What is the Hold Up?

[Belecosity]

Just wanted to get others opinion on why there has been a hold up on the Dinar having an RV/RI.

 

I understand the country still has instability, but is that really the main factor for this holdup? I feel if that is the case, it won't happen because it will never be perfect. If the U.S.A was going through this we would never get an RV/RI because of corruption, spending etc. etc. . So could that really be the reason?

 

Others suggest it is a global event that everyone has there hands in, and therefore that is the holdup. Some say the U.S. is controlling this, others IMF, China ETC. Well if everyone is going to profit from this why would they have waited so long? Are there people that are going to be hurt by this? I know China wants to become the world reserve and the U.S. is holding on for dear life... so could it be the hold up over who takes control over the money supply in the world? If the Dinar does become a force to be reckoned with, and a reserve currency, what happens to our petro dollar?

I know this investment is real, and I know it will pay off, I have very little Idea however, when it will and why it will be done at a specific point.

 

I know many people have been in this investment for a long time. (I've only been in this 3 years) what conclusions have people come up with for the reason for this? I know it is not of great importance because all people want is for this thing to happen. I agree, but I'm so bored about reading the same news every day, and the same rates and dates over and over. I fell like singing the lambchops song ever time I reasearch this

 

please no loppers, I could really care less what you have to say, and please don't tell me it's because of the budget holdup,,, LOL. If the rate is in the budget... great... but nobody will ever be able to confirm that unless it actually happens.

 

 

[gatoraces]

maybe there just isn't gonna be one?  or , maybe whatever happens will happen when it is meant to?

[Goldiegirl]

How about the threat of Civil War, Iranian troops in Iraq and that Maliki the dictator won't follow what's laid out in the Constituion....at least thats a start.

[cardealing4life]

How about the threat of Civil War, Iranian troops in Iraq and that Maliki the dictator won't follow what's laid out in the Constituion....at least thats a start.

 

AGREED!!!!!!!!!!!!!!!!!

[SgtFuryUSCZ]

***///

 

How about the power-mongers of the world's Central Banks......? (who also control the U.N. BTW....)

 

repeat after us:  ill-uminati... bilderburg....rothschilds...bushes...elizabeth of england... catholic vatican...

 

World waking up, they are losing ground - forces them into creating another unstable region for the purpose of another HUGE war.

That's how they make their money.

They are creating that atmosphere as we speak in the M.E.

 

wash, rinse, repeat.

[Belecosity]

Yes I agree with you on the central bank control no doubt. so you think the dinar will not improve until they start another war? and who has the ability to make them lose power? I agree with your assessment.... but who would stand against them? certianly not our government....

***///

 

How about the power-mongers of the world's Central Banks......? (who also control the U.N. BTW....)

 

repeat after us:  ill-uminati... bilderburg....rothschilds...bushes...elizabeth of england... catholic vatican...

 

World waking up, they are losing ground - forces them into creating another unstable region for the purpose of another HUGE war.

That's how they make their money.

They are creating that atmosphere as we speak in the M.E.

 

wash, rinse, repeat.

How about the threat of Civil War, Iranian troops in Iraq and that Maliki the dictator won't follow what's laid out in the Constituion....at least thats a start.

Hey Golden, I agree with you, but how has Maliki done anything our government hasn't done? if there is then I will admit I'm wrong, but there is nothing iv'e read that shows Maliki any worse than your ordinary D.C. scum. What, he's funneled money to Iran? pffff we funnel trillions a year in the U.S. to whomever and for whatever we please.

[dog53]

Hmmm I have been asking myself  that same question for 8 years .

[sandstorm]

The holdup.....from what the cbi has told us.......is thepolitical instability and the cooperation from the goi? Well that the holdup on the monetary policy. whats the hold up on the dinar rving? The internal high demand for the dollar and the weakening market rate....are wrecking havoc for the cbi to maintain stability below 1200.

[Goldiegirl]

Hey Golden, I agree with you, but how has Maliki done anything our government hasn't done? if there is then I will admit I'm wrong, but there is nothing iv'e read that shows Maliki any worse than your ordinary D.C. scum. What, he's funneled money to Iran? pffff we funnel trillions a year in the U.S. to whomever and for whatever we please.

 You need to read my posts on the other thread as to what Maliki is and what the US Gov't has done or is doing. 

 

Chess anyone?  I'm actually quite good at it.

[jeepguy]

 You need to read my posts on the other thread as to what Maliki is and what the US Gov't has done or is doing. 

 

Chess anyone?  I'm actually quite good at it.  <------------------ HOW CAN ANYONE NOT ACCEPT AN OFFER TO PLAY WITH CHEST 

I`M SORRY THAT WAS RUDE OF ME ,,, sorry goldie ,, 

[Goldiegirl]

I`M SORRY THAT WAS RUDE OF ME ,,, sorry goldie ,, 

Had me worried, thought I had another spelling mistake   No worries...

[Belecosity]

 You need to read my posts on the other thread as to what Maliki is and what the US Gov't has done or is doing. 

 

Chess anyone?  I'm actually quite good at it.

I will look for that. No doubt he probable has alot to do with this... I just wonder if hes the only thing keeping this from happening.

[Snowpickle]

After 7 years, the dust has settled on my stack. Guess I figure if it happens, awesome.  If it doesn't I have enough to wallpaper the downstairs bathroom. That would be a conversation starter. ha ha

[gainesm]

Just wanted to get others opinion on why there has been a hold up on the Dinar having an RV/RI.

 

I understand the country still has instability, but is that really the main factor for this holdup? I feel if that is the case, it won't happen because it will never be perfect. If the U.S.A was going through this we would never get an RV/RI because of corruption, spending etc. etc. . So could that really be the reason?

 

Others suggest it is a global event that everyone has there hands in, and therefore that is the holdup. Some say the U.S. is controlling this, others IMF, China ETC. Well if everyone is going to profit from this why would they have waited so long? Are there people that are going to be hurt by this? I know China wants to become the world reserve and the U.S. is holding on for dear life... so could it be the hold up over who takes control over the money supply in the world? If the Dinar does become a force to be reckoned with, and a reserve currency, what happens to our petro dollar?

I know this investment is real, and I know it will pay off, I have very little Idea however, when it will and why it will be done at a specific point.

 

I know many people have been in this investment for a long time. (I've only been in this 3 years) what conclusions have people come up with for the reason for this? I know it is not of great importance because all people want is for this thing to happen. I agree, but I'm so bored about reading the same news every day, and the same rates and dates over and over. I fell like singing the lambchops song ever time I reasearch this

 

please no loppers, I could really care less what you have to say, and please don't tell me it's because of the budget holdup,,, LOL. If the rate is in the budget... great... but nobody will ever be able to confirm that unless it actually happens.

 

Assuming there will ever be a RV (and, obviously, we're all hoping there will be one), I cannot imagine it could take place without long-term financial and monetary policies that will allow the RV to occur in a structured way.  These policies are being developed, one need only read reports from the Iraq Ministry of Planning or the IMF (International Monetary Fund) to see that there have been guidelines and steps for Iraq to follow - and they are indeed making significant progress.  There are still some areas they have not yet focused upon (e.g. non-oil arenas, non-governmental job market, etc.), and it will likely be quite some time before those become priority.  It does not help that the political instability persists in the country - as that will always trump economic progress.

 

In the end, I think it is not possible to have a sudden RV of significant proportion without having first positively being able to complete and exceed guidelines/expectations that will put them in the best possible position.  Iraq has done so on some fronts, but they still have a long way to go.  I do believe they will get there, and when they do I think we will see that the IQD has been appreciating in consort with their progress.  Whether we will ever get that magic overnight massive bump is anyone's guess, but I can say that I am much more likely to believe it will be a small RV (maybe .001 to 1 (IQD to USD) initially followed by a long slow upward slope of appreciation.  If they plan on managing their currency doing anything else would just invite chaos.

 

I don't think it's appropriate to compare what happened in Kuwait during the first Gulf War, as an example, of overnight value appreciation - considering how short a time their instability lasted, and how quickly they recovered to an already functioning government, financial, and monetary policy.  It will take Iraq a very long time to get to where Kuwait was in those days.  I do not think that means a RV cannot happen until then, I just can't logically believe that it would benefit them in the long-term to do so until that time. 

 

Please don't think I'm saying they can't or won't RV prior to such things happening...I am saying no such thing.  I'm just explaining why I think they have not done so yet - and why I think it will still be quite some time before they do.  As for whether this or that other country is preventing the RV... I think that's pretty much just conspiracy theory - and the fun thing about conspiracy theory is that there's always just enough truth and logic to any given idea that it tends to make the rest of it sound reasonable. 

[gainesm]

Just wanted to get others opinion on why there has been a hold up on the Dinar having an RV/RI.

 

According to the Investopedia website (a great place to learn about finance), there are 4 main reasons for what can cause appreciation or depreciation in a country's currency.  Those reasons listed are:

• Relative product pricing
• Monetary policy
• Inflation rates differences
• Income changes

From what I can gather, where we are with a RV of the IQD in respect to these factors are as follows:

 

Relative product pricing: Cost of living (COL) in Iraq is significantly less than in the US.  A quick comparison on basic goods and services over on the Numbeo website (link is to the Iraq stats).  This is positive for appreciation of the IQD to the USD.

 

Monetary policy: Both the US and Iraq are currently pursuing an easy monetary policy.  I haven't seen an official statement on Iraq's policy, but they don't seem to be making their currency available enough judging by the recent scarcity of the Dinar within Iraq.  This leads me to believe Iraq is pursuing a hard monetary policy - at least for the time being.  This is negative for appreciation of the IQD to the USD.

 

Inflation differences: Right now both the US and Iraq are around 2%, with Iraq a fraction of a percentage higher.  The last couple of years, Iraq's inflation rate was about twice that of the U.S.  This is positive for appreciation of the IQD to the USD.

 

Income changes: The US has seen a marginal increase in salaries in the last few years and that is expected to continue for 2013.  I have not seen anything on the salaries of the Iraqis, but with the level of instability in the country I do not believe any increase/decrease in salaries can be trusted for an indicator.  This is negative for appreciation of the IQD to the USD.

 

As I am neither a financial expert nor an expert in the Iraq situation, I cannot say with confidence that I have understood the data well-enough.  It may very well be that data exists to contradict what I have surmised, but until I come across such information this is pretty much why I think the RV has not yet occurred.