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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 had this translated in arabic to english,by my dubai buddy. what they are saying is its time to revalue there currency to get on par with goods and services, and the only way this would be a sucess is for the rate to be around $1.00. it also seems that they have a sense of urgency on doing this as well. i know i dont come on this site anymore, but it was painful watching people getting the meaning of this article wrong......

If that is truly what they are saying, then a lop simply wont help them. Why would cutting off 3 zeros help their economy. maybe a RV AND the lop, but just the lop alone really doesnt do anything. Seriously people, explain to me how a lop helps Iraq? I have yet to hear this answer.

Also, explain to me why just a few short years ago, Iraq prints off hundreds of thousands, possibly millions of notes with the 3 zeros knowing very well that within 5 to 8 years, they'll print new ones without the zeros (lop in this case)? It isn't internationally recognized... why should they care if the "unofficial" exchange rate was 1170:$1? Why not just make it 1:1 from the start? Like I said, it isnt internationally recognized, so why cant they do whatever they want?

Another point... whether they RV or LOP, they will have to "re-denominate" (as in print NEW notes)... so this whole "lost in translation" thing might be a worthless point. They're not going to RV for $.25 and NOT print new notes. Their 500 dinar note would be worth $125! It's clear that they WILL re-denominate, no matter which path they go. And please dont try to argue with me saying "well that's not what re-denominate means... it means lop" because honestly, YOU dont know. Is there an Arabic to English handbook stating exactly what the google translate output means when it references certain terms? If so, let me know where I can find it.

Bottom line is NOBODY knows what's going to happen. Why would they tell you they're going to increase value with no lop? They wouldn't. Just let whatever happens, happen.

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If that is truly what they are saying, then a lop simply wont help them. Why would cutting off 3 zeros help their economy. maybe a RV AND the lop, but just the lop alone really doesnt do anything. Seriously people, explain to me how a lop helps Iraq? I have yet to hear this answer.

Also, explain to me why just a few short years ago, Iraq prints off hundreds of thousands, possibly millions of notes with the 3 zeros knowing very well that within 5 to 8 years, they'll print new ones without the zeros (lop in this case)? It isn't internationally recognized... why should they care if the "unofficial" exchange rate was 1170:$1? Why not just make it 1:1 from the start? Like I said, it isnt internationally recognized, so why cant they do whatever they want?

Another point... whether they RV or LOP, they will have to "re-denominate" (as in print NEW notes)... so this whole "lost in translation" thing might be a worthless point. They're not going to RV for $.25 and NOT print new notes. Their 500 dinar note would be worth $125! It's clear that they WILL re-denominate, no matter which path they go. And please dont try to argue with me saying "well that's not what re-denominate means... it means lop" because honestly, YOU dont know. Is there an Arabic to English handbook stating exactly what the google translate output means when it references certain terms? If so, let me know where I can find it.

Bottom line is NOBODY knows what's going to happen. Why would they tell you they're going to increase value with no lop? They wouldn't. Just let whatever happens, happen.

It would help Iraq by bringing the trillions in circulation to billions. Articles even say so. The articles say that they will bring the IQD to 1 and 1 with the USD but only after they redenominate.

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Aqua dude...

I will try and address your questions. We all do not know with any certainty if it will lop or not. It is an option as there are many options of potential outcomes. Don't be foolish to assume that "everyone knows it won't lop".

So, would the following countries be considered Democratic countries that have Lopped?

Belarus, Bulgaria, Poland, Turkey, Russia, Argentina, Brazil, Israel, and Romania? I left off Germany because they lopped in 1923 and I wouldn't consider them Democratic. They all lopped with the help of the IMF because their currency had gotten out of hand. Many in the trillions and even some in the quadrillions. You would need a degree in astrophysics in some of those countries just to purchase something. Now a lop doesn't just work automatically.

You have to have certain prerequisites in place first.

1. The inflationary trend must prove to be low and stable. It does not mean they are in hyper-inflation to lop, but after a balance has been created and with proven stability for some time. Re-denominating during hyperinflation is useless and expensive. It would simply be a cosmetic fix because the problem will persist.

2. The government and the economy must be stable and the GDP growing and prosperous. You must have stability in the market which Iraq somewhat has. The future certainly looks bright and security has been improved. Banking, education, infrastructure, ISX, employment, opportunity are all doing better. Clearly much is still needed and many important laws are still in need of passing. In particular HCL and modifying the Investment Law to provide Iraqis with similar incentives to what they are providing to outside investors. Corruption is a gigantic problem and will be addressed in the Investment Law amendment as well as through other bills. GOI Minister appointments must conclude and infrastructure, privatization of industry, technology in banking must continue, Kuwait needs to be addressed more than the 5% in the DFI, and oil metering must be completed. So the when or if they re-denominate is based on many factors.

On your media question: Do you mean Jamal Watermelon isn't the Iraqi Tom Brokaw? Of course they all have their agenda. I don't dispute that. But... By chance have you read the hundreds of 3 zero articles that come out through the years addressing this subject. I would contend that it has more to do with the lens you chose to read the article through versus the corruption of the article itself.

On your large US Bill compared to Iraq question:

Did you know that they made a $500, $1000, $5,000, $10,000, and even a $100,000 note in the US? Although they are still technically legal tender in the United States, high-denomination bills were last printed in 1945 and officially discontinued on July 14, 1969. The Federal Reserve began taking high-denomination bills out of circulation in 1969. For the most part, these bills were used by banks and the Federal Government for large financial transactions. This was especially true for gold certificates from 1865 to 1934. However, the introduction of the electronic money system has made large-scale cash transactions obsolete. I hope this answers your questions.

What else ya got?

Interesting points you bring up, but a few things I want to ask or address. When you compare other democratic countries that eventually redenominated for their own reasons, how many of them had their value drop overnight due to sanctions placed on them? We all tend to forget a wild-card in the GOI/CBI scenario that seems to be overlooked.... A lot of wealth was lost overnight upon having the sanctions placed against them during the old regime & 1990 invasion. Would it only be fair to bring that wealth back in the near opposite way it was lost? Also, were they ever in a moment of hyper-inflation when the New IQD was introduced? I actually am curious if you know, because I don't. And, when the U.S. helped pay for & distribute the new IQD into their economy, did they fore-see that they would have to redenominate and printed bills with 000s?

Or was it possibly that their intention was to have big bills mostly to eventually be used in the bigger companies due exchange business because electronic banking was maybe years down the road (Just how you stated how it was used in the U.S.)

Therefore, I am going to create a scenario and I am curious on how you would feel.

Your a farmer who makes roughly 50,000 a year. Suddenly, the governments currency is worthless to the rest of the world driving up prices of goods & services. basically your 50,000 a year you make feels more like $50 a year. You struggle & learn to cope and live within your own means. You government makes some changes, and introduces a new currency... Your excited as you find out your $50k gets yous per say $1,000,000 new value dollars, however, the price of goods increase and your new $1,000,000 feels like your old $50,000 which is basically equivilant to what $50 used to buy you before the dollar collapse. Now, you hear about how the Govt has become stable and they're going to remove the 000s, and your once again going to have to exchange currencies. Only to find out that you have no increase in buying power. You question yourself, when will you ever be reimbursed for the value lost in that $50,000 holindgs you once had that is no longer truly worth $50,000..... Yes, for the most part the economy stabilized, but wealth wa lost in one swift move by the global powers. Wouldn't you push & demand to gain that wealth back??

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It would help Iraq by bringing the trillions in circulation to billions. Articles even say so. The articles say that they will bring the IQD to 1 and 1 with the USD but only after they redenominate.

Ok. Cool. Thanks. Now explain to me why that matters. So what if they have trillions in circulation vs billions? It didnt help buying power, so why should anyone care?? All it did was take 3 numbers away that really werent being used. Prices adjust with the removal of the zeros... but for what? Your 10,000 dinar salary that will buy you a cookie for 1,000 dinar is now a 10 dinar salary that will buy you a cookie for 1 dinar. Explain to me why I should care...

Therefore, I am going to create a scenario and I am curious on how you would feel. Your a farmer who makes roughly 50,000 a year. Suddenly, the governments currency is worthless to the rest of the world driving up prices of goods & services. basically your 50,000 a year you make feels more like $50 a year. You struggle & learn to cope and live within your own means. You government makes some changes, and introduces a new currency... Your excited as you find out your $50k gets yous per say $1,000,000 new value dollars, however, the price of goods increase and your new $1,000,000 feels like your old $50,000 which is basically equivilant to what $50 used to buy you before the dollar collapse. Now, you hear about how the Govt has become stable and they're going to remove the 000s, and your once again going to have to exchange currencies. Only to find out that you have no increase in buying power. You question yourself, when will you ever be reimbursed for the value lost in that $50,000 holindgs you once had that is no longer truly worth $50,000..... Yes, for the most part the economy stabilized, but wealth wa lost in one swift move by the global powers. Wouldn't you push & demand to gain that wealth back??

EXACTLY! Wealth was lost 20 years ago. Didnt matter if you have 1000 dinar ($3200) or 1,000,000 dinar ($3,200,000)... it became near worthless. Let's pretend it went directly to 1170:$1... your poor man now has about $0.86 and your rich man now has $854.70. Does it really matter which person you are? You might be able to pay for one months rent/mortgage if you were the wealthy man... but then you're flat broke. If you were the poor man, you're still poor. So with this example, it's clear that "wealth" was taken away. $3,200,000 will get you far in life, but $854.70 will not. VALUE disappeared! But now that they're in the mist of revaluing their currency once again to HAVE value, everyone is a naysayer. That same man with 1000 dinar (assuming he spent NONE of it over the years and converted it to the new currencies as they came out for a 1:1)... now will have 1 dinar, which will be worth the same as 1000 old dinar... which will be worth the same as $0.86 USD. That same man with 1,000,000 dinar (assuming he spent NONE of it over the years and converted it to the new currencies as they came out for a 1:1)... now will have 1,000 dinar, which will be worth the same as 1,000,000 old dinar... which will be worth the same as $854.70 USD. Do you see where I'm going here? At what point will the "wealth" be given back (the same "wealth" that was once there, but was taken away)?

Edited by AudiS4
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Drox may also be over looking something. The lost in translation factor. Remember that the Arabic language has only about 1500 (might be 15,000) words and English has over 2.5 million (or someother huge number). perhaps Revaluation does not exist in Arabic and it comes out as re-evaluate and/or re-institute? I see nothing but good in this artcle. The shopkeepers have been whining for a long time about a change in money process as they have been hoarding dollars and large note Dinars and that is about to end. They will have to step up to the future and are naturally apprehensive. Can't really blame them as the GOI trust factor there is so low. Food for thought.

You know I read this as I was running out and thought, the exact samething you just said here. Let's hope for sure.

i had this translated in arabic to english,by my dubai buddy. what they are saying is its time to revalue there currency to get on par with goods and services, and the only way this would be a sucess is for the rate to be around $1.00. it also seems that they have a sense of urgency on doing this as well. i know i dont come on this site anymore, but it was painful watching people getting the meaning of this article wrong......

Thank you Sonny1 and I know I miss seeing you here.

Linny

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Ok. Cool. Thanks. Now explain to me why that matters. So what if they have trillions in circulation vs billions? It didnt help buying power, so why should anyone care?? All it did was take 3 numbers away that really werent being used. Prices adjust with the removal of the zeros... but for what? Your 10,000 dinar salary that will buy you a cookie for 1,000 dinar is now a 10 dinar salary that will buy you a cookie for 1 dinar. Explain to me why I should care...

EXACTLY! Wealth was lost 20 years ago. Didnt matter if you have 1000 dinar ($3200) or 1,000,000 dinar ($3,200,000)... it became near worthless. Let's pretend it went directly to 1170:$1... your poor man now has about $0.86 and your rich man now has $854.70. Does it really matter which person you are? You might be able to pay for one months rent/mortgage if you were the wealthy man... but then you're flat broke. If you were the poor man, you're still poor. So with this example, it's clear that "wealth" was taken away. $3,200,000 will get you far in life, but $854.70 will not. VALUE disappeared! But now that they're in the mist of revaluing their currency once again to HAVE value, everyone is a naysayer. That same man with 1000 dinar (assuming he spent NONE of it over the years and converted it to the new currencies as they came out for a 1:1)... now will have 1 dinar, which will be worth the same as 1000 old dinar... which will be worth the same as $0.86 USD. That same man with 1,000,000 dinar (assuming he spent NONE of it over the years and converted it to the new currencies as they came out for a 1:1)... now will have 1,000 dinar, which will be worth the same as 1,000,000 old dinar... which will be worth the same as $854.70 USD. Do you see where I'm going here? At what point will the "wealth" be given back (the same "wealth" that was once there, but was taken away)?

For your fist point.

I doubt Iraq feels the same way. They will be the ones tens of trillions in the hole if they RV without a redenomination. There are a lot of theories out there that fractional banking will take care of it or 80% has been "pulled" out of circulation. Who really knows. In my opinion they must redenominate to bring that trillions in circulation down to billions. It seems like a common sense move for them. After that step has been taken the IQD is free to skyrocket. These articles are saying just that. In my opinion.

And your second.

I think it is easy for us to see the wrongs that have been perpatrated in the past on the Iraqi people and just assume that the GOI will make them rich overnight. Unfortunately I don't see this to be the case. Hope I am wrong. Again, all just my opinion.

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you are retarded, you don't know what you are talking about

iraqi was using/is using US money....so there is no...what used to be bought with 1000 dinar will be bought with 1 dinar.......educated yerself before u blab

Drox is actually one of the better educated people on this site. I put a lot of stock in what he says. Maybe you should do a little research yourself instead of throwing insults around.

Peace

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i had this translated in arabic to english,by my dubai buddy. what they are saying is its time to revalue there currency to get on par with goods and services, and the only way this would be a sucess is for the rate to be around $1.00. it also seems that they have a sense of urgency on doing this as well. i know i dont come on this site anymore, but it was painful watching people getting the meaning of this article wrong......

Thanks, Sonny1!!

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i had this translated in arabic to english,by my dubai buddy. what they are saying is its time to revalue there currency to get on par with goods and services, and the only way this would be a sucess is for the rate to be around $1.00. it also seems that they have a sense of urgency on doing this as well. i know i dont come on this site anymore, but it was painful watching people getting the meaning of this article wrong......

Really good to see ya pop in, hope all is good with u and urs.Also thanks for the input,always appreciated......................................................GO RV 2011 and soon BABY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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For your fist point.

I doubt Iraq feels the same way. They will be the ones tens of trillions in the hole if they RV without a redenomination. There are a lot of theories out there that fractional banking will take care of it or 80% has been "pulled" out of circulation. Who really knows. In my opinion they must redenominate to bring that trillions in circulation down to billions. It seems like a common sense move for them. After that step has been taken the IQD is free to skyrocket. These articles are saying just that. In my opinion.

And your second.

I think it is easy for us to see the wrongs that have been perpatrated in the past on the Iraqi people and just assume that the GOI will make them rich overnight. Unfortunately I don't see this to be the case. Hope I am wrong. Again, all just my opinion.

You still beat around my question... Why should I care if they have billions instead of trillions? What does that do for anyone? Why not millions instead of trillions? Why not quadrillions instead of trillions? PURCHASING POWER DID NOT CHANGE!

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Response to Darin... thanks for your questions in bold.

Interesting points you bring up, but a few things I want to ask or address. When you compare other democratic countries that eventually redenominated for their own reasons, how many of them had their value drop overnight due to sanctions placed on them? I am not sure it really matters. In the end it was all a part of hyperinflation.We all tend to forget a wild-card in the GOI/CBI scenario that seems to be overlooked.... A lot of wealth was lost overnight upon having the sanctions placed against them during the old regime & 1990 invasion. Would it only be fair to bring that wealth back in the near opposite way it was lost? Fair’s got nothing to do with it. It was a war torn era with a crazy dictator in charge. He built palaces and bombs versus business and infrastructure. Also, were they ever in a moment of hyper-inflation when the New IQD was introduced? Of course… nothing was stable at that time. But for the first time in a long time they actually knew what the M1 and M2 actually was. So they could create policy from those numbers and monitor it. I actually am curious if you know, because I don't. And, when the U.S. helped pay for & distribute the new IQD into their economy, did they fore-see that they would have to redenominate and printed bills with 000s? I am not sure what the actual money supply was back then to be honest. I think they realized or thought that anything could happen but that this was hopefully a one time thing. They made 6 denominations but it was referenced it could become 8 and some coins as the currency progressed. That doesn’t sound like a future LOP scenario to me. More of an expected change to accommodate future inflation or simple daily commerce exchange.

Or was it possibly that their intention was to have big bills mostly to eventually be used in the bigger companies due exchange business because electronic banking was maybe years down the road (Just how you stated how it was used in the U.S.) I think it was meant for everyday citizens. They basically exchanged 10,000 notes for $5 bills when you think about it.

I think for your farmer's example of his net worth going from $50,000 a year to $50 overnight and why can't the inverse be true. You would have to understand that the Dinar value drop didn't happen overnight it was a decades long process. This was not from the war or the sanctions necessarily although that was a big part. It was from Saddam. Saddam ran the Central Bank. He printed money to pay for everything and unfortunately Iraq owned 90% of the banks at the time. Saddam chose to build palaces and bombs in lieu of businesses and infrastructure. His printing money led to extremely high inflation and it undermined the confidence in the economy. In 1986 or so, the Dinar was valued between $.33-$1.34 as more of a "Saddam value" but the inflation was upwards of 50% so who knows what the true value was. Iran/Iraq war took its toll and then of course his brilliant Kuwaiti invasion led to the Persian Gulf War and all that followed.

The US led Dinar currency exchange occurred in 2003. There were 2 currencies at the time the Saddam Dinars and the Swiss Dinar in existence. They were of different denominations as well. The Swiss Dinar were worth about 150 to 1 Saddam Dinar. When they exchanged the new Dinar in existence today they exchanged for the 1 new Dinar for 1 Saddam Dinar. The rate at that time was around 2000 Dinar to $1 US. The CBI has since enhanced the value to 1170 as you know. So the Farmer in your scenario won't necessarily get it all back. In fact, he can't even remember what those days were like. WE are just hoping he gets it all back. The rate will undoubtedly go up we just want it to go up without the LOP ever occurring. Not sure if that answers your question or not.

Edited by drox
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It sure would help if we knew the news articles were factual. It makes it tough when all we know is what Iraq wants/allows us to know. Going by the honor system with a country from the middle east probably wont end well. It's like a man in a suit saying "Trust me".

But heck, nothin else goin on. All we can do is wait and speculate. GO RV!!!!!!!

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The lop of the zeros will 100% happen and before any revalue...If the currency went to $1.00 = $1.00US that would equal aprox 27 trillion in circulation LOL LOL LOL come on people there is no possible way.

THE ENTIRE GLOBAL YEARLY TRADE TOTALS ABOUT THAT NUMBER!!

The foreign assets also determine exchange rate...they have 50billion read the CBI asset totals. NOT 50 TRILLION

They will lop and bring the exchange rate to .85 and we will all have 23 bucks for our 25k banknotes

Then they will revalue after a period the people of Iraq lose nothing and makes there economy and business run smoother.

THE IMF STATED THAT THEY HAD TO MEET 3 REQUIREMENTS BEFORE BEING CONSIDERED FOR THE GLOBAL EXCHANGE AND NOT BEFORE!

1) REMOVE THE 3 ZEROS (IN PROCESS)

2) BECOME SOLVENT (DONE)

3) HAVE ELECTRONIC TRANSACTION ABILITY (DONE)

WE WILL NOT BE GETTING RICH ON THIS TRANSACTION SORRY PEEPS

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i had this translated in arabic to english,by my dubai buddy. what they are saying is its time to revalue there currency to get on par with goods and services, and the only way this would be a sucess is for the rate to be around $1.00. it also seems that they have a sense of urgency on doing this as well. i know i dont come on this site anymore, but it was painful watching people getting the meaning of this article wrong......

This is the best news I've heard all day :twothumbs: Let's hope we see some positive movement soon.

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The lop of the zeros will 100% happen and before any revalue...If the currency went to $1.00 = $1.00US that would equal aprox 27 trillion in circulation LOL LOL LOL come on people there is no possible way.

THE ENTIRE GLOBAL YEARLY TRADE TOTALS ABOUT THAT NUMBER!!

The foreign assets also determine exchange rate...they have 50billion read the CBI asset totals. NOT 50 TRILLION

They will lop and bring the exchange rate to .85 and we will all have 23 bucks for our 25k banknotes

Then they will revalue after a period the people of Iraq lose nothing and makes there economy and business run smoother.

THE IMF STATED THAT THEY HAD TO MEET 3 REQUIREMENTS BEFORE BEING CONSIDERED FOR THE GLOBAL EXCHANGE AND NOT BEFORE!

1) REMOVE THE 3 ZEROS (IN PROCESS)

2) BECOME SOLVENT (DONE)

3) HAVE ELECTRONIC TRANSACTION ABILITY (DONE)

WE WILL NOT BE GETTING RICH ON THIS TRANSACTION SORRY PEEPS

For just joining yesterday, you are sure full of knowledge. thanks for your wisdom, or is maybe you were banned under another username, and are now trying to be an idiot? i think the latter

Edited by dinarlady
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The lop of the zeros will 100% happen and before any revalue...If the currency went to $1.00 = $1.00US that would equal aprox 27 trillion in circulation LOL LOL LOL come on people there is no possible way.

THE ENTIRE GLOBAL YEARLY TRADE TOTALS ABOUT THAT NUMBER!!

The foreign assets also determine exchange rate...they have 50billion read the CBI asset totals. NOT 50 TRILLION

They will lop and bring the exchange rate to .85 and we will all have 23 bucks for our 25k banknotes

Then they will revalue after a period the people of Iraq lose nothing and makes there economy and business run smoother.

THE IMF STATED THAT THEY HAD TO MEET 3 REQUIREMENTS BEFORE BEING CONSIDERED FOR THE GLOBAL EXCHANGE AND NOT BEFORE!

1) REMOVE THE 3 ZEROS (IN PROCESS)

2) BECOME SOLVENT (DONE)

3) HAVE ELECTRONIC TRANSACTION ABILITY (DONE)

WE WILL NOT BE GETTING RICH ON THIS TRANSACTION SORRY PEEPS

You do know you are a moron don't you? Anyone who refers to other people as peeps is indeed a moron. You do realize the bulk of that currency is in iraq don't you? Just use your imagination on how they can solve this trillion dollar problem. In country. But you more than likely will not be able to figure it out. And do you want to tell me how much currency has been removed from circulation? Nope you sure can't. Nobody on here can. The people sure the hell don't have it. Where do you think it is? That's all the clues you shall receive. Cheers M.

P.S. Say hello to Keep for me

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from what I understand, Iraq has many Countries vested in their dinar. As a Country on its way to becoming one of the richest in the World, it would not be in their best interest to LOP the dinar and anger their "larger investors". However, saying that, if there is a possibility of a LOP, what is to stop the majority of the investors trading in their "thousand dollar notes" for smaller ones? That would definitely not be to Iraq's advantage, and probably put them in a financial hardship. There can't possibly be enough small denoms to cover the larger ones if that happens...any thoughts?

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Why would they tell us this. Not saying its not good or anything but just seems suspect.

its in arabic they r not exactly telling us less you speak arabic?????greatest news ive heard so far go rv i dare you

You do know you are a moron don't you? Anyone who refers to other people as peeps is indeed a moron. You do realize the bulk of that currency is in iraq don't you? Just use your imagination on how they can solve this trillion dollar problem. In country. But you more than likely will not be able to figure it out. And do you want to tell me how much currency has been removed from circulation? Nope you sure can't. Nobody on here can. The people sure the hell don't have it. Where do you think it is? That's all the clues you shall receive. Cheers M.

P.S. Say hello to Keep for me

dosent matter the us is buyin our dinar trading for petro bucks iregardless of how much is in ???correct me if im wrong without calling people morons please

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