SWFG (3-29-13)

[dinarbeleiver]

This is just awesome SWFG Go RV!!!!!!!!!

[in4thelonghaul]

I have to go to Korea tomorrow for work, I hope this RV's and I don't get Nuked to enjoy the years of wait!

[fishing]

Great post SWFG, we can only wait and see, but all the articles are pointing toward this thing ending (soon) hopefully, IMO 

[SWFloridaGuy]

I have to go to Korea tomorrow for work, I hope this RV's and I don't get Nuked to enjoy the years of wait!

 

Haha don't get nuked dude. If Kim Jong-Un tries to take you out, Dennis Rodman will have your back though. 

[OZmosis]

Great post SWFloridaGuy.  Thank you.

[Darin]

Very true but they have recently came out and explained why they can't RD yet...stability and a corrupt gov...go figure. You're right, they don't have to RD. they can keep things as are and improve their economy and GDP. Look at South Korea...they have zeros on their currency and have a very functioning economy and gov and a GDP of 1.12 trillion. Their exchange rate is 1113:1

But they have said over and over that they want to be on par with the usd and that they will RD so we wait and see

Until they do one or the other, this debate will continue.

I would understand the corrupt government argument, but other sectors of stability do not seem to make much sense. Its a neutral event, why complain that its an instability issue? Seems like an excuse to kick the can down the road when the excuse given really shouldn't be of any concern.

 

Now, if it was an unstable rate, that would be a different issue and would maybe make more sense. But the market value will always fluctuate.

[KiaKaha]

To go further into the word "somewhat" is that not every single Saddam dinar was converted into the new IQD.

Whether it was lost, warn out due to usage, destroyed, and or simply forgotten about, it may not have been converted.

Also, some places may have held even larger amounts and missed their deadline. I believe I recall an article about how some businessmen lost out as they were unable to trade.

 

A friend of the friend that got us into this adventure had billions of Saddam dinars but was not able to cash in as they were here in the states. He was hoping to be able to, obviously. He has a nice stockpile of the new IQD as well...

 

KK

[zigmeister]

Iraq has said many things.  We can contemplate or try to figure how they could or could not make this happen, maybe, just maybe the way it goes down will be the guru version after all.

[Darin]

A friend of the friend that got us into this adventure had billions of Saddam dinars but was not able to cash in as they were here in the states. He was hoping to be able to, obviously. He has a nice stockpile of the new IQD as well...

 

KK

Was the word billions used likely exaggerated? I suppose the better question is, how much money did he lose as he was unable to exchange the currency?

[KiaKaha]

Was the word billions used likely exaggerated? I suppose the better question is, how much money did he lose as he was unable to exchange the currency?

 

No clue on either question, Darin... just what I was told. When I first joined dv, I asked if there was any way to exchange them and was told no, they were wall paper. Not that it mattered to me, since I don't have them nor access to them, I was just curious and sad for him to lose his investment.I thought billions sounded like a lot, but didn't question since I knew nothing about Iraq other than it was in the ME! Looking back, if they were "worth" $3.42 at the time, I don't see how he could have legally purchased them, unless it was after they were demonetized or whatever happened to them.

 

KK

 

(Now I wish I hadn't brought it up! Open mouth insert foot!)

[dilladoom]

Guys, the best thing for them to do is raise the rate significantly-maybe one to one and then RD. Not only does it give savvy investors an opportunity to move away from the dinar (if they have the foresight), but it also drowns out any in-country shock to a degree. I think most Iraqi's won't have the sense to take their new purchasing power and transfer it to say, gold. So, when they RD to replace the currency, the Iraqi's will just have to exchange for the new currency. The real kicker is, the CBI will make a killing at that point. The money supply will grow during the raising of the value, then once they RD they beef up reserves, backing the new dinar. The RD while reducing the money supply, will still give them more money at the end. In proportion of course. I would imagine a small window of exchange will be used. Even three months of such a raise would shock the world economy, so they will have to RD at some point for functionality. Iraq will make money off this-without a doubt and hopefully we will too.

Edited March 30, 2013 by dilladoom

[DiveDeepSix]

Thanks for the post buddy, I like your line of thinking!!