Will an RV affect All Dinar Held Worldwide Simultaneously

[ewingm]

It is my Perspective that when a currency revalue is announced, ALL of the currency units increase in value simultaneously.  I cannot imagine it being done any other way.  Does anyone know if an RV can occur in chunks and pieces, spread out over time?  That wouldn't make any sense to me, in my perspective.  What do you all think?

[mrparrot]

Short answer ----> Yes, every single IQD bill, the world over, all at the same time.

[Texstorm]

Instantaneously ! No other way, the IQD will be what ever the CBI says it's worth, end of story. As long as the US accepts it that's the other end of the story. The world will accept it because the US accepts it. What else is there to understand ? BTW I like your new Threads.

[ewingm]

Well, if both of you believe it will RV ALL dinar worldwide simultaneously, then in my humble perspective, why wouldn't the 90 Trillion dinar that is M2 be a slight problem for you?  It is my perspective that an RV would have to be backed by a nation's ability to make good, if their currency was returned for exchange by outside governments.  That's what the IMF Article was dicussing, in my opinion of course.   And if there's quite a few dinar held overseas, wouldn't that create a small problem for the CBI?  Just in my opinion, of course.  I'm not stating fact here, just conjecture.  

[italiancat]

Well, if both of you believe it will RV ALL dinar worldwide simultaneously, then in my humble perspective, why wouldn't the 90 Trillion dinar that is M2 be a slight problem for you? It is my perspective that an RV would have to be backed by a nation's ability to make good, if their currency was returned for exchange by outside governments. That's what the IMF Article was dicussing, in my opinion of course. And if there's quite a few dinar held overseas, wouldn't that create a small problem for the CBI? Just in my opinion, of course. I'm not stating fact here, just conjecture.

You do like to stir the Poop don't you? If Uncle Sam sends you a Refund check, you will still cash it knowing that they don't have a penny in the bank, yet that check does not bounce. Why????? You have your answer. Lol..,

[dontlop]

There's no limit on how much money a country has

It's fiat

The only limitations they have is external debt ewingm I've told you that a thousand times now

Maybe you should study up on what exactly is external debt

Iraq can have a gazillion trillion dinar worth a dollar but how much external debt do they have

If they impose a 50% tax on imports , half of everything spent on exports goes to the govt of iraq giving them exactly enough money to pay their external debts

If that doesn't work they can just raise tariffs up to 60% or what ever number it takes to keep imports down to a manageable number

Why are you so concerned with Iraqs debts

You should be more concerned with the worlds biggest debtor , the United states.

The usa debt is around a trillion dollars a year ewingm

Are you worried for all those Americans that hold the dollar ?

Cheesy ewingm just cheesy

It stinks to high heaven ewingm

Your bs is stinking up the atmosphere

[ewingm]

But ItalianCat, you forget we ARE the reserve currency of the world backed by the most robust GNP of the ENTIRE world!  If a fiat currency is based on perception, then we have it.  But iraqi dinar is not a world reserve currency, its is not even a tradeable currency, and is not listed on any of the world's forex exchanges.  Yes they have oil, but they also have ISIS and sectarian violence up the wazoo.  So in my OPINION, I think iraq would have to have substantial currency reserves to back an ACCEPTABLE large scale revalue of their currency.  Now this is not fact, this is simply my opinion.

[dontlop]

Iraq does not have to give you dollars for your dinar ewingm

They issue dinar not dollars

All they need to do is except their currency for goods and services like everyone else

It is perceived that iraq has a gold mine of oil so the perception is iraq can pay its debts just like anyone else

Your crying out for attention is hallaious ewingm

This lesson examines the role that money plays in the global economy. You will learn how currency values are set by supply and demand, and how changes in the value of currency affect international trade.

http://www.econedlink.org/lessons/projector.php?lid=342&type=student

[Texstorm]

If the US says that we have declared war on a nation then you can bet your a.. that it is what we say it is. So to your M0 M1 M2 M3 Mmmmmmm, sounds like the sweet mayhaw jelly my grandmaw use to make. On a side note that's a berry that comes from a tree in the swampy areas of deep east Texas and Louisiana. OK sorry back to the $$$$$$, Ewingm if the US can back what ever the US says it can, then surely we can back the money at will. There is no such thing as a debt ceiling, that's all for show ! The ceiling just gets raised. Why don't you understand that ?

[dontlop]

When people in one country demand products from firms in another country, they must enter into another market first, to buy that nation’s currency. For example, if you were employed as the merchandise buyer for a retail consumer electronics firm and wanted to buy Sony CD players to sell to your customers, you would not simply send a check to Sony in the amount of American dollars. Firms want to deal in their own currencies. As a result, you would have to go into the foreign exchange market to buy yen, which you could then use to pay Sony for the CD players. supply1

In the same way that supply and demand for products shift to change the prices of those products, the constant shifts in the supply and demand for foreign currency result in changing prices of currency. As a result, the “price” of money changes as demand for foreign currencies changes. This “price” of foreign currency, in terms of U.S. currency, is known as the foreign exchange rate. It simply tells you how many American dollars it will cost you to purchase a unit of foreign currency. This “floating” foreign exchange rate changes daily with the international supply and demand for currency.

A number of factors can increase demand for a foreign currency. If the other nation’s products sell at a lower price than domestic products, consumers will increase their demand for imports. If domestic incomes rise or domestic inflation rates are higher than those in other nations, demand for imports will rise, as well. In capital markets, if another nation’s interest rate (return on investment) is higher than the domestic interest rate, some people will choose to invest in the other nation’s securities. When consumers import more products from a country or invest in that country’s securities, their demand for that currency increases. This increase in demand pushes the price of the currency higher, so their currency appreciates (rises in value).supply 2

Because consumers use U.S. dollars to buy the foreign currency, when the demand for foreign currency increases, the international supply of U.S. dollars increases proportionately. As the supply of dollars increases, the “price” of U.S. dollars falls, causing the dollar to depreciate (fall in value).

In the international market today, the supply and demand for currencies and the resulting relative values of currencies can affect the demand for imports and exports. For example, if we have a strong dollar, the dollar is very valuable compared to other currencies; other currencies appear very inexpensive to us. Because we can buy the currency more cheaply, the prices of the country’s products appear lower to us. And at lower prices, quantity demanded rises. So when the U.S. has a strong dollar, we buy more imports from foreign countries. This helps U.S. importers, such as electronics outlets, grocery stores, and gas stations, because when they can buy goods at a lower cost, they can offer those goods to their customers at lower prices, increasing the quantity demanded for their products and potentially increasing their profits.

An important negative effect of the strong dollar, however, exists for American exporters. When we have a strong dollar, buyers from other countries see our currency as being very expensive; they must give up more of their currency to buy dollars. As a result, the prices of our products appear more expensive to them. Therefore, the quantity demanded of our exports falls. This harms U.S. exporters, such as computer companies, auto manufacturers, and farmers, because they must lower their prices to try to attract demand for their products, resulting in lower profits and possibly forcing some firms out of business completely. The resulting impact of a strong dollar is a trade deficit. Imports rise, while exports fall.

The interesting thing about this entire phenomenon of changing exchange rates is that they can be self-correcting over time. For example, when we have a strong dollar, we demand more pesos to buy more Mexican products. But the very act of demanding more pesos causes the peso to appreciate, so Mexican imports appear to be more and more expensive over time. At the same time, the supply of U.S. dollars in the international market is growing, so their value falls as the dollar depreciates. Over time, imports are not as attractive, but our exports become more attractive to other countries, because their currency has become stronger. At that point, the U.S. would have a weak dollar--a condition, in which U.S. dollars are not very valuable compared to other currencies. Such a situation helps U.S. exporters, but hurts U.S. importers. This rise in exports and fall in imports results in a trade surplus. But over time, the situation can again reverse itself, as the increased foreign demand for U.S. exports forces up the prices of American goods internationally, so the quantity demanded by foreign countries again begins to fall.

In the cycle of international trade, changes in relative incomes, inflation rates, product prices, and interest rates can affect the international value of currencies. And at the same time, changes in the international value of currencies can affect the demand for products and securities in the international marketplace.

As supply and demand for currencies change, the values of those currencies change. When the U.S. dollar is strong, imports seem less expensive, leading to increased demand for imported products and the currency needed to purchase them. In addition, when interest rates in another nation are higher than those in the U.S., demand for the foreign currency rises, as people buy the currency in order to invest in the other nation’s securities. At the same time, a stronger dollar decreases exports, because they appear more expensive to foreign consumers. Therefore, a trade deficit develops as the result of a strong dollar. The opposite effects result from a weak U.S. dollar. While importers prefer a strong dollar, exporters prefer a weak dollar.

The differences in currency values can affect our ability to buy imports or sell exports, affecting our standard of living. Therefore, the effects of currency crises in other nations are not limited to those nations -- they can affect our economy and our lives in important ways.

Iraq imports most of its goods and services so they need a strong dinar

It's exactly why they have always had a strong dinar

For importing

[ewingm]

Well, that's all very interesting, in my opinion, but a countries currency must be backed by preceived value.  Confederate money became worthless when there was no more belief in its economy.  The German Mark became worthless after the Allies bombed every city and factories into rubble.  Iraq is pretty much a wasteland after twenty years of war and occupation.  Its currency was determined to be near worthless back in 2004, but slowly crept up to 1166.to 1 in 2009, where its stayed for five years. Now this is just my opinion, I'm not presenting facts.  Maybe I've missed something  important that makes Iraq different from other devalued currencies, so its just speculation on my part.  But itsmhard for me to understand how the CBI could just overnight a big RV and it being accepted by the world's banks and IMF.  Just my opinion here.  I'm not presenting any facts here.

[Texstorm]

I got to hand it to you Ewingm you can really play a fiddle....so what is the difference between the fiddle and a violin, if you can answer that then you will have your answer.

[dontlop]

It's not exactly perception

It's based on its ability to pay its foreign debts

And that is based on its sovereign credit rating

The exchange rate isn't important except when paying foriegn debts

Do you think they want a thousand notes to carry around or one note that equals the same as a thousand

The 1166 exchange rate is a perception put in place while they reorganize the slop pit for the hogs

People are educated to make money off a growing vibrant economy

While the smart people make their money off mistakes and screw ups in the economy

Buy silver and gold when the economy is doing good and sell it when the economy fails

Kinda like the opposit of what you think you should do

When the economy fails sell your silver and gold and buy up the cheap down graded stocks

When the economy improves and stocks go back up the silver and gold will lose its value sell your stocks and buy the gold and silver again

Just do the opposit of what you were taught in school and you'll be fine

[whatsthis]

It is my Perspective that when a currency revalue is announced, ALL of the currency units increase in value simultaneously.  I cannot imagine it being done any other way.  Does anyone know if an RV can occur in chunks and pieces, spread out over time?  That wouldn't make any sense to me, in my perspective.  What do you all think?

To answer you question can they go up in value in chunks yes it is call a float letting the market set the rate. If you do your home work & read articles from IMF,CBI, they use gradual rise in the value which could only mean a float. IMF has 2 kinds of floats a managed float & a free float, in my opinion we want the free float because under a managed float they can only raise the value 2% every 90 days.

[ewingm]

No, you're missing my point, Whatif.  My question wasif the CBI announces a big RV, does it apply to ALL dinars, such as electronic, stocks, currency in country and currency out of country?  Does all dinar go up in the same value at the same time?  The concensus is that it all MUST go up at the same time.  That's just my opinion of course.  Not based on any fact.

[coorslite21]

Ewingm,

 

My research indicates that M2 is 27 trillion....if true, this might change your thought process......

 

unfortunately this is Iraq.....and no one really seems to know what is true and what is not......

 

one thing for sure.....the currency used to have a much greater value......and the country has a wealth of resources......many untapped as of yet....

 

we can all have our opinions........mine is just a bit more optimistic than yours..!!!!

[Texstorm]

E you have more points than a porcupine, if a dollar is worth a dollar and a dinar is worth $3.96 I'll be a very happy man. If it ain't worth a darn thing nothing has changed. This is not the end of the world yet, why do you act like it is unless you have insider information. Is the world going to come to an end tomorrow..... come on give us the low down please.

[dontlop]

They could be making up crap as a distraction and come out and only delete two zeros and end up with 350 billion dollars worth

Or 800 billion dollars worth

A far cry from 80 trillion dollars worth

Three zeros would be 80 billion dollars worth

And that is not enough

800 billion would make iraq plenty rich for now

[ewingm]

Well, to Coorslite, I don't know where you're getting your information, but I get mine from the horse's mouth which is the CBI itself.  And they declare an M2 of close to 90 TRILLION dinars.  Now that's just my opinion, you understand.  I don't have any real facts to present, just the CBI's audited information through the IMF.  But that's their facts, not mine.  But it does seem odd that a country can just declare any old amount of exchange, and then expect the world to abide by it.  Saddam tried it, back in 1999, but the world didn't accept it so it was pretty much a stupid thing for Saddam to have done.  But don't believe me, that's just my opinion, not facts, you see.

[Texstorm]

OK Ewing the reason it didn't work for Saddam Hussein is cause the US did not recognized it ! It was no trick, I think its called sanctions.....that means you can't play with us.

[dontlop]

Even if it is 90 trillion dollars it doesn't matter

They are not I debt 90 trillion dollars because they have 90 trillion dollars

If you want to talk about saddams debt that's one thing but to talk about the amount of currency a country is allowed to have is another

The debt to GDP is what saddam screwed up it was over 600% debt to their gdp

His ability to pay was gone

Iraqs debt to GDP now is around 30% debt to GDP

Iraqi dinar around the world is not debt

It's a debt note indicating the debt was paid with dinar

Those dinar can be used anytime for goods and services and when they are spent those dinars value is transferred to iraq in return for iraqi goods and services

I don't care what you heard or thought

The dinar is redeemable for goods and services unless the cbi is auctioning off dollars and you buy some with your dinar somehow

Or if the iraq central bank is buying dinar off the forex

Or if anyone else is buying your dinar off the forex or thru a currency dealer

But it's not a law that they have to buy back the dinar on demand

Just like every other currency including the dollar

The Chinese can't show up in the USA and demand 2 trillion dollars worth of Chinese yaun

But they can demand 2 trillion dollars worth of goods and services

Just like you can when you spend your dollars in the usa

The cbi doesn't issue dollars for one thing

For another

Those numbers at the cbi are all deposits of money including dollars deposited at the exchange rate of 1166

That's your m2 number

If there's a billion dollars deposited at the cbi it is listed as 1.166 trillion dinar deposited on the cbi link

Every thing is in dinar on their site

Deposits are part of the m2

.

Edited November 30, 2014 by dontlop

[ewingm]

Well I may be just a dumb old country boy who don't know squat about this dinar thing like you fellers do, but I must say that if you read IMF Article 8 Section 4, it seems to CLEARLY say that if one member is holding a bunch of another member's currency, they can demand EXCHANGE IN THEIR OWN CURRENCY.  Now I'm not stating facts here, just my opinion, you see, but that's kinda how it sounds to me when I read it.  Why don't you all just give it a read and we'll discuss where I went wrong, cuz I'm always wrong, being a dumb old country boy.  Now that's just my opinion here.  Not trying to lie about anything, you see.

[dontlop]

Are your relatives imf members ?

Just remember this if you don't remember anything else

Goods and services

If they end up on the forex some day there will be some demand for dinar not much but around 10 billion dollars worth a year for importing from iraq but the cbi buys around 50 billion a year to stablize the dinar

That importing can go higher as they expand their local economy especially their agriculture

They have a water source and have in the past been known for exporting agriculture

[dontlop]

Imf article 8

Section 4

Section 4. Convertibility of foreign-held balances

(a) Each member shall buy balances of its currency held by another member if the latter, in requesting the purchase, represents:

(i) that the balances to be bought have been recently acquired as a result of current transactions; or

(ii) that their conversion is needed for making payments for current transactions.

The buying member shall have the option to pay either in special drawing rights, subject to Article XIX, Section 4, or in the currency of the member making the request.

( The obligation in (a) above shall not apply when:

(i) the convertibility of the balances has been restricted consistently with Section 2 of this Article or Article VI, Section 3;

(ii) the balances have accumulated as a result of transactions effected before the removal by a member of restrictions maintained or imposed under Article XIV, Section 2;

(iii) the balances have been acquired contrary to the exchange regulations of the member which is asked to buy them;

(iv) the currency of the member requesting the purchase has been declared scarce under Article VII, Section 3 (a); or

(v) the member requested to make the purchase is for any reason not entitled to buy currencies of other members from the Fund for its own currency.

[ewingm]

Now this just my opinion you see, but I am pretty sure you're wrong about the M2 containing the amount of dinar in gold reserves.  As of 2013 the CBI annual report showed 42 Trillion in CURRENCY issued and another 45 Trillion dinar in local banks and finacial institutions.  These are listed as LIABILITIES.  The gold reserves are listed under ASSETS.  Now I could be wrong, being a dumb yokal, but I do believe you're mistaken again there ole cow stomper.  You see, if people listen to you, they may get misinformed if you're wrong on things, you see, and I'd feel poorly bad if they were misinformed about the dinar, and the M2, and the IMF, you see.  But what do I know being a just a country boy with no facts, just my opinions to go on.  I sure hope they're right though.  I don't want to be accused of lying again.