All newbies should this and it is a great refresher for those who have been around!

[jupitergirl]

Economist Explains How The Plan To Have The IQD RV at 1 IQD = $1 USD Should Work!

__________________________

Thursday, April 22, 2010 9:13:47 PM

In our 40+ year career as a Retirement Consultant we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

(1) He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in (1) controlling the rate of inflation, (2) controlling the value of the IQD in a declining economic environment and (3) implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a subsection of the original group that Iraq, State Department and IMF financial people bounce things off of.

(2) We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

The export oil revenues are still under the control of the UN supervised DFI, and Iraq only gets roughly 30% of the fair market value of the oil they are selling, which is to be used only for budgetary expenditures. Since Shabbi, the head of the CBI, knew he couldn’t get anymore cash flow out of the controlled revenue system the IMF/UN had him under, he opened a currency sales window at the daily auctions to tap into the wallets of the worlds speculators. Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

(3) We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddams picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

(4) The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion – $1.7 trillion

[Saint]

T hanks jupitergirl. Good read . Where is the site and background info for this thread?? Is there more as it is intersting. Thanks and Go RrrrrrVvvvvv

[Roadrunner]

JG, I enjoyed reading this. Some of it makes sense to me, and is in line with my thoughts; some not so much. My question is who is this man referred to as "the economist", and what are his credentials? Did this come from a legitimate source or was it just copied from another site with an agenda to sell dinar? I am not bashing you or the article. I am just trying to determine the credibility of this man. I liked the breakdown of the supposed 25 Trillion, and his explanation of removing the larger notes from circulation. Also the 7-10 year timeline works for me. Plus 1 for putting this out for everybody.

Roadrunner

[Roadrunner]

Keep,

I see you are reading this too. Have you seen this before? What is your take on this guy?

Roadrunner

[keepmwlknfny]

(2) We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills)

How can you have electronic funds included in your PHYSICAL currency outside of banks?

Not to mention the CBI specifically states that the currency listed in circulation DOES NOT include currency that has NOT been issued......

Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

Last time I checked the large reserves built up were from oil sales and the auctions are simply to keep inflation/exchange rate stable.....I dunno bout that one.....

(3) We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddams picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

(4) The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion – $1.7 trillion

Ok lets see here....so the Iraqis get a lop but we get full face value for our bills??

Did he get his degree from a candy machine??

No offense to you at all jupiter!! Thank you for posting it....I just cant put much faith into what alot of these so called "economists explanations" if I feel I can pick it apart you know?

Its no different from us reading about how the dinar is a scam and they say that you cannot purchase dinar or sell dinar anywhere here in the US and that its illegal to own it......

Edited March 28, 2012 by keepmwlknfny

[jupitergirl]

Roadrunner and Saint......this has been floating around the sites for 2 years....it could be all made up as far as I know. It is a good read though. Kinda delivers " The Plan " in a well presented way.

[Seabee]

I found this to be very informative as it was very easy to understand in lay terms. My only concern like mentioned above, is there a link or a factual article floating around the can back this up?

Let.s hope there is some merrit to this.

GO ...RV!!!!!!!!!!!!!!!

[The Machine]

It's a good read but ..... yeah there's always a but .... there's too many plot holes for me, and facts in it that we now know to be untrue.

cheers for posting anyway I dont ever remember reading this before

[Roadrunner]

Thanks Keep. I always appreciate your input. The two rates thing didn't work for me either.

Roadrunner