Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
Sign in to follow this  
leesburg

opposit of lop

Recommended Posts

if you add 3 zeros to a one dollar bill .. one thousand of those new dollars would equal one old dollar .. then if you later remove those zeros from that 1000 dollar note .. it would become 1 dollar again worth the same all through the transaction.. so we must decide if iraq always had 30 trillion dinars .. and thats the original dinar .. or if they always had 28 billion dinars .. and thats the original dinar .. one way or the other they will return to the original dinar... from what i read iraq had 28 billion dinars long ago .. now they have 28 trillion because they added 3 zeros .. and the plan is to remove them .......

how will they do returning to the old dinar if its worth only one dinar .. my opinion is not to good .. its definatly grown in income .. going from a 10 dollar a barrel oil to a 85 dollar a barrel .. and oil is at an all time high .. so their pumping more oil at a higher rate .. .. about 6 times the rate .. at 85 dollars a barrel.. so

will they just have more dinars that are worth less ..or will they have an added value to their dinar of about 600%...i dont think its going to remain the same .. like a nutral exchange .. i think that part will be the smoke and mirror propaganda part .. but i dont believe iraq will have 30 trillion dinars worth a buck either ....

they could just destroy all the electronic dinars ... and we could see a real good raise in the value ..

but stilll we all know they are not pre announcing a rv with these zero deletion storys .. they are definatly covering with propaganda

  • Upvote 1

Share this post


Link to post
Share on other sites
so we must decide if iraq always had 30 trillion dinars .. and thats the original dinar .. or if they always had 28 billion dinars .. and thats the original dinar ..

From the CBI

http://www.cbi.iq/documents/Annual_2002f.pdf

Scroll down to page five. Money supply

In 1991 they 24.6 BILLION

It's a good document for the history of the dinar.

Pumpers and gurus do not like it because it proves alot of their claims are made up lies.

Scroll down to page 17 and you'll see the actual axchange rates for the dinar.

  • Upvote 1

Share this post


Link to post
Share on other sites

The process could be as simple as you bring a single IQD worth $25,000 (IQD) and they will hand you back a $25 IQD or $25 USD 's... Then we wait for the value to rise.

  • Upvote 1

Share this post


Link to post
Share on other sites
They could just destroy all the electronic dinars ... and we could see a real good rise in the value.

If the inevitable pattern of movement is toward a cashless global society, it is hard to see them doing such a thing. I do not believe incinerating physical dinars is as costly an undertaking as some, as it seems, would have need to believe.

But stilll we all know they are not pre-announcing an rv with these zero deletion stories. They are definitely covering with propaganda.

Your sudden optimism is confounding. :huh:

Edited by Sanssouci

Share this post


Link to post
Share on other sites

if you add 3 zeros to a one dollar bill .. one thousand of those new dollars would equal one old dollar .. then if you later remove those zeros from that 1000 dollar note .. it would become 1 dollar again worth the same all through the transaction.. so we must decide if iraq always had 30 trillion dinars .. and thats the original dinar .. or if they always had 28 billion dinars .. and thats the original dinar .. one way or the other they will return to the original dinar... from what i read iraq had 28 billion dinars long ago .. now they have 28 trillion because they added 3 zeros .. and the plan is to remove them .......

how will they do returning to the old dinar if its worth only one dinar .. my opinion is not to good .. its definatly grown in income .. going from a 10 dollar a barrel oil to a 85 dollar a barrel .. and oil is at an all time high .. so their pumping more oil at a higher rate .. .. about 6 times the rate .. at 85 dollars a barrel.. so

will they just have more dinars that are worth less ..or will they have an added value to their dinar of about 600%...i dont think its going to remain the same .. like a nutral exchange .. i think that part will be the smoke and mirror propaganda part .. but i dont believe iraq will have 30 trillion dinars worth a buck either ....

they could just destroy all the electronic dinars ... and we could see a real good raise in the value ..

but stilll we all know they are not pre announcing a rv with these zero deletion storys .. they are definatly covering with propaganda

the cbi has to back every single dinar. being in electronic form doesnt change that.

Share this post


Link to post
Share on other sites

the cbi has to back every single dinar. being in electronic form doesnt change that.

Yeah!!!! Just like the good ole' USA. Not!!!!!!!!!!!!!!!!

  • Upvote 2

Share this post


Link to post
Share on other sites

Yeah!!!! Just like the good ole' USA. Not!!!!!!!!!!!!!!!!

Two different types of currencies though.....the dinar is pegged to a basket of currencies, and normally pegged currencies value depends heavily on its reserves backing it....

The USD is on its own....the value of the dollar is market and faith driven....not to mention being a reserve currency across the world....quite different

  • Upvote 3

Share this post


Link to post
Share on other sites

if you add 3 zeros to a one dollar bill .. one thousand of those new dollars would equal one old dollar .. then if you later remove those zeros from that 1000 dollar note .. it would become 1 dollar again worth the same all through the transaction.. so we must decide if iraq always had 30 trillion dinars .. and thats the original dinar .. or if they always had 28 billion dinars .. and thats the original dinar .. one way or the other they will return to the original dinar... from what i read iraq had 28 billion dinars long ago .. now they have 28 trillion because they added 3 zeros .. and the plan is to remove them .......

how will they do returning to the old dinar if its worth only one dinar .. my opinion is not to good .. its definatly grown in income .. going from a 10 dollar a barrel oil to a 85 dollar a barrel .. and oil is at an all time high .. so their pumping more oil at a higher rate .. .. about 6 times the rate .. at 85 dollars a barrel.. so

will they just have more dinars that are worth less ..or will they have an added value to their dinar of about 600%...i dont think its going to remain the same .. like a nutral exchange .. i think that part will be the smoke and mirror propaganda part .. but i dont believe iraq will have 30 trillion dinars worth a buck either ....

they could just destroy all the electronic dinars ... and we could see a real good raise in the value ..

but stilll we all know they are not pre announcing a rv with these zero deletion storys .. they are definatly covering with propaganda

Great post that is thought provoking. +1 from me!!

  • Upvote 1

Share this post


Link to post
Share on other sites

Two different types of currencies though.....the dinar is pegged to a basket of currencies, and normally pegged currencies value depends heavily on its reserves backing it....

The USD is on its own....the value of the dollar is market and faith driven....not to mention being a reserve currency across the world....quite different

Keep, I know brother, but that basket of currencies is predominately USD; wouldn't you agree? I mean when you here the CBI talk about reserves, that is usually expressed in USD and the last estimate I heard was around 63 Billion. My point is that the CBI can back it up 1 for 1 or they can treat their currency like the USD and make the % reserves (to cover) anything they want, since the majority of their value (basket ) is derived from a fiat currency. Leesburg made a good point though with this thread and I will continue to try to learn a little more. GTG, momma wants to go to the movies. Check in later.

  • Upvote 1

Share this post


Link to post
Share on other sites

Keep, I know brother, but that basket of currencies is predominately USD; wouldn't you agree? I mean when you here the CBI talk about reserves, that is usually expressed in USD and the last estimate I heard was around 63 Billion. My point is that the CBI can back it up 1 for 1 or they can treat their currency like the USD and make the % reserves (to cover) anything they want, since the majority of their value (basket ) is derived from a fiat currency. Leesburg made a good point though with this thread and I will continue to try to learn a little more. GTG, momma wants to go to the movies. Check in later.

LOL...have fun at the movies!!

They do break down what makes up the reserves and I think its like 45% USD and 45% euro or something and then the rest I wanna say is the yen? Dont quote me on that but I think that might be close!!!

I think the problem is that they cant treat it like the USD....there is no demand for the dinar outside Iraq cause its still pretty much non-convertible in most areas while as the USD is probly the top convertible currency in the world.

If Iraq can get on their own two feet, change their monetary policy away from being a pegged currency, and actually build some faith behind the country for what it is and its currency, then its POSSIBLE they could have more room to play with as far as what they would need to back....

Share this post


Link to post
Share on other sites

Basket??? Both of you guys are bit confused. The dinar is pegged to the US dollar, and only the US dollar.

You might be thinking about reserves. A small part of their FX reserves are in Euros, but mainly they are in dollars.

If the dinar was pegged to a basket of currencies then you would see the value changing as those currencies in the basket changed. The fact that the dinar maintains a constant value against the dollar (except when the CBI intentionally pips it up) is proof that it is pegged against the dollar. I don’t follow the value against the euro, but I would guess the value against the Euro ebbs and flows just as the dollar against the Euro ebbs and flows.

Share this post


Link to post
Share on other sites

The dollar get is value from supply and demand. If Iraq was to try to do the same thing this would be the comparison.

Supply for dollars about 13 trillion I think.

Supply for dinar, 72 trillion

So Iraq has over 5 times more supply.

Demand for currency comes from economic activity conducted in that currency.

Demand for the US dollar is a 14 Trillion dollar GDP, plus many countries use dollars to fuel their own economies.

Iraq has a 100 billion dollar economy, but 80 or so percent of that is oil sales which are denominated in dollars. So they have very little demand for dinars.

Just on DGP numbers, without considering the other countries using dollars, the demand for US dollars is 140 times more than the Iraq dinar.

5 times more supply with 140 times less demand doesn’t come close to equaling 1:1

5x140 is 700.

So that would be my rosiest best prediction for the dinar on the forex. 700 to 1$

In reality it wouldn’t be that close because those other factors would be taken into account.

  • Upvote 2

Share this post


Link to post
Share on other sites

the cbi has to back every single dinar. being in electronic form doesnt change that.

i agree .. but if they dump them they wont need to be backed ....just like they are saying they will delete 3 zeros and convert them at 1000 ol for one new .. 999 out of a thousand wont need to be backed ..also ..

... i read that all that they need to back are the dinars that will be exchanged for foriegn currency .. in this paragraph .. from ny federal reserve ...>>>

Under What Circumstances Might a Country Devalue?

When a government devalues its currency, it is often because the interaction of market forces and policy decisions has made the currency's fixed exchange rate untenable. In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate. When a country is unable or unwilling to do so, then it must devalue its currency to a level that it is able and willing to support with its foreign exchange reserves. >>> http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html/

so if all the iraqis use their currency in iraq .. they wont need to exchange those dinars .. which is the majority of the dinars ...i have been told ... that if say only say 20% of the dinars have been bought by speculators out of country .. then the cbi could rv its currency for a rate 20% lower and give a time period for exchange ..... after that those dinars would not be exceptable any more .."it sounds like the time period of 2 years they are talking about "

..

after that exchange period is up .. iraq will float the value of their dinar up 20% over a couple years .. there by paying for all that currency that was bought by speculators .. and they would of rvd their currency for free.. no need to back it up if its mainly used for incountry markets

when iraq was just starting to exchange the old dinars for these current dinars .. they were flat broke .. they were asking for us to buy their dinars to give them a value .. i dont think they had a plan in place to screw all those who came to buy dinars to help iraq out in its time of need ..

i think we will be rewarded to some extent on this exchange from these dinars to the new dinars that will be coming out .. the people who bought there dinars long ago ... were doing it to support the mission in iraq .

i was told this would rv at 31 cents by 2016 when they reached 12 million barrels a day production ... that was the story in january 2005

31 cents is about the exchange rate for saudi arabia currency which is i think 27 cents for one saudi dinar .. or what ever they call saudis money.. .. 31 cents seems do able

but id like it just to see 3 cents per dinar

good luck yall

Edited by leesburg

Share this post


Link to post
Share on other sites

Basket??? Both of you guys are bit confused. The dinar is pegged to the US dollar, and only the US dollar.

You might be thinking about reserves. A small part of their FX reserves are in Euros, but mainly they are in dollars.

If the dinar was pegged to a basket of currencies then you would see the value changing as those currencies in the basket changed. The fact that the dinar maintains a constant value against the dollar (except when the CBI intentionally pips it up) is proof that it is pegged against the dollar. I don’t follow the value against the euro, but I would guess the value against the Euro ebbs and flows just as the dollar against the Euro ebbs and flows.

Perhaps that explains why most, if not all, middle east currencies never fluctuate. I know the Saudi Riyal, UAE Dirham, Kuwaiti Dinar, etc. have remained mostly unchanged since I've had the "pleasure" of being there.

Share this post


Link to post
Share on other sites

The Kuwaiti dinar is pegged to a basket of currencies. The rate changes daily, but not by much.

Take a loook.

http://www.exchange-rates.org/history/KWD/USD/T

6/22/2012 Friday .28028

6/24/2012 Sunday .28033

6/25/2012 Monday .28050

6/26/2012 Tuesday .28031

6/27/2012 Wednesday .28058

6/28/2012 Thursday .28083

6/29/2012 Friday .27983

6/30/2012 Saturday .27840

7/1/2012 Sunday .27843

7/2/2012 Monday .28026

7/3/2012 Tuesday .27992

7/4/2012 Wednesday .28080

7/5/2012 Thursday .28080

7/6/2012 Friday .28164

7/7/2012 Saturday .28338

7/8/2012 Sunday .28381

7/9/2012 Monday .28121

7/10/2012 Tuesday .28177

7/11/2012 Wednesday .28182

7/12/2012 Thursday .28186

7/13/2012 Friday .28145

7/14/2012 Saturday .28147

7/15/2012 Sunday .28140

7/16/2012 Monday .28141

7/17/2012 Tuesday .28175

7/18/2012 Wednesday .28163

7/19/2012 Thursday .28175

i agree .. but if they dump them they wont need to be backed ....just like they are saying they will delete 3 zeros and convert them at 1000 ol for one new .. 999 out of a thousand wont need to be backed ..also ..

I didn't read muxh past this... because there is no way they would do this.

People in Iraq alreaedy don't trust banks, and you think they should just wipe out all bank accounts. So any one who put their money in a bank looses everything?

Not even worth thinking about. They would NEVER do such a thing.

Edited by DaveD

Share this post


Link to post
Share on other sites

the cbi has to back every single dinar. being in electronic form doesnt change that.

There is not one country in the world that could back 100% of their currency.

Roadrunner

Share this post


Link to post
Share on other sites

There is not one country in the world that could back 100% of their currency.

Roadrunner

Exactly!!!

th_Dancing.gif

Edited by easyrider

Share this post


Link to post
Share on other sites

There is not one country in the world that could back 100% of their currency.

Roadrunner

Funny.. because Iraq does axactly that.

Iraq is under a Stand by Arrangement program with the IMF. That is why the rate is called a program rate.

Under this arrangement they have to file a letter intent. They state in the letter on intent that they FULLY back their currency and that they plan to continue to back it FULLY in the future.

Iraq has about 72 trillion dinar M2. at .00086 per dinar that is $62 billion.

There have been dozens of articles talking about their record FX reserves of... I think it was $62 billion.

This is not a coincidence.

Share this post


Link to post
Share on other sites

There is not one country in the world that could back 100% of their currency.

Roadrunner

iraq does. do they have too?i Dont know. approx. 60 trillion dinar ( approx. $60 billion usd)in m2, backed by approx. $60 billion in foreign reserves.

They can use what monetary policy they want, but right now they are backing around 100%. Yet my point was, just because its in electronic form, doesnt mean they dont have too support the value. they do, because those electronic dinar can be exchanged and cashed out at any time.

Edited by carlablum
unnecessary rant about moderators actions

Share this post


Link to post
Share on other sites

yes in a monetary moneysystem .. currency isnt backed ....its an aggreement between the banking sector and private sector ,,, new money is generated through loan process .. ad money supply grows through interest rates... money is basically promisary notes... .. i wonder how much iraq had in reserves .. when the 747 `s ... loaded with new dinars were flown into iraq in 2004.... they traded them for worthless sadam dinars ... that were backed by what ... they were used for in country transactions .. i think the only dinars that will need to be backed are those that will need to be exchanged for foriegn currency ... like our dinars we bought as an investment.. but the majority of dinars will remain in country and have no reason to back them with hard currency in foriegn reserves... they did send trillions to iraq who knows maybe they always had 30 billion in reserves ,, thats why we sent them 30 trillion new dinars ..but they were 3000 to oneback then ... so they would of needed only 10 billion dollars

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.