Local use of local currency is free no need to back it

[dontlop]

Rebuilding Iraq only costs what ever they need to import to rebuild and the cost of paper , ink , and printing

They can circulate their local currency forever within Iraqs borders and never have any use for the reserves

The reserves just sit in a pile and serve nothing

The services and labor paid for in dinar to their citizens costs nothing

If the private sector grew to the point that the govt could survive on taxes alone they wouldn't ever need to back up their local currency because the govt woukdnt need to keep buying dinar at auction to use for services and labor or the things that are manufactured within iraq from its own natural resources

The dinar could circulate in iraq based on an understanding of a legal tender law similar to the greenback in the usa

So only if dinar is used outside of the country of iraq would they need backed

Currency is just a way to back the trader whether they are trading skills or products they sell

It's a way to break down value into small units of value

If some guy raised cows , he can't carry them around to trade with when he goes to the Mall. Besides that if he had a cow worth 500 dinar and he wanted a pack of gum he wouldn't be able to trade , so they break the value down into manageable units.

The reserves in my opinion do nothing for a local currency ,

If iraq accepts imf article 8 other things come into play for them internationally for iraq , not the cbi , but for iraq

The iraqi govt goes broke when the cbi is broke , the govt of iraq owns the cbi , people like to say they are two seperate entities , they are but only to a certain point ,

Saddam took over the cbi , no one in the world ever complained , after all who makes the laws in iraq , the govt does

Bremmer and the coalition changed the cbi , if the cbi could of changed its laws before under saddam they would of but they didn't because govt controls everything in its country , not just some of them

The only thing the Supreme Court changed about the law in 2011 was which branch of govt supervises the cbi from council of representatives to the council of ministers

The Constitution of Iraq states that the central bank is a financially and administratively independent institution, responsible before the Council of Representatives of Iraq. According to the Constitution, the Federal government of Iraq has the "exclusive authority" of "establishing and administering a central bank".

On January 25, 2011, the Supreme Court of Iraq ruled that the Central Bank of Iraq should be under supervision of the Council of Ministers of Iraq.

[dontlop]

The cbi would have to give up every penny of its reserves to the iraqi citizens if they just all went to the bank and demanded dollars

Then the cbi would be sitting on dinar with nothing backing it

What would they do then ?

Pay the govt employees with worthless currency ?

I say it isn't worthless , it's all or at least it should be a legal tender law that all debts are to be settled with iraqi dinar for goods and services

Has anyone seen that in the form of a law in iraq ?

This is a good read on the subject of money not needing backed

http://en.m.wikipedia.org/wiki/Greenback_%28money%29

It's how the usa got started

[dontlop]

Just click on the history tab on the link

United States Notes

Main article: United States Notes

The amount of Demand Notes issued was far insufficient to meet the war expenses of the government, but even so was not supportable.

The solution came from Colonel "****" Taylor, an Illinois businessman serving as a volunteer officer. Taylor met with Lincoln in January 1862, and suggested issuing unbacked paper money. Taylor said "Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes... and pay your soldiers with them and go ahead and win your war with them also. If you make them full legal tender... they will have the full sanction of the government and be just as good as any money; as Congress is given the express right by the Constitution."[3]

Issuing unbacked paper money was not an idea Lincoln really liked, but soon there was mounting pressure in Congress to do something. The government could either print its own money or go into deep perpetual debt to foreign creditors. So the President was quick to endorse Taylor's proposal.[4] On February 25, 1862, Congress passed the first Legal Tender Act, which authorized the issuance of $150 million in United States Notes.[5]

The reverse of the notes were printed with green ink, and were thus called "greenbacks" by the public, being considered equivalent to the Demand Notes already known as such. These Notes were issued by the United States to pay for labor and goods.[3][6]

As the government issued hundreds of millions in greenbacks, the value of the greenback against gold declined. But though the decline was substantial, it was nothing like the collapse of the Continental dollar.

In 1862, the greenback declined against gold until by December gold was at a 29% premium. By spring of 1863 the greenback declined further, to 152 against 100 dollars in gold. However, after the Union victory at Gettysburg the greenback recovered to 131 dollars to 100 in gold. In 1864 it declined again as Grant was making little progress against Lee who held strong in Richmond throughout most of the war. The Greenback's low point came in July of that year: 258 greenbacks equal to 100 gold. When the war ended in April 1865 the greenback made another remarkable recovery to 150.[7]

[WISKY291]

Thanks, dontlop

[sandfly]

THANKS

[stealthwarrior]

Just like the federal reserve is a central bank owned by investors,not the government.something George Washington strongly warned us about.he knew what the hell he was talking about.who is getting richer?the investors in the federal reserve.who are they?good question.if someone has the answer please tell me.i need their names and addresses for future reference.

[waterman13]

Just like the federal reserve is a central bank owned by investors,not the government.something George Washington strongly warned us about.he knew what the hell he was talking about.who is getting richer?the investors in the federal reserve.who are they?good question.if someone has the answer please tell me.i need their names and addresses for future reference.

The Rothschilds, the Rockefellers.the Morgans, the elite of the elite.

Wm13

[Wiljor]

The Rothschilds, the Rockefellers.the Morgans, the elite of the elite.

Wm13

Also known as The Bilderberg Group

[dontlop]

January 10, 2014 10:24 AM

Fed Sent $77.7 Billion in Profits to Treasury Last Year

http://www.wsj.com/articles/BL-REB-22529

[dontlop]

The fed does the govts dirty work incognito

Just like highering a mercenary

Look at iraq the cbi can't loan the govt money

So what do they do

Pretend they aren't , right

Well everyone knows they are , but it's worded differently , so they think they can , outsmart their own law that they made up themselves, and let themselves get away with it

And tell everyone what they are doing is legal cause they created a loop hole to out smart their own laws that they create

They sell bonds to themselves just like the usa is doing creating inflation to pay themselves out of debt

They own the cbi first of all , so the govt calls a meeting tells all its legislators what they are doing is legal

They call up their buddy's at some comercial banks and say

Ok we're going to unload way more treasury bonds than you can handle

So you can use your deposit money to buy bonds from is , but don't worry the cbi is going to turn around and buy them right back off you

Cause that creates a secondary market where the cbi isn't buying bonds from us they are buying them off of you a comercial bank

So see it's not breaking the law they just go around the laws

Those laws are for paperwork. Just so we look legit.

Selling themselves their own debt in a round about way.

[SteveG]

thank you for the research