WOW!!! Enorrste and another site do battle

[bostonangler]

Enorrste

20 hours ago (Reply)

AC is mistaken in his interpretation of the articles referenced. John has rightly quoted the relevant sections from Najafi in Parliament in which paragraph 103 of the Constitution clearly states that the CBI is independent in administration and ACTIONS, especially from interference from the Government, which is specifically named in the Constitution!

Shabibi does not have to report to the Council of Ministers, nor will he have explaining to do if he should elect to visit them. He already has the full backing of Parliament, to whom he does have to report.

The supposed “halt” of the “remove the three zeros” by the Cabinet is vaccuous. They have no authority in the matter per the Constitution. Parliament has also stated that they have no authority, and Saleh stated last week that no law needs to be passed or regulations from the Cabinet. In fact, he said, all that needs to be done is a posting of the regulations for exchange in the Gazette.

The CBI is ON RECORD that the RV will raise the value of the IQD to about $1 per dinar, and that the rate will rise gradually up until September, at which time the new currency will be issued to coincide with the existing currency. The two will coincide for one to two years, during which period the old currency will gradually be removed.

The money supply will not rise. In fact it will fall dramatically. Not only have most of the large notes already been withdrawn (Shabibi stated so) but the few that remain will disappear after the $1 RV, probably in the near future. By September there will be no large notes left. The currency, per their own press conference, will consist of 1 to 100 dinar notes, with values of about $1 per dinar. Therefore the money supply will DROP from the current 25 trillion dinars to about 25 billion dinars, as they had predicted clear back in 2007 and re-iterated in 2009 and 2010 and 2011. After September the dinar will continue to rise in value until it reaches equilibrium in the international market. This will be about $3.50 or possibly higher depending on oil revenues.

With 25 billion in money supply and $3.50 for the dinar they will have about $77.5 billion in money supply with $60 billion in reserves, by far the strongest currency in the world.

Finally, Shabibi has the authority to change the value of the currency whenever he feels it is time to do so. The Cabinet did not “HAVE” to give him that authority. He already has it. Neither can their resolution STOP him from acting. This is bluster, and Najafi rightly pointed this out by quoting the Constitution. The GOI is powerless over actions of the CBI. Parliament backs the CBI 100%. The IMF has also backed the CBI, specifically on the “remove the three zeros” project (RV). Nothing from the GOI can stop this.

AC is mistaken and needs to do his homework before bloviating.

The Professor

another site

20 hours ago (Reply)

There is so many holes in this I really don’t know where to begin to dissect the professor’s inaccuracies. I will make a point in the future to make my point more clearly.

Enorrste

20 hours ago (Reply)

I will provide links to all that I have written, one paragraph or sentence at a time.

“The estrus (of the Agency news): The Central Bank is an independent body financially and administratively nor can any other party to put under its control as stipulated by the Central Bank Law No. (66) for the year (2004), while Article (24) of Law No. (56 ) for the year (2004) authorized the central bank and government coordination in the monetary policy among themselves, and also granted the Cabinet the right to call the Governor of the Central Bank or any member of the Bank for the purpose of discussion in matters of monetary policy of the country provided it does not interfere with the federal government the contents of the work of the Central Bank.”

http://almadapaper.net/news.php?action=view&id=63907

This clearly delineates the independence of the CBI from the government.

The Professor

another site

19 hours ago (Reply)

The CBI still report to the Iraq government.

Enorrste

20 hours ago (Reply)

The Finance Committee of Parliament goes on record to state the the Cabinet has no authority over the CBI.

“The Finance Committee has confirmed the parliamentary vote on the resolution not to link the Central Bank of the House of Representatives and annexed to the Cabinet as a violation of the Iraqi Constitution. Said committee member MP for the Liberal bloc internalized within the National Alliance Majida al-Tamimi in an earlier statement / JD / ‘All of Representatives will not vote on the resolution link the Central Bank of Iraqi Council of Representatives.’

It showed al-Tamimi, ‘The first paragraph in Article 103 of the Iraqi Constitution stipulates that the central bank an independent body, independent financially and administratively, and second of the same article stipulates that the Central Bank is linked to the House of Representatives of Iraq, the solution relates to reassign the Council of Ministers is a violation of the constitution’.

She pointed out that ‘the House of Representatives will vote on the resolution of any independent body to be connected to the Council of Ministers because the deputies do not want to breach the Iraqi constitution.’”

http://translate.google.com/translate?langpair=ar|en&u=http%3A%2F%2Fwww.dananernews.com%2FNews_Details.php%3FID%3D342

The Professor

another site

18 hours ago (Reply)

The Iraq Judicial court stated differently.

DarlK

14 hours ago (Reply)

AC, you seem to have a hard time understanding plain English. Are you positive that Arabic isn’t your first language because English doesn’t seem to be!

another site

14 hours ago (Reply)

LOL…thank you that made my night!

Enorrste

20 hours ago (Reply)

Saleh states that no law need to be passed, only a regulation posted in the Gazette to change the value of the IQD.

“Baghdad (news) .. Commended the deputy governor of the Central Bank of the appearance of Mohammed that the draft deleted three zeros from the Iraqi currency does not need new legislation but issued a regulation to serve as instructions as stipulated by the Central Bank Law.

“Saleh said (of the Agency news) on Tuesday: The Central Bank Law gave full authority of the monetary authority to change the structure of the Iraqi currency, or delete zeroes of them, and can not be new legislation for the project to delete the three zeroes from the currency, having been discussed twice in the House and Minister, and became branches Executive and Legislative more familiar with it, adding that the project needs to issue a regulation and is a published instructions in the Official Gazette, and the Central Bank is in the process configured.”

http://translate.google.com/translate?langpair=ar|en&u=http%3A%2F%2Fwww.ikhnews.com%2Fnews_view_38029.html

The Professor

another site

18 hours ago (Reply)

Changing the value of the Iraq dinar is totally different than printing new currency. The printing of new Iraq currency which the deletion of the zero’s is what it is will require the approval of the Iraq government. Right now with the current economic crisis I don’t believe its going to happen anytime soon.

john

20 hours ago (Reply)

Where are the holes and please back up what you are saying by dissecting his inaccuracies with articles or facts as you know them.

It seems like the professor has done his homework and knows what he is talking about, you on the other hand put your opinion out here and never back it up.

I am not trying to start anything here just looking for facts.

Enorrste

20 hours ago (Reply)

Although this plan has been delayed, it was laid out back in October of 2010 that two currencies would co-exist. The plan was formulated in 2005, as I said.

“Two currencies coexist together and gradual replacement Central Bank (time): Delete the zeros start end of the year

“10/02/2010

“BAGHDAD – Ahmed Saleh Khyoun

“CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.

“Bank consultant and announced the appearance of Mohammed Saleh told (time) on that (the bank has completed 50 percent of a strategy switch in and out, delete the zeros of the nominal value of the new currency while retaining the cash value and purchasing power), said that (the replacement process will be gradually and spontaneously high and without fanfare, as will be There are two currencies to trade at the same time go hand in hand), but (that the purchasing power of the new currency will remain fixed).

“Saleh said (there are multiple advantages of this strategy, including ease of trading between the citizens and facilitate the work of banks, counting, sorting, and stand on the counterfeit currency and to facilitate transactions of the citizens with the banks on the deposits and withdrawals in addition to facilitating the process of monetary reform after hitting a currency issued in circulation now 25 trillion dinars, while in 1990 was about 25 billion dinars and this in itself calls for the deletion of zeros).

“In the answer to a question by (time) whether the Central Bank has set a deadline for the replacement of the currency said (we did not define this ceiling until now that the matter is still under study and the reality of work at that time will decide how long the replacement process).

“Responding to another question about the Iraqi currency held abroad and how to replace it “(The right of a citizen is to remove the $ 200 thousand dinars and he could only replace it like any ordinary citizen here in Iraq, either from abroad, the banks in the States would be responsible to us of the assets of our currency), He pointed out that (a media campaign will precede and guide the process in order to raise public awareness of the importance of this and that our banks and our will all be ready to provide all facilities to the citizens and emphasize once again that the process does not affect absolute quiet in the market also note that many countries replaced their currency and benefit from their experiences in this area, including Turkey, Russia, Brazil and others).

http://www.azzaman.com/index.asp?fna…htm&storytitle

The Professor

another site

19 hours ago (Reply)

The strategy for the new currency was only 50% completed according to the article. We know that no new Iraq currency has ever been printed and that the current Iraq currency is still in circulation according to the M2 reports from the CBI. The CBI deputy Saleh has stated the matter is still under study. Deputy Saleh knows that he still needs the government approval to implement the CBI plan to replace the Iraq currency. The approval had not been granted in Oct 2010 the time of this article being published.

Enorrste

20 hours ago (Reply)

It appears that AC won’t have the courage to reproduce these articles since they clearly state exactly what I just posted.

I’m sorry that you are more concerned about your reputation than you are about the truth.

I dare you to post these articles.

The Professor

another site

18 hours ago (Reply)

It amazes me that you would come to my blog and accuse me of not having courage to publish your diatribe of Iraq articles. I posted all the articles and explained most of them to satisfaction. My reputation is solid and I have always given my best commentary and analysis even if it was not what you all wanted to hear. You show your true colors and character with your posts and it is unbecoming of you.

Enorrste

20 hours ago (Reply)

Shabibi on record March 4 of this year stating that the value of the IQD would be increased “significantly” in “the coming days.”

BAGHDAD / not / A member of the parliamentary Finance Committee Faleh applicable, the registered companies in the Iraqi market for securities is the reason Riisa the high value of the U.S. dollar against the Iraqi dinar, indicating that the central bank has promised to reduce its value in the next few days. He said in effect, in a press statement received by the Agency “Secrets News / We are not” on Monday that “the central bank is responsible for fiscal policy and therefore obligated to take measures and controls to preserve the value of Iraqi dinar,” adding that “measures the bank last did not work in raising the value of the dinar Iraqi and inquire about this thing called the Governor of the Central Bank and told me that the measures developed but not implemented by 100% and the promise of its application in the coming days which will then significantly decreased the value of U.S. dollar against the Iraqi dinar. ”

http://translate.google.com/translate?sl=ar&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.sna-news.net%2Findex.php%3Faa%3Dnews%26id22%3D876%26lang%3D

A significant reduction of the value of the dollar against the dinar is the same thing as a significant INCREASE in the value of the dinar against the dollar.

The Professor

another site

19 hours ago (Reply)

The CBI Governor Shabibi can state anything and it does not mean its going to happen. Look at the current crisis and in this article it stating that he wanted to decrease the value of the U.S. dollar and just the opposite has happened. The CBI governor knew what was happening in Jan 2012 with the Dinar ie. the counterfeiting and the smuggling of U.S. dollars to the neighboring countries. The CBI governor will be reporting to the Iraq government to give his explanation on what is happening with the Iraqi currency to the Parliament and Cabinet finance committee.

Enorrste

19 hours ago (Reply)

This came out today. Shabibi is on record that he does not want to do an “end run” around the GOI. However, he is clearly ready to do so as is clear from Saleh’s statement today. The question is whether Maliki will go along, or will stall, as he has done in the past. If he stalls too long, however, Shabibi has the backing of the IMF and Parliament, as well as most of the economists in the country to go ahead.

“Saleh said that the central bank exceeded the advanced stages in the preparation of studies and logistical preparations for the mission project to delete the three zeroes from the currency and within a specific timeframe as the draft reform of the Iraqi currency. He added that in the event of obtaining approval by the federal government on the implementation of the project work will be on the tactical level and higher will be the announcement of the implementation and contract with advertising companies and the media to educate citizens on how to use the new currency and to answer all questions raised by him.”

Notice two things here: first, he refers to “in the event of obtaining approval of the government.” He did NOT state that the project required the approval, but indicates that he would like their approval. Second, they are ready for the “implementation” of the project, which is the RV itself.

The Professor

another site

19 hours ago (Reply)

Saleh stated in the event of government approval everyone knows that the CBI must obtain approval from Prime Minister Maliki and his Cabinet Finance committee for the implementation of this project. Today the Cabinet Finance committee issued a resolution for the suspension of the New Currency project indefinite. If the CBI could act alone than the Cabinet would not have signed a resolution on the matter with complete approval from the Iraq parliament. Why waste everyone’s time to get a resolution on the matter if the CBI is supposedly independent. The CBI has independence on certain matters but not totally autonomy from the Iraq government.

Enorrste

19 hours ago (Reply)

This is one of many articles indicating that the dinar will be RV’d to equal $1. Several have come out in the last couple of months. This was only 1 week ago and states it quite clearly.

“Financial: ‘Iraq is creating the conditions for even the Iraqi dinar against the U.S. dollar’

“Date: Thursday, 04/05/2012 20:48

“Citizen / special / Sarah al-Obeidi

“At the time when the central bank that its policy on the level near will work to stabilize the Iraqi dinar exchange rate against the U.S. dollar, for mid-level and near will work to equal the exchange rate of the Iraqi dinar against the dollar, a number of finance confirmed that the implementation is the step in such circumstances taking place in the country things are complex and require a brief period in order that the central bank can be in his ability to equal the Iraqi dinar against the U.S. dollar (Citizen News) The follow up this subject and was the first speaker. Financial expert, Munzer Mohsen said: “that it is very difficult in such complex conditions that are equal Iraqi dinar with the U.S. dollar for the time being at least, the reason for a number of objective reasons is most important that the budget that passed shortly before given a majority for the area Alchglah and not investment, making it difficult the development of the Iraqi economy to diversify its resource-dependent by an estimated 95% on oil exports, and that most of the materials, goods and services imported and non-productive and nationally. He improved “: the problem is the other sensitive to Iraqi oil, which is such a large proportion of the resources of the country is stable prices.”

http://almowatennews.com/news.php?action=view&id=39121

The Professor

another site

19 hours ago (Reply)

Another article referring to the Plan of the CBI. We know what happened as the Iraq Dinar is depreciating against the dollar and the loss of confidence in the Dinar by the Iraqi people thanks to criminals and entrepreneurs who are profiting from the dollar and not the Dinar. Iraq imports everything and pays in dollars so they have a large amount of U.S. dollars in the foreign reserves. This crisis in Iraq could go on for awhile.

Mike

19 hours ago (Reply)

wrong,,,wrong,,,wrong

again,,,again,,again

Do you really think Maliki has the power,,,,,any longer

SMOKE,,,SMOKE,,LAST DITCH TACTICS BY A FOOL IN POWER

another site

18 hours ago (Reply)

If your talking about PM Maliki he has the support of the USA and the Persians. PM Maliki will be in power quite awhile longer.

Enorrste

18 hours ago (Reply)

How can AC state that the CBI reports to the Iraqi government when the Constitution clearly states just the opposite. The CBI reports to Parliament and may report to the Cabinet, but the Cabinet is not authorized to tell it what to do. I quote paragraph 103 from the Constitution:

“Article 103:

“First: The Central Bank of Iraq, the Board of Supreme Audit, the Communication and Media Commission, and the Endowment Commissions are financially and administratively independent institutions, and the work of each of these

institutions shall be regulated by law.

“Second: The Central Bank of Iraq is responsible before the Council of Representatives. The Board of Supreme Audit and the Communication and Media Commission shall be attached to the Council of Representatives.”

There is no mention here of the CBI reporting to the GOI, only to the Council of Representatives (Parliament). If AC has something that equals the Constitution but says otherwise I would be glad to see it.

The Professor

Enorrste

18 hours ago (Reply)

The Iraqi Judicial Court reports to and is a lacky of Maliki. The fact that they came out on January 18 with a statement that totally contradicts the Constitution itself will be shown to be irrelevant, and the Parliament has stated such. When push comes to shove the Constitution will be shown to be supreme. This isn’t over, and for AC to imply that just because the Judicial Branch sent a letter to the CBI that it is somehow over is misleading, at best.

The Professor

B/A

Edited April 14, 2012 by TexasGranny
removed link to other site

[keepmwlknfny]

Steve,

Im not sure you can tell anyone to do their homework when your trying to tell everyone that the CBIs plans to lop is actually the RV that we all want!!

[Lorre]

Hahahaha!!! I think both of these two must be from Iraq themselves!!! Sure act like it.... Next comes the sticks and stones.....

[one2one]

Steve,

Im not sure you can tell anyone to do their homework when your trying to tell everyone that the CBIs plans to lop is actually the RV that we all want!!

.00086 [ current iqd value ]

becomes .86 [ new value usd ]

that is what the 3 zero business means ---IMO

[keepmwlknfny]

.00086 [ current iqd value ]

becomes .86 [ new value usd ]

that is what the 3 zero business means ---IMO

The exchange rate would change after a redenomination so you are partly correct.....but the CBIs plans to delete the zeros is not what a lot of gurus make it out to be.....deleting the zeros/redenomination/lop is bad.....

And Steve is one of the many it seems that is passing this redenomination crap off as the RV we all want.....it doesnt work that way.....

[doctor robbins]

The CBI is ON RECORD that the RV will raise the value of the IQD to about $1 per dinar, and that the rate will rise gradually up until September, at which time the new currency will be issued to coincide with the existing currency. The two will coincide for one to two years, during which period the old currency will gradually be removed.

The money supply will not rise. In fact it will fall dramatically. Not only have most of the large notes already been withdrawn (Shabibi stated so) but the few that remain will disappear after the $1 RV, probably in the near future. By September there will be no large notes left. The currency, per their own press conference, will consist of 1 to 100 dinar notes, with values of about $1 per dinar. Therefore the money supply will DROP from the current 25 trillion dinars to about 25 billion dinars, as they had predicted clear back in 2007 and re-iterated in 2009 and 2010 and 2011. After September the dinar will continue to rise in value until it reaches equilibrium in the international market. This will be about $3.50 or possibly higher depending on oil revenues.

The CBI never said they would RV. That's nonsense. They said they would RD and by removing three zeros they would be near the value of the US dollar at 86 cents.

Shabibi never said that most of the large notes have been withdrawn. That's more nonsense. This was taken from a report two years ago that said they had removed 70% of excess liquidity from the markets. That's not referring to removing larger notes. Think about it. If they were referring to removing 70% of the large notes two years ago wouldn't they have removed them all by now? And if they had already removed them all why announce now that they're not going to remove them just yet?

Enorrste is just spewing out more forum facts and misinformation like he has been for years now.

[FreckledFuzz]

Wow.....

please pass the popcorn.

Thanks for the ( entertaining ) conjectures of the Professor and AC BA

[k98nights]

I love watching two overblown self-important egomaniacs go at it head to head. They might as well be beating each other over the head with a wet noodle.

[DWitte]

I may be new, bit I LIKE it.

[vietnam1969]

Wow.....

please pass the popcorn.

Thanks for the ( entertaining ) conjectures of the Professor and AC BA

I need to take a break from reading this now. Been on it for one hour and still am not that sure what they are talking about lol.

[azgoldengirl]

I love watching two overblown self-important egomaniacs go at it head to head. They might as well be beating each other over the head with a wet noodle.

The only thing on this page worth reading.....thank you sir~

I need to take a break from reading this now. Been on it for one hour and still am not that sure what they are talking about lol.

Ooops....I neged you by accident vietnam! I thought your comment was funny! I agree~

[TexasGranny]

Fixed it for you vietnam1969 - +1

[whatsthis]

The exchange rate would change after a redenomination so you are partly correct.....but the CBIs plans to delete the zeros is not what a lot of gurus make it out to be.....deleting the zeros/redenomination/lop is bad.....

And Steve is one of the many it seems that is passing this redenomination crap off as the RV we all want.....it doesnt work that way.....

First off you are behind the times they have changed it from calling it deleting the zeros to lifting the zeros.

Second the way I under stand what is going on & I have read a lot of these art myself (not being spoon feed like some are), as well as having some discussions with others who have also read more than me & been in this longer than I have, we all have a similar view we all think RV first than re denominate but the difference between us is I think we still have a ways to go & they are talking by the summer time as a possible do to inflation.

I think we all stand to make out on this with a 1-1 rate anything higher would kill them & they have made reference to a 1-1 with a gradual raise over time.

SO you LOPers can eat some crow. & it might be time you open your eyes & see the light.

[cooked]

First off you are behind the times they have changed it from calling it deleting the zeros to lifting the zeros.

Second the way I under stand what is going on & I have read a lot of these art myself (not being spoon feed like some are), as well as having some discussions with others who have also read more than me & been in this longer than I have, we all have a similar view we all think RV first than re denominate but the difference between us is I think we still have a ways to go & they are talking by the summer time as a possible do to inflation.

I think we all stand to make out on this with a 1-1 rate anything higher would kill them & they have made reference to a 1-1 with a gradual raise over time.

SO you LOPers can eat some crow. & it might be time you open your eyes & see the light.

Trust me, I think even the lopsters want to eat crow, but I think you wuold agree that the articles on deleting/raising,lifting the zeros can be interpreted many ways. I at times wonder about the articles and fear the worst. Keep wants this as bad as we all do, he just has a much more grounded view and will be the least surprised if this does not work out as we wish.

Keep, I don't always agree with you but do like your level headed approach. Gave you a few +s too.

[thatoneguy]

Steve,

Im not sure you can tell anyone to do their homework when your trying to tell everyone that the CBIs plans to lop is actually the RV that we all want!!

Hey Keep. You may have posted your thoughts before, but I'm curious as to how a LOP will 'increase the value of the dinar'.

Doesn't a LOP keep everything neutral?

How do you believe the LOP will play out, and how does Iraq benefit from it?

Thanks in advance.

[gatoraces]

I would love to eat crow. Give me a buck for every dinar I have and I just might eat many obscure foods

[vietnam1969]

Fixed it for you vietnam1969 - +1

ty Granny

[ayrnay22]

Does anyone realize the difference between 30 or 25 trillion and the 812 billion they supposedly have even if most large notes are out of circulation and they have supposed 112 to 200 billion barrels still in the ground at 90 a barrel but remember its in the ground if a revalue of 1:1 happened and only a few trillion were cashed in there 812 billion wouldn't cover it but at .10 to .50 cents they possibly could until a second revalue of 1 or 1.25 a year later with an eventual set rate of 3.00 or 3.25 in 3 to 5 years or a managed float they can't just come out lift or remove the three zeros without more oil to sell and money to back a sudden revalue

Net me if u want but 30 trillion is 30000 billion there only 29188 billion short with 200 billion barrels in the ground not ready for sale at 90 a barrel is 18000 billion still short 11188 billion

[gakman]

Does anyone realize the difference between 30 or 25 trillion and the 812 billion they supposedly have even if most large notes are out of circulation and they have supposed 112 to 200 billion barrels still in the ground at 90 a barrel but remember its in the ground if a revalue of 1:1 happened and only a few trillion were cashed in there 812 billion wouldn't cover it but at .10 to .50 cents they possibly could until a second revalue of 1 or 1.25 a year later with an eventual set rate of 3.00 or 3.25 in 3 to 5 years or a managed float they can't just come out lift or remove the three zeros without more oil to sell and money to back a sudden revalue

Net me if u want but 30 trillion is 30000 billion there only 29188 billion short with 200 billion barrels in the ground not ready for sale at 90 a barrel is 18000 billion still short 11188 billion

HUH???

[ayrnay22]

Just math thought explaining it in billions would put it in perspective I've read most articles that state 30 trillion dinar printed and that oil reserves in Iraq are around 200 billion barrels so when everyone gets excited that Iraq possibly has 812 billion I don't see how that will help with an rv a trillion is a 1000 billion so if there is 30 trillion dinar out there 812 billion is almost 1 trillion that's far away from the 30 trillion out there

The 25 trillion in circulation is in the article above in 1990 it was 25 billion now 25 trillion so if u want a 1:1 rv the 200 billion barrels in the ground would have to be sold at 150 a barrel usd to cover the 30 trillion in circulation

[keepmwlknfny]

First off you are behind the times they have changed it from calling it deleting the zeros to lifting the zeros.

Second the way I under stand what is going on & I have read a lot of these art myself (not being spoon feed like some are), as well as having some discussions with others who have also read more than me & been in this longer than I have, we all have a similar view we all think RV first than re denominate but the difference between us is I think we still have a ways to go & they are talking by the summer time as a possible do to inflation.

I think we all stand to make out on this with a 1-1 rate anything higher would kill them & they have made reference to a 1-1 with a gradual raise over time.

SO you LOPers can eat some crow. & it might be time you open your eyes & see the light.

Deleting/lifting/raising/removing/shooting/chopping/lopping/cropping the zeros is all the same......

They havent changed anything....your just hearing different words being used to describe and say the same thing and your reading, digging and scratching too far into it to pull something else out.....

If you spend the time outside these forums to educate yourself on what happens with redenominations and when countries "remove zeros" from their currency, you will understand what the CBI is actually saying......

If they RV to a buck or whatever there is no need to redenominate.....you simply print and add on bills to the current series and the larger ones will naturally make their way out of the market....for example like what happened here in the states.....

I dont think it is I that needs to do the eye opening.....

Edited April 15, 2012 by keepmwlknfny

[keepmwlknfny]

Hey Keep. You may have posted your thoughts before, but I'm curious as to how a LOP will 'increase the value of the dinar'.

Doesn't a LOP keep everything neutral?

How do you believe the LOP will play out, and how does Iraq benefit from it?

Thanks in advance.

By lopping and reducing the inflated money supply by 3 zeros, (25+trillion to 25+billion) you are able to effectively also raise the value of whats left by 3 zeros (from 1170 to 1.17)

The only benefit for redenominating is erasing the after affects of periods of hyperinflation....bringing down the money supply to manageable levels and the majority of the time, leaves behind a stronger value.....it doesnt fix the economy and its not a cure all of everything.....neither is a straight up RV......

Its an easy way out for Iraq....think about this.....with a current M2 of 60 trillion dinar, if they lopped and that turns into 30 billion dinar, they actually have enough international reserves to back almost a 2 dollar rate.....

For example you can look up Turkeys redenomination of deleting 6 zeros....before they lopped, the exchange rate was something like 1.8 MILLION Lira to 1 USD......afterwards the value of the NEW Lira was 1.8 Lira to 1 USD.....(those numbers might be off by just a little but you get the picture)

Honestly IF they lop, the only thing Im worried about is our ability to exchange back to USD.....if it goes down like it has many times before, the country usually does not allow any currency exchange outside its borders.....in the end we would break even (minus fees of course)....def not what I got in this for! LOL

[Roadrunner]

Enorrste seems to be quoting guru logic rather than facts. Here is an excerpt from the Iraqi Constitution along with a link to the final draft of the Constitution. It would appear that according to their laws, the GOI has full authority over the CBI (Read Third section of Article 107)

Article 107: The federal government shall have exclusive authorities in the following matters:

First: Formulating foreign policy and diplomatic representation; negotiating, signing, and ratifying international treaties and agreements; negotiating, signing and ratifying debt policies and formulating foreign sovereign economic and trade policy;

Second: Formulating and executing national security policy, including creating and managing armed forces to secure the protection, and to guarantee the security of Iraq's borders and to defend Iraq;

Third: Formulating fiscal and customs policy, issuing currency, regulating commercial policy across regional and governorate boundaries in Iraq; drawing up the national budget of the State; formulating monetary policy, and establishing and administering a central bank;

Fourth: Regulating standards, weights and measures;

Fifth: Regulating the issues of citizenship, naturalization, residency and the right to apply for political asylum. Sixth: Regulating telecommunications and mail policy.

Seventh: To draw up the general and investment budget bill.

Eighth: Plan policies relating to water sources from outside Iraq, and guarantee the rate of water flow to Iraq and its fair distribution, in accordance with international laws and norms.

Ninth: General population statistics and census.

http://portal.unesco.org/ci/en/files/20704/11332732681iraqi_constitution_en.pdf/iraqi_constitution_en.pdf

Roadrunner

[keepmwlknfny]

Enorrste seems to be quoting guru logic rather than facts. Here is an excerpt from the Iraqi Constitution along with a link to the final draft of the Constitution. It would appear that according to their laws, the GOI has full authority over the CBI (Read Third section of Article 107)

Article 107: The federal government shall have exclusive authorities in the following matters:

First: Formulating foreign policy and diplomatic representation; negotiating, signing, and ratifying international treaties and agreements; negotiating, signing and ratifying debt policies and formulating foreign sovereign economic and trade policy;

Second: Formulating and executing national security policy, including creating and managing armed forces to secure the protection, and to guarantee the security of Iraq's borders and to defend Iraq;

Third: Formulating fiscal and customs policy, issuing currency, regulating commercial policy across regional and governorate boundaries in Iraq; drawing up the national budget of the State; formulating monetary policy, and establishing and administering a central bank;

Fourth: Regulating standards, weights and measures;

Fifth: Regulating the issues of citizenship, naturalization, residency and the right to apply for political asylum. Sixth: Regulating telecommunications and mail policy.

Seventh: To draw up the general and investment budget bill.

Eighth: Plan policies relating to water sources from outside Iraq, and guarantee the rate of water flow to Iraq and its fair distribution, in accordance with international laws and norms.

Ninth: General population statistics and census.

http://portal.unesco...titution_en.pdf

Roadrunner

Thank you road runner! This should be read by the masses.....the govt does not control the exchange rate, but issuing a new currency does require their approval...

[Roadrunner]

Thank you road runner! This should be read by the masses.....the govt does not control the exchange rate, but issuing a new currency does require their approval...

The part that caught my eye was "establishing and administering a central bank" and the part that said The federal government shall have exclusive authorities in the following matters