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THE $50,000 DOLLAR BAG OF GROCERIES......


Legolas
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THE $50,000 DOLLAR BAG OF GROCERIES

The last topic went well. Lots of reasonably cordial give and take. It would be nice if it weren’t relegated to a “lop” section where too few of those who need to see it ever go, but at least it’s there for the taking.

Hame55 made the following obviously sarcastic comment, implying that the RD would do nothing to increase the confidence of the Iraqi’s in their money. Let’s consider it carefully:

hame55, on 19 March 2012 - 09:32 PM, said:

"Yes, increase confidence by taking three zeros off the big notes. That would certainly make Iraqis feel better about their money - like I had a bunch of 100 dollar bills, they LOP two zeros and they are now worth a dollar. Yes, yes, RV after RD, but hardly replaces the original 100 bills, does it?"

NOW, ask yourself a few questions:

1) How does removing the 3 zeros and creating a new currency set NOT increase confidence?

Consider: 1) By redenominating the IQD, a new currency is created which is nearly identical in appearance and value to the U.S. Dollar – even BEFORE a potential revalue. The new 1 Dinar note is similar to the 1 Dollar note; the 5 Dinar to a 5 Dollar note; the 10 to a 10; 20 to a 20, etc. Why wouldn’t that immediately increase confidence in their currency and even allow for the replacement of the Dollar in daily use? Their new Dinar is now theoretically every bit as good as the American Dollar, and much more valuable than any country in the region with the exception of Kuwait, and there’s absolutely no legitimate comparison between Iraq and Kuwait. Compare their new currency with Iran - right next door, and they would find that it’s now worth 12 THOUSAND times as much as Iran’s. How does that not create confidence? What’s not to like?

Consider: 2) By redenominating, counting and calculating the currency immediately becomes 1,000 times simpler. Banking is simplified; daily merchant transactions are simplified; and quantity of currency needed is greatly reduced. How does that not increase confidence?

Consider: 3) IF they were to RV without first RD’ing, what use would the 3 zero notes be? Even if they were to RV, they STILL have to redenominate. They need a new currency set without the three zeros, right? Correct me if I’m wrong, but the Iraqi people are extremely poor – in fact the 5th poorest in the world. I think on average they earn the equivalent of $100 per week, or less. They live payday to payday. They don’t possess large amounts of cash, and they don’t trust banks. They likely have much less than 100,000 Dinars in their possession at any given time, and have virtually no savings. Right?

A single 10,000 Dinar note, with an RV to $1 Dollar would suddenly be worth $10,000 DOLLARS – more than they earn in TWO YEARS. TEN of those notes (their normal WEEK’s pay) would now be worth more than they earn in TWENTY YEARS. So they HAVE to RD anyway right? Very few people in the entire country are going to have any use at all for a note larger than $100 Dollars worth – in fact, most of the notes would have to be much smaller.

Consider: 4) IF they were to RV “tomorrow.” Joe Iraqi goes to the store today, and spends FIVE 10,000 Dinar notes to buy a bag of groceries – half of his weekly salary, valued at less than $50 Dollars. Then, he wakes up tomorrow morning and learns that those same FIVE notes, had he kept them until then, would NOW be worth $50,000 DOLLARS instead of the $50 they were worth yesterday. How pissed off is he going to be, and what is he likely to do about it? Is he going to go back to the store with his bag of groceries and demand his money back? Is he going to kill the grocer? Is he going to burn down the CBI for not having TOLD him that his $50 DOLLARS worth of Dinars was going to be worth $50 THOUSAND DOLLARS the following day? Multiple this scenario times 30 million Iraqi citizens, and consider again that the numbers are actually probably much MORE significant. They’re not only going to be angry about the Dinars they gave away YESTERDAY, but ALSO the ones they have given away every day for as far back as they can REMEMBER, right? How can a revaluation like that which we are hoping for happen? Think about it. Think back to the NUMBERS topic from the last topic post. Now add THIS scenario. Even if the NUMBERS work workable, and they very definitely are not, how is there any practical way to make the actual mechanics of the situation work?

They obviously can’t announce a revaluation ahead of time, right? Robbery, murder and mayhem would ensue as everyone tried to collect as many Dinars as possible before the RV event so that they could become millionaires overnight.

And they can’t do it AFTER announcing it, because the ANGER which would ensue would bring down the government and civil war would erupt, as people realize what they COULD HAVE HAD. Salaries aren’t going to change, right? So even with an RV, the vast majority of the people are now going to have virtually the SAME amount of money they had LAST week – it’s just going to be new SMALLER notes with an increased value. MOST importantly – that’s the EXACT SAME THING which would happen with the RD scenario. Nothing changes – they have NEW notes, with the SAME or hopefully slightly higher value than the old three zero notes. Prices are adjusted, removing the three zeros, and life goes on.

The truth is, that the ONLY people who benefit from the RV scenario is US – the investors who hold millions of Dinars, and the very few Iraqi people who have a lot of money – and of course, the politicians. WE, the American infidels who are more likely to be hated by the Iraqis than to be people whom they want to make millionaires. The average Iraqi would be no better off with the RV scenario than he would with the RD. THINK about it very carefully, and you’ll find that it’s true.

Put the “BREAKING IT DOWN” topic and this “$50,000 DOLLAR BAG OF GROCERIES” topic together and consider the logic in both - NOT the emotion, the delusion created by the gurus and pumpers or the greed with which we’ve been viewing this adventure for many years now.

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All very good points. Hats off to you Legolas. I have argued all of these exact points numerous times with family and friends who are fellow dinarians. Like most I got into this investment without much research because I was told it may RV any minute and I better hurry up. Within a week of being invested I felt pretty strongly that it was going to LOP and I would be lucky to break even on my dinar holdings, and this was way before the term "LOP" was coined on these forums. I will hold what I have left from my original investment just in case it does pop (and not poop).. Unfortunately too many out there are so wrapped up in the emotional side of this speculation they can't see the forest for the trees. I wish all the best and hope we get a large return but the more I read and investigate the less likely I see myself becoming wealthy off of this.

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Another spot on post Legolas. Really there is absolutley no way that there could EVER be a 100,000% overnight RV. It is economically impossible. First of all massive hyperinflation would be the only result. Why would any country want that? It is clear that the so called "RV" is nothing more than made up fantasy by dinar pumpers from the get go. It amazes me how many still believe that it is going to happen any day now. It is sad actually.

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Legolas, may I ask you your thought on the exchange rate. Do you feel it will stay around the same 1165-1170 range, even with all the outside investors coming into Iraq? Also, do you think the oil sales will continue to be paid in USD? What about the enormous currency auctions of USD from the CBI? How does all of this change with a RD?

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great post Legolas...this has been one of the arguments that no one seems to be able to overcome....what happens to loans?...what happens to home mortgages?...what happens to a bill that is due but it RV's prior to the due date?...and if you are going to adjust all of these things then at what level?...a 50% increase? a 100% increase?...a 100,000% increase?...and if it continues to climb to you adjust it again?

The RV is an exchange value only...it only affects purchases that are imported...but with a big RV they would have to adjust everything...which can't happen....it can only grow slowly...regardless of the redenomination they continue to discuss...

Thanks again Legolas for putting it together in a way that is easy to follow.

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Legolas, may I ask you your thought on the exchange rate. Do you feel it will stay around the same 1165-1170 range, even with all the outside investors coming into Iraq? Also, do you think the oil sales will continue to be paid in USD? What about the enormous currency auctions of USD from the CBI? How does all of this change with a RD?

Hi Azsunshine. As I've said in previous posts, there's really no way to know what the exchange rate will be. We "hope" that it will increase simultaneously with the RD - IF they finally RD. It certainly seems that they intend to RD from the endless number of media articles confirming it. But they don't HAVE to RD and they don't HAVE to increase the rate.. The GOI could reject both out of hand. The rate could remain as is - artificially fixed at the current rate, and adjusted periodically in small increments as the CBI sees fit. OR, it could be allowed to float against the market. Some articles have suggested that the rate might increase, and others have said that the event will be value neutral. We already know that the Iraqi's can't agree on anything, so the end result remains to be seen.

Personally I think the RD is a done deal - it's just a matter of when. To me, it seems logical that if they want to increase the rate, that would be the best time to do it, in terms of preventing unnecessary confusion among their citizens. But we have no way of knowing. One things is certain - the gurus and pumpers HAVE NO IDEA.

I suspect that there would be changes in the auctions posts RD, but I'm no expert. One would think that a primary goal would be to reduce the use of the Dollar via the introduction of the new IQD with similar values. We just have to wait and see.

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"in fact the 5th poorest in the world"

Put the “BREAKING IT DOWN” topic and this “$50,000 DOLLAR BAG OF GROCERIES” topic together and consider the logic in both - NOT the emotion, the delusion created by the gurus and pumpers or the greed with which we’ve been viewing this adventure for many years now."

Read more: http://dinarvets.com.../#ixzz1pg8wg2Kl

My logic tells me that the CBI has education as part of its plan of 3 phases. We seem to be in phase 2 by all counts here on DV. Education does not have to say the currency will RV; however, as part of the education process, I cannot help but feel 100% certain that citizens are being told the dinar will become much stronger and soon reflect its true value. What that value is (not neccessarily the when) seems to the the ENTIRE POINT of RV speculation and I, for one, think Iraq's currency is not valued properly at its current exchage. Again...every citizen is being educated and this process will be pointing out the future potential of the dinar's strength.

In regards to the poverty...I think you might want to rethink that...or at least help me understand where you got that Iraq is the 5th poorest in the world (I did NOT intend for that to sound snippy, Legolas). The only legit poverty analysis I have seen indicates that, yes, there are certainly very poor people in Iraq; however, only 1/3rd of Iraqi citizens live in poverty. Out of 32million...nearly 10 million is a HUGE portion to be sure. In the U.S. population of nearly 312million...39.8 million are said to live in relative poverty. I think it also wise to consider what these demographics consider poor. Even when my family was demographically poor, our quality of life was actually BETTER BY FAR than most the middle class friends we had outside of medical treatment. Bologna is a poor man's lamb chop.

With that in mind, citizens who are not poor...and especially those who are...will be listening carefully to education announcements about their currency. When the CBI makes statements that they plan to make the dinar a very strong currency, I can promise you...especially the poor will listen. I have been poor...I KNOW the implications of the logical AND the emotional in terms of what a poor citizen might think about the money they just spent on those groceries. My common sense also tells me that I would have bought those groceries knowing that I had been told the same currency I used to buy them would soon be much stronger. My common sense also tells me that I would be eternally grateful if even ONE SMALL 10k note became stronger while still in my possession.

I just dont think that rioting is something that citizens who are poor would do. I do not think Iraqi citizens who are poor would tell the shop owner to repay them for their groceries. I have been poor...you have to understand that does not imply ignorant. That said...even the poorest will have (as the poor in the U.S. often do) a meager nest egg. Those who literally live hand to mouth are probobly far smaller in number inside of that 1/3rd of the poor. Also, I feel certain with the clerics behind them...the poor will be getting (like Kuwaiti citizens) a slice of the pie at some point.

Sorry Legolas...I just don't see a good portion of your argument as probable. I predict that most of the poorest will find a nearly worthless 10k dinar as a "nest egg" and far fewer of them with NO dinar on hand. Even less do I see citizens rioting because they purchases groceries minutes before the announcement and weeks after the education.

Thanks for the thread...was an interesting read but I'm taking a more optimistic view, myself.

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great post Legolas...this has been one of the arguments that no one seems to be able to overcome....what happens to loans?...what happens to home mortgages?...what happens to a bill that is due but it RV's prior to the due date?...and if you are going to adjust all of these things then at what level?...a 50% increase? a 100% increase?...a 100,000% increase?...and if it continues to climb to you adjust it again?

The RV is an exchange value only...it only affects purchases that are imported...but with a big RV they would have to adjust everything...which can't happen....it can only grow slowly...regardless of the redenomination they continue to discuss...

Thanks again Legolas for putting it together in a way that is easy to follow.

Thanks JMW, and you're right.....the devil is in the details, and nobody wants to look at the details. It all sounds easy until you break it down and see all of the issues involved. You ask what happens to mortgages? Great question. An even more interesting one is what happens when one day Joe Iraqi can't buy a "pup tent" with his 25K note, and the very next day he could have bought a "house?" :P

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Hi Azsunshine. As I've said in previous posts, there's really no way to know what the exchange rate will be. We "hope" that it will increase simultaneously with the RD - IF they finally RD. It certainly seems that they intend to RD from the endless number of media articles confirming it. But they don't HAVE to RD and they don't HAVE to increase the rate.. The GOI could reject both out of hand. The rate could remain as is - artificially fixed at the current rate, and adjusted periodically in small increments as the CBI sees fit. OR, it could be allowed to float against the market. Some articles have suggested that the rate might increase, and others have said that the event will be value neutral. We already know that the Iraqi's can't agree on anything, so the end result remains to be seen.

Personally I think the RD is a done deal - it's just a matter of when. To me, it seems logical that if they want to increase the rate, that would be the best time to do it, in terms of preventing unnecessary confusion among their citizens. But we have no way of knowing. One things is certain - the gurus and pumpers HAVE NO IDEA.

I suspect that there would be changes in the auctions posts RD, but I'm no expert. One would think that a primary goal would be to reduce the use of the Dollar via the introduction of the new IQD with similar values. We just have to wait and see.

Thank you for the insight. Have a blessed day! :rolleyes:

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THE $50,000 DOLLAR BAG OF GROCERIES

The last topic went well. Lots of reasonably cordial give and take. It would be nice if it weren’t relegated to a “lop” section where too few of those who need to see it ever go, but at least it’s there for the taking.

Hame55 made the following obviously sarcastic comment, implying that the RD would do nothing to increase the confidence of the Iraqi’s in their money. Let’s consider it carefully:

hame55, on 19 March 2012 - 09:32 PM, said:

"Yes, increase confidence by taking three zeros off the big notes. That would certainly make Iraqis feel better about their money - like I had a bunch of 100 dollar bills, they LOP two zeros and they are now worth a dollar. Yes, yes, RV after RD, but hardly replaces the original 100 bills, does it?"

NOW, ask yourself a few questions:

1) How does removing the 3 zeros and creating a new currency set NOT increase confidence?

Consider: 1) By redenominating the IQD, a new currency is created which is nearly identical in appearance and value to the U.S. Dollar – even BEFORE a potential revalue. The new 1 Dinar note is similar to the 1 Dollar note; the 5 Dinar to a 5 Dollar note; the 10 to a 10; 20 to a 20, etc. Why wouldn’t that immediately increase confidence in their currency and even allow for the replacement of the Dollar in daily use? Their new Dinar is now theoretically every bit as good as the American Dollar, and much more valuable than any country in the region with the exception of Kuwait, and there’s absolutely no legitimate comparison between Iraq and Kuwait. Compare their new currency with Iran - right next door, and they would find that it’s now worth 12 THOUSAND times as much as Iran’s. How does that not create confidence? What’s not to like?

Consider: 2) By redenominating, counting and calculating the currency immediately becomes 1,000 times simpler. Banking is simplified; daily merchant transactions are simplified; and quantity of currency needed is greatly reduced. How does that not increase confidence?

Consider: 3) IF they were to RV without first RD’ing, what use would the 3 zero notes be? Even if they were to RV, they STILL have to redenominate. They need a new currency set without the three zeros, right? Correct me if I’m wrong, but the Iraqi people are extremely poor – in fact the 5th poorest in the world. I think on average they earn the equivalent of $100 per week, or less. They live payday to payday. They don’t possess large amounts of cash, and they don’t trust banks. They likely have much less than 100,000 Dinars in their possession at any given time, and have virtually no savings. Right?

A single 10,000 Dinar note, with an RV to $1 Dollar would suddenly be worth $10,000 DOLLARS – more than they earn in TWO YEARS. TEN of those notes (their normal WEEK’s pay) would now be worth more than they earn in TWENTY YEARS. So they HAVE to RD anyway right? Very few people in the entire country are going to have any use at all for a note larger than $100 Dollars worth – in fact, most of the notes would have to be much smaller.

Consider: 4) IF they were to RV “tomorrow.” Joe Iraqi goes to the store today, and spends FIVE 10,000 Dinar notes to buy a bag of groceries – half of his weekly salary, valued at less than $50 Dollars. Then, he wakes up tomorrow morning and learns that those same FIVE notes, had he kept them until then, would NOW be worth $50,000 DOLLARS instead of the $50 they were worth yesterday. How pissed off is he going to be, and what is he likely to do about it? Is he going to go back to the store with his bag of groceries and demand his money back? Is he going to kill the grocer? Is he going to burn down the CBI for not having TOLD him that his $50 DOLLARS worth of Dinars was going to be worth $50 THOUSAND DOLLARS the following day? Multiple this scenario times 30 million Iraqi citizens, and consider again that the numbers are actually probably much MORE significant. They’re not only going to be angry about the Dinars they gave away YESTERDAY, but ALSO the ones they have given away every day for as far back as they can REMEMBER, right? How can a revaluation like that which we are hoping for happen? Think about it. Think back to the NUMBERS topic from the last topic post. Now add THIS scenario. Even if the NUMBERS work workable, and they very definitely are not, how is there any practical way to make the actual mechanics of the situation work?

They obviously can’t announce a revaluation ahead of time, right? Robbery, murder and mayhem would ensue as everyone tried to collect as many Dinars as possible before the RV event so that they could become millionaires overnight.

And they can’t do it AFTER announcing it, because the ANGER which would ensue would bring down the government and civil war would erupt, as people realize what they COULD HAVE HAD. Salaries aren’t going to change, right? So even with an RV, the vast majority of the people are now going to have virtually the SAME amount of money they had LAST week – it’s just going to be new SMALLER notes with an increased value. MOST importantly – that’s the EXACT SAME THING which would happen with the RD scenario. Nothing changes – they have NEW notes, with the SAME or hopefully slightly higher value than the old three zero notes. Prices are adjusted, removing the three zeros, and life goes on.

The truth is, that the ONLY people who benefit from the RV scenario is US – the investors who hold millions of Dinars, and the very few Iraqi people who have a lot of money – and of course, the politicians. WE, the American infidels who are more likely to be hated by the Iraqis than to be people whom they want to make millionaires. The average Iraqi would be no better off with the RV scenario than he would with the RD. THINK about it very carefully, and you’ll find that it’s true.

Put the “BREAKING IT DOWN” topic and this “$50,000 DOLLAR BAG OF GROCERIES” topic together and consider the logic in both - NOT the emotion, the delusion created by the gurus and pumpers or the greed with which we’ve been viewing this adventure for many years now.

luckily for those who think this will rv, that this is just an OPINION, or guess should i say.

its so funny leg, and you know i have respect for ya, but when pro rv people make an opinion ( not okie, but respectful opinions) you call them idiots, kinda hypocritical dont ya think, maybe you pro rd-ers should be as respectful to others posts, as you are to your leaders (leg) posts.

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luckily for those who think this will rv, that this is just an OPINION, or guess should i say.

its so funny leg, and you know i have respect for ya, but when pro rv people make an opinion ( not okie, but respectful opinions) you call them idiots, kinda hypocritical dont ya think, maybe you pro rd-ers should be as respectful to others posts, as you are to your leaders (leg) posts.

You know what would be really cool?...if you or some one of your "go Rv'ers" could answer these questions...

what happens to loans?...what happens to home mortgages?...what happens to a bill that is due but it RV's prior to the due date?...and if you are going to adjust all of these things then at what level?...a 50% increase? a 100% increase?...a 100,000% increase?...and if it continues to climb to you adjust it again?

The RV is an exchange value only...it only affects purchases that are imported...but with a big RV they would have to adjust everything...which can't happen....it can only grow slowly...regardless of the redenomination they continue to discuss...

...you up to it?

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It would be great if the you would get a life and leave us idiots alone. You are obviously too smart for us. You don't believe in this. You don't seen how it can happen, logically you have demonstrated why it can't happen. Great. WE are proud of you. Why are you wasting your life in here?

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luckily for those who think this will rv, that this is just an OPINION, or guess should i say.

its so funny leg, and you know i have respect for ya, but when pro rv people make an opinion ( not okie, but respectful opinions) you call them idiots, kinda hypocritical dont ya think, maybe you pro rd-ers should be as respectful to others posts, as you are to your leaders (leg) posts.

Sonny1.....I would like to see an RV as much as anybody, but I have a couple of big questions that nobody wants answered....and it appears they don't want them answered because then it would be obvious that an RV of any significance that most desire cannot happen B)

So let me pose the most important question I have to you.....how many dinar are in circulation today?

If the answer is 28 trillion....you know there cannot be an RV of $1 or more, OR do you not know this?

If there is only 2-3 trillion out there, then maybe a 10 cent RV is possible...maybe?

We can debate the merits of my suppositions after you answer my question....if you will? :D

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luckily for those who think this will rv, that this is just an OPINION, or guess should i say.

its so funny leg, and you know i have respect for ya, but when pro rv people make an opinion ( not okie, but respectful opinions) you call them idiots, kinda hypocritical dont ya think, maybe you pro rd-ers should be as respectful to others posts, as you are to your leaders (leg) posts.

Sonny......whom did I call "an idot?" I've stated repeatedly that I welcome ANYONE who can present a legitimate counter argument. But it NEVER comes. What has been stated by ANY of us that is incorrect? And why can't ANY of the "Pro RV'ers ever answer a question? Do you seriously think that a single one of us who presents the RD position WANTS to see the Dinar RD. I promise you, I'd like to see a straight RV as much or MORE than anyone? YOU are one of the biggest RV cheerleaders, and that's fine, but we can never get you to answer. When you present something, and it's proven wrong, you just disappear and come back when it's time for another "opinion." I keep hoping that you are the one who will eventually answer the questions. I just presented a BUNCH of them, and JMW brought even more. We don't need opinions - we need FACTS which support a position. All the "GO RV" crap is just that, unless there are facts to support the enthusiasm. :rolleyes:

Sonny1.....I would like to see an RV as much as anybody, but I have a couple of big questions that nobody wants answered....and it appears they don't want them answered because then it would be obvious that an RV of any significance that most desire cannot happen B)

So let me pose the most important question I have to you.....how many dinar are in circulation today?

If the answer is 28 trillion....you know there cannot be an RV of $1 or more, OR do you not know this?

If there is only 2-3 trillion out there, then maybe a 10 cent RV is possible...maybe?

We can debate the merits of my suppositions after you answer my question....if you will? :D

LOL. Get outta my damn HEAD Tim! :lol: That's twice in a row within seconds.

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That was my illogical rant.

My logical statement is as follows. A lot of times we speak about this in terms of the US dollar. Iraq has nothing to do with the US dollar. People throw around numbers the Iraq cant support certain rv's because they always equate it to us dollars.

A thought, lets say I have Iraqi dinar electronically in a US account. How would an RD affect that?

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You know what would be really cool?...if you or some one of your "go Rv'ers" could answer these questions...

...you up to it?

I'm just making an observation here, but what do you think happened to those loans and mortgages right before Iraq's Invasion of Kuwait, when their value was 1ID to 3.20 USD? Do you think adjustments had to be made? Granted, adjustments do have to be made, but not always do they have to be the same, across the board. When the NID was exchanged it was based on what economic zone you were in. There was an exchange of 1 ID = 1 NID or 1 Swiss ID = 150 NID. In this scenario, not everything was adjusted equally. My point is they can do whatever they want. They have shown that in the past. Nothing is absolute! By the way, I would be happy with the value of 1 swiss dinar compared to all of the NID that I own, providing a 1 to 1 exchange, Ha! Ha! I think if my math is right, that 1 swiss dinar was worth about .10 at the 2003 exchange rate.

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The statement of opinion that some Iraqi's would be mad post-R/V due to the idea that they spent some of their IQD prior to the event is something you have to look at two ways.

We have come to learn a few things with the idea of how Iraqis use their money

1. They rely on cash (non-digital)

2. Many prefer USD over IQD

3. Many rely on ration cards

We're also forgetting how some people who were fortunate enough to be holding IQD at the event of a R/V would be considered one of the lucky one's. This will likely benefit those within a family.

I.e., if the wife spends all the IQD at the market maybe the Husband was holding IQD still (both will likely benefit)

Saying the numbers don't add up, is really taking media articles for face value when we've seen them contradict time & time again. I've seen people claim they're corrupt, yet we have to take everything we say as fact.

A statement I have heard & come to agree with is "Watch what they do & not what they say.." (Because, they seem to be two entirely different things... most of the time.)

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I think we are trying to read too much of our own culture into the Iraqi culture. Only 20 percent of Iraqis have bank accounts. They borrow money from family and friends for the most part. Loans and mortgages in any institutional sense are rare. Their banking system is rudimentary at best, dysfunctional in many cases. Iraq doesn't seem to be a country anywhere close to having a stable economy, much less transforming their currency into trillions of dollars. It seems irrational to believe such a thing could happen in the face of the reality over there.

Edited by RVPleaseToday
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a redenomination is definately a negative move as far as building international trust in any countries economy, it would be a huge mistake. It would be great monitarily for them in a selfish way, but would screw everyone else. The only legitimate purpose to redenominate is to combat high inflation and in turn it attempts to restore confidence in a countries economy by its own people.

I still don't know why folks here think a "redenomination" would be a good thing, it would not be good for speculators at all. It might be a good idea for some to get educated on the terminology instead of just buying into the misunderstanding and hype of others.

I am hoping for a straight RV, revaluation, even if it is only $0.10 US, that would be awesome. :)

Edited by sportfisher
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That was my illogical rant.

My logical statement is as follows. A lot of times we speak about this in terms of the US dollar. Iraq has nothing to do with the US dollar. People throw around numbers the Iraq cant support certain rv's because they always equate it to us dollars.

A thought, lets say I have Iraqi dinar electronically in a US account. How would an RD affect that?

Although you cant have a electronic dinar account here in the states, if they were a possibility it would be affected just as if you had an account in Iraq....for every 1000 dinars you had, it turns into 1 dinar with a higher purchasing power....so you really didnt lose anything....it evens out

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Although you cant have a electronic dinar account here in the states, if they were a possibility it would be affected just as if you had an account in Iraq....for every 1000 dinars you had, it turns into 1 dinar with a higher purchasing power....so you really didnt lose anything....it evens out

Higher purchasing power? It would be neutral. Actually

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