* DD: Making Sense of the Numbers… NO LOP!

[Unitedrich]

All,

From the moment I’ve been in this investment even until now, the debate of LOP versus RV has been raging. That very argument is what drove me and thousands of others AWAY from Investors Iraq (IIF), as it appeared it was absolutely overrun by those who felt it was their mission to squash the hopes and dreams of other investors. I am sharing this with the permission of those who have helped bring me this concept to light, from several legitimate economists and very sharp minds, their perspective to help each of you understand this dilemma.

I don’t know about you, but I’ve been told time and again by those who are absolutely in a position to know that this will NOT be a LOP, but will be a straight-up RV, yet I found myself not being able to refute the arguments of those who brought only “part of the truth” forward, using the “numbers” to their advantage through logical focus on that which was clearly understood. This post of mine is dedicated to explaining how an RV will happen.

CONCEPT EXPLAINED:

First off, I’ll use the exchange of a 10,000 IQD note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread.

What You Will Receive:

If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.

What Your Bank Will Receive:

Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive:

First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.

Oil Now Enters the Picture:

At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money:

The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:

DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated.

Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.

Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets.

There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10

Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out.

US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000

CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors”

Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20

This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!

In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming!

Go Iraq… Go Understanding… Go RV… Go Dinar!

DD

[dweave69]

thanks for the post. I'm glad we can still get this information from the other sites.

Go RV now.

[powerpager]

Go , Jump on Out There !!!

[dlbfilm]

Amazing thanks for the post. Its great to see the breakdowns.

[Telabiz]

Very nice , although the dinar in fed reserve will eventually have a value of 3- 4 bucks , after our cash in period (U.S. will put the 3 zeros in electonically , then destroy the note here in U.S. on the spot) . we get 10 K less the above , US will get a value at least 3-4 times what we get that would make the total more like 48K from our 6500 (after tax and fees) Fed Deficit , Infrastructure problems education, etc. No more problems !!!! While we take our 6500 , and do our part to help stimulate the Economy ( buying, houses cars etc.) . I would call that a Win Win !! Thanks for the post Go RV !!!!!

[honeybee]

All,

From the moment I’ve been in this investment even until now, the debate of LOP versus RV has been raging. That very argument is what drove me and thousands of others AWAY from Investors Iraq (IIF), as it appeared it was absolutely overrun by those who felt it was their mission to squash the hopes and dreams of other investors. I am sharing this with the permission of those who have helped bring me this concept to light, from several legitimate economists and very sharp minds, their perspective to help each of you understand this dilemma.

I don’t know about you, but I’ve been told time and again by those who are absolutely in a position to know that this will NOT be a LOP, but will be a straight-up RV, yet I found myself not being able to refute the arguments of those who brought only “part of the truth” forward, using the “numbers” to their advantage through logical focus on that which was clearly understood. This post of mine is dedicated to explaining how an RV will happen.

CONCEPT EXPLAINED:

First off, I’ll use the exchange of a 10,000 IQD note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread.

What You Will Receive:

If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.

What Your Bank Will Receive:

Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive:

First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.

Oil Now Enters the Picture:

At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money:

The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:

DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated.

Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.

Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets.

There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10

Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out.

US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000

CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors”

Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20

This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!

In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming!

Go Iraq… Go Understanding… Go RV… Go Dinar!

DD

This is an excellent post for the purposes of encouragement!! Thank you for bringing it across, but you can deduce the same conclusion by simply reading "The Plan (Part I & II)" listed above. The lack of supportive response in relationship to the amount of chiming in on the non-cerebral posts before and after this one, however, is what I find curious and disconcerting. Has the average poster and replier at this blog become so negative or critical that they can't waste the time on something that leaves them with an intellectual challenge as factually uplifting as this post? Just a thought....we should all have one or two....GO RV!

[tcjams]

UR that's pretty solid and logical info there!! GO RV DAMMIT!!!

[Grandpa Dave]

Unitedrich, Thank you for the great post !!!

[Telabiz]

So now we wonder who will get the credit for this . Dems or Reps . Remember everyone thinks we are crazy for this investment . I for one (after RV ) won't say a word I am dam sure I have cousins I don't even know , that will be coming out of the woodwork . I know of 750,000 (est .latest on dinar holders U.S.) who would be wise to do the same . Thing like " Oh I just decided to start using my retirement, it's time) , or "well I just lived right" etc. etc. When in fact we are shocked that we actually made a cent off of this and most couldn't retire if they did'nt , I ain't sayin a word , and advise ya'll to do the same , Then we have 300 M plus people wondering how the dems did it . You have all heard it . "That would take a miracle." "O just seem's Arrogant" I will assure you O is confident in that he has the RV up his sleeve,. And I'm not talking !! But I will Know I did my part for the upcoming change in U.S. Go RVVVVV

[Eddinar]

Thanks for the post UR... Scooby Doo posted this earlier....Everything sounds good...An RV is Imminent IMO..

[BMWman]

For the debate, I'll use your numbers where you provided them. I'll use percentages when needed so it won't matter what the amount circulated is. When talking "value", we will use USD no matter which currency is used. In no scenario will we discuss L0P because a redenomination does not affect total value. Also, money is money, it doesn't matter if it is paper or electronic, money is money.

For my first argument, let's talk about Iraq's "Official International Reserve". Without it, the IQD has no value. Iraq's current Reserve is over the 33 1/3% required by (Iraqi) law, so to make the numbers tilt towards your scenario, let's say they now have the IQD backed up 100% by the International Reserve.

If the exchange rate to goes from 1170:1 to 1:1 ($0.000855 to $1.00), that would be an increase in value for us of 116,859% (or, 1176.47 times you investment). Not bad at all. Here's the problem: Iraq's Reserves are at 100% before the RV. After an RV at $1.00, the International Reserve would represent 0.085% of the value of all of the IQD. Besides taking it well below the required 33.33%, that is taking "fractional banking" to the point of death.

The second argument is for those who think there is a work-around to the CBI's lack of Reserves: In your scenario, let's say The VIP Club, which Adam says holds 25 BILLION IQD, are the ONLY people who cash in after the $1.00 RV. They have 2.5 MILLION 10,000 IQD notes. Using your figures, Iraq is going to spend $325,000,000 to produce 625,000,000 barrels of oil to fulfill the order from your fed appointed agent.

The VIPs get $25,000,000,000.

The Feds get 625,000,000,000 barrels of oil. (which Iraq had to pay $325,000,000 to produce)

Iraq gets back the dinar that they had sold to the VIP Club for $21,375,000.

Instead of using the VIP's money for an example, start multiplying the above numbers by the Trillions of IQD which Iraq will have give its oil away for.

The third argument is for those who think a country doesn't have to back up its currency with International Reserves, and can just say the value is whatever they want it to be. It is just another possible scenario in which Iraq seems to be the winner instead of us. There will be no RV or L0P to muddy it up and all "values" will be expressed in US Dollars.

Iraq sells IQD to the VIP Club and gets $21,375,000. At production cost of $130/250 bbl s of oil, Iraq uses the VIP money to produce 41,105,750 bbl s of oil.

Iraq then sells the oil on the open market for $2,055,287,500. Iraq puts the proceeds into the CBI's International Reserves.

The CBI, under the fractional banking system, can now issue $6,165,862,500 worth of IQD to:

-The government to pay its workers, pay for infrastructure projects, social programs, etc.

-Loans to the commercial banks, so they can then give loans to the Iraqi citizens, etc.

-Pay to produce more oil, which they will then sell and keep the proceeds for themselves again.

-Give $21,375,000 to the VIP club when they cash in their IQD.

What would you do if you were Iraq?

It ain't pretty, it just is what it is.

Dustin,

Maybe I am missing something but, why would their reserves be a concern? Whatever reserves and liquidity they have right now in IQD would increase in value by 116,000%. So, they then would have the funds to purchase the USD, Pound, Euro, Yen, etc. needed to keep whatever International Reserve % they need to have. The US, Britain, EU and Japan would love this, because it would increase demand for their currency and drive its value up. Done in a structured, planned way, this could drive the strength of these currencies up for quite some time. I am sure this has been part of the plan all along. A win-win situation. They know how much paper currency is "out on the street" and would simply have enough IQD in reserve to handle the $ needed to purchase the USD, Pound, Euro, Yen, etc. that they would need to bring International Reserves inline as needed. It would not take all that much IQD to accomplish this. Maybe someone could whip up a simple spreadsheet to calculate what would be needed. Also, as the IQD is traded in, if the big bills are destroyed, their International Reserve requirement goes down because there are fewer IQD's in circulation. This increases their reserve % with every Dinar exchanged for USD, Yen, EURO, etc. My understanding is that they (the CBI) recently pulled in a lot of IQD currency from the street and have increased their liquidity tremendously. Also, I did a spreadsheet late last year showing how the CBI could actually make money on the RV by simply charging a slightly higher spread for x # of months while the initial "rush" of cashing-in takes place. A VERY small spread increase would bring in a massive amount of revenue for them. That is another possible source of "income" to keep their International Reserves ratio inline with requirements. Not bashing, but your theory on that portion does not seem to hold water, IMHO.

Also, your statement that money is money, whether paper or electronic, IMO, is not true. What does it cost them to RV the electronic money? Nothing. Study how a loan produces money out of thin air here in the US (Federal Reserve) and you will see it costs the Fed nothing to come up with the loan amount. It is entered as electronic money from out of thin air. Any bank account holding electronic IQD simply goes up in value as compared to other FIAT currencies. It literally costs the CBI nothing for those "Dinar" to RV. Again, not bashing, just throwing out my opinion on the FIAT currencies from my study of the Federal Reserve and knowing a lot about how it works.

BMWman

[Kimjackie]

Thanks for posting so newbies and others can see it. I have this printed out from several months ago when I first saw it written up. This is not a new piece of info however its good to re-read it.

[csteiner27]

Thanks for the reply. I'm not shouting below with the ALL CAPS, just separating your text from mine. Sorry, I hit the wrong key and I can't edit the first attempt.

In a nutshell, a Central Banks main purpose is to control the value of its currency. Currency is the OBLIGATION of the CBI and its International Reserve is the LIQUIDITY needed to meet those obligations. 33% liquidity at the central bank level is very healthy. Less than 1/10 of 1% is DEATH.

And thanks again, we don't have to agree on this.

So Dustin are you saying the RV can't happen the way people think it will? The numbers don't make sense?

[WantsToRetire]

So now we wonder who will get the credit for this . Dems or Reps . Remember everyone thinks we are crazy for this investment . I for one (after RV ) won't say a word I am dam sure I have cousins I don't even know , that will be coming out of the woodwork . I know of 750,000 (est .latest on dinar holders U.S.) who would be wise to do the same . Thing like " Oh I just decided to start using my retirement, it's time) , or "well I just lived right" etc. etc. When in fact we are shocked that we actually made a cent off of this and most couldn't retire if they did'nt , I ain't sayin a word , and advise ya'll to do the same , Then we have 300 M plus people wondering how the dems did it . You have all heard it . "That would take a miracle." "O just seem's Arrogant" I will assure you O is confident in that he has the RV up his sleeve,. And I'm not talking !! But I will Know I did my part for the upcoming change in U.S. Go RVVVVV

I totally agree. I've been wondering what to tell people when I quit my job. The best I could come up with was, "Some of my investments miraculously turned a profit!" I plan to maintain a low profile and just enjoy the peace of mind. I can't help but be excited at the prospect. And thank you for the original breakdown here. I like the reminder. Every time I read it, I feel like I'm understanding the process a little better.

[Captjohn]

Very nice, thought-out synopsis. You forgot one major player in the deal. China wins as they control the majority of Iraq's oil fields and oil production.....and they didn't lift a finger in blood or treasure to get it!

[BMWman]

I am saying that the CBI needs to have the International Reserves to back up the value of the IQD, which they currently have, Just saying your currency is worth thousands of times more today than it was yesterday doesn't make it happen. Sorta like "putting your money where your mouth is." I can think of ways Iraq can profit from the sale of their oil instead of me.

While I can't repeat everything that has been said about me, I can sum it up by saying I am slightly less enthusiastic than others.

Dustin,

I re-read my post from the other day concerning this and I see that I didn't do a good job of getting my point across .... wasn't feeling well that day, sorry. Also, I have been out of town for a couple days working so, sorry for the late reply. Again, not bashing, just having a good discussion with you ... thank you for the civilized "bantering" of our ideas back and forth. I love this.

Ok, so what I was trying to get to the other day and failed miserably in doing so, is that I don't believe that International Reserves have anything to do with the value of a currency. Let me explain why. If the value of the IQD depends upon the International Reserves they have (USD, the Euro, the Pound, the Yen, etc.) and the value of the USD is dependent upon the International Reserves the US has (Euro, Pound, AUS Dollar, Yen, etc.), then this becomes 'circular reasoning'; they have their value based upon the value of each other.

My understanding of the 'value' of fiat currencies is that they are based upon the work output of the citizens of the country or entity they are members of. This makes sense when you understand that fiat currencies are debt-based (notes, not certificates, either gold or silver). Notes are not storehouses of value like gold or silver. Notes are evidence of debt. The 'value' of the USD this year is the anticipated work output of the US Citizens next year divided by the # of notes in circulation. This is monetary slavery. Work always needs to be done next year to "pay for" this year. This is what fiat currencies are all about. In essence, they can simply say the currency is worth X amount. Now, whether or not "the market" determines it is worth that amount over a sustained period is a different discussion that I will not get into now.

Thanks, and I do respect your knowledge, theory and ideas on this.

BMWman

[The Personal Coach]

BMWman,

Would you agree then that the IQD's value was determined by the CBI based on the GDP of IRAQ for 2011? If that is the case Scooter's research on their budget should be correct and we should see this happen shortly.

Thanks,

Dave

TPC

[BMWman]

BMWman,

Would you agree then that the IQD's value was determined by the CBI based on the GDP of IRAQ for 2011? If that is the case Scooter's research on their budget should be correct and we should see this happen shortly.

Thanks,

Dave

TPC

Dave,

Yes, I believe they looked at all the exports (agricultural, industrial, etc) Iraq would have and the value of the contracts signed for oil production along with the # of Dinar in circulation and came up with a value. There was an article a couple years ago stating that they could support $1.13 (I think) back then. Since then the contracts signed for oil production has increased the potential value of the Dinar tremendously. I believe it will come out somewhere near the old $3.22. This puts it just under the Kuwaiti Dinar and inline with what their oil reserves would seem to justify, IMHO.

And remember, the CBI is part of the IMF and Shabibi worked at the IMF for years. They have had this all planned for a very long time, IMO.

BMWman