What does Iraq stand to gain from a RV

[hawaii50hawk]

There are a lot of smart people on this site. We all would appreciate if someone could explain how Iraq stands to gain when it RVs? It may seem like a simple question, but don't they have to have the money or reserves to back it. Any ifis greatly appreciated.

[20MillionDinar]

There are a lot of smart people on this site. We all would appreciate if someone could explain how Iraq stands to gain when it RVs? It may seem like a simple question, but don't they have to have the money or reserves to back it. Any ifis greatly appreciated.

Yes they would need the cash reserves to back their RV.

Option #1: Unless they became the first oil exporting middle eastern country to start using a currency backed by the faith of their government instead of reserves.

OR

Option #2: Unless a new global financial system came into play which allowed countries to value their currency off of all of their assets (monetization)

Both above options are pretty unlikely, but one never knows.

Option #3: They do have the option to slowly build up their economy, infrastructure, private sector, agriculture, increase oil exports and GDP, withdraw currency from circulation, and gradually increase the value of the Iraqi Dinar! This to me is the most realistic option... (this would still pertain to Option #1 above...)

**Disclaimer**: I am not a central banker, I am not an economist, the above are only my opinions based off of my own experience and research.

Edited April 13, 2012 by 20MillionDinar

[HisHands]

I think CaptainWingnut gives us pretty good examples of how this works over in the thread referring to Steve Enorrstes. He makes some very good points, and it is easy to understand, too.

[HughJeffin Byrd]

Yes they would need the cash reserves to back their RV.

Option #1: Unless they became the first oil exporting middle eastern country to start using a currency backed by the faith of their government instead of reserves.

OR

Option #2: Unless a new global financial system came into play which allowed countries to value their currency off of all of their assets (monetization)

Both above options are pretty unlikely, but one never knows.

Option #3: They do have the option to slowly build up their economy, infrastructure, private sector, agriculture, increase oil exports and GDP, withdraw currency from circulation, and gradually increase the value of the Iraqi Dinar! This to me is the most realistic option... (this would still pertain to Option #1 above...)

**Disclaimer**: I am not a central banker, I am not an economist, the above are only my opinions based off of my own experience and research.

I'm banking on option #2 from my research...and also hoping for that one since Iraq has a shi-t ton of resources.

[20MillionDinar]

I'm banking on option #2 from my research...and also hoping for that one since Iraq has a shi-t ton of resources.

I've also read quite a bit on that topic. If it happens there will be MASSIVE changes around the entire world!

[HughJeffin Byrd]

I've also read quite a bit on that topic. If it happens there will be MASSIVE changes around the entire world!

I believe that's the only chance we have...otherwise if the elite win, it's over for us anyway... but I'm one to believe more in the Mayans prophecy of "time coming to an end" which has absolutely nothing to do with an apocalypse.

[Off-the-grid]

I think the error in this reasoning is the need for CBI reserves on hand to cover all the existing currency.

• The several references from the CBI about the IQD becoming a reserve currency itself is VERY important. It means that essentially all the IQD that is currently outside of Iraq's borders will stay there after the RV - so the CBI does NOT need to cover those trillions of dinar, certainly not overnight.
• Even if those IQD held be foreign governments are used like petrodollars in the future, the CBI STILL does NOT need to cover them with foreign currency! Those IQD will be traded for oil, not money.

So, call these options #4 and #5, in which Iraq will NOT be bankrupted by a substantial (say 1:1) RV.

My other question is this: Why get the current 000 notes out of circulation if not planning on a substantial RV? What would be the purpose? This is not a rhetorical question - but a real inquiry as to y'all's thoughts on this.

Peace and Prosperity

[Danan]

I think the error in this reasoning is the need for CBI reserves on hand to cover all the existing currency.

• The several references from the CBI about the IQD becoming a reserve currency itself is VERY important. It means that essentially all the IQD that is currently outside of Iraq's borders will stay there after the RV - so the CBI does NOT need to cover those trillions of dinar, certainly not overnight.
• Even if those IQD held be foreign governments are used like petrodollars in the future, the CBI STILL does NOT need to cover them with foreign currency! Those IQD will be traded for oil, not money.

So, call these options #4 and #5, in which Iraq will NOT be bankrupted by a substantial (say 1:1) RV.

My other question is this: Why get the current 000 notes out of circulation if not planning on a substantial RV? What would be the purpose? This is not a rhetorical question - but a real inquiry as to y'all's thoughts on this.

Peace and Prosperity

Totally agree with your perspective.

[cooked]

I don't know, didn't you ever buy a 1000 dinar coke?

I once paid 260000 pesos for dinner.

[coleman619]

There are a lot of smart people on this site. We all would appreciate if someone could explain how Iraq stands to gain when it RVs? It may seem like a simple question, but don't they have to have the money or reserves to back it. Any ifis greatly appreciated.

There are a lot of smart people on this site?

[CaptainWingnut]

I think the error in this reasoning is the need for CBI reserves on hand to cover all the existing currency.

• The several references from the CBI about the IQD becoming a reserve currency itself is VERY important. It means that essentially all the IQD that is currently outside of Iraq's borders will stay there after the RV - so the CBI does NOT need to cover those trillions of dinar, certainly not overnight.
• Even if those IQD held be foreign governments are used like petrodollars in the future, the CBI STILL does NOT need to cover them with foreign currency! Those IQD will be traded for oil, not money.

So, call these options #4 and #5, in which Iraq will NOT be bankrupted by a substantial (say 1:1) RV.

RIGHT ON THE MONEY Off-the-grid

My other question is this: Why get the current 000 notes out of circulation if not planning on a substantial RV? What would be the purpose? This is not a rhetorical question - but a real inquiry as to y'all's thoughts on this.

Peace and Prosperity

Since Iraq is NOT worried about having to COVER the dinar from anyone outside of their borders,

They're only concern is INSIDE...

They've got to remove as many 000 notes from INSIDE Iraq before the RV...

(which they've already done a very good job of How They Did It)

This [inside Iraq] is the ONLY place that they have to cover notes with current value because as you said it above,

all of the other notes from outside will and can only be used as PetroDollars in exchange for Future Oil

(I'm sure their 000 notes will be used as trading currency between governments after the RV, but that's another lecture.)

Praying for EVERYONE that this happens SOON!

Go RV

[ayrnay22]

I think the 3 rd option is the plausible one i posted a topic today simple math it shows what numbers if true and explains how to back an rv but a 1:1 I don't think will happen any time soon unless like stated above outside Iraq they are cashed as petrol dollars in that case the rv would have to be at least 3:1 if there is really 200 billion barrels in the ground in Iraq

[keepmwlknfny]

I think the error in this reasoning is the need for CBI reserves on hand to cover all the existing currency.

• The several references from the CBI about the IQD becoming a reserve currency itself is VERY important. It means that essentially all the IQD that is currently outside of Iraq's borders will stay there after the RV - so the CBI does NOT need to cover those trillions of dinar, certainly not overnight.
• Even if those IQD held be foreign governments are used like petrodollars in the future, the CBI STILL does NOT need to cover them with foreign currency! Those IQD will be traded for oil, not money.

So, call these options #4 and #5, in which Iraq will NOT be bankrupted by a substantial (say 1:1) RV.

My other question is this: Why get the current 000 notes out of circulation if not planning on a substantial RV? What would be the purpose? This is not a rhetorical question - but a real inquiry as to y'all's thoughts on this.

Peace and Prosperity

But they arent a reserve currency....and are not anywhere close to that being a reality....so you think the world will just let them slide for a decade on not having to back their currency? Especially while still being pegged?? Iraq would have to become a reserve currency like NOW, and immediately move to a free floating or market driven currency (like the USD)

And also we cant forget that there would have to be some super secret deal to buy oil from Iraq with dinar....completely going against all current OPEC agreements and basically turning around and doing what we used as a motive for war with Iraq and another reason to be all up in Irans business.....hmmmmmm......no offense of course but that seems like much of a stretch to explain how this will go down....

[Darin]

But they arent a reserve currency....and are not anywhere close to that being a reality....so you think the world will just let them slide for a decade on not having to back their currency? Especially while still being pegged?? Iraq would have to become a reserve currency like NOW, and immediately move to a free floating or market driven currency (like the USD)

And also we cant forget that there would have to be some super secret deal to buy oil from Iraq with dinar....completely going against all current OPEC agreements and basically turning around and doing what we used as a motive for war with Iraq and another reason to be all up in Irans business.....hmmmmmm......no offense of course but that seems like much of a stretch to explain how this will go down....

The US could make an arrangement with Iraq.

i.e., US buys crude from Iraq by paying in USD

US sells dinars to banks in Iraq for exchange for USD

the deal/idea could be that the US does so in a manner that does not substantially impact Iraq

ultimately helping Iraq hold a stable value while the US gains from practically free crude/oil.

[20MillionDinar]

But they arent a reserve currency....and are not anywhere close to that being a reality....so you think the world will just let them slide for a decade on not having to back their currency? Especially while still being pegged?? Iraq would have to become a reserve currency like NOW, and immediately move to a free floating or market driven currency (like the USD)

And also we cant forget that there would have to be some super secret deal to buy oil from Iraq with dinar....completely going against all current OPEC agreements and basically turning around and doing what we used as a motive for war with Iraq and another reason to be all up in Irans business.....hmmmmmm......no offense of course but that seems like much of a stretch to explain how this will go down....

Unfortunately this is the truth.

Although it sounded very nice, the reasoning behind Captain Wingnut's theories were a little far fetched.

No Dinar left in circulation

IQD being a reserve currency AND becoming the PetroDollar...

IF the things that he mentioned were to happen then yes, we could see a an overnight RV, but...that isn't what is happening right now. Maybe he has somebody he knows who is a Central Banker who has told him the plan and about the major changes coming to the global financial system. If not, then these are only theories, which sound good, but unfortunately a little unrealistic.

[ayrnay22]

Im sticking with option 3 still here's some more math for u Iraq produces 2.9 million barrels a day that's 839 mil a year it would take 238 years to extract all 200 billion barrels in the ground and at a right now rv of 1:1 they can't back the 30 trillion dinar in circulation and like said above the petrol dollars theory is that theory saudia Arabia Kuwait etc won't let that happen but in roughly 10 years Iraq has increased its value of dinar from around 2000 to 1160 at that rate u would see a 1:1 rv in 11 years but pre war Iraq was at 3:1 so unless they rv at that initially on future oils speculative then just hope for .01 to .10 conservatively and pray it comes before another civil war

[Off-the-grid]

In response:

• The IQD for oil option I simply gleaned from the "Plan" letter that was posted quite some time ago, and I am not presenting that idea as "fact", just a nice possibility.
• The IQD becoming (future tense, post RV) a reserve currency absolutely has been stated by Shabibi, but that does not make it a certainty, but does imply that the other central banks have an agreement. Also cannot be taken as "fact". However, it is a strong, actual statement by Shabibi and Saleh, so I feel it merits serious consideration.

Peace and Prosperity

[keepmwlknfny]

In response:

• The IQD for oil option I simply gleaned from the "Plan" letter that was posted quite some time ago, and I am not presenting that idea as "fact", just a nice possibility.
• The IQD becoming (future tense, post RV) a reserve currency absolutely has been stated by Shabibi, but that does not make it a certainty, but does imply that the other central banks have an agreement. Also cannot be taken as "fact". However, it is a strong, actual statement by Shabibi and Saleh, so I feel it merits serious consideration.

Peace and Prosperity

Simply mentioning that a possible goal in the future would be to shoot for becoming a reserve currency certainly does not imply there are already agreements in place for this to happen with other central banks......something to look forward to? Yes of course....

As for the oil for dinar option, what do you mean?? What documentation are you referring to that leans towards this being a possibility or even being mentioned?

[bamagirl]

***Now this is the kind of thread I love....legitemite ideas and theories thrown around and politely discussed and debated......

[hame55]

I think the error in this reasoning is the need for CBI reserves on hand to cover all the existing currency.

• The several references from the CBI about the IQD becoming a reserve currency itself is VERY important. It means that essentially all the IQD that is currently outside of Iraq's borders will stay there after the RV - so the CBI does NOT need to cover those trillions of dinar, certainly not overnight.
• Even if those IQD held be foreign governments are used like petrodollars in the future, the CBI STILL does NOT need to cover them with foreign currency! Those IQD will be traded for oil, not money.

So, call these options #4 and #5, in which Iraq will NOT be bankrupted by a substantial (say 1:1) RV.

My other question is this: Why get the current 000 notes out of circulation if not planning on a substantial RV? What would be the purpose? This is not a rhetorical question - but a real inquiry as to y'all's thoughts on this.

Peace and Prosperity

Hey Off the Grid!

Great quote....I have a cottage in Mexico off the grid - solar, cistern, etc. Wonderful...lived eight years on a boat anchored offfshore with solar power.

Your reasoning is right on - reserve currency, held by governments, investors paid by their respective governments upon the RV

They will not be bankrupted by a 1:1 RV

Yes, why take 000 notes off the market locally in Iraq if they are not planning a RV? Although, as I reason thru this further, they are buying back dinar of ANY kind using USD, I would imagine. Just taking dinar off the streets, of any denomination and amount they profit from the local dislike of dinar and their preference for USD by making the USD used more and more, and then RV at a lower price for the CBI.

Probably why they were concerned about the scarcity of dollars on the street given Iran and Syria's troubles because they cannot keep normal market cash transactions going if they are cleaning up dinar and the USD is the currency of choice - if USD dry up, as they are drying up dinar, they have a short-term problem of not enough cash in a cash society.

[hame55]

But they arent a reserve currency....and are not anywhere close to that being a reality....so you think the world will just let them slide for a decade on not having to back their currency? Especially while still being pegged?? Iraq would have to become a reserve currency like NOW, and immediately move to a free floating or market driven currency (like the USD)

And also we cant forget that there would have to be some super secret deal to buy oil from Iraq with dinar....completely going against all current OPEC agreements and basically turning around and doing what we used as a motive for war with Iraq and another reason to be all up in Irans business.....hmmmmmm......no offense of course but that seems like much of a stretch to explain how this will go down....

Now hold on Keep - are you saying there would NOT be a deal for oil with Iraq and the US?

We invaded, spent a trillion dollars, lost 4500 men adn thousands wounded - and left without an oil deal?

The chances of that are slim to none.

[keepmwlknfny]

Now hold on Keep - are you saying there would NOT be a deal for oil with Iraq and the US?

We invaded, spent a trillion dollars, lost 4500 men adn thousands wounded - and left without an oil deal?

The chances of that are slim to none.

No....thats not what Im saying.....

Im saying that this "supposed" secret plan to pay off speculators on a RV by taking dinar as payment for oil is highly unlikely.....Iraq would practically be giving away oil for free the rest of its existance.....not just that but the whole USD agreement between all the OPEC countries as well.....