Stryker - Expense of Re-Printing the Iraqi Dinar at the Same Value

[gamaray]

Expense of Re-Printing the Iraqi Dinar at the Same Value

 

Does it Make Sense?

 

A Finance Committee member of the Kurdistan Alliance MP, Ahmed Hassan Faidhullah could be right in his statement that describes printing new banknotes as a “waste of time ".  In this short article he continues: "The current currency is  suitable  and there is no need to be replaced.”

 

Let's take a look at both these points of his, is it a waste of time and is the current Iraqi currency suitable but keeping logic as our guide:

 

The CBI is spending millions of dollars to do a face lift on the same old currency, with the same old value, doesn't make sense?

 

The CBI is adding even higher security measures to their currency that is way undervalued compared to international standards, that doesn't make sense!

 

The CBI has continued to hold down the value of the dinar even though the Iraqi GDP is growing at double digits every year, which for sure doesn't make sense!

 

The CBI has purchased 60 TONS of GOLD in the last TWO MONTHS with not a single bump in

the value of the dinar, does that make sense? Of course not!

 

The CBI is preparing to take control of ALL Iraqis ASSETS, some that has been frozen for as long as 24 years but yet they are printing the same old current series of banknotes, REALLY? That doesn’t make sense!

 

FYI: I found over $105 billion USD worth of documented frozen assets in just a short few minutes of searching for it on the net, between Saddam’s personal conservative estimated funds, the estimated hidden loot by others, to the Saddam family pension fund, valued at $41.6 billion in 1990:

 

LINK

  

There is more out there than this  and I will continue to research for it but I think you get my point.

 

The CBI has contracted a company to mint into gold ingots 11 TONS of GOLD to be sold to the Iraqi citizens  that only make  a per capita income of around $6,000 per year. Again, does that make sense?

 

FYI: As I talked  about  on our roundtable  discussions  last night gold ingots are marketed to the middle  and upper  middle  class which Iraq just recently reached a worldwide lower middle class status with their per capita income level. Is there more to this story and are they about to reach a higher level soon that can afford Iraqis to buy these ingots through a pending revaluation of the Iraqi dinar? That would make sense  and the CBI would  know because  they are  the ones in charge of Iraqis monetary future but I would say the answer is yes, there is more to the story. By the way, the rich buy bullions or gold futures not ingots and all you really have in Iraq right now are poor, low international standard middle class that are barely getting by and rich billionaires! One only needs to watch the many TV commercials pushing gold and silver here in the states that are targeted to the U.S. middle class too know this and the middle class Iraqi are sure not comparable to our middle class, or are they about to be? No that makes sense!

 

The CBI continues with these daily auctions that orchestrate two exchange rates: the de facto fix of 1166 : $1 USD and a market rate of 1192-1292 : $1 USD when only countries that have inflationary  issues,  high debt,  trade deficits and  low foreign reserves work dual or multiple exchange rates to combat these issues. Iraq has very low inflation at 3.1 percent, very low debt compared to the rest of the world and that is being paid off fast, a trade surplus (not a deficit) and the highest foreign reserves in the history of their country and larger than most countries of the world  but yet the CBI continues to keep a very  low value to the dinar.  That just doesn't make sense!!

As Expert Mark DeWeaver puts it: “One exchange rate should be enough”

 

The CBI spent $10,000,000.00 on 10 high speed DeLaRue  machines  to  count,  sort, detect fraud, bundle and/or destroy their currency, does printing new versions of the currency  and just  adding them to what’s  already out  there put  these high  dollar machine’s to work? No it doesn’t and it doesn’t make sense either!

 

So why are they printing an improved version of the same bills? Is it because the 250, 500 and 1,000 dinar notes are worn out? The news and complaints from the Iraqi citizens tell us this, the low liquidity (dinars) statements by the Iraqi bankers themselves tell us this, so that part makes sense. It even makes sense that these would be the highest in the lower denominated food chain once the CBI prints the 5, 10, 25, 50 and 100 dinar banknotes which have been approved and designed in 2012. But printing higher banknotes with three zeros on them when years of studies by Dr. Shabibi himself and the GOI Economic Committee assigned to reforming Iraqis economy and currency says that Iraq is and has been ready by easing in transactions through deleting the zeros and improving the purchasing power of the dinar.

 

Approved banknotes and designs:

 

5 dinars: Beck waterfall and palm tree

 

10 dinars: dinar coin minted in the reign of the Umayyad dynasty and lighthouse Hadba in Mosul

 

25 dinars: King Hammurabi receiving the law and farming of Iraqi Kurdistan

 

50 dinars: King Codaa and Fort Ukhaydir

 

100 dinars: Central Bank building in Azwaip area in Baghdad and ziggurat

 

200 dinars: bridge and school

 

Ahmed Hassan Faidhullah brought up some good points but the real question should be, does the CBI have a bigger plan in mind?

 

The answer to that is yes they do, by common  sense  alone the printing of the 250, 500 and even the 1,000 fits right in with the real plan, IMO! Today most of the articles are only talking about these bills anyway.

 

So why print higher three zero banknotes? Because these will be used for commercial transactions, just yesterday in one of the Kurdistan newspapers this was quoted: On November 2013, the CBI announced intention to put into circulation higher banknotes of 50,000 dinars in Arabic and Kurdish languages. Will with these new 25,000 notes they sure don’t need a 50,000. A few years back they wanted to print 100,000 and 250,000 banknotes for commercial transactions so I look at this as a great sign that the real value of the dinar when reform is implemented may have these new 25,000 notes worth as much as the those 250,000 notes would have had by lifting the value by three zeros. We have seen that terminology used many times over the years, lifting the value by three zeros is just one of terms used when they refer to the zero project.

 

Listen to my friend Mr. Khoury translate the CBI Press Release Documents I sent him concerning this subject of re-printing the current series of banknotes. He joined us on our roundtable discussions unexpectedly last night, so you need to hear what he had to say. After the intro I forgot to turn my mic on, but I figured it out; just be patient for a few minutes and the audio will start.

 

 

So in conclusion, it does make sense and is well worth spending millions on a new generation of the current series of  currency in the  CBI’s big  picture.  But does all this make sense to you?

 

You should be proud of yourselves for taking your valuable time to get more informed with facts!

 

 

 

Stryker

 

[sandfly]

THANKS

[stealthwarrior]

Thank you Styker.it makes a lot of sense to me but these guys don't seem to make any sense most of the time.I DO agree that the time is NOW.they have pushed the envelope just about as far as it can go.Fire up the rate and release it to the world.

[Wiljor]

Many things don't make sense to us as to what is taking place over there, and the more we read, the more we speculate, the more excited or depressed we get from good, bad or any news that comes out of Irak is enough to make the faint hearted dizzy. It looks like things are taking off in the right directions but in the end, who knows? Politics is a very strange entity that has a mind of its own, governed by people who in reality don't work for the people or act on behalf of the people.

Thanks for the post gamaray

[millionaire in training]

Thanks Gamaray,

Stryker makes some good points.........

[quadkidd1]

Sup GAMA.............

[idplzr]

Good read!! Sandfly for posting it....

[rockfl9]

I don't think the CBI really added to the gold reserve , it just swapped dollars in reserve for gold thinking it was a better value in the long term.

Selling gold ingots and coins to Iraqis would be a side business and profitable ..

Nowhere in anything I have read do they propose printing anything smaller than a 250.  The smaller denoms he alludes to were in conjunction with an RD that didn't happen.

I think Stryker   is talking apples and oranges not facts. 

[skeetdog]

Thanks Gamaray...The smaller denominations were approved and the designs were created but there's no news to confirm the printin' of the 5 dinar thru 200 dinar...then again where did anybody ever confirm a RD was to take place and in that any conjunction of this assumed RD to the smaller denominations...I personally like both apples and oranges and can eat both while talkin' facts in any discussion on what a RD/RV/RI...the bottom line is no one knows what's goin' to happen or when it's goin' to happen...to presume the smaller notes only were in conjunction to the RD is hard to believe and I'll have to call ya out on B/S on this one...not personal in any form, just can't see your view on this...

[jeepguy]

mmmmmm I wonder ,  if the dinar  would  get  re-valued  at  say 1 to 1 , or 2 to 1  ,,  would  they still use  the u.s. dollar  to do smaller  exchanges   {  say  that  something  cost  75 .oo dinars  they could  give  a 1 hundred  dinar  note  and  get  25 u.s. dollar  back ?   or  what ever  the case may be

[10 YEARS LATER]

Thank you Styker.it makes a lot of sense to me but these guys don't seem to make any sense most of the time.I DO agree that the time is NOW.they have pushed the envelope just about as far as it can go.Fire up the rate and release it to the world.

Absolutely agree . . . these Pin Heads have pushed it all the way out to the Sticky Bit of the envelope. They'e quickly running out of envelope.

[NWGUY]

Thanks Gama!!! Good Work!!!

 

I like Stryker, and like Adam, I don't think he makes a lot of promises.  He lays things out, and lets you decide, what you think.  Right now, I feel that things are kind of reaching the boiling point, where something is going to happen.  Like most of you, when I got into this investment years ago now, I thought is was ready to bust open, but now over the years, I am just cruising along, reading, and evaluating.  Not getting too high, or too low!!  I just feel that this is the year, and like you all, I am ready for the end of the ride.  Good or bad,  just be done!!!! 

 

Go RV or RI Soon!!!

[few24u]

Just a great example of Strykers contribution to our knowledge and understanding of what is going on in Iraq and everything involving our investment.

+1Gamaray

Edited April 12, 2014 by few24u

[countryroads]

Since when did the Iraqis do ANYTHING that was simple and quick? Except postponments and vacation.

[sportfisher]

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Posted 10 April 2014 - 06:40 AM

It makes little sense that they would spend the money it takes to print these new high quality notes in the same denominations that are already in circulation (and staying in circulation), unless there is a substantial increase in value planned and coming  

Read more: http://dinarvets.com/forums/index.php?/topic/175804-finance-let-the-cbi-improve-the-status-of-the-dinar-against-other-currencies/#ixzz2yi09Qc9D

[Rayzur]

Interesting read... I get why he would make some of the conclusions he does.. and I think its possible his prisim is not wide enough to see some of the  alternative explanations to some of his points... ...(mind you are not talking about agreement or disagreement with the RV, just the points referenced).. I think its important to take in as much info as possible in order to make the best short and long term plans as best we can.... in adition to the dinar... Meaning, if there is something in all the news we get, maybe it doesn't relate to the dinar, but is something we should pay attention to?

 

The CBI is adding even higher security measures to their currency that is way undervalued compared to international standards, that doesn't make sense!

Makes total sense if you've read endless discussions about the huge counterfeit problem they have and how much it totally freaks them out ... among concerns that there is enough out there to undermine the exchange value of their currency....

 

The CBI has purchased 60 TONS of GOLD in the last TWO MONTHS with not a single bump in
the value of the dinar, does that make sense? Of course not!

 

It makes sense if you've been watching what is going on with gold (apart from its spot)...AND if you put that with ALL major players are amassing gold (over the long haul generally speaking) AND if you read  what the IMF is setting up for... as an alternative if/when the fiat currency fails..... 

 

The CBI has contracted a company to mint into gold ingots 11 TONS of GOLD to be sold to the Iraqi citizens  that only make  a per capita income of around $6,000 per year. Again, does that make sense?

 

Yes, it makes sense, see above in addition, Iraq is offering its people the opportunity to exchange currency for gold... China has it in vending machines allowing their citizens to exchange currency for gold... You can buy gold bullion in a variety of forums all over the US and on and on... it looks like countries are offering their citizens the opportunity to own something of intrinsic value... Why? one thought is a possible return to the gold standard.

And I really doubt Iraq intends that the exchange of currency for gold would be considered the per capita income, anymore than my exchanging my USD for gold in the US is an indicator of my income... WOT?!?..

 

By the way, the rich buy bullions or gold futures not ingots

He and I know distinctly different genres of  rich people, including billionaires..,

 

So why are they printing an improved version of the same bills?

Major freak out concern over extensive  counterfeiting as possibly impacting the exchange value of their currency.....

Current bills wear out, just as any currency wears out.....

There will be a two year exchange period..... meaning these bills have to last for the two year period AFTER the LDs are released, until its all turned in for the new LDs..... The current currency won't just disappear overnight and in its place the LDs.... so the currency has to last at least two years after that.....(and there's something else in there about a 10 year period as well)....

 

I'm not saying that the above thoughts are any more or less valid.... they are just different perspectives in looking at the same thing... through different lens.... and neither of them necessarily drive when the value will raise (RV) .... All of this stuff seems to be related to the functional needs of a valid and durable currency, versus actual drivers of the currency's exchange value?

[ronscarpa]

Thanks Gamaray & Rayzur for the posts (+1 each) and to Stryker for his article....Have a great weekend everyone & be Blessed..!

                       RON   

[genx4me]

Rayzur, you have a way of giving us different perspectives in such an elegant way! I always appreciate what you bring to the table. Many thanks friend!