Need help with the numbers

[freek]

Can anyone please explain this to me in a way that it will make some kind of logical sense? As I understand it there are about $27 trillion dinar in circulation. Many people believe that the RV will make a dinar worth anywhere from $.83-$3.49 USD. At least these are some of the projections I've heard. So going with the low end let's say that the RV is for $.83 USD. That is $22.41 QUADRILLION ! This is many, many more times the full value of all money around the entire globe. How can this be? Unless of course the dreaded LOP that so many of you hate to discuss becomes a reality. I'm just a novice on the subject and I'm asking only to learn. I welcome any input to help me understand. Thanks, Freek

[mattevan]

Do the math over...it would be less then $27 trillion at $.83. and over$3.00 would be 80 trillion.

[roger-write]

Can anyone please explain this to me in a way that it will make some kind of logical sense? As I understand it there are about $27 trillion dinar in circulation. Many people believe that the RV will make a dinar worth anywhere from $.83-$3.49 USD. At least these are some of the projections I've heard. So going with the low end let's say that the RV is for $.83 USD. That is $22.41 QUADRILLION ! This is many, many more times the full value of all money around the entire globe. How can this be? Unless of course the dreaded LOP that so many of you hate to discuss becomes a reality. I'm just a novice on the subject and I'm asking only to learn. I welcome any input to help me understand. Thanks, Freek

Actually, it would be worth $22.41 trillion at $.83

[freek]

Actually, it would be worth $22.41 trillion at $.83

Okay, where's my dunce hat? Sorry about that. Still though, $22.4 trillion is still an incredible amount of money. More money than USD in circulation.

[sfredieu]

Okay, where's my dunce hat? Sorry about that. Still though, $22.4 trillion is still an incredible amount of money. More money than USD in circulation.

you also got to take in consideration that alot of that will be traded back in for oil from the u.s and other countries with agreements with iraq.keep reading the posts and you will see one that explains how it will work so accually it wont really cost them alot to get the dinar back even at 3+

[GrahamB]

Okay, where's my dunce hat? Sorry about that. Still though, $22.4 trillion is still an incredible amount of money. More money than USD in circulation.

I'm not sure that that is true! whats USA's current debt level?

And even if it is more than is in circulation in the US, Iraq has (sensibly) no debt! And despite it's failing, Iraq is unlike to be dragged as far down the pork-barrel-politics road that US has gone!

[freek]

Thanks guys, I appreciate all of your input. Freek

[GrahamB]

you also got to take in consideration that alot of that will be traded back in for oil from the u.s and other countries with agreements with iraq.keep reading the posts and you will see one that explains how it will work so accually it wont really cost them alot to get the dinar back even at 3+

Hey sfredieu, that avatar is a beautiful set of wheels! How many different colours does it come in? Enough for a different one each day of the week?

[theDude]

Okay, where's my dunce hat? Sorry about that. Still though, $22.4 trillion is still an incredible amount of money. More money than USD in circulation.

2 things you need to consider.... 1. most money transactions in the us are credit/debit transactions, so we dont reqire alot of phyisical cash. iraq on the otherhand is the exact oppisite. most of thier transactions are cash based, so they need a lot of money on hand. if you were to put the us in iraqs shoes, and drop all bank accounts, we would reqire far more than 22 trillion in cash currency.

2. as we cash in our dinars, a large portion of the big bills will be taken out of circulation and turned into electronic digits in an account.

on another note, imo just because it sais 22 trillion, doesnt mean there is 22 trillion actualy in circulation. no one knows how much is just laying around in our, and govt safes. i dont realy consider this in circulation. nore do we know how much money is sitting in bank safes in iraq, that hasnt been released to the public, or how much is in the lower denom bills that have been printed, that also havent been released yet.

[luckylucy]

thanks everyone for posting here ... very good explanations!

luckylucy

[gman51]

One more thing I would like to add to all the other great information left here is this: I read somewhere in a post that a country only needs a small percentage in cash reserves to back their currency. Something like 20%. It was in a post on this website. Makes sense though, because everyone knows that the US could never cover all the US currency in cash. That is what started the "Great Depression" in the 1920s, a rush on the banks. So, Iraq would only need to have 4 trillion in reserves to cover 27 trillion in circulation. Any rebuttal would be greatly appreciated.

[ReachingHigher]

Not sure how this affects total monetary figure but not everyone will cash in. Example, the people of iraq will not cash in to USD,Euro etc, they will simply have more buying power. I would also speculate that governments will not just cash in their dinar but they will use it as an investment or leverage to obtain other desirable items such has oil. So i am guessing that most of the "cash in" will come from the private investors, if the RV occurs. So the actual cash payout will be far less than what is in circulation.

If someone reads this and sees a fatal flaw in this please let me know, i would hate to continue with this opinion if it is totally off base!!

Thanks Eazy - GREAT point IMHO.

Peace

[OILandDINAR]

I'm not sure that that is true! whats USA's current debt level?

Official Debt Total as of 5/20/2010 = $12,987,822,672,429.02

Thats $42,304.71 per citizen according to Official U.S. Census Bureau 2009 Population Estimates.

And I thought that ap on my phone would never come in handy. lol

[lgraham]

I have often wondered how a country can afford to print so much money.....then at a later date adjust the value upwards and not go broke. If it works, why wouldn't more countries do this? However, Iraq is different. This is a giant reset for them. New leadership, new interaction with the world, new currency with a new value. Take a look at this I.M.F. document that I have attached. If I am reading it correctly, this document says that the the banks have in reserve as much as they have in circulation. This reserve could easily be the smaller denominations we are looking for. Now, with hundreds of billions of dollars about to come into Iraq through reconstruction projects. Doesn't Iraq stand to benefit by increasing the Dinar say to one dollar. Because when every multi-national corp comes into Iraq to begin work they have to convert their currency to the dinar. Now for example, when a U.S. company begins to spend money on a project, Iraq only gives them one dinar per dollar instead of 1,170 dinars per dollar. Same for every other countries currency. Won't the foreign currency reserves at the CBI increase dramatically with this new rate? Then as the foreign reserves continue to increase, the CBI continues to withdraw dinars from circulation as they have planned. This will of course increase the value of the Dinar moving forward.

Lgraham

[bahtman]

Can anyone please explain this to me in a way that it will make some kind of logical sense? As I understand it there are about $27 trillion dinar in circulation. Many people believe that the RV will make a dinar worth anywhere from $.83-$3.49 USD. At least these are some of the projections I've heard. So going with the low end let's say that the RV is for $.83 USD. That is $22.41 QUADRILLION ! This is many, many more times the full value of all money around the entire globe. How can this be? Unless of course the dreaded LOP that so many of you hate to discuss becomes a reality. I'm just a novice on the subject and I'm asking only to learn. I welcome any input to help me understand. Thanks, Freek

Freek,

Take the time to read through the posts on this link and you will feel much better about your situation:

One other note to realize: most of the currency "in circulation" is inside the country of Iraq. It costs almost nothing to replace this currency. They are trading paper for paper. With regards to the currency held by investors, of course, it has to be dealt with. The link that I provided will explain how that will happen.

[quadraph0nic]

OIL is all they need...

Look, what makes a dollar a dollar? only our promise we will pay it back. (fiat)

doesnt trading determine the exchange rate?

you just need all the countries of the world on the same page...

[Doc31]

Can anyone please explain this to me in a way that it will make some kind of logical sense? As I understand it there are about $27 trillion dinar in circulation. Many people believe that the RV will make a dinar worth anywhere from $.83-$3.49 USD. At least these are some of the projections I've heard. So going with the low end let's say that the RV is for $.83 USD. That is $22.41 QUADRILLION ! This is many, many more times the full value of all money around the entire globe. How can this be? Unless of course the dreaded LOP that so many of you hate to discuss becomes a reality. I'm just a novice on the subject and I'm asking only to learn. I welcome any input to help me understand. Thanks, Freek

Try this:

It has more information than you asked for but it also covers why they don't have to "come up with" but about 10% (you'll find it where it's talking about 90% being held in central banks by countries who do business with them) 8th paragraph from top.

It also covers the statistical probabilities of the RI/RV ranges. You don't have to agree with it ... but the the math will give you a little better perspective, I believe

PEACE

Doc31