golfwife Posted February 9, 2010 Report Share Posted February 9, 2010 no lop no l o p Link to comment Share on other sites More sharing options...
gideonx Posted February 10, 2010 Report Share Posted February 10, 2010 Sorry guys, I have not quite get it..................I love the logic but it somehow still does not make sense to me........ need some real help here!If you are honest hard working Iraqi shopkeeper or innkeeper, you would have probably accumulated a sizeable amount of 25K dinars. Then you wake up to find that each 25k note is now worth 25 NEW note. Now you are told the dinar is at par with the US dollar.............ie 1:1You use this NEW 25dinar note to buy other goods from a neighbouring country, saying it is now worth 25usd. Then you catch yourself thinking:My original 25K note was also worth around 25 usd............? Has there been an increase in value? NO! ?????????The colour of the notes has changed.....THE VALUE HAS NOT!Is the wealth of the average Iraqi better off with the overhaul or restructuring of the currency?? Hardly....Instead there will be so much frayed nerves all over the place.......some old folks who have been hoarding the notes in the mattresses will probably think that everyone is out fleecing /conning them....The govt will have to produce alot of coins to replace the old notes. Question: why waste the money creating the new currencies in the first place when the is no increase in value.Internally within the country, the currency restructuring may eventually make sense.To the world, the Iraqi Govt says that the currencies whether in hard 25K notes on digitally on paper will have 3 zeroes removed based on the newly restructured format:1,000,000 becomes 100025,000 becomes 251000 becomes 1The new exchange rate is now 1:1 or 1:14 (whatever)The original exchange rate of 1usd :1147dinars is now superseded........... sorry.instead of 1dinar = 0.00085 usd, 1 dinar is now = 1 usd...... trust me.If Iraq can do this, what is stopping Iran, Indonesian, Vietnam and a hosts of other nations?I need some fresh air now............ can someone smarter than me please explain? thank you Link to comment Share on other sites More sharing options...
TexaSwa Posted February 10, 2010 Report Share Posted February 10, 2010 Believing that this is somehow about giving the Iraqis more money to spend is folly. If that were the case, the govt. could just start writing checks to the citizens at any exchange rate. It's about developing a tradable currency. Link to comment Share on other sites More sharing options...
CoolChange Posted February 10, 2010 Report Share Posted February 10, 2010 Kent I really hope that you are wrong ,but the logic of it makes sense. The only thing that I think will make this currency revalue is if the Superpowers have the ability to make huge amounts of revenue from it . We investors are minute by comparison and the thought that we are any part of the consideration is IMO ridiculous Link to comment Share on other sites More sharing options...
JOHNJOHNNY Posted February 10, 2010 Report Share Posted February 10, 2010 The FM called it a redom... not a lop Link to comment Share on other sites More sharing options...
Kent Posted February 10, 2010 Author Report Share Posted February 10, 2010 The FM called it a redom... not a lopLop and bunny-ear are both derogatory slang words that are used by investors to describe a redenomination where zeros are removed. You won't see the word lop in a public statement. If you read the study or if you read the brocure posted by bellypod ( http://www.reconversionbcv.org.ve/pdf/TripticoColorIng.pdf ) you will see what I feel the recent announcements are describing when they talk about deleting 3 zeros from the currency. Notice that the wording of the statements talk of removing 3 zeros from the currency, not removing the currency that has 3 zeros. Note also that simply retiring a bill from circulation thru an exchange (as we have done with our large denomination bills in the US) is not a redenomination at all.scottiraq04 has also found a really good and more recent paper: http://www.gamji.com/article6000/NEWS7367.htm Link to comment Share on other sites More sharing options...
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