Conscious / Central Bank Consultant: Our face inflation and monetary policy-making after the exit of the seventh item / dialogue

[allout]

CBI shows the same rate but no auctions for 12-31, 1-01, and 1-02.

[jacobm]

Not yet, but it will more than likely. Just think about it for a second..

They can NOT RV it without doing a LOP first. The LOP MUST be done first. They have WAAAAAAAYYY too many bills in circulation to RV it without doing a lop. IF they did RV without doing a lop, and it RV around 50 cents to a dollar, within 6 months they would be right back in hyper-inflation. Then they would be introducing 500,000 dinar bills before long.

It just doesnt make sense not to lop it.

Make sense?

WOW. . you have no idea what you are talking about.

[Rome M]

So, let me see if I can grasp this LOP.....

If LOP means taking the three zeros off the big bills we can have a 1, 5, 10, and 25 dinar notes. Got that.

They need news bills to replace those pesky tripple 0 bills, not as many bills, but still a SHITLOAD. Got that

Is the order placed? where are these new bills? Lets assume we get these new bills, and ALL the big countries traded them in, including the ones in the US treasury (alot of work)

Now, what do they do with the existing 50, 250, and 500 notes? there are not three zeros on these. Will the money holder know where the decimal goes here?

What if the guy next to you had a 50 dinar note (which is worth 50 dinar), and you have your new LOPPED 25K (now worth 25 dinar). He has twice as much as you.

Mixed currencies do not work well, just ask Iraq 7-10 years ago.

Ok, problem. How do we fix that? BY making ALL new denominations, 50, 250, and 500, not just that three zero ones. Got it.

Where is that order? Do we have completely new new bills ready? is that in the budget? MAliki? Shabs? Anyone?

NOW, an entirely new currency, different designs different values. They could be co mingled, but what the hell? Does everyone in Iraq major in math? Will they be able to cope with the changes they just got situated in the NEW Dinar. Everyone across the world, including big countries will need to trade in their new dinar for the new new dinar, so that it isnt confused with the new dinar.

Of course if you want you can still use the new dinar along with the new new dinar, just move the decimal to the left three times and thats what you got.

But I am at the super market now, and the price on milk says 50 Dinar. i assume it is the new new dinar but all i have is the new dinar... 500 IQD notes...

Damn, ok get out the paper and pen..... move the decimal over three.... i think i have 0.5 new new dinar......that means..... i need 100 of these old new dinars to buy my milk

THEN i get to the register, and HE has to do the math, and take in 50 bils for milk. It would be so much easier with one set of numbers.....

I know this math is a hypothetical situation, just bringing to attention all the problems that can occur trying to do something like the LOP

[The Last Polar Bear]

WOW. . you have no idea what you are talking about.

By all means, enlighten us on your thoughts. Its ok to have a different opinion, but let us know why you think that, instead of just telling someone "you have no idea what your talking about". Back up your statement.

[Frank61]

Not yet, but it will more than likely. Just think about it for a second..

They can NOT RV it without doing a LOP first. The LOP MUST be done first. They have WAAAAAAAYYY too many bills in circulation to RV it without doing a lop. IF they did RV without doing a lop, and it RV around 50 cents to a dollar, within 6 months they would be right back in hyper-inflation. Then they would be introducing 500,000 dinar bills before long.

It just doesnt make sense not to lop it.

Make sense?

It does not make sense because you are assuming that they have WAY too many bills in circulation when no one really really knows and most believe 80-90% have been taken out. You also are not looking at fractional reserve banking they can use, the impact of world credibility with a lop and oil and so on. You are missing too many variables.

[DirtyMartian]

Personally I'm open to anything happening. I'm just as optimistic as a lot of people around here but I still think a LOP makes sense, but whenever you mention LOP everyone gets irate because you're pissing in their cornflakes, they don't want to hear anything other than RV at $3/ dinar, with no change on the face value of the currency, hell, believe me I'd love it if we all got that. but in a nutshell right now if you're holding a 25k dinar note you essentially are holding $23 worth of currency, that's the fact until they decide to do whatever it is they're going to do, what keeps me optimistic is the very real fact that Iraq is going to be a wealthy nation in Oil alone given the figures that are out there at $80/ barrel they stand to net $74,880,000,000.00 a year as it is now, and we're not even taking natural gas into account here. anyway that's just my 2 cents. I like everyone else here have paid for my ticket and all we can do is sit back and watch the in-flight movie on this ride.

[okiea&p]

Wake me up when we land !

[DirtyMartian]

Wake me up when we land !

Me too, but every time I get to sleep on this there's some turbulence and I'm compelled to watch more of the bad drama that's playing out.

[aliveandcare]

WOW. . you have no idea what you are talking about.

If you just came to this site to say crap like that, you can just leave now. That was just unnecessary. I absolutely do know what I am talking about. I am open to discussions about both views. Make a statement to prove me wrong. If you cant do that, then shut the fu** up.

Frank....

If you read the prior post, I based on that on the assumption that they have the 25 trillion that was reported in circulation.

[JRooster]

ive been in for a little over a year now... i just read never post... and believe me i do have an open mind... i like to read all the stuff they put out... NOBODY KNOWS THE DATE NOR RATE... i have my best friend contacting buddys in iraq and i am as well asking them what is going on over there... so hopefully ill have something by tomorrow at least... HOPEFULLY... i hope that the tax, and more 100$ bills are because of this... it would make me so happy and NO LOP either i hate that damn talk lol... but i do see exactly where your coming from... and plus all the dinar that is out of country all the sudden being DUMPED back in... huge inflation which would put them right back where they are now... right?

The only issue I have with this statement is I'm in Iraq. The only thing i am not getting is that from my understanding there are not any marines in Iraq anymore. Pulled all marines close to a year ago. I deal with in and out transitionings and logistics and do not know of any marines in country