My conversation with a Hedge Fund manager.

[dinarmite]

For one thing he is right in saying its a bad investment. Most investors wont touch this investment. They only invest in sure things and avoid bad ones like this witch is smart in there way of thinking. Now us on the other hand invested in something thats not a sure thing so be it . If it pans out we are happy if not we can say nothing ventured nothing gained, we tried. As far as the rest of what he said is Bull dunky. Hes not invested so he don't no his ass from a whole in the ground.Thats my story and I'm sticking to it.

Same ones that invest in a 401 for others? Yea I trust them ALOT.

[storm1]

Aren't these two statements enough to know he knows nothing?:

"But I don’t believe any other countries do hold the dinar as reserves...."

"... I don’t even know if there would be a rate for old dinar. I think you might have to exchange them for new dinar before you could exchange them for dollars...."

ok carrello, since you made the assumtion the guy knows nothing, pleae supply us with "proof" that another country holds dinar as reserves.

and please provide proof this statement "... I don’t even know if there would be a rate for old dinar. I think you might have to exchange them for new dinar before you could exchange them for dollars...." is false

thanx

betcha cant

[dinarx2]

30 Trillion is only the currency in circulation.....you are forgetting about the total money supply that is a liability to the CBI.....the total money supply is actually over 70 trillion....

So if you break down the math, the dinar is actually close to being backed 130%......so they do have some wiggle room....but only about 30%.....which would put it around 800 something to 1

Your also incorrect about the auctions and their purpose....it doesnt remove anything from circulation....

Nope.....

There are many other intelligent individuals that can understand what the CBI is telling the world they are gonna do.....and based off that information, there really isnt a upside to this.....

Only if the CBI is lying to the world on their true intentions....

So your telling me that dinars purchased by the central bank but NOT spent do not reduce the money supply ? Do they indeed have 70 trillion dinar in circulation as you say ? I suspect it is much lower but you are welcome to prove me wrong with a link to the information. Still at 70 trillion dinar to 67+ billion dollars reserve it is a 1044 to 1 which is indeed an improvement over where some of us bought the dinar. This only counts the US dollar reserves. However this does not include any other assests that the CBI has such as Gold and other minerals. Rumors have it they are many tons of gold. So again I ask how can an intellegent person say there is no upside to this. It may take some time but I am not in a hurry. Then again it could always happen tomorrow, who knows. It is already worth more than I paid for it.

[sandstorm]

His opinion and he's entitled to it...but I don't agree with most of his logic.....

Im not trying to start an argument, but his logic is exact with whats been described by the cbi and historic redenominations. Diqgreeing is fine, but the logic is there. we all just hope its a load of bs.

[jcfrag]

Doesn't Hedge Fund Managers monitor losers????? I would hope this man knows nothing about the dinar, and the fact he doesn't is proof of some jingle in my pockets coming up here real soon!!!! WOOT WOOT

[sandstorm]

Doesn't Hedge Fund Managers monitor losers????? I would hope this man knows nothing about the dinar, and the fact he doesn't is proof of some jingle in my pockets coming up here real soon!!!! WOOT WOOT

Disagreeing is alright.....but lets not belittle this guy, to justify our own outcome. his info is straight on.....but no one wants to hear it. me included.

[dontlop]

with all those dinars in circulation and being withdrawn in some opinionated circles... say they end up with 5 trillion dinars in circulation,,, and just destroy the rest ... wouldnt they only be responsible for backing up the 5 trillion left in existance ?

secondly .. i personally feel there is around 400 billion dollars circulating in the iraqi economy .. after all those auctions ... the dinars are off the streets and replaced with dollars .......now ....

when the new dinar comes out and becomes internationally registered .. say the govt regulates that the new dinar is what is to be used in local economy ..

wouldnt all those dollars on the streets return to the cbi ... and end up in the reserves to back the new dinar .. ?.. 5 or 600 billion dollars in the cbi foriegn reserves could actually boost the new dinars to a dollar easily ...and as the old dinars get destroyed as they return to the cbi .. the value will sky rocket .....

im sure as the old dinars are converted they will not be released back into the local economy .. one trip to the bank is all i see the old dinars surviving ..

no monetary unnit is backed up 100% BY FORIEGN RESERVES .. only the dinars that are being exchanged into foriegn currency needs to be backed up by reserves .. like our dinars .. but the iraqi dinars wont need be backed up for they wont be exchanging them in since this is their new currency ..

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

willing to spend them to purchase all offers .. there wont be offers for every dinar .. only those that are out of country ..im sure they have an idea of how many dinars are out of country ...whether it be 10% 20% what ever it is .. all they need to do is re at that percentage lower than they expect their rate to end up . ... pruchase all existing dinars offered for exchange .. to a certain time limit.. deadline ... then gradually increase the value of the dinar up that 10 or 20 percent the undervalued the dinar at .. .. bring it up over a few years and then guess what .. they got back that percentage of money they exchanged

essentially revaluing their currency at no cost

the public in iraq has been using dollars for 10 years now .. they keep buying them at the banks .. the banks keep collecting them .. this has been going on for some time now.. their records are sealed ..the cbi is hardly updated .... they have proven they can remove over a trillion dinars a week out of the system ...how often is the cbi updated ..

6 months they can remove 26 trillion dinars and no one would know till the next update of the cbi.. electronic dinars can be deleted imediatly .. and replaced with new currency ..

only problem is they may have to buy back a couple trillion .. 10% ....they can handle it .. monetary system is not a gold system ... the gold standard went out in the 70s..... we cant compare this to germany .. or any other war torn country ,, see they could destroy the german economy .. but they couldnt destroy the oil reserves of iraq .. they are under ground .. there economy comes rolling back very quickly .. so will their dinars .. we may of come to that point of rv .. but we are in the final shake down .... just an opinion

[tellmewhen]

If you bought Dinars from Ali, You are not holding OLD Dinars. The OLD Dinars have saddam's face on them. They are still on the street comingling with the new ones. So, old new???? I do have friends that have the bills with the saddam face on them

[keepmwlknfny]

So your telling me that dinars purchased by the central bank but NOT spent do not reduce the money supply ?

Sure doesnt....once the currency has been issued, its a liability regardless of who holds it......

Do they indeed have 70 trillion dinar in circulation as you say ?

No, they dont have 70 trillion in circulation....its closer to 35 or so, the 70 trillion I was speaking of is the TOTAL money supply which includes digital.....

I suspect it is much lower but you are welcome to prove me wrong with a link to the information.

http://www.cbi.iq/index.php?pid=Statistics Click on key financial indicators under statistical documents.....look for currency outside of banks

Still at 70 trillion dinar to 67+ billion dollars reserve it is a 1044 to 1 which is indeed an improvement over where some of us bought the dinar. This only counts the US dollar reserves. However this does not include any other assests that the CBI has such as Gold and other minerals.

The 60 some billion includes USD, Yen, and another currency that I cant remember right now lol....yes they do have gold as an asset, but there is only a couple billion dollars worth there. Not sure what you mean by other minerals but anything they have as natural resources doesnt count against backing your currency.....

Rumors have it they are many tons of gold.

Rumor has is it was supposed to RV almost every week the past couple years lol.....rumors mean nothing till its proved....

So again I ask how can an intellegent person say there is no upside to this.

There isnt a current upside to this....not yet...doesnt mean there wont be....its just all the numbers and availible information is against us.....

It may take some time but I am not in a hurry. Then again it could always happen tomorrow, who knows. It is already worth more than I paid for it.

Your right, for us to make money it will take some time.....the longer they parlay in moving the value up gradually, the longer we have to wait....

[jcfrag]

Disagreeing is alright.....but lets not belittle this guy, to justify our own outcome. his info is straight on.....but no one wants to hear it. me included.

Why does everything I say here get turned around to be something I did not say? Would you argue that indeed many, but not all, hedge fund strategies tend to hedge against downturns in the markets being traded. If that is the case are they not looking at downturns primarily to protect assets at the onset of the down turn? If that be the case..... this guy is not looking at IQD, so he is not looking to hedge against the IQD. As a matter of fact the IQD is already down, what is left to protect here as there is barely a chance in H E double hockey sticks that the dinar is going to take a downturn.

I never once said this Hedge Fund Manager is stupid, bad, ignorant, I never said one negative thing about this guy...... Where did you read into my comment that I was belittling that guy at all? All I was pointing out is the nature of his business and how it is a good sign that he isn't looking at the dinar. I gathered from the read that he has an opinion, nothing based on fact, as in he has not really looked at the dinar. That is all I was saying, Where did my comment belittle this guy. Please answer me this because I would like to know how it is that I just can not seem to communicate to people on this site in the way I intend. I talk to thousands of people everyday from every walk of life, from different countries, some of which do not even speak English, without any misunderstandings. Then I come on here and make a statement or two, and have others pointing the finger at me like I'm out of line. How in the world does this happen? Is it me? Or is it this site? Could somebody please clarify for me if I'm out of line on that statement I made because I would really really like to know if I'm offending someone. I give up..........

[idplzr]

I had a conversation with a hedge trimmer once

[jeepguy]

all this stuff aside ----------- what if --- we have too figue out how too cash -in ----- in iraq ???????? what the health are we going to do then??? hoping there will be a central location in a bunch of nations that will accept these dinar ,,, and trade them in ,,,, beside ali

[sandstorm]

Why does everything I say here get turned around to be something I did not say? Would you argue that indeed many, but not all, hedge fund strategies tend to hedge against downturns in the markets being traded. If that is the case are they not looking at downturns primarily to protect assets at the onset of the down turn? If that be the case..... this guy is not looking at IQD, so he is not looking to hedge against the IQD. As a matter of fact the IQD is already down, what is left to protect here as there is barely a chance in H E double hockey sticks that the dinar is going to take a downturn.

I never once said this Hedge Fund Manager is stupid, bad, ignorant, I never said one negative thing about this guy...... Where did you read into my comment that I was belittling that guy at all? All I was pointing out is the nature of his business and how it is a good sign that he isn't looking at the dinar. I gathered from the read that he has an opinion, nothing based on fact, as in he has not really looked at the dinar. That is all I was saying, Where did my comment belittle this guy. Please answer me this because I would like to know how it is that I just can not seem to communicate to people on this site in the way I intend. I talk to thousands of people everyday from every walk of life, from different countries, some of which do not even speak English, without any misunderstandings. Then I come on here and make a statement or two, and have others pointing the finger at me like I'm out of line. How in the world does this happen? Is it me? Or is it this site? Could somebody please clarify for me if I'm out of line on that statement I made because I would really really like to know if I'm offending someone. I give up..........

Please forgive me. i wasnt trying to twist your words, i moreless just spurred my thoughts off your comments. i apologize for not making that clear.

[jcfrag]

I had a conversation with a hedge trimmer once

Finally! A like minded individual! Somebody that speaks "beer thirty" lingo. Cheers!!!!! : D

[skitealwedrop]

The CBI has to honor the currency that they issue. The problem is that IQD is not an internationally tradeable currency today. That's why it's not traded on Forex or recognized by US banks. I suspect that will change once the CBI adjusts the value in IQD. IQD can not remain an undervalued exotic currency forever if the Iraqi's plan to progress.

[Carrello]

ok carrello, since you made the assumtion the guy knows nothing, pleae supply us with "proof" that another country holds dinar as reserves.

and please provide proof this statement "... I don’t even know if there would be a rate for old dinar. I think you might have to exchange them for new dinar before you could exchange them for dollars...." is false

thanx

betcha cant

storm1, the problem is that you made the assumption that I was referring to reserves and old dinar. I was not. The hedge fund manager told us that he did not know certain things, and if he were my hedge fund manager, I would wonder why he would have details on the currency and procedures, right or wrong, but not know if the IQD is held as a reserve. I would wonder if he knows anything in that case, and I wonder why he did not do a Google search to find out at least if the IQD was held as a reserve. His words:

"But I don’t believe any other countries do hold the dinar as reserves...."

"... I don’t even know if there would be a rate for old dinar. I think you might have to exchange them for new dinar before you could exchange them for dollars...."

I hope that clears it up.

[idplzr]

Finally! A like minded individual! Somebody that speaks "beer thirty" lingo. Cheers!!!!! : D

Some of the best conversations and ideas take place at beer thirty:)

[ScooterScum]

Wasn't Bernie Madoff a hedge fund manager???