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Central Bank: It is time to re-evaluate the currency, commensurate with the price changes and the wage in the economy


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I think Shabibi said excactly what all the articles are saying including the latest article that is screaming LOP. I mean I think the debate is over on what they are talking about. JMO

OK the debate is over in your OPINION your right.......................give it a rest.

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I think Shabibi said excactly what all the articles are saying including the latest article that is screaming LOP. I mean I think the debate is over on what they are talking about. JMO

Shabbibi also used the word Re-evaluate in the video. And what that means to Arabs is increase the exchange rate! Whether he is telling the truth or not I don't know. But what he says means to increase the exchange rate. The only person in the video that used the word re-denominate was the second man that asked a question.

Why don't you make believe your legs have been amputated instead? :D

But keep it up. I'm guessing you might be trying to discourage those thinking about buying Dinar. Probably a better chance if less are doing it.

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Let me ask you all something...

If the US has 7.6 trillion in circulating currency, and the Dinar is about at 27 trillion, how does the math work out on that?

We are a bigger economy. They either have to take most of their currency off the table to even things up, or they have to shave off a bunch of zeros.

The big question being do they take the 3 zeros from the .00086 of a dollar that the value is, or do they strip off the 3 zeros from your currency? Your 25000 dinar note is now worth the new 25 dinars that are each worth a buck. I have a lot of these bad boys, but I am starting to believe the old adage: "There is no such thing as a free lunch." .

I want an RV as much as the next person, maybe even more, but by looking at these numbers, the bank really has to pull most of it's money off the counter for this to even come close to the numbers you all are all looking at or hoping for.

Please clarify.

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Let me ask you all something...

If the US has 7.6 trillion in circulating currency, and the Dinar is about at 27 trillion, how does the math work out on that?

We are a bigger economy. They either have to take most of their currency off the table to even things up, or they have to shave off a bunch of zeros.

The big question being do they take the 3 zeros from the .00086 of a dollar that the value is, or do they strip off the 3 zeros from your currency? Your 25000 dinar note is now worth the new 25 dinars that are each worth a buck. I have a lot of these bad boys, but I am starting to believe the old adage: "There is no such thing as a free lunch." .

I want an RV as much as the next person, maybe even more, but by looking at these numbers, the bank really has to pull most of it's money off the counter for this to even come close to the numbers you all are all looking at or hoping for.

Please clarify.

Iraq has 27 trillion dinars in circulation but if you think about it thats not much because they are only worth 27 billion US dollars. Problem is if they RV then the 27 trillion dinars become 27 trillion dollars depending on what they bring the exchange rate to. Yeah, That's the question. How do they do that? I dunno. I guess they could LOP.

Edited by dinarck
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The CBI had 27 Trillion in circulation, but they have stated recently they removed at least $3 Trillion from circulation. That leaves 24 Trilion dinar in circulation within and outside the country.

I can assure you they cannot RV at anywhere near $2 or $3 USD per 1 dinar. That is simply impossible. They would first have to LOP then revalue at those high numbers. An RV above $3 without removing the zeros would cause Iraq to have more money in circulation than is available in all nations of the World. It's simply not going to happen. They either LOP and RV, or they simply RV at a very low adjusted rate. Bear in mind, countries like South Korea have large denominated currency that is actualy worth LESS than the current IQD, yet they are members of the WTO and their economy is thriving. So those who say Iraq cannot keep their current value and be members of the WTO are simply misinformed. Look up the IQD and compare it to South Korean WON. You will discover powerful and thriving South Korea has a Won valued BELOW the Iraqi dinar. That should put all this talk of Iraq must revalue to bed.

They LOP turning 20+ trillion to 20+billion? Any Tom, Fred, or Hank could just go buy the damn country. And 50 trillion in oil reserves? Please. Cross your fingers this happens before we(U.S.) pull out and Iran pulls in!

Edited by thatoneguy
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It seems like a LOP would be the only way that it would make sense. Trust me, I don' t like it either. Perhaps the only ones to make money off of this one will be the big boys, and the Dinar Trade guys. Why would they want hundreds of millions of their oil dollars to go to a bunch of middle Americans that have nothing to offer them?

I am still hoping for something different, but if you were one of the big boys, would you create a mass-exodus of US dollars from your country? The only way not to is to just re-value the currency. Just take every big Dinar note and shave those last 3 zeros off the end. Re-value at 1:1 dollar, and you can make your rich buddies richer, and middle Americans can soak up the losses, as we always do. I am a doubter, but I am holding on to the Dinar for all it's worth, or maybe for all it won't be worfb

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They LOP turning 20+ trillion to 20+billion? Any Tom, Fred, or Hank could just go buy the damn country. And 50 trillion in oil reserves? Please. Cross your fingers this happens before we(U.S.) pull out and Iran pulls in!

They turn 20++ trillion "Dinars as they are woth now"

into 20++ billion "Dinars that are woth 1 US dollar"

Now does it make sense?

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They LOP turning 20+ trillion to 20+billion? Any Tom, Fred, or Hank could just go buy the damn country. And 50 trillion in oil reserves? Please. Cross your fingers this happens before we(U.S.) pull out and Iran pulls in!

Well, I think the amount of cash in circulation is much less than a county's actual worth. I am just saying that why would Iraq have 27 trillion in currency in circulation that is at the same value as the US dollar, when the US only has 7.6 trillion dollars in circulation?

I am just talking dollars and cents here.

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Let me ask you all something...

If the US has 7.6 trillion in circulating currency, and the Dinar is about at 27 trillion, how does the math work out on that?

We are a bigger economy. They either have to take most of their currency off the table to even things up, or they have to shave off a bunch of zeros.

The big question being do they take the 3 zeros from the .00086 of a dollar that the value is, or do they strip off the 3 zeros from your currency? Your 25000 dinar note is now worth the new 25 dinars that are each worth a buck. I have a lot of these bad boys, but I am starting to believe the old adage: "There is no such thing as a free lunch." .

I want an RV as much as the next person, maybe even more, but by looking at these numbers, the bank really has to pull most of it's money off the counter for this to even come close to the numbers you all are all looking at or hoping for.

Please clarify.

Well. Hopefully the stories of the CBI removing the physical currency in Iraq from circulation are true. And that the amount outside of Iraq is a lower number than that inside Iraq. Those in charge should know what they are doing and are limiting the amounts in and outside of Iraq.

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Can anyone back me up on the LOP (removing 000) will not increase buying power, because it will take the same percent of currency.

Your right... A simple LOP/Re-denomination will not incease the buying power.

It also won't reduce the need for amount of cash to be carried either.

If we have an item that sells for 50,000 IQD.

It would take roughly 2-25,000 IQD notes to purchase the item (also 10-10,000 IQD notes)

If a lop were to occur that same item would now become 50 IQD

This would mean that the same customer would have to carry either 2-25 IQD notes or 10-10 IQD notes (Note, that this would be the newly re-denominated notes)

Therefore, the same # of bills necessary to be carried to purchase the items does not change.

If anything, it may cause confusion as many citizens at moments in time would carry two seperate IQD currencies.

Than we have to consider the #s and assume people may feel once again, that they lost a large amount of wealth. (This could cause civil unrest alone..)

Now, lets consider that the entire currency would have to be exchanged. - Meaning money spent on designing, printing, transporting, and providing security to help exchange.

Than consider the amount outside of the country that would come in with the expectation for it to be exchanged.

Meaning - No more or less buying power, money spent for costs of the new currency & also an infusion of currency to be exchange from outside speculators.

Than, we look at how the CBI greatly reduced the the ride on up for making profits on the buy/sell of the currency. I think they would make more money on the ride up versus LOP and holding a value and simply buying & selling.

But, with all this said, anything is possible.

I think a change in purchasing power should be in order however.

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It is my understanding that many countries have made other deals for the dinar they are holding? So the 27 trillion would be a miscount........right?

Just asking? thank you

That is the theory I have been hearing. Not sure what will happen though. Isn't this exciting.

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They turn 20++ trillion "Dinars as they are woth now"

into 20++ billion "Dinars that are woth 1 US dollar"

Now does it make sense?

What sense should i make out of this? 20++ billion "woth" equivocating to the value of the dollar at 1:1 is just ludacris. There is no way that a country can run on 20 billion,AHA, brainstorm, the begin to borrow, barter, exchange oil for $$, goods, food, etc.

BUT- Before my AHA came, did you read scooters post that bernake shucked out right about 7 trillion to various corps, banks, etc. So thats where i'm fuzzy on the claims of 7.6 U.S. in circulation. There is definitley a MUCH BIGGER PICTURE that any of us, no matter how hard we try, will never grasp or fiqure out. Apologies in advance for stirring the pot. I just don't see a LOP happening. Smoke and mirrors. They announce RV, everyone wants to go buy dinar. They announce LOP, no one wants anything to do with the dinar. Follow me? Please refer to disclaimer below:

Disclaimer: Goooooh RVeeeeeeeee

Workinchump... i'm totally w/ ya. And what a beautiful pooch. Chao.

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Can anyone back me up on the LOP (removing 000) will not increase buying power, because it will take the same percent of currency.

The concept of inflation states there Is too much money chasing too little goods.

It is an imbalance that gives the appearance of the goods being higher in price, due to the loss of buying power of the money chasing them.

The converse situation when there are more goods than money, prices fall.

Dropping the 3 zeros will contract the money supply, giving the remaining money higher buying power.

Does it actually work this way?

All I can say this is the economic model that addresses your question.

The real question is whether removing 3 zero only bills, and not shifting the decimal point on the other currency is, in fact, a lop.

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It is my understanding that many countries have made other deals for the dinar they are holding? So the 27 trillion would be a miscount........right?

Just asking? thank you

Plus the report that 70% had been drawn in. And today I heard that a portion of the Dinars were destroyed in a flood. They had to have more Dinars printed because of this damaged currency so the 27 trillion probably includes the destroyed Dinar.

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Plus the report that 70% had been drawn in. And today I heard that a portion of the Dinars were destroyed in a flood. They had to have more Dinars printed because of this damaged currency so the 27 trillion probably includes the destroyed Dinar.

You mean the 70% of excess liquidity? Haven't seen a report that 70% of 000 dinars have been removed. Do you have a link? I would be intrested to see that.

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