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Pacster Post Part (1), Ennorste Help!!

serpico007

By serpico007,
in Dinar Rumors

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War Eagle Newbie

War Eagle

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I have one suggestion to make.Originally there were 9 billion dollars of dinars printed at the rate of 2,000-1,or 18 Trillion dinars. Since that time the dinar has ncreased in value by about 40%,making the total roughly 25 trillion. Now,we know there were 14 denoms printed but only 9 of them put into the market.Now,we also know the remaining are the lowere denoms-20/25,10,5,1,and probably 1/2.Now,here's my thoughts;What if the lower denoms are as much in value as the larger denoms-in other words,only 12 1/2 trillion are outstanding. The lower denoms would still be counted in the M2. Now,if this is the case the CBI would merely be swapping the lower for the higher denoms,and at the same time reducing the amount in circulation by 1/2,or 12 1/2 trillion.Then,if they lopped,they could back their currency 100% up to 5 or$6. Just a thought!!!!

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chas32 Newbie

chas32

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A deductive argument is sound if and only if it is both valid, and all of its premises are actually true. Otherwise, a deductive argument is unsound. According to the definition of a deductive argument, the author of a deductive argument always intends that the premises provide the sort of justification for the conclusion whereby if the premises are true, the conclusion is guaranteed to be true as well. Loosely speaking, if the author's process of reasoning is a good one, if the premises actually do provide this sort of justification for the conclusion, then the argument is valid.

There are two ways to value a currency paragraphs 1 and 2 explain what is used in practice and the last sections shows modeling in currency valuation to compare what is used in practice. If we follow the rule of a deductive argument the above article fails in all respects. The correct formulas have to be applied

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pegsue Rookie

pegsue

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Serpico007 thanks for you hard work but you only applied the actual "cash on hand" as it were. Where do the vast natural resources figure in your equation?

Also in your statement:

The international community gets a 324% return on the amount they have invested, and in this economy that

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westy33567 Newbie

westy33567

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Chas, maybe you should give us a few scenerios that you think might occur. It seems you have a great grasp on economics. I would be helpful for us less fortunate to have such a great grasp on this subject. Upon those scenerios maybe we could try to isolate or narrow them down each one as events unfold. Just thinking!

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chas32 Newbie

chas32

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Clues to look for before a revalue takes place

Before a country re-issues or rednominates a currency the public must be educated on the pending event and the government must keep illegal activity down during the exchange. This education process of both public and government is needed so all parties understand the reasoning behind a re-issue, revalue, or redenomination of the dinar. With this understanding the direction Iraq take will come from their actions of educating the Iraq public and GOI, which should be found in articles coming out of Iraq. Another good place to look for a new rate is in the Letter of Intent Arrangements by the IMF and country receiving the loan. This will give details of the loan, but also can be used to study past loans: like Turkey the Letter of Intent listed exactly, that Turkey had to Lop 6 zeros from their currency.

http://www.imf.org/external/np/exr/facts/howlend.htm

Some claim inflation will take hold of Iraq after the IQD enters the Forex market, this not so, if Iraq takes a IMF loan they can use the explanation below.

Exchange Control

Governmental restrictions on private transactions in foreign money or claims on foreign money. Residents are required to sell foreign money coming into their possession to a central bank or specialized government agency at exchange rates set by the government. The chief function of most systems of exchange control is to maintain a favorable balance of payments. .

Types of controls that governments put in place to ban or restrict the amount of foreign currency or local currency that is allowed to be traded or purchased. Common exchange controls include banning the use of foreign currency and restricting the amount of domestic currency that can be exchanged within the country.

Typically, countries that employ exchange controls are those with weaker economies. These controls allow countries a greater degree of economic stability by limiting the amount of exchange rate volatility due to currency inflows/outflows.

The International Monetary Fund has a provision called article 14, which only allows countries with transitional economies to employ foreign exchange controls.

http://www.answers.com/topic/foreign-exchange-controls

From CIA World Book - 2009

M2- in USD Ratio of M2 covered by-Reserves USD

$10,990,000,000,000 - US - .007 $77,650,000,000

$134,300,000,000 - S.A. - .353 $39,980,000,000

$171,600,000,000 - IS - .330 $56,640,000,000

$26,100,000,000 - Iraq - 1.677 $43,760,000,000

What this ratio means is that reserves can cover Iraq

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