Just how will they cover the amount when RV takes place..

[SonnyB]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

Edited June 28, 2013 by SonnyB

[robo5288]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

Actually a great question; also, if they plan to RV in the next few days, then why are they still selling it? Doesn't make sense.

[sandfly]

SHOOT I HOP THEY RV 1-1

[waterman13]

SonnyB,

Do you understand the current financial system the world is under? If you don't suggest reading a book: The Creature from Jekyll Island.

The "money" is not really money, it is a fiat currency,  not backed by anything. Basically in a sense, it is a figment of someone's imagination, it is created out of thin air, (nothingness - darkness - the absence of light). They (the World Bank, IMF, Federal Reserve) can do what they want with it.

Another good study would be: fractional lending.

 

WM13

[dontlop]

i dont think it will be in cash .. most likely electronic ..

 

ever see how a bank creates money ?.. they just type it into their computer out of nowhere .. based on a borrowers signiture to repay that amount .. the banks  collect the interest rates  for their time and efforts of maintaining those accounts on a monthly basis ..

 

try watching money as debt on utube

the us spends around 600 billion dollars a year on oil .. i dont see them having a problem  converting those dinars into petro dollars ,,,, everyone else in the world has no problem converting their currency into petro dollars .

in return iraq gets its reserves filled up with petro dollars ..or you can buy goods and services in iraq with those dinars  unless they are excepted globally then you can buy anywhere ..online  to buy gold or silver .. or diamonds or cars .. bull dozers .. what ever flips your boat ..

 

if iraqis can use them internationally online .. so can we ..and they have already started that process with iraqis buying on line

Edited June 28, 2013 by dontlop

[SonnyB]

i dont think it will be in cash .. most likely electronic ..

 

ever see how a bank creates money ?.. they just type it into their computer out of nowhere .. based on a borrowers signiture to repay that amount .. the banks  collect the interest rates  for their time and efforts of maintaining those accounts on a monthly basis ..

 

try watching money as debt on utube

the us spends around 600 billion dollars a year on oil .. i dont see them having a problem  converting those dinars into petro dollars ,,,, everyone else in the world has no problem converting their currency into petro dollars .

in return iraq gets its reserves filled up with petro dollars ..or you can buy goods and services in iraq with those dinars  unless they are excepted globally then you can buy anywhere ..online  to buy gold or silver .. or diamonds or cars .. bull dozers .. what ever flips your boat ..

 

if iraqis can use them internationally online .. so can we ..and they have already started that process with iraqis buying on line

Thanks dontlop for the post....This is what I thought but I am not a big time invester I bought dinars back in 2010 and with the news I started watching to see what is going to happen. Thanks for your answer and help Don't want or have time to read a book have a great day God Bless  

[dontlop]

the us has billions in its reserves right now .. say they wanted to take 30 billion euros out and convert them into petro dollars to fill up its  strategic oil reserve supply .. i dont see any problems .. after all those euros belong to the us or they wouldnt be in the  federal reserves ..

 

so i guess they can do it with any currency .. and after we cash ours in they may be held in those federal reserves .. on that signiture of iraqs that those  are redeemable in iraq for goods and services .. or another dinar .. if iraq gets new currency the treasury would just convert to the new iraqi currency

 

 the imf accepts those dinars ..

Thanks dontlop for the post....This is what I thought but I am not a big time invester I bought dinars back in 2010 and with the news I started watching to see what is going to happen. Thanks for your answer and help Don't want or have time to read a book have a great day God Bless  

sonny what i said is only a possibility .. and a speculation theres no guarentees on that .. but good luck to ya ..we al are hoping

Edited June 28, 2013 by dontlop

[rockfl9]

Dontlop, Only a central bank can "create money"  as you state. And when they do it devalues all their money already in existence.

If there is sufficient "trust in the stability of the issuing bank"  , the  new currency is considered equal in value and demand.

So currencies trade on the quality of the issuing bank.

[dontlop]

Dontlop, Only a central bank can "create money"  as you state. And when they do it devalues all their money already in existence.

If there is sufficient "trust in the stability of the issuing bank"  , the  new currency is considered equal in value and demand.

So currencies trade on the quality of the issuing bank.

After the Federal Reserve increases reserves in the banking system through open-market purchases, banks create new deposits

its called digital banking

[BigJake]

Also keep in mind that not everyone will be converting their IQD to dollars.  Mostly just the speculators like us.

[Sweet baby dinar]

Where's keepm?

[SPRAYERDUDE]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

Iraq has been under a dirty float for the last 10 years. The whole months of May & June the information on the Dinar has been bleek, and if you recall the Iraqi's were lining up at the banks exchanging their Dinars For Dollars. Thay have stated many times the plan is to reduce the money supply from Trillions to Billions: In my opinion we are not done hearing negatives about the Dinar, which will reduce it even further by using the US Dollar as a tool. The auctions are used to stabilize the dirty float " Which causes a False Demand for the Dinar and regulates the ridiculous .0009 rate"

[dontlop]

Also keep in mind that not everyone will be converting their IQD to dollars.  Mostly just the speculators like us.

correct ..petrocurrencys shouldnt be confused with  petro dollars

 

Currencies correlated with oil prices[edit]

 

Petrocurrency is a portmanteau neologism used with three distinct meanings, though often confused:

1. Trading surpluses of oil producing nations, originally called petrodollars
2. Currencies of oil producing nations which tend to rise in value against other currencies when the price of oil rises (and fall when it falls).
3. Currencies used as a unit of account to price oil in the international market.

 

navigation, search

Petrocurrency is a portmanteau neologism used with three distinct meanings, though often confused:

 

 

1. Trading surpluses of oil producing nations, originally called petrodollars
2. Currencies of oil producing nations which tend to rise in value against other currencies when the price of oil rises (and fall when it falls).
3. Currencies used as a unit of account to price oil in the international market

 

 

The pound sterling has sometimes been regarded as a petrocurrency as a result of North Sea oil exports.^[1]

The Dutch guilder was regarded as a petrocurrency due to its large quantities of natural gas and North Sea oil exports. This caused the Dutch Guilder to strengthen severely in the 1970s when the OPEC started their price hikes. As a result of this strengthening industrial manufacturing and services were crowded out and became non-competitive on world markets, a phenomenon that is often referred to in economics literature as Dutch disease.

The Canadian dollar is increasingly viewed as a petrocurrency.^{[citation needed]} As the price of oil rises, oil-related export revenues rise, and thus constitute a larger component of Canadian exports. Thus, the movements of the Canadian dollar have become increasingly correlated with the price of oil. For example, the exchange rate of Canadian dollars for Japanese yen (99% of Japan's oil is imported) is 85% correlated with crude prices.

 

 

thanks dinar don .. good analogy

Edited June 28, 2013 by dontlop

[dontlop]

by the end of this year iraq should be able to produce around 300 billion a year in oil exports .. how much debt can be serviced off that  is in the trillions ..in the end all dinars final redemption is for goods and services in iraq..its not redeemable for dollars or euros in iraq  .. just goods and services in iraq  just like all fiat currencys are ..this all rides on iraqs future exchange regime and macro economics .. the cbi can sell bonds or oil futures to accomadate  what they need to service that debt along with oil exports ..

Edited June 28, 2013 by dontlop

[rockfl9]

Dontlop. The FOMC  by buying up portions of a banks credit base taking it off their books frees up its reserves for additional loans. That keeps the money flowing while assuring the banks continue to meet reserve levels. That way the local banks have the funds to make loans for homes, cars boats etc. That is intended to create jobs in the economy. Its a colateralized loan and the bank is expected to buy them back at face value plus interest.

99.9 % of banking is digital! Checks and credit cards are digital transactions.

[dontlop]

Dontlop. The FOMC  by buying up portions of a banks credit base taking it off their books frees up its reserves for additional loans. That keeps the money flowing while assuring the banks continue to meet reserve levels. That way the local banks have the funds to make loans for homes, cars boats etc. That is intended to create jobs in the economy. Its a colateralized loan and the bank is expected to buy them back at face value plus interest.

99.9 % of banking is digital! Checks and credit cards are digital transactions.

that makes ense .. in the end the money is created out of thin air at the bank by the signiture of the person taking out the loan and as the bank runs out of reserves to back its digital banking limits .. the fed nuys up the debt so the bank can start over with those reserves ..and those loans are collateralized  with the cars ,, homes .. ect // so i take it iraqs  dinars will be collateralized with  oil .. the dinars are just reciepts  like the us dollar..fiat

what gets me is the fed buys up those bank debts  with the exact same thing .. fiat currency or in other words debt reciepts

another thing that gets me is .. if .. and i said if .. iraq collateralizes its dinar with oil .. what does the us collateralize its dollar with ? goods and services right .. like all fiat currencys .. nothing backs them  but goods and services .. so the exchange regime and macro economics determins its value ..and its based on digital banking

the us has 146 bilion in reserves and 10 trillion in their m2 ..

 

iraq has 80 billion in reserves do ya think it could service 5 trillion  dinars worth a dollar ?

or is it because the us economy gdp is 15 trillion  a year ...

 

iraqs is 300 billion a year

Edited June 28, 2013 by dontlop

[rulesforrebels]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

a reason why I personally dont believe an overnight rv could happen, maybe slowly get to the rate some of you guys are calling for over a number of years of steady appreciation but i dont believe something like that is possible overnight.

[rockfl9]

Dontlop . Interesting discussion. But let's get back to how the Iraqis will pay for a potential RV!

Understand  there are 2 classes of dollar denominated debt. Domestic and foreign. Domestic debt is handled by the FED and US banks . It is for the most part colateralized by some property and the creditwortyness of the borrower . Foreign debt in the form  Treasury Bills, notes and bonds are backed by, the creditwortyness of the USG ALONE.  The owner has  the choice , roll over the instrument or take payment in the current value of US$! He can then convert those dollars into some form of property . With some exceptions even a piece of the USA. The key thing is the buyer thinks it is the safest place to store the value. most important the owner will have little trouble finding a buyer at near par. (Fully Liquid). Dont even think about asking for some gold.

 

I am at a loss to describe how Iraq would rv under this scenario? 

[R2D2]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

Typical for a stray bevo! From a sooner.

[SonnyB]

Typical for a stray bevo! From a sooner.

At least a stray BEVO has better things to do, some of us have a life BOOMER ha

[dontlop]

what i want to know is how is the us govt going to pay for all the dollars all over the world ..oh .. with goods and services ..

 

the only way to get your dinars  redeemed by iraq is to buy something in iraq.. goods and services ...or to get your govt to accept them ,, which means the iraqi govt has to say its ok to let their currency be used globally and they will guarentee its exchange rates  for goods and services

[jv1054]

With all the Dinar that has been bought how will this country and the banks cover the RV amount. If it RV's at a dollar and there are billions out there can they cover all this money that will get exchanged. Just wondering some of my buddys have a good amount and I am sure that other folks have as much as they can afford to invest..Hope this is not a really dumb question if so let the bashing start LOL God Bless and GO RV BABY

I do believe that there is not enough currency to cover BUT transactions in this country should be on paper and statements.  No backing just like our dollar  I may be mistaken because i get confused by all this more times than not.

Edited June 29, 2013 by jv1054