Something To Think About!!!!!

[RichNick123]

In my research of the Dinar I have done my best to equate it to comparable currencies in the region. This gives me, personally, a better feel of what to expect from my investment and a rational outlook on the coming RV.

There are some in this realm that have thrown out numbers from .10 all the way to 10.00 plus USD. They all have what appears to be some realistic backing to their valuation. I am going to, in my own personal opinion, attempt to give you some rational and realistic revaluation numbers to think about.

First and foremost, Iraq went from a reasonable amount of exchangeable currency, pre-invasion, of around 25 billion Dinar in circulation. After the US attack and invasion Iraq sent into a tailspin economically. With the release of the new DeLarue Dinar Iraq, under chapter 7 and other sanctions, found themselves at an economic impasse.

What we have no way of knowing, or ever finding out, is the current number given of 25 trillion Dinar in existence, whether or not this includes the actual (M1), currency in distribution, or whether or not the smaller denominations are included, but withheld from the public. I know this seems mentally confusing but hold on for a minute and let me explain. If Iraq, with the UN and IMF, had DeLarue print a total of 25 trillion in Dinar then that would give us a realistic (M1) number to deal with. If on the other hand Iraq, the UN and IMF, had a total of 25 trillion of large denomination bills printed, with the smaller denominations on hold, then we have unlimited expectations as to the RV. I personally have a hard time believing Iraq, the UN and IMF had DeLarue print a total of over 50 trillion in script!

Surrounding countries have in the neighborhood of 25 billion scripts of exchange on the market. Kuwait has 25,182,500,000.00 Dinar on the market. Iraq has 25,000,000,000,000.00. This has a quantative effect on the actual market and exchange value of the currency. Let me explain:

Kuwait has approximately 88 billion dollars in (M1). This is actual money converted to the USD in cash value exchanged and traded daily. Iraq has only 20 billion in (M1) cash traded and exchanged on a daily basis. Iraq has an exponentially greater amount of oil reserves and natural resources than Kuwait!

Kuwait trades it's currency at an approximate measure of 50% of its 2009 GDP which was 167.9 billion USD.

Iraqi’s GDP is unknown,as it is under sanctions, but we do know they move 1.92 million barrels of oil daily which at $50.00 a barrel, a conservative number equates to 34,560,000,000.00 a year. Gold reserves and exchanges in Iraq are also known to be an additional 46.8 billion: link http://www.gfmag.com/gdp-data-country-reports/252-iraq-gdp-country-report.html. This gives Iraq a reasonable exchange rate of that close to Kuwait if the amount of Dinar is reduced!

This brings us to the great dilemma; Does Iraq truly have 25 trillion Dinar in circulation (M1) or does this include the unreleased lower denominations? Did DeLarue print 25 trillion in large denomination bills only? Did DeLarue print 25 trillion in total script for the nation of Iraq and only 15 trillion or so have been released?

Everything surrounding Iraq has been shrouded in lost translations and secrecy. Each and every day we strive to understand the press releases and information coming from this nation.

In order to have a true RV we must know the amount of money in circulation (M1) in order to have a grasp of its true valuation! Iraq is a resource wealthy nation that can easily have a currency trading at a $2.00 to $3.00 USD exchange rate. This can only occur however if the amount of Dinar on the international market equals 25 billion or less.

We, in the know, have heard that the lower denominations are being possibly brought into circulation. If this is true, and the upper denominations are being removed, this would bring about a realistic RV in the neighborhood of above $3.00 USD!!!

Being the conservative investor I am I still think the RV will come in around .86. My reasoning on this is that there will be a raising of the rate over a period of months to the realistic valuation. Iraq, the UN and IMF, as well as the world bankers and market makers know that the vast majority of Dinar holders will exchange at the lowest denomination. This will allow for growth and a limited disbursement at the initial RV rate.

I post this knowing it will be picked apart by those with degrees in economics and those with supposed inside information. I personally do not have a degree in economics or banking but I have operated for the last 25 years as an entrepreneur and have been blessed to run several multi million dollar companies and organizations. This is common sense and market rationality in my personal opinion.

The news is good!! There is substantial reason to believe we shall see an RV between .86 and 3.00 soon and very soon!!

Peace, Out!!

[Double R]

Good stuff thanks for posting. Your rate range is very similar to what Buffett's group supposedly thinks. I do believe however that this must come in at rate where the speculators will stay out. Shabibi has openly shared his disdain for speculators and he understands well that coming in too low could cause major issues with the currency and the economy. If you look back at some of Scooter's research, there is documentation for the upcoming budget year for Iraq that uses the Bahrain rate ($2.65). IMO this RV will be a minimum of $1.50 and a little above $3.00

[fatbob]

Thanks for the post and your insight.

[BANE]

Good! I hope you are right! In the hopes that Rich Nicolas soon will be here!

Edited October 30, 2010 by BANE

[icutiewatcher]

Hey RichNick,

Great post. I feel they will come in lower before higher, but based on all I've read, I think it's coming at $3+. I also feel it is worth significanly higher based on Iraq's resources alone, so over time, unsure of how much time, the value will be much greater than $3, more like 6-10... If they revalue too high, they loose investment lure. Thus, my thinking they'll come in low, but value much higher over time to keep the investors coming in.

I do have a few questions though... I have caught notes posted a few different times about some policy or law that was put in place in 2008 that a valuation cannot go higher or lower by 4% in a period of time... Now, I don't know what period of time, or what policy I'm talking about either... I've tried to google it, but I can't find it as I'm not sure enough of what I'm looking for. I'm not sure if it's a Forex or an IMF thing, but I've heard it a few times now... So...

1/ Do you, or does anyone, know about this policy or law that I'm taking about?

2/ If this is in place, and it RV's for $.86-3, how frequently can they go up this 4%?

Peace within too!

[JugDawg1]

What's up Rich. Thanks for your efforts of late. As far as folks with degrees go, I trust OJT experience more. I've seen too many "degreed" people who can't find their butts with both hands in the very field they've studied.

Edited October 30, 2010 by JugDawg1

[waterman13]

RichNick,

Awesome! Yes, Yes, Yes. Oil was trading over $80 / barrel today the last time I looked. Go RV! over $3. Still saying $3.33. :).

Lets Roll Baby! Go RV!!! Go!

[dflake]

Yes, yes, yes, it could come in at .86 or 3.63, or anywhere in between, it's all good with me. My question is, WHEN???? lol lol

[Dinar Team]

Good posting..thanks RichNick123!

[Pexring]

Good stuff thanks for posting. Your rate range is very similar to what Buffett's group supposedly thinks.

Are you saying that Buffett is invested in Dinar?

[BigJohn30]

Are you saying that Buffett is invested in Dinar?

Word around the camp fire is Buffet has 20% of the Dinar in the US..

[Pexring]

Word around the camp fire is Buffet has 20% of the Dinar in the US..

I've been here for months reading everything. Somehow missed that. Is he buying it himself personally, or buying it for his funds? I'd think if its for his funds, it would be disclosed to his investors. Hmmm.

[doc9574]

Thanks Rich wealthy entrepreneurs usually know a good thing when the see it , I think that falls under the same category as H. Ford , you must have good insight , my personal investment in this didnt come from any great research except for basically the logical knowledge that a country as wealthy in resources as iraq cant leave their currency worthless when all around them are countries with far less and whose currency is much higher. Iraq is just temporarily a victim of some unfortunate circumstances

[Double R]

Sonny posted the other day that he's seen the documents where Buffett's group has approx 20% of the dinar in the USA.

[MrRich]

I wish I made the kind of money Jimmy Buffet makes.

[lobo]

In my research of the Dinar I have done my best to equate it to comparable currencies in the region. This gives me, personally, a better feel of what to expect from my investment and a rational outlook on the coming RV.

There are some in this realm that have thrown out numbers from .10 all the way to 10.00 plus USD. They all have what appears to be some realistic backing to their valuation. I am going to, in my own personal opinion, attempt to give you some rational and realistic revaluation numbers to think about.

First and foremost, Iraq went from a reasonable amount of exchangeable currency, pre-invasion, of around 25 billion Dinar in circulation. After the US attack and invasion Iraq sent into a tailspin economically. With the release of the new DeLarue Dinar Iraq, under chapter 7 and other sanctions, found themselves at an economic impasse.

What we have no way of knowing, or ever finding out, is the current number given of 25 trillion Dinar in existence, whether or not this includes the actual (M1), currency in distribution, or whether or not the smaller denominations are included, but withheld from the public. I know this seems mentally confusing but hold on for a minute and let me explain. If Iraq, with the UN and IMF, had DeLarue print a total of 25 trillion in Dinar then that would give us a realistic (M1) number to deal with. If on the other hand Iraq, the UN and IMF, had a total of 25 trillion of large denomination bills printed, with the smaller denominations on hold, then we have unlimited expectations as to the RV. I personally have a hard time believing Iraq, the UN and IMF had DeLarue print a total of over 50 trillion in script!

Surrounding countries have in the neighborhood of 25 billion scripts of exchange on the market. Kuwait has 25,182,500,000.00 Dinar on the market. Iraq has 25,000,000,000,000.00. This has a quantative effect on the actual market and exchange value of the currency. Let me explain:

Kuwait has approximately 88 billion dollars in (M1). This is actual money converted to the USD in cash value exchanged and traded daily. Iraq has only 20 billion in (M1) cash traded and exchanged on a daily basis. Iraq has an exponentially greater amount of oil reserves and natural resources than Kuwait!

Kuwait trades it's currency at an approximate measure of 50% of its 2009 GDP which was 167.9 billion USD.

Iraqi’s GDP is unknown,as it is under sanctions, but we do know they move 1.92 million barrels of oil daily which at $50.00 a barrel, a conservative number equates to 34,560,000,000.00 a year. Gold reserves and exchanges in Iraq are also known to be an additional 46.8 billion: link http://www.gfmag.com/gdp-data-country-reports/252-iraq-gdp-country-report.html. This gives Iraq a reasonable exchange rate of that close to Kuwait if the amount of Dinar is reduced!

This brings us to the great dilemma; Does Iraq truly have 25 trillion Dinar in circulation (M1) or does this include the unreleased lower denominations? Did DeLarue print 25 trillion in large denomination bills only? Did DeLarue print 25 trillion in total script for the nation of Iraq and only 15 trillion or so have been released?

Everything surrounding Iraq has been shrouded in lost translations and secrecy. Each and every day we strive to understand the press releases and information coming from this nation.

In order to have a true RV we must know the amount of money in circulation (M1) in order to have a grasp of its true valuation! Iraq is a resource wealthy nation that can easily have a currency trading at a $2.00 to $3.00 USD exchange rate. This can only occur however if the amount of Dinar on the international market equals 25 billion or less.

We, in the know, have heard that the lower denominations are being possibly brought into circulation. If this is true, and the upper denominations are being removed, this would bring about a realistic RV in the neighborhood of above $3.00 USD!!!

Being the conservative investor I am I still think the RV will come in around .86. My reasoning on this is that there will be a raising of the rate over a period of months to the realistic valuation. Iraq, the UN and IMF, as well as the world bankers and market makers know that the vast majority of Dinar holders will exchange at the lowest denomination. This will allow for growth and a limited disbursement at the initial RV rate.

I post this knowing it will be picked apart by those with degrees in economics and those with supposed inside information. I personally do not have a degree in economics or banking but I have operated for the last 25 years as an entrepreneur and have been blessed to run several multi million dollar companies and organizations. This is common sense and market rationality in my personal opinion.

The news is good!! There is substantial reason to believe we shall see an RV between .86 and 3.00 soon and very soon!!

Peace, Out!!

I hope your right. My believe is that they will come out low first ( .25-1.00) to lure out the big currency with a lot of 000, and then, maybe in a year hit it big for the patient ones. So I recommend to save some for better times and you'll see I was right.

[wgb52]

You actually make a good argument for an RV @ 2 or 3 cents. Your assumption that the money supply is going to decrease when they remove the large bills is flawed. They are going to EXCHANGE big bills for small bills. I would be thrilled if the RV was more than $.10 but I see no way it would be possible to peg a greater exchange rate and still keep reserves in balance. Just my opinion, I think it will RV between $.01 and $.10 (which is still an incredible return!)

[Pexring]

Are we talking about Jimmy Buffet or Warren Buffet?

[MrRich]

Are we talking about Jimmy Buffet or Warren Buffet?

I'm talking about Jimmy Buffett. The rest are talking about Warren. According to Wikipedia Jimmy Buffett makes $100 million a year. That's plenty for me.

Buffett has taken advantage of his name and the fan following for his music to launch several business ventures, usually with a tropical theme. He owns or licenses the Margaritaville Cafe and Cheeseburger in Paradise restaurant chains. As a baseball fan, he was part-owner of two minor league teams: the Fort Myers Miracle and the Madison Black Wolf. Between his restaurants, album sales, and tours, he earns an estimated $100 million a year.

[zest4funds]

Are we talking about Jimmy Buffet or Warren Buffet?

Well Warren is the "Oracle of Omaha" and Jimmy is well, Jimmy... Jimmy may not be NEAR as rich as Warren but would it matter? (They are talking about Warren.) I'd be happy with the money either one makes.

And I'll be happy to take the RV at .86 or 3.86 tomorrow! lol. Enjoy!

[quadraph0nic]

I'm talking about Jimmy Buffett. The rest are talking about Warren. According to Wikipedia Jimmy Buffett makes $100 million a year. That's plenty for me.

Buffett has taken advantage of his name and the fan following for his music to launch several business ventures, usually with a tropical theme. He owns or licenses the Margaritaville Cafe and Cheeseburger in Paradise restaurant chains. As a baseball fan, he was part-owner of two minor league teams: the Fort Myers Miracle and the Madison Black Wolf. Between his restaurants, album sales, and tours, he earns an estimated $100 million a year.

LOL!! that was clever mr rich!

[Guest Ratatap]

RickNick, I always like a good analytical read and opinion - Thanks Bud...

GO RV !!!!!!

[Pexring]

Ya, both earn plenty of money for me. Very interesting that Warren Buffet believes in the Dinar. As for Jimmy Buffet I still have the Landshark beer bottle from the first time I ate at Margaritaville in Key West. Also bought a Margaritaville mouse pad from his trinket shop next door, which still sits beside my computer.

Edited October 30, 2010 by Pexring

[BMWman]

You actually make a good argument for an RV @ 2 or 3 cents. Your assumption that the money supply is going to decrease when they remove the large bills is flawed. They are going to EXCHANGE big bills for small bills. I would be thrilled if the RV was more than $.10 but I see no way it would be possible to peg a greater exchange rate and still keep reserves in balance. Just my opinion, I think it will RV between $.01 and $.10 (which is still an incredible return!)

wgb52,

You are correct and also incorrect. Big denoms will be exchanged for small denoms IN COUNTRY for those who use Dinar everyday. This is a 'wash' for in country exchange for the RV. However, how many investors outside of Iraq will exchange the big denoms for small? Basically, none. They will be exchanging for USD, Euros, etc. Those big denoms will then be pulled into the CBI through one of several possible scenarios/methods and destryoed; thus, removed from circulation and reducing the amount of Dinar in circulation. This will increase the value of the Dinar on amount in circulation alone.

This is all IMO only buts makes sense when you consider it a little.

BMWman

[Optimus Prime]

Sweet!