Rate based on IQD speculation

[sol37]

Here is some logic of what an RV rate might be based on the volatility speculators could cause with and RV.

Based on what "The Eagle" says...

There is about 1,000 Trillion Dollars (if all currencies are converted to Dollars) in the world. Strangely enough, the Rothschild family (7 families actually) own just a smidgen over 500 Trillion in assets. These are the nice folks that brought us the Federal Reserve, Bank of England, Bank of Germany and all the other reserve banks. The figures I see repeated from multiple sources tell this story: There are a total of 27 Trillion Dinars in print. BOI has recovered 17 Trillion (about 63%) leaving 10 Trillion in circulation. Of that, the US government owns a reported 5.7 Trillion, individuals and small-time speculators own about 300 Billion (about 3%), and the remaining 4 Trillion is owned by other countries.

Read more: #ixzz1FHPZ5Osw

And knowing that the only ones that will make a run on the banks is the small time speculators who hold 300 Billion Dinar ($225,000,000 USD at the current .00085 USD to 1 IQD rate) the CBI would need cash reserves capable to cover this 300 Billion Dinar run on the bank as governments and financial institutions will keep for oil purchases or investment so it's just the speculators who need to be covered.

Now, the CBI has approximately 50 Billion USD cash reserves as of the end of 2010.

So, based on their reserves, what RV amount could be supported based only on cash reserves, not oil revenues current or potential?

The answer? The CBI, as of current, could support an RV of .165 USD = 1 IQD (a shocking profit potential of 19,412% based on the current rate of .00085 USD = 1 IQD). An RV of this rate (.165 USD = 1 IQD), assuming everyone would cash in at the same time, would require 49.5 Billion USD which is the amount of the CBI's entire foreign currency reserves as of the end of 2010 (300 Billion IQD at .165 USD to 1 IQD = $49,500,000,000 USD).

To RV at .30 USD = 1 IQD they would need approximately 100 Billion USD in reserves to cover the speculator's runs on the bank. So, this will take a while, especially when they are planning on spending that on infrastructure projects.

So all you folks thinking that the RV will be at $3.22... LOL. Ain't gonna happen. Do you have any idea how much foreign currency reserves they would need to do that just to cover the 3% of their currency in speculators hands? Astronomical amounts!!! A 1:1 RV would require approximately $300 Billion in foreign currency reserves in the CBI just to cover speculators. So a 3.22 IQD to 1 USD RV would require approximatelly 1 Trillion USD in reserves just to cover speculators 3% Dinar in circulation. We will be waiting to 2025 for that one But maybe if you hold the Dinar that long, you just may see that.

Do the math. Be realistic. We will be lucky to see 10 cents USD to 1 IQD. And crap... I would be happy with that. 2.5 million IQD = 1/4 Million USD... very nice return. But no overnight millionaires.

Sorry to disappoint.

Edited February 28, 2011 by sol37

[sol37]

I know I will get bashed with this math, but think about it and be real.

Edited February 28, 2011 by sol37

[FOUNDIT]

Yes your numbers line up if you do not take any other asset into consideration or understand fractional banking.Also there is a substantial amount to be made in the process of the market on buys and sells.When this thing hits the market you will see especially if its a lower rate a ton of buying while at the same time many are selling....just how it works.You make it sound like all if a sudden IRAQ must come up with the money to buy back all their dinar st one time.I'm sorry but it won't happen that way.Iraq will have plenty on money to back up a high RV. Just my opinion but shared buy many...only time will tell my friend.......All the best to you and yours.....

[PacoTaco]

That would still be a great return at .10!

What you need to do is figure out how much you need to get you where you want to go in the end. You need to balance that between the possibility this RV may never happen and a meteor may hit Iraq and wipe it off the face of the earth.

Never put your eggs all in one basket and keep moving forward!!! Don't just rely on this investment to retire you or whatever you plan it to do. Keep you health up so you can spend the money afterwards and keep moving forward with whatever you are doing now to survive and thrive!

Go RV!!!

[Telabiz]

You make a good point , But the 3 % speculators will keep at least 90 % (on avg) in electronic funds . Based on just the info you provided , have to say . If cash on hand is your Basis, Not a complete formula . But thanks for the post.

[Tropics]

You are only about the 50th person to tell us why we can't expect a high return without having all the facts. The IMF has already stated they only need 15% of their reserves to do the RV. Again it is called fractionalization.

[Nani?]

I know I will get bashed with this math, but think about it and be real.

Kinda hard for you to dissappoint when your probably wrong

[Darin]

That rate would only be a feasible rate if the CBI were to draw in all IQD available and exchange for the value of their new rate.

However, not everyone will cash in "instantly", and not every Govt. will cash in the IQD.

I believe that many Foreign Govt.s will sit on a large amount of foreign currency to back the strength of their dollar. I think China for example has a LOT of USD stashed away.

Then, there is the process of how much revenue will be made off of the exchanging of dinar. Going forward, if it becomes trade-able, they'll make $$ off the PIPs, or spread as we may know it as, and that is the difference of the buy & sell rates.

The currency going up or down will always benefit the currency exchange department for the profits it'll bring in. Not to mention the future of all Iraqis & the GOI to have a higher purchasing power going forward with the $$ they have.

Your also thinking the DFI will pay for the RV. Well the DFI is a fund to help develop the country... I am unsure as to whether it'll be used to pay for the RV. It could help fund the initial turning in of dinars of the RV, but I don't believe it is soley based upon that fund.

[blueskygal]

You are only about the 50th person to tell us why we can't expect a high return without having all the facts. The IMF has already stated they only need 15% of their reserves to do the RV. Again it is called fractionalization.

Great point... Iwish more people understood fractional reserve banking - there are some great videos about it on youtube - moneymasters, The american dream film-full length - I watched that one with my kids - they totally got it. The truth is out there just have to open the peeps and look :-)

1,000 deposit is $10,000 in reserves to lend.

[Frank61]

Here is some logic of what an RV rate might be based on the volatility speculators could cause with and RV.

Based on what "The Eagle" says...

There is about 1,000 Trillion Dollars (if all currencies are converted to Dollars) in the world. Strangely enough, the Rothschild family (7 families actually) own just a smidgen over 500 Trillion in assets. These are the nice folks that brought us the Federal Reserve, Bank of England, Bank of Germany and all the other reserve banks. The figures I see repeated from multiple sources tell this story: There are a total of 27 Trillion Dinars in print. BOI has recovered 17 Trillion (about 63%) leaving 10 Trillion in circulation. Of that, the US government owns a reported 5.7 Trillion, individuals and small-time speculators own about 300 Billion (about 3%), and the remaining 4 Trillion is owned by other countries.

Read more: #ixzz1FHPZ5Osw

And knowing that the only ones that will make a run on the banks is the small time speculators who hold 300 Billion Dinar ($225,000,000 USD at the current .00085 USD to 1 IQD rate) the CBI would need cash reserves capable to cover this 300 Billion Dinar run on the bank as governments and financial institutions will keep for oil purchases or investment so it's just the speculators who need to be covered.

Now, the CBI has approximately 50 Billion USD cash reserves as of the end of 2010.

So, based on their reserves, what RV amount could be supported based only on cash reserves, not oil revenues current or potential?

The answer? The CBI, as of current, could support an RV of .165 USD = 1 IQD (a shocking profit potential of 19,412% based on the current rate of .00085 USD = 1 IQD). An RV of this rate (.165 USD = 1 IQD), assuming everyone would cash in at the same time, would require 49.5 Billion USD which is the amount of the CBI's entire foreign currency reserves as of the end of 2010 (300 Billion IQD at .165 USD to 1 IQD = $49,500,000,000 USD).

To RV at .30 USD = 1 IQD they would need approximately 100 Billion USD in reserves to cover the speculator's runs on the bank. So, this will take a while, especially when they are planning on spending that on infrastructure projects.

So all you folks thinking that the RV will be at $3.22... LOL. Ain't gonna happen. Do you have any idea how much foreign currency reserves they would need to do that just to cover the 3% of their currency in speculators hands? Astronomical amounts!!! A 1:1 RV would require approximately $300 Billion in foreign currency reserves in the CBI just to cover speculators. So a 3.22 IQD to 1 USD RV would require approximatelly 1 Trillion USD in reserves just to cover speculators 3% Dinar in circulation. We will be waiting to 2025 for that one But maybe if you hold the Dinar that long, you just may see that.

Do the math. Be realistic. We will be lucky to see 10 cents USD to 1 IQD. And crap... I would be happy with that. 2.5 million IQD = 1/4 Million USD... very nice return. But no overnight millionaires.

Sorry to disappoint.

You dont have to be sorry. I completely disagree with your so called MATH. Your numbers are all way off, fortunately. Your theory basically illustrates a driveup window at the CBI. It doesnt even address OIL for Dollars Program or Fractional Banking, let alone Forex.

[meatmen4dinar]

Here is some logic of what an RV rate might be based on the volatility speculators could cause with and RV.

Based on what "The Eagle" says...

There is about 1,000 Trillion Dollars (if all currencies are converted to Dollars) in the world. Strangely enough, the Rothschild family (7 families actually) own just a smidgen over 500 Trillion in assets. These are the nice folks that brought us the Federal Reserve, Bank of England, Bank of Germany and all the other reserve banks. The figures I see repeated from multiple sources tell this story: There are a total of 27 Trillion Dinars in print. BOI has recovered 17 Trillion (about 63%) leaving 10 Trillion in circulation. Of that, the US government owns a reported 5.7 Trillion, individuals and small-time speculators own about 300 Billion (about 3%), and the remaining 4 Trillion is owned by other countries.

Read more: #ixzz1FHPZ5Osw

And knowing that the only ones that will make a run on the banks is the small time speculators who hold 300 Billion Dinar ($225,000,000 USD at the current .00085 USD to 1 IQD rate) the CBI would need cash reserves capable to cover this 300 Billion Dinar run on the bank as governments and financial institutions will keep for oil purchases or investment so it's just the speculators who need to be covered.

Now, the CBI has approximately 50 Billion USD cash reserves as of the end of 2010.

So, based on their reserves, what RV amount could be supported based only on cash reserves, not oil revenues current or potential?

The answer? The CBI, as of current, could support an RV of .165 USD = 1 IQD (a shocking profit potential of 19,412% based on the current rate of .00085 USD = 1 IQD). An RV of this rate (.165 USD = 1 IQD), assuming everyone would cash in at the same time, would require 49.5 Billion USD which is the amount of the CBI's entire foreign currency reserves as of the end of 2010 (300 Billion IQD at .165 USD to 1 IQD = $49,500,000,000 USD).

To RV at .30 USD = 1 IQD they would need approximately 100 Billion USD in reserves to cover the speculator's runs on the bank. So, this will take a while, especially when they are planning on spending that on infrastructure projects.

So all you folks thinking that the RV will be at $3.22... LOL. Ain't gonna happen. Do you have any idea how much foreign currency reserves they would need to do that just to cover the 3% of their currency in speculators hands? Astronomical amounts!!! A 1:1 RV would require approximately $300 Billion in foreign currency reserves in the CBI just to cover speculators. So a 3.22 IQD to 1 USD RV would require approximatelly 1 Trillion USD in reserves just to cover speculators 3% Dinar in circulation. We will be waiting to 2025 for that one But maybe if you hold the Dinar that long, you just may see that.

Do the math. Be realistic. We will be lucky to see 10 cents USD to 1 IQD. And crap... I would be happy with that. 2.5 million IQD = 1/4 Million USD... very nice return. But no overnight millionaires.

Sorry to disappoint.

Man, this is the second time that you have put BS out there with only half of the truth. Do your research before you post stuff like this so you can state the WHOLE scenario. I see nothing of the fact that all Iraq needs in their reserves is only 15% of the total to cover a Revaluation.

[imgesing]

I bet you are wrong on this one! You seem to be missing out on several points but read... If you read you might get a light bulb moment.

THEY can RV higher and MUST or they will lose a lot! Also, read about determining factors for an RV. I am unsure why you would say this will come in so low based on your numbers when the real truth is...

We wont know until it happens. Do you have some formula which will tell us when it will happen too?

We (including myself) can all speculate on all of this. My speculation is they will come in 3-4 US dollars per. I think that would put them in an even trade with other ME countries, based on their resources etc. as a fair trade. BUT this is not determined by what YOU speculate they have... If they come in lower then 3 my bet is that it will go up within the first two weeks of trade. Then it will slowly come back down to its fair value on the FOREX. Let's see who is right.

Peace my fellow dinarian. lol

[behaviorkat]

All I can say is --- Incorrect!!!

[imgesing]

WHAT IS THE DEAL WITH PEOPLE ON THIS SITE LATELY?

If you have a question ASK! But if you have some statement of fact do it with some knowledge.

I will be the first to say I DONT KNOW A THING! IT IS ALL SPECULATION.

If any of you took any college courses you will know this.... HIGH RISK IS HIGH YEILD ! This is a HIGH RISK SITUATION! We are banking on what we observe and we wont know until something happens. It seems to me THEY SHOULD RV! The key word is SHOULD! Everything points to it. It would appear to serve them and those who wish to do business with them and mostly to stablize their people. When I follow statements and articles it all points to this RV. YET, I could be wrong...

If and when this does RV, for me it will be such poetic justice in my personal life.... KEEP THE FAITH MY FRIENDS.

EACH DAY IS CLOSER TO A NICE LIFE...

[moneymachine86]

The US said they want the rate to be where it was in the 1970's which was 3.33.

[On_Reserve]

WHAT IS THE DEAL WITH PEOPLE ON THIS SITE LATELY?

If you have a question ASK! But if you have some statement of fact do it with some knowledge.

I will be the first to say I DONT KNOW A THING! IT IS ALL SPECULATION.

If any of you took any college courses you will know this.... HIGH RISK IS HIGH YEILD ! This is a HIGH RISK SITUATION! We are banking on what we observe and we wont know until something happens. It seems to me THEY SHOULD RV! The key word is SHOULD! Everything points to it. It would appear to serve them and those who wish to do business with them and mostly to stablize their people. When I follow statements and articles it all points to this RV. YET, I could be wrong...

If and when this does RV, for me it will be such poetic justice in my personal life.... KEEP THE FAITH MY FRIENDS.

EACH DAY IS CLOSER TO A NICE LIFE...

Well stated. But don't expect it to sink in ;-)

TS

I believe in the RV; I don't believe in the cult.

[hame55]

WHAT IS THE DEAL WITH PEOPLE ON THIS SITE LATELY?

If you have a question ASK! But if you have some statement of fact do it with some knowledge.

I will be the first to say I DONT KNOW A THING! IT IS ALL SPECULATION.

If any of you took any college courses you will know this.... HIGH RISK IS HIGH YEILD ! This is a HIGH RISK SITUATION! We are banking on what we observe and we wont know until something happens. It seems to me THEY SHOULD RV! The key word is SHOULD! Everything points to it. It would appear to serve them and those who wish to do business with them and mostly to stablize their people. When I follow statements and articles it all points to this RV. YET, I could be wrong...

If and when this does RV, for me it will be such poetic justice in my personal life.... KEEP THE FAITH MY FRIENDS.

EACH DAY IS CLOSER TO A NICE LIFE...

I love your well-written and thought-out opinions. I'm not sure it's so high risk - a lot of money has gone into making this country another client state of the US (more than a trillion). The US gov't and more importantly the people who run our gov't have a huge stake in this "making money out of thin air" project. ONE - they make money on military contracts. TWO - They blow it up. More contracts. THREE - They rebuild it. More money. FOUR - contract for security. More money. FIVE - exploit the resources. A lot more money. SIX - RV the currency. Still more money.

Pretty nice business plan, would'ja say?

What makes you think IQD will go anywhere but up?

[flopear]

I know I will get bashed with this math, but think about it and be real.

Once again someone is stating why it can't RV high. With these transactions being DIGITAL, they will not need cash reserves on hand. Remember once it RV's the currency will be worth more, therefore trading currency for currency. I don't think it will come in as high as okie and some others state, but it will come in high enough to get the high denoms cashed in, and high enough to make a difference in Iraqs economy.

[Don Paul]

You're trying to pin this down to a black and white simple math answer but there is NO WAY.

Consider these variables:

Fractional Banking. 1 to 8 aprox ratios

Fiat money exchange. Not everyone will be cashing in with CBI directly. Most will due it thru brokers, banks in US, etc. Exchanges in banks in US will put that CURRENCY into the Fed Depository system and probably virtual exchanges will take place, if not credits of oil purchases and such.

Forex itself is a sleeping giant. It really converts fiat moneys into almost limitless virtual currency. Physical currency almost doesnt even make a dent... and yes, this is why we have modern day problems with almost all fiat currencies except maybe Norway (they have no debt as of today, but that can change) but irregardless, its trading paper for virtual and other paper...

Even the US stock exchange has been caught overselling stock at 800% of actual existence. Dont you see, NONE of this can be pinned down. Its just a game of musical chairs, but with money, and when the music stops, you'd better not be holding the wrong one...

My recomendation is to cash in and look for stable options for that. IE: commodities, metals, land, basket of currencies, etc. You'll be having to make the financial decisions of your life, and if I've learned one lesson since this ID investment, is that gurus I always respected in the field are really just hi paid idiots.

There was an article today where Madoff accused the US gov of being a giant ponzi scheme, and has good basis for his defense in that respect. Takes one to know one.

[sol37]

Okay. Fractional banking. 15% in reserves to cover an RV and I would expect the IMF to include all currency not just that in the hands of speculators? So we are talking 10 Trillion IQD in the hands of foreigners; banks, governments and speculators, approx 37% of the total IQD in circulation?

Let's see? Hmmm? 10 trillion IQD = 8.5 Billion USD as current.

So, 50 billion in current foreign reserves in the CBI calculated to equal 15% of what is needed to cover would fracttionalize out to be 333 Billion USD?

So, a fractionalized 15% of 50 Bbillion USD in reserves would fractionalize to be 333 Billion USD which could support a 1:1 RV according to the math above. so, if that is their plan, a 1:1 RV, they can do it today if all they need is 15% on hand to cover it. And you know what, that would take the wind out of any future speculators sails as I think if they did that, it would be a locked in rate, directly pinned to the value of the USD. Stable. And stable is what they need to become full fledged WTO members.

Not bad... very plausible. I would be happy with that as most everyone would be as it would represent a profit of 117,647% but, I have to ask, is that possible. Who makes and/or allows that much profit?

Hmmm? Does that sound realistic?

At the end of the day, given the 15% fractional amount needed, that only supports a 1:1 RV not this fantasy 3.22 number we keep hearing from Okie.

Edited February 28, 2011 by sol37

[rsskelton]

Okay. Fractional banking. 15% in reserves to cover an RV and I would expect the IMF to include all currency not just that in the hands of speculators? So we are talking 10 Trillion IQD in the hands of foreigners; banks, governments and speculators, approx 37% of the total IQD in circulation?

Let's see? Hmmm? 10 trillion IQD = 8.5 Billion USD as current.

So, 50 billion in current foreign reserves in the CBI calculated to equal 15% of what is needed to cover would fracttionalize out to be 333 Billion USD?

So, a fractionalized 15% of 50 Bbillion USD in reserves would fractionalize to be 333 Billion USD which could support a 1:1 RV according to the math above. so, if that is their plan, a 1:1 RV, they can do it today if all they need is 15% on hand to cover it. And you know what, that would take the wind out of any future speculators sails as I think if they did that, it would be a locked in rate, directly pinned to the value of the USD. Stable. And stable is what they need to become full fledged WTO members.

Not bad... very plausible. I would be happy with that as most everyone would be as it would represent a profit of 117,647% but, I have to ask, is that possible. Who makes and/or allows that much profit?

Hmmm? Does that sound realistic?

At the end of the day, given the 15% fractional amount needed, that only supports a 1:1 RV not this fantasy 3.22 number we keep hearing from Okie.

I would take 1:1 all day long and high tail it outa this ride just as fast as my new car would take me!

[Telabiz]

Who you ask , The entire world economics demands a Higher rate and I hope it's a good one

[Frank61]

Okay. Fractional banking. 15% in reserves to cover an RV and I would expect the IMF to include all currency not just that in the hands of speculators? So we are talking 10 Trillion IQD in the hands of foreigners; banks, governments and speculators, approx 37% of the total IQD in circulation?

Let's see? Hmmm? 10 trillion IQD = 8.5 Billion USD as current.

So, 50 billion in current foreign reserves in the CBI calculated to equal 15% of what is needed to cover would fracttionalize out to be 333 Billion USD?

So, a fractionalized 15% of 50 Bbillion USD in reserves would fractionalize to be 333 Billion USD which could support a 1:1 RV according to the math above. so, if that is their plan, a 1:1 RV, they can do it today if all they need is 15% on hand to cover it. And you know what, that would take the wind out of any future speculators sails as I think if they did that, it would be a locked in rate, directly pinned to the value of the USD. Stable. And stable is what they need to become full fledged WTO members.

Not bad... very plausible. I would be happy with that as most everyone would be as it would represent a profit of 117,647% but, I have to ask, is that possible. Who makes and/or allows that much profit?

Hmmm? Does that sound realistic?

At the end of the day, given the 15% fractional amount needed, that only supports a 1:1 RV not this fantasy 3.22 number we keep hearing from Okie.

???

[Stamp]

I bet the starting rate will be 1 IQD = 0.30 USD

[tcat1]

Here is some logic of what an RV rate might be based on the volatility speculators could cause with and RV.

Based on what "The Eagle" says...

There is about 1,000 Trillion Dollars (if all currencies are converted to Dollars) in the world. Strangely enough, the Rothschild family (7 families actually) own just a smidgen over 500 Trillion in assets. These are the nice folks that brought us the Federal Reserve, Bank of England, Bank of Germany and all the other reserve banks. The figures I see repeated from multiple sources tell this story: There are a total of 27 Trillion Dinars in print. BOI has recovered 17 Trillion (about 63%) leaving 10 Trillion in circulation. Of that, the US government owns a reported 5.7 Trillion, individuals and small-time speculators own about 300 Billion (about 3%), and the remaining 4 Trillion is owned by other countries.

Read more: #ixzz1FHPZ5Osw

And knowing that the only ones that will make a run on the banks is the small time speculators who hold 300 Billion Dinar ($225,000,000 USD at the current .00085 USD to 1 IQD rate) the CBI would need cash reserves capable to cover this 300 Billion Dinar run on the bank as governments and financial institutions will keep for oil purchases or investment so it's just the speculators who need to be covered.

Now, the CBI has approximately 50 Billion USD cash reserves as of the end of 2010.

So, based on their reserves, what RV amount could be supported based only on cash reserves, not oil revenues current or potential?

The answer? The CBI, as of current, could support an RV of .165 USD = 1 IQD (a shocking profit potential of 19,412% based on the current rate of .00085 USD = 1 IQD). An RV of this rate (.165 USD = 1 IQD), assuming everyone would cash in at the same time, would require 49.5 Billion USD which is the amount of the CBI's entire foreign currency reserves as of the end of 2010 (300 Billion IQD at .165 USD to 1 IQD = $49,500,000,000 USD).

To RV at .30 USD = 1 IQD they would need approximately 100 Billion USD in reserves to cover the speculator's runs on the bank. So, this will take a while, especially when they are planning on spending that on infrastructure projects.

So all you folks thinking that the RV will be at $3.22... LOL. Ain't gonna happen. Do you have any idea how much foreign currency reserves they would need to do that just to cover the 3% of their currency in speculators hands? Astronomical amounts!!! A 1:1 RV would require approximately $300 Billion in foreign currency reserves in the CBI just to cover speculators. So a 3.22 IQD to 1 USD RV would require approximatelly 1 Trillion USD in reserves just to cover speculators 3% Dinar in circulation. We will be waiting to 2025 for that one But maybe if you hold the Dinar that long, you just may see that.

Do the math. Be realistic. We will be lucky to see 10 cents USD to 1 IQD. And crap... I would be happy with that. 2.5 million IQD = 1/4 Million USD... very nice return. But no overnight millionaires.

Sorry to disappoint.

You didn't disappointment me at all. I know how it's calculated but I'd encourage you to wash that dominate hand of yours because I sure wouldn't eat with it!