IMPORTANT PERSPECTIVE - Q & A - 2/01/2024

[ronscarpa]

  15 hours ago, edbeach said:  (From DINAR RUMORS)

Ron I agree Iraq owed Kuwait Billions of Dollars back in 2010 but this was paid over the next few years of percentage of oil sales. So wouldn't this agreement with Kuwait to be few cents below the Kuwait Dinar become null & void now to whatever Iraq decides to make the rate? Would be nice if a few cents below but my thinking as above, hopefully not a LOP

 

Hi Ed, It's a matter of National pride with the Arab nations. Who knows what agreement they may have now - lots has changed. It all depends where Iraq will start with a new exchange rate (ER). The above is certainly a possible scenario, but I personally feel they will come out somewhat low to draw in the IQD out of country (from impatient people like us who want our money back), then strategically increase the value. Remember, all the Paris Club countries hold IQD. To have a high value too soon would be giving away a fortune. The agreement with the US was to use the IQD it holds to buy Iraqi oil at a pre-agreed rate (I think it was $35/bbl). I have no idea what other countries may have agreed to.

 

We have to look at it from the Iraqi position. Even 5 cents would cost them way more than the Lop, then coming out at a $3.50 rate. Think about it ... 1 Million IQD at 5cents per IQD = $50,000. That's a $49,000 profit if you paid $1K/mil. If they did a Lop, then immediately RV'd at $3.50,  your 1 Mil IQD = $3,500. You would have made a $2,500 profit. Then pay taxes on it. Which is better for them..? It seems obvious. 

 

Only time will tell where we end up. Personally, based on all that's happened until now, I'm hoping for at least 10 cents, although I'd love to see it much higher. I used to think they'd come out at $1.28 and a controlled float up to $2.70. Then when they feel the timing is right go to the Golden Dinar of $3.33. Times have changed. I don't quite see that happening anymore. We have to be realistic and see how many IQD are actually out there in circulation. That figure varies greatly from 40 trillion IQD to 100 trillion IQD. 

 

As of July 2023, the market value of Iraq's natural resources is estimated to be over $15 Trillion, with that figure higher as additional oil, gas and gold reserves are discovered.  So, even with only 40 trillion IQD out there, for them to cover 1 to 1 the highest rate would be at 37 cents. At 100 trillion out there, to cover a 1 to 1, the rate would be 15 cents. Hopefully, you now have a more clear picture of reality. Hope I didn't burst your bubble. Blessings. RON

[divemaster5734]

Reality has a bad habit of smashing fantasy to tiny little pieces.

In truth I'd take .05 and be grateful the last 15 years wasn't totally wasted.

Your perspective makes sense, especially considering all those bad actors holding IQD that would suddenly be able to afford RPG's and high tech drones to use against all us infidels.

Thanks