Roll This Around In Your Brain For A Few Minutes

[RichNick123]

Does anyone realize that currently Iraq has only 20 billion dollars on the market in the Dinar? 25 trillion at a value of 0.0008 equates to 20,000,000,000,000.00. How can a country with over 7 trillion dollars of proven oil reserve only have a market value of 20 billion dollars for their currency?This is a Rhetorical question that we know the answer to. We know Iraq is set to come back into the world market and has let it be known they intend to be at or above the valuation of the Kuwaiti Dinar.

If Iraq lowers the float of Dinar from 25 trillion to 25 billion, same as Kuwait and same number in circulation prior to the 2003 redomination, our current Dinar would be worth .80 each or $800,000.00 for each million Dinar you hold!

Kuwait has 25 billion of their Dinar on the market for a valuation of 88,750,000,000.00 or 88.75 billion. 25 billion multiplied by 3.55 USD exchange rate.

a. The 25 billion is from the September Kuwait financial report. There are actually 25,182,500,000 Dinar in circulation.

If Iraq simply uses the Kuwait valuation of 88 billion dollars to support the Iraqi Dinar it would move the value currently to .00355 USD. This may not seem like much but it means every million Dinar you hold are now worth 3,550.00. That means the current IDQ is undervalued by 2,650.00 per million.

Now this gets exciting. If Iraq decides to lower the amount of Dinar on the market from 25 trillion by half to 12.5 trillion, which would be done by a simple exchange of the higher denomination notes, the one's with the 3 zeroes, for smaller denominations it would increase the value of the Dinar to .00739 which would make each million Dinar you hold worth 7,395.83

Kuwait has only 102 billion barrels of oil compared to Iraq's 145 billion barrels. This is not counting the oil reserves in Kurdistan that have not been released.

Kuwait has future earnings at $50.00 a barrel (recent low not likely to be seen again) of 5.1 trillion

Iraq has future earnings at $50.00 a barrell of 7.25 trillion

Kuwait has the world's fifth largest oil reserves and petroleum products now account for nearly 95% of export revenues, and 80% of government income. Kuwait is the eleventh richest country in the world per capita.

If instead of wasting the income it is invested, Iraq will become wealthy. Estimated productive capital assets in the US are $60,000 per capita and $5,000 for the entire world. If Iraq invests only 1/4 of its oil revenue for the next 20 years, it will match current US productive assets per capita.

The total value of Iraq potential oil reserves at an average profit of $75 per barrel over next 100 years would be 360 billion x $75 = $27 trillion or $900,000 per capita, making every Iraqi a millionaire. These calculations do not include natural gas revenue, lately about equal to oil revenue for producing fields. Also, most of Iraq has not been explored for gas or oil.

ANY WAY YOU CUT IT THE DINAR YOU HOLD IS WORTH A HECK OF A LOT MORE THAN 0.0008!!!! NEVER FORGET THAT TRUTH!!

[Frank61]

Does anyone realize that currently Iraq has only 20 billion dollars on the market in the Dinar? 25 trillion at a value of 0.0008 equates to 20,000,000,000,000.00. How can a country with over 7 trillion dollars of proven oil reserve only have a market value of 20 billion dollars for their currency?This is a Rhetorical question that we know the answer to. We know Iraq is set to come back into the world market and has let it be known they intend to be at or above the valuation of the Kuwaiti Dinar.

If Iraq lowers the float of Dinar from 25 trillion to 25 billion, same as Kuwait and same number in circulation prior to the 2003 redomination, our current Dinar would be worth .80 each or $800,000.00 for each million Dinar you hold!

Kuwait has 25 billion of their Dinar on the market for a valuation of 88,750,000,000.00 or 88.75 billion. 25 billion multiplied by 3.55 USD exchange rate.

a. The 25 billion is from the September Kuwait financial report. There are actually 25,182,500,000 Dinar in circulation.

If Iraq simply uses the Kuwait valuation of 88 billion dollars to support the Iraqi Dinar it would move the value currently to .00355 USD. This may not seem like much but it means every million Dinar you hold are now worth 3,550.00. That means the current IDQ is undervalued by 2,650.00 per million.

Now this gets exciting. If Iraq decides to lower the amount of Dinar on the market from 25 trillion by half to 12.5 trillion, which would be done by a simple exchange of the higher denomination notes, the one's with the 3 zeroes, for smaller denominations it would increase the value of the Dinar to .00739 which would make each million Dinar you hold worth 7,395.83

Kuwait has only 102 billion barrels of oil compared to Iraq's 145 billion barrels. This is not counting the oil reserves in Kurdistan that have not been released.

Kuwait has future earnings at $50.00 a barrel (recent low not likely to be seen again) of 5.1 trillion

Iraq has future earnings at $50.00 a barrell of 7.25 trillion

Kuwait has the world's fifth largest oil reserves and petroleum products now account for nearly 95% of export revenues, and 80% of government income. Kuwait is the eleventh richest country in the world per capita.

If instead of wasting the income it is invested, Iraq will become wealthy. Estimated productive capital assets in the US are $60,000 per capita and $5,000 for the entire world. If Iraq invests only 1/4 of its oil revenue for the next 20 years, it will match current US productive assets per capita.

The total value of Iraq potential oil reserves at an average profit of $75 per barrel over next 100 years would be 360 billion x $75 = $27 trillion or $900,000 per capita, making every Iraqi a millionaire. These calculations do not include natural gas revenue, lately about equal to oil revenue for producing fields. Also, most of Iraq has not been explored for gas or oil.

ANY WAY YOU CUT IT THE DINAR YOU HOLD IS WORTH A HECK OF A LOT MORE THAN 0.0008!!!! NEVER FORGET THAT TRUTH!!

Your math is good !! Awsome post !

[RhondaG]

Wow, that's a lot of math!

[mythunter]

And the truth will set you free. At least financially that is.

[BANE]

Um, that is not exciting like you say. That sucks. Every one million Dinar is worth only $7,000? So I walk away with what....One mortgage payment? Yeah that sucks royally...

[RiverStyx]

Great post! Wealthy info. Thank you.

[MrRich]

Now this gets exciting. If Iraq decides to lower the amount of Dinar on the market from 25 trillion by half to 12.5 trillion, which would be done by a simple exchange of the higher denomination notes, the one's with the 3 zeroes, for smaller denominations it would increase the value of the Dinar to .00739 which would make each million Dinar you hold worth 7,395.83

You lost me here. First of all how do you lower the amount of dinar by half with a simple exchange? And if you cut the amount of physical currency by half doesn't that double the value of the currency? If that's the case the new rate would be $.00171 which is considerably less than $.00739.

[cgbrown]

I think the point he is making...... regardless of the math he uses is....... its' worth money. Rejoice.

[RiverStyx]

You lost me here. First of all how do you lower the amount of dinar by half with a simple exchange? And if you cut the amount of physical currency by half doesn't that double the value of the currency? If that's the case the new rate would be $.00171 which is considerably less than $.00739.

I am with Scooby Doo on this one, if they cut it in half by removing the 3 zeros off of the thousand notes it would reduce yes the amount out there yes but I think you went the opposite way of which it would affect us. Please clarify.

This would GREATLY reduce your million to a thousand by my math. Am I missing something here? (provided everyones dinar are in the thousand notes)

reiteration would be appreciated!

^

R

[tport]

There are also geo-political factors involved in a country's exchange rate. You just can't take money supply and start multiplying and dividing and come out to an actual exchange rate. This exercise and the numbers presented (although well done from a math perspective) really doesn't have much importance to the value of our investment and how it will be determined. These particular numbers have never (ever) shown up anywhere over the last 2 years in terms of exchange rates. Time to just wait for this fiasco to be over; then we'll know for sure.

[Chief V]

I'm feeling pretty sure they have approximately 505 Billion barrels of oil in Iraq, the recent discovery of additional reserves added 143 Billion barrels of oil, giving them the total of 505 Billion. So those numbers are gonna have to change, I'm no mathematician, but I'm pretty sure that the recent amounts of oil have been posted in the last two months on here.

Just sayin.......

V

[MrRich]

I'm feeling pretty sure they have approximately 505 Billion barrels of oil in Iraq, the recent discovery of additional reserves added 143 Billion barrels of oil, giving them the total of 505 Billion. So those numbers are gonna have to change, I'm no mathematician, but I'm pretty sure that the recent amounts of oil have been posted in the last two months on here.

Just sayin.......

V

Well Chief according to what I read only 143 bbl were recoverable so I don't think you can include the rest in any currency valuation equation. Although that's what some people are trying to do.

[rw.sutton]

Does anyone realize that currently Iraq has only 20 billion dollars on the market in the Dinar? 25 trillion at a value of 0.0008 equates to 20,000,000,000,000.00. How can a country with over 7 trillion dollars of proven oil reserve only have a market value of 20 billion dollars for their currency?This is a Rhetorical question that we know the answer to. We know Iraq is set to come back into the world market and has let it be known they intend to be at or above the valuation of the Kuwaiti Dinar.

If Iraq lowers the float of Dinar from 25 trillion to 25 billion, same as Kuwait and same number in circulation prior to the 2003 redomination, our current Dinar would be worth .80 each or $800,000.00 for each million Dinar you hold!

Kuwait has 25 billion of their Dinar on the market for a valuation of 88,750,000,000.00 or 88.75 billion. 25 billion multiplied by 3.55 USD exchange rate.

a. The 25 billion is from the September Kuwait financial report. There are actually 25,182,500,000 Dinar in circulation.

If Iraq simply uses the Kuwait valuation of 88 billion dollars to support the Iraqi Dinar it would move the value currently to .00355 USD. This may not seem like much but it means every million Dinar you hold are now worth 3,550.00. That means the current IDQ is undervalued by 2,650.00 per million.

Now this gets exciting. If Iraq decides to lower the amount of Dinar on the market from 25 trillion by half to 12.5 trillion, which would be done by a simple exchange of the higher denomination notes, the one's with the 3 zeroes, for smaller denominations it would increase the value of the Dinar to .00739 which would make each million Dinar you hold worth 7,395.83

Kuwait has only 102 billion barrels of oil compared to Iraq's 145 billion barrels. This is not counting the oil reserves in Kurdistan that have not been released.

Kuwait has future earnings at $50.00 a barrel (recent low not likely to be seen again) of 5.1 trillion

Iraq has future earnings at $50.00 a barrell of 7.25 trillion

Kuwait has the world's fifth largest oil reserves and petroleum products now account for nearly 95% of export revenues, and 80% of government income. Kuwait is the eleventh richest country in the world per capita.

If instead of wasting the income it is invested, Iraq will become wealthy. Estimated productive capital assets in the US are $60,000 per capita and $5,000 for the entire world. If Iraq invests only 1/4 of its oil revenue for the next 20 years, it will match current US productive assets per capita.

The total value of Iraq potential oil reserves at an average profit of $75 per barrel over next 100 years would be 360 billion x $75 = $27 trillion or $900,000 per capita, making every Iraqi a millionaire. These calculations do not include natural gas revenue, lately about equal to oil revenue for producing fields. Also, most of Iraq has not been explored for gas or oil.

ANY WAY YOU CUT IT THE DINAR YOU HOLD IS WORTH A HECK OF A LOT MORE THAN 0.0008!!!! NEVER FORGET THAT TRUTH!!

Amazing !! Great Post !!

[Chief V]

Well Chief according to what I read only 143 bbl were recoverable so I don't think you can include the rest in any currency valuation equation. Although that's what some people are trying to do.

Roger that, it was my understanding that the "new" reserves were only 143 billion that were recently discovered, which is what I thought I read, I could be wrong though. Reckon I'll have to look that up a bit...lol

The Ministry of Oil announced last September that the storage of crude oil in the country was 505 billion barrels of 66 discovered fields, while the reserve that could be extracted reached to about 143 billion barrels, assuring that the new numbers do not include the fields of the Kurdistan region.

Read more:

I stand corrected, you are right, the reserve that could be extracted reached to about 143 billion barrels.

Thanks!

V

[fatbob]

Um, that is not exciting like you say. That sucks. Every one million Dinar is worth only $7,000? So I walk away with what....One mortgage payment? Yeah that sucks royally...

http://www.youtube.com/watch?v=qS7nqwGt4-I&feature=related

[nashdinar]

No one really knows what is going to happen in how they will RV their currency. Although these math quotes sound reasonable, Economics and politics are anything but reasonable. Many factors will be considered when it all comes to an end. I my self am not sure of any rate that can come out. To me anything more than .10 will be a great return. I do really want the $1-$3 range however. IMO if they come out too low, there may be a run on the $$$. Just my opinion. GO RV!!

[Captjohn]

No one really knows what is going to happen in how they will RV their currency. Although these math quotes sound reasonable, Economics and politics are anything but reasonable. Many factors will be considered when it all comes to an end. I my self am not sure of any rate that can come out. To me anything more than .10 will be a great return. I do really want the $1-$3 range however. IMO if they come out too low, there may be a run on the $$$. Just my opinion. GO RV!!

1. If they come out too low, they fuel the speculators - fuel further currency speculation

2. You have to factor in the "pride factor" for the Iraqis. They want to come out at a rate that will show the world they are "real players". Perhaps at or near the Kuwaiti rate, although the CBI has stated (read past posts) that their extractable oil reserves could support a much higher rate than the NKD.

Setting the rate is a real balancing act for the CBI. Will be interesting where they set it. I anticipate it should be good for us.

Edited October 29, 2010 by Captjohn

[BANE]

http://www.youtube.com/watch?v=qS7nqwGt4-I&feature=related

Isn't this YOU Fatbob?

[fatbob]

HAHA. That would be true if I was fat. Fatbob is the name of my HD motorcycle. Try again Bane. I'm actually 5'10" 185 pounds 8% bodyfat and work out everyday.

[TimS]

Richnick....good job

I've been saying this for months. Which is why I don't believe the dinar can RV anyhwhere near $3US.....that would increase the value of the currency in circulation from a worth of $80US billion to $75US trillion overnight if they don't take a whole lot of dinar out of circulation beforehand. And remember, they can't take out of circulation what they aren't buying back......hence my question for today.......In the numbers posted ealier about bthe CBI auctions....why is there only selling figures, not buying numbvers?

[Idiot_BANE]

Isn't this YOU Fatbob?

I am REALLY AN IDIOT FOR SAYING THIS!!!!

Um, that is not exciting like you say. That sucks. Every one million Dinar is worth only $7,000? So I walk away with what....One mortgage payment? Yeah that sucks royally...

Why am I getting so many negatives???? Maybe it's because I'm an Idiot!!!

[SoldierOfIndependence]

I am REALLY AN IDIOT FOR SAYING THIS!!!!

Why am I getting so many negatives???? Maybe it's because I'm an Idiot!!!

Oh my, someone got so fed up with Bane, they started a new account to post in parody!

Seriously, I haven't really figured him out yet. I don't think he's a troll, it sounds like he really does believe in the investment possibilities of the dinar. I don't think he's lying either, I think he really is well off, little debt, american citizen but lives in mexico, etc, etc. He does seem to be educated, he has a pretty good knowledge of some biblical scripture. I don't know, maybe his posts are sincere with a hint of facetious sarcasm. In any case, I had fun debating him about the Bible (although he never did give any rebuttal comments on the scriptures I gave about giving).

[Kimjackie]

Um, that is not exciting like you say. That sucks. Every one million Dinar is worth only $7,000? So I walk away with what....One mortgage payment? Yeah that sucks royally...

Grow up Bane, you should be called Mr Negative instead...............

[REDRV]

RECOVERABLE OIL 143BIL. BARRELS , TIMES , X, = , ? + RECOVERABLE NATURAL GAS Y AMOUNT , TIMES, X , = ? + RECOVERABLE GOLD Y AMOUNT , TIMES , X , = ? + LABOR FORCE , ABLE WORKING PEOPLE , Y AMOUNT , TIMES , X POSSIBLE WORKING HOURS, TIMES, DINAR AMOUNT, = ,? , + CURRENT WEALTH THATS BEEN CREATED OVER THOUSANDS OF YEARS ( MOST OF WHICH IS BEING RETURNED CASH, GOLD, SILVER , MISC. RELICS ) WHICH GIVES A GRAND TOTAL OF XXX,XXX,XXX,XXX,XXX RIDDLE ME THIS! DOE'S THIS SOUND CORRECT ?

[doc9574]

picked up my calculator started to punch in some numbers then thought "sure seems like a lotta work to find all that out" maybe a deep breath and a bowl of ice cream might be good, yup much better idea!