Alert of a Think Tank Discussion #0090

[vern]

This was just sent to me 10 minutes ago- check it out--Vern

The Revaluation plan for the Iraqi Dinar

Forum: da "Think Tank"

We had this in the beginning (@ rol) and bringing it back (to NNP). Use this forum for scenarios, and possibilities with supporting docs, articles and or facts to start a thread for the discussion. Only equations that have to do with the Investment.

I have a friend that is looking to decipher this piece. The was his email to me below. I told him let me email this out to all investors as this is a Interesting senario and possibilities as we look to support it with docs. ~Neno

Remember this report? Does anyone know where this report orignated with? If anyone does know who the person is could you have them contact me privately? Obviously this report is in sharp contrast to the original thread report.~wciappetta

***************************

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.

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 subsection of the original group that Iraq, State Department and IMF financial people bounce things off of.

(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.

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.

(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 redu

ce 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. 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 pri

vate 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

Neno & Team

God Bless You &

God Bless America

[truckerron49]

A great read. Thanks for posting......

[Brandon2230]

This is exactly to a T the economists post I read last year.. Anyone else read that Economist part I, II ect.?

[tampa1000]

I do remember this being posted, very interesting.

[Phoenix]

'Neno & Team

God Bless You &

God Bless America'

Now that's some funny stuff right there!

Yes all of that is correct but the Neno forum is owned by a dinar dealer and all they do is promote useing dinar dealers for exchange and push and promote their own "temporary store front cash in center".

So everything that is covered in that post and all of the positive results there of will not even apply for all of the members of that forum who use the private currency exchange to avoid useing the United States banks for exchange.

God Bless America my ass.

Man that is funny.

Phoenix

Edited December 7, 2010 by Phoenix

[blueskygal]

Well Phoenix, that may be so - that Neno site is owned by a dinar dealer. I do not see any pumping of a site nor purchasing dinar here at all though-no links, no pumping.

This was purely and economic discussion that I thoroughly enjoyed. This was and still is an excellent example of the intracacy of a currency reval.

I really wish we could all stop blaming people for trying to earn a living/profit from an opportunity. Isnt that what we are all here for? What makes you and I any different?

[Phoenix]

Well Phoenix, that may be so - that Neno site is owned by a dinar dealer. I do not see any pumping of a site nor purchasing dinar here at all though-no links, no pumping.

This was purely and economic discussion that I thoroughly enjoyed. This was and still is an excellent example of the intracacy of a currency reval.

I really wish we could all stop blaming people for trying to earn a living/profit from an opportunity. Isnt that what we are all here for? What makes you and I any different?

Your missing the point.

All of the positive points in that post will be subverted and made null and void by people avoiding the use of the banks to exchange the Iraqi Dinar.

What is explained in the post IS a blessing to the United States!

BUT if the banks are NOT used and the banks are avoided the positive points of this economic windfall for the US banking system are subverted.

What I am pointing out is how ironic it is for people who are active to push the subversion of the local banking system and the blessings it will create for the United States to then say: "God Bless America"

They are saying one thing while pushing another.

That's all.

Phoenix

[Hawaii K]

Blueskygal

Well Said.

I have no problem with anyone making money, as long as I make some too.

Aloha!

[mgh]

"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."

This is terrible news. We have someone who has supposedly been involved in this process from the beginning admitting that a lop has been part of the plan all along. Don't get me wrong, I'm invested in the IQD too, and I don't want a lop, but it sure seems like a lot of what we read is pointing in that direction.

[Soldiering4U]

I Agree with you Blueskygal, Phoenix has issues and has been drinking the "If We Invest in America And We Will Do Better" Kool-Aid far too long. News Flash- We have too many liberals in places of Power to do much better at this present time and quite frankly I am tired of them taking my hard earned money out of my pocket an putting it into theirs. As far as I am concerned I am keeping what is mine even if I have to move to a different country to keep it... I don't like the idea because plenty of my friends have shed precious blood, sweat, and tears for this country. My family has sacrificed too much with me being in the military for me to stand by and let them take the money I have and flush it down the toilet any longer. That is why Post RV I am getting out and moving far away until this place is better shape. Everything boils down to America Over Spends and then expects us, our children, our grandchildren and so on to foot the bill for stupid things like Government Ran Health Care.... No I am done, Finished, This is my last HORAH.... Once RV happens we are moving to a place that doesn't treat their citizens like trash while letting illegal ones in and rolling out the red carpet for them....

Sorry about that I just get tired of all the "Pay your taxes, Be a Patriot" Bull crap

This is a great post and is much needed for those who have only been doing this for a few months... It helps people wrap their head around the fact that their are other options and their are great ways of handling their money rather than CASH IN and buy everything in the world... Thx again for a great post

Forgive me for ranting... I am sure alot of you are mad now.... OH WELL!!!!

[splicer09]

"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."

This is terrible news. We have someone who has supposedly been involved in this process from the beginning admitting that a lop has been part of the plan all along. Don't get me wrong, I'm invested in the IQD too, and I don't want a lop, but it sure seems like a lot of what we read is pointing in that direction.

Because you are reading to much into it. Be a little more open minded and you will see NO LOP. Don't be soo worried that all you see is a LOP. Confident and secure you can be if you do some reading and there are a ton of posts to prove NO LOP.

I Agree with you Blueskygal, Phoenix has issues and has been drinking the "If We Invest in America And We Will Do Better" Kool-Aid far too long. News Flash- We have too many liberals in places of Power to do much better at this present time and quite frankly I am tired of them taking my hard earned money out of my pocket an putting it into theirs. As far as I am concerned I am keeping what is mine even if I have to move to a different country to keep it... I don't like the idea because plenty of my friends have shed precious blood, sweat, and tears for this country. My family has sacrificed too much with me being in the military for me to stand by and let them take the money I have and flush it down the toilet any longer. That is why Post RV I am getting out and moving far away until this place is better shape. Everything boils down to America Over Spends and then expects us, our children, our grandchildren and so on to foot the bill for stupid things like Government Ran Health Care.... No I am done, Finished, This is my last HORAH.... Once RV happens we are moving to a place that doesn't treat their citizens like trash while letting illegal ones in and rolling out the red carpet for them....

Sorry about that I just get tired of all the "Pay your taxes, Be a Patriot" Bull crap

This is a great post and is much needed for those who have only been doing this for a few months... It helps people wrap their head around the fact that their are other options and their are great ways of handling their money rather than CASH IN and buy everything in the world... Thx again for a great post

Forgive me for ranting... I am sure alot of you are mad now.... OH WELL!!!!

Great rant. I for one support you and I know a lot of others will too. Some are just too scared to make that bold of a statement. You go and enjoy life wherever it takes you. God bless.

[vern]

GEE I try to give and what happens- I get dumped on ---- THANKYOU - THANKYOU- -I will take that sitting down Please dont stand ---- If the econimists werent right i guess they would wrong wouldnt they? But if it sounds like todays news then i guess they are right. I also look at discussions- If we are talking about in a sense that it makes people sit up and think and makes people argue in a good sense then i think it is close enough like Damn is to swearing- ---- If you all dont like what i send in then beat me up and throw me away--( This is gonna hurt - right-?) - momma!!!! Anyway i posted this cause i thot it was close enough. So you now have reasoning behind it- now being Politacally right i guess you could say----Hey i dont care what ya,l think- i was just filling up space : But yall know that aint the truth anyway- huh---lol----- Have a great day people cause we can win this fight if we all pull together...Remember----WE HAVE THE FREEDOM TO FIGHT FOR OUR FREEDOM OR WE WONT HAVE FREEDOM------do it now in all things- Vern

[Phoenix]

Sorry about that I just get tired of all the "Pay your taxes, Be a Patriot" Bull crap

Ok....good luck with that!

[vern]

BLOGGER?

[grashopa]

Don't think for one second that our banking system isn't all over this. It SURE will be alot easier to just walk into our own bank, rather than travel and potentially put ourselves in harms way, just to do business with our buddies. You can also bet that Uncle Sam will make all means available to keep the IQD here, in the good ole' US of A.

And have any of ya'll checked on the DeLaRue machines??....They actually only read a UV mark, and it is actually a possibility that that UV mark can be duplicated and the machine athenticate something other than a REAL IQD note. Do some digging, and see for youself....

My point is...Once this becomes common knowledge, any bank can and will do our exchange..

GO RV!!

[Phoenix]

Don't think for one second that our banking system isn't all over this. It SURE will be alot easier to just walk into our own bank, rather than travel and potentially put ourselves in harms way, just to do business with our buddies. You can also bet that Uncle Sam will make all means available to keep the IQD here, in the good ole' US of A.

And have any of ya'll checked on the DeLaRue machines??....They actually only read a UV mark, and it is actually a possibility that that UV mark can be duplicated and the machine athenticate something other than a REAL IQD note. Do some digging, and see for youself....

My point is...Once this becomes common knowledge, any bank can and will do our exchange..

GO RV!!

Ahhh..very well said Grasshopa!

Support your local bank and the United States banking system!

Pay all due taxes as and when advised by the tax pro of your choice!

God BLESS America!

[blueskygal]

Phoenix, I just wanted to say that that cartoon was priceless! I dont know where you found it but it is RIGHT ON! Thank you :-)

[Soldiering4U]

it is cool vern once again he is in his own little world...

[muchodinaro]

Your missing the point.

All of the positive points in that post will be subverted and made null and void by people avoiding the use of the banks to exchange the Iraqi Dinar.

What is explained in the post IS a blessing to the United States!

BUT if the banks are NOT used and the banks are avoided the positive points of this economic windfall for the US banking system are subverted.

What I am pointing out is how ironic it is for people who are active to push the subversion of the local banking system and the blessings it will create for the United States to then say: "God Bless America"

They are saying one thing while pushing another.

That's all.

Phoenix

[screw the banks!/quote]

I Agree with you Blueskygal, Phoenix has issues and has been drinking the "If We Invest in America And We Will Do Better" Kool-Aid far too long. News Flash- We have too many liberals in places of Power to do much better at this present time and quite frankly I am tired of them taking my hard earned money out of my pocket an putting it into theirs. As far as I am concerned I am keeping what is mine even if I have to move to a different country to keep it... I don't like the idea because plenty of my friends have shed precious blood, sweat, and tears for this country. My family has sacrificed too much with me being in the military for me to stand by and let them take the money I have and flush it down the toilet any longer. That is why Post RV I am getting out and moving far away until this place is better shape. Everything boils down to America Over Spends and then expects us, our children, our grandchildren and so on to foot the bill for stupid things like Government Ran Health Care.... No I am done, Finished, This is my last HORAH.... Once RV happens we are moving to a place that doesn't treat their citizens like trash while letting illegal ones in and rolling out the red carpet for them....

Sorry about that I just get tired of all the "Pay your taxes, Be a Patriot" Bull crap

This is a great post and is much needed for those who have only been doing this for a few months... It helps people wrap their head around the fact that their are other options and their are great ways of handling their money rather than CASH IN and buy everything in the world... Thx again for a great post

Forgive me for ranting... I am sure alot of you are mad now.... OH WELL!!!!

Thanks for the post, but I'm with you, and I hear you loud and clear. There are millions of americans that feel this way, it's called the TEA PARTY!

[Munsch]

Stop the bickering please.

[tyro]

Somebody asked who originally posted this. This is what I THINK happened: I did a search and it appears it first was posted here by carlablum on April 1, 2010. inmarc may have posted it earlier on another site. It was posted later by k98nights and FrankKTF and others. Neno posted it later & added his/her name & info at the bottom. That's all the further back my search took me.