Russell from Oz

[jupitergirl]

Russel from Oz view on our Investment

The Iraqi Dinar is currently worthless, but I (Russell from Oz) and others who have done extensive due diligence (Kaperoni, Enortste and few others) feel that the Iraqi Dinar will revalue at about or just above US$1.00... possibly at $1.17 - $1.20.

There have been countless articles released from the CBI and GOI regarding the revaluation (delete 3 zero’s project) in recent months. All point to and reference a revaluation of about 1000:1 which would put the new dinar at about equal to US$1.00

It is apparent from articles and news items out of Iraq lately that the main currency on the street in Iraq is the US$... this fits in with what we perceive was Shabibi’s plan to pull the large 3 zero notes out of circulation in Iraq (the “delete 3 zero’s” project).

Now we get to the sad and difficult argument by so many non thinkers about JUST HOW WILL IRAQ PAY FOR THE RV?

The common answer we see is that these countries will buy oil with the Dinars we cash in... ummmmmmmmm, in my opinion that’s a really dumb answer. Blind Freddie can tell you that at $32 a barrel it will take Iraq hundreds of years of oil supply at 10 mill barrels a day to cash out 20 to 30 trillion dollars if the RV is $3.22, let alone Okie Oilmans and other hairy fairy RV rates of $10 to $22 ... dammit, even at $100 a barrel it will take about 100 years, and by then we will be importing some exotic new power source from Mars anyways!

THE FACT IS THIS...

Shabibi doesn’t care how many Dinars are held outside Iraq, because he has stated several times that those dinars will be held as “Foreign Currency Reserves” in those outside countries.... all countries around the world hold “Foreign Reserves”. They are basically an investment in the growth of the country that issued that currency. For example, China holds about 3 trillion US$ in their foreign reserves. Saudi Arabia and other major oil producers hold massive reserves of US$’s... that was all part of the plan set up by Keisinger et al years ago... this has allowed the USA to print massive amounts of dollars that will NEVER be cashed in. These countries holding US$ in foreign reserve accounts CAN’T EVER cash them in for their own currency, because if they do it will collapse the US$ and the worlds currency system TOTALLY. (yup, the worlds monetary system is just a house of cards, whether you like it or not... and it always has been).

OK... now you (hopefully) understand how money works at a macro level, consider this... why has Shabibi been printing and allowing Dinars to flow out of his country? Could it be to control inflation internally while increasing the amount of US$ in Iraq? ... Mmmmmmmmmmmmmmm!

Shabibi has stated MORE THAN ONCE that the Dinars outside Iraq will REMAIN as Foreign Reserves in the countries that hold them... THAT MEANS that THESE dinars we and our treasuries hold WON’T EVER be going back to Iraq... so... Shabibi doesn’t have to worry about them or their perceived effect on his money supply. Foreign Reserves are NOT part of M1 and M2... money supply WITHIN Iraq. He is ONLY concerned with M1 and M2 (Money in Iraq in cash and loans mortgages etc).

The simple fact is Shabibi and Iraq only have to fund a revaluation WITHIN Iraq... and at a RV rate of 1000:1 they only need the equivalent of about 60 billion USD worth (which they already have in foreign reserves of US$’s).

YES FOLKS, the fact is Iraq doesn’t need to find trillions of dollars to revalue their currency because they don’t have to cash us out... our central banks are going to do that, not Iraq. When we cash out, our dinars will go to our various countries central banks (the FED in America’s case for example) or to our treasuries. Our countries will issue to our bank accounts a digital equivalent in local currency to what we cash in. Our Dinars will then go and be held in Foreign reserves in our countries. In doing so our countries will increase money supply in our countries which will be a MASSIVE STIMULUS to our economies (we will buy new homes, cars and all sorts of do-dads from China).... some of us will probably even invest part of our newfound wealth back into Iraq.

Now you are asking... OK you Aussie hero, WHY HAS THE FREAKIN RV NOT HAPPENED ALREADY ??

Shabibi (the CBI boss) has stated many times that he is ready... he’s said “soon”, in a “few days” , “in the coming days” etc going way back to his visit to America early in 2011 (about April I think). We all know he was ready in June 2011 too.

Our theory ( that of Kaperoni, Enorste and myself from www.DinarAlert.webs.com )... is that Maliki (the Prime Minister of Iraq) is the problem. Not that Maliki doesn’t want an RV, he does, he’s desperate for it, however, Shabibi won’t press the RV button UNTIL Maliki makes good on his promises that he made in order to get into power. He promised to share high Cabinet posts with other coalition members (Erbil... Alawi etc) and the HCL law with Kurdistan. These are unmet promises that put him in power over 18 months ago. We believe that Shabibi won’t RV until Maliki gives way and delivers on his promises.

Conclusion...

Don't give up your day job...

Don’t go crazy taking layaways...

Don’t use the rent money...

HOWEVER... This could happen t aany time now... tonight, next week, next year... or we may have to wait until after another election, but I sure as hell hope not!

Russell from Oz ... I am a currency trader

www**********

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[The Machine]

Well that was a whole lot of nothing lol .....

ps. i'd remove the web address for there site

[BigJake]

Actually it does make pretty good sense. Additionally, the people in Iraq who have IQD, and it is probably a considerable amount, will NOT be trading in their IQD for U.S. dollars. As for the political aspects of it in Iraq, who knows, those people just do not think like we do.

[kjwayne]

Very good read on what ,when and how this should work out. I like your take on the way all outside Dinars will be STORED! With in Iraq ,people with a lot of Dinars, will not be cashing in a currency that is worth more than the US dollar that they are using. They will be keeping and using the Dinar. I like everything about this read. Let's go ahead and get Maliki out or on board with the agreement that he and others have already signed and agreed to.

[Halo9678]

It seems pretty simple to me... Maliki keeps his word (Erbil, Power-SHARING gov't) and Shabbs will keep his (RV). Make what consessions you have to and things will get done. Besides, Maliki, and/or his political party, can easily tout this as giving in for the good of the Iraqi people and save the kudos for the upcoming election cycle. Could this have been the plan all along????

[thylocene]

I have been watching this for quite a while. I think that Russel is correct in one respect; Maliki is an issue and at odds with Shabibi. There are moves to get rid of both. Not quite sure what that means for us but maybe by then most of the rubble will be cleared from the path so to speak.