For the doubters

[drox]

Response to the poster's question: Can anyone explain how Iraq is going to pay for the Dinar we purchased? ..... I apologize for the length of this post.

A better question to ask is (for the doubters).... Do you think that the current value of the IQD to the US dollar is valid?

I mean... 1/10th of a penny seems a little undervalued to me. If you lop the 3 zeros off the currency itself and not the exchange rate... doesn't the value still remain 1/10th of a penny to the average Iraqi citizen? It is simply a money illusion, as the Iraqi economist Dr. Peace Smeisim puts it so eloquently...right? The Iraqi citizen thinks it is the equivalent of one US dollar but they have much less of it... so really it is the same value as far as purchasing power. In fact, it may have the inverse effect and cause inflation without some sort of exchange rate variance. I suspect no one really knows the effect until it is upon us and it could go either way.

Lets put oil and security to the side for a moment. Numerous international agencies and programs have focused the rebuilding efforts of Iraq squarely on 3 fundamental things: the people of Iraq, the infrastructure, and the political system. It has taken extreme patience and diligence to change the structure and philosophical systematization of this country. Literally, rebuilding the Central Bank building (from bombings) and its' function as an independent body from the government....curbing rampant inflation and dollarization in the process. They are working on delivering security, electricity, clean water, sewage systems, waste disposal, road construction, port and rail improvements, rebuilding the airport, and government assistance facilities. Internet use and availability is up to around 23% I read somewhere. Cell phone communication is also up. Many young and old (non-Baathist's) are being offered secondary and university education for the first time in 50 years. Children are being taught arithmetic instead of Jihad. People are learning to express their opinions openly without the worry of being killed for doing so. They braved bombings and bullets for the right to dip their fingers in purple ink to express that opinion. In that simple fundamental act... a democracy was created.

Unemployment and poverty are rampant. Even though the infrastructure is being worked on and there is a new system for everything, many of the people are still without work. I have read that the unemployment rate is somewhere between 20%-30% depending on what article you read. So...it is clear that the country is working towards creating jobs all the while under the restriction and weight of the UNSC sanctions. Thus, how do you create jobs amongst all of the turmoil and chaos? The answer is you rebuild the environment in a way that allows jobs to be created and education to be encouraged. Figuratively, where there was sand you replace with soil. You foster an atmosphere conducive for growth. This is a culmination of all of the efforts stated above as well as improving the key cogs of oil and banking.

That brings us to the banking system that is being completely overhauled. There are lots of reasons for this, but perhaps the main reason is trust. Both in-country and abroad. Do you realize that 80% of the Dinar is in circulation, or was at least recently? That means that the majority of the citizens have not trusted the state run banks to hold their money. So they keep it under their mattress. That is IF they have any money. The banks and the CBI are trying to build confidence in the banking system. They have built up their reserves. They have decreased the UNSC debt obligations by 80% or more. They have reduced liquidity recently by 70%. They are trying to create inter-banking systems as well as intra-banking systems. This includes the introduction of ATM machines. They are bringing private, regional, and international banks in and also opening new branches on bases. They are encouraging electronic banking. They are selling bonds. They are setting up savings rates. They are setting up an environment to loan to business people and entrepreneurs. They have steadily reduced the interest rates( currently 6%) to accommodate the lending environment and that is a direct success of their ability to lower inflation to 3%. Success may be the wrong adjective to use because the people and businesses are still not embracing the low rates. Business people and economist alike cannot see the forest through the trees right now. They cannot see that the paradigm has shifted because they still have one footed planted in the Saddam era and one foot firmly planted in today's political chaos. They cannot see that the opportunity of a lifetime is right in front of them and simply requires citizens to participate in the banking system. Why is this? It is because they are not embracing it for one fundamental reason.... the risk is not worth the reward at this time. So why is that? Because the fundamental motivating reason any business person goes into business or investing is PROFIT! Although they would like to be patriotic and do it for their country whereby creating jobs for their people, it doesn't make good financial sense right now and the reason is obvious. THE IQD IS CURRENTLY WORTH 1/10TH OF ONE PENNY AND THE IQD IS NOT INTERNATIONALLY RECOGNIZED AS A CREDIBLE CURRENCY.... or at least not at this time! So... the next step is to make it profitable and worth the risk. This will happen by increasing the value of the exchange rate. A revaluation!

So while all of the Iraqi politicians and all of the world are saying the people are in poverty and we need to improve the exchange rate of the Dinar, you seem to be asking the wrong question. It is not HOW they are going to do it, but...WHEN are they going to do it? Countries revalue their currencies every single day on the international exchange to some degree. They often use the US dollar, a basket of currencies, or gold as their measuring stick. What many of us cannot seem to grasp is the magnitude of it all. We don't realize that the Iraq situation is as if Atlantis rose from the sea and said okay... here we are... time to start a country and we want to be a part of the world economy. It's like measuring the value of an IPO company for the first time. Throw out everything you know or think you know about the country. We are starting a brand new country that happens to have the 3rd largest oil and natural gas reserves of any country on the planet. Couple that with the fact that we are living in a time when the WHOLE WORLD is in recession and looking for a catalyst to jump start the world economy. In addition, you have the positioning and posturing of the big 8 countries vying to get a piece of the action. They allegedly have pallets full of dinar. They are investing lives and money for a piece of the action as well as the hope for peace in the Middle East. The IMF, World Bank, UN, amongst many others, are all guiding them through this process. They are doing it in a way that makes them think they are in control. Kind of like walking your dog on one of those retractable leashes. Your dog is out front thinking he is in complete control not knowing you are the one actually guiding him where to go with subtle yanks.

The known fact is that the people are suffering from 20 years of Saddam's reign of terror and fiscal and physical abuse. A lop will do nothing for the country except make the money more manageable (which also needs to happen). So a lop by itself won't happen in my opinion. They could lop the 3 zeroes and make the dinar illusion worth $1 US and then re-peg it to $3 making it worth three times as much as it was. That would still make our investment worth more. But... it doesn't really help the people does it. If it was worth 1/10th of a penny doesn't that only make it worth roughly 1/3rd of a penny before the lop? I fail to see how that helps anything except the nominal value of the dinar. Isn't the real focus to help the citizens and the wealth/well-being of the country?

So the HOW is a mystery. I know that it has a lot to do with fractional banking and dispersing the obligation across the world itself through countries and banks. Things above my pay grade and speculative nature. Perhaps Iraq will only be responsible for covering 15% of the money because the rest is in a constant circulation? Perhaps they start low and collect the majority of investors money and then peg it higher later making more money once it gets re-introduced to the international exchange market. In essence, investing in themselves like a corporation that buys back its own stock. Really... In my opinion you should continue to focus on the fact that the Dinar is worth less than 1/10th of a penny right now. Do you think the country with the 3rd largest oil reserves should be worth 1/10th of a penny? Egypt is worth .18 cents and Kuwait is like $3.46 and all the other recognized currencies in the Middle East seem to be somewhere in between. You throw in the GCC movement and the Euro and Yuan speculation and you have opportunity, opportunity, opportunity, in my opinion. The profit Iraq will make from outside investors once Chapter 7 is lifted will be astronomical. They have already increased tariffs and created a taxation system that will also help with the deferred costs of the revaluation.

Look... the possibility is there for our investment to flop. We could have possibly bought into the hype and might lose it all. We all realized that possibility when we first purchased the Dinar. We certainly don't need the incessant and occasional "Pop-offs" posters to remind us of things we realize but choose to ignore due to faith in our RV. Yes, It is possible that Iraq could consider making it difficult for us to cash in the dinar or exchange it for new since we are half a world away. Ali and the Dinar traders might be pulling a fast one on us in the scale of a Bernie Madoff or Enron scam. Who knows??? But... if you really think about all that has taken place to rebuild Iraq and you consider the assets and the fact that at one time it was worth over $3.... I think your gut will tell you something entirely different. I think it will tell you that something of substance is here. I choose to let the doubters be doubters because they are pessimists by nature in all aspects of their lives. Leopards don't change their spots. Doubt fills their egoical mindset just like optimism fills mine. Things that cannot be explained happen all of the time. There are forces and fields in nature we can't begin to understand. Hell, our science is based off of 17th century Newtonian philosophies if you think about it. New science suggests everything is interconnected through energy waves. Zero point energy studies suggests that there is enough energy in the square yard of space between you and I shaking hands, that if learned to tap into, could boil all of the oceans of the world. If an unknown of that proportion is possible then I say anything is possible. That which we desire can be created sometimes by just willing it so. I would like to think that my believing in this investment along with the other 10,000+ positive people on this site and the 50,000+ cumulative positive investors from the other sites might just have the ability to will this investment to fruition. Keep the faith. Sometimes faith is the glue that keeps you sane in trying times such as these. God Bless you and yours and I hope that your investment... OUR investment.... is successful for us all. The HOW will take care of itself.

Drox

[lambert]

a very well put 2 dinars worth my friend. thanks for the sound reasoning. very well put!

[sammyque]

[b]Response to the poster's question: Can anyone explain how Iraq is going to pay for the Dinar we purchased? I apologize for the length of this post.

A better question to ask is (for the doubters).... Do you think that the current value of the IQD to the US dollar is valid?

I mean... 1/10th of a penny seems a little undervalued to me. If you lop the 3 zeros off the currency itself and not the exchange rate... doesn't the value still remain 1/10th of a penny to the average Iraqi citizen? It is simply a money illusion, as the Iraqi economist Dr. Peace Smeisim puts it so eloquently...right? The Iraqi citizen thinks it is the equivalent of one US dollar but they have much less of it... so really it is the same value as far as purchasing power. In fact, it may have the inverse effect and cause inflation without some sort of exchange rate variance. I suspect no one really knows the effect until it is upon us and it could go either way.

Lets put oil and security to the side for a moment. Numerous international agencies and programs have focused the rebuilding efforts of Iraq squarely on 3 fundamental things: the people of Iraq, the infrastructure, and the political system. It has taken extreme patience and diligence to change the structure and philosophical systematization of this country. Literally, rebuilding the Central Bank building (from bombings) and its' function as an independent body from the government....curbing rampant inflation and dollarization in the process. They are working on delivering security, electricity, clean water, sewage systems, waste disposal, road construction, port and rail improvements, rebuilding the airport, and government assistance facilities. Internet use and availability is up to around 23% I read somewhere. Cell phone communication is also up. Many young and old (non-Baathist's) are being offered secondary and university education for the first time in 50 years. Children are being taught arithmetic instead of Jihad. People are learning to express their opinions openly without the worry of being killed for doing so. They braved bombings and bullets for the right to dip their fingers in purple ink to express that opinion. In that simple fundamental act... a democracy was created.

Unemployment and poverty are rampant. Even though the infrastructure is being worked on and there is a new system for everything, many of the people are still without work. I have read that the unemployment rate is somewhere between 20%-30% depending on what article you read. So...it is clear that the country is working towards creating jobs all the while under the restriction and weight of the UNSC sanctions. Thus, how do you create jobs amongst all of the turmoil and chaos? The answer is you rebuild the environment in a way that allows jobs to be created and education to be encouraged. Figuratively, where there was sand you replace with soil. You foster an atmosphere conducive for growth. This is a culmination of all of the efforts stated above as well as improving the key cogs of oil and banking.

That brings us to the banking system that is being completely overhauled. There are lots of reasons for this, but perhaps the main reason is trust. Both in-country and abroad. Do you realize that 80% of the Dinar is in circulation, or was at least recently? That means that the majority of the citizens have not trusted the state run banks to hold their money. So they keep it under their mattress. That is IF they have any money. The banks and the CBI are trying to build confidence in the banking system. They have built up their reserves. They have decreased the UNSC debt obligations by 80% or more. They have reduced liquidity recently by 70%. They are trying to create inter-banking systems as well as intra-banking systems. This includes the introduction of ATM machines. They are bringing private, regional, and international banks in and also opening new branches on bases. They are encouraging electronic banking. They are selling bonds. They are setting up savings rates. They are setting up an environment to loan to business people and entrepreneurs. They have steadily reduced the interest rates( currently 6%) to accommodate the lending environment and that is a direct success of their ability to lower inflation to 3%. Success may be the wrong adjective to use because the people and businesses are still not embracing the low rates. Business people and economist alike cannot see the forest through the trees right now. They cannot see that the paradigm has shifted because they still have one footed planted in the Saddam era and one foot firmly planted in today's political chaos. They cannot see that the opportunity of a lifetime is right in front of them and simply requires citizens to participate in the banking system. Why is this? It is because they are not embracing it for one fundamental reason.... the risk is not worth the reward at this time. So why is that? Because the fundamental motivating reason any business person goes into business or investing is PROFIT! Although they would like to be patriotic and do it for their country whereby creating jobs for their people, it doesn't make good financial sense right now and the reason is obvious. THE IQD IS CURRENTLY WORTH 1/10TH OF ONE PENNY AND THE IQD IS NOT INTERNATIONALLY RECOGNIZED AS A CREDIBLE CURRENCY.... or at least not at this time! So... the next step is to make it profitable and worth the risk. This will happen by increasing the value of the exchange rate. A revaluation!

So while all of the Iraqi politicians and all of the world are saying the people are in poverty and we need to improve the exchange rate of the Dinar, you seem to be asking the wrong question. It is not HOW they are going to do it, but...WHEN are they going to do it? Countries revalue their currencies every single day on the international exchange to some degree. They often use the US dollar, a basket of currencies, or gold as their measuring stick. What many of us cannot seem to grasp is the magnitude of it all. We don't realize that the Iraq situation is as if Atlantis rose from the sea and said okay... here we are... time to start a country and we want to be a part of the world economy. It's like measuring the value of an IPO company for the first time. Throw out everything you know or think you know about the country. We are starting a brand new country that happens to have the 3rd largest oil and natural gas reserves of any country on the planet. Couple that with the fact that we are living in a time when the WHOLE WORLD is in recession and looking for a catalyst to jump start the world economy. In addition, you have the positioning and posturing of the big 8 countries vying to get a piece of the action. They allegedly have pallets full of dinar. They are investing lives and money for a piece of the action as well as the hope for peace in the Middle East. The IMF, World Bank, UN, amongst many others, are all guiding them through this process. They are doing it in a way that makes them think they are in control. Kind of like walking your dog on one of those retractable leashes. Your dog is out front thinking he is in complete control not knowing you are the one actually guiding him where to go with subtle yanks.

The known fact is that the people are suffering from 20 years of Saddam's reign of terror and fiscal and physical abuse. A lop will do nothing for the country except make the money more manageable (which also needs to happen). So a lop by itself won't happen in my opinion. They could lop the 3 zeroes and make the dinar illusion worth $1 US and then re-peg it to $3 making it worth three times as much as it was. That would still make our investment worth more. But... it doesn't really help the people does it. If it was worth 1/10th of a penny doesn't that only make it worth roughly 1/3rd of a penny before the lop? I fail to see how that helps anything except the nominal value of the dinar. Isn't the real focus to help the citizens and the wealth/well-being of the country?

So the HOW is a mystery. I know that it has a lot to do with fractional banking and dispersing the obligation across the world itself through countries and banks. Things above my pay grade and speculative nature. Perhaps Iraq will only be responsible for covering 15% of the money because the rest is in a constant circulation? Perhaps they start low and collect the majority of investors money and then peg it higher later making more money once it gets re-introduced to the international exchange market. In essence, investing in themselves like a corporation that buys back its own stock. Really... In my opinion you should continue to focus on the fact that the Dinar is worth less than 1/10th of a penny right now. Do you think the country with the 3rd largest oil reserves should be worth 1/10th of a penny? Egypt is worth .18 cents and Kuwait is like $3.46 and all the other recognized currencies in the Middle East seem to be somewhere in between. You throw in the GCC movement and the Euro and Yuan speculation and you have opportunity, opportunity, opportunity, in my opinion. The profit Iraq will make from outside investors once Chapter 7 is lifted will be astronomical. They have already increased tariffs and created a taxation system that will also help with the deferred costs of the revaluation.

Look... the possibility is there for our investment to flop. We could have possibly bought into the hype and might lose it all. We all realized that possibility when we first purchased the Dinar. We certainly don't need the incessant and occasional "Pop-offs" posters to remind us of things we realize but choose to ignore due to faith in our RV. Yes, It is possible that Iraq could consider making it difficult for us to cash in the dinar or exchange it for new since we are half a world away. Ali and the Dinar traders might be pulling a fast one on us in the scale of a Bernie Madoff or Enron scam. Who knows??? But... if you really think about all that has taken place to rebuild Iraq and you consider the assets and the fact that at one time it was worth over $3.... I think your gut will tell you something entirely different. I think it will tell you that something of substance is here. I choose to let the doubters be doubters because they are pessimists by nature in all aspects of their lives. Leopards don't change their spots. Doubt fills their egoical mindset just like optimism fills mine. Things that cannot be explained happen all of the time. There are forces and fields in nature we can't begin to understand. Hell, our science is based off of 17th century Newtonian philosophies if you think about it. New science suggests everything is interconnected through energy waves. Zero point energy studies suggests that there is enough energy in the square yard of space between you and I shaking hands, that if learned to tap into, could boil all of the oceans of the world. If an unknown of that proportion is possible then I say anything is possible. That which we desire can be created sometimes by just willing it so. I would like to think that my believing in this investment along with the other 10,000+ positive people on this site and the 50,000+ cumulative positive investors from the other sites might just have the ability to will this investment to fruition. Keep the faith. Sometimes faith is the glue that keeps you sane in trying times such as these. God Bless you and yours and I hope that your investment... OUR investment.... is successful for us all. The HOW will take care of itself.

Drox

drox......wonderfully and beautifully put....thank you

[pourit]

Well...let's see. According to the news the US is 13 TRILLION in debt. (I believe it to be 64 TRILLION). Our debt is backed by ZERO...no gold...nothing. Iraq on the other hand has had the majority of it's debt forgiven...and is backed by billions in oil. Now I know we have a President ( even though he is probably not an American citizen) and a corrupt government (congress) but Iraq will have one too shortly. You tell me who should have the strongest dollar. To me, it looks like Iraq wins. WHoooooooooooo this is scary.

[Trimark]

Excellent post Drox.

Edited June 13, 2010 by Trimark

[ReachingHigher]

Drox!

Bravo! Nail-on-the-head if you ask me!

Peace! and thanks so very much!

"New science suggests everything is interconnected through energy waves. Zero point energy studies suggests that there is enough energy in the square yard of space between you and I shaking hands, that if learned to tap into, could boil all of the oceans of the world. If an unknown of that proportion is possible then I say anything is possible. That which we desire can be created sometimes by just willing it so. I would like to think that my believing in this investment along with the other 10,000+ positive people on this site and the 50,000+ cumulative positive investors from the other sites might just have the ability to will this investment to fruition. Keep the faith. Sometimes faith is the glue that keeps you sane in trying times such as these. God Bless you and yours and I hope that your investment... OUR investment.... is successful for us all. The HOW will take care of itself."

[CDEW]

Nice post Drox!!

I admit it took me awhile to put myself in that Dinar happy place.

I'm sure some of you remember when i first came here I questioned EVERYTHING and believed NOTHING.

But over a couple months and ALOT of reading I BELIEVE we have positioned ourselves to be a part of something special, the birth of a nation.

I also over this time have learned to ignore the skepticism and take it for what it is worth.

I have not invested more than I can afford to lose and have learned to enjoy the ride rather than beat myself up over it.

I believe there is something of substance here as well.

Hope for the best, expect the worst, and when something in the middle happens then celebrate!!

[lil red]

thanks makes sence

[pefain01]

That is probably one of the best posts I have read since learning about the dinar. Thank you for putting it in such an eloquent and uplifting way!!!

[automag]

Excellent post drox. Well said. It is obvious you are doing your homework and I appreciate the post. You are absolutely correct that stranger things have happened and there are many instances where wealth was created where no wealth had ever existed and this investment is likely one of them. It can happen and we who believe just don't believe in wishes. We research and study and study and research.

I like our chances. You my friend have done yourself justice with this uplifting post. Thank you for you insight and opinion. Your effort was uncommon and you should be commended for that effort. Thank you again.

[Traconesu02]

Quite a post drox - Definitely something for the doubters to read - and I would say worth a bit more than just 2 dinar.

Thanks for posting.

[madmanak47]

Very articulate on your part very well written, I commend you. Although I have only recently joined you all I have monitored this site for a while. I have been somewhere in the Middle East for the better part of five years. I have never quite understood any of this until today after reading your narrative.

Thanks the Madman

[Jac]

Excellent post Drox. Now is the time to harness that energy and move that mountain blocking the RV.

An amazing teacher once said these words:

"Believe me, if you trust and do not falter, not only will you do what I did to the fig tree, but if you say to this mountain, 'Be lifted up and thrown into the sea,' even that will happen. You will receive all that you pray for, provided you have faith."

Faith is just not believing. It is more then that it is the knowledge that we are created with an energy that manifests FAITH. Energy interacting with more energy. Each element upon the planet vibrates to an energy level whether it be a rock, plant, animal or paper. Of which money is created so it will hold true that money is just one more energy. What I suggest is a complete interaction with all of your God given energy including money energy or for example the Iraqi Dinar. Or even those who hold the Revalue in the balance. There is strength in numbers. Collectively there are in fact 500,00 Dinar holders in the United States alone. Imagine all thta energy and all the energy contained in their Dinar. Take it to the next level. Forget the politic; forget the delays; forget the reason for the delays. Do not empower the delays by giving them thought. Instead remember God gave you the Faith (energy) to shove your Dinar under your arm, run right through all the interference and obstacles of the other team and take the Iraqi Dinar to the goal and score your Dinar RV Touchdown. You can make it happen if you just try. Pick up that mountain of interference and throw it in the see just as the Master Jesus, The Christ said you can do. FAITH!

Blessings all.

[retminded]

Thank you drox for the wonderful post; both inspiring and motivational.

ret

[Rhnda]

Yes, I think it is valid. How did it get there? Probably the last two decades of inflation after the sanctions. It doesn't matter that the inflation rate is low now, Iraq has been hit hard over the last 20 years by inflation.

How do you combat a couple of decades of inflation? From what I learned here, you declare that your currency has increased in value 116,400%! Woopie for us. While we're at it, we might as well revalue at $3/dinar for a 316,400% increase. Why not?

All of the anonymous gurus couldn't be trying to make a buck off of us.

Duh!!! Good post.

[melron77]

My apologies to all. I did not know that me asking a sincere question meant I'm negative, a doubter etc. As for as having faith, I've seen Gods work and I firmly believe that anything, and I mean anyhting is possible. Bottom line is it's up to Yahweh. Peace to all.

[zantac]

Yeah great post it was worth more than 2 dinars though, tell you what i have a 50 got any change

I guess not so i will pay you when the new denoms come in to play

[bodeen]

Yeah great post it was worth more than 2 dinars though, tell you what i have a 50 got any change

I guess not so i will pay you when the new denoms come in to play

[Kimjackie]

[b]Response to the poster's question: Can anyone explain how Iraq is going to pay for the Dinar we purchased? I apologize for the length of this post.

A better question to ask is (for the doubters).... Do you think that the current value of the IQD to the US dollar is valid?

I mean... 1/10th of a penny seems a little undervalued to me. If you lop the 3 zeros off the currency itself and not the exchange rate... doesn't the value still remain 1/10th of a penny to the average Iraqi citizen? It is simply a money illusion, as the Iraqi economist Dr. Peace Smeisim puts it so eloquently...right? The Iraqi citizen thinks it is the equivalent of one US dollar but they have much less of it... so really it is the same value as far as purchasing power. In fact, it may have the inverse effect and cause inflation without some sort of exchange rate variance. I suspect no one really knows the effect until it is upon us and it could go either way.

Lets put oil and security to the side for a moment. Numerous international agencies and programs have focused the rebuilding efforts of Iraq squarely on 3 fundamental things: the people of Iraq, the infrastructure, and the political system. It has taken extreme patience and diligence to change the structure and philosophical systematization of this country. Literally, rebuilding the Central Bank building (from bombings) and its' function as an independent body from the government....curbing rampant inflation and dollarization in the process. They are working on delivering security, electricity, clean water, sewage systems, waste disposal, road construction, port and rail improvements, rebuilding the airport, and government assistance facilities. Internet use and availability is up to around 23% I read somewhere. Cell phone communication is also up. Many young and old (non-Baathist's) are being offered secondary and university education for the first time in 50 years. Children are being taught arithmetic instead of Jihad. People are learning to express their opinions openly without the worry of being killed for doing so. They braved bombings and bullets for the right to dip their fingers in purple ink to express that opinion. In that simple fundamental act... a democracy was created.

Unemployment and poverty are rampant. Even though the infrastructure is being worked on and there is a new system for everything, many of the people are still without work. I have read that the unemployment rate is somewhere between 20%-30% depending on what article you read. So...it is clear that the country is working towards creating jobs all the while under the restriction and weight of the UNSC sanctions. Thus, how do you create jobs amongst all of the turmoil and chaos? The answer is you rebuild the environment in a way that allows jobs to be created and education to be encouraged. Figuratively, where there was sand you replace with soil. You foster an atmosphere conducive for growth. This is a culmination of all of the efforts stated above as well as improving the key cogs of oil and banking.

That brings us to the banking system that is being completely overhauled. There are lots of reasons for this, but perhaps the main reason is trust. Both in-country and abroad. Do you realize that 80% of the Dinar is in circulation, or was at least recently? That means that the majority of the citizens have not trusted the state run banks to hold their money. So they keep it under their mattress. That is IF they have any money. The banks and the CBI are trying to build confidence in the banking system. They have built up their reserves. They have decreased the UNSC debt obligations by 80% or more. They have reduced liquidity recently by 70%. They are trying to create inter-banking systems as well as intra-banking systems. This includes the introduction of ATM machines. They are bringing private, regional, and international banks in and also opening new branches on bases. They are encouraging electronic banking. They are selling bonds. They are setting up savings rates. They are setting up an environment to loan to business people and entrepreneurs. They have steadily reduced the interest rates( currently 6%) to accommodate the lending environment and that is a direct success of their ability to lower inflation to 3%. Success may be the wrong adjective to use because the people and businesses are still not embracing the low rates. Business people and economist alike cannot see the forest through the trees right now. They cannot see that the paradigm has shifted because they still have one footed planted in the Saddam era and one foot firmly planted in today's political chaos. They cannot see that the opportunity of a lifetime is right in front of them and simply requires citizens to participate in the banking system. Why is this? It is because they are not embracing it for one fundamental reason.... the risk is not worth the reward at this time. So why is that? Because the fundamental motivating reason any business person goes into business or investing is PROFIT! Although they would like to be patriotic and do it for their country whereby creating jobs for their people, it doesn't make good financial sense right now and the reason is obvious. THE IQD IS CURRENTLY WORTH 1/10TH OF ONE PENNY AND THE IQD IS NOT INTERNATIONALLY RECOGNIZED AS A CREDIBLE CURRENCY.... or at least not at this time! So... the next step is to make it profitable and worth the risk. This will happen by increasing the value of the exchange rate. A revaluation!

So while all of the Iraqi politicians and all of the world are saying the people are in poverty and we need to improve the exchange rate of the Dinar, you seem to be asking the wrong question. It is not HOW they are going to do it, but...WHEN are they going to do it? Countries revalue their currencies every single day on the international exchange to some degree. They often use the US dollar, a basket of currencies, or gold as their measuring stick. What many of us cannot seem to grasp is the magnitude of it all. We don't realize that the Iraq situation is as if Atlantis rose from the sea and said okay... here we are... time to start a country and we want to be a part of the world economy. It's like measuring the value of an IPO company for the first time. Throw out everything you know or think you know about the country. We are starting a brand new country that happens to have the 3rd largest oil and natural gas reserves of any country on the planet. Couple that with the fact that we are living in a time when the WHOLE WORLD is in recession and looking for a catalyst to jump start the world economy. In addition, you have the positioning and posturing of the big 8 countries vying to get a piece of the action. They allegedly have pallets full of dinar. They are investing lives and money for a piece of the action as well as the hope for peace in the Middle East. The IMF, World Bank, UN, amongst many others, are all guiding them through this process. They are doing it in a way that makes them think they are in control. Kind of like walking your dog on one of those retractable leashes. Your dog is out front thinking he is in complete control not knowing you are the one actually guiding him where to go with subtle yanks.

The known fact is that the people are suffering from 20 years of Saddam's reign of terror and fiscal and physical abuse. A lop will do nothing for the country except make the money more manageable (which also needs to happen). So a lop by itself won't happen in my opinion. They could lop the 3 zeroes and make the dinar illusion worth $1 US and then re-peg it to $3 making it worth three times as much as it was. That would still make our investment worth more. But... it doesn't really help the people does it. If it was worth 1/10th of a penny doesn't that only make it worth roughly 1/3rd of a penny before the lop? I fail to see how that helps anything except the nominal value of the dinar. Isn't the real focus to help the citizens and the wealth/well-being of the country?

So the HOW is a mystery. I know that it has a lot to do with fractional banking and dispersing the obligation across the world itself through countries and banks. Things above my pay grade and speculative nature. Perhaps Iraq will only be responsible for covering 15% of the money because the rest is in a constant circulation? Perhaps they start low and collect the majority of investors money and then peg it higher later making more money once it gets re-introduced to the international exchange market. In essence, investing in themselves like a corporation that buys back its own stock. Really... In my opinion you should continue to focus on the fact that the Dinar is worth less than 1/10th of a penny right now. Do you think the country with the 3rd largest oil reserves should be worth 1/10th of a penny? Egypt is worth .18 cents and Kuwait is like $3.46 and all the other recognized currencies in the Middle East seem to be somewhere in between. You throw in the GCC movement and the Euro and Yuan speculation and you have opportunity, opportunity, opportunity, in my opinion. The profit Iraq will make from outside investors once Chapter 7 is lifted will be astronomical. They have already increased tariffs and created a taxation system that will also help with the deferred costs of the revaluation.

Look... the possibility is there for our investment to flop. We could have possibly bought into the hype and might lose it all. We all realized that possibility when we first purchased the Dinar. We certainly don't need the incessant and occasional "Pop-offs" posters to remind us of things we realize but choose to ignore due to faith in our RV. Yes, It is possible that Iraq could consider making it difficult for us to cash in the dinar or exchange it for new since we are half a world away. Ali and the Dinar traders might be pulling a fast one on us in the scale of a Bernie Madoff or Enron scam. Who knows??? But... if you really think about all that has taken place to rebuild Iraq and you consider the assets and the fact that at one time it was worth over $3.... I think your gut will tell you something entirely different. I think it will tell you that something of substance is here. I choose to let the doubters be doubters because they are pessimists by nature in all aspects of their lives. Leopards don't change their spots. Doubt fills their egoical mindset just like optimism fills mine. Things that cannot be explained happen all of the time. There are forces and fields in nature we can't begin to understand. Hell, our science is based off of 17th century Newtonian philosophies if you think about it. New science suggests everything is interconnected through energy waves. Zero point energy studies suggests that there is enough energy in the square yard of space between you and I shaking hands, that if learned to tap into, could boil all of the oceans of the world. If an unknown of that proportion is possible then I say anything is possible. That which we desire can be created sometimes by just willing it so. I would like to think that my believing in this investment along with the other 10,000+ positive people on this site and the 50,000+ cumulative positive investors from the other sites might just have the ability to will this investment to fruition. Keep the faith. Sometimes faith is the glue that keeps you sane in trying times such as these. God Bless you and yours and I hope that your investment... OUR investment.... is successful for us all. The HOW will take care of itself.

Drox

I LIKE , I LIKE, I LIKE

[drox]

My apologies to all. I did not know that me asking a sincere question meant I'm negative, a doubter etc. As for as having faith, I've seen Gods work and I firmly believe that anything, and I mean anyhting is possible. Bottom line is it's up to Yahweh. Peace to all.

My apologies to you... I meant to put in there I was not suggesting you were negative at all but I got too long winded and forgot. You were asking a simple and relevant question. Their have been some very negative posts recently pointing out that we are fools and stupid for investing in this. I am simply pointing out that there are many variables to consider and that our idea of a revaluation is one possible scenario. I used your question as a platform for discussion and was not meant to infer you as negative. Thanks.

Jac... that was awesome... thank you!

Rhnda... thanks for keeping your post to 3 words... very much appreciated by all!

Dustin Hayes... Our opinions differ and I respect yours. Thanks for delivering it in an alternative/debating and pleasant way and not by attack. Respectfully, I hope you are wrong. I am sure you hope you are too!

To the rest thanks for the kind words!

[wbuse984]

Drox,

Awesome post...as others have said it is for sure more than 2 dinars worth...our investment is a risk, but as with all things, nothing ventured nothing gained...thanks again for the uplifting post...

Blessings...

[CDEW]

Duh!!! Good post.

Still with the alter ego?

I thought you decided it had run it's course?

[Bobbydee]

Definately a well put and informative post. There is no doubt in my mind that this investment will pan out. The when is questionble and it won't be until Irag is ready. There is no doubt that Miliki could have done a better job reconstructing the country and providing the simple necessaties for the citizens. This is about them and not us. God Bless Semper Fi

[lgraham]

Drox,

Such a great post. Thanks for your optomistic thoughts. May I add to your positive conclusions. When the sanctions are finally lifted. All the money from D.F.I., oil-for-food and frozen assests will be returned to Iraq. This will be 500 billion or more dollars. How can anyone believe that this will not affect the future value of the dinar? It just is not possible. The ministry of planning revealed last week that from 2010 to 2014, 680 billion dollars will be invested in the reconstruction of Iraq. This does not take into account all the trade agreements made with Turkey,France Russia,China et.al. The value of the dinar is going up. We don't know how high. We don't know when. But, please all of you naysayers....please explain how all this money and investment can occur without positive improvement of the dinar. It can't!!!!! Now maybe we are wrong about how high we think it will go....But we are not wrong about the value increasing.

Thank you Drox,

Lgraham

[EmilyJJJ]

This is one of the best postings I have ever read. Thank you for the insight and the explanation.