Why not a LOP THEN an increase to over 3 bucks?

[scarletdiary]

Hello,

Can someone help me with the scenario that just occurred to me. Isn't it possible and probably more likely that Iraq will lop 3 zero's from their current rate of .0008 which would bring it to .80 cents to the dollar. THEN adjust their rate up to 3.50 plus bringing it closer to Kuwait's currency rate of 3.90 as they enter the GCC? I've been following the dinar for many months so I understand a lot that has been discussed about the possibilities and have read other articles about a possible LOP but have not seen someone discuss the idea that I just presented. The more I think about this scenario it just makes more sense but I'm not totally sure they could do it this way. If Iraq can adjust their currency this way with an initial LOP and then increase it to over 3 bucks after, why wouldn't they do it this way? I would hope that they can't or won't because I am really wanting, like all of us, to make a ton of money but my logical mind doesn't think these greedy politicians and bankers are going to allow the average joe to become a millionaire over night. If this idea could happen we would still make some money and how much would depend on the final rate Iraq settles on which I think would be in the 3 dollar range but we wouldn't make millions from the deal.

Lets say for argument sake the rate ends up at 3.50, so it would be 3.50 x .80(after LOP)= $2.80 x (million dinar after LOP) would be (1000 dinar = $2800 bucks.) I hope I'm wrong and this scenario isn't possible so any well thought out responses would be welcomed. Thanks!

[kennyw]

You are wrong a lop would hurt all the other countries that invested in iraq.........It makes more since to Rv it and then give time frame to cash all big bills in.

[terr]

You are wrong a lop would hurt all the other countries that invested in iraq.........It makes more since to Rv it and then give time frame to cash all big bills in.

I agree with Kenny,,c'mon RV time.

[pirate]

with Iraq all things are possible so this is why we speculate

[ajob]

There should be a place that newbies can go to get schooled on the LOP with regards to the Iraq dinar. This issue is over an done with a thousand times. IT WILL NOT LOP AS LONG AS THEY HAVE INFLATION UNDER CONTROL AND THE DINAR IS STABLE. WHICH IT HAS BEEN FOR OVER AN YEAR NOW. NOT TO MENTION THE INFAMOUS PLAN THAT HAS BEEN IN PLACE SINCE THE BEGINNING OF THIS ORDEAL. WHICH WAS PUT IN PLACE TO MAKE SURE THAT IRAQ SUCCEEDED S, NOT FAILS.

[financeminister]

I'm getting sick of hearing or reading about a lop. Forget the lop

[nventr]

Moving the decimal as follows 0.0008 to 0.80 is not a lop; it is a reval of 1000 times. A lop is where you would change a 25,000 dinar note to a 25 dinar note......a hugh difference.

We would be quite happy with a reval of a 1000 times and if you then wanted to multiply that by 3 we would be even happier.

[igniteassoc]

Hello,

Can someone help me with the scenario that just occurred to me. Isn't it possible and probably more likely that Iraq will lop 3 zero's from their current rate of .0008 which would bring it to .80 cents to the dollar. THEN adjust their rate up to 3.50 plus bringing it closer to Kuwait's currency rate of 3.90 as they enter the GCC? I've been following the dinar for many months so I understand a lot that has been discussed about the possibilities and have read other articles about a possible LOP but have not seen someone discuss the idea that I just presented. The more I think about this scenario it just makes more sense but I'm not totally sure they could do it this way. If Iraq can adjust their currency this way with an initial LOP and then increase it to over 3 bucks after, why wouldn't they do it this way? I would hope that they can't or won't because I am really wanting, like all of us, to make a ton of money but my logical mind doesn't think these greedy politicians and bankers are going to allow the average joe to become a millionaire over night. If this idea could happen we would still make some money and how much would depend on the final rate Iraq settles on which I think would be in the 3 dollar range but we wouldn't make millions from the deal.

Lets say for argument sake the rate ends up at 3.50, so it would be 3.50 x .80(after LOP)= $2.80 x (million dinar after LOP) would be (1000 dinar = $2800 bucks.) I hope I'm wrong and this scenario isn't possible so any well thought out responses would be welcomed. Thanks!

Everytime someone asks this question, all you do is prove that you know nothing about your investment and that you have done zero research. There has been more info posted on the dinar in the last 6 months than in the last 6 years COMBINED and ALL of it is still on the blogs for YOU TO READ. If you bought dinar and don't even know about it, then you are fixing to be just plumb dumb lucky. Asking this question on a dinar blog is tantamount to walking into a LIBRARY and asking the LIBRARIAN to tell you all you need to know any particular subject. READ and LEARN.

[igniteassoc]

moving the decimal as follows 0.0008 to 0.80 is not a lop; it is a reval of 1000 times. A lop is where you would change a 25,000 dinar note to a 25 dinar note......a hugh difference.

We would be quite happy with a reval of a 1000 times and if you then wanted to multiply that by 3 we would be even happier.

ooooh rah!!

[igniteassoc]

there should be a place that newbies can go to get schooled on the lop with regards to the iraq dinar. This issue is over an done with a thousand times. It will not lop as long as they have inflation under control and the dinar is stable. Which it has been for over an year now. Not to mention the infamous plan that has been in place since the beginning of this ordeal. Which was put in place to make sure that iraq succeeded s, not fails.

there is!!! You are on it!!!! Go to the FORUMs and and OLD chats that are posted from MEDIC and FRANk and start READING.....it is all there.

Edited January 21, 2010 by igniteassoc
left info off.

[popo24]

Despite all that has been said, I'm fairly sure that a 3 zero lop then reval from .80 to 3.00 or higher would still benefit countries quite significantly. You are still getting almost 400% back from it and for any investment that is incredible. Why are you all so mean? o_O I have been in this for a while and I have heard and read all the arguments about lop and what not but seriously, is that your country? No? You can't make their decisions for them. To be honest a lop and reval of 400% makes much more sense than a reval of 1000-4000%. Do you all have any clue exactly how much dinar there is out there? Tens of trillions. You should do the math in your head and be open to all possibilities despite the inflation.

That being said, I would still like to see a 4000% increase in my investment. I'm just keeping open to all possibilities so if it does potentially happen then I am not too severely disappointed. Please keep the false 'don't be so negative' statements out as that isn't negative, its my opinion that it can go both ways.

[scarletdiary]

See below.

[popo24]

I still don't know where the whole 'time limit on cashing in larger bills' thing came from and who started that. Does anyone still have $1000 bills? Is it still worth $1000 and can you take it to the bank? Sure you can, in fact, if you sell it to a private collelctor its probably worth more.

Let's say for instance Iraq has 20 trillion dinar in circulation. Iraq revals and puts a 7 day limit on 25k notes. For the sake of discussion, lets say 5 trillion of that dinar is 25k notes and only 3 trillion of it gets cashed in. Does Iraq just write off the other 2 trillion and now say there is only 18 trillion in circulation? Not claiming to be an expert, however that whole idea still doesn't make sense to me and just sounds like something Medic said/heard a year ago or something.

[scarletdiary]

Everytime someone asks this question, all you do is prove that you know nothing about your investment and that you have done zero research. There has been more info posted on the dinar in the last 6 months than in the last 6 years COMBINED and ALL of it is still on the blogs for YOU TO READ. If you bought dinar and don't even know about it, then you are fixing to be just plumb dumb lucky. Asking this question on a dinar blog is tantamount to walking into a LIBRARY and asking the LIBRARIAN to tell you all you need to know any particular subject. READ and LEARN.

I believe I actually know quite a bit about this investment and have been following since August. I have read many posts over the months and have studied this investment rather thoroughly so I'm not new to the many mind numbing discussions that have been brought up. Apparently you are not a detailed reader... quote from my post ("I have been following the dinar for many months so I understand a lot that has been discussed about the possibilities and have read other articles about a possible LOP but have not seen someone discuss the idea that I just presented.") I think it's rather apparent that none of us know for sure what's going to happen so don't be so sure of yourself friend. Using the word LOP may not be the correct term but dropping 3 zero's is not out of the realm of possibilities. Like I said I'm hoping that's not the case but I think we are being a little naive if we think that Iraq couldn't do something that prevents us from profiting like we all hope to. That is all.

[stephen]

you all keep compairing them to kuwait and kuwait is stable and producing alot of oil iraq is nowhere near where they have to be to compair with kuwait so there rv cannot be anywhere near that of kuwait.

[popo24]

Do you know how much oil Kuwait was exporting before their supposed 'reval'?

[kkjk]

I think I have this right! 50-60 trillion dinar! LOP 3 zeros, you have 50-60 billion dinar!

I am pretty sure thier budget is in the multi trillions. How in the world could they afford anything if they LOP!?

Even at the exchange rate of 3.00, that would be 150-180 billion, still not close to the budget of trillions.

Pretty simple to me that a LOP would be a disaster to one of the most resource rich countries in the world!

As well as pis* off all of the countries that have supportd them until this point!

I learned this from those old posts, which I suggest you look at!

Most peeps have been through that fear and it has been reasoned into oblivion that there is no way they would LOP.

[Bruce]

They will lop. I'm convinced.

[360imagemedia]

First of all it would be technically called a Rebase of the currency to remove the zeros. THen if they did this and RV it after a rebase even at 3 to 1 they still would not have the money to cover there bugetary needs as previously stated. A few years ago the Rebase was being considered but it is my opinion that the Iraqi Finance and Government decided this would be suicide for the country. A small RV now with a cash in window as well as allowing the currency to float in the market would allow for a fairly rapid increase and at the same time the initial RV with cash in window for large notes would allow for most of the large notes to be removed from circulation and allow the time to introduce the smaller notes that would be necessary.

[Kent]

Hello,

Can someone help me with the scenario that just occurred to me.

There are very few of us who share that same question and the those with the prevailing view (big RV or bust) on this site never offer examples or documentation of a drastic RV. You might want to read through http://dinarvets.com/forums/showthread.php?6716-Is-This-Real .

I gave a link for a study of lops (70 of them since 1960) and one of the senarios studying the causal factors very closely describes Iraq (hypothesis 2 in the study from UNC, Chapel Hill), but I have a warning for you. It aint a popular view and few will abide your question, much less discuss it intelligently. People get emotional and dismissive and will totally mis-state the effect. I'm a little tired from posting on the last one, but I will follow this string with interest to see if you can get anyone to document their position. A combination lop/rv makes perfect economic sense to me. Good luck.

[Muhammad]

Hello,

Can someone help me with the scenario that just occurred to me. Isn't it possible and probably more likely that Iraq will lop 3 zero's from their current rate of .0008 which would bring it to .80 cents to the dollar. THEN adjust their rate up to 3.50 plus bringing it closer to Kuwait's currency rate of 3.90 as they enter the GCC? I've been following the dinar for many months so I understand a lot that has been discussed about the possibilities and have read other articles about a possible LOP but have not seen someone discuss the idea that I just presented. The more I think about this scenario it just makes more sense but I'm not totally sure they could do it this way. If Iraq can adjust their currency this way with an initial LOP and then increase it to over 3 bucks after, why wouldn't they do it this way? I would hope that they can't or won't because I am really wanting, like all of us, to make a ton of money but my logical mind doesn't think these greedy politicians and bankers are going to allow the average joe to become a millionaire over night. If this idea could happen we would still make some money and how much would depend on the final rate Iraq settles on which I think would be in the 3 dollar range but we wouldn't make millions from the deal.

Lets say for argument sake the rate ends up at 3.50, so it would be 3.50 x .80(after LOP)= $2.80 x (million dinar after LOP) would be (1000 dinar = $2800 bucks.) I hope I'm wrong and this scenario isn't possible so any well thought out responses would be welcomed. Thanks!

Did someone tell you the lop wasn't about subtracting the 3 zeros off from 0.0008 = 80 cents? The lop is actually about subtracting the 3 zeros off from the larger denominations like 10,000 IQD and 25,000 IQD changing into 10 IQD and 25 IQD, respectively? And if you redo your calculation, you should make a small gain or a great loss.

Let me show you an example:

You bought 1,000,000 IQD or 40's of 25,000 IQD for USD1,300. Subtract the 3 zeros off from 1,000,000 IQD = 1,000 IQD. If they revalued at the rate of USD3.00 = 1 IQD, you should receive 1,000 IQD X USD3.00 = USD3,000.

USD3,000 as an investment profit minus your purchasing price of USD1,300 = USD1,700 total net profit before tax.

What if they revalued at the rate of USD1.00 = 1.00 IQD?

Then, you should receive 1,000 IQD X USD1.00 = USD1,000.

USD1,000 as an investment profit minus your purchasing price of USD1,300 = -USD300 total net loss before tax, perhaps. If you have an official receipt to prove to the tax dept., you might not be taxed for the net loss right here.

[popo24]

I think I have this right! 50-60 trillion dinar! LOP 3 zeros, you have 50-60 billion dinar!

I am pretty sure thier budget is in the multi trillions. How in the world could they afford anything if they LOP!?

Even at the exchange rate of 3.00, that would be 150-180 billion, still not close to the budget of trillions.

Pretty simple to me that a LOP would be a disaster to one of the most resource rich countries in the world!

As well as pis* off all of the countries that have supportd them until this point!

I learned this from those old posts, which I suggest you look at!

Most peeps have been through that fear and it has been reasoned into oblivion that there is no way they would LOP.

You don't seem to understand it. If you lop 3 zeroes off the currency notes, then you lop 3 zeroes off the budget, plain and simple. Your math is wrong too. Let's say they have 50 trillion dinar total with a 10 trillion dinar budget, lop 3 zeroes, now you have 50 billion dinar with a 10 billion dinar budget, reval up 300%, still 50 billion dinar, however since its worth more the budget drops to 3.3 billion dinar.

Edit: Just to clarify the amount here again. (these are not exact figures, just an example) 50 trillion dinar is equal to 50 billion USD, lop 3 zeroes off and 50 billion dinar is worth 50 billion USD. Reval up to 3:1 IQD/USD and you have 50 billion dinar still, and 150 billion USD.

[jocko129]

HEY,HEY!!!!!! this is a dinar rv forum not an LOP forum, how many times must O tell you????

[Kent]

HEY,HEY!!!!!! this is a dinar rv forum not an LOP forum, how many times must O tell you????

jocko, I assume you are half responding in fun, but honestly, I guess I missed where it said RV forum. I thought it just said dinar, dinarvets, Iraq and dinar related news, dinar rumors. Please give the lopsters (I guess like me) a reason to think differently if you want to end the discussion. Perhaps then we could get Adam to post something really good on his blog and just point people to it every time it comes up!

[popo24]

HEY,HEY!!!!!! this is a dinar rv forum not an LOP forum, how many times must O tell you????

Like Kent said, its not an RV forum, nor a LOP forum, its just a dinar forum.