Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Good News about deleting Zeros


Recommended Posts

The only benefit the citizen will have is ease of use........:D but CBI and Finance Committee also keep mentioning increase purchasing power of the CITIZEN......and that means the ABILITY to buy more. Since value neutral event (LOP) is not going to give them that ABILITY......i guess CBI is not talking about LOP then.

Yes, purchasing power! This does not come from the local exchange, but the foreign exchange rate. Yes neutral in the local economy, this is what it looks like, not what it feels like when they import goods and services.

  • Upvote 1
Link to post
Share on other sites
  • Replies 218
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

Iraq is working on a project to delete the zeros from the currency do you not understand what currency is. if they said the exchange rate it would be what you guys are saying

it means deletion of the zeros on the currency not the currency rate

i would agree with you guys if there were to say Remove zeros from the Currency Exchange rate but it does NOT

As long as the Dinar is pegged, Iraq has to back any RV 100 percent with its foreign reserves. Everything else is just conversation.

Wrong again...China has 4.8 Trillion narrow money :D but their reserves is only 3,316 ( as at 12/31/2011 est) ~ Reserves of foreign exchange and gold

That's more than a trillion dollar diff. :D

*RMB is pegged

Edited by zul
Link to post
Share on other sites

China has been messing with their currency for years to benefit trade. Bad example.

How about you name a country that backs its currency 100% with reserves....you cant use a country involved with the Arab League. Iraq made the choice to work with the IMF for funding and will use a westernize way of banking. Go ahead and do your homework....the light should go on!

Edited by brandedbabe
  • Upvote 2
  • Downvote 1
Link to post
Share on other sites

China has been messing with their currency for years to benefit trade. Bad example.

they are messing with their value.......but they are still a pegged currency. And right now..not 100% supported by their reserves. :D.

Link to post
Share on other sites

they are messing with their value.......but they are still a pegged currency. And right now..not 100% supported by their reserves. :D.

Backing a currency 100% is an Arab way of banking...in the beginning Iraq had a meeting with the Arab League and was promised funding from the league to help Iraq deal with its debt. They picked the IMF....IMF is ran by the U.S.A....even Shabbs has a western education. Your still new in my book but before you post again you might want to read up on Scooters post they help!

Backing a currency 100% is an Arab way of banking...in the beginning Iraq had a meeting with the Arab League and was promised funding from the league to help Iraq deal with its debt. They picked the IMF....IMF is ran by the U.S.A....even Shabbs has a western education. Your still new in my book but before you post again you might want to read up on Scooters post they help!

Brandedbabe kicks the cat and goes to sleep!

  • Upvote 1
  • Downvote 1
Link to post
Share on other sites

As long as the Dinar is pegged, Iraq has to back any RV 100 percent with its foreign reserves. Everything else is just conversation.

not sure what you mean by this, but just because it is pegged does not mean they have to back it 100% with reserves, but this is a mute point and frankly just does not matter in the over all scheme of things. If Iraq were to RV, then it would be a free market increase in the exchange rate, which means it will no longer be pegged. Iraq can more then afford to pay off people like us without ever touching their reserves, its called oil. This thing could swing either way and there are arguments on both sides of the debate and both can be convincing. You have taken the stance that RD is the only possibility, and ignore the other side completely now and why? There is very much the possibility that this will go exactly as we want it to. May not be when, and it will not be in the form of some overnight huge change on the CBI like everyone thinks it will, but it can and I still believe will. Lighten up on trying to get everyone to believe it will lop, and take a closer look at why it won't.

Link to post
Share on other sites

Backing a currency 100% is an Arab way of banking...in the beginning Iraq had a meeting with the Arab League and was promised funding from the league to help Iraq deal with its debt. They picked the IMF....IMF is ran by the U.S.A....even Shabbs has a western education. Your still new in my book but before you post again you might want to read up on Scooters post they help!

Brandedbabe kicks the cat and goes to sleep!

BB, I was talking about rmb.....when i say their money supply is not 100% backed by their reserves.

Anyway...for Arab countries, Kuwait and Saudi Arabia are 100% backed by their reserves. But i cannot say the same for countries like Oman, UAE, Qatar and Bahrain. :D

  • Upvote 1
Link to post
Share on other sites

Glad your here Keep something has been bothering me about having two Dinars in circulation..

I will give the lower demons a value of 1dinar-1usd for my thought process....So they have said two currencies co-existing which is not two complicated considering the markets are already priced for the dollar. Here is the problem I am having....right now the dinar is backed by the CBI reserves (60 billion) and that is what give us the exchange rate of 1166. The CBI bank has stated an massive amount of hard currency amounting around 30 trillion and if you remove "000" off those notes you essentially have 30 billion. Now lets say they print the Newer dinar what is backing this currency? It essentially has to have a hidden backing of reserves if they are looking to replace the currency we hold...even if its a two year plan.

Here is what I mean....

30 trillion dinar -60 billion reserves.

Then they have to add a currency and give it power through reserves before introducing it in circulation in order to dedollarize the country.

So they print 30 billion new lower dinar....what gives it spending power?

This is how it was explained to me through a family member who has worked for government....its not possible. Their would be three currencies Co existing in your scenario....because you can't forget the dollar. You can't add without subtracting. My family member said their would be an exchange from our dinar to the lowers that are part of the 30 trillion they have printed and being held most likely in the U.S.

This is h

Can't forget the dollar is a great point!! :D

Link to post
Share on other sites

I don't mind the Lopsters...to be honest with everyone I would not have studied this investment as hard as I have and would have not approached my family member about the dinar if everything was a "sure thing". I feel comfortable now about were we are and the money I have invested.....I just hope I am right because of the amount of time I have invested.

I want everyone to know their is a bill in Congress about insider trading....if you are working or have worked for the Congress or Senate you might want to read up on it....

Not sure if it's the same bill you are referring to, but there is one in congress right now which will say that our legislators can't use insider knowledge to make money any more than we can. As you all know, congress has quite often exempted itself from laws they make to govern us "little people," such as health insurance, and of course, insider trading, such as Nancy Pelosi making obscene profits recently based on "what she knew" that most Americans didn't know.

BB, I was talking about rmb.....when i say their money supply is not 100% backed by their reserves.

Anyway...for Arab countries, Kuwait and Saudi Arabia are 100% backed by their reserves. But i cannot say the same for countries like Oman, UAE, Qatar and Bahrain. :D

I hope that cat doesn't come after brandedbabe while she's sleeping. Cats can get those claws in pretty deep and pretty fast when they have a head start. lol

Link to post
Share on other sites

At this point, Iraq doesn't have the reserves to back a significant RV. They have two viable options: maintain the status quo or RD the currency. Either of those options works for me.

Heres the question to ask yourself. do you believe the cbi has drastically reduced the money supply???? Thats the golden ticket. if they have, a rv will happen. if the cbi hasnt, and theres still 30 trillion dinar, the cbi will probably rd. the exciting part, is there was an instrument in place that COULD have withdrawn trillions of dinar.

The cbi is talking the usual rd in the propaganda campaign. no questions. but look at some of the.key words that show up from time to time, like lowering inflation or increasing purchasing power. if people dont feel the money supply has been drastically reduced, then they should reconsider this investment.

  • Upvote 5
Link to post
Share on other sites

Heres the question to ask yourself. do you believe the cbi has drastically reduced the money supply???? Thats the golden ticket. if they have, a rv will happen. if the cbi hasnt, and theres still 30 trillion dinar, the cbi will probably rd. the exciting part, is there was an instrument in place that COULD have withdrawn trillions of dinar.

The cbi is talking the usual rd in the propaganda campaign. no questions. but look at some of the.key words that show up from time to time, like lowering inflation or increasing purchasing power. if people dont feel the money supply has been drastically reduced, then they should reconsider this investment.

NOW THATS DA TRUTH!!!

Link to post
Share on other sites

Heres the question to ask yourself. do you believe the cbi has drastically reduced the money supply???? Thats the golden ticket. if they have, a rv will happen. if the cbi hasnt, and theres still 30 trillion dinar, the cbi will probably rd. the exciting part, is there was an instrument in place that COULD have withdrawn trillions of dinar.

The cbi is talking the usual rd in the propaganda campaign. no questions. but look at some of the.key words that show up from time to time, like lowering inflation or increasing purchasing power. if people dont feel the money supply has been drastically reduced, then they should reconsider this investment.

truthful are you trying to make me use all my pluses on you... :D ....I'll buy you drinks too, just let me spread my pluses out to others but when you keep talking like this I have no choice but to give them to you... :lol::lol:;)

  • Upvote 2
Link to post
Share on other sites

truthful are you trying to make me use all my pluses on you... :D ....I'll buy you drinks too, just let me spread my pluses out to others but when you keep talking like this I have no choice but to give them to you... :lol::lol:;)

Im starting to turn the corner. thanks for the comment

  • Upvote 1
Link to post
Share on other sites

Iraq has 60 triillion dinar and only 60 billion in foreign reserves and you don't think there was a period of hyper-inflation?

Look, Iraq has a pegged currency. That means that to RV to 1:1 they would have to be able to back from their reserves that 1:1 exchange. That means they would need to increase their reserves to $60 trillion. That's the way it works. There is no way Iraq can do that.

I also feel they need to have value to support the RV but, I dont believe the sole source of backing comes from the foreign reserves. The true value of the currency is represented in natural resources, which as of right now, is not represented in the current "dirty float" rate. IMO, foreign currency reserves are being used as a tool to reduce the money supply and manage the current exchange rate. Do they need to have sufficient reserves in place to help support an RV? Yes, I believe so but, natural resources are what will back a hard RV at 1-1, not reserves. Food for thought.

Link to post
Share on other sites

Backing a currency 100% is an Arab way of banking...in the beginning Iraq had a meeting with the Arab League and was promised funding from the league to help Iraq deal with its debt. They picked the IMF....IMF is ran by the U.S.A....even Shabbs has a western education. Your still new in my book but before you post again you might want to read up on Scooters post they help!

Brandedbabe kicks the cat and goes to sleep!

BB, you are smart and curious, a good combination. But your arrogance is stunning, and ruins the picture you could paint. Even cats only have so many lives.

Link to post
Share on other sites

The bigger factor in investor confidence would be stability....not if a country is going to redenominate....Iraq quadrupled the numbers for foreign investments the past couple years....I think last year they brought in like 70 or so billion dollars, the year before that it was like 40 billion.....Iraqs estimated GDP was like 110 billion or so for 2010....so foreign investment in Iraq is flurishing and makes up for the majority of money coming into the country it seems....

Does not appear that what happens to the currency is a deal breaker here.....either way this goes a stronger dinar is the end result...

I think the increase foreign investments was strictly into the energy sector. Putting democracy in that region helped widen interests of who can receive contracts, drill, etc. More oil fields have been opened up and people are chomping at the bit to get access to them. The economy could be in the dumps and rapidly declining & foreign investments for the energy sector will still be on the rise. Sort of a no-brainer!

However, when the people of the region have no money, funds, jobs, other westernized businesses will not have as much of a desire to invest time & effort into a country where the people can't afford their goods/services. So, would a R/D improve that? No... A R/V maybe would however.

If I was a CEO of a department store, electronics store, etc. I wouldn't look to expand into their country unless their people had money. I would have an eye on it, and think it would be a 10-15 year down the road project, but, at the moment & any foreseeable future with a R/D looming, I wouldn't be interested.

Wealth has to be put back to the people in some sort of fashion to help draw in foreign investments that would cater to them. Its a give & take sort of system... Done correctly, the economy could boom..

Fast job growth, economy on the uprise, stability, etc.

Darin am I understanding you correctly, in all redominations the value does not appreciate in value until the old is scopped up. According to Iraq this process may take two years to draw in the old currency, so in the meantime the value of the new currency really would not be of much help for Iraq economically would it?

That is what seems to be the going norm for most R/D scenarios.

It may be quite likely that the central banks that processed a R/D wanted to wait to raise the value after the expiration & retiration of old notes because anyone holding the new notes is unlikely to want to exchange out for foreign currency as likely. It also may be in higher demand at that point, thus creating a better market for it.

If you look at the scenario like where each note takes a small % of a pool of money to back it... For each note not exchanged in time, the small % that goes to the existing notes (new notes) would increase.

Also, it is easier for a central bank to get an accurate # of what is in circulation since they woudl only have to account for the new notes. Their books would be cleaner (no mathematical errors)

It would also be like a way of speculators not gaining any more value than current market prices.. Most central banks, as it appears, hate to pay out to speculators.. Well, I can totally see that, because they are a threat. They buy low & sell high.. Too many of them could be a bad thing..

You know that a lot of the time they take quotes directly from Saleh and Shabibi about redenominating. When that happens you normally have two currencies co-existing at the same time....the older currency holds the same value, and the new currency carries a higher value. In the marketplace they have two prices listed...one in the old currency, and one in the new....

More than just two prices..

Now they'll have to have USD pricing, Euro pricing, Old IQD pricing, New IQD pricing, and so forth.. For all their products. Talk about a headache for a business owner.

Take about a headache for a customer... I know what I would do in that situation, convert to USD & wait the project out.. At least I would feel comfortable holding USD because the value would be stable & I may be able to spend it nearly anywhere.

I don't think a R/D will really help de-dollarize that much.. It may make transactions more simple for the mathematically challenged.

Simple in terms of accounting, bookkeeping, etc. Which some argue in due time will lead to a higher demand due to the ease.

  • Upvote 2
Link to post
Share on other sites

I think the increase foreign investments was strictly into the energy sector. Putting democracy in that region helped widen interests of who can receive contracts, drill, etc. More oil fields have been opened up and people are chomping at the bit to get access to them. The economy could be in the dumps and rapidly declining & foreign investments for the energy sector will still be on the rise. Sort of a no-brainer!

However, when the people of the region have no money, funds, jobs, other westernized businesses will not have as much of a desire to invest time & effort into a country where the people can't afford their goods/services. So, would a R/D improve that? No... A R/V maybe would however.

If I was a CEO of a department store, electronics store, etc. I wouldn't look to expand into their country unless their people had money. I would have an eye on it, and think it would be a 10-15 year down the road project, but, at the moment & any foreseeable future with a R/D looming, I wouldn't be interested.

Wealth has to be put back to the people in some sort of fashion to help draw in foreign investments that would cater to them. Its a give & take sort of system... Done correctly, the economy could boom..

Fast job growth, economy on the uprise, stability, etc.

That is what seems to be the going norm for most R/D scenarios.

It may be quite likely that the central banks that processed a R/D wanted to wait to raise the value after the expiration & retiration of old notes because anyone holding the new notes is unlikely to want to exchange out for foreign currency as likely. It also may be in higher demand at that point, thus creating a better market for it.

If you look at the scenario like where each note takes a small % of a pool of money to back it... For each note not exchanged in time, the small % that goes to the existing notes (new notes) would increase.

Also, it is easier for a central bank to get an accurate # of what is in circulation since they woudl only have to account for the new notes. Their books would be cleaner (no mathematical errors)

It would also be like a way of speculators not gaining any more value than current market prices.. Most central banks, as it appears, hate to pay out to speculators.. Well, I can totally see that, because they are a threat. They buy low & sell high.. Too many of them could be a bad thing..

More than just two prices..

Now they'll have to have USD pricing, Euro pricing, Old IQD pricing, New IQD pricing, and so forth.. For all their products. Talk about a headache for a business owner.

Take about a headache for a customer... I know what I would do in that situation, convert to USD & wait the project out.. At least I would feel comfortable holding USD because the value would be stable & I may be able to spend it nearly anywhere.

I don't think a R/D will really help de-dollarize that much.. It may make transactions more simple for the mathematically challenged.

Simple in terms of accounting, bookkeeping, etc. Which some argue in due time will lead to a higher demand due to the ease.

I actually do not think that currently holding on to the USD will help IRAQ strengthen their economy. They have no control over the USD and they seem to be in a better position to control their economy based on their resources and world interest in that region. So although they seem to be using USD right now it isnt in their interest to continue to do so. Even for trade and internal stability it is almost essential they RV and continue to expand as they have been. This situation is important in that they serve as an example to the ME of what we have imposed on them. Not that they didnt need us, but right now we are heavely invested in making sure they are stable. If you think we (the USA) and those in a position to ensure success in IRAQ are not doing all they can you are wrong. I believe the plan set forth a while back is in full motion and that the few who know what and when are positioned and awaiting the proper time to reap maximum benefit.

I hope it RVs soon...

Peace.

  • Upvote 1
Link to post
Share on other sites
Guest
This topic is now closed to further replies.
  • Recently Browsing   0 members

    No registered users viewing this page.




  • Popular Now

  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.