Why buy Dinar?

[Bored]

I know that the Iraqi Dinar is one of the most popular scams on the market out there but don't be too quick to dismiss it simply because of its unpopular opinion.

Let me clarify something, when they call the dinar a scam they are referring to dinar dealers that jack up the price of the dinar they are selling and essentially rip people off. The other scam that I've heard of that isn't quite as popular is that you send your money to a individual that as an Iraqi bank account, i.e. a Warka Account (yes you can get one of these as a U.S. citizen..I have one and I'm just your typical college student), and promises to give you your fair share post revaluation. The fact is with this one is that the individual has no responsibility to give you what you "earned" back. Not gonna go into the legal explanation of this but don't do it.

What I'm here to tell y'all about is that the Iraqi Dinar is a legitimate speculative investment IMO, let me tell you why. Pre Sadam era the dinar was worth about $3 and change. Its now worth $1=1166 dinars so it’s about a tenth of a penny. In the early 2000s the exchange rate was $1=3000 dinars so if you would have bought dinar back then you would have already almost tripled what you put into it, which is pretty good by itself.

Many people make fun of people who hold dinar because we are wait for a supposed revaluation (RV) of the currency that will make them instant millionaires. These naysayers simply scoff at the idea solely because this idea seems so far fetched but this process is happening as I type this. Iraq has 3 options on how they are going to do this: Revaluation (RV), Redenominating (RD) or a LOP. (its probs not gonna LOP based on current articles but anything is possible). I’ll explain what these are later.

Lets lay out the facts! What makes a currency worth anything? Well in a nutshell it’s a conglomeration of a lot of things and I’m no expert on this stuff, like I said just a college student (not even a business or economics major).

When the U.N. sanctioned Iraq in the Sadam-era Iraq had billions of dollars in foreign banks as well as assets that were frozen, as in Sadam couldn’t access them, but still have been gaining interest, essentially there like giant savings accounts. In the US alone they had 60 billion dollars that were frozen. Iraq has accounts like this in multiple countries such as China, Japan, Great Britain, and etc. So they literally have billions of dollars just sitting around the world gaining interest. Besides that they are constantly buying tons of foreign currency (most governments do this) especially U.S. dollars to help back up their currency, plus they have tons of gold bars.. recent article I read said the Kurdistan imported 34 TONS of gold and that’s only one part of the nation! 34 tons of Gold x 48,971,392.00 today’s going rate for a ton of gold and you get a grand total of 1,665,027, 328 dollars.. one “state” of iraq imported that.. I don’t know off hand how much they have as a total for their nation but you can bet that it’s a ton. (couldn’t resist)

Aside from this Iraq has an unbelievable amount of natural resources. The most obvious one is oil. Iraq has a huge supply of sweet crude oil (2nd largest in the world), which is the best type of oil you can find because it’s very easy to refine. Iraqi is currently pumping out about 3 million bpd and the International Energy Agency conservatively predicts this to double by 2020. Iraq’s current PM of Energy predicts that they could reach up to 10-11 million bpd, which would make them equal to the oil production of Russia (which is a hell of a lot bigger). Iraq is currently the 2nd largest oil producing country in OPEC. At the current rate they are pumping the oil they stand to gain a PROFIT of 100 billion dollars annual.. so lets say they merely double that in a century (being extremely pessimistic) that would be 200 billion dollars of profit annually from oil alone.

They also have massive amounts of gold and phosphates deposits that are untouched. In addition to this, the majority of Iraq is has not been surveyed for natural resources. This means aside from the resources that they already have (gold and phosphates in unprecedented amounts) they could have even more on top of that, including more oil. Also lets not forget that is Iraq is in part of the world called Fertile Crescent! I know when we think of Iraq we think of a desert but the potential for agriculture here is also very high. This at the moment would not increase the dinars value but would be calculated in when it comes to alternative drivers of Iraq’s economy. My point here being that Iraq has a ton of potential when it comes to natural resources, even outside of oil. Iraq has tons of potential in tourism as well due to the historical and religious importance of the region. Also the economy in Iraq has the potential to really take off.. I’ll go further into this a bit later.

I’m sure there is other factors the help bolster the value of the dinar as well that I’m omitting. (forgive me I’m writing this all off the top of my head) So in short, Iraq has the natural resources, gold and foreign currency reserves, and the added bonus of massive economic growth to bolster its economy.

This is where it gets GOOD! The CBI (Central Bank of Iraqi) has been pumping out articles about how its been reducing their money supply for years now… don’t quote me on this but I believe it was at 70 trillion and its down somewhere at around 30 trillion last I heard, but here’s the kicker the exchange rate never moved. (yes I know I said earlier that the exchange rate use to be 3000 and now its 1166 but this occurred before they were reducing the money supply) This is how I explained it to my mom.. for the sake of my illustration G = everything I just discussed that backs the dinar and D = Dinar… so lets say you’re the CBI and you have GGGG and DDDD so 1G=1D but lets say you’ve reduced the money supply by half. Now you have GGGG and DD so 2G=D so therefore 1D is worth more! The problem is that over in Iraq they did just that! They decreased the money supply but the exchange rate didn’t move which tells us that something’s up. I believe it’s called a dirty float…

One of the things they did to reduce the money supply was they flooded the streets with the USD, which the people were all for because in order to buy anything substantial you would have to literally have a suitcase full of money, because the dinar is so worthless at this point, toilet paper currency. This process allowed them to take a substantial amount of the big notes (25k and etc.) off the streets while simultaneously stabilizing the economy by encouraging trade. So people would exchange their dinar for USD and use that for their everyday life. You may ask why didn’t they just use a debt card system. Two reasons, the first being that they are working towards that in the very near future but have difficulty doing it because up until recently (the last month) there would be mass blackouts for a number of reasons, in addition to not all parts of Iraq have electricity. The 2nd reason is that the younger generation (the vast majority of Iraq, average age is about 20) has no experience with such technology and is currently being educated about it and those old enough to live through Sadam and the war are very nervous when it comes to banks. Sadam and sons use to walk into a bank and empty it out taking peoples life savings, thus the old don’t trust banks. But back to the topic at hand… they flooded the streets with the USD to reduce the money supply and for the past couple of years have been working on now reducing the amount of USD in the market and are encouraging people to use the dinar, banks, and Qi Cards. They have already purchased the new ATM machines, installed them, and are only waiting to load them. In addition to this Qi Cards (debit cards) are being in slowly introduced to the general public but its slow going due to education, mistrust of banks, and up until recently a lack of infrastructure.

In a nutshell they’ve reduced their money supply but their exchange rate didn’t change, BIG RED Flag! They’ve used a couple of tools in order to reduce it but the process rather complicated and this thing has become a monster already so I’ll only explain if asked..

More Evidence..

This investment is for sure a speculative investment, don’t let anyone tell you anything else, but it is an investment not a scam. Here are some facts about Iraq that further points to a soon coming change in their exchange rate. I suppose I could have put it up top but Ernst and Young did an internal audit of Iraq and found that they could support a $1 to 1 Dinar exchange rate. This audit was done a few years back, I believe in 2010, but this audit did not include Iraq’s frozen assets. Another more recent study done by the Iraqi Ministry of Planning came out with the true exchange rate of the dinar was $3.20. Now it would never RV at this rate because it would cause reverse inflation, but that study included Iraq’s foreign assets as well as everything else. The rate at which the dinar will RV at will most likely come out between .86 and $1.20. Theses figures have been put out in multiple articles by multiple agencies within Iraq. (Will provide proof if asked)

The reason it would come out at this rate is because it would help “dedollarize” Iraq and would allow them to slowly raise the rate to the true rate. In addition this it allows them to exchange the old currency, which they issued in 2003, for the new notes (which are not in circulation yet) at a cheaper rate. The old currency is made out our 25k, 10k, 5k, etc notes and the new currency starts at the largest note of 200 dinars all the way down to 25 Fils (their coins). The logic here is that why would you spend millions of dollars (172 billion dinar at current rate) for a currency that’s going to be worth even less than the bills that they are replacing. The current 25k note is only equivalent to about 21 dollars so if they replaced the currency with the largest at 200 dinars Iraqis literally would have to carry thousands of notes to make every day purchases.

Another interesting FACT is that the U.S. treasury has TRILLIONS of dinars. Why would the U.S. have trillions of a currency that is worth nothing?

Another thing that I find interesting is the flocking of companies to Iraq. I suppose you cannot catigorize this or my previous statement as proof that Iraq will RV but they strongly suggest that the general public is missing something. These companies include: Caterpillar, Hyundai, GM, Volvo, Mercedes Benz, Microsoft, Rotana Group (luxury hotels), Boeing, Bell Helicopter, JP Morgan, Lockheed Martin, a 11.28 Billion dollar contract given to Turkish consortium to build 75,000 houses, and 24% of all foreign investment in Iraq came from South Korea (millions if not billions of dollars). These are just the ones I could name off the top of my head. Why would companies fight each other for contracts in Iraq and dumping millions of dollars into Iraq if they didn’t expect a return? And these companies aren’t just making factories over there for cheap labor (Iraqi’s generally don’t work, it’s a long explanation) they are creating stores anticipating consumption!

Iraq’s GDP is pretty much equal to the its neighbors but there currency is worth nothing compared to their neighbors.

I’ll give a brief explanation on RV, RD, and LOP.

RV, Revaluation, which would essentially be a the CBI would change the exchange rate (which no one actually knows except the higher ups in Iraq, Maliki, Shabibi [who’s on “leave”], Selah and etc.) But as I said earlier that it would be around a buck or they could slowly increase the rate or some combination of both. It’s more likely to come out to come out as a buck in order to help “dedollarize” Iraq as I said before and slowly move up to its true rate of $3+. This process as they call it in Iraq is the deletions of the 000’s. They call it this is because the ultimate goal of this process is to get all those big notes (25k, 10k, 5k, etc.) off the street. If they would RV and RD would be imminent down the road in order to make change. There will not be an in country RV as in you could only “cash in” in Iraq because off so many foreign countries, companies, and individuals hold it. If they did this no one in the international community could associate with them. One of the goals of this process is to help the citizens of Iraq (about 25% of Iraqis are below the poverty line) and to bring Iraq into the international community. You can’t pay foreign companies and contractors in dinar, which they do, and then tell them that it’s worth nothing. So an RV means a new exchange rate, yet again no one knows the rate.

RD, Redenomination, is the retiring of one currency for another. Essentially what would happen would be they would announce that a new currency is being introduced, the old and new currency would coexist for an extended period of time but the old would eventually be retired. This would require an adjustment of the exchange rate because no one is going to trade in a 25k note for a bunch of 200 and 100 notes because its just more clutter for them. As I said earlier right now in order to conduct business over there they pretty much need wheel-barrels full of cash to do anything! (Remember they don’t use banks) You might think that would make Iraqi’s into millionaires over night but the average income for an Iraqi is only about 5k a year which they primarily have in dollars.

LOP, Zero lop, is essentially just saying were taking the 000’s off the currency and correcting the exchange rate. So your 25k note which is essentially worth 21 dollars is now only 25 dinars worth 25 dollars. The reason many believe this won’t happen is because the CBI as pretty much said there not going to do this. Over the years they’ve come out with tons of articles stating that they’re going to take the big notes off the streets which they have and continue to do and will replace them with lower denominations. The whole point of the project of deleting the 000’s is to reduce the amount of carrying cash and increase the purchasing power, a lop does not accomplish this. A LOP is also pretty much only used when there is hyperinflation.. Iraq’s is at about 5%.

The most interesting bit of information that I’ve ever stumble upon while researching this investment was a this. Its quiet lengthy, but it is worth the read.

The reason that his process hasn’t occurred yet is simple, politics. You would not believe how slow they are at doing things over there but why it hasn’t RV’d or RD’d yet is a whole other discussion.

I hope your found this interesting. The dinar isn’t a guarantee of anything but its worth a closer look. No one can promise you anything when it comes to investing and the dinar is just the same. In my honest opinion this is a once in a lifetime investment and it would be a shame if you dismissed it just based on bad media. Say you invest 1000 dollars in this.. that 1000 dollars gives you the potential to become a millionaire over night. Just because it seems too good to be true doesn’t mean that it isn’t. “Only the general public buys high and sells low, when you hear about something the smart money has already been made.” I personally believe in this investment based on the facts I presented you. No one knows the date or the rate, but to me it’s obvious that something happening in Iraq. Feel free to comment or ask questions.. Sorry this was so long. Tried to be concise while still being thorough and accurate. Be careful you don’t get ripped off when you buy dinar (the actual scam) but there are some legit places on the web to get it. I got most of mine from my local bank but most banks don’t carry it anymore due to the inconvenience it caused. (people would constantly call and ask the exchange rate) GO RV!!!

[keepmwlknfny]

1. The scam part of this investment is the promise of waking up a millionaire......

2. Redenominating/lopping the zeros is the same thing as described by the CBI....

3. The money supply hasnt been reduced at all....it has only grown substantially....which is whats holding the dinars value from growing. The dinar is not on a dirty float....its value is based on the reserves backing it.

4. A lop does in fact reduce the amount of currency in circulation, while giving the new currency a higher value and purchasing power and its done AFTER periods of hyperinflation. Its unfortunately exactly what the CBI is and has been explaining on this plan to "delete the zeros". You should google Turkey's "revaluation" and Russias "revaluation" which were in fact lopping zeros off the currency.....

5. I think the whole "our govt is holding trillions of dinar" has been beat to death and no need to go there, but you surely cant call it FACT.....

[jeepguy]

ahhhhhhhhhhh dang - buddy that is quite a view of things ,,, Another interesting FACT is that the U.S. treasury has TRILLIONS of dinars. Why would the U.S. have trillions of a currency that is worth nothing < ----- this part really hasn`t been verrified only that accounts under a different locality { under other area`s of currency } not out right stated as dinar ,,, ----> 34 tons of Gold x 48,971,392.00 today’s going rate for a ton of gold and you get a grand total of 1,665,027, 328 dollars.. < ---- auggg is that 1 trillion of gold but all in all ---- good break down for a college student ,,,, hope your synopsis is right on

[Bored]

ahhhhhhhhhhh dang - buddy that is quite a view of things ,,, Another interesting FACT is that the U.S. treasury has TRILLIONS of dinars. Why would the U.S. have trillions of a currency that is worth nothing < ----- this part really hasn`t been verrified only that accounts under a different locality { under other area`s of currency } not out right stated as dinar ,,, ----> 34 tons of Gold x 48,971,392.00 today’s going rate for a ton of gold and you get a grand total of 1,665,027, 328 dollars.. < ---- auggg is that 1 trillion of gold but all in all ---- good break down for a college student ,,,, hope your synopsis is right on

We don't officially hold in our forex reserves but we do have them. Link Why would we list them on our forex reserves at this point, they're essentially worthless.. right now..

A weaker argument would be towards the bottom of this article it says, "Because the new Iraqi dinar was so popular, the central bank bought billions of U.S. dollars to keep the dinar from appreciating too much".. well what do u think they used to buy the dollars? Dinar and who do you think they bought it from? The US. Unfortunately you have to infer this information so I can't say definitively thats what it says..

And yes that is a trillion in gold.. didn't even mention the additional 5 tons of silver either.. .. Link

and upon closer inspection this translation says "tones"... when i wrote this i took the cautious rout and interperted it as tons and not tonnes.

1 ton of gold = $48,971,392.00

Link

[jeepguy]

you know bored guy --- you might have something there ,,, but lets not forget ,, oil is king and the contracts signed , i think back in the earily days of 04 i think ,,, they signed oil agreements too the sum of 50 too 60 dollars a barrel of oil ,, this was done with the u.s. goverment , i am thinking this is what prop the dinar too start with ,, and the iraqi rebuilding funds helped out when they were turned back over too the iraq goverment ,,, not saying your wrong ,, just putting some more thoughts into this dinar deal ,,,

[Bored]

you know bored guy --- you might have something there ,,, but lets not forget ,, oil is king and the contracts signed , i think back in the earily days of 04 i think ,,, they signed oil agreements too the sum of 50 too 60 dollars a barrel of oil ,, this was done with the u.s. goverment , i am thinking this is what prop the dinar too start with ,, and the iraqi rebuilding funds helped out when they were turned back over too the iraq goverment ,,, not saying your wrong ,, just putting some more thoughts into this dinar deal ,,,

O don't get me wrong i'm not saying that Gold is the main driving force behind the value of the dinar, its definitely oil.. like i said 2nd largest oil reserve in the world (sweet crude baby!).. IMO the drivers behind the value of the dinar are: Oil (whether its sold to the US at discount or everyone else at full price) , Previously and currently frozen assets (not sure if everything is unfrozen cause of Ch. 7), foreign currency reserves (forgot about the billion $ they found in Sadam's house) , gold and silver reserves, other natural resources (Gold, phosphates, etc), foreign investing, economic/agricultural potential just to name a few.. im sure there are other factors but none that come to mind..

[jerry333]

Excellent article!!! I have several degrees, and this was well thought out. Especially, when it is off the top of your head. I could follow your thought process very clearly, and don't worry about "KEEP", he is ALWAYS negative about this investment. He is a very "DOWN" person in life. Very good writing and well thought out. GOOD JOB.

[keepmwlknfny]

Excellent article!!! I have several degrees, and this was well thought out. Especially, when it is off the top of your head. I could follow your thought process very clearly, and don't worry about "KEEP", he is ALWAYS negative about this investment. He is a very "DOWN" person in life. Very good writing and well thought out. GOOD JOB.

Yea I know....shame on me for trying to put some true facts out there instead of just believing whatever sounds good......I should go sit in the corner for trying to correct some "forum facts" huh??

[cajunrescuemedic]

I sincerely hope that when the IQD does RV, it's higher than we all expected. I still feel Iraq is going to need an internationally tradeable currency. Coupled with the fact that Iraq is literally floating on oil, and loaded with many other natural resources. So to me, there's really no reason why our investments in the IQD wasn't a good idea. I'll surely be doing the happy dance when I recieve that text from Adam.

[rockfl9]

Bored must have a lot of time to collect a post of a lot of OLD MISINFORMATION....I suspect a pumper trying to recruit College students to risk some grant money in dinar...Good that he told us he was not a economics or finance student or his job prospects are nil. Possibly a political science student ( now that's an oxymoron) !!!

[pocono]

Yea I know....shame on me for trying to put some true facts out there instead of just believing whatever sounds good......I should go sit in the corner for trying to correct some "forum facts" huh??

If memory serves the BH Group was indicted for using " forum facts" one of which appears in the OP.. " The UST has trillions of dinar"..

One day you'll be redeemed but I suspect there won't be any apologies forthcoming...

[keepmwlknfny]

Bored must have a lot of time to collect a post of a lot of OLD MISINFORMATION....I suspect a pumper trying to recruit College students to risk some grant money in dinar...Good that he told us he was not a economics or finance student or his job prospects are nil. Possibly a political science student ( now that's an oxymoron) !!!

If memory serves the BH Group was indicted for using " forum facts" one of which appears in the OP.. " The UST has trillions of dinar"..

One day you'll be redeemed but I suspect there won't be any apologies forthcoming...

I didnt take the time to read through all the indictments but it wouldnt surprise me.....its one of many misleading statements that is used to pump the hype!!!

[pocono]

I didnt take the time to read through all the indictments but it wouldnt surprise me.....its one of many misleading statements that is used to pump the hype!!!

That was one of the allegations and supported by the fact the UST denied having any substancial amount of IQD or any intention of dealing with it...the most significant charge, imo, involved the defendants promoting an immInent RV when according to the Feds the CBI was clearly indicating they would RD and again,according to the indictment the Feds determined that would be a "neutral" event...

[Bored]

Bored must have a lot of time to collect a post of a lot of OLD MISINFORMATION....I suspect a pumper trying to recruit College students to risk some grant money in dinar...Good that he told us he was not a economics or finance student or his job prospects are nil. Possibly a political science student ( now that's an oxymoron) !!!

No Im not.. I didn't even write this for this site, just posted it here to see what y'all thought about it... I'm a bio major.. I have a cold so instead of going out I sat around and ended up writing this thing. If you would like to point out the misinformation please tell me so I can correct myself and apologize for misleading the masses. As you can see from my response to jeep guy I attempted to base what I wrote on things I knew I could back up. So as I said before point out this suspect information so I can either amend my theory or maybe show you something that you happened to miss.. Sad to see that some of the older people on here (yes I'm assuming your older than me) aren't interested in furthering our collective knowledge of the dinar which is pretty much the point of this site, sharing information. (and i did post this under the correct subform [opinions, perspectives, and your two cents]) BUT would rather insult people they don't even know...

I understand that we as a community have been through a lot and we all would like this to be over and for everyone to get what they want... its easy to become cynical with all the guru's, misinformation, and general disappointment that has occurred in this investment. BUT that being said thats no excuse to just be extremely rude.. I may disagree with what keepmwlknfny has to say, and I will write a reply to it when I have the time to gather the information (sorry for the delay, been in the library and only had my phone) but atleast hes just putting his just putting his honest opinion out there.. wasn't rude about it, just pointed out were he though i was wrong.. which is the point of this subform...but YOU have contributed nothing of value... Only brought our community down with your asinine and unwarranted comment.. ... if u didn't guess im the green one..

[R Veyron]

1. The scam part of this investment is the promise of waking up a millionaire......

2. Redenominating/lopping the zeros is the same thing as described by the CBI....

3. The money supply hasnt been reduced at all....it has only grown substantially....which is whats holding the dinars value from growing. The dinar is not on a dirty float....its value is based on the reserves backing it.

4. A lop does in fact reduce the amount of currency in circulation, while giving the new currency a higher value and purchasing power and its done AFTER periods of hyperinflation. Its unfortunately exactly what the CBI is and has been explaining on this plan to "delete the zeros". You should google Turkey's "revaluation" and Russias "revaluation" which were in fact lopping zeros off the currency.....

5. I think the whole "our govt is holding trillions of dinar" has been beat to death and no need to go there, but you surely cant call it FACT.....

Thank you for keeping it real.

[doctor robbins]

That was one of the allegations and supported by the fact the UST denied having any substancial amount of IQD or any intention of dealing with it...the most significant charge, imo, involved the defendants promoting an immInent RV when according to the Feds the CBI was clearly indicating they would RD and again,according to the indictment the Feds determined that would be a "neutral" event...

I believe this should be required reading for every dinar investor.

BH Group Indictment PDF File

[rockfl9]

Bored::: Sorry if you were offended... But I really had to wonder why a college student would take the time to post a long list of "facts" that most here know are false OR at least unproven. It read like you were copying stuff from the guru sites.

For a few :

The UST does not hold any significant amount of dinar..

Kurdistan government did not purchase any gold .. The gold was imported for jewelry use. The amount was about 3 tonnes.

The money supply has not been reduced... The CBI 2011 annual report says 72 trillion dinar in circulation. NOT removing any 000 notes. You are confused by the "lift the zeros " terminology.

The CBI has stated in intends to redenominate not revalue the dinar.

$100 Bn is oil revenue , not profit.. Actual number for 2012 estimated about $90Bn AND they spent it ALL. NO profit.

As you said, not finance or economics. so I can understand you are confused by big numbers...

Hope your cold is gone. Good luck on the mid-terms...

[Bored]

Bored::: Sorry if you were offended... But I really had to wonder why a college student would take the time to post a long list of "facts" that most here know are false OR at least unproven. It read like you were copying stuff from the guru sites.

For a few :

The UST does not hold any significant amount of dinar..

Kurdistan government did not purchase any gold .. The gold was imported for jewelry use. The amount was about 3 tonnes.

The money supply has not been reduced... The CBI 2011 annual report says 72 trillion dinar in circulation. NOT removing any 000 notes. You are confused by the "lift the zeros " terminology.

The CBI has stated in intends to redenominate not revalue the dinar.

$100 Bn is oil revenue , not profit.. Actual number for 2012 estimated about $90Bn AND they spent it ALL. NO profit.

As you said, not finance or economics. so I can understand you are confused by big numbers...

Hope your cold is gone. Good luck on the mid-terms...

Sorry I kind of went off on you last night, a bit overtire so first let me apologize. 2ndly I only report what I've read and I typically don't read anything from gurus.. I know that the UST doesn't list the dinar as part of its forex reserves but I came across this article a while back.. Jeep guy asked me this question earlier and i explained it a little further there so scroll up if u'd like..

And in my initial article I said the Kurdistan Gov. imported gold.. and I think I misspoke in my reply to jeep guy.. don't know why i mentioned tones.. but this article says they imported 34 tons of gold and 5 tons of silver.. LINK

I did have to translate the article so I don't know if its a bad translation- used google translate..

I did mistype when I said profit, ment revenue.. my point there was to just to emphasize that iraq's oil production rather large growing..

I never said that they were going to RV in my initial article.. i laid out the options.. wether it RV's or RD's isn't really important to me.. if they RD they would have to at least partially correct the exchange rate of the dinar in order to dedollarize and it would make no sense for them to keep the exchange rate that they have and expect people to trade in their larger notes for a bunch of smaller ones.. they would need 2 wheel barrels than..

and yes it is my personal opinion that they have been reducing the money supply and I know that the CBI site says that they have 72 trillion dinar in circulation, but they also say the true rate of the dinar is $1=1166.. which none of us believe to be true otherwise we wouldn't be here..

Edited November 5, 2012 by Bored

[skinz]

If proven oil reserves is the driving factor for the value of a currency, why isn't Venezuela or Saudi Arabia's currency worth more? Country with the most proven oil reserves = Venezuela - 288,571,000,000 (bbl) - 1 Venezuelan Bolívar is equal to .23 US Dollars. Number 2 for proven oil reserves is Saudi Arabia - 265,405,000,000 (bbl) - Value of currency = 1 Saudi riyal = 0.2666 US dollars. Why does Iraq "have" to revalue and not these other countries?

[dontlop]

ahhhhhhhhhhh dang - buddy that is quite a view of things ,,, Another interesting FACT is that the U.S. treasury has TRILLIONS of dinars. Why would the U.S. have trillions of a currency that is worth nothing < ----- this part really hasn`t been verrified only that accounts under a different locality { under other area`s of currency } not out right stated as dinar ,,, ----> 34 tons of Gold x 48,971,392.00 today’s going rate for a ton of gold and you get a grand total of 1,665,027, 328 dollars.. < ---- auggg is that 1 trillion of gold but all in all ---- good break down for a college student ,,,, hope your synopsis is right on

my math might be screwed up .. but if a ton of gold is just under 50 million dollars .. 20 tons would be one billion dollars 40 tons would be 2 billion dollars ..

iraq doesnt have a trillion dollars of anything except oil in the ground that is around 17 trillion dollars worth of "proven reserves".. and around 7 trillion in natural gas.. their rea estate and treasure artifacts ect, may equal a trillion or so ..

to me the only way to get a huge rv is if it is commodity backed with oil ..

i dont see the imf giving iraq trillions of dollars worth of currency out of the kindness of their heart ... then saying you still got all that oil and gas to sell too

Edited November 5, 2012 by dontlop

[keepmwlknfny]

If proven oil reserves is the driving factor for the value of a currency, why isn't Venezuela or Saudi Arabia's currency worth more? Country with the most proven oil reserves = Venezuela - 288,571,000,000 (bbl) - 1 Venezuelan Bolívar is equal to .23 US Dollars. Number 2 for proven oil reserves is Saudi Arabia - 265,405,000,000 (bbl) - Value of currency = 1 Saudi riyal = 0.2666 US dollars. Why does Iraq "have" to revalue and not these other countries?

Cause its not....

[Bored]

If proven oil reserves is the driving factor for the value of a currency, why isn't Venezuela or Saudi Arabia's currency worth more? Country with the most proven oil reserves = Venezuela - 288,571,000,000 (bbl) - 1 Venezuelan Bolívar is equal to .23 US Dollars. Number 2 for proven oil reserves is Saudi Arabia - 265,405,000,000 (bbl) - Value of currency = 1 Saudi riyal = 0.2666 US dollars. Why does Iraq "have" to revalue and not these other countries?

I think it has to do with what type of government they have.. i think Breitling explained it a while back but i don't remember...

[rockfl9]

Bored :: using Breitling as a source lowers your credibility .... Is a known guru .....spreads a lot of misinformation....

Strength of currency is based on a lot of things most important is balance of trade and GDP growth. For the dinar to RV to 1000 to 1 the reserves would have to grow to $86Bn... That money would have to come from the MOF and they dont have it to spare at this time.

[Bored]

didnt use him as a source.. just said he talked about it.. where you get 86Bn from? and how much do they currently have?

[gatoraces]

Why buy dinar? The simple answer is 'just in case'.