Compelling argument for the LOP theory

[joeintt]

My oppologies if you haven't posted this story as a post before but i'm pretty sure it was disscussed in a post .You may not have started the post but i do remember this story .That being said.My posts were directed towards the idea of the post being illogical not that your freind didn't tell you these things or that he does'nt beleive everything he has told you.Just saying it does'nt add up ! I re read my post and can see how it would come across rude.For that i opologize sincerely. But i do totally disagree with some of your freind 's intell he has given you.I however am not justifying an emotional response to the info that was a offensive position i took instead of explaining my thoughts more clearly on the subject . As i was writing i was being sarcastic [my form of humor] it came across as personal toward your freind and you jointt. I will do better to govern myself in the future when taking an advasarial position on a subject .Thanks for the attitude check.PEAce

You are even a bigger man in my eyes now......peace my brother.

[Anita]

Ask your friend this-So what happens to the 000`s in their bank acounts over there?

YEAH! I WOULD LOVE TO KNOW WHAT HAPPENS TO THE 000'S IF SOMEONE HAVE THEM ON THEIR BANKACCOUNTS?

[Rome M]

Well, we can also look at it this way;

Say that CBI had, in their vault, 25 BIL IQD when it was valued @ $1.79 USD per IQD (1995, according to Oanda)

This would have their USD value of 44 BIL.

THEN...........UN SANCTIONS...........SADDAM CRAP...........IMF...................BAMMM!!!!!!!!..................

Today their same 25 BIL IQD is now worth a measily 21 MIL USD.

An entire OIL rich country reduced down to the value of Tiger Wood's YACHT............

NOW, WHY ON EARTH WOULD THIS COUNTRY REDENOMINATE THEIR NEW CURRENCY BY 'LOPPING' THE ZEROS OFF LIKE SOME PEOPLE SAY???????

Their 25 BIL IQD becomes 25 MIL NID (NID for sake of another name), but it STILL only worth 21 MIL USD.........

They are out damn near 43 BIL USD, they have not recovered from sh**.

They are still in the same boat as they were in during SADDAM and the UN sanctions.

The entire purpose is to recover what was lost in the war and sanctions, just going back to normal life PRIOR to Saddam.

IF THEY LOP, THEY DO NOT GAIN BACK WHAT WAS RIGHTFULLY THEIRS BEFORE THE SANCTIONS....

The same person who believes they cannot become rich overnight (even with waiting, I mean overnight as in the RV occurs instanly all over) should be asking the people who were holding on to millions of dollars in IQD the day before the sanctions, HOW CAN THEY POSSIBLY LOSE MILLIONS OF DOLLARS OVERNIGHT?!?!?!?!

wake up america

Edited January 20, 2011 by Rome M

[BadCobra]

Agree with you!

See also my post:

I just cannot see them doing a straight-up RI, nor an RV without a LOP, no matter how much I despise that outcome. I was very hesitant to post as well (because I thought I'd get hammered with minuses), but there it is...

Cheers!

[matus55]

with what you are saying 50.00 become 5.00 i dont know just asking a nickel looks strange to me in that scenario. i mean if a 1,000.00 becomes 100.00 would it not work that way?

First of all a 50.00 only has 2 zeros and so does the 100.00

They are talking about the 1,000 - 5,000 - 10,000 - 25,000 dinars

So 1,000 = 1 dinar - 5,000 = 5 dinars - 10,000 = 10 dinars - 25,000 = 25 dinars

[Captjohn]

Doesn't make sense. The LOP is used (has been used) primarily in markets with hyperinflation. That does not apply here.

[andy3978]

OANDA did mention that the CBI is planing the lop in 2010, we see thats did not happen though. Doesnt make sense for an oil rich country to make their currency worthless by lopping it.

It also doesnt make sense to have all that NID printed by state of the art means only to chop 0's off of it...they'd have just made smaller denominations when they made the new money.

However by RV'ing the the IQD the CBI would essentially turn damn near their whole population into millionaires and I'm sure a bunch would leave Iraq after doing so. Also they'd make many infidels very wealthy as well.

I dunno.

As with all of you I'm praying to a RV asap

[Iraqi Queen]

I got a call this afternoon from a friend and was given a perspective on the IQD that I do not want to believe.......but it does make sense.

My friend's father is an iraqi in iraq and I do trust his opinion...even if it is not what I want to hear!!! (In a previous post by me he shared with me his family's perspective on the RV of the IQD - he said it would happen for no other reason than one of the Iraqi people's pride in the Middle East)

I was told that the LOP plan is real and will be acted on by the CBI soon. I tried to share with him the many post and views all over the sites and gurus about how it would be difficult to manage a $25K IQD note and a $25 IQD as they would be equal in value, etc. I also shared all of the opinions shared about the LOPtalk just being a smoke screen, etc. but he was able to answer every point I raised with an equally compelling argument and perspective.

He then said to me the following will be the sequence of events with regards to the IQD:

1. The 3 zeros will be LOPPEd off of the current notes that are in circulation......yes, the $25K IQD will be treated as a $25 IQD, $10K = $10, $5k IQD = $5, etc.

2. The exchange rate of the IQD to USD will be RV to 1 IQD = 0.86 USD.

3. The smaller notes will not be issued at this time (that is why we do not see them anywhere - not even an iraqi bank teller has taken a picture and posted it, etc.)

4. Prices on everything will be immediately reduced by the 3 zeros - so it would be easy to "reprice" the whole country overnight.

5. As fast as the 3 zero notes are cycled through the banks they will not be permitted back onto the streets.

6. The 3 zero notes will be given 3 - 6 months before they become worthless. That way everyone will have ample time to "exchange" their notes with 3 zeros.

7. At that point in time the smaller notes will then be released into the iraqi economy.

8. Then the exchange rate of the IQD to the USD will be allowed to float to the true value of the IQD (speculated to be around $1 IQD = $3.22 USD).

9. Lastly, this is why the CBI is not too concerned in rushing to RI/RV since they will not be exposed by all of the IQDs that all of us (outside Iraq) have bought. They will implement this plan when they are good and ready - allbeit very soon.

I am now more confused than ever. I deliberately chose to wait until now to write this post because I tried to kick the conversation around in my head - I was looking for the loop holes in his point of view.

I decided to go ahead and post this because I really want to get the views of the other responsible posters on this site. I know I will also get the many negative (-) points from those folks who JUST DO NOT WANT TO HEAR THIS TYPE OF THING......well go ahead and hit the (-) then....you know that you cannot help yourself.

But, to the responsible poster here, please read the post and share you perspective on this point of view.......especially if you can negate the theory presented here. I am hoping that his theory/perspective is flawed and that you can share another argument to counter this opinion.

Be blessed

Joe

Ps: notwithstanding his point of view I do still believe that it will be a straight out RV but probably a rate now lower than the $1.00 mark as opposed to my previous thinking of over $3.00.

Please share your thoughts

Joeintt,

I am Iraqi and all of my friends and family in Iraq are telling me the same thing!

I still do not know how they will handle the 250 notes that we have. Will they make that .25 cents?

I was hoping and believing that they will exchange our money first, then distribute the new currency.

My husband has been saying this all along and if this is true, we are all going to be sick!

I guess we will have to wait and see!

[Slaydadea]

I don't see it going down that way at all. Just my opinion. Two much Dinar scooped up by to many counties over the years. I can't see them taking that kind of loss. The US desperately needs our capital gains dollars as well. I heard a rumor over the mainstream media that Congress is seeking a "new" tax reform in addition to the one we have now. If we don't hedge ourselves against instant wealth, they'll end up with all in short time anyway. Just a thought. Let's stay focused and take it as a possibility but not a likely reality. Even If our combined capital gains were equal to 50% of the national debt, I'm sure it wouldn't be paid out that way. Corporate America, Wall Street, and the Federal Reserve will get their hands on it and gone again. A LOP is not likely. Thanks for the post. Good food for thought. That's my 2 cents. Have a great 1!

Edited January 22, 2011 by Slaydadea

[leola]

For the life in me,, I cannot see the iraqis making all the speculators out side iraq ,millionairs.... There may be a way to figure out a value,I am not a math expert, so you can do the math.... 27 trillion iqd in iraq,,kuwait dinars,,how many?,,,where would iraq have to go to equal same value per dinar. This may give us a ballpark figure..

[keepmwlknfny]

Doesn't make sense. The LOP is used (has been used) primarily in markets with hyperinflation. That does not apply here.

No, its used AFTER periods of hyperinflation which unfortunately does apply here.........

YEAH! I WOULD LOVE TO KNOW WHAT HAPPENS TO THE 000'S IF SOMEONE HAVE THEM ON THEIR BANKACCOUNTS?

Its affected just the same.......if they redenominate at the rate of 1000 to 1 new dinar then its broken down that way in your account as well......no one is exempt from a redenomination.....whether you have physical or electronic dinar it will all be affected the same way....