someone please answer my question

[keepmwlknfny]

Hmmm, well I have read that 6 trillion is in digital. I will look for the article. Anyway, as with any investment, there are no guarentees of any return. Really, all we have to go on is what Shabibi tells us, the rest is conjecture such as your theory. As for you, I liked the old keep, the one that put himself out there with a hard date for an Rv. I think it was by the first week of Novermber 2010. And if it didnt, you would take a picture dressed up like a woman for the chat room to see. You were fun to rean then. That was the optomistic keep, even if it ended in being wrong. Still fun. Now were left with the pesimistic keep. Your comments to all are dried out like a raisin. I happen to know that hanging out here to long can have bad effects on ones charisma. Take a break man. I want the old Keep back!

Im not all negative!! I still know we are going to make money off this.....I guess after all that I took another step back, as did some others and I just re-analyzed the situation and everything going on....not to mention there hasent been much positive going on since MOST of CH7 was released...heck its sad to sit here and think its been over a year since elections and they still dont really have a fully functional govt!! I know it will RV......its just a matter of how.....Ive done so much reading and conversing with scooter that I feel I have a good grip on all the positive...just looking at the other side of things to be prepared for whatever might happen!!! But on a happy note, I think seeing that Visa wants to implement cards to the citizens is a step in the right direction AWAY from a lop happening....if they succeed then that is the answer to reducing the physical money supply!!! They want to get the trust of the citizens again and if they can, and get the citizens to deposit their money into the banks, then those numbers will drastically reduce and it makes the possibility of a higher RV more realistic!!!

[DinarSeeker]

Hmmm, well I have read that 6 trillion is in digital. I will look for the article. Anyway, as with any investment, there are no guarentees of any return. Really, all we have to go on is what Shabibi tells us, the rest is conjecture such as your theory. As for you, I liked the old keep, the one that put himself out there with a hard date for an Rv. I think it was by the first week of Novermber 2010. And if it didnt, you would take a picture dressed up like a woman for the chat room to see. You were fun to rean then. That was the optomistic keep, even if it ended in being wrong. Still fun. Now were left with the pesimistic keep. Your comments to all are dried out like a raisin. I happen to know that hanging out here to long can have bad effects on ones charisma. Take a break man. I want the old Keep back!

Keep, this is what I read, it was from Adam regarding the digital $

* Adam Montana Chat: Dinar Vets 4/8/11

April 8, 2011 By Fred Wilson Leave a Comment www.DinarVets.com

captured bits and pieces of Adam’s chat this morning… for the entire chat, please visit Dinar Vets.

[Adam Montana] I’m invested in the Dinar because I believe it’s a good investment

[Adam Montana] whether the GOI or the IMF or the HCL farts today makes no difference to me

[Adam Montana] I know it will happen in good time

Later…

[Adam Montana] the number is slightly important but it’s not as large as you’d think

[Adam Montana] how much money does the US have?

[Adam Montana] and please count the money that we have in our banks, not just paper money

[Adam Montana] Iraq has 90% paper money 10% digital

[Adam Montana] the number in circulation sounds large

[Adam Montana] but they don’t have a lot when you consider the digital to paper ratio

[Adam Montana] now there WILL be a huge “pull” on the “paper” currency

[Adam Montana] but it will go into notes and debt

[Adam Montana] there’s no doubt that Iraq will go into debt when they RV

[Adam Montana] the saving factor

[Adam Montana] is that they have the resources and the stability to pay for it

[Adam Montana] not quite 27T

[Adam Montana] but that’s one of the reasons why I don’t subscribe to a $ 3 RV

[Adam Montana] cut that number down to .30

[Adam Montana] you turn $ 1000 into $ 300,000

[Adam Montana] and then watch it climb

[Adam Montana] that’s also why I don’t subscribe to a float

[Adam Montana] Iraq will be best served to open low

[Adam Montana] buy Dinar back from us

[gwright] .30 sounds great to me…

[Adam Montana] then sell it back on the way up

[Adam Montana] Iraq mkes more money than any of us

[redeemed] RV fact or fiction

[Adam Montana] Linda from the time of RV I think it goes like this

[Adam Montana] IMMEDIATE drastic spike

[Adam Montana] stable for a week or two

[Adam Montana] sharp climb for 3 months

[Adam Montana] then steady climb for 5 years up to the $ 2 range

[Adam Montana] I know many people want to hit $ 2 faster than that

[Adam Montana] but let’s be realistic

[Adam Montana] Iraq isn’t dumb

[Adam Montana] they will make money on the way up

[Adam Montana] and milking it on the way up is beneficial to Iraq

[brett barker] will we be able to hold as long as we want to or will they call all in at once

[Adam Montana] brett barker we don’t know

[Adam Montana] I hope we are able to take our time…. but at the first scary news article, I’m cashing it all out at .10 or higher

Comments

Im not all negative!! I still know we are going to make money off this.....I guess after all that I took another step back, as did some others and I just re-analyzed the situation and everything going on....not to mention there hasent been much positive going on since MOST of CH7 was released...heck its sad to sit here and think its been over a year since elections and they still dont really have a fully functional govt!! I know it will RV......its just a matter of how.....Ive done so much reading and conversing with scooter that I feel I have a good grip on all the positive...just looking at the other side of things to be prepared for whatever might happen!!! But on a happy note, I think seeing that Visa wants to implement cards to the citizens is a step in the right direction AWAY from a lop happening....if they succeed then that is the answer to reducing the physical money supply!!! They want to get the trust of the citizens again and if they can, and get the citizens to deposit their money into the banks, then those numbers will drastically reduce and it makes the possibility of a higher RV more realistic!!!

Your a good man KEep, thanks for the response Your 100% right, sorry for throwing stones at you !

[TechOps]

They would turn into 50 cents and 25 cents.....

Not that i wouldnt put it past them to do that to their own people but wouldnt that cause chaos...

[Bigboy0854]

FROM PD:

Do you think Iraq needs to lop? Well for those of you stuck on the lop, Read on.

If you want to understand how it works without having to lop the zeros, then read this IQD report of The Plan from a former State Department economist. Our retired State Department economist worked on the original plan.

First, The Plan, page 14 the new currency

http://www.gwu.edu/~...rastructure.pdf

In a nutshell: create a new currency. Sell it to speculators and raise Iraq's official, aka Forex Reserves (currently over $50 billion) and when the time comes, use those massive oil reserves to cash in all those dinars. How -- Cheap (to extract and process), premium priced oil - lots and lots of cheap, premium priced oil. Iraq sells/exchanges oil worth $10,000 on the market (roughly 92 barrels @ $108), for $10,000 worth of post RV dinars. Well how does that work, simple - that $10,000 worth of oil probably only cost Iraq $1.50 to $150. Starting to get the picture now?

Retired State Dept economist:

begin

In our 40+ year career as a Retirement Consultant we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

1. He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in

a. controlling the rate of inflation,

b. controlling the value of the IQD in a declining economic environment and

c. implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a subsection of the original group that Iraq, State Department and IMF financial people bounce things off of.

2. We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

The export oil revenues are still under the control of the UN supervised DFI, and Iraq only gets roughly 30% of the fair market value of the oil they are selling, which is to be used only for budgetary expenditures. Since Shabbi, the head of the CBI, knew he couldn’t get anymore cash flow out of the controlled revenue system the IMF/UN had him under, he opened a currency sales window at the daily auctions to tap into the wallets of the worlds speculators. Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

3. We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddam’s picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

4. The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion - $1.7 trillion IQD.

Maybe this will help, Pt 2

5. Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it’s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country’s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange.

This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators.

The complete discussion was rather lengthy so here’s the executive summary of how the exchange should work with IQD owned by a US speculator:

1. IQD is released internationally with an exchange rate of $1 USD = 1 IQD

2. IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y’s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate - Bank Private Rate - Bank Public Rate) imposed, but he had no input on that subject.

3. The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn’t any country whose currency was perceived as being equal to or stronger than the USD. The IQD with it’s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it’s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can’t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place.

4. Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury.

5. The Federal Reserve under a controlled redemption plan supervised by the IMF, will use its foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc.

This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications.

The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example:

1. Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account.

2. Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model.

3. The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X are now in the ‘rich’ category and get to enjoy the 35% tax bracket. This lowers the net cost of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out - $3,500 in).

4. The Fed’s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

5. The $10,000 order is filled with 200 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 - .50 - .35)

6. The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD.

Simply put, it cost Iraq $130 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $10,000 worth of oil for a net cost of $6,500. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Now let’s really stir the pot by:

a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros.

c) Also execute the plan Iraq announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.

d) To add a little more intrigue have the CBI continue to use it’s sales window to market oil futures and Forex contracts. They have shown they can generate significant cash flow in the private market, think of their impact in public markets.

We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it’s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990.

$3.21+ as I remember, which is suggested is the same exchange rates cabinet ministers reportedly used to project the 2010 budget.

end

[keepmwlknfny]

FROM PD:

Do you think Iraq needs to lop? Well for those of you stuck on the lop, Read on.

If you want to understand how it works without having to lop the zeros, then read this IQD report of The Plan from a former State Department economist. Our retired State Department economist worked on the original plan.

First, The Plan, page 14 the new currency

http://www.gwu.edu/~...rastructure.pdf

In a nutshell: create a new currency. Sell it to speculators and raise Iraq's official, aka Forex Reserves (currently over $50 billion) and when the time comes, use those massive oil reserves to cash in all those dinars. How -- Cheap (to extract and process), premium priced oil - lots and lots of cheap, premium priced oil. Iraq sells/exchanges oil worth $10,000 on the market (roughly 92 barrels @ $108), for $10,000 worth of post RV dinars. Well how does that work, simple - that $10,000 worth of oil probably only cost Iraq $1.50 to $150. Starting to get the picture now?

Retired State Dept economist:

begin

In our 40+ year career as a Retirement Consultant we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

1. He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in

a. controlling the rate of inflation,

b. controlling the value of the IQD in a declining economic environment and

c. implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a subsection of the original group that Iraq, State Department and IMF financial people bounce things off of.

2. We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

The export oil revenues are still under the control of the UN supervised DFI, and Iraq only gets roughly 30% of the fair market value of the oil they are selling, which is to be used only for budgetary expenditures. Since Shabbi, the head of the CBI, knew he couldn’t get anymore cash flow out of the controlled revenue system the IMF/UN had him under, he opened a currency sales window at the daily auctions to tap into the wallets of the worlds speculators. Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

3. We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddam’s picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

4. The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion - $1.7 trillion IQD.

Maybe this will help, Pt 2

5. Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it’s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country’s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange.

This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators.

The complete discussion was rather lengthy so here’s the executive summary of how the exchange should work with IQD owned by a US speculator:

1. IQD is released internationally with an exchange rate of $1 USD = 1 IQD

2. IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y’s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate - Bank Private Rate - Bank Public Rate) imposed, but he had no input on that subject.

3. The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn’t any country whose currency was perceived as being equal to or stronger than the USD. The IQD with it’s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it’s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can’t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place.

4. Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury.

5. The Federal Reserve under a controlled redemption plan supervised by the IMF, will use its foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc.

This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications.

The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example:

1. Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account.

2. Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model.

3. The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X are now in the ‘rich’ category and get to enjoy the 35% tax bracket. This lowers the net cost of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out - $3,500 in).

4. The Fed’s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

5. The $10,000 order is filled with 200 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 - .50 - .35)

6. The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD.

Simply put, it cost Iraq $130 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $10,000 worth of oil for a net cost of $6,500. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Now let’s really stir the pot by:

a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros.

c) Also execute the plan Iraq announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.

d) To add a little more intrigue have the CBI continue to use it’s sales window to market oil futures and Forex contracts. They have shown they can generate significant cash flow in the private market, think of their impact in public markets.

We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it’s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990.

$3.21+ as I remember, which is suggested is the same exchange rates cabinet ministers reportedly used to project the 2010 budget.

end

Thanks bigboy.....that explanation has been posted numerous times....the link you provided just states the plans to get the value of the dinar back to previous rates....which can be done in different ways....doesnt discredit a lop.....now to the economists view.....it basically just explains how an exchange would work if they RVd at 1 dollar....basically where he thinks the money would or could go....still doesnt dispute the possibility of a lop or even addresses the problem with the currency in circulation other then by saying basically in country it would still be a lop......but for some magical reason we get face value while the citizens dont But again even he states it will be like a lop but makes it sound good to us like it wont lop outside the country?? Doesnt make alot of sense in my book!!

[Jim1cor13]

It amazes me that people give negatives to a post like this that only speaks the truth. I got you back to even

Thank you Drunken Irish and keepm

I agree, it always amazes me when actual truth is told,

it is not at all what folks want to hear, but send them a rumor,

and it is loved.

A + for you both for understanding both sides and speaking truth. If

we are to be knowledgeable, one must understand both sides of the

coin so to speak. To ignore one side of any investment or speculation

is to be unprepared.

All my best!

Jim

---

[Sucma]

Bottom line if we all believed lighting would strike twice in the same place (Kuwait) then we would all place a 10,000,000 dinar order right now. Real solid intel gives us the ability to located and place the ROD! LOL.

We just do not quite have the latitude and longitude yet. Iraq is quiet on much. I am not saying we dont have rumors. But that small chance is still there that is why we hold on and make friends in here knowing we have a really good chance of tripling our investment at worst!

[gbrlgms]

Hmmm, well I have read that 6 trillion is in digital. I will look for the article. Anyway, as with any investment, there are no guarentees of any return. Really, all we have to go on is what Shabibi tells us, the rest is conjecture such as your theory. As for you, I liked the old keep, the one that put himself out there with a hard date for an Rv. I think it was by the first week of Novermber 2010. And if it didnt, you would take a picture dressed up like a woman for the chat room to see. You were fun to rean then. That was the optomistic keep, even if it ended in being wrong. Still fun. Now were left with the pesimistic keep. Your comments to all are dried out like a raisin. I happen to know that hanging out here to long can have bad effects on ones charisma. Take a break man. I want the old Keep back!

AMEN TO THAT BROTHER,(KEEP) TAKE A TIMEOUT YOU NEED IT............

[detroitjazzman]

LOL....correct me if Im wrong since I only got through Algebra 1 and Geometry but isent that how it stands now?? And how it should always be??

sorry about that ,,,,what i ment that a 25k notw would be worth less than a 50.00 note..peace

[Bigboy0854]

keepmwlknfny - The economist premise is very possible when you consider iraq's oil revenue potential versus its cost of production. In addition we do not know how much of the 27 trillion in currency is actually outstanding as opposed to the amount held by the CBI. If we knew this then we could predict the RV rate - otherwise its anyone's guess - do you agree?