Dinar News Iraq central bank takes steps to

[msm2137]

The lop doesn't make sense to me because it would be the same money.They would be better off by just slowly raising the value of their currency and as they bring the value up then they can produce the smaller bills to phase out the large ones. This would produce no panic in the market and bring more investors to the table.

[Canadian]

Kent you seem to have more knowledge than any other post that I have read on this site.

As for Sherlock, I am not familiar with him, but chances are that if he stated his opinion and the opinion

was doubting the rv he was probably booted.

Thanks Kent I look forward to reading more of your posts, too many "big dreamers" on this site and so

many rumours.

[Torey0112]

Unfortunatly I think Kent has a valid point that nobody can debunk.. Yet. Question??? Why would the CBI have daily auctions selling dinar at 1170.. Selling so cheap..If Iraq is going to r/v any day now(according to rumors) .IMO.. A lop makes sense.. If iraq knew ahead of time they were doing a lop.. Then selling dinar at daily auction for so cheap makes sense. They break even(so to speak). Then do an r/v ..or increase value by going on forex.. This is good outside the box thinking by Kent .. And I wish this could be debunked cause I would like to be rich.

[aurdemus]

if it does lop then that means all the bribe money the polititions have gotten will be for naught. every leader in iraq including the bankers will loose all their money.

what corupt official is going to pass a plan that will leave him with less money than when he started?

[Mr. Phonics]

Kent, I hate to disagree with you, but I am glad Sherlock is gone. He might have posted things that did make one think, but he was stirring up too much trouble. He wasn't trying to be helpful, just a troublemaker. This, of course, is just my opinion.

[hope4sas]

This article was originally posted in August 2008, I think it's pretty outdated

[rt59]

hope4sas..I hear you, but the question is even though this article is over 2 yrs old, are they and have they committed to rebasing the currency? Said they are in no hurry to get rid of the big notes and will take their time doing it. I hope that it RV's for at least a dollar, but this is something that should be researched. Is it (rebasing) a policy that they committed to after this article? Any evidence or no evidence of this taking place? IMO sounded like they were serious about it back then. IMO the calculations do not make sense for a huge RV and the resulting astronomical increase in the value of currency in circulation (if really in the tens of trillions). Hope I am wrong. Thoughts any one?

[Kent]

And I wish this could be debunked cause I would like to be rich.

Me too, and I'm still looking for someone to offer something to change my mind. Got bills to pay...

[Kent]

Unfortunatly I think Kent has a valid point that nobody can debunk.. Yet. Question??? Why would the CBI have daily auctions selling dinar at 1170.. Selling so cheap..If Iraq is going to r/v any day now(according to rumors) .IMO.. A lop makes sense.. If iraq knew ahead of time they were doing a lop.. Then selling dinar at daily auction for so cheap makes sense. They break even(so to speak). Then do an r/v ..or increase value by going on forex.. This is good outside the box thinking by Kent .. And I wish this could be debunked cause I would like to be rich.

Torey, It would take some looking, but on the IMF site I believe I recall that they are currently controlling the rate that is being offered. It is not really a free market auction, really only a fixed market sale. For a while they indicated that they intended to increase about 6% per year. They did a big evaluation and report (see prior link) in December '07 and December '08. There was no similar report in December '09. Frankly, I find that interesting and wondered if that means that some substantial action was pending (my take, lop and rv?). It is strange to me that they didn't publish a new report in December '09. Inquiring minds would like to know...

[grandinar]

Is this true. Well we will still make a profit i think

[Kent]

Kent, I hate to disagree with you, but I am glad Sherlock is gone. He might have posted things that did make one think, but he was stirring up too much trouble. He wasn't trying to be helpful, just a troublemaker. This, of course, is just my opinion.

Phonics, thanks for the opinion. Sherlock got a little "in people's face", but offered great documentation and logic. I would sure appreciate yours on this subject. I am sincere in looking for someone to tell me that his (and my) thinking is wrong. Really. Could you offer anything on the subject? No disrespect intended at all.

[Kent]

This, of course, is just my opinion.

By the way Phonics, I tried to download a spell checker but couldn't get it to work. You were an inspiration....

[Canadian]

Enjoy your posts Kent. Have you visited "chat"?

You would have a lot of people "stirred up", they don't like to hear negative, which is sometimes the truth.

[eagled1954]

I think the old article is still relevant because I've never seen an article that clearly stated an intent to revalue rather than lop. I have seen things that say they want the value to increase, but not a declared revalue. ...but if anyone has one please post it.

Kent,

If an LOP does occur, are our investments effected by an LOP if they are held in a bank account? If there is a 3 0's LOP, are 3 0's removed from the digital value held in a bank account? Does 1,000,000 IQD become 1,000 IQD when it is held in a bank account?

Thanks Kent

[Tommy]

look. they are not going to lop but fearmongers love to keep coming back to this. you are wasting your time if you are worried about a lop. seriously. there may be an agenda to take the large notes out of common circulation after the rv, but even that is speculation. but a lop? no way man. lops are for resource poor and/or otherwise economically underperforming nations experiencing high or hyper inflation. there are posts in here all the time from people who take the total amount of dinar in circulation and multiply that by an rv value and then make statements about how a high rv would make iraq the richest nation on the planet ...and it just does not work that way. in the first place, it is naive to think that everyone, every country, and every entity holding dinar will cash out on a high rv. iraq just happens to be the hot spot of invesment hot spots on the planet right now. there are hundreds upon hundreds of billions of dollars being spent on everything from oilfield extraction to satellite communication. the value of the dinar, at the time of rv, is merely a starting point, and most people expect the value to increase dramatically over time ...and probably pretty quickly. kuwait currently has the highest valued currency, but in the long-run kuwait doesn't have JACK compared to iraq. kuwait is like a double cheeseburger from McDonalds and iraq is a 16oz. filet minon, but you have to wait longer for the chef to prepare the filet.

anyway, i digress, but seriously, this stuff about a lop that keeps popping up is just ridiculous. unless there is successful coup by, say, the baath party ...or something even crazier than that happens - and i am not saying that it can't, just that it probably won't - everything is cool and you don't have to worry about a lop.

[Mr. Phonics]

Phonics, thanks for the opinion. Sherlock got a little "in people's face", but offered great documentation and logic. I would sure appreciate yours on this subject. I am sincere in looking for someone to tell me that his (and my) thinking is wrong. Really. Could you offer anything on the subject? No disrespect intended at all.

Kent, I do not have any documentation to provide to you. Let's look at the facts, North Korea and Mexico are two examples of a country doing a lop to their currency. These countries have the following in common: high poverty (much higher than Iraq's rate), high inflation, and no resources to provide to the outside world. Iraq has unveiled a plan to reduce poverty, they have kept inflation pretty controlled and Iraq has a big resource to bring to the world. Also, Iraq is developing more resources to bring to the world. This, again, is just my opinion.

[Kent]

Enjoy your posts Kent. Have you visited "chat"?

You would have a lot of people "stirred up", they don't like to hear negative, which is sometimes the truth.

Been on chat quite a bit, but stay fairly quiet. I'm not real quick with a keyboard and not sure I'd do very well "under fire". I would also hate to mess up the atmosphere of the room. People really enjoy the relationships there. I don't want to be a Pied Piper of Pessamism. I am just looking for assistance in researching the investment.

[Kent]

Kent,

If an LOP does occur, are our investments effected by an LOP if they are held in a bank account? If there is a 3 0's LOP, are 3 0's removed from the digital value held in a bank account? Does 1,000,000 IQD become 1,000 IQD when it is held in a bank account?

Thanks Kent

In Adam's writing about Warka, he discusses a senario where they do an in-country-only currency exchange and describes that as a main reason for an in-country account. That sounds like a different kind of deal than a "lop". I believe if it were a true "lop" - in order to follow the logic of a value neutral exchange, they would delete zero's in an account as well. That also means in a true lop all currency would change out - even lower denominations. Frankly, though I don't know for sure on your account question.

[MariaSoledad]

Bringing old news to the table does not reflect the present.

[Kent]

Bringing old news to the table does not reflect the present.

MariaSoledad, I believe his point was that this IS old news from 2 years ago that would take about 2 years before final implementation and he is questioning whether that is still a present possibility.

[GTO]

look. they are not going to lop but fearmongers love to keep coming back to this. you are wasting your time if you are worried about a lop. seriously. there may be an agenda to take the large notes out of common circulation after the rv, but even that is speculation. but a lop? no way man. lops are for resource poor and/or otherwise economically underperforming nations experiencing high or hyper inflation. there are posts in here all the time from people who take the total amount of dinar in circulation and multiply that by an rv value and then make statements about how a high rv would make iraq the richest nation on the planet ...and it just does not work that way. in the first place, it is naive to think that everyone, every country, and every entity holding dinar will cash out on a high rv. iraq just happens to be the hot spot of invesment hot spots on the planet right now. there are hundreds upon hundreds of billions of dollars being spent on everything from oilfield extraction to satellite communication. the value of the dinar, at the time of rv, is merely a starting point, and most people expect the value to increase dramatically over time ...and probably pretty quickly. kuwait currently has the highest valued currency, but in the long-run kuwait doesn't have JACK compared to iraq. kuwait is like a double cheeseburger from McDonalds and iraq is a 16oz. filet minon, but you have to wait longer for the chef to prepare the filet.

anyway, i digress, but seriously, this stuff about a lop that keeps popping up is just ridiculous. unless there is successful coup by, say, the baath party ...or something even crazier than that happens - and i am not saying that it can't, just that it probably won't - everything is cool and you don't have to worry about a lop.

I agree with you, Tommy, this subject keeps coming back to the surface which makes no sense concerning Iraq. This article's date was updated in 2008 when I read it, also it was a couple of years old then so I think it goes back to around 2005 or 2006 when Iraq was experiencing hyper-inflation. It was re-used by the news media and you know the rest of the story. I find interesting what a friend said in a post: "Have you ever been to the middle east?

I have.

Both Kuwait, and Iraq.

IMO yes, Iraq would definitely need to increase their "purchasing power" (read RV) to become anywhere near as wealthy as the tribes in Kuwait.

Why?

Because unless you have seen the wealth of the Kuwaiti's up close and personal, you have no clue what it really is. You can read articles, and look at pictures all you want, but until you witness that kind of opulence with your own eyes, well, you just dont "get it".

"You dont carry suitcases full of cash in a "rich" society. You have a currency with a high value.

I dont think I have ever heard anyone say that ALL Iraqis were going to be wealthy. There will be different classes of people just like everywhere else. Only in the middle east those different classes are miles further apart than western societies. IMO the fighting for who exactly will be getting the biggest pieces of the Iraqi oil pie, is still ongoing, and our biggest hold up.

The ways of the middle east are beyond the comprehension of most who have not spent significant time there. It truly is a different world. Western ideas on society do not apply."

So you see Tommy, Kent and all, who are looking for the answers to the big puzzle, take it from my friend, someone who was there, Iraq is not going to do things the way we think it should be. They may do something that would work as a lop would, by removing the 000 bills by cash-ins, but keep in mind, if Iraq has 18 trillion in circulation then through conversion they only have 18 billion dollars in circulation. They are getting the dollar rate for their oil, then it begs a question. Can they run their country with the M1 and M2? (money in circulation and money in reserve) I think not, and if they do an RV the way we wish they could, say 1-3 dollars, then they would have super high inflation and the dinar would be right back where it started, 4000 to the dollar. . . Does it make sense to open a checking account and have enough to run the household when a person gets started in life? Not almost, those checks would bounce to the moon. It takes time to build the money to the point where its not necessary to penny pinch. With that said, it will take a heck of a lot more time for Iraq to get the oil out of the ground and thats what all of the Oil investments are about. The answer is through slow growth or as fast as they can get their infrastructure, Industry along with national security under control. Sorry to be so long-winded. JMO

[Kent]

look. they are not going to lop but fearmongers love to keep coming back to this. you are wasting your time if you are worried about a lop. seriously. there may be an agenda to take the large notes out of common circulation after the rv, but even that is speculation. but a lop? no way man. lops are for resource poor and/or otherwise economically underperforming nations experiencing high or hyper inflation. there are posts in here all the time from people who take the total amount of dinar in circulation and multiply that by an rv value and then make statements about how a high rv would make iraq the richest nation on the planet ...and it just does not work that way. in the first place, it is naive to think that everyone, every country, and every entity holding dinar will cash out on a high rv. iraq just happens to be the hot spot of invesment hot spots on the planet right now. there are hundreds upon hundreds of billions of dollars being spent on everything from oilfield extraction to satellite communication. the value of the dinar, at the time of rv, is merely a starting point, and most people expect the value to increase dramatically over time ...and probably pretty quickly. kuwait currently has the highest valued currency, but in the long-run kuwait doesn't have JACK compared to iraq. kuwait is like a double cheeseburger from McDonalds and iraq is a 16oz. filet minon, but you have to wait longer for the chef to prepare the filet.

anyway, i digress, but seriously, this stuff about a lop that keeps popping up is just ridiculous. unless there is successful coup by, say, the baath party ...or something even crazier than that happens - and i am not saying that it can't, just that it probably won't - everything is cool and you don't have to worry about a lop.

Tommy, serious question - not trying to lock horns... Are you aware of a single incident where there was a large RV? I would love to eat my words and just accept in faith that it has been done before - so it can happen again.

There have been 70 lops since 1960. I can't find info on RV's.

[seanlibbert]

Tommy, serious question - not trying to lock horns... Are you aware of a single incident where there was a large RV? I would love to eat my words and just accept in faith that it has been done before - so it can happen again.

There have been 70 lops since 1960. I can't find info on RV's.

My point exactly. Touch

[shannybelle27]

My point exactly. Touch

[Kent]

I thought that kuwait had an rv???

From seeing something else I read, (I think it was Adam), I believe Kuwait was more of a floating increase based on market value rather than a government declared change in rate like the one we want to see in Iraq. I recall someone saying they bought at like $.06 and sold over $3.