Rafidain Bank gives 300 thousand dinars "bonuses" to employees

[10 YEARS LATER]

3 hours ago, Theseus said:

Before Carl Jr. there was Lynyrd:

 

What were we talking about ? I got sidetracked for 4 minutes and 39 seconds. 

[SnowGlobe7]

Your welcome 

[Theseus]

On 9/13/2016 at 7:52 AM, coorslite21 said:

Great thread.......My best guess would be that this helps support the idea of a lower value such as 10 cents or lower when the value of the IQD is adjusted.  One to One would leave any of those who received it, with 300 Grand..........which in Iraq has far more value than in the US......the bank could lose all of these employees......which would be kind of pointless...JMT's.

Let me ask you this, if a gallon of milk in Philadelphia costs 1.59 USD today and the dollar falls to 95 cents at 3:59PM, does the price of the gallon of milk also go down at the time you purchase it at noon the next day? No it stays at 1.59 USD. Therein lies the rub. If the IQD Rvs for 10 cents today and an Iraqi citizen holds onto his currency as it floats up, would he still not have 300 Grand when it reaches that point? So whether or not the IQD starts out at 10 cents and floats up as many with the 10 cent theory speculate it will do, the Iraqi still has a chance at 300 grand or more if he holds onto any extra currency. Per your theory. If the dollar rises to 1.05 or more and it has in the past, do you hold a dollar in the US or do you hold 1.05? In the US you only hold a dollar, not 1.05. If you were to ask for change from a dollar at the bank, they would give you 100 pennies or 4 quarters or 10 dimes or 20 nickels or any combination to equal 1 dollar which is equal to 100 cents.  If you were to exchange it to a foreign tender then and only then would you reap the benefit of the rise in the dollar. The Iraqi holding IQD would not immediately hold 300 grand or any other amount other than what he holds at that moment in Iraq. So if he received 30,000 IQD as salary before the RV, he would still get 30,000 IQD after the RV. Only when he chooses to exchange it does the value come into it. The Euro fell below the dollar then rose above the dollar, how many people went to Europe to buy Euro? It's the same for the common citizen in Iraq. How many of you went to Kuwait to exchange what ever the Kuwait currency was for dollars? You don't because you are busy with your personal lives. The value of the IQD only affects the common Iraqi by what is imported into the country for. The cost for goods could be lower to the common Iraqi, eventually as we will see.

Take the dollar as an example, when the dollar rises prices follow but when they follow they do not change immediately. So no matter what the IQD RVs to 10 cents, 1.16 or 3.41, the Iraqi will still only hold the number of IQD they have in their hands (or wherever they stashed their currency) at the moment of RV. Only when there is an exchange tender for goods and services in another currency outside of Iraq does the value of the pair matter. This is their "purchasing power" and the reasoning behind the dedollarization. However, if Iraq were to dedollarize, making the dollar illegal inside of Iraq, what makes you think there won't be a mass exodus outside of Iraq to exchange the IQD for the dollar or even Euro? This concept is why dedollarization may not work at all other than to force everyday Iraqis to change their monetary habits. That would be the only reason. The sad note is, if the IQD were to RV too high in the beginning, this could cause prices to skyrocket in Iraq following the RV.

If price changes immediately due to the RV, this is called price gouging. Price gouging is illegal in the USA and their have been recent occurrances of this in the USA by gas stations usually following a hurricane. The last time I know of this happening in the extreme was in Georgia and South Carolina. Something like this happens with your local gas station everyday but Americans are used to it so they don't think twice about it. I once stopped and asked why the current  town I live in has the highest prices this side of the Mississippi save New York. They guy told me it was because of price of the barrel of oil went up. I told him that was a speculated future price, if you bought the oil when the last contract ended and it was much lower, the gasoline in your station's tanks didn't cost you the cost per barrel in today's price when it was paid for last week. He walked away. If other companies did that for their goods and services, people would have a hissy fit all over this nation.  When the price of oil per barrel falls, it is a much slower for gas stations to follow suit but they are much quicker to jump the price when the price per barrel rises. Some would say this has to do with refining, but only to a point. For example when refineries switch seasonal blends a short price increase or decrease is merited as the initial cost must be absorbed by the consumer. Or when refineries must go down for maintenance. The USA hasn't built a newer refinery in so long its down right deplorable. 

So please the Iraqi holding 25,000 IQD is still going to be holding 25,000 IQD when it RVs. The common citizen won't really feel or notice a difference at the time of the RV. Economies are like trying to roll a boulder up hill. They are slow to climb but once they get momentum on the other side they will cruise until they hit the valley and go up the next hill. Sometimes our governments get in the way and slow the boulder down.     

[Jaygo]

5 minutes ago, Theseus said:

Let me ask you this, if a gallon of milk in Philadelphia costs 1.59 USD today and the dollar falls to 95 cents at 3:59PM, does the price of the gallon of milk also go down at the time you purchase it at noon the next day? No it stays at 1.59 USD. Therein lies the rub. If the IQD Rvs for 10 cents today and an Iraqi citizen holds onto his currency as it floats up, would he still not have 300 Grand when it reaches that point? So whether or not the IQD starts out at 10 cents and floats up as many with the 10 cent theory speculate it will do, the Iraqi still has a chance at 300 grand or more if he holds onto any extra currency. Per your theory. If the dollar rises to 1.05 or more and it has in the past, do you hold a dollar in the US or do you hold 1.05? In the US you only hold a dollar, not 1.05. If you were to ask for change from a dollar at the bank, they would give you 100 pennies or 4 quarters or 10 dimes or 20 nickels or any combination to equal 1 dollar which is equal to 100 cents.  If you were to exchange it to a foreign tender then and only then would you reap the benefit of the rise in the dollar. The Iraqi holding IQD would not immediately hold 300 grand or any other amount other than what he holds at that moment in Iraq. So if he received 30,000 IQD as salary before the RV, he would still get 30,000 IQD after the RV. Only when he chooses to exchange it does the value come into it. The Euro fell below the dollar then rose above the dollar, how many people went to Europe to buy Euro? It's the same for the common citizen in Iraq. How many of you went to Kuwait to exchange what ever the Kuwait currency was for dollars? You don't because you are busy with your personal lives. The value of the IQD only affects the common Iraqi by what is imported into the country for. The cost for goods could be lower to the common Iraqi, eventually as we will see.

Take the dollar as an example, when the dollar rises prices follow but when they follow they do not change immediately. So no matter what the IQD RVs to 10 cents, 1.16 or 3.41, the Iraqi will still only hold the number of IQD they have in their hands (or wherever they stashed their currency) at the moment of RV. Only when there is an exchange tender for goods and services in another currency outside of Iraq does the value of the pair matter. This is their "purchasing power" and the reasoning behind the dedollarization. However, if Iraq were to dedollarize, making the dollar illegal inside of Iraq, what makes you think there won't be a mass exodus outside of Iraq to exchange the IQD for the dollar or even Euro? This concept is why dedollarization may not work at all other than to force everyday Iraqis to change their monetary habits. That would be the only reason. The sad note is, if the IQD were to RV too high in the beginning, this could cause prices to skyrocket in Iraq following the RV.

If price changes immediately due to the RV, this is called price gouging. Price gouging is illegal in the USA and their have been recent occurrances of this in the USA by gas stations usually following a hurricane. The last time I know of this happening in the extreme was in Georgia and South Carolina. Something like this happens with your local gas station everyday but Americans are used to it so they don't think twice about it. I once stopped and asked why the current  town I live in has the highest prices this side of the Mississippi save New York. They guy told me it was because of price of the barrel of oil went up. I told him that was a speculated future price, if you bought the oil when the last contract ended and it was much lower, the gasoline in your station's tanks didn't cost you the cost per barrel in today's price when it was paid for last week. He walked away. If other companies did that for their goods and services, people would have a hissy fit all over this nation.  When the price of oil per barrel falls, it is a much slower for gas stations to follow suit but they are much quicker to jump the price when the price per barrel rises. Some would say this has to do with refining, but only to a point. For example when refineries switch seasonal blends a short price increase or decrease is merited as the initial cost must be absorbed by the consumer. Or when refineries must go down for maintenance. The USA hasn't built a newer refinery in so long its down right deplorable. 

So please the Iraqi holding 25,000 IQD is still going to be holding 25,000 IQD when it RVs. The common citizen won't really feel or notice a difference at the time of the RV. Economies are like trying to roll a boulder up hill. They are slow to climb but once they get momentum on the other side they will cruise until they hit the valley and go up the next hill. Sometimes our governments get in the way and slow the boulder down.     

Way to much typing.. I cant read that many words in a row. 

[Theseus]

16 minutes ago, Jaygo said:

Way to much typing.. I cant read that many words in a row. 

I don't have an illustrated version that might be better suited to you. 

But here I will condense it into a nutshell, if the RV happens today and an Iraqi gets 30,000 IQD as salary. They will still have 30,000 IQD as salary after the RV not 300 grand.

Edited September 18, 2016 by Theseus

[Jaygo]

6 hours ago, Theseus said:

I don't have an illustrated version that might be better suited to you. 

But here I will condense it into a nutshell, if the RV happens today and an Iraqi gets 30,000 IQD as salary. They will still have 30,000 IQD as salary after the RV not 300 grand.

I got it.. Just giving you a hard time. 

[coorslite21]

7 hours ago, Theseus said:

Let me ask you this, if a gallon of milk in Philadelphia costs 1.59 USD today and the dollar falls to 95 cents at 3:59PM, does the price of the gallon of milk also go down at the time you purchase it at noon the next day? No it stays at 1.59 USD. Therein lies the rub.

 

If the IQD Rvs for 10 cents today and an Iraqi citizen holds onto his currency as it floats up, would he still not have 300 Grand when it reaches that point? So whether or not the IQD starts out at 10 cents and floats up as many with the 10 cent theory speculate it will do, the Iraqi still has a chance at 300 grand or more if he holds onto any extra currency.

 

Per your theory. If the dollar rises to 1.05 or more and it has in the past, do you hold a dollar in the US or do you hold 1.05?

 

In the US you only hold a dollar, not 1.05. If you were to ask for change from a dollar at the bank, they would give you 100 pennies or 4 quarters or 10 dimes or 20 nickels or any combination to equal 1 dollar which is equal to 100 cents.  

 

If you were to exchange it to a foreign tender then and only then would you reap the benefit of the rise in the dollar.

 

The Iraqi holding IQD would not immediately hold 300 grand or any other amount other than what he holds at that moment in Iraq. So if he received 30,000 IQD as salary before the RV, he would still get 30,000 IQD after the RV. Only when he chooses to exchange it does the value come into it.

 

The Euro fell below the dollar then rose above the dollar, how many people went to Europe to buy Euro? It's the same for the common citizen in Iraq. How many of you went to Kuwait to exchange what ever the Kuwait currency was for dollars? You don't because you are busy with your personal lives.

 

The value of the IQD only affects the common Iraqi by what is imported into the country for. The cost for goods could be lower to the common Iraqi, eventually as we will see.

 

Take the dollar as an example, when the dollar rises prices follow but when they follow they do not change immediately. So no matter what the IQD RVs to 10 cents, 1.16 or 3.41, the Iraqi will still only hold the number of IQD they have in their hands (or wherever they stashed their currency) at the moment of RV.

 

Only when there is an exchange tender for goods and services in another currency outside of Iraq does the value of the pair matter. This is their "purchasing power" and the reasoning behind the dedollarization. However, if Iraq were to dedollarize, making the dollar illegal inside of Iraq, what makes you think there won't be a mass exodus outside of Iraq to exchange the IQD for the dollar or even Euro? This concept is why dedollarization may not work at all other than to force everyday Iraqis to change their monetary habits.

 

That would be the only reason. The sad note is, if the IQD were to RV too high in the beginning, this could cause prices to skyrocket in Iraq following the RV.

 

If price changes immediately due to the RV, this is called price gouging. Price gouging is illegal in the USA and their have been recent occurrances of this in the USA by gas stations usually following a hurricane. The last time I know of this happening in the extreme was in Georgia and South Carolina. Something like this happens with your local gas station everyday but Americans are used to it so they don't think twice about it. I once stopped and asked why the current  town I live in has the highest prices this side of the Mississippi save New York. They guy told me it was because of price of the barrel of oil went up. I told him that was a speculated future price, if you bought the oil when the last contract ended and it was much lower, the gasoline in your station's tanks didn't cost you the cost per barrel in today's price when it was paid for last week. He walked away. If other companies did that for their goods and services, people would have a hissy fit all over this nation.  When the price of oil per barrel falls, it is a much slower for gas stations to follow suit but they are much quicker to jump the price when the price per barrel rises. Some would say this has to do with refining, but only to a point. For example when refineries switch seasonal blends a short price increase or decrease is merited as the initial cost must be absorbed by the consumer. Or when refineries must go down for maintenance. The USA hasn't built a newer refinery in so long its down right deplorable.

 

So please the Iraqi holding 25,000 IQD is still going to be holding 25,000 IQD when it RVs. The common citizen won't really feel or notice a difference at the time of the RV.

 

Economies are like trying to roll a boulder up hill. They are slow to climb but once they get momentum on the other side they will cruise until they hit the valley and go up the next hill. Sometimes our governments get in the way and slow the boulder down.     

I appreciate your post and the depth of it.......I broke it up so others might comment on it......A busy day today for me as I am already into my Monday schedule......I will comment on your many thoughts a bit later.....a Dinar will always be a dinar in Iraq, just like a USD will always be that in the US........The exchange rate for currencies internationally is what will be different.......busy time in my life........be patient.....I will address your questions......

[coorslite21]

On 9/14/2016 at 4:48 PM, 10 YEARS LATER said:

What were we talking about ? I got sidetracked for 4 minutes and 39 seconds. 

Pretty funny!

[DoD]

Jaygo, take the time to read the post from Theseus, he is right on the money an dumbs it down real simple for us slow folks. A Dinar will always be a Dinar until you exchange if for another currency. That's when the rate comes into play, an I hope to exchange one of my Dinars to one (1) US dollar. The average Iraqi going about his daliy shopping will not notice any difference besides not having to carry around so many Dinar notes, after the introduction of the lower notes of course....

[Roadrunner]

On 9/12/2016 at 9:56 AM, Theseus said:

Average rent for a 3 bedroom apartment inside the the city is approximately $832.72 the bonus is 30.53% of one month's rent.

Average rent for a 3 bedroom apartment outside the city is approximately 559.70; the bonus is 45.42% of one month's rent. 

That is 30 to 45 percent of rent they don't have to worry about for one month. Considering rent accounts for 23.6% of their monthly expenses (second highest category in their monthly expenses).

Wow, I am not sure which city or what side of town you are quoting. I paid about $85.00 a month in Tikrit for two bedrooms and considerably less than that in Balad Ruz and in Mandali.

 

Roadrunner

[SnowGlobe7]

maybe when is the difference on the two prices?

[Theseus]

On 9/18/2016 at 11:22 PM, Roadrunner said:

Wow, I am not sure which city or what side of town you are quoting. I paid about $85.00 a month in Tikrit for two bedrooms and considerably less than that in Balad Ruz and in Mandali.

 

Roadrunner

The price comes from the average of all towns in Iraq. Notice I do not mention which city as you have mentioned a specific city. YMMV. If the price is unreasonably high, an outlier could be the cause. As I scraped the information off a cost of living comparison website I cannot verify the accuracy of the numbers since the website relies on the input from its users to obtain its costs. It's an overall guide as per the cost of living and most of the users that participate try to keep the numbers accurate. In the past I have found it reasonably accurate for cities within the USA. If you found a lower price that's great! If you found a higher price, you are SOL. If you found a price in between, well good on ya!