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

[dinarck]

Well Darin they have made it clear that new currency will be equal to the dollar. There is their incentive. If an Iraqi is holding a dollar bill in one hand and a new 1 dinar note in the other and the are both worth the same then I think the choice would be obvious. Sure some would still use the dollar but I think the majority would take pride in their new currency.

[umbertino]

Ditto for me as well. I understand the postings but I don't have the mental capacity (yet,..... or most likely probably never) to debate the issue intelligently. I would like to add Markinsa to the list of thosewho are brave enough to venture in and argue their point.

I think you guys are selling yourselves short if you think you aren't getting the "other possibility" message through. Traffic is increasing! Thanks again, and thanks for responding to my questions.

Agreed my Friend.

[webup]

Many have a vested interest in the RD view being suppressed.

This ranges from the obvious dinar dealers to the Okie zombies to most of the dinar websites and their advertising.

If everyone woke up to the real possibility that its not going to 'SuperRV' and make everyone rich then the dealers stop making the obscene profits they currently are, the psychopathic liars (Gurus) would lose their adoring fans and the biggest of all, the PEOPLE WILL LOSE THEIR CHILD LIKE DREAM OF BEING RICH!

[sonny1]

i think i should start treating all of you loppers like they treat me over at sams......i stuck up for you all.......not any more....

[dvforumuser]

If a 25,000 note still buys the $21 value afterwards while the newly re-denominated note of 25 still buys $21 worth of values of goods/services, where is the incentive to attempt to exchange?

After about a year the IQD won't be accepted in the market and they will have to go to a bank, and after ten years that won't work. So the incentive is to keep currency that is worth something.

I highly doubt people will rush to exchange their USD for IQD upon this event... Which basically means that demand wont really go up either

Maybe so, but a single new-dinar is very close to a single USD, so the USD may loses some of its attraction.

Basically by reversing the inflation that occurred in previous years in the same time-frame that it happened. Which I think is a feasible option, but will just take time.

So this would mean deflation, where the CBI is taking huge quantities of currency out of the market. My impression is that this is much tricker to manage than just printing money and is why its never done. Plus in an economy that imports and exports pretty much its entire GDP (i.e. oil for everything else) a constantly changing exchange rate is horrible for business. Since its a pegged currency if investors see a clearly set plan of slow increases the dinar will become very popular and cost Iraq even more (since its not a losing investor that is on the other side of a profitable transaction but the CBI). Small movements over years sure, but a huge movement over just a few years seems very unlikely to me.