RV will start a war in IRAQ

[Mike12570]

I just can't see how this RV works out. LETS hear from the real money expert.

Joe's car broke down, will cost joe 1,000,000 Dinar to fix it. He has no money

Joe go to his friend Jack, he got 1,000,000 from Jack. He promise to pay back by the end of the month since Joe is making 200,000 dinar a day pumping oil

Now the RV happen over night to 1000 fold per USD.....and Joe only make 200 dinar a day now.

Jack wants his 1,000,000 dinar back...not USD...Iraqi Dinar....Jack gave Joe 40 of the 25000 Iraqi bank notes.

If Joe would have not gone to Jack for the money Jack would have been a real millionair......HELP....Jack's wife is killing JACK

IMO......over night RV will never happen

The value will gradually goes up to give people a chance to catch up to...there is no silver bullet whatsoever.

Your input is appreciated.

[only 1-25k dinar]

Wouldn't the loan actually be the amount of value of the dinar money loaned and not the actual number of dinars? The

value if it RV'd would be much less dinars than the originally amount of dinars for the cost...hmm I

am not very good at explaining what I am trying to say...LOL I am sure someone will understand

what I mean......

[RVPleaseToday]

An RD is the only value neutral event.

Before they can RV, they are going to have to codify ways to deal with situations like the OP describes. Perhaps they already have.

Significant inflation is one of the big concerns of a large RV.

[Polishfloridian]

I agree 25k dinar...... Joe would have to pay him the equivalent in dinar , not "One million" dinar. Would probably have to go to court if it happened here in USA. Only one small example by Mike here..... not sufficient evidence to prove no "overnight RV" But whatever happens, I for one will continue to do my due diligence.... ask questions........ ask more questions........ make informed decisions.

Enjoying the ride with y'all

thanks,

Art

[rockfl9]

Not quite right. In-country the one dinar is still one dinar but its purchasing power is changed. the loan would still be 1,000,000. But with a 1000X RV the co jack works will now only get 100 dinar for a barrel of exported oil, jack gets laid off. The price of imported gasoline goes from 5,000 dinar to 5,000,000 dinar Joe cant afford to drive anymore so he gives back the loan! The CBI/MoF is not going to let that happen.

Look at a 2X RV... A barrel of oil was 100,000 dinar now 50,000 co cuts jack to 100,000 dinar a day...gasoline 5,000 to 10,000 dinar. Joe,s repair job cost goes to 1,500,000 dinar because the parts must be imported , needs another loan from Omar! Civil unrest like Iran at least.

[jeepguy]

a re-value in currency , would bring area buyers too the iraq field of play ,,{ meaning .. the local countries around iraq would use the dinar too do trade ,, seeing how those same folks do not like the u.s. or anything about it the dinar should take off like gang busters ,,,, also the contractors working in country would get paid in dinars this is a plus ,, } but we get back too ------> getting the iraqi folks too take faith back in the dinar and the economy ,, all the articles we have seen about the auctions of u.s. dollars,, it makes me wonder ,,, why are they auctioning off the dollar it is the same price every where ??? so it must have a value just too be getting it ,,, not much too go around so-too- speak ,,, if the iraqi can get traded internationially ------- we are off and running too the banks --- we shall see in the 1 2013 time line,,, really do not think a war would break out over r.v. of dinar

[rockfl9]

Jeepguy:::::You must not understand the purpose of the auctions!!! The GOI employs 4M people that it must pay in dinar. The only way it can get it is to SELL the dollars it recieves for oil export. The CBI is the GOI's banker. It is a big loop, It is used over and over , none is taken out of circulation! So if the price of oil is fixed at say $100/bbl and the exchange rate falls to 1 to 1 GOI income falls to 1/1166 of previous income ....To ballance the books it will have to cut expenses ( employee salaries) instantly....

[ArmyRecon]

"Haitham al-Jubouri called "central" to raise the value of the Iraqi dinar against the dollar"

What he is really calling for here is he would like to see the value of the dinar increase before they do the new budget

which is what the CBI had called for before - Now Remember lets see what has happened over the last couple of days....an article comes out by one newspaper they are going to oust Shabibi which turns out to be false - only one other article that showed up that kinda backs that just a small bit and then they disappear - of course what happens is you get people rallying for the Central Bank and these articles start to come out - One of the things they would really like to do is to re-determine their budget if they are going to increase the value which they have to increase the value at some point in time - they would like to do it so that they can do the budget in the new dollars - you are going to see those articles come out in the next couple of days and you are going to hear the pros and cons for all of that coming out shortly which we would love to see..........more power to them.........keep on talking like that

[keepmwlknfny]

......over night RV will never happen

The value will gradually go up

Yep......thats the only way this will happen.....

[EC429]

I understand the logic of the float, however, would not the country be far better off if the RV just started at something like at least 3.00?