To educate those who feel the Iraq Dinar will LOP

[umbertino]

Not necessarily,but hey some enjoy the name calling & the talking down to that some here engage in. But to each his/her own,for me it's not enjoyable and detracts from the reason I come here. And just like everyone else I have the option of not participating,and I find myself doing such less & less.

I obviously didn't refer to the name calling but to the fact of having more voices, more opinions expressed ALSO by those you defined as " strong opinionated personalities"... As long as there's no name calling and offenses I think it's very healthy and constructive rather than a monolith opinion mainstream.

Very rarely the truth stands on one side only.

Edited June 4, 2012 by umbertino

[webup]

I got negged for asking when the US currency RDed and requested a link?

Step forward and take up the challenge. Don't hide.

Of course, I wouldn't be surprised and it would be completely understandable.

Where are they now? Back in the Rumors section?

[MrOptimistic]

Do you know that Iraq also suffered from hyperinflation?? It doesnt matter the cause....either way it was failed monetary policies. Turkey and Iraq both suffered from hyperinflation which also caused a low purchasing power, and inflated money supply.

Turkey got their inflation under control and when they got it down to 10% they finally lopped....its not a matter of what caused the hyperinflation....its just the simple fact of it happening and the after effects of that which I listed above.

Not to mention the many articles referring to following in the footsteps of other countries that lopped and specifically naming Turkey, Romania, and Brazil....

It seems as if you are unclear still on the topic....what questions can I answer or try to answer for you??

BUMPED!

Here we go! If they do as planned and make the iqd a fiat, reinstated to prewar rate 1979.

They can't pull in large notes with a "lop" and what do they want to do? Pull in large notes.

delete 3 zeros = dedollarize the country. They're not giving the full scoop just saying they plan to use their own currency for trade.

Was the U.S. Fighting a war in those other countries in your examples?

Iraq has become an asset for the U.S.

The picture here is bigger than a "lop"

Hope that helps you guys.

[keepmwlknfny]

BUMPED!

Here we go! If they do as planned and make the iqd a fiat, reinstated to prewar rate 1979.

They can't pull in large notes with a "lop" and what do they want to do? Pull in large notes.

delete 3 zeros = dedollarize the country. They're not giving the full scoop just saying they plan to use their own currency for trade.

Was the U.S. Fighting a war in those other countries in your examples?

Iraq has become an asset for the U.S.

The picture here is bigger than a "lop"

Hope that helps you guys.

What? You cant reinstate a value that was lost due to a failed monetary policy......it took years for the dinar to plummet and wont be fixed with a flip of the switch. They have a lot of work to do.

They surely can pull in large and small notes with a lop....thats what it does...replaces the entire currency. By replacing the currency, they do pull in ALL notes, large and small.....

Deleting the zeros (lop) will also help with de-dollarization....if you end up with a dinar on par with the USD, why wouldnt they use it??

Why does it matter if the US was fighting a war in those other countries?? It doesnt....not trying to be rude but I think you have been listening to the gurus and the "hype" a little too much. Iraq has become an asset for the US, but that does not even closely mean that they have to or will make us rich. Economics does come into play here.....

The CBI cant do much of anything until they take care of the inflated money supply and the only way they have been talking about dealing with it is by lopping....

[MrOptimistic]

What? You cant reinstate a value that was lost due to a failed monetary policy......it took years for the dinar to plummet and wont be fixed with a flip of the switch. They have a lot of work to do.

They surely can pull in large and small notes with a lop....thats what it does...replaces the entire currency. By replacing the currency, they do pull in ALL notes, large and small.....

Deleting the zeros (lop) will also help with de-dollarization....if you end up with a dinar on par with the USD, why wouldnt they use it??

Why does it matter if the US was fighting a war in those other countries?? It doesnt....not trying to be rude but I think you have been listening to the gurus and the "hype" a little too much. Iraq has become an asset for the US, but that does not even closely mean that they have to or will make us rich. Economics does come into play here.....

The CBI cant do much of anything until they take care of the inflated money supply and the only way they have been talking about dealing with it is by lopping....

Inflation doesn't matter if it's fiat that was the point.

Were those countries under import sanctions? Nope.

I do appreciate your views. We could go back and forth all day lol.

[keepmwlknfny]

Inflation doesn't matter if it's fiat that was the point.

Were those countries under import sanctions? Nope.

I do appreciate your views. We could go back and forth all day lol.

You do understand that the dinar is a pegged currency right? Pegged currencies rely heavily on its reserves to back the value....thats why the dinar dropped. They spent all the reserves, and just kept printing more and more dinar. Thats why the value went down the toilet....doesnt matter if its a fiat currency...it doesnt change the past and the giant hole they have to dig themselves out of.

The dinar is not the USD....hell, no other currency could get away with the nonsense that we have with our dollar. I think there is a big misconception that since the US is able to just print money out of thin air (and massive amounts) that any other country can do the same but thats not how it works.

It also doesnt matter if those countries were under sanctions either. That has no bearing on whether Iraq can/will/should lop....just the simple fact of making bad decisions that hurt themselves.

There are reasons why the CBI has grouped themselves along with the likes of Turkey, Russia, Brazil and others.....because they all suffered from hyperinflation, their currency suffered from a low purchasing power because of it, and they all ended up printing massive amounts of currency, inflating the money supply....

[rockfl9]

iraq must RD to promote internal commerce.. Look at it this way IF a dollar bill was worth .1 cent and you sent your child to buy a $1990 loaf of bread and all you had was a 25000 bill ?? Well I hope you see the problem!!

If you want to buy something expensive like a TV today it would be done in USD!

Merchants have to deal in both currencies... a 1000:1 rv would solve that problem and be manageable by the local populace.

Not what the dinarians want , but a necissity to advance their economy .. that may actually enhance the value of the dinar.

[dinaris4me]

Inflation doesn't matter if it's fiat that was the point.

Were those countries under import sanctions? Nope.

I do appreciate your views. We could go back and forth all day lol.

If they changed monetary policy and went to a fiat currency the IQD would then be valued based on what people believed it to be worth and typically a fiat currency's value is determined by the amount in circulation as a ratio to the countries GDP. Currently Iraq's GDP is roughly 110 Billion annually and their M2 is roughly 70 Trillion. Now compare that to the US where our GDP is roughly 14 Trillion and our M2 is roughly 9 Trillion. If you compare these two do you think the IQD would be valued on par with the US dollar?

They are currently on a crawling peg that they back at 100%.

[RRSport]

So what happened to Mr Threadstarter who came to educate us morons on why it wont LOP?

[umbertino]

So what happened to Mr Threadstarter who came to educate us morons on why it wont LOP?

He got lopped?

[WorkerBee]

It's hard for me to fathom how two opposing views can exist when reading about introducing small denominations. On one hand it means the value of the dinar has increased so much that you can't buy smaller items with the IQD currently in existance, as there is no way to make change. So they'll have to print smaller bills and coins so you can buy a coke. .If you are of the mindset that the average Iraqi doesn't have any money then an RV would not produce any major socioeconomic changes to their economy, ok I get that. But shopkeepers do deal in cash, and you may have a hard time finding a store open because the owners have closed up and gone on vacation with their windfall leaving their poor neighbors thirsty. Proof that Introducing smaller denoms equals an RV. Over simplified I know.

On the other hand, considering how much dinar is currently in circulation, and all those zeros making accounting a nightmare they RD. Everything gets lopped, money, bank accounts, cost of goods, loan balances, loan payments, etc. This would cause a need to produce a new class of currency which introduces the new lower denoms so you can still buy a coke. In this scenario, everyone is still in the same economic situation before and after an RD. The benefits are equal to all citizens, no one will profit more than another (except maybe corrupt politicans) everyone stays on equal footing. Proof that introducing smaller denoms equals an RD. Over simplified I know.

My thoughts are a straight up RV could never happen but here's to hoping that Iraq will come up with a hybrid solution to their money woes.

[jackster]

So what happened to Mr Threadstarter who came to educate us morons on why it wont LOP?

He either just wanted to stir things up a bit, or realized that us adults are smarter than he originally thought.

He ran away after he wet himself.

[sandstorm]

He either just wanted to stir things up a bit, or realized that us adults are smarter than he originally thought.

He ran away after he wet himself.

The people who think it will lop, have a reason. its because theyve researched and studied and know the possibility in and out. the people who are educating everyone on why it wont lop, just havent studied the possibility enough and are embarrassing themselves by lack of information. whats funny, because after a few responses their smart enough to start putting it together and it sinks in. then they vanish like a ghost

[jackster]

The people who think it will lop, have a reason. its because theyve researched and studied and know the possibility in and out. the people who are educating everyone on why it wont lop, just havent studied the possibility enough and are embarrassing themselves by lack of information. whats funny, because after a few responses their smart enough to start putting it together and it sinks in. then they vanish like a ghost

You got it.

And the ones not smart enough just keep coming back.

[MrOptimistic]

whats a lop? who keeps making up definitions? thats right.. the "loppers" because they compare apples with bananas!

[doctor robbins]

whats a lop? who keeps making up definitions? thats right.. the "loppers" because they compare apples with bananas!

Nobody's making anything up when it comes to lopping. Countries have been doing this for a hundred years after periods of hyperinflation. If anybody is making anything up it's these gurus who say Iraq is going to RV the dinar a thousand times more than its worth now.

[jackster]

whats a lop? who keeps making up definitions? thats right.. the "loppers" because they compare apples with bananas!

Wow! Great argument. That'll shut up all the lopsters for sure.

I mean really, apples with bananas? If you had used "apples and oranges", then you'd left yourself wide open in the LOP discussion.

That was heads-up using bananas instead of oranges.

Watch out you Lopsters! MrOpt has got your number!

[sandstorm]

Wow! Great argument. That'll shut up all the lopsters for sure.

I mean really, apples with bananas? If you had used "apples and oranges", then you'd left yourself wide open in the LOP discussion.

That was heads-up using bananas instead of oranges.

Watch out you Lopsters! MrOpt has got your number!

Theres no need to debate the uneducated. They just dont know the truth about what it is or why its done. the lop education 101 title is so embarrassing to whoever started this topic. You can see all the b.s. they have been fed on why it wont happen. Its like they copied and pasted from a dinar site. The gurus like kaperoni, type up an exposee on why it wont lop, yet they describe a lop to a tee, only to makepeople think a lop is a rv. what a magical scheme. the cbi has been talking about a lop for almost three years, with daily articles and somehow the gurus have successfully fooled people into thinking its a rv. i thought at this point most would know, but im wrong.

[MrOptimistic]

Nobody's making anything up when it comes to lopping. Countries have been doing this for a hundred years after periods of hyperinflation. If anybody is making anything up it's these gurus who say Iraq is going to RV the dinar a thousand times more than its worth now.

If another country invaded my land and set the exchange rate for my currency then withdrew from my newly soveirgn country, I would Revalue my artificially programed rate to reflect the true value based on my largest assets. Clearly Iraq has been stocking up and preparing for this. Saddam really destroyed that country unfortunately.. But... With advances in communication and technology it takes half as long to rebuild a country these days compared to 60 years ago. Iraq has been rebuilding and has had a whopping 80% debt reduction. They don't really owe anyone except for a few neighbours. They have cash reserves, gold, and oil with a population of 30 million. Europe and US taught them to crawl, but now Iraq is learning to walk on their own. My belief is that Iraq will increase the exchange rate once they finalize trade partners and work on expanding their sectors. The rate would be greater than 1. idk where people get these $42 and $12 rates lol. But no doubt in my mind says it will be greater than 1-1.

They have talked about wanting to keep the face value during the RD process.

Guess we will find out soon though! It seems like progress is being made and the tariffs are in place. Now we wait and see! These next two months will be fun.

[dinarck]

If another country invaded my land and set the exchange rate for my currency then withdrew from my newly soveirgn country, I would Revalue my artificially programed rate to reflect the true value based on my largest assets. Clearly Iraq has been stocking up and preparing for this. Saddam really destroyed that country unfortunately.. But... With advances in communication and technology it takes half as long to rebuild a country these days compared to 60 years ago. Iraq has been rebuilding and has had a whopping 80% debt reduction. They don't really owe anyone except for a few neighbours. They have cash reserves, gold, and oil with a population of 30 million. Europe and US taught them to crawl, but now Iraq is learning to walk on their own. My belief is that Iraq will increase the exchange rate once they finalize trade partners and work on expanding their sectors. The rate would be greater than 1. idk where people get these $42 and $12 rates lol. But no doubt in my mind says it will be greater than 1-1.

They have talked about wanting to keep the face value during the RD process.

Guess we will find out soon though! It seems like progress is being made and the tariffs are in place. Now we wait and see! These next two months will be fun.

How will they ”come out” at a ”rate” greater than a dollar with a M2 of near 70 trillion?

[MrFnHappy]

How will they ”come out” at a ”rate” greater than a dollar with a M2 of near 70 trillion?

That doesn't matter.....don'tcha know the Iraqis are magicians, that's why everything is "smoke and mirrors" that comes out of Iraq. When the time comes Shabibi is going to pull the RV out of his hat.....or something else with a hole.

[caz1104]

Theres no need to debate the uneducated. They just dont know the truth about what it is or why its done. the lop education 101 title is so embarrassing to whoever started this topic. You can see all the b.s. they have been fed on why it wont happen. Its like they copied and pasted from a dinar site. The gurus like kaperoni, type up an exposee on why it wont lop, yet they describe a lop to a tee, only to makepeople think a lop is a rv. what a magical scheme. the cbi has been talking about a lop for almost three years, with daily articles and somehow the gurus have successfully fooled people into thinking its a rv. i thought at this point most would know, but im wrong.

Are you one of the "successfully fooled people" of which you speak? Or did you not ever purchase dinar? Just wondering seeing as you obviously with your percieved intelligence would'nt have been easily led into believing of a RV..................................right?

[doctor robbins]

If another country invaded my land and set the exchange rate for my currency then withdrew from my newly soveirgn country, I would Revalue my artificially programed rate to reflect the true value based on my largest assets. Clearly Iraq has been stocking up and preparing for this. Saddam really destroyed that country unfortunately.. But... With advances in communication and technology it takes half as long to rebuild a country these days compared to 60 years ago. Iraq has been rebuilding and has had a whopping 80% debt reduction. They don't really owe anyone except for a few neighbours. They have cash reserves, gold, and oil with a population of 30 million. Europe and US taught them to crawl, but now Iraq is learning to walk on their own. My belief is that Iraq will increase the exchange rate once they finalize trade partners and work on expanding their sectors. The rate would be greater than 1. idk where people get these $42 and $12 rates lol. But no doubt in my mind says it will be greater than 1-1.

They have talked about wanting to keep the face value during the RD process.

Guess we will find out soon though! It seems like progress is being made and the tariffs are in place. Now we wait and see! These next two months will be fun.

The US didn't set the exchange rate. The CBI set it and has continued to adjust it over the past 8 years. And there's nothing artificial about it. Like Diarck says their M2 is 70 tr.

[dinarck]

Are you one of the "successfully fooled people" of which you speak? Or did you not ever purchase dinar? Just wondering seeing as you obviously with your percieved intelligence would'nt have been easily led into believing of a RV..................................right?

Maybe he was led to ” hurry up and buy before its too late” by Dinar hypsters. Do you know any of those caz?

[caz1104]

Maybe he was led to ” hurry up and buy before its too late” by Dinar hypsters. Do you know any of those caz?

IF what you say is true..................................I have acres of ocean front property in the desert I can sell REAL cheap.Buuuuuuuuuuuut you got to" hurry up and buy before it's too late"! Hmmmmmmmmmmmm real intelligent folk surely would'nt use such a lame excuse would they? I didn't want to respond as I promised but you kept comin at me. Take care Dinarck

Edited June 12, 2012 by caz1104