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Whats the hold up?


dinarck
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Really? And who told you that? Frank or Jokie?

Maybe you have missed the methodical assassinations of Iraqi leaders going on over there. But don't worry.....Kraperoni says everything is ok and we are still on schedule for the "RV". Haha

If I told ya who told me lol your little group would have a huge fight lol As far as assassinations thats just a power struggle that will benefit DV members in the end not worried about it it's been going on for thousands of years!~ Yours Truely VIZIO!

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Common Sense Really Greed always has it's advantages . They fight we make money . Remember what they use to have before the War. 10 year plan is now up ! cha ching :tiphat:/>/

What they used to have before the 2003/2004 war? An exchange rate of 3000 IQD per Dollar. Is that what you are looking forward to?
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What they used to have before the 2003/2004 war? An exchange rate of 3000 IQD per Dollar. Is that what you are looking forward to?

Wow what you also just stated was all Wrong and you need to do your home work before Assumption's come out laugh.gif the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.[2] After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing was no longer available!! Cha Ching tip_hat.gif There money went to Pot over 23 years ago and it's coming back with a vengence biggrin.gif

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Wow what you also just stated was all Wrong and you need to do your home work before Assumption's come out laugh.gif the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.[2] After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing was no longer available!! Cha Ching tip_hat.gif There money went to Pot over 24 years ago and it's coming back with a vengence biggrin.gif

Really? Here is what I said

What they used to have before the 2003/2004 war? An exchange rate of 3000 IQD per Dollar. Is that what you are looking forward to?

and here is what the very next two sentence in your link says (bold added)

A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to sanctions placed on Iraq by the United States and the international community and excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.
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Darin....reducing M2 and raising the rate 100s or 1000s of percent does not exist in economics. That whole notion was contrived on dinar forums. Look anywhere throughout history and you will see developing nations (almost always pegged) increase M2 while either keeping a stable value or losing value. That's just they way it works. We can argue till our fingers bleed from typing but please just show me when the economic practices you are describing have ever been implemented. Iraq will not be the first because it wouldn't work. For them to reduce their M2 all that means is they basically by back their own currency for the current rate and then RV it to a higher rate. Pretty good deal I would say. So good you will never see it happen.

No offense, but sometimes I wonder if you every truly read what I post.

I never said they would reduce their M2 and raise the rate at 100s or 1000s of percent... In any reference I even tempted the idea was simply backed by the idea of a re-denomination and that speculators would cash out.

Its a balancing equation..... M2 goes down, amount in circulation is reduced, and thus the foreign reserves are reduced.

Also known as, Less liabilities, less supply (inventory), and less assets to back it.

So, lets say a "large" amount of people outside of Iraq hold dinar in hopes of the value is appreciating or will one day appreciate. A bounty or expiration is called on the notes that they hold, forces the speculators or holders to seek out exchange of their notes. Since most are on the idea of IQD to make them massively rich, when reality does strike in they will simply convert back to USD. The banks that do the exchange for IQD will have to transfer the hard cash to the CBI and seek out USD in return. That USD will come from the Fx Reserves of the CBI. Every exchange will reduce the reserves of the CBI as the USD flows out & the IQD flows in.

It won't have any real major impact on the value of the dinar and how it stands, is because if it is backed by 1170 dinars to the dollar now, even after all those exchanges it will still be able to back 1170 to the dollar afterwards as well. The main factor is simply the reduced reserves that a R/D (lop) will cause. Yes, the money supply is now in manageable numbers, the amount in circulation is less, and being able to add numbers w/o 000s will be easier, but nothing is going to change the fact that the CBI had to spend USD or equivalent of foreign reserves to buy back those old dinars.

So, now that their reserves have taken a sudden hit, it reduces their ability to properly defend against future currency attacks, shows that they are now weaker to pay upcoming bills/debts, and may result in a lowered credit rating.

And the longer any significant action is taken, the worse the end result will be (more speculators are born every day).

The only thing(s) that remain uncertain is how much speculators hold.... What %s of the M2 do they make up for?

Keep in mind this, banks, currency traders, and so forth all hold inventory to meet the demand to fulfill individual speculators as well, so it may not just be speculators holding but also businesses that meet the demand for those looking to exchange. Speculative demand will drop significantly upon a R/D lop that those profiting from selling dinar will also have to eventually close up shop and return their inventory for exchange of other currencies.

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https://www.cia.gov/library/reports/general-reports-1/iraq_wmd_2004/chap2_annxD.html

Foreign Debt

Iraq’s indebtedness has been the result primarily of the war with Iran. Iraq traditionally had been free of foreign debt and had accumulated foreign reserves that reached $35 billion by 1980. These reserves were exhausted in the early stages of the war with Iran. It is estimated that from 1980 to 1989 Iraq’s arms purchases alone totaled $54.7 billion. Following the war, Iraq was faced with the dilemma of paying off short-term debts to western creditors estimated between $35 to 45 billion at high interest rates. However, the Regime resisted western attempts through the International Monetary Fund (IMF) and World Bank to reschedule the debt primarily because Baghdad believed it could negotiate more favorable terms dealing with countries bilaterally.

Iraq’s foreign debt was comprised of western credit provided for military assistance, development finance and export guarantees. This assistance has been estimated at $35 billion in principal. The former Soviet Union and Russia also provided loans to Iraq via the Paris Club during the 1980s and 1990s for the development and production of military programs (Figure 10). Gulf States such as Saudi Arabia, Kuwait and the United Arab Emirates provided an additional $30 to 40 billion in financing to fight Iran (Figure 11). Although the Gulf States considered the financial support provided to Iraq to be a loan, Iraq believed that the Gulf States were required to provide help to Iraq in its fight to prevent the spread of radical Iranian fundamentalism.

In addition to the money borrowed by Iraq during the 1980s, Iraq has had compensation claims made for reparations of damage inflicted during the invasion and occupation of Kuwait during 1990 and 1991. The United Nations Compensation Commission (UNCC) was responsible for processing and collecting such claims as authorized by UNSCR 692. The OFF program provided that 30 percent of Iraq’s oil sales would be used to settle compensation claims authorized by the UNCC. This figure was reduced to 25 percent in December 2000 and was set at 5 percent when oil exports resumed after OIF. As of 7 May 2004, claims totaling $266 billion have been adjudicated and claims worth $48 billion have been awarded by the UNCC. Additional claims worth $83 billion need to be resolved.

Another source of potential financial obligations accrued by Iraq since 1990 were contracts signed with countries such as Russia, UAE, Egypt, China, France, and the Netherlands mainly in the energy and telecommunications sectors. Because of UN Sanctions during the period, the contracts were not executed. It is uncertain if these contracts will be honored in the future.

Iraq’s total foreign debt compared to GDP from 1989 until 2003 was not sustainable (Figure 12). Iraq was borrowing much faster than it was producing for over a decade (see Figure 13).

Balance of Payments/Exchange Rates

The Balance of Payments (BoP) is an account of all transactions between one country and all other countries—transactions that are measured in terms of receipts and payments. From the US perspective, a receipt represents any dollars flowing into the country or any transaction that require the exchange of foreign currency into dollars. A payment represents dollars flowing out of the country or any transaction that requires the conversion of dollars into some other currency. The CBI Department of Research and Statistics provided statistics on Iraq’s Balance of Payments, which are summarized (Figures 14 and 15).

Exchange rates [/b]are important during these transactions because they represent the linkage between one country and its partners in the global economy. Exchange rates affect the relative price of goods being traded (exports and imports), the valuation of assets, and the yield on those assets. The CBI pegged its official rate between $3 to 3.38 per dinar in the 1970s. The last official exchange rate of $3.11 per dinar was set in 1982. During the 1970s the official and market rates generally corresponded and by 1980 the country had $35 billion in foreign exchange reserves. Because of the war with Iran that figure had fallen to $2 billion by 1987. The currency depreciated rapidly in the unofficial market during the Iraq-Iran war and after the first Gulf War the pace of depreciation increased further. During 1997 to 2003, the exchange rate fluctuated between 1500 -2000ID per $1 and was fairly steady at about 1950 ID to $1 in recent years. Although the Regime did not alter the official exchange rate after 1983, it acknowledged the rate differential in 1999 by allowing state run banks to exchange hard currency at the rate of 2000 ID to $1.According to the statistical bulletin published by CBI (Figure 16) the numbers projected by sources in the US are consistent, with numbers reported internally. It is important to note that the validity and reliability of the data provided by CBI has not yet been evaluated.

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Even if speculators had a huge amount compared to M2 it would not matter. I doubt there is more then 1T in the hands of speculators, but no matter how much there is, doing an exchange after an RD is no more a threat to the CBIs reserves as exchanging now. The IQD (or IQN) that come in are exactly matched by the dollars that go out. An RV on the other hand is a huge problem exactly due to not maintaining that balance. The $68B or so USD in the CBIs reserves exactly machines the 75T or so IQD at the current exchange rate. If that rate is increased (even by 2x let alone 1000x) there simply is insufficient reserves to back their money supply.

There is lots of (silly, as I see it) talk about how for speculators the dinars will be held by the Fed (at least for the US), but even if such schemes were true (which I find wildly unlikely) they won't help exchanges from inside Iraq when they want to buy stuff from other countries with their newly RV'd wealth. The CBI would be shown to be insolvent in seconds after such an event. Which is why there never will be such an event.

e

THERE WILL NEVER BE SUCH AN EVENT.....

NEVER.

What about the dinar the CBI holds when it RV's? Won't they have billions themselves from their own holdings? Sonny 1 has corroborated this possibility

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e

THERE WILL NEVER BE SUCH AN EVENT.....

NEVER.

What about the dinar the CBI holds when it RV's? Won't they have billions themselves from their own holdings? Sonny 1 has corroborated this possibility

Just to be clear that "NEVER... was me referring to a huge overnight RV. The CBI is the only entity on the planet that can generate IQD (physical or electronic), and the one (as long as its a pegged currency) that has to back them. So dinars that the CBI hold itself (i.e. not in accounts of member banks) are irrelevant. They are not an asset or a liability. The CBI can burn or print as many IQD as it wants (in its own accounts or vaults etc). Taking money out of one pocket and putting it in another does not change anything. Edited by makecents
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Mr Rich you better take another look and do some homework laugh.gif Everything you just said is all Wrong ! If you don't bother to study Iraq and know whats really going on your Assuming will just well you know laugh.gif and Yes I know who you Really Are !!!

ow

You know I was missing you Mr RICH! Where have you been? You used to be for the RV a year ago or so.

What happened? Are you able to breathe under water now?

Why are you here - to save us all?

Let us believe in the second coming...maybe it will happen.

Just to be clear that "NEVER... was me referring to a huge overnight RV. The CBI is the only entity on the planet that can generate IQD (physical or electronic), and the one (as long as its a pegged currency) that has to back them. So dinars that the CBI hold itself (i.e. not in accounts of member banks) are irrelevant. They are not an asset or a liability. The CBI can burn or print as many IQD as it wants (in its own accounts or vaults etc). Taking money out of one pocket and putting it in another does not change anything.

So that means they cannot buy foreign reserve currencies like the dollar, euro, gold or platinum once their dinar are internationally traded. You're damned right they can. They will drastically increase their own reserves not only in dinar, but other monetary instruments.

And what about the fractional banking scenario? No discussion of that this thread. This 100% backing of every dinar out there is BS....this isn't sharia banking laws.

https://www.cia.gov/library/reports/general-reports-1/iraq_wmd_2004/chap2_annxD.html

"According to the statistical bulletin published by CBI (Figure 16) the numbers projected by sources in the US are consistent, with numbers reported internally. It is important to note that the validity and reliability of the data provided by CBI has not yet been evaluated. "

Now there is an interesting quote...."reliability of CBI data has not been evaluated..." and by coincidence the US numbers are the same....same story, two players in the same dance. They will back each other up - until the currency changes, IMO.

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So that means they cannot buy foreign reserve currencies like the dollar, euro, gold or platinum once their dinar are internationally traded.

They can buy whatever they want, as long as the seller accepts their payment. No one (commercially) will want to accept dinars until there is something you can buy in dinars. Curretnly there isn't, so there is no foriegn exchange demand for dinars so any dinars accepted by anyone will find their way back to the CBI for exchange into dollars or Euros, so the CBI might as well use them to start with.

They will drastically increase their own reserves not only in dinar, but other monetary instruments.

Dinars are not a reserve (i.e. an asset) to the CBI. They can print all the dinars they want.

And what about the fractional banking scenario? No discussion of that this thread. This 100% backing of every dinar out there is BS....this isn't sharia banking laws.

Fractional banking is about the loan to asset ratio for retail banks and has nothing to do with currency.

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There is a fundamental misunderstanding about how MSB's work. An MSB buys dinar and they buy dollars. They exchange your dollars for dinar which you put in your sock drawer. The next person that comes from Iraq with some dinar (or the guy who has given up on an RV) exchanges those to the MSB for dollars. The MSB makes money on a spread. And the circle continues. Iraq has NO obligation to buy those dinar back from the MSB. An MSB is a business that bought a product; i.e., dinar. MSB's can't (legally) sell dinar for investment purposes.

Were there to be a huge, overnight RV, and you could actually exchange your dinar with them, the guy running the MSB at the hotel would have to be sitting on millions of dollars in cash. To buy back dinar that nobody would want to buy from him. Because there is no more possibility of a large, overnight RV.

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geez money is just a coupon .. aceppetd by iraq government .. its just a promisary note ..iraqs currency is oil as well as other goods and services .. its used to trade for other goods and services .. people found it unecessary to carry around their goods while trading. they came up with money .. the standard for a currencys value is based on one united states dollar ..its set by the imf .. international monetary fund ......

ive been over this before and its hard to explain .. so ill do it in a story form so its easy to understand ..

one guy sold cigerettes for a living out of a truck .. he sold them for 1 pack for one dollar .. . one day a guy had no money but he provided a service and was willing to trade his service for 2 packs of cigerettes . .. they agreed .. the guy washed trucks .. he would wash this guys truck once a week for 2 packs of cigerettes ... so he washed his truck tand recieved his 2 pack payment .. the only problem was . the waher guy didnt smoke .. but his butcher did smoke .. so he would trade those ciggerettes for a pound of beef ,, well as time went on .. months down the road ,, one day the guy finished washing his truck .. and asked for a piece of paper good for 2 packs of ciggerettes that his butcher could use to pick up his ciggerettes . so the ciggerette salesman wrote on a piece of paper .. good for 2 packs of cigerettes and signed his name on it ,,. now that is a coupon good for 2 packs of ciggerettes .. . that way the truck washer didnt have to carry around 2 packs of ciggerettes every week .

this is the same thing iraq is doing .. they dont want to carry around a barrel of crude oil to buy things .. so they will have a coupon based on the value of their oil which all goes back to the value of one curency unit ,, which is one us dollar .. all iraq has to do is figure out how much oil they have to trade and devide that up at 90 dollars a barrel(90 currency units per barel) and set up their new currency going fourth . the past means nothing , there other dinar means nothing ,, iraq is going to reset their currency value which is nothing but a coupon . good for exchange ..

all this how much they have now and how much they had .. and how much it used to be worth under the old government and banking system .. is over

iraq is on a new path with a new government and a new curency . it will be valid for exchange ..it will be exceptable at the forex eventually .. we all know it isnt right now .. we all know they are redenominating and reseting their curency .. ..

all the other examples of what a government is doing .. from one govt to another govt thats the same govt ..like turkey .. is out .. they already had their currency set up .. this new currency is a start up currency , all new .. those bremmers are nothing but a savings account set up by coalition forces at the beginning ..he swiss dinars were not even legal tender that were exchanged for these bremmers .. saddams dinars were worthless ... these new bremmers are merely set up to monitor and save money for a set time frame .. in the end they will be converted back to dolars and then re converted into the new iraqi dinar .. i persomnally believe they will use a new fiat system of digital banking to finance a high value dinar ..we will get an exchange rate to turn in our bremmers ., if it is one to one .. iraq loses nothing but oil out of the ground ., future oil assets whether it be 10% of the oils value ..or 10 dolars per barel to pay for these dinars till the debt is paid .. i dont know exactly what they wil do , but it will be financed ....the value that they pay me is the value that goes into the cbi ,,they lose noything .. they wont buy my dinars then destroy them they will be converted to the new dinar in value then destroyed ...

any way a fiat currency is not a piece of gold ..its just a piece of paper ,, a coupon ,, redeemable at the cbi , whether through the forex or bank or where ever ,

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The key point you lave out Dontlop is that there are 75T of these coupons (IQD) out in the wild. And whatever rate they have for them must be available for all of them. Which is why that rate is defined by just M2/reserves. The indeed may someday redenominate, but that has no bearing on the value of the IQD.

Edited by makecents
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There is a fundamental misunderstanding about how MSB's work. An MSB buys dinar and they buy dollars. They exchange your dollars for dinar which you put in your sock drawer. The next person that comes from Iraq with some dinar (or the guy who has given up on an RV) exchanges those to the MSB for dollars. The MSB makes money on a spread. And the circle continues. Iraq has NO obligation to buy those dinar back from the MSB. An MSB is a business that bought a product; i.e., dinar. MSB's can't (legally) sell dinar for investment purposes.

Were there to be a huge, overnight RV, and you could actually exchange your dinar with them, the guy running the MSB at the hotel would have to be sitting on millions of dollars in cash. To buy back dinar that nobody would want to buy from him. Because there is no more possibility of a large, overnight RV.

Yes, on a normal given day they're profiting from the spread. But, no questions about it, the heightened demand for a currency has likely never been this high for an exotic currency. Therefore, money exchangers need to hold higher amounts on hand to fulfill the demand of the speculative consumer.

Do you think that those money changers (i.e., DinarTrade, DinarBanker, and other exchange services) are going to hold onto large amounts of dinar post re-denomination? No... They're going to exchange them back themselves and may not even consider re-ordering new denominations as the demand will have plummeted.

Each dealer will likely have their own large amounts of hard cash to exchange as all their customers who have purchased through them may use them to exchange back for cash. I think a lot of speculators may not necessarily sell back, as they may just stop following closely and leave the cash in a shoe box in a closet or sell to another speculator.

I find it funny that when it comes to arguing a R/V, some people inflate the idea of the amount held by speculators, but when you view the idea of a R/D people deflate the amount held by speculators. Its slightly comical to a certain extent.

One thing to think about & or consider is simply that if 72T is what the M2 #s represent, a nation like Iraq is poverty stricken as it is (surviving off of food cards, and USD), where is all that 72T? It'd be silly to think that only a very small % (a measely small %) is held by speculators. If that is true, than with that argument than a R/V is more possible than some think.

You can't slant your views back and forth to argue your negative outcome.

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Darin, you really think Iraq is going to exchange the Dinar back from MSB's for trillions of dollars? Seriously? Where would they get the trillions? Where would the MSB's get the trillions to start with?

To believe in a sudden, big, overnight RV requires a leap of faith above logic.

We are going to make money on our speculation when (and, of course, if) Iraq stabilizes and prospers. A sudden, huge, RV only benefits us, the speculators. It puts Iraq in debt for the next 150 years.

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No offense, but sometimes I wonder if you every truly read what I post.

I never said they would reduce their M2 and raise the rate at 100s or 1000s of percent... In any reference I even tempted the idea was simply backed by the idea of a re-denomination and that speculators would cash out.

Its a balancing equation..... M2 goes down, amount in circulation is reduced, and thus the foreign reserves are reduced.

Also known as, Less liabilities, less supply (inventory), and less assets to back it.

So, lets say a "large" amount of people outside of Iraq hold dinar in hopes of the value is appreciating or will one day appreciate. A bounty or expiration is called on the notes that they hold, forces the speculators or holders to seek out exchange of their notes. Since most are on the idea of IQD to make them massively rich, when reality does strike in they will simply convert back to USD. The banks that do the exchange for IQD will have to transfer the hard cash to the CBI and seek out USD in return. That USD will come from the Fx Reserves of the CBI. Every exchange will reduce the reserves of the CBI as the USD flows out & the IQD flows in.

It won't have any real major impact on the value of the dinar and how it stands, is because if it is backed by 1170 dinars to the dollar now, even after all those exchanges it will still be able to back 1170 to the dollar afterwards as well. The main factor is simply the reduced reserves that a R/D (lop) will cause. Yes, the money supply is now in manageable numbers, the amount in circulation is less, and being able to add numbers w/o 000s will be easier, but nothing is going to change the fact that the CBI had to spend USD or equivalent of foreign reserves to buy back those old dinars.

So, now that their reserves have taken a sudden hit, it reduces their ability to properly defend against future currency attacks, shows that they are now weaker to pay upcoming bills/debts, and may result in a lowered credit rating.

And the longer any significant action is taken, the worse the end result will be (more speculators are born every day).

The only thing(s) that remain uncertain is how much speculators hold.... What %s of the M2 do they make up for?

Keep in mind this, banks, currency traders, and so forth all hold inventory to meet the demand to fulfill individual speculators as well, so it may not just be speculators holding but also businesses that meet the demand for those looking to exchange. Speculative demand will drop significantly upon a R/D lop that those profiting from selling dinar will also have to eventually close up shop and return their inventory for exchange of other currencies.

Sorry Darin if I miss understood when you said "The problem is right in front of everyone's eyes and simply just needs to be addressed. Reduce the M2, strengthen the value, and raise the rate." Sure you didnt say by 100s or 1000s of percent but I guess I just assumed that since that would be the only benefit to speculators.

Look....I agree with what you are saying. If they RD then their reserves will take a hit. What other choice do they have? RV? There is no such thing. The only other choice is to go another 10 years with a hyperinflated currency or 20 years or forever.

I am sure the CBI is fully aware that they will have to give back a portion of their foriegn reserves post RD. We have seen articles about the reserves growing and even gold being added to the mix. Of course RVers spout off imminent RV without having a clue what they are saying doesnt even exist. Its not like they are really even losing anything. Like you said.....reserves given back dinar destroyed equals stable rate of the newly RDed dinar. Who is to say that the recent gold discoveries themselves wouldnt cover the spread?

Here is what it all comes down to. How much does Iraq want to have a currency without a bunch of zeros on it that are not neccessary? If they want it bad enough then they will RD when THEY CHOOSE. If not then they will countinue to operate with a hyperinflated currency. There is nothing else. History proves it. Economics proves it. Iraq is proving it by telling us they are going to RD when they have the stability to do so.

The only place in the universe that giant RVs exist is on dinar forums thanks to marketing scam artist and con men trained in suckering people out of their money.

Sorry to keep bringing it up but the inflation issue is relevant. I know you feel like the Iraqi market can survive the shock of a giant leap but I still fail to see how. If it could then what are they waiting for? Dont you think they would have done it years ago if it is such a wealth creater and so great for the population? Every economist on earth will tell you that fluculations of that magnitude only exist in the negative direction. There is no going back forward with that amount momentum.

Time and time and time again we have heard Shabs and other economist say that their job is STABILITY of the Iraqi Dinar. I will bet you all of my dinar that they read DV and other dinar sites and roll around on the floor laughing at the stupidity. They know full good and well that they cannot just come out onbe day and say......OK.......now the dinar is worth 100% or 1000% and of course not the 100,000% to 300,000% the Okie and Kraperoni zombies believe. They can however adjust the rate accordingly due to economic situaltions within their own country. We have seen them do their jobs. It went from 1170 to 1166. That is a true RV. No mythical, magical, RVs that "declare" the dinar to have value.

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The key point you lave out Dontlop is that there are 75T of these coupons (IQD) out in the wild. And whatever rate they have for them must be available for all of them. Which is why that rate is defined by just M2/reserves. The indeed may someday redenominate, but that has no bearing on the value of the IQD.

Thankyou.

He seems to not have a grasp on the hyperinflation issue.

If they were to do like he says and create a "New" currency backed by oil it wouldn't matter to us anyway because they would exchange the "Old" currency that we hold at a 1000 to 1 ratio.

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Sorry Darin if I miss understood when you said "The problem is right in front of everyone's eyes and simply just needs to be addressed. Reduce the M2, strengthen the value, and raise the rate." Sure you didnt say by 100s or 1000s of percent but I guess I just assumed that since that would be the only benefit to speculators.

Look....I agree with what you are saying. If they RD then their reserves will take a hit. What other choice do they have? RV? There is no such thing. The only other choice is to go another 10 years with a hyperinflated currency or 20 years or forever.

I am sure the CBI is fully aware that they will have to give back a portion of their foriegn reserves post RD. We have seen articles about the reserves growing and even gold being added to the mix. Of course RVers spout off imminent RV without having a clue what they are saying doesnt even exist. Its not like they are really even losing anything. Like you said.....reserves given back dinar destroyed equals stable rate of the newly RDed dinar. Who is to say that the recent gold discoveries themselves wouldnt cover the spread?

Here is what it all comes down to. How much does Iraq want to have a currency without a bunch of zeros on it that are not neccessary? If they want it bad enough then they will RD when THEY CHOOSE. If not then they will countinue to operate with a hyperinflated currency. There is nothing else. History proves it. Economics proves it. Iraq is proving it by telling us they are going to RD when they have the stability to do so.

The only place in the universe that giant RVs exist is on dinar forums thanks to marketing scam artist and con men trained in suckering people out of their money.

Sorry to keep bringing it up but the inflation issue is relevant. I know you feel like the Iraqi market can survive the shock of a giant leap but I still fail to see how. If it could then what are they waiting for? Dont you think they would have done it years ago if it is such a wealth creater and so great for the population? Every economist on earth will tell you that fluculations of that magnitude only exist in the negative direction. There is no going back forward with that amount momentum.

Time and time and time again we have heard Shabs and other economist say that their job is STABILITY of the Iraqi Dinar. I will bet you all of my dinar that they read DV and other dinar sites and roll around on the floor laughing at the stupidity. They know full good and well that they cannot just come out onbe day and say......OK.......now the dinar is worth 100% or 1000% and of course not the 100,000% to 300,000% the Okie and Kraperoni zombies believe. They can however adjust the rate accordingly due to economic situaltions within their own country. We have seen them do their jobs. It went from 1170 to 1166. That is a true RV. No mythical, magical, RVs that "declare" the dinar to have value.

Seems we are now entering the same page with the idea of thinking...

I still think a significantly reduced reserves is a big concern for the CBI as large reserves are necessary for protection.

I think they should develop a long-term plan to reduce what is in circulation over time, while slowly & consistently raising the value.

In the end, it would be that everyone wins.. Those w/o patience cash out while those with patience hold for years.. The returns will never be anything substantial, but a great ROI for over a long period.

I.e., maybe we make 5 times our money over 10 years.. That isn't too far fetched.

Heck some people have already made double their money in shorter amounts of time IQD related.

Darin, you really think Iraq is going to exchange the Dinar back from MSB's for trillions of dollars? Seriously? Where would they get the trillions? Where would the MSB's get the trillions to start with?

To believe in a sudden, big, overnight RV requires a leap of faith above logic.

We are going to make money on our speculation when (and, of course, if) Iraq stabilizes and prospers. A sudden, huge, RV only benefits us, the speculators. It puts Iraq in debt for the next 150 years.

No, not for trillions of dollars.. For billions of dollars to acquire back their dinars they let circulate out into public.

If you follow what I have been posting, it is not in reference to some overnight huge r/v...

I suggest you go back and re-read what I've been arguing.

Your jumping to conclusions

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Well, they also have the option of declaring any dinar outside of Iraq as worthless, stating that it can only be exchanged in Iraq, or simply severely limiting the amount of dinar that can be exchanged outside of Iraq. Your scenario of a gradual increase in value over time after removing dinar (however they do it) seems to me the most likely, though.

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