Where's the money going to come from???/

[rockfl9 140]

Currency exchanges are an even money deal.  One traders gain is another's LOSS. SO WHO will buy a dinar for a dollar?  Banks don't buy and hold foreign currencies , They broker it for third parties. The ultimate customer would/should be the CBI.. We know they only have enough reserve to back the .00086.  OR maybe not. With the IMF requiring independent audits of al the GOI accounts maybe we will find out. 

 

Edited November 23, 2016 by rockfl9

[chess 3,921]

Perhaps a dime!!!...................

[caz1104 4,965]

LMAO .Yesterday a writer...NOW a foreign currency expert.........Tomorrow LEADER of the free world.....LOL!!!

[Shabibilicious 11,593]

4 minutes ago, caz1104 said:

LMAO .Yesterday a writer...NOW a foreign currency expert.........Tomorrow LEADER of the free world.....LOL!!!

Don't laugh my friend, crazier things have happened.  Now, I'm not sticking up for Rock, but, seriously?!  Billionaire Real Estate Flipper......Beauty Queen maker.......Reality T.V. extraordinaire.......Tomorrow LEADER of the free world!!!    

GO RV, then BV

[bigzac 21]

When a bank creates a mortgage.  Where does the money come?  When someone withdraws money from a bank that has lent out a portion of their cash as a loan, where does the money come from?  

[caz1104 4,965]

5 hours ago, Shabibilicious said:

Don't laugh my friend, crazier things have happened.  Now, I'm not sticking up for Rock, but, seriously?!  Billionaire Real Estate Flipper......Beauty Queen maker.......Reality T.V. extraordinaire.......Tomorrow LEADER of the free world!!!    

GO RV, then BV

Ohhh I left out a re-occurring role the Rockford files. And yes my friend stranger things have happened.......a peanut farmer, & a community organizer just to name a few.

Hope u had a great Thanksgiving! 

[caz1104 4,965]

5 hours ago, bigzac said:

When a bank creates a mortgage.  Where does the money come?  When someone withdraws money from a bank that has lent out a portion of their cash as a loan, where does the money come from?  

Easter Bunny?

[rockfl9 140]

The money comes from the capital account , money the bank has to make loans. In return the bank gets a NOTE from the mortgagee that is a lien  on the property. The value of the note becomes an asset to the bank which may be transferred to another .

When a bank provides the service to exchange currency it is simply a transaction between the customer and an agency that buys the currency .  The bank is acting only as a conduit.  The agency is usually a  branch bank  of the country that issued the currency. Large banks may have a "money center" whose task it is to facilitate currency transfers that are their agents,    The local bank usually does not have any liability in the transaction.

[coorslite21 28,590]

On 11/28/2016 at 0:09 PM, bigzac said:

When a bank creates a mortgage.  Where does the money come?  When someone withdraws money from a bank that has lent out a portion of their cash as a loan, where does the money come from?  

They always come up with a way to do these things.  You are right Rock.......time will tell....

 

 

[Rockymtnhi 249]

If they have anywhere from $10 Trillion to $30 Trillion dinar and an rv goes to a dime to a dollar where will Iraq who has less than $60Billion in reserves get the money to exchange all those dinars out there for dollars??  They can't just magically increase the worth of their currency.  Otherwise every country in the world would have already done it and paid off all their debts. The USA has $20Trillion in debt.  Why don't they do it??  Venezuella who is bankrupt and people are starving would just revalue their currenty to become rich.  If Iraq could simply rv why doesn't Venezuella do that to revive their horrible condition?  I'm looking for real answers.

[caz1104 4,965]

How did USA come to be 20 Tril in debt? & why does the Treasury print bills 24/7?

[caz1104 4,965]

Money does and has just magically appeared

[Rockymtnhi 249]

Why haven't all these countries rv'd their currencies and saved their economies and their people?  Oh right they could magically but they just haven't yet. 

Well let's hope they get around to it before everyone starves to death like people are in Venezuela. 

[rockfl9 140]

The cbi used to have almost $70Bn in reserves , The CBI and IMF said earlier this year that it would drop to $45Bn or less buy end of 2016. There was 80T in M2 . The CBI has been holding the rate up by selling reserves.  The question is have they removed sufficient IQD to support the rate??? We don't know.

Rockymtnhi is correct if they declare that the dinar is worth 1 cent AND haven't increased the reserves tenfold they cannot support the payout!   Iraqi's with dinar will have the first crack at a payout. YES they want as many USD as they can get. 

Inside of Iraq the CBI/MOF could use any rate they choose although an overnight increase/decrease would create panic. Outside the border though they will have to deliver at the stated exchange rate , if they don't the new rate is meaningless. Right now even .00086 could be a stretch.

[rockfl9 140]

CAZ: Creating money by magic is a criminal activity.. So is counterfeiting.  A dinar will always be worth a dinar IN IRAQ.  A USD will be worth a dollar in the USA.YOU can exchange a dollar for any other currency in the international market at an agreed-to  rate .. That's the way the money market works .. EXCEPT for the IQD .  The CBI does NOT trade IQD in any other currency. It is exclusive to Iraq.. There are many possible reasons one is that it does not want  Iraqi's to have the ability to leave the country   with their stash however they may have gained it .. A second is that they fear a non-Iraqi might accumulate enough dinar to buy into the Iraqi economy.  That is their monitary policy by law.

[caz1104 4,965]

A neg for stating truths....hmmmm  all time low for those that claim to be here only to speak the truth. Shame LOPsters Shame

[Rockymtnhi 249]

Printing more currency and altering the exchange rate are two entirely different things. 

[Freedomrules 87]

If there is only 1 dollar in existence and i lend you that dollar with the promise that you will pay it back with interest.... Where does the interest come from?

[rockfl9 140]

 

52 minutes ago, Freedomrules said:

If there is only 1 dollar in existence and i lend you that dollar with the promise that you will pay it back with interest.... Where does the interest come from?

If there was only one of anything then the interest earned is the increase in rarety of the item.The return of the item includes the interest.  

[Freedomrules 87]

21 hours ago, rockfl9 said:

 

If there was only one of anything then the interest earned is the increase in rarety of the item.The return of the item includes the interest.  

Maybe but the Fed will just print more. Further debasing the 1 that already exists

[caz1104 4,965]

On ‎12‎/‎20‎/‎2016 at 5:53 PM, Freedomrules said:

Maybe but the Fed will just print more. Further debasing the 1 that already exists

Correct

Fed is & has been printing non-stop 24/7 for decades.......so in FACT money can magically appear as so can the national debt magically go as high/low as a country allows/wants (ref:USA!!!!!!). Some with an ego larger than their IQ that are NOW currency EXPERTS have a hard time understanding this because it blows a hole in their theory that Iraq can't RV the Dinar 

Edited December 22, 2016 by caz1104

[Freedomrules 87]

I'm by no means an expert and I guess they could  RV  but I just have never understood the reasoning why they would. I do believe in certain conspiracies and most would think I'm nuts because of this, but the cost to reprint a new currency to get on par with the dollar would cost sooooooo much less than revaluing the current dinar. Even if the M1 was incorrect by 1000% it would be a liability of $ 7 Trillion  US Dollars.  Thats a lot of burden on a country of 30 Million people .Dont get me wrong because i know that the US lies to us regarding inflation rates and the Fed is the worlds largest Ponzi scheme ever. Its just that I dont see why Iraq would take on that kind of debt when all they need to do is reprint and RD to get on Par with the dollar.

Merry Christmas to all from The lopster tank everyone and be safe.

[Rockymtnhi 249]

Yes but remember if they RD'd(printed a new curency) on par with the dollar the quantity of new dinar issued would be substantially less than the existing dinar.  So no real difference in total supply in dollar amount.  In other words, you end up with fewer dinar at a dollar and the old number of bills you started with.at .00086. No gain in the bank account.  Remember RD means not changing the amount of dollar equivalents you had to start with.  Likewise an RV means reducing the amount of currency supply dramatically so net net no increase in the ol bank account either.  Not what anyone in it for a gain from an RV is looking for. 

[EverCurious452 66]

On 12/22/2016 at 11:40 AM, caz1104 said:

Correct

Fed is & has been printing non-stop 24/7 for decades.......so in FACT money can magically appear as so can the national debt magically go as high/low as a country allows/wants (ref:USA!!!!!!). Some with an ego larger than their IQ that are NOW currency EXPERTS have a hard time understanding this because it blows a hole in their theory that Iraq can't RV the Dinar 

The US can print dollars and Iraq can print IQD, but Iraq can NOT print dollars and the US is not going to give Iraq 80T dollars (which is more money then exists on the entire planet of all currencies combined).  So the question that Rock continues to ask and no one can answer is where does IRAQ get the dollars to finance an RV?  The answer in my view is that they can not which is why the RV is and always has been a myth.

[rockfl9 140]

Maybe 2017 is time for a reset of logic? Iraq is BROKE!  The CBI has been loosing reserves for at least the last 2 years, the .00086 rate is wrong, as long as they keep buying dinar at that rate they will continue loosing money.

They are begging for a loan .  The US has promised one BUT only if they make changes. Changes that will be hard to make and keep. loans are a tax on any future income.

IF They don't retake Mosel by the end of June , it wont happen this year and the expense of the war will be a drag on their economy another year.