Non lopsters...look here!

[FDyer]

I have posted much recently regarding a LOP.* I am new to this....and am NOT trying to spread propoganda/smokescreen.* I HONESTLY would like actual information from those who have the time and intellect to explain this me.* I am not interested in bashing or simple, pointless comments like..."NO LOP LOP LOP."* * This is so amusing to me.* I mean ???I am bringing up the LOP theory to gain knowledge from the seasoned Vets who can explain what GAIN Iraq has in doing a straight RV instead of:* Lop, moving decimal 3 places (.86/1.17) and then an RV for $2 or $3 which would result in a MUCH smaller profit for us, but still a profit.* No one would be S**wed that I can see in this (as far as LOSING money), and the exchange rate would go up.Now for those who are sick of reading about this...by all means...spend your time reading and posting in some other thread!!* Click back and don't waste your time or mine.* What can I say?* I'm a straight kinda woman. FOR THOSE WHO CARE TO SHARE THEORIES BASED ON SOUND PROBABILITIES AND EXPECTATIONS.....please enlighten me.* Hearing someone say "hmmmm....do you think people are trying to spread propganda to get us to cash in our dinar" is NOT bringing anything to the table to back up a theory!!* ???Now...for those with intellect and THAT ACTUALLY CAN SHARE THEIR REASONING as to WHY there would be a straight RV instead of this scenario....let's GET ON WITH IT so to speak.* LOL* Trust me...I would MUCH rather believe the NON LOPSTERS out there....but my logical/analytical brain isn't seeing it at this point.* (If I could just sprinkle the fairy dust and dance on a cloud I would do it in heart beat.)*

[tommy17]

I don't even know why Loppers even come on this site, unless they are being paid by banks to discorage people . Do people really think all these other countrys, forgave them all of their billions of dollars of debt to hold worthless paper. One of the richest countrys in the world sitting on lakes of oil, and natural gas is gonna have a worthless currency? How is this moving the country forward in the free market. The government has promised these people to end unemployment and proverty by sharing the wealth with their people. In 3 years they will be pumping more oil than Iran and kuwait combined. Anyways good post girl and i like your Hat.

[jaq]

In my opinion, I'd rather have the whole picture versus half. I do take the LOP article serious but that doesn't mean I think the LOP is a definite, just another of many possibilities. The fact does remain however, that many more LOP articles are coming out over RV articles... From a news source perspective anyway. I agree with you wholeheartedly FDyer and would much prefer the fairy dust and cloud dancing but reality is going to get me further LOL...

[jayb1rd]

from a mathematical standpoint, i can see why there could be a smokescreen of a lop. why would you tell the world that you are doing a straight revalue? every country and every person within earshot would be buying dinar. so they show lop to discourage speculators (us). now for the math: if they do a straight lop, they are decreasing the wealth of everyone holding dinar, including the Iraqi's. their intention is to spread the wealth to their people. so if they do a lop at all, they will have to do a revalue along with it. calculating the fees to purchase my dinar, and exchange it back, i need a lop-revalue of $1.17 to break even. so if they revalue to $2.00 after a lop, i have almost doubled my money, as would all of Iraq. if they do a straight revalue, then we are all very rich.

[Mongo]

Lopsters....Lobsters close enough....look here !!!

[ATTACH=CONFIG]1015[/ATTACH]

[alston82]

So here you go If you think it is going to LOP then get rid of your Dinar. It is that SIMPLE or get you a WARKA account.

[Kent]

Fdyer, all I will say is ...you get it. Many don't. We don't really know what will happen, but those who simply say "no lop" are naive and often don't understand the concept or they are misinformed about the reasons one is done. Historically speaking lops are common, RV's are rare. Personally, I leave room for the first and hope for the second. Personally, I think the odds and circumstances favor a lop with a good return on investment either through a small RV or market float.

The best thing you can do to get educated on the "no lop" position is do a search on posts from Enorrsete. Prepare for a lot of reading. Read carefully when you do. In my opinion he takes a leap of faith - particularly in the area of dealing with the increase in money supply that comes from an RV and in considering alternative meanings of the translation of some of the articles. He was also amazing at pulling information together. He will give you quite an education.

[Teresa82]

MONGO!!!! hehehehe poor little guy!

[jcav]

I am allergic to lopster so I don't want to talk about it. Wheres' my epi-pen?

[valu]

flyer, here's a thought. sell your dinar and move on. clearly there isn't a fit here. i am sure some nice wall street scammer would love to help you out.

[FDyer]

Thanks guys for taking the time to respond to my post. Kent, I will try screening through Enorrsete's comments for any ideas. Again, the responses are appreciated. Obviously no one knows what this thing will do for sure, we would be fools to expect that. I do not plan on dumping my dinar, either way. It is funny how some seem so afraid to look at another scenario, that they go to extremes. I mean, I don't have my gas money wrapped up in dinar. LOL...Seriously? Anyway...part of the fun of this whole situation is analyzing the info and seeing what we come up with right? Well, that is just me. But, I guess even with your head in the sand your gonna know if it kicks you in the A** so to each their own. All in good fun guys.

[FDyer]

KrucialMix was kind enough to send me this link. Anti-Lop

http://www.iraqdirectory.com/DisplayNews.aspx?id=1677

[Mongo]

HOUND..........................Were not scared of it, just tired of it. It's like mass hysteria in the forum when you mention lop. New people come here and it starts all over again because their not grounded.

[ATTACH=CONFIG]1019[/ATTACH]

[Ronin7043]

Republic of Iraq

Central Bank of Iraq

Directorate General of the banking and credit control

Issue 9/3/1216

Date: 10/3/2010

To the banks approved the exercise of all banking

The country's Islamic Bank for Finance and Investment

M / capital increase

-------------------------------------------------- ----------

Based on the decision of the management of the bank adopted its session numbered 1454 and held on 18/2/2010

Oblige you decide to raise capital Massarvkm to 250 billion dinars during the period (3) years from the date of the decision of the Council above and as follows: --

- 100 billion dinars during the one year of the Council's decision.

- 150 billion dinars during the two years of the Council's decision.

- 250 billion dinars during the three years of the Council's decision.

- In the case of non-completion of capital to the extent possible within the period specified above cancel leave granted to the bank based on the provisions of paragraph (d / 1) of Article (3) of the Banking Law No. (94) for the year 2004.

With appreciation

Director-General and the agency

To monitor the banking and credit

Idi Walid Abdel Nabi

http://72.52.252.89/isxportal/portal...ryId=83&type=1

__________________

.

How are they going to lop the zeros and pull that off ?!!!!

[FDyer]

Mongo...I get it. Sorry it's frustrating, just trying to get other's views and opinions.

Ronin...post much appreciated. Gratzie!!

[Ronin7043]

--------------------------------------------------------------------------------

Republic of Iraq

Central Bank of Iraq

Directorate General of the banking and credit control

Issue 9/3/1216

Date: 10/3/2010

To the banks approved the exercise of all banking

The country's Islamic Bank for Finance and Investment

M / capital increase

-------------------------------------------------- ----------

Based on the decision of the management of the bank adopted its session numbered 1454 and held on 18/2/2010

Oblige you decide to raise capital Massarvkm to 250 billion dinars during the period (3) years from the date of the decision of the Council above and as follows: --

- 100 billion dinars during the one year of the Council's decision.

- 150 billion dinars during the two years of the Council's decision.

- 250 billion dinars during the three years of the Council's decision.

- In the case of non-completion of capital to the extent possible within the period specified above cancel leave granted to the bank based on the provisions of paragraph (d / 1) of Article (3) of the Banking Law No. (94) for the year 2004.

With appreciation

Director-General and the agency

To monitor the banking and credit

Idi Walid Abdel Nabi

http://72.52.252.89/isxportal/portal...ryId=83&type=1

__________________

.

How are they going to lop the zeros and pull that off ?!!!!

[Ronin7043]

I'm your huckleberry....

[FDyer]

Ronin....

[Kent]

Ronin, I am sorry if I am a little slow, but could you elaborate on your analysis of that post? What council decision? What the fat is "capital Massarvkm"? If this is referring to growth in the CBI reserves, those figures are really very small. Current reserves more like ID21 Trillion (line 74 of http://www.cbi.iq/xl&wr/key%20financial.xls )

[Nate]

I always keep my mind open to all scenarios and the lop theory makes no sense to me. Someone said LOPs are common? Really prove it. We know for a fact that they want to remove the big bills, ask yourself if these make any sense. Here is the way I look at it, two lop theories.

1- move the decimal 3 spaces to the left FOR ALL BILLS and COINS- so if 25,000 dinars equals 25 dinars then 25 dinars equals .025 dinars? WTF would they do that?

2 move the decimal 3 spaces for JUST THE BIG BILLS - 25,000 and 10,000 equals 25 and 10 dinars.

So take two people (iraqi or non iraqi) 1st person has one 25,000 dinar note and 2nd person has one 25 dinar note. Then all of a sudden they have the same value? So the guy with the big note is screwed? What do you think would happen if this happened? WTF would they do that?

[tampa1000]

1. Proof of Iraq's Action Plan to RV!!!

As most of you, I always want to get to the bottom line of what is actually so, or the truth. The recent IMF “Letter of Intent” document signed by Shabibi and Baqir S. Jabr Al-Zubaydi (Minister of Finance of Iraq) shows more than meets the eye! I have underlined a few key words in the “letter of intent” that explain precisely what the Iraq and CBI are planning to do with their currency, and this my friend is great news!

I’ve taken just the 25th and 26th lines in this “letter of intent” for my analysis. Please see read the following.

LETTER OF INTENT

February 8, 2010

Mr. Dominique Strauss-Kahn

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

25. We are (1)committed to strengthening the management of (2)international reserves by moving ahead with the implementation of (3)new reserves management guidelines that were adopted in early August 2008. We will follow the guidelines to diversify (4)currency composition and establish appropriate duration and credit risk, build capacity for risk analysis, and (5)work towards establishing a dealing room. We will also provide by end-March 2010 more frequent reports to the CBI board based on the investment criteria established in the guidelines.

26. To improve the functioning of foreign exchange auctions, we plan to develop

organized exchange markets outside the central bank, including an interbank foreign

exchange market. Our aim is to establish a forward market in Iraqi dinars in the near future.

http://www.imf.org/External/NP/LOI/2010/irq/020810.pdf

Analysis:

1. Committed- to be dedicated, devoted, steadfast, or unwavering

2. International Reserves- Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official international reserves or international reserves. These are assets of the central bank held in different reserve currencies.

3. New Reserves Management Guidelines- Read the following from the IMF’s last “letter of intent” below.

B. Monetary and Exchange Rate Policies

http://www.imf.org/external/np/loi/2008/irq/112908.pdf

“16. We continue to strengthen the accounting and reporting framework of the CBI.

The CBI has appointed a control committee, which is responsible for developing control

procedures and manuals, and for establishing a modern internal audit function with the

assistance of external consultants. An independent audit committee has also been set up,

which will be made operational shortly. The audit committee includes one external expert

and is tasked with making recommendations regarding external and internal audit oversight, financial reporting, and controls. Efforts will be stepped up to reconcile suspense accounts 7 and CBI intra-branch accounts, and to establish a register of outstanding off-balance sheet commitments (letters of credit and guarantees). We will also appoint shortly an external auditor to undertake the audit of the CBI 2008 financial statements in accordance with International Standards on Auditing. The CBI will work with the Ministry of Finance to adopt an audit selection and rotation policy for future audits. To facilitate implementation of International Financial Reporting Standards (IFRS) by end-2009, we will engage an external expert to assist the CBI in the conversion process. We are also moving ahead in implementing our new reserves management guidelines that were adopted in early August.”

“17. We have made progress in moving towards accepting the obligations of Article VIII,

Sections 2(a), 3, and 4, of the Fund’s Articles of Agreement. The review of exchange laws and regulations is nearing completion. We will work with Fund staff to complete the review as soon as possible and are ready to implement the Fund staff’s recommendations once we receive them. In the meantime, we are committed to not impose any restrictions on the making of payments and transfers for current international transactions nor to introduce any multiple currency practices.”

4. Currency composition- A reserve currency, or anchor currency, is a currency which 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, such as oil, gold, etc. Basically what they are telling us here is that Iraq has enough reserves to back up their currency because they have plenty of assets.

http://www.imf.org/external/np/sta/cofer/eng/index.htm

5. Work towards establishing a dealing room, organized exchange markets outside the central bank, including an interbank foreign exchange market- Simply put, they are going to trade their currency the U.S. does. In order to do this, they have to release themselves from the currency restrictions, or revalue their currency.

If you look at the following link below, you can go in and read any of the articles that are being discussed in this thread, or at anytime. Please save the links provide for future reference.

IMF: Articleshttp://www.imf.org/external/pubs/ft/aa/

Important!!!!

Just yesterday (March 16th, 2010), the IMF came out with the following information describing “removal of all restrictions under Fund jurisdiction, and they are committed to a liberal (unrestricted or free) exchange regime”! This is what we have been waiting for!!! This their commitment to lifting the currency restrictions and allowing themselves to move into the international currency exchange market!!! This is one of the last steps before revaluing the currency and placing it on the international currency exchange my friends! Please read carefully below….

Iraq: Staff Report for the 2009 Article IV Consultation and Request for Stand-By

Arrangement

February 16th, 2010

http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf

33. The authorities are committed to a (1) liberal exchange regime and to (2)removing all restrictions under Fund jurisdiction. Iraq has a generally unrestricted current account regime and a significantly liberalized capital account. (3)However, four measures have been identified to give rise to exchange restrictions subject to Fund approval. Three relate to a requirement to pay all obligations and debts to the government before relevant payments are transferred abroad, and one to an inoperative bilateral payments agreement with Jordan. The authorities are considering measures to remove the identified restrictions, with a view to (4) accepting Article VIII of the Fund’s Articles of Agreement, (5) but it may take time to resolve the last restriction because of the pending resolution of Iraq’s debts to Jordan.

1. Liberal Exchange Regime – Free to exchange their currency on the open market or revalue the currency!!!

2. Removal of the currency restrictions that will allow them to RV!!!

3. What needs to happen before they can RV.

4. They have to accept article VIII (http://www.imf.org/external/pubs/ft/aa/aa08.htm)

5. Iraq’s debt Jordan will not hold this up- IMO. The world needs this RV and it will stay on course!

Conclusion:

We are right there folks! It has been clearly written in the above articles and “letters of intent”. Intel will be intel, but this research hands down will give you greater “peace of mind” and assurance that we will rich because Iraq / CBI will revelue their currency!

Can I get a Yabba Dabba Dooooo?! Amen?! God Bless?! Can you tell I’m excited?

This is the last part of the article IV that I failed to mention in my last post above. Please note the underlined words! Very Important!

57. Staff also urges the authorities to move forward with their plans to liberalize the

exchange regime by removing the exchange restrictions that fall under Fund

jurisdiction. Specifically, the authorities are encouraged to establish a timetable to remove

these restrictions promptly, and to subsequently accept the obligations under Article VIII,

Sections 2(a), 3, and 4.

[Kent]

I always keep my mind open to all scenarios and the lop theory makes no sense to me. Someone said LOPs are common? Really prove it. We know for a fact that they want to remove the big bills, ask yourself if these make any sense. Here is the way I look at it, two lop theories.

1- move the decimal 3 spaces to the left FOR ALL BILLS and COINS- so if 25,000 dinars equals 25 dinars then 25 dinars equals .025 dinars? WTF would they do that?

2 move the decimal 3 spaces for JUST THE BIG BILLS - 25,000 and 10,000 equals 25 and 10 dinars.

So take two people (iraqi or non iraqi) 1st person has one 25,000 dinar note and 2nd person has one 25 dinar note. Then all of a sudden they have the same value? So the guy with the big note is screwed? What do you think would happen if this happened? WTF would they do that?

Nate, I am not sure if you really want to know the answer to that or if it was a rhetorical statement, but assuming you really want to know, read this report for a study of 70 lops from 1960-2003. There have been more since.

http://www.unc.edu/~lmosley/APSA%202005.pdf

And here is a summary of some of the misconceptions about lops taken from that study:

http://dinarvets.com/forums/showthread.php?7545-Debunking-the-myths-of-the-infamous-bunny-ear-(lop)&highlight=

I have seen information about very few revaluations and none were large. If you have any examples I am sincerely interested and everyone on the forum would be as well. Please post what you find.

Your description of a redenomination (lop) is inaccurate. It is a value neutral change where the old form of currency is retired completely and replaced with the new bills without the zeros. Prices and wages change at the same time the currency changes. The reason they do it is in the report, but basically, they don't have to use a wheelbarrow to carry cash any more and the governments use it to tell the world and their people that the past inflationary problems are over. If you want to see the mechanics of how it is done, look at this simple brochure that was used when Venezuela did theirs. It explains how it works (but not why it is done).

http://www.reconversionbcv.org.ve/pdf/TripticoColorIng.pdf

[joeintt]

I am of the opinion that the IQD will be lopped AND RV'ed (about $2-$3) at the same time. This just makes perfect sense to me....since this will allow the iraqis to get a more manageble currency whilst still making a great return on their savings (about 200% to 300%). This way the iraqis will not be lining up to bomb places and shoot folks!! Meanwhile, the rest of us would just have to go along with the flow......this whole thing has nothing to do with what we WANT TO HAVE HAPPEN but everything to do with WHAT IS BEST FOR IRAQ. As I have said in a previous post..."do we want to hear what is being said or do we only want to hear what we want to hear". I would love to see a plain old RV but I just can't wrap my analytical mind around the RV only rational.

Lastly, what further makes me feel that there will be a LOP + RV is the fact that the Iraqi authorities seem not to be too concerned with letting us know that something positive is about to happen with the IQD. Their comfort in taking their time in pulling the trigger in the face of this common knowledge that something is about to happens tells me that they are comfortable with ALL OF US (folks in and out of iraq) making a reasonable return on our investment (200% to 300%) as opposed to the straight RV (predictions varying from $.86 to $3.89) which would result in all of us making a return of a kazillion percent (being facicious here).

My analytical mind continues to lead me to wonder why would iraq opt to pay the high tab of giving us all this massive return (RV only) whilst they could be just as credible in the international community's eyes with a fair return (LOP + RV).

this is just my opinion .... be blessed all!!

ps: it is better to assume the worst and hope for the best

[Nate]

Kent thanks for the info but I dont see how my 1st description was innacurate, seems to me it's exactly what this brochure describes. I put the 2nd scenario becuase a lot people think thats what will happen. I still dont see how this would apply to Iraq, this looks like they would have to re-do the entire structure all over again but i think your point was it happens and you proved it.

Considering the dinar is a brand new currency this makes no sense for Iraq, thats not my dinar investor opinion thats my logical opinion. With the amount of investments in Iraq I don't see how that would a good thing for anyone. I'm still trying to grasp the idea of removing three zeros and how it affects exports and imports..... my head hurts now

[braywilkins]

Does anyone think that the people running this country are going through all this to stay poor? They expect to get rich. It is pure foolishness to bet against CBI. The central bank gets what they want. The owners of the central bank get rich beyound anyone's wildest dreams. They can not miss.....they are the only people that are capable of creating something from nothing. Central banks have this down to a sceince after about 300-400 years