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SWFloridaGuy
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It's midnight and we're chatting on a dinar blog. So, my question to those who think there is no chance of this happening anytime soon is: Why chat here rather than E Harmony if you're just lonely? Did you know E Harmony is advertising a free weekend? I understand the frustration with the hypers and the pumpers who feel the need to call the RV every day and are the propulsion for false hope, but there's gotta be a balance between hype and simply coming onto a dinar blog to say the RV will never happen. I'm always up for a debate and when someone comes with the facts to back up their claims, I'm willing to auscult and appreciate any arguement but when it's midnight and people only want to shoot down hope for a revaluation I'm over here thinking, if I direct them to E Harmony they'll probably tell everyone in that chat that marriage is also just a hopeless endeavor. Cheers everyone, keep the faith and eventually we'll cross the finish line together. :)

SWFG,

:thanks for the article and please don't let them run you :) :)

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It still puzzles me how 27 Trillion reduced to 27 Billion IQD will RV. Over 27 Trillion Rved at $1 USD would be more than all the currencies in all the world combined.

Better yet...take 27 Trillion IQD then multply it by 1,000.

Does Iraq really have that much worth, more than the entire global economies? Can Iraq prop up the world?

Can someone explain why this is a full RV & not a LOP or a combination of the two?

Not being a hard***. Not disagreeing. Are we being shown the whole picture? Will this be a tiered RV favoring only the elete?

These are all legit & fair questions.

Please, no negs just your best & honest opinions.

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The dinar will not be a anchor currency .....they don't have enough trade instruments for that .......all they sale too the world is oil .......if any new reserve currency comes out it will be a global non country barring instrument ......(SDR)......not the Iraqi dinar. .......now country's might hold the dinar too buy oil if for some strange reason the dollar just all the sudden S#!t cans and disappears from the planet and............ WE allow oil too be bought for dinar.....but that is not going to happen any time soon ......

There are 1 trillion dollar notes on the planet at any given time ......but America is worth O around 300 trillion dollars in asset wealth .....and another 500 trillion per year reconstatuional wealth (the people)

Iraq is worth with the people a total as of now around 100 trillion .....and that is ticking away with every jug of oil they sale

"The dinar will not be a anchor currency"

I can't believe he said that. Dammit! Randall and I agree on something. I won't be able to sleep tonight.

It's midnight and we're chatting on a dinar blog. So, my question to those who think there is no chance of this happening anytime soon is: Why chat here rather than E Harmony if you're just lonely? Did you know E Harmony is advertising a free weekend? I understand the frustration with the hypers and the pumpers who feel the need to call the RV every day and are the propulsion for false hope, but there's gotta be a balance between hype and simply coming onto a dinar blog to say the RV will never happen. I'm always up for a debate and when someone comes with the facts to back up their claims, I'm willing to auscult and appreciate any arguement but when it's midnight and people only want to shoot down hope for a revaluation I'm over here thinking, if I direct them to E Harmony they'll probably tell everyone in that chat that marriage is also just a hopeless endeavor. Cheers everyone, keep the faith and eventually we'll cross the finish line together. :)

That's at least the second time you've referenced a dating site in this forum. You're running out of anecdotes.

Easyrider believes that marriage is a hopeless endeavor. I read that post of his somewhere in here.

It's not midnight where I'm at.

They are years from being a world power

Every man woman and child in america .....by the time they get out of high school ......are worth about .....100,000 - 200,000 dollars worth of education .......that's befor collage ......that = 35- 70 trillion right there in overall wealth too the nation

All it takes is a couple of zuckerburgs to put it thru the roof

Years? Try decades. If ever.

Anytime someone refers to the RV, I see you comment on the LOP. I'd appreciate on how you intend on making a profit on the dinar you hold if your not expecting an RV?

Got beat up on one of his own threads and now all of the sudden shows up.

That thread you started was a terrible drive-by. You should have stuck around longer for the grilling.

We're gonna sell it as rolling paper for medical marijuana. The toilet paper project caused too much chafing.

How long have you had dinar ............I'm at 9 years ......and have been expecting the RV for the past 4 .....every week.....for 4 years .....and it just keeps getting pushed back ......

I know for a fact this was a done deal at the beginning of the year ............but as normal they dropped the ball Agian .........and it will RV in the coming months that's a given it has too for them to exist .........and contrary to popular believe ....they can't use the dollar after June ...to buy there goods in country ......so either they **** it off at 1000 to 1 and deal for the next 3 years ............or 1 to 1 for the next 3 years ........but either way they have to do one or the other ......and that's international law

Research Dubia ......they drug there feet and have been at 1 to 3.60 for almost 10 years now. ..........

"...in the coming months..." It that 2 months or 3? Can I quote you?

And I do recall you saying something about the IQD reinstating(?) or something to that affect on June 15. 2 more days. Can't wait.

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I didn't even take a moment to comment on SWFlorida's post of Macaroni.

Can we say cheezy?

SWF was the messenger so I won't shoot him.

When I read Kap's statement "...they would not come close to paying off the war debt of 800 billion...", I just shook my head. I'll just say that I disagree. No other points, facts, evidence, etc. from me. Nothing. I think I'm just tired.

Keepm and doctor robbins got negged to death by you guys. msmortgagewiz was being merciful to keepm. My hat's off to you.

SWFlorida performs, at most, a cut-n-paste and everyone wants to carry his baby. You're doing well in here, SWF. The self-portrait in your profile doesn't hurt your cause, either.

If anyone is interested, I'll be performing at the Improv every night through the weekend. 2 drink minimum. 4 drink minimum if you want to be entertained.

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It still puzzles me how 27 Trillion reduced to 27 Billion IQD will RV. Over 27 Trillion Rved at $1 USD would be more than all the currencies in all the world combined.

Better yet...take 27 Trillion IQD then multply it by 1,000.

Does Iraq really have that much worth, more than the entire global economies? Can Iraq prop up the world?

Can someone explain why this is a full RV & not a LOP or a combination of the two?

Not being a hard***. Not disagreeing. Are we being shown the whole picture? Will this be a tiered RV favoring only the elete?

These are all legit & fair questions.

Please, no negs just your best & honest opinions.

Does no one want to quote this because these questions are scary? Because they need to be asked?

I want an RV very badly. My parents are in a horrible situation now, as are MANY retiree's who cant work, or cant get jobs because of there age.

It looks like Im going to have ot support my parents for the rest of there lives if no RV happens. I dont mind it, I love my folks. But what about me?

Im 37, divorced with a child a state away without a job at the moment. How do I do this? I dunno.

Im just telling you about my situation, and that indeed I want/need/would love an RV.

BUT there are questions to be asked, and not a whole lot of answers.

If a new's article out of Iraq says they will LOP then why do people NOT believe it? Because they want an RV?

I keep telling my mother it could go either way, but then she sits for hours reading posts about the RV and tells me to make plans.

I really have no idea what I will say to her, or how I will get her past the depression of a LOP.

Like everyone else I just want to know whats going on.

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The Iraq war was an illegal war. Iraq didn't ask to be liberated, bombed & leveled. Iraq owes the USA nothing. Nothing.

The arguement that Iraq owes the USA $Billions & therefore must RV to pay it's debts don't hold water.

Listen to the statements coming from the Shabs. Neve rmind the Gurus. It's going to be a combination of a LOP, RV & a managed float.

Anytime someone refers to the RV, I see you comment on the LOP. I'd appreciate on how you intend on making a profit on the dinar you hold if your not expecting an RV?

There is still plenty of money to be made on a combined hybrid partial LOP, RV & managed float.

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  • 2 weeks later...

Does no one want to quote this because these questions are scary? Because they need to be asked?

I want an RV very badly. My parents are in a horrible situation now, as are MANY retiree's who cant work, or cant get jobs because of there age.

It looks like Im going to have ot support my parents for the rest of there lives if no RV happens. I dont mind it, I love my folks. But what about me?

Im 37, divorced with a child a state away without a job at the moment. How do I do this? I dunno.

Im just telling you about my situation, and that indeed I want/need/would love an RV.

BUT there are questions to be asked, and not a whole lot of answers.

If a new's article out of Iraq says they will LOP then why do people NOT believe it? Because they want an RV?

I keep telling my mother it could go either way, but then she sits for hours reading posts about the RV and tells me to make plans.

I really have no idea what I will say to her, or how I will get her past the depression of a LOP.

Like everyone else I just want to know whats going on.

This article confirms a LOP. They used to talk raise or lift the zeros. They mention removal of the zeros several times in the article.

Parliament & Finance Committee support Revalue Of Iraqi Dinar.

Posted: June 25, 2012 in Iraqi Dinar/Politics.

ERBIL, June 25 (AKnews) – The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it.

Read more. See link below...

http://bit.ly/Ojw2CV

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This article confirms a LOP. They used to talk raise or lift the zeros. They mention removal of the zeros several times in the article.

Parliament & Finance Committee support Revalue Of Iraqi Dinar.

Posted: June 25, 2012 in Iraqi Dinar/Politics.

ERBIL, June 25 (AKnews) – The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it.

Read more. See link below...

http://bit.ly/Ojw2CV

Thanks for the article.

I have a question though.

If the smallest current note in use is the 250 dinar note.

From Article

The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20

.And the highest current dinar note is the 25,000 note.

So according to the article All the three zero notes will be removed from circulation over two years.

Then logically the next highest zero note left in circulation would be the 500 dinar note ?

So if i read the below correctly, the largest of the new bills without 3 zeros will be worth $180 ?

According to Najeeba,

the process of removing the zeros from the Iraqi Dinar will be implemented over a period of two years through governmental banks.

Also, the new currency will include small bills and coins as well as large bills equaling about $180 each

So assuming that is the case. The 500 dinar divided by 180 dollars = approx 28 cents per dinar.

Am i way off the mark here?

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I didn't even take a moment to comment on SWFlorida's post of Macaroni.

Can we say cheezy?

SWF was the messenger so I won't shoot him.

When I read Kap's statement "...they would not come close to paying off the war debt of 800 billion...", I just shook my head. I'll just say that I disagree. No other points, facts, evidence, etc. from me. Nothing. I think I'm just tired.

Keepm and doctor robbins got negged to death by you guys. msmortgagewiz was being merciful to keepm. My hat's off to you.

SWFlorida performs, at most, a cut-n-paste and everyone wants to carry his baby. You're doing well in here, SWF. The self-portrait in your profile doesn't hurt your cause, either.

If anyone is interested, I'll be performing at the Improv every night through the weekend. 2 drink minimum. 4 drink minimum if you want to be entertained.

Yeah lemme know how your standup career goes. You're a real riot.

Do you and Keep dance together at parties? Who leads?

:lol:

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I didn't even take a moment to comment on SWFlorida's post of Macaroni.

Can we say cheezy?

SWF was the messenger so I won't shoot him.

When I read Kap's statement "...they would not come close to paying off the war debt of 800 billion...", I just shook my head. I'll just say that I disagree. No other points, facts, evidence, etc. from me. Nothing. I think I'm just tired.

Keepm and doctor robbins got negged to death by you guys. msmortgagewiz was being merciful to keepm. My hat's off to you.

SWFlorida performs, at most, a cut-n-paste and everyone wants to carry his baby. You're doing well in here, SWF. The self-portrait in your profile doesn't hurt your cause, either.

If anyone is interested, I'll be performing at the Improv every night through the weekend. 2 drink minimum. 4 drink minimum if you want to be entertained.

Walmart has a Improv section?......................hmmmmmmmmmmmm well okay then.tongue.gif

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Typical kap krap. Iraq doesn't have to pay for the war and they can't support a $1 RV without lopping first.

and you know this how? its amazing everyone thinks iraq has to lop one thing people forget this is a complete different deal than say turkey they didnt have the u.n. force down their rate to worthless paper like they did iraq for one thing and another thing you tell me the purpose why they allowed to let so much of their currency go outside their country because this has been planned for years look up the iraq project this isnt nothing like another country that has lopped and what kap has spoke of is whats gonna happen i notice all these loppers commenting on a dinar site hmmm tells me they must be invested or they wouldnt waste their time posting i know i wouldnt

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and you know this how? its amazing everyone thinks iraq has to lop one thing people forget this is a complete different deal than say turkey they didnt have the u.n. force down their rate to worthless paper like they did iraq for one thing and another thing you tell me the purpose why they allowed to let so much of their currency go outside their country because this has been planned for years look up the iraq project this isnt nothing like another country that has lopped and what kap has spoke of is whats gonna happen i notice all these loppers commenting on a dinar site hmmm tells me they must be invested or they wouldnt waste their time posting i know i wouldnt

I know this because I can read. Iraq has 72 trillion dinar that they are backing with their foreign currency reserves. Unless their reserves instantly grow from $62 billion to $72 trillion they can't support a $1 RV. And no, the UN didn't force the dinar's rate down to where it is today. That's a result of hyperinflation going back to 1995.

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6-2-2012 Kaperoni: Is a LOP or Redenomination possible? Let’s go with the full 27 trillion dinar in circulation. If they LOP or re-denominate 27 trillion to 27 billion (delete 3 zeros) and gave it all to the US, they would not come close to paying off the war debt of 800 billion and climbing. Only a RV will solve the financial expense. Only a RV will pay off the kind of global debt. Now lets look a bit closer on where the dinar will go post RV. Can Iraq collect it and pay for it? I don’t think that this the plan. “Experts regard financial ambition that the Iraqi dinar is adopted as part of international reserves, through the establishment of a strong economy boosts value of local currency.” Here we have the first statement which appears to disclose the plan for the dinar. The dinar that was “leaked or sold” outside of iraq. Pretty clear..”adopted as part of international reserves.” Saleh: "the Iraqi dinar is not an international reserve currency to be treated abroad, we aspire to be the monetary policy of the Iraqi dinar portion of international reserves and this needs to be a long time." So he is saying here. The Dinar will not he bought or sold overseas. That will be done by the CBI. The CBI will control the monetary policy. The dinar held in international reserves will stay there for a “very long time.” Clearly telling us, once again that banks/feds hold this dinar will use it simply as a reserve currency. A currency held for a “long time.” The CBI will be the Central Bank for the dinar handling the monetary policy. And once they RV, the dinar will become an international reserve currency (as the dinar you and I own is collected and held). “The member of the Economic Commission parliamentary: the idea is now up to the deletion of three zeros of the Iraqi currency, and this project will hopefully contribute to give power to the Iraqi currency to foreign dealings.” They just gave us the answers we wanted. When will it become a foreign reserve currency? The answer is clear, that once they “delete 3 zeros” that will start the process (collection) to create the foreign reserves “they aspire to be part of.” As well we see they want to “give power” to the Iraqi currency internationally. Only a RV can accomplish this. “Saturday: "it is obvious that Iraq is capable of adopting the dinar as part of international reserves, especially large resource he possesses in the oil sector and over (80 to 90) billion dollars of Central Bank reserves and the positive impact on the Iraqi currency against the greenback and makes well-placed dinar as formerly among world currencies.” Wow! This quote is very powerful. They are saying the dinar will be very strong, have a positive impact against other currencies (causing them to be strong). More of the plan is coming out. “The Central Bank adviser said in an earlier statement to the news agency of news "that the Iraqi dinar is not an international reserve currency to be treated abroad, we aspire to be the monetary policy of the Iraqi dinar portion of reserves and this needs to be a long time.” “He pointed to: that the goal of central bank policy at the moment is the stability of the exchange rate of the dinar against the U.S. dollar , Our goal in the long run be equal to it being a process need to be a strong economy and inflation is low and a cash reserve large.” “Jubouri said in an earlier statement: The approach undertaken by the central bank retention rate of the dinar against the dollar during the current indication that monetary policy in the country able to make the dinar equivalent of the U.S. dollar.” These 3 quotes…tell us the dinar is now (the CBI feels) a “hard currency.” That the goal is to make the dinar equal to the USD. Or 1 to 1. Therefore, we now see the rate. Not some foolish rate, but a rate comparable to the US dollar. Hard currency (also known as a safe-haven currency or strong currency), in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value. Factors contributing to a currency's hard status might include the long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank. This definition falls in line with the plan. What the other statement meant. What the plan is for the New Iraqi Dinar. This event will “increase the confidence and international credibility in Iraqi currency” Next time someone gives you a huge bogus rate, show them the facts. Show them the desire of the Central Bank of Iraq. When you follow the facts, you get the real story. I hope it helps.

First of all, Debts (especially government debts) are very rarely, if ever, payed off in full. Minimum payments are made, kind of like some people and their credit cards, car payments, house payments, etc...

Dinar Reserve Currency: This is a little far fetched to say the least. There is certain criteria that must be met. Here are just a few items:

  • Low Inflation & Stable Economy (Iraq has been getting their inflation under control but definitely does not have a "stable" economy on a global scale)
  • A LARGE economy (Iraq's economy is TINY coming in at a little over $100 Billion USD, in fact, that is a joke on a global scale)
  • Financial depth, i.e., large market capitalizaton (the total value of securities issued within its borders), substantial availability of securities for trade on the securities markets, and a non-politicized banking system (Nowhere Close!)

  • A good regulatory framework and strong rule of law (they haven't even seated their entire government after over 2 years...)

  • Network externalities, "which include various international uses [for the country's currency], for example, for pricing, invoicing, or transactions outside the country" (95% exports, not much demand for IQD on an international level)

Also, keep in mind that a reserve currency, or anchor currency, is a currency that is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, and commodities such as Oil, Gold, etc... What is ironic about this is that Iraq is using the USD, EUR, and GBP as THEIR reserves. Not the other way around... We have only heard RUMORS about Governments holding massive amounts of IQD, there is no proof that they are holding IQD. But one thing is for sure, if we are, and they RV their currency, it would look very bad as that would be considered war profiteering!

What currency is Oil priced in? USD (Petrodollar) This is huge!

Where are the main Gold & Commodity Exchanges? Well, we have the CME, NYMEX, LME, you know what, I'm not going to list them all. Here is a list: http://www.indexmund...round-the-world But the bottom line is, Iraq doesn't have an international commodity exchange. US, Canada, Brazil, London, China, Japan, Australia all have major commodity exchanges. The biggest being US and London. *China actually launched the Shanghai Gold Exchange in 2002. This was after a solid 3 decades of rapid growing and expansion throughout their entire country. Wonder why it took them 30 years to even get that far...

Let's talk about their money supply real quick. Iraq has an M1 of roughly 30 Trillion and an M2 of about 70 Trillion or so. If they re-denominate that would take them down to about 30 Billion IQD in circulation. People wonder how can they survive off of only 30 Billion? Well first of all, they have been surviving just fine at this rate for the past 10 years. Actually, they have been increasing their money supply every year so they were operating with less than that for most of the past decade. But it's actually pretty simple, they will operate and grow the same way other countries operate. You print more money as your economy grows expanding the money supply, but in a controlled manner. This is actually known as Expansionary Monetary Policy.

I'm going to copy/paste some important information regarding Central Banks below. I actually posted this yesterday but it was in a "LOP" discussion so most probably didn't get a chance to review the info. This is important so please try and soak in as much as possible. Read over it again if you need to!

Any Central Bank's main goal is to keep inflation in check, even if they don't come out and directly say it most CB's try to keep inflation at or around 2%. To do this, they use the monetary tools at their disposal, contractionary and expansionary policy. In Iraq's case, they have been using more "expansionary" monetary policies by printing more and more Dinar. Ultimately the value of the IQD is up to the CBI, period. The biggest problem with a significant overnight RV is that it goes against everything a Central Bank stands for as a CB's main goal is to keep inflation in check, they can't do this if 100,000% increases or decreases hit their currency instantaneous! It will crash their currency!

Central banks and monetary policy go hand-in-hand, so you can't talk about one without talking about the other.

While some of these mandates and goals are shared by the different central banks. Central banks have their own unique set of goals brought on by their distinctive economies.

Ultimately, monetary policy boils down to promoting and maintaining price stability and economic growth.

To achieve their goals, central banks use monetary policy mainly to control the following:

  • *the interest rates tied to the cost of money,
  • *the rise in inflation,
  • *the money supply,
  • *reserve requirements over banks,
  • *discount window lending to commercial banks

Types of Monetary Policy:

Monetary policy can be referred to in a couple different ways. Contractionary or restrictive monetary policy takes place if it reduces the size of the money supply. It can also occur with the raising of interest rates. The idea here is to slow economic growth with the high interest rates. Borrowing money becomes harder and more expensive, which reduces spending and investment by both consumers and businesses.

Expansionary monetary policy, on the other hand, expands or increases the money supply, or decreases the interest rate. The cost of borrowing money goes down in hopes that spending and investment will go up.

Accommodative monetary policy aims to create economic growth by lowering the interest rate, whereas tight monetary policy is set to reduce inflation or restrain economic growth by raising interest rates.

Finally, neutral monetary policy

intends to neither create growth nor fight inflation.

The important thing to remember about inflation is that central banks usually have an inflation target in mind, say 2%. They might not come out and say it specifically, but their monetary policies all operate and focus on reaching this comfort zone. They know that some inflation is a good thing, but out-of-control inflation can remove the confidence people have in their economy, their job, and ultimately, their money. By having target inflation levels, central banks help market participants better understand how they (the central bankers) will deal with the current economic landscape.

Let's take a look at an example.

Back in January of 2010, inflation in the U.K. shot up to 3.5% from 2.9% in just one month. With a target inflation rate of 2%, the new 3.5% rate was well above the Bank of England's comfort zone. Mervyn King, the governor of the BOE, followed up the report by reassuring people that temporary factors caused the sudden jump, and that the current inflation rate would fall in the near term with minimal action from the BOE. Whether or not his statements turned out to be true is not the point here. We just want to show that the market is in a better place when it knows why the central bank does or doesn't do something in relation to its target interest rate.

Simply put, traders like stability.

Central banks like stability.

Economies like stability. Knowing that inflation targets exist will help a trader to understand why a central bank does what it does.

A currency's interest rate is probably the biggest factor in determining the perceived value of a currency. So knowing how a country's central bank sets its monetary policy, such as interest rate decisions, is a crucial thing to wrap your head around.

One of the biggest influences on a central bank's interest rate decision is price stability, or "inflation". Inflation is a steady increase in the prices of goods and services. Inflation is the reason why your parents or your parents' parents paid a nickel for a soda pop in the 1920's, but now people pay twenty times more for the same product. It's generally accepted that moderate inflation comes with economic growth.

*However, too much inflation can harm an economy and that's why central banks are always keeping a watchful eye on inflation-related economic indicators, such as the CPI and PCE.

On to the next point. Kap says: the Dinar will not be bought or sold overseas. That will be done by the CBI. The CBI will control the monetary policy. The dinar held in international reserves will stay there for a “very long time.” Clearly telling us, once again that banks/feds hold this dinar will use it simply as a reserve currency. A currency held for a “long time.”

How does a Reserve Currency not get bought and sold overseas? Of course the CBI will control the monetary policy, that is what a Central Bank does, in every country, with no exception. Please refer to the above info if you are still not clear about that. I'm wondering who else does Kap think would control the monetary policy of a particular country?

The "RV" will not accomplish giving the IQD Reserve Currency status. If all of a sudden 70 Billion M2 money supply turned into 70 Trillion overnight, it would instantly send that country into an Ultra Hyper-Inflated state, period! What is one of the main goal's of a Central Bank? Maintaining price stability and economic growth. How do you maintain price stability with a 100,000% overnight increase on everything in your country's economy?

I'm not going to expand on the rest of what Kap says in the original article as I have already covered the main points above. Hope this helps at least one person realize that they shouldn't listen to anything and everything a self-proclaimed Dinar gurus says. Unless of course it is for entertainment purposes only.

Bottom Line: If Iraq wishes to have their currency as a Reserve Currency there is A LOT of work that needs to be done. This kind of thing can't happen over night, hell, it can't happen in 20 years! I have listed some of the main criteria for a Reserve Currency towards the top of my post. Think hard about what a Reserve Currency needs and if Iraq fits that criteria or not. Unless you are banking on the collapse of our entire global financial system then it would be foolish to think that the IQD will be a Reserve Currency anytime soon. If YOU ARE banking on the collapse of our world's financial system, then best of luck to you. I would say forget about paper currency, go get some guns, ammo, food, water, and fuel. Also might want to learn a few survival skills! wink.gif

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It still puzzles me how 27 Trillion reduced to 27 Billion IQD will RV. Over 27 Trillion Rved at $1 USD would be more than all the currencies in all the world combined.

Better yet...take 27 Trillion IQD then multply it by 1,000.

Does Iraq really have that much worth, more than the entire global economies? Can Iraq prop up the world?

Can someone explain why this is a full RV & not a LOP or a combination of the two?

Not being a hard***. Not disagreeing. Are we being shown the whole picture? Will this be a tiered RV favoring only the elete?

These are all legit & fair questions.

Please, no negs just your best & honest opinions.

Here is the best answer I can think of for your question: By the way, for anybody who has seen this post I'm sorry. But I think it speaks for itself and there was no reason to "re-invent the wheel" in regards to this question.

**Iraq M2 of 70 Trillion**

I then compare the 70 trillion to a 1:1 RV which would equal 70 Trillion USD.

M3 Money Supply for Selected Countries:

When considering M3, the total money supply (of the world) exceeds US$50.1 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 66.2% of the total. The following graph shows a cross-country comparison for M3.

What I am wondering is how does Iraq, a war torn country, come out of the gate with a newly revalued currency which now equals more than every other country combined? Iraq's currency would now be worth twice of that of the USA, the Eurozone, as well as Japan combined! Even if Iraq has HALF of the stated money supply, it would make Iraq equal to the Eurozone, the USA, and Japan combined.

This is where I find it hard to believe that an overnight 1:1 RV is possible. Even $.10 is pushing it...

However, I do feel that a gradual increase in the IQD is possible! This way they could slowly reduce the amount in circulation while increasing the value of each existing currency unit in circulation. Increase oil exports, build up infrastructure, promote growth in the private sector, which will all help to build their countries' overall GDP. This is how a currency gains value in the real world.

If Iraq is worth 70 Billion but has 30 Trillion (M1) Dinar in circulation. They could keep that same value ($70 Billion) but make each existing currency unit (IQD) worth more by reducing the overall amount. However, the decrease in currency in circulation needs to be gradual, as well as the increase in the value of the IQD. The reason it needs to be gradual / controlled is so that they maintain inflation. Keeping inflation under control has been one of their biggest priorities during the past 9 years or so, I don't think they want to destroy everything they've worked for just to have a high valued currency overnight. Actually, keeping inflation under control is EVERY CENTRAL BANK'S main priority!

Something to think about...

Japan's total M2 money supply is equal to 6 Trillion USD

Iraq's total M2 Money supply is 70 Trillion IQD equal to 70 Billion USD

A $0.10 straight up RV of the IQD would make Iraq's total currency more valuable than Japan! Overnight!!!!!

*How can this be justified when Iraq has a GDP of a little more than $100 Billion and Japan has a current GDP of roughly $6 Trillion? This is just absurd to think that a country could do something like this overnight!

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Here is the best answer I can think of for your question: By the way, for anybody who has seen this post I'm sorry. But I think it speaks for itself and there was no reason to "re-invent the wheel" in regards to this question.

**Iraq M2 of 70 Trillion**

I then compare the 70 trillion to a 1:1 RV which would equal 70 Trillion USD.

M3 Money Supply for Selected Countries:

When considering M3, the total money supply (of the world) exceeds US$50.1 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 66.2% of the total. The following graph shows a cross-country comparison for M3.

What I am wondering is how does Iraq, a war torn country, come out of the gate with a newly revalued currency which now equals more than every other country combined? Iraq's currency would now be worth twice of that of the USA, the Eurozone, as well as Japan combined! Even if Iraq has HALF of the stated money supply, it would make Iraq equal to the Eurozone, the USA, and Japan combined.

This is where I find it hard to believe that an overnight 1:1 RV is possible. Even $.10 is pushing it...

However, I do feel that a gradual increase in the IQD is possible! This way they could slowly reduce the amount in circulation while increasing the value of each existing currency unit in circulation. Increase oil exports, build up infrastructure, promote growth in the private sector, which will all help to build their countries' overall GDP. This is how a currency gains value in the real world.

If Iraq is worth 70 Billion but has 30 Trillion (M1) Dinar in circulation. They could keep that same value ($70 Billion) but make each existing currency unit (IQD) worth more by reducing the overall amount. However, the decrease in currency in circulation needs to be gradual, as well as the increase in the value of the IQD. The reason it needs to be gradual / controlled is so that they maintain inflation. Keeping inflation under control has been one of their biggest priorities during the past 9 years or so, I don't think they want to destroy everything they've worked for just to have a high valued currency overnight. Actually, keeping inflation under control is EVERY CENTRAL BANK'S main priority!

Something to think about...

Japan's total M2 money supply is equal to 6 Trillion USD

Iraq's total M2 Money supply is 70 Trillion IQD equal to 70 Billion USD

A $0.10 straight up RV of the IQD would make Iraq's total currency more valuable than Japan! Overnight!!!!!

*How can this be justified when Iraq has a GDP of a little more than $100 Billion and Japan has a current GDP of roughly $6 Trillion? This is just absurd to think that a country could do something like this overnight!

Thank you for taking the time to lay your thoughts out for us.

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Here is the best answer I can think of for your question: By the way, for anybody who has seen this post I'm sorry. But I think it speaks for itself and there was no reason to "re-invent the wheel" in regards to this question.

Hooolllly ShTTT...thanks for that thorough analysis....I just hope you still don't have "20MillionDinar" :huh::blink::unsure:

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Agreed. That was the post of the day.

It was a great post because it was laid out in a way where we can just look at the information and make up our own minds. No personal attacks or digs made and it was well-thought-out. I have a lot of respect for posts like that and people who take the time to write them, whether it's the outcome I want to see or personally believe will happen is immaterial. Good post.

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GotSix,

LOL. You're welcome!

No I don't... I bought back in 2006 but at that time they were gradually increasing the value by about 3-5 dinars per day. It was pretty cool waking up watching the investment go in the right direction. From 2006-2008 I watched it go from 1450:1 all the way down to 1170:1 then it just stopped one day! As we all know, that is where it stopped for 3 years straight.

After reviewing the CBI financials I realized that they were not decreasing the money supply, but in fact were expanding it. Which was always a possibility, just not what we all wanted them to do... But now it is obvious to see how they plan on going about growing their economy. The traditional way! Expansionary Monetary Policy will do the job. As the private sector, infrastructure, agriculture, and exports improve, so will their overall GDP and their way of life.

I didn't know then what I know now but I don't regret getting involved. Another one of those learning experiences we all go through in life!

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GotSix,

I didn't know then what I know now but I don't regret getting involved. Another one of those learning experiences we all go through in life!

You know I can't really buy into that :huh::blink::unsure: .....cause it wasn't toooo long ago...actually feels like yesterday.......you were actually debating with those whom you are now sleeping (I mean Keepmn) with :(

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You know I can't really buy into that :huh::blink::unsure: .....cause it wasn't toooo long ago...actually feels like yesterday.......you were actually debating with those whom you are now sleeping (I mean Keepmn) with :(

You don't have to buy into anything that I'm saying. You can buy into Kap and the other self proclaimed gurus if you wish. I actually don't even post much over here because people don't want to hear anything that I have to say anyways. I trade FOREX for a living, and I am pretty damn good at it.

I made a little over $2k yesterday and today on my Platinum trade. I also made a little over $500 on my Oil trade yesterday. Not bad for half a weeks work. I'm not bragging, but somebody who doesn't understand how currencies and commodities work would not survive in my business. The FOREX will eat most people alive!

You can refer back to my original post in the News Section which is still "Pinned" which explains how Monetary Policy works. It also goes into depth on how the currency auctions work. **The biggest problem is, Iraq is not using the currency auctions to "soak up" the IQD on the streets. Another problem is, they are not using "Contractionary monetary policies" by reducing the money supply, they are doing the opposite which is Expansionary monetary policy to increase the money supply.

I did believe that they had many options in order to decrease the money supply and increase the value of their currency but they have not done any of them. I wonder why? Maybe it is because it is not in their best interest to do so at this time. However, one thing that I do know is that the more they print the more likely a re-denomination is. It has already reached a level where I find it hard to believe a straight up RV at even a penny is possible.

I am entitled to my own opinion based off of my own facts and research just as you are entitled to yours. I will also repeat what I stated in my previous post, I did not know what I know now in regards to currencies, economics, etc... Every day I am less naieve, and I am thankful for that because it is allowing me the financial independence I have always been looking for. I am in control of how much money I create, not the government of Iraq! wink.gif

By the way, the name of the thread that I started in August of 2011 is: Open Market Operations aka "Currency Auctions"

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