An opinion from a certain *planet*

[jaminjimmy90]

I think you have very good insight, when you think in-line on how Iraq will be redeeming these banknotes with oil. Government's will hold a percentage as foreign reserves as well. The question becomes, how much oil are they willing to give up for a certain exchange rate? How will Iraqs economy fair as they will be using the oil revenues for redemption of currency? The CBI shows 50 billion dollars in reserve. The IIMF report page 20 shows out of there total assets, domestic currency deposits were negative 1 billion in december 2010, program. I would think that the cbi would be needing to hold a lot of dinar when an rv happens, so there side increases as well as ours.

Remember the cbi law- article 36 redemption of currency.

2. At the time of the exchange procedure, or at any time specified by the CBI redeemed banknotes shall be demonitized, and cease to be legal tender.

Im not sure if that just pertains to the public, or not. Ive read before where they would be used for bank to bank transactions. My question is has the cbi held onto the dinars they redeemed in the currency auctions, or have they destroyed them?

Jmo

i cant fathom they destroyed any just cause they are taken out of circulation ....

[dinarck]

It all sounds great and I hate to be a downer but most if not all is mere speculation. No one knows how much China or the US hold in dinar if any. Also no one knows the number in circulation and where it is or how much they have "pulled" out of circulation. And certainly no one knows if they will be "giving" oil to the US for 32USD per barrel.

Edited April 19, 2011 by dinarck

[Hirsch]

Sorry, but your wrong. Unless you can prove the following statment,

China and the US have signed agreements that they each will take all of their dinar and all that they cash in from their citizens in OIL @ an agreed upon rate of $ 32.00 per barrel for however long it takes. Without proof of this statment you have nothing to back up your story which makes this just another rumor.

that is the contracted price they have already negotiated. Doesnt matter what crude is at now.

Does it matter HOW it will be paid for in this scenario? one way or another it will be paid You dont really expect for each country to PHYSICALLY send them back their dinars in this digital age, DO YOU? It will all be done via 'digital' barter exchange.

You should do some research into how much a barrel price of oil is divided. You would be surprised who gets what over and above the 32 dollars.... totally amazing

Edited April 19, 2011 by Hirsch

[Ex-wingnut]

Sorry, but your wrong. Unless you can prove the following statment,

China and the US have signed agreements that they each will take all of their dinar and all that they cash in from their citizens in OIL @ an agreed upon rate of $ 32.00 per barrel for however long it takes. Without proof of this statment you have nothing to back up your story which makes this just another rumor.

It's kinda hard to prove a negative. Do you have proof that Santa Claus doesn't exist?

The onus is on the one making the claim, not the one questioning it.

Wrong! "Whodat1" states in his first sentence that the person who wrote the message was wrong. Well, if he truly believes that then he should prove that the statement is wrong. If he can't then why question it? No where in the message did the poster say that that particular statement was truth or fact. Also, as the title states, this was an "opinion" from a certain planet. As the person stated towards the end of the message, "Please feel free to credibly pick this apart if you can". Well... the floor open.

[capt.cliff]

I would like to interject something here which most forget

Oil is always thought of as such oil---no one takes into the consideration of thier natural gas potential, reserves proven and probable [as the oil]- is all the same --energy and exploitable on the world market---and domesticaly --the NG is almost never mentioned but one of the first things I read was the Iraq and Jordan were working a deal to pipe the NG to Jordans seaports for distrubution to the world---pipelines going through Turkey--oil and gas also

Lets not get tunnel vision here and look to the bigger less often reported things happening that push the value of the dinar higher

Should anyone hit me for links --forget it I READ IT HERE!---go back in the posts, it is there

Capt. Cliff

I would like to interject something here which most forget

Oil is always thought of as such oil---no one takes into the consideration of thier natural gas potential, reserves proven and probable [as the oil]- is all the same --energy and exploitable on the world market---and domesticaly --the NG is almost never mentioned but one of the first things I read was the Iraq and Jordan were working a deal to pipe the NG to Jordans seaports for distrubution to the world---pipelines going through Turkey--oil and gas also

Lets not get tunnel vision here and look to the bigger less often reported things happening that push the value of the dinar higher

Should anyone hit me for links --forget it I READ IT HERE!---go back in the posts, it is there

Capt. Cliff

I would like to interject something here which most forget

Oil is always thought of as such oil---no one takes into the consideration of thier natural gas potential, reserves proven and probable [as the oil]- is all the same --energy and exploitable on the world market---and domesticaly --the NG is almost never mentioned but one of the first things I read was the Iraq and Jordan were working a deal to pipe the NG to Jordans seaports for distrubution to the world---pipelines going through Turkey--oil and gas also

Lets not get tunnel vision here and look to the bigger less often reported things happening that push the value of the dinar higher

Should anyone hit me for links --forget it I READ IT HERE!---go back in the posts, it is there

Capt. Cliff

[Hirsch]

And not just oil and huge gas reserves, but I understand their unexploited mineral wealth is considerable

[kwg]

Lonzy I love ya brother good post +1 I couldn't of said it better myself

[CAS767]

I'm not sure he said there was 750 million in reserves just that the 24 trillion the us holds in dinar would basically cover that much oil at a price of 32 dollars a barrell. I think that is what he was saying. If I'm wrong sorry

Sorry I meant to say billions

My point is, it sounds as though they would be using all of their oil revenue (current and future) to redeem the dinar held by the US leaving them very few assets to rebuild Iraq, not to mention maintain the value of of the Dinar. Or am I missing something?

Edited April 19, 2011 by CAS767

[hoosier1470]

I love this outlook on this situation! Seems to be a very sound theory! Great Insight!! Thanks for the post!!! I really enjoy reading a positive outlook on our situation!!! Thanks again!! Warm Wishes..and Gods Blessings to each of you!!!

[Dalite]

Sorry, but your wrong. Unless you can prove the following statment,

China and the US have signed agreements that they each will take all of their dinar and all that they cash in from their citizens in OIL @ an agreed upon rate of $ 32.00 per barrel for however long it takes. Without proof of this statment you have nothing to back up your story which makes this just another rumor.

OR....

The US will help Iraq foot the bill for a large RV by cranking up the Heidlebergs and selling Iraq "The Mother of All Savings Bonds" (My Idea)

OR, the US decides to help Iraq foot the bill for a large RV by Cranking up the Heidlebergs, taking oil in payment, and exporting to China in exchange for debt that China had purchased in the past. This allows the US to contract their liabilities a little. (Someone Elses Idea)

There are all kinds of ways to make it work out. All it takes is a little forward motion from Iraq.

And that is where things seem to bog down...

[Froto]

...

There were originally 30 trillion dinar printed. Well over 80% of that amount has been accounted for and is in the hands of Iraq.

THIS QUOTE IS TOTALLY FALSE.

Please feel free to credibly pick this apart if you can.

SEEING AS HOW THE REST OF YOUR POST DEPENDS ON THE ABOVE, IT'S ALL BS.

I have studied this to no end and I keep coming up with the same numbers.

YOU HAVE STUDIED NOTHING. YOU HAVE ONLY READ UNSUBSTANTIATED SPECULATION, CHOSEN ONLY THAT WHICH YOU WANTED TO BELIEVE, AND REPEATED IT.

[Islandgirl7]

Froto - Bring what you have to the table...to disprove what was written...all you've said here is poster is wrong...you haven't brought anything to support you're right...just sayin'

Read more:

[detroitjazzman]

I used wikipedia only because it was actually one of the highest estimates. Most were in the range of 112-115 billion barrels.

It has been reported that the estimates of Iraqi Oil Reserves is based on 30 year old technology. As the continue to survey their oll fields they are finding that they have a lot more oil than they estimated. As a side note..... the oil reserves estimated in SA are on the decline and its estimated that Iraq has more oil than SA. just saying.

[cruiser]

wikipedia .... shmikipedia .... here are the most accurate estimates known to humankind to date:

Global oil reserves

Country

Reserves (barrels)

Production (barrels/day)

Saudi Arabia

262bn

10.8m

Venezuela

211bn

2.6m

Canada

179bn

3.4m

Iraq

144bn

2.4m

Iran

136bn

4.2m

Kuwait

102bn

2.7m

UAE

98bn

3.0m

Russia

60bn

9.8m

Sources: US Energy Information Administration, Opec

[drox]

Interesting perspective. Sounds like the original author has used some of Marcus Curtiss thoughts (whom I like) and unfortunately mixed in some overzealous gurus to come up with the $8 numbers. Nevertheless I like it when people use their brains to try and figure things out.

Here is the rub...

The IMF works with the GOI and the CBI to come up with an agreed upon rate that is fair to Iraq as well as fair to the world trade partners and world currency market. You must realize that the IMF must protect the majority of its member countries more than Iraq itself. (Although they are looking out for the overall good of Iraq long term without question) Why? Because majority rules. IF Iraq comes out with a ridiculous RV number then it will destroy the integrity of fair trade with Iraq. Iraq would be at a superior advantage to other nations. Not to mention that Iraq would create a nightmare for itself because it would be so cheap to import everything that it would be fruitless to create new industries or even sustain the old ones. Barring oil of course. Iraq was a more balanced GDP and not be susceptible to the oil and gas price fluctuations that the 90% of GDP oil dictates. This unreasonable RV number would effectively cause Iraq to implode. It can not sustain itself and would be taken over so how some way for its asset. Think reasonable value with ability for market induced growth and you will be more on track. In my opinion of course.

[Sparky69]

Iraq hasn't even scratched the surface as far as SURVEYING how much oil is there.All estimates to date are just that.Estimates.Of course they have a very large amount of proven reserves.That is evident but they may have reserves much much higher than anything previously stated.I have read an article stating an estimated 500 bbl.

It was also noted on this thread that Iraq is very rich in natural gas and minerals,gold is one they have an abundance of.How much of these resources?Who know's yet.surveying I'm sure is just in the beginning stages for some of these resources.With the shift in international currency policies seeming to be just around the corner,gold is an excellent commodity to have.With all the uncertainty in the development of nuclear reactors and weather instability around the globe etc..natural gas will become it's main replacement for generating stations.Both will add a substantial amount to Iraq's wealth.

One other thing that is interesting.The USA has no national energy policy.In fact they seem to deter any exploration and drilling programs.One reason may be that they already have a plan in place to provide the US with cheaper fuel than they can provide themselves?? .Not to mention the profits and jobs for American companies in Iraq that will be(are)available.Lifting costs per barrel in North America are around $33.00 I believe compared to Iraq's $1.36!!(no-link but did read in oilfield magazine-work in oil).This isJMO but something else that gives the original post some credence?Maybe?.

Cheers All,

Sparky

[Bambino3]

This post actually said that China and the US would buy Iraq's oil for $32/brl. China???????? How many Chinese are under ground for fighting for Iraq's non-deserving democracy. Yeah, my point. The Donald doesn't state things with explanation. Here is what he should have said. The USA has first rights to Iraq's Oil at the bargain basement price. With our permission, they can sell their oil to others, but we get the 'fallen soldiers" discount.

And, Mr. Rich. There is some allusion to Santa Claus. He doesn't exist? Well, maybe not as a person, but certainly as a country - The USA.