MovieMaker Posted May 27, 2012 Report Share Posted May 27, 2012 Sit tight, it's going to happen soon! 1 Link to comment Share on other sites More sharing options...
SocalDinar Posted May 27, 2012 Report Share Posted May 27, 2012 IMHO, The CBI can do all the rate changes it wants but unless the dinar is COMPARABLE to the USD, the local Iraqi citizen won't let go of it. Granted, when the CBI starts taking in more dollars and releasing only dinars, there could be a shift but it's not likely that a local Iraqi citizen is going to want to have to carry a brief case full of IQD to but groceries. That just spells socio-economic unrest. But then I'm sure that all the commitees and forums they've had already pointed these things out... Not sure why they would need a brief case full of dinar to buy groceries???? I spend approx 200 usd a week. That's only 8 - 25k iqd notes Waiting patiently for the June UN meeting and hopefully chapter 7 release Keep buying those iqd back SHABS. If you run low on USD I'm sure you and Timothy can work something out Go SHABS !!! 2 Link to comment Share on other sites More sharing options...
Doctor Smith Posted May 27, 2012 Report Share Posted May 27, 2012 Fractional banking isnt about backing the value of their currency....has nothing to do with a central bank really....Its used by commercial banks for loaning purposes.... Read more: http://dinarvets.com/forums/index.php?/topic/118316-member-of-the-economy-the-central-bank-can-make-the-dollar-equivalent-of-1000-jd-requirement-to-change-its-current-policy/page__st__20#ixzz1w4hkQDqw In the states every time they create money they are also creating dept. And the interest is paid to the federal reserve. Or whoever holds the Treasury Bonds. 1 Link to comment Share on other sites More sharing options...
keepmwlknfny Posted May 27, 2012 Report Share Posted May 27, 2012 In the states every time they create money they are also creating dept. And the interest is paid to the federal reserve. Or whoever holds the Treasury Bonds. I understand that, but fractional banking isnt a way to back your currency. I know that those economists explanations of a RV by using fractional banking sounded great and at one point we all figured thats how they can do it but if you look into fractional banking, its used on the commercial bank level in regards to how much they can loan out....its not a way to get out of having to have strong reserves backing your currency 3 2 Link to comment Share on other sites More sharing options...
zigmeister Posted May 27, 2012 Report Share Posted May 27, 2012 SHHHHH!! Dont give them any ideas!! Let them continue talking about changing their policy and making these small jumps WITHOUT talkin about those cursed zeros!! Yes this is exactly what we want. 1 Link to comment Share on other sites More sharing options...
Doctor Smith Posted May 27, 2012 Report Share Posted May 27, 2012 The only report I know of (and that people keep repeating in regards to why they feel the CBI is and has been pulling in dinar) is talking about them removing 70% of the excess liquidity but if you read further in that report/article, it tells you that what they did with that money was cycle it right back into the banking system for loans/financing and such...Read more: http://dinarvets.com/forums/index.php?/topic/118316-member-of-the-economy-the-central-bank-can-make-the-dollar-equivalent-of-1000-jd-requirement-to-change-its-current-policy/page__st__20#ixzz1w5JlB1NG But when they loan out the money they don't pay out cash. They mostly loan out for housing and other investments etc at the current value of the money. They mostly aren't loaning out the physical notes. For example. The bank buys a house with the Dinar and the signer pays interest on the loan. They don't physically give the money to the seller. 1 Link to comment Share on other sites More sharing options...
Doctor Smith Posted May 27, 2012 Report Share Posted May 27, 2012 (edited) I understand that, but fractional banking isnt a way to back your currency. I know that those economists explanations of a RV by using fractional banking sounded great and at one point we all figured thats how they can do it but if you look into fractional banking, its used on the commercial bank level in regards to how much they can loan out....its not a way to get out of having to have strong reserves backing your currency The way I understand it. They don't have to have very much if any reserves in the bank to cover a huge amount of Dinars (debt notes). They can print them out of thin air without any reserve. That is the whole point. The oil in the ground and other resources are the only reserve they might need. And in a hundred years or so when the system collapses they should still have oil in the ground (or something else) to start the game over again. They need the money now. And one more thing. This is not just done on the commercial banking level. It is done by the Federal Reserve and the Treasury levels also. Edited May 27, 2012 by Doctor Smith 1 Link to comment Share on other sites More sharing options...
Maggie123 Posted May 27, 2012 Report Share Posted May 27, 2012 The way I understand it. They don't have to have very much if any reserves in the bank to cover a huge amount of Dinars (debt notes). They can print them out of thin air without any reserve. That is the whole point. The oil in the ground and other resources are the only reserve they might need. And in a hundred years or so when the system collapses they should still have oil in the ground (or something else) to start the game over again. They need the money now. And one more thing. This is not just done on the commercial banking level. It is done by the Federal Reserve and the Treasury levels also. Yup! You said it all Dr Smith and you are correct. If we are their "Teachers" then why wouldn't they feel free to print money out of thin air just like the Fed Reserve does. Plus they have more resources to back their dinar than we have backing our dollars! 1 Link to comment Share on other sites More sharing options...
keepmwlknfny Posted May 27, 2012 Report Share Posted May 27, 2012 But when they loan out the money they don't pay out cash. They mostly loan out for housing and other investments etc at the current value of the money. They mostly aren't loaning out the physical notes. For example. The bank buys a house with the Dinar and the signer pays interest on the loan. They don't physically give the money to the seller. They might not be....hard to say with Iraq being a heavy cash based society....but either way, they said they took the excess liquidity and funneled it right back into the economy...nothing was removed which is what was pushed so hard into peoples heads....that was the point I was making....and even though they did that a couple years ago, still to this day there is a big misconception on what they did... The way I understand it. They don't have to have very much if any reserves in the bank to cover a huge amount of Dinars (debt notes). They can print them out of thin air without any reserve. That is the whole point. The oil in the ground and other resources are the only reserve they might need. And in a hundred years or so when the system collapses they should still have oil in the ground (or something else) to start the game over again. They need the money now. And one more thing. This is not just done on the commercial banking level. It is done by the Federal Reserve and the Treasury levels also. Yes your right....there is like a 15% reserve requirement (could have changed) that the commercial banks must keep on hand in relation to what they loan out. This also expands the money supply and dilutes it even more. But its not the commercial banks that are responsible for backing the currencies value.....the total money supply is covered by the central bank. The central bank of Iraq does not use fractional banking with its foreign reserves. They dont lend out its reserves.....they are seperate from the capital reserves at the commercial level that allow those banks to loan out more then what they have on hand. The more that the commercial banks lend out, the more that the central bank has to back because its a liability. So when you want a loan do you go straight to the Fed reserve and ask them to loan you out money from our own international reserves? You cant even compare the US with the Fed reserve and UST to Iraq and their central bank.....they are completely different.....The USD is not a pegged currency....we have a different monetary policy.....With Iraq being a pegged currency they cant just keep printing money without adding to its reserves and declare whatever value they want.... Pegged currencies rely heavily on the reserves backing it.....The value of the USD is more so based on the faith people have it in and what it stands for...Iraq is far from having that kind of currency.... 3 3 Link to comment Share on other sites More sharing options...
catone Posted May 27, 2012 Report Share Posted May 27, 2012 The CBI does NOT need to have the same amount in reserves as it does to revalue at ANY rate, since so many countries holding dinar (or who will be after exchange) will use those monetary credits for oil and other "pieces of Iraq" (including land, other resources and the ISX). In some cases, Iraq is "paying forward" for infrastructure and other goods and services that the country is in desperate need of. The Central Banks of the countries exchanging dinar would be holding the dinar that they have exchanged for their national currencies. In the case of the US, the Treasury will use those notes to buy oil and (hopefully) reduce our outstanding debts, especially to China. China will then take the dinar, and since they are now paying for oil with yuan, convert the dinar to yuan and buy oil with them. Each and every national economy on this planet needs an infusion of capital, with a few exceptions, and the Central Banks in those countries will use the dinar for repayment of debt, purchasing, and negotiating, therefore all dinar exchanged will NOT reach the CBI to be "cashed in" using Iraq's reserves. Details of this monetary exchange are what has delayed this for so long, which is why the IMF has been so involved........Maliki and politics have really nothing to do with it. All the Bu** sh** about the politiico in Iraq has been nothng but smoke and mirrors, with a little Middle Eastern drama mixed in. Additionally, Iraq already has made arrangeents with various international countries for goods and services that the RV will pay those countries for. The IQD being an asset-backed currency guarantees this and anyone who thinks differently is, in the world of economics, incredibly naive. Just my 2-cents! :D 2 Link to comment Share on other sites More sharing options...
keepmwlknfny Posted May 27, 2012 Report Share Posted May 27, 2012 (edited) The CBI does NOT need to have the same amount in reserves as it does to revalue at ANY rate, since so many countries holding dinar (or who will be after exchange) will use those monetary credits for oil and other "pieces of Iraq" (including land, other resources and the ISX). In some cases, Iraq is "paying forward" for infrastructure and other goods and services that the country is in desperate need of. The Central Banks of the countries exchanging dinar would be holding the dinar that they have exchanged for their national currencies. In the case of the US, the Treasury will use those notes to buy oil and (hopefully) reduce our outstanding debts, especially to China. China will then take the dinar, and since they are now paying for oil with yuan, convert the dinar to yuan and buy oil with them. Each and every national economy on this planet needs an infusion of capital, with a few exceptions, and the Central Banks in those countries will use the dinar for repayment of debt, purchasing, and negotiating, therefore all dinar exchanged will NOT reach the CBI to be "cashed in" using Iraq's reserves. Details of this monetary exchange are what has delayed this for so long, which is why the IMF has been so involved........Maliki and politics have really nothing to do with it. All the Bu** sh** about the politiico in Iraq has been nothng but smoke and mirrors, with a little Middle Eastern drama mixed in. Additionally, Iraq already has made arrangeents with various international countries for goods and services that the RV will pay those countries for. The IQD being an asset-backed currency guarantees this and anyone who thinks differently is, in the world of economics, incredibly naive. Just my 2-cents! :D The dinar is asset backed....assets as in its international reserves.....thats what gives it, its value....the rest of what you said is all based on hope and random theories.... The dinars value is not based on the oil they have in the ground..... Edited May 27, 2012 by keepmwlknfny 2 3 Link to comment Share on other sites More sharing options...
catone Posted May 27, 2012 Report Share Posted May 27, 2012 :lol: Guess we'll see.......................!!!!!! 1 Link to comment Share on other sites More sharing options...
Sweetybird Posted May 28, 2012 Report Share Posted May 28, 2012 Yes this is exactly what we want. My thoughts exactly... leave those Zeros on... removing the zeros is not a good thing for us, no matter how many ways people try to spin it... no no Link to comment Share on other sites More sharing options...
alan_coaks_3 Posted May 28, 2012 Report Share Posted May 28, 2012 removing the zeros is not good for us, but it would benefit iraq and its Economy Link to comment Share on other sites More sharing options...
leesburg Posted May 28, 2012 Report Share Posted May 28, 2012 With fractional banking they only need the oil in the ground to back the Dinar. They now have double the cash reserves necessary to fully back the Dinar. .. so they get 30 trillion dinars worth a buck a piece .. because they have oil in the ground ...? lol then they just decide to kick back and export 50 barrels a year .. ... one a week .. with a two week vacation every year ? duh .. thanks for the money chief,,, send me over a boat load of cars and trucks if your not busy Link to comment Share on other sites More sharing options...
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