Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Dinar Talk what is the real deal?


BanG
 Share

Recommended Posts

Bang........I couldn't have written it any better. Your thoughts are logical and should be read by anyone with doubts in their mind. This site would be a much poorer place if you didn't share with the rest of us.

Thank you.

Edited by venetia
  • Upvote 5
  • Downvote 1
Link to comment
Share on other sites

Thank you all for the positive feedback and the support in your posts. I have tried to present the truth and facts that will hopefully ease the tensions with all the BS rumors and hype going around I feel it is important to observe the posts out there as they can get very confusing at times. Peace.

  • Upvote 3
Link to comment
Share on other sites

I respectfully disagree, on this point:

One $25,000 Dinar note is the equivalent of $21.28 USD. I hardly think that bringing that $25,000 Dinar note to a $250 Dinar note will create "civil unrest" or a civil war if its value is still worth $21.28 USD, nothing changes... NOTHING, except the amount of zeroes on the bill. The VALUE of that note is still the same internationally, and within Iraq, the only thing that has changed is the numbers (the zeroes) themselves on the bill... again... NOT the VALUE of the bill. Of course, this is just my take on things.

There are numerous other countries that have done LOP's, so just read up on them. I really don't understand why people say that a LOP "cannot happen", it sure as hell can and there are more than a dozen examples in history to prove this point. Heck, Brazil alone had something like 4-5 LOP's before that last one finally took and their currency stabilized.

I agree that inflation is under control in Iraq, whether that be for the short, or long, term we don't know. I've posted under LOP Talk the links from an Iraqi Gov't official who said that they are using Turkey's 2005 "redomination", or LOP for us here at DV, as a model for their own "redomination". I know it isn't pleasant to hear and none of us want this, but to say definitively that a LOP "won't happen so get off of it" is, IMHO, foolhardy.

BTW, I think about 99% of us on this site are UNQUALIFIED to give EXPERT opinion on what will, or will not, happen. So suggesting that the people who broach the LOP talk, "HAVE NO CLUE" is to insinuate that you do. I, for one, would like to see your credentials showing me that your economic expertise outweighs those opinions, thoughts, that do not align with your own.

  • Upvote 2
  • Downvote 6
Link to comment
Share on other sites

Recently there seems to be allot of LOP talk by a few individuals that have no clue about what they are suggesting. Lets look at this Logically: The following are just examples for our purpose of understanding the LOP implications.

1. Dinar notes sold and purchased at face value like $25,000 or $10,000 Dinar notes. These are legal tender and were authorized by the Iraqi government. These bills are still in circulation paying contractors and investing company's in Iraq.

2. If I had an American $100.00 dollar bill and went to exchange it or spend it and the reply was sorry we took away one zero it is now worth $10.00, what do you think logically would happen to the US economy? what about all the companies we do business with? This would collapse the economy and create civil unrest for being lied to. Iraq cannot in mid stream say oh we decided to give you $250.00 dollars for every $25,000 dinar note?? Further what would be the point? Their projected oil output at the prices agreed upon in their budget is priced in dollars per barrel.

3. Worst case scenario as I see it is they continue selling and building up their foreign reserves and then scrap their whole monetary system. Thus they would have to start over with a new type of money costing them hundreds of billions of dollars to do this, it would also be a logistical nightmare. They would have to make the new money first, then offer repayment to all the countries and contractors involved in Iraq. The colossal damage it would do to their global credit rating and the currency instability would cause widespread panic and loss of confidence when dealing with Iraq and especially their currency being accepted as a legitimate currency.

Thank you for such a well written piece and explanation!

4. Remember CBI Governor Shabibi said there would be NO LOP, so Iraq as a nation knows the following variables. Through the licensed Iraqi Dinar resellers they know how much of their money Is in circulation and roughly what it would cost them to cash in the money remaining on the general market value. Consumer confidence would crash thus leading to a much wider run on the banks cleaning them out in 24 to 48 hours. So I think we can rule out the LOP Crap. It just cannot happen IMO.

The discussion about a lower rate depicts a totally different opinion on my part and here's why I feel this way:

1. The value of a currency symbolizes a country;s economic output along with consumer confidence in it's own monetary system. when Iraqi consumers begin spending their Dinars on consumables and of course the western lifestyles such as cars, big screen TV's and bigger better homes they damn sure are not going to go backwards add the fact that many Iraqi's have never traveled outside of Iraq, they will come to realize all the benefits of being a free people with a currency of comparable rates to their neighbors they will want more of the goods they have been missing out on for so many years.

2. Lets look at this from an economic perspective, Lets say Iraq RV's at a rate of 35cents at that rate of exchange the Saudi's and the surrounding countries would be GREATLY encouraged to stop pumping their own oil, buy it from Iraq at the bargain basement prices and then resell the oil to the western nations making HUGE profits while all their oil is being saved for a rainy day such as Iraq's oil being pumped dry , from overuse and being under-priced. Not a very favorable situation for Iraq or us IMO.

3. It is in Iraq's best interests to come out of the hole their in swinging. The only RV restrictions are that Iraq cannot exceed it's neighbors rates + or - 20%. Given this set of circumstances Iraq is in a very strong position, for Iraq this could be a win win return as a global power and economic leader within their region for now. I mean even if they came in to the pre-war value of $3.22 this rate would certainly do the following, boost consumer spending and confidence, encourage foreign companies to rethink their approach when conducting business in Iraq and allow Iraq to grossly exceed their expected oil revenues all of which paint a very favorable outlook for Iraq.

4. finally we all know what these implications apply to many of us, First Time Millionaires! Paying an enormous amount of taxes as a whole to the US government will ease the deficit significantly as well. what will this do for our economies you ask? Pay off homes, buy new cars and get rid of the revolving credit so many of us have as well. Lastly factor in the investments markets we will undoubtedly be getting into to protect and grow our own personal wealth.

In closing my summary on our investment

1. Stay the course and hold on for a bit longer we will get there soon enough and the payout will be much more than you thought possible, Iraq is financially very strong in two areas, Foreign holdings and in Precious metals i.e. Gold and Silver.

2. You can be sure that Iraq has strong indicators about how much of their currency is still in the commercial market as well as the civilian market and they are well aware of these costs involved.

3. We are at the pentacle of this Investment I believe, soon our hopes and dreams will come to fruition and we will all begin a new chapter in our lives, the question on this one is will we make a difference or not. Peace.

Thank you for such a well written piece and explanation! :)

Edited by genx4me
Link to comment
Share on other sites

Thank you BanG for your positive thoughts. I learn more info about the dinar whenever you post. I don't know if you are right or wrong IYO but you show much logic in the topics you write about and you write well with easy, clear explanations. I say right or wrong because for every opinion in one direction, there are other members posting their opinions in another direction on the same topic with good logic as well. That's why I enjoy reading from all of you. There's information being put out there for and against why somthing will happen one way or another way. We learn from all of the printed info and we decide for ourselves. keep posting..

Thanks again,

Link to comment
Share on other sites

I AGREE. Not only can there not be a LOP, it cannot even stay as it is because if you run the numbers on the new budget and the confirmed (1.8 milion barrels daily) output of oil, there is a SERIOUS shortfall in the numbers UNLESS it is make UP by the revaluation of their currency. They have NO other way of reaching their budget estimates.

I AGREE. Not only can there not be a LOP, it cannot even stay as it is because if you run the numbers on the new budget and the confirmed (1.8 milion barrels daily) output of oil, there is a SERIOUS shortfall in the numbers UNLESS it is make UP by the revaluation of their currency. They have NO other way of reaching their budget estimates.

Reember they are under contract to produce oil at SET rates, regardless of the PRESENT and FLUCTUATING prices of oil.

Link to comment
Share on other sites

Totally agree with you and one add. Go back to 2003 when the Iraq people had money worth something and overnight it became worth nothing. If we were in their shoes we would want something back. If I had 100K stashed in the bank and overnight it was worth $100 I would be pissed off to high heaven. Even aside from what we make off this, I think the citizens of Iraq at least have the right to have their wealth back. 7+ years is a long time to go living in poverty when some may have been wealthy prior.

  • Upvote 2
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.