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Dinar News CBI - The foreign exchange abroad (draft) and seek to erase the zeros from the dinar

k98nights

By k98nights,
in Iraq & Dinar Related News

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Soldier
Soldier

I appreciate all your post. Unlike some I take the good and the bad and make my own decisons. Thanks for all your efforts.

Soldier
Soldier

Looks like a LOP is in the works. I guess all the intel that people were getting was all wrong. Maybe Im not reading this correctly or interpreting incorrectly. One thing I did get out of this is a RV

warrengz Newbie

warrengz

Posted
Posted

HOPEFULLY, this is bogus and a smokescreen from them. At any rate it could be better for us and as far as Adam:

[Adam Montana] we'll see... all I konw is I'm not expecting anything until the 1st of February

[Adam Montana] and regarding taking off thezeros... I still don't see it, nor have I heard anything more recent than 2008 that even hints at it

His chat from this morning. Dont think we have anything to worry about!

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Leroy2u Newbie

Leroy2u

Posted
Posted

Keep the ship staight and steady!! Don't be distracted by this information, nobody know the intentions of the GOI. Don't get talked out of your investment now, many of you have held for a long time. I'm taking this to the end, riding the horse into the ground....

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Enorrste Newbie

Enorrste

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I'd like you all to look at the first line of the post that leads this thread:

CBI - The foreign exchange abroad (draft) and seek to erase the zeros from the dinar.

Do you see the middle word, in bold? This is a draft only. No decision has been made yet.

In an effort to help us all relax on this issue I've decided to post my chapter on the lop here:

13. One last question: What about a lop?

[Fact]

The following link is from August 24, 2008 and is found in the Gulf Times. It states without question that Iraq plans to “rebase” its currency by removing 3 zeros from the dinar.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=237500&version=1&template_id=48&parent_id=28

Here is the article:

Iraq central bank takes steps to ‘rebase dinar’

BAGHDAD: The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.

“We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview.

“The process is progressing and we have taken some steps,” Qasim said. “We will issue a decision in due time.”

Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.

Iraqi Finance Minister Bayan Jabor said his ministry had suggested to the central bank to take off three zeroes from the current Iraqi dinar banknotes. “The Central Bank governor (Sinan Al-Shabibi) has informed me that the bank is in the process of taking that decision,” Jabor told the state-run Al-Iraqia Satellite Channel this week.

“The Central Bank of Iraq supports what the finance minister was saying,” Qasim said.

If the rebase decision is taken, it means a current 25,000 Iraqi dinar banknote will become 25 dinars, for example. When three zeroes are knocked off the Iraqi dinar, a dollar will equal only 1.20 dinars....

“This time we aren’t in hurry, if it takes two years to swap the new currency with the old one, then let it so,” Qasim said.

The current banknotes were printed by Britain’s De La Rue, the world’s biggest commercial printer of bank notes.

Jabor said in November last year that the central bank would rebase the dinar in early 2008. – Dow Jones Newswires

[Analysis]

What do we make of this?

It would be very disconcerting if Iraq “rebased” its currency in this manner. It would not eliminate the profit potential since the “value” of the IQD would rise to about $1.17 through a lop. In theory we have seen that this is still well below the “real” value of the IQD so we would expect the IQD to rise over the next few years into the $3 or higher level. Therefore we could still see a tripling of our investment over time.

Let’s look at the bold red quotes in this article and see if we can learn something that applies to the situation today.

The first quote says, “The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.”From this we see that the article is saying “steps” were being taken at that time to do a “lop.” It does not say, however, that the final decision had been made.

The next quote is more disconcerting: “We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview.

This is a quote from the CBIs senior advisor. He clearly believed at that time that the CBI had “reached a conclusion” to rebase the dinar through a “lop.”

However in the next quote we see that he softens his statement somewhat: Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.

Now it is clear that in fact the decision had not taken place, contrary to his first statement. In fact, he was specific that not even a timeframe would be stated when a decision MIGHT be taken. However, based on his statement, should that decision eventually be made he then made it clear that an entirely new currency would be created to replace the current IQD. Finally, he said that IF the decision was made it would take 2 years from that date for the new currency, and the “lop” to take affect.

In the next quote we finally know the truth that the decision had in fact NOT been made: “If the rebase decision is taken” is the beginning of his statement. Therefore we now know that at that time the decision to “rebase” the currency had not in fact been made.

We now need to ask ourselves whether in fact we can verify that the decision has been made. The answer is that we CANNOT verify that the decision was made. In spite of the lead article on this thread we see that the CBI is still only in a "draft" mode on this issue. Therefore we can conclude that up until today the CBI has not decided to rebase the currency through a “lop.”

Would a “lop” be in the best interest of Iraq?

Next we have to ask if logically it would be wise for Iraq to “rebase” its currency in this manner. The argument here is that the rebase would take the exaggerated profit away from speculators. That would certainly be the case. But is that even a concern for the government of Iraq? It is almost certainly NOT a concern of the government of Iraq. The total amount of dinars held in speculation of a great profit is small in comparison to the total 20 trillion dinars worldwide. Therefore to assume that Iraq would do anything to squelch our profit potential is ridiculous.

Is there another reason why Iraq would consider a “lop”? The article provides the answer: the large denomination notes are cumbersome and need to be replaced.

The next question we should ask is this: Is there another way to eliminate the large denomination notes without a “lop”? Of course we have already shown that the answer to this question is a resounding “yes”. We will address that in a moment.

It appears, therefore, that the CBI has decided not to rebase the currency through a “lop”, in spite of the article posted on January 27, 2010 which is still a “draft” and not a decision. From the mouth of Quasim himself in 2008 he said that “if and when” a decision is made it would be 2 years later that it would be implemented.

Let’s discover why a decision not to lop be a good decision.

The United States and several other countries have spent millions if not billions of dollars in order to eliminate terrorism in Iraq and create a democratic state in the ME. They are owed a great debt of gratitude by Iraq, arguably.

Were Iraq to “lop” the currency these countries would not benefit in any significant manner. Why is that important? The answer comes directly from former President George W. Bush who stated that Iraq would pay for the war itself.

Now how could Iraq pay for the war itself? Could it do so through oil? That makes no sense since the sale of oil to the world is a part of the normal process of running the country. It makes no sense to take a normal process and say that all of a sudden that normal process is “paying for the war.” No, it’s just running the state of Iraq.

So we need to look at another way that Iraq could “pay for the war itself”. And the way it could do that is through the RV of the IQD.

However a “lop” will not accomplish that objective. Only a change in the value of the dinar with the same currency will accomplish that stated objective of George Bush.

The new administration must know of this objective. I suspect that Mr. Bush had hoped that it would occur just before he left office so that he could wipe the slate clean on the war’s expenses. However, that did not happen. Instead, President Obama has inherited this objective. We have seen his efforts on behalf of Iraq, in spite of his promise to wind down the war. We have seen that he has made “11th hour” calls on behalf of internal Iraqi legislation. We may safely conclude that Mr. Obama is not only fully aware of the “objective” to have Iraq “pay for the war itself”, but more than that he is now an avid proponent of that very objective.

For these reasons we can safely conclude that the “lop” is no longer on the table. If it were the major defenders of a free Iraq would receive a slap in the face; and Mr. Bush would be seen to have been mistaken about his clear statement that Iraq would “pay for the war itself.

Steve

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jwb Newbie

jwb

Posted
Posted

Go, Ennorste! go, go, GO. You've done it again, you've broken it down, rearranging the pieces for me. Now I see a very different picture, whew! Thankyou. With that out of the way, when can you release your book?? (can this site hope for a special offer?)

Since so much of the chat last night was lost, can you possibly post some files or bullets on the topic??

I know a reward awaits you in heaven for selflessly helping so many, but I have a feeling a few rewards here on earth await you, too :-) Many thanks and Many Blessings., J

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taxguy Newbie

taxguy

Posted
Posted
I'd like you all to look at the first line of the post that leads this thread:

CBI - The foreign exchange abroad (draft) and seek to erase the zeros from the dinar.

Do you see the middle word, in bold? This is a draft only. No decision has been made yet.

In an effort to help us all relax on this issue I've decided to post my chapter on the lop here:

13. One last question: What about a lop?

[Fact]

The following link is from August 24, 2008 and is found in the Gulf Times. It states without question that Iraq plans to “rebase” its currency by removing 3 zeros from the dinar.

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=237500&version=1&template_id=48&parent_id=28

Here is the article:

Iraq central bank takes steps to ‘rebase dinar’

BAGHDAD: The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.

“We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview.

“The process is progressing and we have taken some steps,” Qasim said. “We will issue a decision in due time.”

Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.

Iraqi Finance Minister Bayan Jabor said his ministry had suggested to the central bank to take off three zeroes from the current Iraqi dinar banknotes. “The Central Bank governor (Sinan Al-Shabibi) has informed me that the bank is in the process of taking that decision,” Jabor told the state-run Al-Iraqia Satellite Channel this week.

“The Central Bank of Iraq supports what the finance minister was saying,” Qasim said.

If the rebase decision is taken, it means a current 25,000 Iraqi dinar banknote will become 25 dinars, for example. When three zeroes are knocked off the Iraqi dinar, a dollar will equal only 1.20 dinars....

“This time we aren’t in hurry, if it takes two years to swap the new currency with the old one, then let it so,” Qasim said.

The current banknotes were printed by Britain’s De La Rue, the world’s biggest commercial printer of bank notes.

Jabor said in November last year that the central bank would rebase the dinar in early 2008. – Dow Jones Newswires

[Analysis]

What do we make of this?

It would be very disconcerting if Iraq “rebased” its currency in this manner. It would not eliminate the profit potential since the “value” of the IQD would rise to about $1.17 through a lop. In theory we have seen that this is still well below the “real” value of the IQD so we would expect the IQD to rise over the next few years into the $3 or higher level. Therefore we could still see a tripling of our investment over time.

Let’s look at the bold red quotes in this article and see if we can learn something that applies to the situation today.

The first quote says, “The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.”From this we see that the article is saying “steps” were being taken at that time to do a “lop.” It does not say, however, that the final decision had been made.

The next quote is more disconcerting: “We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview.

This is a quote from the CBIs senior advisor. He clearly believed at that time that the CBI had “reached a conclusion” to rebase the dinar through a “lop.”

However in the next quote we see that he softens his statement somewhat: Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.

Now it is clear that in fact the decision had not taken place, contrary to his first statement. In fact, he was specific that not even a timeframe would be stated when a decision MIGHT be taken. However, based on his statement, should that decision eventually be made he then made it clear that an entirely new currency would be created to replace the current IQD. Finally, he said that IF the decision was made it would take 2 years from that date for the new currency, and the “lop” to take affect.

In the next quote we finally know the truth that the decision had in fact NOT been made: “If the rebase decision is taken” is the beginning of his statement. Therefore we now know that at that time the decision to “rebase” the currency had not in fact been made.

We now need to ask ourselves whether in fact we can verify that the decision has been made. The answer is that we CANNOT verify that the decision was made. In spite of the lead article on this thread we see that the CBI is still only in a "draft" mode on this issue. Therefore we can conclude that up until today the CBI has not decided to rebase the currency through a “lop.”

Would a “lop” be in the best interest of Iraq?

Next we have to ask if logically it would be wise for Iraq to “rebase” its currency in this manner. The argument here is that the rebase would take the exaggerated profit away from speculators. That would certainly be the case. But is that even a concern for the government of Iraq? It is almost certainly NOT a concern of the government of Iraq. The total amount of dinars held in speculation of a great profit is small in comparison to the total 20 trillion dinars worldwide. Therefore to assume that Iraq would do anything to squelch our profit potential is ridiculous.

Is there another reason why Iraq would consider a “lop”? The article provides the answer: the large denomination notes are cumbersome and need to be replaced.

The next question we should ask is this: Is there another way to eliminate the large denomination notes without a “lop”? Of course we have already shown that the answer to this question is a resounding “yes”. We will address that in a moment.

It appears, therefore, that the CBI has decided not to rebase the currency through a “lop”, in spite of the article posted on January 27, 2010 which is still a “draft” and not a decision. From the mouth of Quasim himself in 2008 he said that “if and when” a decision is made it would be 2 years later that it would be implemented.

Let’s discover why a decision not to lop be a good decision.

The United States and several other countries have spent millions if not billions of dollars in order to eliminate terrorism in Iraq and create a democratic state in the ME. They are owed a great debt of gratitude by Iraq, arguably.

Were Iraq to “lop” the currency these countries would not benefit in any significant manner. Why is that important? The answer comes directly from former President George W. Bush who stated that Iraq would pay for the war itself.

Now how could Iraq pay for the war itself? Could it do so through oil? That makes no sense since the sale of oil to the world is a part of the normal process of running the country. It makes no sense to take a normal process and say that all of a sudden that normal process is “paying for the war.” No, it’s just running the state of Iraq.

So we need to look at another way that Iraq could “pay for the war itself”. And the way it could do that is through the RV of the IQD.

However a “lop” will not accomplish that objective. Only a change in the value of the dinar with the same currency will accomplish that stated objective of George Bush.

The new administration must know of this objective. I suspect that Mr. Bush had hoped that it would occur just before he left office so that he could wipe the slate clean on the war’s expenses. However, that did not happen. Instead, President Obama has inherited this objective. We have seen his efforts on behalf of Iraq, in spite of his promise to wind down the war. We have seen that he has made “11th hour” calls on behalf of internal Iraqi legislation. We may safely conclude that Mr. Obama is not only fully aware of the “objective” to have Iraq “pay for the war itself”, but more than that he is now an avid proponent of that very objective.

For these reasons we can safely conclude that the “lop” is no longer on the table. If it were the major defenders of a free Iraq would receive a slap in the face; and Mr. Bush would be seen to have been mistaken about his clear statement that Iraq would “pay for the war itself.

Steve

Steve,

The Iraqi money supply is now approximately 1,000 times higher than it was in 1980 in nominal terms, per the CBI statement today . Why couldn't they lop three 0's from the currency and then RV at $2+. This would still be a substantial increase in the value of their currency as IQD 1M worth $870 at the current exchange rate would be worth $2,000 after the lop/RV. I don't see how the US, Russia, China etc. could complain about having their investment doubled. I would really appreciate Steve or one of the veteran dinar holders explaining why they think that the Iraqis would not implement a lop in conjunction with an RV.

i was previously convinced that a lop would not be in Iraq's best interest because they have the lion's share of the IQD, but now I would appreciate some reassurance. Thanks.

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kaperoni Newbie

kaperoni

Posted
Posted
Steve,

The Iraqi money supply is now approximately 1,000 times higher than it was in 1980 in nominal terms, per the CBI statement today . Why couldn't they lop three 0's from the currency and then RV at $2+. This would still be a substantial increase in the value of their currency as IQD 1M worth $870 at the current exchange rate would be worth $2,000 after the lop/RV. I don't see how the US, Russia, China etc. could complain about having their investment doubled. I would really appreciate Steve or one of the veteran dinar holders explaining why they think that the Iraqis would not implement a lop in conjunction with an RV.

i was previously convinced that a lop would not be in Iraq's best interest because they have the lion's share of the IQD, but now I would appreciate some reassurance. Thanks.

A RV and LOP is something that could and may happen. No worries though cause you would exchange your dinar and get the RV price which in essense is the same thing as just a RV. Iraq must RV and whatever happens thereafter they will not deny there dinar holders.

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taxguy Newbie

taxguy

Posted
Posted
A RV and LOP is something that could and may happen. No worries though cause you would exchange your dinar and get the RV price which in essense is the same thing as just a RV. Iraq must RV and whatever happens thereafter they will not deny there dinar holders.

kaperoni, thank you for your response. In my example of a lop of 3 zeros with an RV at $2, would someone with IQD 1M get $2M or $2k? Thanks!

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Kent Newbie

Kent

Posted
Posted
A RV and LOP is something that could and may happen. No worries though cause you would exchange your dinar and get the RV price which in essense is the same thing as just a RV. Iraq must RV and whatever happens thereafter they will not deny there dinar holders.

kap, I... don't think you wind up with the same return on investment either way. Not by a long margin. If there is a lop, we won't make as much money and Iraq doesn't incur as much debt.

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taxguy Newbie

taxguy

Posted
Posted
kap, I... don't think you wind up with the same return on investment either way. Not by a long margin. If there is a lop, we won't make as much money and Iraq doesn't incur as much debt.

It would seem that a three zero lop combined with a RV @ $2 would result in IQD 1M being worth $2,000 instead of $2M. That's a big difference.

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