Diner RV Reality Check

[jmw]

Well jmw, I did not even elude to a substantial revaluation. The intent behind my p*$$ comment did not imply that it had any bearing on the monetary policy of Iraq. I clearly stated that the result of a LOP would damage their standing as a trading partner. There is nothing to say a revaluation could not come in as low as $.01, which is to the Iraqi people about 1,085 times better than their current circumstance. Yes, the final comment, as you so aptly put it, is pure speculation. However, if you will look at the language immediately prior to point number one you will see that the entire premise of my argument against a LOP was "In My Humble Opinion". I did not state anything as a fact, only an opinion, but thank you for being sensitive and kind hearted enough to attempt the discrediting of my "opinion", which, by the way, is still my "opinion". Have an awesome day amigo.

Fair enough…I apologize for trying to correct your opinion….i don’t have the right to do that and should not have.

[hopefullbk]

I still havent been able to find/see any verification that the US and China are heavily vested in Dinar, maybe I'm not looking in the right places. If anyone has that info a link would be awesome. No bashing please just want to see it in writing is all.

[Guest 666]

Hey Guest_13_*, I don't mind someone bringing correction where correction is due (in fact, I appreciate it when you help keep me on track), but I would ask that you include links to the proof so I can stay abreast of factual info. Thanks...

http://www.investorsiraq.com/showthread.php?142612-Economist-Explains-How-They-Plan-To-Have-The-IQD-RV&highlight=economist

[EBJNYC]

I am just curious. It is reported and documented that thre are 25 Trillion Iraqi Dinars in circulation. With the previous dinar there was 25 Billion in circulation. As a reffernece it is reported that the US has at the most 1.7 Trillion dollars in circulation. If you do the math on the oil reserves their total oil reserves at market price only add up to 12 trillion dollars (143 Billion X 85$/barrel) SOOOOO....if they revalue to 1$ per dinar... without lopping three zeros off the current circulating dinar that would make 25 TRILLION dollars worth of Dinar in circulation. Highly unlikely! Every Iraqi would become very wealthy along with those of us who drank the Iraqi Dinar RV Koolaid !! Nice dream....but not likely! Someone argue this point?

Yeah -- step away from the Kool-aid -- CENTRAL BANKS ARE NOTORIOUS LIARS regarding circulation amounts. Plus the TRUE money stock is hidden in AMBIGUITY -- always.

Edited November 13, 2010 by EBJNYC

[Richguy]

http://www.investorsiraq.com/showthread.php?142612-Economist-Explains-How-They-Plan-To-Have-The-IQD-RV&highlight=economist

This link has been posted dozens of times on every major dinar website out there. I believe it should be relegated to the 'internet myth' forum. It supposes a $1 RV in order to make this logic work. All the major players on here are assuming at least a $3 RV. Multiply all those numbers by 3 in that link and you begin to see how hard it is to believe in a straight 1 for 1 RV. I still think it more likely to see a currency reduction ratio as I posted here:

I would also consider a LOP and RV to between $3-$6 a possibility. You would actually make 3-5 times your investment in this scenario. 25,000 becomes 25 dinar. 1 dinar = $3+. I am confident we will see a dinar value in that range when it happens, how our current dinar translates into the new dinar is still anyone's guess. I don't care what kind of inside info you have.

SHOW ME ONE PROFESSIONAL ECONOMIST WHO BELIEVES AND CAN EXPLAIN THE LOGISTICS OF A STRAIGHT 1 FOR 1 CONVERSION TO THE NEW DINAR ALONG WITH A RATE OF $3 PLUS. IT JUST FLIES IN THE FACE OF BASIC ECONOMICS AND COMMON SENSE. I COULD BE WRONG, AND THIS IS WHY I WILL CONTINUE TO HOLD ONTO MY MILLIONS OF DINAR TIL ALL THIS PLAYS OUT.

[jmw]

I still havent been able to find/see any verification that the US and China are heavily vested in Dinar, maybe I'm not looking in the right places. If anyone has that info a link would be awesome. No bashing please just want to see it in writing is all.

sorry but their aren't any....it's all speculation and rumor....same with Donald Trump and Warren Buffet.

[Guest 69]

sorry but their aren't any....it's all speculation and rumor....same with Donald Trump and Warren Buffet.

Even if they did buy it, it was probably to sell and make a quick buck.

[GeologyGirl]

The whole point of bringing it in is so they don't ever have to deal with that currency again. Keep in mind they would like to get their money supply as small as possible. The 25K notes most of us have will be shredded or burnt at some point.

If the potential of the 25K bill wasn't going to be worth so much money... I would keep it because it is a great looking bill. To burn/shred it makes me feel kinda bad.

[pop]

I am just curious. It is reported and documented that thre are 25 Trillion Iraqi Dinars in circulation. With the previous dinar there was 25 Billion in circulation. As a reffernece it is reported that the US has at the most 1.7 Trillion dollars in circulation. If you do the math on the oil reserves their total oil reserves at market price only add up to 12 trillion dollars (143 Billion X 85$/barrel) SOOOOO....if they revalue to 1$ per dinar... without lopping three zeros off the current circulating dinar that would make 25 TRILLION dollars worth of Dinar in circulation. Highly unlikely! Every Iraqi would become very wealthy along with those of us who drank the Iraqi Dinar RV Koolaid !! Nice dream....but not likely! Someone argue this point?

[pop]

IT IS VERY SAD THEY DON'T TEACH RESEARCH AND MATH IN KENTUCKY ANYMORE. LOL,LOL

Hey Dan Pratically everyone on here have ask that question and been very unknowing about the investment but at this late date to go back and explain all the money figures on how we will all get paid even if Shabibi RV'S this thing at $5.00 or more the funds are there and it makes them $$$$ to value it at the reasonable amount of true Value of their Oil and even though they BASE THERE currency on the reserve of oil they still hold the spoils of EGYPT from when the people departed during Bible times and I might add Iraq was the location of the second Garden of Eden and they have some of the richest soil in the world and where the second largest agrculture producer in the world before the war..They hold more gold than any country in the world.

Dan after every war where a country has been liberated and formed their own GOvernment the currency have revalued and here you are talking about what will be the richest country i the world

. If you have purchased Dinar be proud of your choice and do a lot of reading about the area . I hope this helps ease your mind.Don't listen to these people who are always trying to put you down and talk negative about your decision. This event while most people don't even know even the one's who have been in it for a long time THIS EVENT IS A BIBLICAL EVENT FOR THE WORLD. IT IS IN THE BOOK BLessings to you. Rev Dan

[vibo]

Can an RV happen in Kentucky?

[Uncle Barkie]

What is a Diner?

Why would I care if my local diner rv'd... I don't eat there anyway

[pureau79]

Fair enough…I apologize for trying to correct your opinion….i don’t have the right to do that and should not have.

jmw that was a really cool apology and I am proud to accept it. There are few people that simply apologize without tying all manner of reasoning to an apology. It makes you a terrific person in my mind even if all we can do is agree to disagree over a few minor issues... Thanks.

[Triple xXx]

I am just curious. It is reported and documented that thre are 25 Trillion Iraqi Dinars in circulation. With the previous dinar there was 25 Billion in circulation. As a reffernece it is reported that the US has at the most 1.7 Trillion dollars in circulation. If you do the math on the oil reserves their total oil reserves at market price only add up to 12 trillion dollars (143 Billion X 85$/barrel) SOOOOO....if they revalue to 1$ per dinar... without lopping three zeros off the current circulating dinar that would make 25 TRILLION dollars worth of Dinar in circulation. Highly unlikely! Every Iraqi would become very wealthy along with those of us who drank the Iraqi Dinar RV Koolaid !! Nice dream....but not likely! Someone argue this point?

Did you forget to take into consideration the natural gas reserves as well? If the currency is not revalued, then what is your solution to the current value of the Dinar which is .000855 currently?

I do not understand why you got negative points for this. It seems as though anyone who questions or thinks outside of the box on this site is "stoned." Very sad! People are entitled to their opinions and this post was not rude or disrespectful.

[pureau79]

http://www.investorsiraq.com/showthread.php?142612-Economist-Explains-How-They-Plan-To-Have-The-IQD-RV&highlight=economist

Sorry 666, but your link is inaccessible to me. Maybe you would be willing to copy and paste the debunking info. By the way, I am not one of the $3.00 crowd. I will be tremendously satisfied if I walk away with a nice little profit on my minimal investment. $.30 to $.50 per IQD would be really awesome, but to double or triple my cash outlay is better than I initially imagined. My heart is settled on the win - win circumstance. Therefore, the debunking is really not all that important to me. The article you say is debunked was the catalyst that initially propelled me to a greater understanding of the dinar world.

I copied that for KentuckyDan to read as a jump off point because for me it helped settle some of the many questions I generated in the begining of my ride on this up and down roller-coaster. It left me with questions, but focused in a new way and I felt it may help Dan and others find a focus of their own. There are several key individuals who have consistently helped me formulate a pretty solid understanding, but I was unable to comprehend most of it until I read the article I posted (which you are content to label "debunked") because it made sense whether it was actually factual or not. Maybe that makes no sense to you, but to me it did.

Let me be the first to invite you to permanently bring your debunking skills to DinarVets (does your name mean that you are only a browser here or are you a member of our really cool family?). I mean really... anyone claiming to have all the answers to the great dinar mystery is either a charlatan or a fool with a hyperinflated self image, so we need all the research help we can get. Just don't be a drag and make me sorry for extending a warm invite to you...

By the way, it really was a rhetorical question. I've already checked the "Members List" and your name is not there. To me that means you are probably just trying to create chaos and an air of mistrust among the membership here...

Have a great day.

[Guest 77]

In our 40+ year career as a Retirement Consultant we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

Now you know it's made up a retirement Consultant at the age of 25..............who dreams this up must be working at Disney

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

(1) He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in (1) controlling the rate of inflation, (2) controlling the value of the IQD in a declining economic environment and (3) implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a s

[1967L71]

guest77T

That was absolutely the best read that I have ever read on this site, and it explains eveything to a T. GO RVVVVVVVVVV!!! Nuff Said.

thanks for the post

[pureau79]

Okay 77, the "economist's" letter is virtually debunked...

Thank you for the observations. All that I need now is to follow the bullet points out that I have no specific knowledge of.

However, the first point already has no practical value or meaning. This is moot because retirement and continuing to work lends itself to the idea of consultation. In my industry, I know of many retirees who have continued working as consultants and making a heck of a lot of money doing it. The fed uses lots of consultants.

[Triple xXx]

After reading this, do you feel that the value of the Dinar will continue to increase. Many feel that the RV will be incremental, increasing in smaller increments rather than one jump. I read in the article that they felt that the Dinar could be the highest valued currencies in the world.

Once an RV occurs, do you feel that it could RV again, and again?

AND......What is an LOP? I hear this a lot. I know that is has to do with removing the 0's but I do not fully understand it.

[jmw]

After reading this, do you feel that the value of the Dinar will continue to increase. Many feel that the RV will be incremental, increasing in smaller increments rather than one jump. I read in the article that they felt that the Dinar could be the highest valued currencies in the world.

Once an RV occurs, do you feel that it could RV again, and again?

AND......What is an LOP? I hear this a lot. I know that is has to do with removing the 0's but I do not fully understand it.

It has been gradually going up over the last 7 years and may certainly continue to do so as they improve their oil production and GDP....they will also need to address the amount of dinar they have in circulation....a "lop" is actually a redenomination....which historically is when a country replaces their currency with a new one reducing the amount needed to make purchases but having a net zero affect on the value of the currency. Remember the new peso that mexico put in place a few years back? They have stated that is their plan....if they do this it will mean a $25 dinar will be the same value as a $25k dinar. There are plenty of people on this forum that will argue that they won't or can't do it or that it means they will only remove the notes with three zeros....but i've never seen anything to back this up. It won't be a bad think if they do it and it may help improve the value of the currency over the long haul....they only issue is having to exchange what you have for a new currency...don't know if that will be easy to do or if there would be any fees to do so.

[KentuckyDan]

Thanks to all who replied. Lots of good information was provided. I did spend the weekend reviewing other topics to gather additional information.

I am interested in hearing other opinions on the following subject. Does it stand to reason that the CBI would stop all currency auctions for a time period leading up to a RV event??

Thoughts?

[marcuscurtis]

I am just curious. It is reported and documented that thre are 25 Trillion Iraqi Dinars in circulation. With the previous dinar there was 25 Billion in circulation. As a reffernece it is reported that the US has at the most 1.7 Trillion dollars in circulation. If you do the math on the oil reserves their total oil reserves at market price only add up to 12 trillion dollars (143 Billion X 85$/barrel) SOOOOO....if they revalue to 1$ per dinar... without lopping three zeros off the current circulating dinar that would make 25 TRILLION dollars worth of Dinar in circulation. Highly unlikely! Every Iraqi would become very wealthy along with those of us who drank the Iraqi Dinar RV Koolaid !! Nice dream....but not likely! Someone argue this point?

First let's correct a few assumptions

25 trillion dinar is reference to total currency physical, electronic, bass supply, and monitized debt. 80 percent of their currency is physical 20 percent electronic (smart cards ect). Our us money supply is higher than 1.7 trillion. 1.7 trillion is called M1 money supply. That is the total physical currency in print by the Feds. ONLY 3 PERCENT OF AMERICAS CURRENCY IS PHYSICAL CURRENCY! That is it. The rest is electronic or digital credits. M2 money supply is the physical currency and the electronic currency. That equals around 8.5 trillion. This is known as base currency. Now add in Fractional Reserve banking as outlined in Modern Money Mechanics now you have a total possible US currency supply of 85 trillion with the old 10 percent reserve llimit. However the ten percent reserve has been removed.

under Fractional Reserve Banking debt is converted to assets and monitized. look at the debt clock.

http://www.usdebtclock.org/

No reserve limits

http://www.dailypaul.com/node/65803

You mentioned oil but you completely forgot about natural gas. Iraq has monitized it's natural gas, and they signed a deal with shell for 17 billion to extract their natural gas. total caculated amount is 112 trillion cubic feet.

http://www.ibtimes.com/articles/65468/20100924/saudi-arabia-gas-output-crude-expansion-oil-iran-qatar-iraq-russia-opec-lng.htm

As the article says

"Iraq, which successfully auctioned more than ten of its mega fields last year to international players, eying to leapfrog its oil exporting neighbors, has also turned its attention on gas production potential.

Iraq sits on 112 trillion cubic feet of natural gas reserves and will like to monetize its huge gas reserves in order to further diversify its revenue basket.

The country, which currently lacks technology and infrastructure to capture associated gas, said in July it approved a $17 billion deal with Shell to tap associated natural gas in four southern oil fields.

According to Energy Intelligence, despite an estimated 112 trillion cubic feet of gas reserves"

This does not even mention sulfer crops, or the 40 billion they made at currency auctions.

You are only taking America's currency into account when you consider the revalue. The Revalue is a gloal event and you would need to consider the entire amount of the global currency supply not just the US

I am working on a post that will address all of the things you brought up and explain why there WILL BE a revalue, (still researching with proper official links) but I will provide you with one last link just so that you can be more informed as to what is really going on in Iraq!

http://dinarvets.com/forums/index.php?/topic/40156-understanding-money-and-war/

[KentuckyDan]

Marcuscurtis

Thank you for your response, Your efforts are most appreciated. I look forward to reading it this evening.

Regards

Dan

[marcuscurtis]

How can you compare one of the leading economies(U.S.) to how Iraq is currently? The reason the U.S. can do fractional banking is due to its credit rating and strong economy.

Do you have a link to the monitization? the link you provided only says they WANT to, not that they have.

According to Energy Intelligence, despite an estimated 112 trillion cubic feet of gas reserves, Iraq is producing only 1.5 billion cubic feet per day, of which some 700 MMcf/d is flared.

And you left that red section out, im sure it was a mstake. So I helped you out.

WOW CPT-Howdy thanks for the help I am sure that is all you were trying to do

Look at this

http://www.eia.doe.gov/cabs/iraq/NaturalGas.html

To reduce flaring, Iraq has been working on an agreement with Royal Dutch Shell to implement a 25-year project to capture flared gas and provide it for domestic use. Iraq’s cabinet gave preliminary approval for the $17 billion deal covering development of 25 – 30 Tcf of associated natural gas reserves in Basra province through a new joint venture, Basra Gas Company. The agreement, which originally was to cover all of Basra province, has been modified to include only the associated gas from the Rumaila, Zubair, and West Qurna Phase I projects. Implementation of this agreement is necessary for the new oil development projects to go forward.

Upstream Development

Iraq has planned an upstream bidding round in late 2010 for three non-associated natural gas fields with combined reserves of over 7.5 Tcf. This will be the third hydrocarbon bidding round conducted by Iraq, following two earlier rounds that were held to develop Iraq’s oil fields. All of the companies that prequalified to bid in the two earlier rounds will be invited. Iraq has committed to purchasing 100 percent of the gas.

Export Plans

Plans to export natural gas remain controversial due to the amount of idle and sub-optimally-fired electricity generation capacity in Iraq - much a result of a lack of adequate gas feedstock. Prior to the 1990-1991 Gulf War, Iraq exported natural gas to Kuwait. The gas came from Rumaila through a 105-mile, 400-MMcf/d pipeline to Kuwait's central processing center at Ahmadi. In 2007, the Ministry of Oil announced an agreement to fund a feasibility study on the revival of the mothballed pipeline.

Iraq has eyed northern export routes such as

the proposed Nabucco pipeline through Turkey to Europe, and in July 2009 Prime Minister Nouri al-Malikie suggested that Iraq could be exporting 530 Bcf per year to Europe by 2015. A second option is the Arab Gas Pipeline (AGP) project. The proposed AGP pipeline would deliver gas from Iraq’s Akkas field to Syria and then on to Lebanonand the Turkish border sometime in 2010, and then on to Europe.Other proposals have included building LNG exporting facilities in the Basra region.

Now look at this

http://www.iraq-businessnews.com/2010/11/15/huge-gas-deals-signed/?utm_source=twitterfeed&utm_medium=twitter

Thats right, 530 billion cubic feet per year

Iraq says they would like to monitize their natural gas. Am I to Asume you don't think they would be successful in this venture?

However I did say that they have monitized. You were right in this. I really meant to say they are working on it. That's what I get for not proof reading and also posting on a forum that have no edit features. I also misspelled global. I spelled it gloal. I am surprised you did not point that out.

I was comparing the US to how Iraq will be more than what Iraq is currently. even so,.....Is there some law that says I am not suppose to do this? After all isn't the first post in this thread doing the same thing? Is this not the subject matter at hand?

It amazes me that some people compare the two economies (us and Iraq) and say there is no chance to RV, but when I compare the same two economies to shows there will be an RV someone cries foul!

But your right about one thing, You need to look at the entire global economy not just the US economy to see the revalue. by the way the US is going it will not be the strongest economy for long. did you not click the other links? or did you just click the link you found a mistake in?

[LTMC]

In our 40+ year career as a Retirement Consultant we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

Now you know it's made up a retirement Consultant at the age of 25..............who dreams this up must be working at Disney

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

(1) He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in (1) controlling the rate of inflation, (2) controlling the value of the IQD in a declining economic environment and (3) implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a sD$kn of the original group that Iraq, State Department and IMF financial people bounce things off of.

You said he was retired...........

(2) We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

If it's printed waiting to replace worn out notes it's not in circulation...........so he does not have a clue what he is talking about

The export oil revenues are still under the control of the UN supervised DFI, and Iraq only gets roughly 30% of the fair market value of the oil they are selling, which is to be used only for budgetary expenditures. Since Shabbi, the head of the CBI, knew he couldn’t get anymore cash flow out of the controlled revenue system the IMF/UN had him under, he opened a currency sales window at the daily auctions to tap into the wallets of the worlds speculators. Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

Shows he knows nothing of how the Auctions work!!

The CBI sells $$$$ to buy NID from the banks for the MOF to spend internally..........cause the IMF gets paid in $$ for the oil................this clown has really done his home work!

(3) We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddams picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

(4) The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion – $1.7 trillion IQD.

(5) Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradeable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it’s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country’s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange.

This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators.

The complete discussion was rather lengthy so here’s the executive summary of how the exchange should work with IQD owned by a US speculator:

(1) IQD is released internationally with an exchange rate of $1 USD = 1 IQD

(2) IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y’s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate – Bank Private Rate – Bank Public Rate) imposed, but he had no input on that subject.

(3) The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn’t any country whose currency was perceived as being equal to or stronger than the USD.

You will find plenty of currencies valued higher than the $ here!

http://www.imf.org/external/np/fin/data/rms_rep.aspx

The IQD with it’s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it’s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can’t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place.

(4) Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury.

(5) The Federal Reserve under a controlled redemption plan supervised by the IMF, will use it’s foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc.

This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications.

The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example:

(1) Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account.

(2) Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model.

(3) The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X 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).

(4) The Fed’s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. 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.

(5) The $10,000 order is filled with 200 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 $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)

(6) The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD.

Simply put, it cost Iraq $130 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 $10,000 worth of oil for a net cost of $6,500. 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.)

Now let’s really stir the pot by:

(a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

( Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros.

© Also execute the plan Iraq 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.

(d) To add a little more intrigue have the CBI 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.

We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it’s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990.

This has already posted............and is horse ~#~T

I wont pull it ALL to bits..............my stomach hurts to much from

EB