a REPUTABLE website with an article stating the that Iraq will not LOP, please direct it to me....

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Captain T, please outline exactly what would happen to a 25,000 IQD. When I attempted to write out an equation, the result just didn't seem right to me. Thanks for the information

ghaggerty, I don't know if you meant this question for me because you quoted me and directed your comments to CaptainT. In case you meant me, here is how I think it would go down.

#1: 25,000 dinar is worth roughly $20 USD (25,000 x .0008 where .0008 is the current exchange rate rounded off.)

#2: 25,000 dinar is turned in for a 25 dinar (amount reduced by 1,000x). In USD, 25 is worth 2 cents (25 x .0008)

#3: Exchange rate increases to .8 (increase in value by 1,000x)

#4: 25 dinar is worth $20 USD (25 x .8)

So you see how the original 25,000 dinar and the new 25 dinar would both be worth $20. This is how redenomination works to change currency (almost always larger currency for smaller currency) while maintaining neutral value ($20 value doesn't change between the two currencies).

FP

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Just keep an open mind when you read these articles. Even though they sound so conclusive, whats to say it’s not a smokescreen? It's just like watching the news. Do you really believe everything they tell you?

Okay hypothetically speaking if it LOPS we hope to double or triple what invested depending on the exchange rate and from what others like FP have shared and I think the exchange rate should be high in that scenario. That’s not what I want but it’s not the end of the world and from an investment stand point, I think we may come out pretty good. Now if it LOPS and we just break even well then I might be irritated over that one...

So the LOP for me is my worst case scenario and I have accepted this as a possibility but not the only possibility just because we don’t have all the pieces to the puzzle nor do I believe we are we supposed to.

What I think we take for granted is that we’re not even considering losing any money on this investment. So aside from people over extending themselves and how long it has gone on, why would anyone want to sell their dinars right now? Anyway, I'm sure everyone has done the math over and over what they could POTENTIALLY make off a straight RV or RI and for some that’s all we ever going to look at when we go to town on that calculator!

In the end were just along for the ride hoping to benefit. Personally I believe there are higher forces at work and I'm not talking about God. I would not be surprised if nothing happened till the end of this year or beyond if that's what it took to do an RV. JMO

I still think they are going to take the 3 zeros off the actual bank notes. For example, a 25K note will be worth only 25 dinars... i went to xe.com and click on the notice which says "Notice: IQD will be redenominated by the end of 2010. More on the Iraqi Dinar"

When you click on the "Iraqi Dinar" link, this is what is says:

The Iraqi Dinar is the currency of Iraq. The currency code for Dinars is IQD, and the currency symbol is د.ع . Below, you'll find Iraqi Dinar rates, a currency converter, Iraqi Dinar News and more. You can also subscribe to our currency newsletters with daily rates and analysis, or take IQD rates on the go with our XE Mobile apps for your iPhone, BlackBerry, or even your regular phone.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq plans to slice three zeros off currency notes."

NOW, if you click on the "Iraq plans to slice three zeros off currency notes." link, this is what you get, an article from Thomson Reuters website published in Feb. 2010. NOW, i have not seen, either on web or news, any news articles that contradicts this article. I have not seen any proof that Iraq will NOT LOP its currency. Of course you hear people like Medic and others that have intel and some confidential sources that say otherwise, but unless someone can actually PROVE this to be false, we should consider that this is what MIGHT HAPPEN. If anyone can provide a REPUTABLE website with an article stating the that Iraq will not LOP, please direct it to me....

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How do you lop money that is in a bank account? What if you deposited 1,000,000 iqd of 25iqd bills? Doesn't make since when its a computer number, North Korea did that recently and it was a disaster.

bales, after you deposit currency in a bank account, it makes no difference if you deposited 2x 25,000 IQD notes or 5,000x 10 IQD notes. The original paper that you give the teller are no longer associated with your account. You still have the 50,000, but it is electronic only. If a currency is redenominated, all accounts that hold that type of currency are adjusted as soon as the redenomination is started.

FP

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the lop is gettin old

I agree... but people still ask about it and I was new once too, so I try to help people learn in the same way that others educated me when I asked questions. Try to remember how it was for you when you were new in, uh... March 2010? Apparently, the lop is about four days old for you, at the most.

How does someone who just became a member in the last four days call the lop 'old'? Hmmm...

FP

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How do you lop money that is in a bank account? What if you deposited 1,000,000 iqd of 25iqd bills? Doesn't make since when its a computer number, North Korea did that recently and it was a disaster.

Yeah LOP isnt cool but there is a strong possibility to make money off of it it just wont be the millions you expected. LOP + RV If they did it they would have to do it before they started dishing out the new currency. I am not saying this is what I think or what I want to happen, this is just hypothetically speaking. Im only acknowleding it as a possibility and the issue will not put to rest till something happens. I refuse to allow myself to be locked into a particular position thats not 100% and could cause me to be severely dissapointed and for others, devastated.

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Thanks FP for the information

ghaggerty, I don't know if you meant this question for me because you quoted me and directed your comments to CaptainT. In case you meant me, here is how I think it would go down.

#1: 25,000 dinar is worth roughly $20 USD (25,000 x .0008 where .0008 is the current exchange rate rounded off.)

#2: 25,000 dinar is turned in for a 25 dinar (amount reduced by 1,000x). In USD, 25 is worth 2 cents (25 x .0008)

#3: Exchange rate increases to .8 (increase in value by 1,000x)

#4: 25 dinar is worth $20 USD (25 x .8)

So you see how the original 25,000 dinar and the new 25 dinar would both be worth $20. This is how redenomination works to change currency (almost always larger currency for smaller currency) while maintaining neutral value ($20 value doesn't change between the two currencies).

FP

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Grant it, I don't believe everything i read in the paper or off the internet. I just feel that Iraq will not suffice into paying all these investors (all of us) millions and millions of dollars for their currency if they already have plans in place to LOP their currency.

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