Iraq: Permit the governor «Central» the power to raise the value of the dinar

[Markinsa]

When you're quantifying how many dinar are in circulation, by looking at their M1 or M2, you obviously don't count USD, because they're not dinar.

Are you saying how many dinar are in circulation has no bearing whatsoever on the value of the dinar?

The CBI is concerned about Inflation, which M2 is a figure they rely on. The USD is coming into Iraq for the purchase of Oil. Their money supply is increasing because of that. Simple Economics says Supply and Demand determines what the Dinar will be valued at. If people think that 1 Dinar is worth 1 Dollar, with Trillions of Dinar in Circulation, it won't matter what the CBI does, 1 Dinar will be worth 1 Dollar.

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[Jejune]

The CBI is concerned about Inflation, which M2 is a figure they rely on. The USD is coming into Iraq for the purchase of Oil. Their money supply is increasing because of that. Simple Economics says Supply and Demand determines what the Dinar will be valued at. If people think that 1 Dinar is worth 1 Dollar, with Trillions of Dinar in Circulation, it won't matter what the CBI does, 1 Dinar will be worth 1 Dollar.

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The M2 of the dinar. The USD is not part of that figure. If you look at the CBIs financial statements you will see that the USD they possess are accounted for in their reserves, not in their M2. USD increases their reserves, not their M2.

Why would people think that Iraq should be capable of supporting 75 trillion USD worth of currency, when a country like Saudi Arabia, that is far more stable and produces far more oil, can only support around 250 billion worth of currency? Why do you think Iraqs currency should be worth 300 times more than Saudis?

[bowling4dinars]

The M2 of the dinar. The USD is not part of that figure. If you look at the CBIs financial statements you will see that the USD they possess are accounted for in their reserves, not in their M2. USD increases their reserves, not their M2.

Why would people think that Iraq should be capable of supporting 75 trillion USD worth of currency, when a country like Saudi Arabia, that is far more stable and produces far more oil, can only support around 250 billion worth of currency? Why do you think Iraqs currency should be worth 300 times more than Saudis?

Uhhhh. Why do I keep hearing crickets?

[yota691]

hmm just joined huh? welcome back banned lopster you are NOT fooling anyone

they seem to make it back, over and over!! they state the same

[geman]

Yota just came on it's 5;53 any luck finding what you were looking for

[geman]

Bump

[Neapolitan]

Bump

[cdr]

bump

[Jejune]

Bump?

[TQueezy]

Bump?

Bump!

[Markinsa]

The M2 of the dinar. The USD is not part of that figure. If you look at the CBIs financial statements you will see that the USD they possess are accounted for in their reserves, not in their M2. USD increases their reserves, not their M2.

Why would people think that Iraq should be capable of supporting 75 trillion USD worth of currency, when a country like Saudi Arabia, that is far more stable and produces far more oil, can only support around 250 billion worth of currency? Why do you think Iraqs currency should be worth 300 times more than Saudis?

If you read the Financial Statements of the CBI, Foreign Currencies, when deposited in any Iraq Bank, are immediately converted to Dinar. Therefore, deposits for Oil Sales are included in M2.

P.S. I know this isn't the post you other guys are looking for. YOTA com'on man! Where's the info you promised!!!!

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[Darin]

When you're quantifying how many dinar are in circulation, by looking at their M1 or M2, you obviously don't count USD, because they're not dinar.

Are you saying how many dinar are in circulation has no bearing whatsoever on the value of the dinar?

I would imagine some businesses/banks here in the U.S. may hold foreign currencies, right? But when they value their liquid assets, they may represent that value in a simple format of USD value. Who is to say that the same can't be said for some banks in Iraq.

Wouldn't that come with ease as well? It seems it would be easier to say I hold a U.S. or IQD value of "X" amount. It would be much easier than saying, I hold X amount in Euros, X amount in Yen, etc. etc.

Look at how the reserves are valued on Cbi.iq - it's referenced in billions of US. Think that value is US only? If it is, good for us, since the other currencies help strengthen the value, but we know that isn't the case.

They may hold X amount in Euros, X amount in CAD, X amount in Yen, etc. but the US cash value is what is represented. Could this cause accounting mishaps for assuming what is really in circulation? Possibly - because maybe banks hold USD and account it as IQD when reported (the digital currency).

If you read the Financial Statements of the CBI, Foreign Currencies, when deposited in any Iraq Bank, are immediately converted to Dinar. Therefore, deposits for Oil Sales are included in M2.

P.S. I know this isn't the post you other guys are looking for. YOTA com'on man! Where's the info you promised!!!!

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Kind of what I was referencing to... Digital currencies can easily & simply come about from USD deposits.

[tilak]

The next rate...1120.....JMO

[gman51]

I'm going to stand by the theory I have backed for years now. I believe you are 100% correct in what you are saying. However, my theory is that it will be an in country lop only. This will allow Iraq to collect the 000's from inside the country and create a smooth process over to the new denoms. After that phase is complete, I believe foreign investors will be able to cash in their dinar at face value through the banks in their countries. The federal reserve banks in those countries will then collect that dinar and give it back to Iraq in return for oil at a pre determined rate of exchange. Again it is my belief, and only my belief, that the plan from the beginning was to allow the people of Iraq to prosper through the HCL while foreign investors will prosper due to their foresight to invest in the rebuilding of Iraq through purchasing their currency. Unfortunately, I think a lot of investors are going to cash in after the in country lop thinking that is the end of it. DO NOT fall into that trap. Be patient and wait for the other shoe to drop. That is when the true blessing will unfold.

That is one theory among many. Only time will tell where the truth lies.

Have a great day all.

This idea of trading Dinar for oil has always intrigued me. Our government doesn't buy the oil in this country, the oil companies do. Don't they? Hummm

[Elixirbaby]

GM Yota. Did you ever receive your email?

[yota691]

GM Yota. Did you ever receive your email?

Here it is, this subject was brought up at the first of this year when they had the articles that talk about the 1000..Basically they raise the rate until 1000 dinars equals 1 US dollar. That gives them an in country rate and a starting point to let it trade with the market. At that point they can have both currencies in the market (old and new) at the same time and educate the Iraqis to the new value and its buying power. Now at one point there was a multiplier in place for all out of country investors that varied from country to country as far as the rate goes. I don't know if there will be a multiplier used on a forced RV. So if we had to eventually come back to complete the gov't reforms that were agreed upon the most we could see would be an RI, plus inflation. It's hard to say with all that has occurred whether or not we see an RV or a float or even a little of both.

[rockfl9]

The dollars for oil sales are the property of the MOF NOT the CBI..There is a difference. When the CBI auctions them it is a service to the MOF.. Those dollars buy dinar that are already in circulation and already accounted for in the M2 number...The MOF will then use them to pay salaries and pensions and bills! By the end of the month it is all gone! The dinar just keep turning over..

[tigerstripes]

If you read the Financial Statements of the CBI, Foreign Currencies, when deposited in any Iraq Bank, are immediately converted to Dinar. Therefore, deposits for Oil Sales are included in M2.

I'm not sure about that.

The Annual report states:

Monetary Supply (M1): represents money outside banks plus current deposits in national and foreign currency for economic sectors (except for central government sector) with commercial banks.

Not sure if that helps.

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[doctor robbins]

IMO... this has always been the plan...To RV out of country and let the value of the IQD gradually rise in country. If not, people would become millionaires over night...The USD has rv'd several times and I have never woke up with more money than the day before....GO RV!!!~~~

Only pegged currencies can RV. The USD is a free floating currency, not a pegged currency.

[Elixirbaby]

TY Yota

[SocalDinar]

Iraqs foreign reserves have been purposefully been capped IMO

This was part of SHABS plan. How? Same as China does by buying

Other countries Gov bonds. China does this because if their reserves increase

So will the value of their currency. That would hurt their economy.

When we fill our Walmart shelves with Chinese products we pay China in USD

SHABS did this to rebuild Iraq's infrastructure for cheap

Brilliant!

[truthful1]

Iraqs foreign reserves have been purposefully been capped IMO

This was part of SHABS plan. How? Same as China does by buying

Other countries Gov bonds. China does this because if their reserves increase

So will the value of their currency. That would hurt their economy.

When we fill our Walmart shelves with Chinese products we pay China in USD

SHABS did this to rebuild Iraq's infrastructure for cheap

Brilliant!

I disagree they are or would cap the foreign reserves. the m2 would have to be capped as well, and there is a trend upward in m2 through the years. Not to mention, the 8-13 dinar gained by the cbi when buying and selling dollars. they are increasing the foreign reserves along side the m2. Which is what would be expected.

[SocalDinar]

I disagree they are or would cap the foreign reserves. the m2 would have to be capped as well, and there is a trend upward in m2 through the years. Not to mention, the 8-13 dinar gained by the cbi when buying and selling dollars. they are increasing the foreign reserves along side the m2. Which is what would be expected.

You could be right truthful one.

I'm just an electricial contractor and my opinion in World economics is really not worth much. Thats the problem here is we hear opinions from many but have no idea what they do for a living and their educational background. A simple 4 year degree in economics is just not enough knowledge. Kind of like my trade. I get men fresh out of trade school. Book smart but they don't know how to use a toggle bolt.

I have friend that is a retired Citi bank employee. She was an executive in their Foriegn exchange dept. Point blank she said that one can not truly believe any numbers given out by any Central Bank.

To easy for them to manipulate their currency and numbers.

We know this is what China does. Why do you think they keep buying our Bonds from the Fed with help from the UST? Do you think it's for investment purposes.

Would you loan the US money when year after year we run Trillion dollar deficits. There is no way that this money PLUS INTERST can ever be repaid. This is why our fiat currency is doomed to failure.

Look at the Fed. They loan out more gold than they physically have. many think they own the same piece of gold when in fact it does not exist. Scary stuff. If you don't hold it you don't own it!

Edited December 17, 2012 by SocalDinar

[SocalDinar]

Here is what Im talking about regarding gold prices and how its manipulated.

IMF study in 1999 found 80 central banks lending 15% of official gold reserves

Submitted by cpowell on Sun, 2012-12-09 17:24. Section: Documentation

12:31p Sunday, December 9, 2012

A study by the International Monetary Fund in 1999, obtained last week by GATA's researcher R.M., reported that more than 80 central banks had lent 15 percent of official gold reserves into the market and that central banks then lending gold included the German Bundesbank, the Swiss National Bank, the Bank of England, the Reserve Bank of Australia, and the central banks of Austria, Portugal, and Venezuela.

The IMF study, commissioned as the agency pondered selling some of its own gold, emphasized the lack of transparency in the gold market and the secrecy demanded by central banks.

"Information on the gold market is patchy," the study said. "Transactions are characterized by a high degree of secrecy. Apart from the relatively small amount of open trading on exchanges, gold trades are private, over-the-counter transactions, and little is reported on these transactions. ... Official information on gold lending is virtually nonexistent."

As a result, the IMF study said, its information was "largely drawn from private sources."

Predictably enough, the study said "the increased mobilization of central bank reserves through gold lending operations has had a depressing influence on the spot price for gold since on-lent gold is usually associated with sales of gold in the spot market."

Indeed, just a year earlier, urging Congress not to regulate financial derivatives, Federal Reserve Chairman Alan Greenspan had disclosed that controlling the gold price was the primary objective of gold lending: "Central banks stand ready to lease gold in increasing quantities should the price rise."

(See: http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm.)

Further, the IMF study said, gold lending had caused central banks to become active in the gold derivatives market with bullion banks and gold producers, "selling through forwards and options."

In turn, "bullion banks have made efforts to secure and consolidate long-term relationships with central banks."

"The number of countries with official-sector involvement in the gold lending market is now estimated to have reached over 80. The outstanding amount of gold lending provided by the official sector by end-1998 amounted to nearly 15 percent of official gold holdings of all central banks. The share of industrial countries in the stock of total official gold lending rose from 33 percent at end-1995 to 46 percent by end-1998 as some industrial-country central banks increased their lending, while new lenders, such as the Bundesbank and the Swiss National Bank, entered the market."

Thirteen years later it seems likely that the proportion of central bank gold reserves that has been lent into the market is substantially higher, as Western central banks continue to demand secrecy for their gold lending even amid growing concerns about the security of their gold reserves vaulted abroad.

With so many central banks lending so much gold in secret to financial institutions whose primary talent lately has been shown to be rigging markets, who but the usual agents of disinformation still can deny that the gold market is manipulated precisely to prevent the world from enjoying free markets generally?

http://www.gata.org/node/12009

[gregp]

This would never happen in a million years. Can you imagine what would happen in Iraq when they find out that American currency speculators made millions and Iraqis got table scraps from the HCL? The entire country would implode and the dinar would become worthless. Even if they DOUBLED their oil output next year and put EVERY CENT into the HCL to distribute (which we all know they would never do), it'd only be around 4,000 USD per person. In reality the most any Iraqi is likely to get from the HCL any time in the next decade (assuming it ever gets passed) is a few hundred bucks a year or so. You think Iraqis are going to be happy about that when "foreign devils" made millions?

Not to mention that getting paid for oil in dinar rather than USD and other foreign currencies would destroy their economy. They wouldn't have USD to pay for imports, plus the supply of in country dinar would constantly be increasing which would cause massive inflation.

I agree. I would not be standing behind that theory. It would not be good. .