May dinar is equal to the dollar!

[George Hayduke]

Very Scary...very scary

[thesjeske]

I have plenty of Iraqi Dinar so when it does RV, it will be a moment in time to where not one of my family members will ever have to work again.

But I've never heard of a "May Dinar"

Will it RV in May?

May it RV?

May it not?

So what the heck is a May RV?

[Carrello]

One thing is for sure: We have heard this LOP argument before. Yes, it may happen, and yes, would be a bummer. I do believe Zul has it summed with his comments on the purchasing power.

I love a debate, but I am done with this one. If the RV / RD/ LOP / Screw Job were a year out, I would get into it, but we are so close, I am going to wait and see. No, it is not because I do not want to listen to the "reality" of it. I am bored with it. I am bored with the incompetent rags referred to as news agencies and their mail room staff acting as journalists, and we have LOP again.

DinarDana, I think you are right. Let's drink to it! I am going to break out the Two Buck Chuck and a FlexStraw, grab the remote, and watch a movie.

Bada bing!

[George Hayduke]

DinarDana, I think you are right. Let's drink to it! I am going to break out the Two Buck Chuck and a FlexStraw, grab the remote, and watch a movie.

Bada bing!

May I suggest 'Three Days of the Condor' ?

[zigmeister]

One thing is for sure: We have heard this LOP argument before. Yes, it may happen, and yes, would be a bummer. I do believe Zul has it summed with his comments on the purchasing power.

I love a debate, but I am done with this one. If the RV / RD/ LOP / Screw Job were a year out, I would get into it, but we are so close, I am going to wait and see. No, it is not because I do not want to listen to the "reality" of it. I am bored with it. I am bored with the incompetent rags referred to as news agencies and their mail room staff acting as journalists, and we have LOP again.

DinarDana, I think you are right. Let's drink to it! I am going to break out the Two Buck Chuck and a FlexStraw, grab the remote, and watch a movie.

Bada bing!

I hear ya on that one....but the one thing I do not understand is why do they keep coming back over and over and over to enlighten us? Why? We certainly know it could happen.

[unirod]

You are wasting your time and effort, we have all heard this before.

My link

And that is one of the many discussions over the years of posts on this board. People are very well educated on the subject of RD. Now what more can you bring to the table besides Lop talk?

Zig,

I agree the LOP talk is stupid reasoning(my words) How can the 10 to 1 or 1000 to 1 be explained when it comes to NOT adversly effecting the values on the ISX?Or how can the electronic Dinar values be explained? If you lop the currency then it is effecting other values. Banks are effected in their valuation if you screw with the value of deposits, and the list of complications go on. Iraq is not like any of these other country's the LOP'rs mention. Their is no model that compares to Iraq in our lifetime.

[sxsess]

Zig,

I agree the LOP talk is stupid reasoning(my words) How can the 10 to 1 or 1000 to 1 be explained when it comes to NOT adversly effecting the values on the ISX?Or how can the electronic Dinar values be explained? If you lop the currency then it is effecting other values. Banks are effected in their valuation if you screw with the value of deposits, and the list of complications go on. Iraq is not like any of these other country's the LOP'rs mention. Their is no model that compares to Iraq in our lifetime.

LOP is dead. It is not even an issue now. Anyone that thinks so needs to sell their dinar. The CBI has been in the process of reducing the money supply in order to RV, plan and simple. If you listen to Breitling's show he explains this better than anyone I have heard. He just confirms what the CBI has been doing for a while now. RV will happen this year.

[Spud]

LOP is dead. It is not even an issue now. Anyone that thinks so needs to sell their dinar. The CBI has been in the process of reducing the money supply in order to RV, plan and simple. If you listen to Breitling's show he explains this better than anyone I have heard. He just confirms what the CBI has been doing for a while now. RV will happen this year.

After listening to Breilngs show for the last year I would have to agree. Seems like everything he has been talking about is unfolding before our eyes. ESPECIALY after the CBI articles that confirm they have been (past tence) reducing the money supply.

[SgtFuryUSCZ]

***///

Can ANYONE pleeeeez tell me what this means?....

"...pegged to GBP.86 / 1.33USD..."

(scrawled in notebook of someone I play golf with. looked familiar...)

[jmw]

I have decided to breakdown this article word by word, line by line so even a lopster can understand it.

I personally believe no lop even after reading this article several times...JMO and will not be answering any questions at this time....thank you all for coming....

:lol:

Whether you "believe" it or not....the article is clearly describing a redenomination...you can rub it in all the RV "i'm going to be rich" dust you want to...but if you don't think it is talking about a redenomination then you don't really have any idea what is going on.

[cbs71]

And if anyone believes every article that they read, then they too, don't know what's going on.

Watch what they do and not what they say.....

[SgtFuryUSCZ]

***///

hey, hey, hey! stop fighting and tell me what that gimmick is I saw in the guy's book!

He's the Know-It-All of our group and it HAS to mean something!

Pitch in here, so I know where his head is before we tee off again tomorrow!

[zigmeister]

On the link I posted there were interesting discussions, but really it was the very same discussions on this thread, just different posters except for Keep.

dog53 posted an article which I thought was interesting. Pretty much detailing the countries in this thread.

Here you go lop/redenomination Same thing

Planned rupiah redenomination for national pride?

Moch. Doddy Ariefianto, Malang | Thu, 04/07/2011 10:44 AM | Opinion

A | A | A |

One important aspect of the currency bill that is being debated by the House of Representatives is redenomination.

The issue, raised by Bank Indonesia last year, has drawn controversy, although the spirit of the policy is to increase national “pride” in our currency, the rupiah.

The rupiah is one of the “cheapest” currencies in the world, with denominations reaching 100,000, second only to Vietnam’s dong, which has a 500,000 note. We would see if the advantage of this complex policy is justified.

Redenomination is a policy to change the denomination of a currency at particular ratio (Dogarawa, 2007). In most cases, redenomination is conducted only by eliminating a number of zeros in the old denomination. This change does not alter purchasing power; it is purely a matter of rescaling.

In a disclosed plan, Bank Indonesia (BI) will replace the current Rupiah with a new currency at a ratio of 1 to 1,000.

A cellular phone voucher which now costs Rp 100,000, for example, would be valued at Rp 100.

This process, of course, needs a transition period, in which all goods in the economy will have two prices: one for old rupiah and one for new rupiah.

The concept is really simple and many countries have adopted it. Since 1960, there have been 70 redenomination episodes (Moseley, 2005), including Turkey (2005), Romania (2005), Zimbabwe (three times between 2006 and 2008) and Brazil (1994).

Redenomination is usually conducted for two reasons: First, if an economy experiences high inflation and second in the case of a currency union. In most cases redenomination follows high and chronic inflation.

Turkey, for example, experienced almost 100 percent annual inflation in the 1990s before opting for redenomination. The accumulation of such a high inflation rate caused regular prices to reach astronomical levels. It was not surprising that when redenomination took place in Turkey, six zeros were removed from the currency.

Indonesia had a similar experience in 1965. After years of macroeconomic mismanagement, inflation reached 1,136 percent. Redenomination was performed, and the new Rp 1 replaced Rp 1,000 of the old currency.

The most important benefit of redenomination is restoring the credibility of policy makers. Through the policy, authorities send a signal that past macroeconomic management was wrong: That there were past mistakes but from now on the macroeconomic management will be more prudent.

Another advantage of (successful) redenomination is convenience. Most humans cannot deal in calculations that involve too many digits. We can imagine the hard time that a cashier or bank teller would have while handling currencies whose denominations reached billions (nine zeros). Even electronic systems could experience errors or crash if forced to handle transactions with too many digits.

It should be noted, however, that redenomination is a mere signaling instrument. It could succeed or fail to achieve its original goal. If a regime has entirely lost public confidence, a series of redenominations would not have any impact.

The Zimbabwe Central Bank performed redenominations four times (4th Zimbawe dollar) between 2002 and 2008, but annual inflation remained out of control. The bank gave up and since April 2009, Zimbabwe has adopted the South African rand and US dollar as a means of exchange.

The implementation of redenomination could impose a significant cost on a state. The principal cost is the adjustment cost.

BI has planned for 2013-2018 to be a transition period when both the old and new rupiah will be

applicable. In this period, every business player should display price tags using both the new and old currencies.

With millions different kinds of goods and services available, the cost of this adjustment will be high. In addition, enterprises should accommodate financial reporting / accounting in both currencies.

Another problem may arise due to coordination failures. It is possible that after the redenomination the new price of certain goods is not the same as it used to be.

This condition would most likely arise when market competition is not perfect because of the presence of monopolistic and oligopolistic practices. There would be a particular group of society that loses because of the redenomination.

While it must be admitted that the current ratio is not ideal, it is not psychologically disturbing either.

Inflation is well managed and has hovered below two digits for the past five years. It could be said that the government has succeeded in creating an image and reputation of prudent macroeconomic management.

No complaints have been heard of the number of digits in the currency, either. Therefore we need to question if this policy is necessary to improve the national image.

While it is not wrong to improve this image, all necessary costs of policy implementation should be calculated beforehand. Policy makers need also to answer if redenomination is a feasible means to reaching a better currency standing.

The most important benefit of redenomination is restoring the credibility of policy makers.

The writer is the head of the Center for Business and Economics Studies, Ma Chung

University, Malang.

0

Read more:

Also somewhere in the thread it was mentioned, in the case of redenomination a formal report was always submitted to the IMF, WB, in country financial institutions, and the public at large. This was always done months in advance to all so they could prepare.

As far as I know Iraq has not submitted a formal report to the IMF or WB for starters. Something to think about.

[SgtFuryUSCZ]

***///

Zig - that's deep! AND makes sense.

[lotsofdinar]

What I find amusing is the parsing of the word "delete" when whatever word is being translated as "delete" seems to be translated in several ways. Whatever you may have decided that it means, there is only one meaning when it has been applied to countries who RDed in the past, and that is removing zeros from the currency. Any other meaning than what has happened many times before is just magic thinking.

[zigmeister]

***///

Zig - that's deep! AND makes sense.

One thing for sure Sarge, the pre-cursor signs Iraq is serious about this has not occurred. Everything is talk, as Carrello has stated these articles are cut and paster translations. No formal heads up to the IMF or WB. They have to state reasons to do a re denomination and it can't be because we feel like it.

[MrDinarman]

Zig,

I agree the LOP talk is stupid reasoning(my words) How can the 10 to 1 or 1000 to 1 be explained when it comes to NOT adversly effecting the values on the ISX?Or how can the electronic Dinar values be explained? If you lop the currency then it is effecting other values. Banks are effected in their valuation if you screw with the value of deposits, and the list of complications go on. Iraq is not like any of these other country's the LOP'rs mention. Their is no model that compares to Iraq in our lifetime.

Tell that to the countless other countries who've been successful with it. It can be done.

[MrFnHappy]

***///

Can ANYONE pleeeeez tell me what this means?....

"...pegged to GBP.86 / 1.33USD..."

(scrawled in notebook of someone I play golf with. looked familiar...)

Just a guess, but looks like the Euro.....current rate is $1.317

.86 of 1 GBP = 1.353 at today's rates.

Might have to retract that guess because of the "pegged to GBP" part

Edited February 12, 2012 by MrFnHappy

[keepmwlknfny]

Also somewhere in the thread it was mentioned, in the case of redenomination a formal report was always submitted to the IMF, WB, in country financial institutions, and the public at large. This was always done months in advance to all so they could prepare.

As far as I know Iraq has not submitted a formal report to the IMF or WB for starters. Something to think about.

Very good point Zig.....we havent seen anything as of yet in regards to what your saying....at least not yet.....that would be something to keep an eye open for!

It could be one of the keys to watch for to see where this investment is going to go.....which also brings up the question that if Iraq hasent approved this plan yet officially then we wouldnt see anything yet as well....but apparently they are done with phase 1 of this project?? Could they prepare for the project without it being approved?

[SgtFuryUSCZ]

Just a guess, but looks like the Euro.....current rate is $1.317

.86 of 1 GBP = 1.353 at today's rates.

Might have to retract that guess because of the "pegged to GBP" part

***///

Thanks, man... Now I have to figure out why this cat has this in his notebook....Hmnnn...

[pocono]

Very good point Zig.....we havent seen anything as of yet in regards to what your saying....at least not yet.....that would be something to keep an eye open for!

It could be one of the keys to watch for to see where this investment is going to go.....which also brings up the question that if Iraq hasent approved this plan yet officially then we wouldnt see anything yet as well....but apparently they are done with phase 1 of this project?? Could they prepare for the project without it being approved?

Not sure if a formal plan needs to be presented but the IMF "expressed support" for the delete the zeros plan back in Jan.of 2011...the article can be found in "the currency newshound files..

[zigmeister]

Very good point Zig.....we havent seen anything as of yet in regards to what your saying....at least not yet.....that would be something to keep an eye open for!

It could be one of the keys to watch for to see where this investment is going to go.....which also brings up the question that if Iraq hasent approved this plan yet officially then we wouldnt see anything yet as well....but apparently they are done with phase 1 of this project?? Could they prepare for the project without it being approved?

What has to be approved by Parliament, from my understanding is printing of new currency right? So far Parliament has voiced their reticence on this subject. CBI can do what they want but if they do not have backing from the government it will be a fight all the way, and probably not a successful RD. And no new currency printed. That in itself is a hindrance for an official RD, if everyone is not on the same page, it's doomed.

The other countries have had their government backing.

Zimbabwe RD 3 or 4x's......they pretty much gave up and now are using the dollar for the most part. Japan has talked about re denomination for years, but have never gone down the road.

Maybe CBI is not trying too hard......just some thoughts.

[keepmwlknfny]

Not sure if a formal plan needs to be presented but the IMF "expressed support" for the delete the zeros plan back in Jan.of 2011...the article can be found in "the currency newshound files..

You dont happen to have that specific article availible do you?

What has to be approved by Parliament, from my understanding is printing of new currency right? So far Parliament has voiced their reticence on this subject. CBI can do what they want but if they do not have backing from the government it will be a fight all the way, and probably not a successful RD. And no new currency printed. That in itself is a hindrance for an official RD, if everyone is not on the same page, it's doomed.

The other countries have had their government backing.

Zimbabwe RD 3 or 4x's......they pretty much gave up and now are using the dollar for the most part. Japan has talked about re denomination for years, but have never gone down the road.

Maybe CBI is not trying too hard......just some thoughts.

Yea the parliament would have to approve issuing a new currency so your right, they might not be in a hurry to do anything!

[pocono]

You dont happen to have that specific article availible do you?

Yea the parliament would have to approve issuing a new currency so your right, they might not be in a hurry to do anything!

Keep...no I don't...it's in the delete the zeros archive and I found it by searching CBI/IMF...read it this morning...

I think everyone invested in this should read all the articles in the "zeros" archive....taken as a whole it helps clear up any poor translations and misconceptions..

[MrFnHappy]

Not sure if a formal plan needs to be presented but the IMF "expressed support" for the delete the zeros plan back in Jan.of 2011...the article can be found in "the currency newshound files..

I also read that, in fact, I think there have been several articles mentioning IMF support.