The Flea and the Elephant

[billio0]

The Flea & the Elephant

For those of you who know anything about a flea, it is a tiny parasite that attaches itself to a much larger host, while both feeding itself from what the host has to offer, and procreating in vast numbers to reproduce itself. It also has an amazing ability to leap.

We as dinar investors are exactly like fleas that are attached to an elephant, which in this case are much larger investors, and more importantly, many countries large and small. While it is the elephant that must be fed, we as fleas feed off the elephant. The elephant doesn’t particularly like it, but since we are so small and insignificant, we are ignored.

In spite of what has developed into conventional wisdom on this and other dinar-based forums, our dinars are simply currency of a foreign country. As currency, it is designed as the medium of exchange for goods and services within that particular country. Likewise, since most countries prefer to conduct business with other countries, there is an agreement by which such transactions can take place whereby the currencies of each country are compared to each other, and a rate of exchange is established before any transactions between such countries can occur.

There is no difference in the dinars we hold in our possession, and those of the elephant (large investors & countries). As such, when there is talk of a LOP, or removing and/or raising the 3 zeros, such actions if implemented shall affect all currencies presently in circulation. This means that there is no possible way to distinguish between the dinars we hold, and those in the possession of the elephant. To attempt otherwise would be to defraud some at the expense of others. Remember, we hold valid currency purchased legally under the protection of US Presidential Executive Order 13303, which gave us the same identical rights as the citizens of the issuing country of that currency (Iraq). Why this was done I have no idea, and could care even less. But, it was done, and those of us who have acted upon it by purchasing (exchanging our currency for theirs) the dinar currency have become the beneficiaries of that one simple act.

Thus, if the issuing country now needs to change the assigned value of their currency to account for major changes in their standing among the nations of the world, or just to control inflation, that’s not our problem. Whatever that new value becomes, it affects all dinars in circulation, including ours and those of the elephant. I repeat; there is no possible way to separate ours from theirs. What affect the change in value has on ours, it has on theirs as well. Thus, if you are concerned that there is somehow a unique way for us to be excluded from the benefits of an upward change in value; please understand that that is not possible under any circumstances. If our large denominations are required to be retired from circulation, then we are entitled to exchange them for lower denominations, or to exchange them for the currencies of other countries, provided those other countries are willing to do so. If not, then we would be in a situation where we would have a legitimate claim against that country (Iraq) who issued us their currency that would then be virtually worthless. But, keep in mind, if ours would become worthless, so would that of the elephant. There is no way to sort ours out, and leave theirs intact.

If you have $1000 US Dollars in ten $100 USD notes, you may exchange them for one thousand $1 Dollar notes, or five hundred $2 Dollar notes, or two hundred $5 Dollar notes, or one hundred $10 Dollar notes. It matters not what denomination you choose as long as it is the currency now in circulation. We may not exchange it for one $1000 Federal Reserve note, since they are no longer in circulation. But, guess what; if you happen to have one of those $1000 notes, it is still worth $1000 US Dollars anywhere in the world that US Dollars are recognized and exchanged.

The point here is to hopefully put to rest this fear and loathing about us somehow losing out to a ploy by either the GOI/CBI and/or the US Government to cheat us out of what is rightfully ours. In my humble opinion, IT AIN’T NEVER GONNA HAPPEN!

For those who wish to disagree, I respect your right to do so, and welcome your rebuttal. But, I for one shall continue to rest assured that as a flea to this elephant, I am poised to have the most wonderful meal I have ever had in my entire life.

Thanks for reading!

Edited May 4, 2011 by billio0

[cocklebur]

Makes me scratch my head.

[learning all i can]

very good analogy and your comparison is most comprehensive. thankyou for your post

[magawatt]

The rumour that the 25K dinars would be called in early was making me jumpy. Thanks for the post.

[dog53]

You callin me a flea hmmm . You callin ME A FLEA ! YOU CALLIN ME A FLEA !!!!!!!!!!

GOOOO RV

[Texhad]

Fantastic analogy and analysis. Thanks for sharing your thouhgts.

Go RV!

Blessings,

Texhad

[Shabibilicious]

Good Post!....other than the Elephants having Fleas thing....that's just gross!

GO RV

[izzy tennis]

Excellent analogy! A+ + +

[Markinsa]

Good Post!....other than the Elephants having Fleas thing....that's just gross!

GO RV

Look on the bright side, at least he didn't use the Tick and The Elephant Analogy. With the Tick Gorging itself on the Elephant to the point it explodes....

-

[DinarMillionaire]

THAT'S "MR. FLEA" TO YOU! And don't you forget it! Good post.

[ROCKSCISSORSPAPER]

Nice post...now I need to get my flea collar on.

[DinarThug]

It seems that much of the recent hype about purchasing small denoms can be loosely traced to some people trying to sell them at steep mark-ups. Just ignore them.

They're out of their Flea-king Minds !

[Choppermike]

The analogy could have not been better articulated! It, above all else, put things in perspective. You are right. The elephant would stampede if the so-called "LOP" happened.

Great post!

[army03]

Well said A+

[Vinman33]

YES. Nice post.

A corollary to the elephant analogy is this: LOP one, LOP ALL! That's what I've been saying for MONTHS! If they LOP we citizens, then they LOP the U.S. Government, China, France, England, blah blah blah... AND EVERY OTHER COUNTRY WHO FORGAVE DEBT TO IRAQ, figures in the MULTI-BILLIONS.

Iraq would not survive the ire that these countries would bring to bear. As well. . . since the U.S. and a number of these countries have controlling interests in the IMF, the IMF wouldn't allow that to happen either.

As to the concept of "timeframe to turn in your large denoms," if they make we "fleas" do it. . . do they necessarily make all the other countries and their banks do it too? This analogy would surmise that those entities would have a limited time frame just like us. However. . . having said that. . . I believe that countries and governments that are bedfellows can find ways to pad themselves while screwing their citizens. I would have a hard time swallowing the notion that the CBI putting a timeframe on the large denoms would also include the U.S. Treasury and that of China and the other mega-players. We'll see.

Good post, thanks.

[DEAMAN]

All good and well until you consider that when a new currency is implemented (Redenomination), you will HAVE to exchange old currency for new. The value of your investment didn't change, but the currency did. Your old 25K dinar will be exchanged for a nice crisp 25 dinar new currency note, and they will be worth exactly the same. At some point, all old dinar notes will have to be phased out or become worthless.

Iraq will then shake most of us off like a bad case of fleas...

[quadraph0nic]

billi0 that was a nice explanation.

I have zero fear about any of the conditional scenarios that some people may worry about such in country rv or dual rates or ugh...rv for them lop for us, its illegal to have dinar outside of the country... LOL

If Iraq is genuine in wanting to be recognized again by the international community and be completely restored once again which we know is fact based on their actions then you shouldn't be worried. Reason being, those conditions some fear run completely contrary to what Iraq is trying to achieve.

I just feel like a country's currency is their honor and if they don't honor their currency for whatever reason by throwing down wacky conditions well in my opinion that would be suicide. The trust in them would be lost. Its that simple...

They need investors confidence to help develop a private sector especially now. To me this is very crucial for the development of this nation...

So if you are afraid of getting screwed this way...I'd have to say that's highly highly....well like billio0 says that's just not going to happen...

Dont take my word for it, research it yourself.

[harleyrider1]

+1 billio0. Well written and thought out. Thanks for the post.

[Jazzy]

Great post, thanks! I've thought along this line for the past 5 yrs while on this ride. Glad when it'll be over

[hoosier1470]

Great post...hopefully, this will stop...or at least slow down some of these crazy senarios we have been seeing ....we can only hope so anyway! + 1

[USN Chief]

Bravo Zulu, thanks!!

[dinarck]

I fail to see how many still believe that a RD would some how be this huge loss of money. The value remains the same. There is no loss. Iraq does not owe you 25,000 USD for your 25,000 IQD note. It would be great if that happened but come on people. I tire of hearing how Iraq has to pay out face value of their notes in USD. The fact is they dont. All these post that state that China,Us,corporations will not let a RD happen all fail to add facts to back up that statement. Fact is no one knows how much IQD these intities have. Has anyone stopped to think that maybe the US and China dont care about the currency? The oil is the real prize. Maybe not and the plan is real but until there is proof brought forward then it may as well be pumper induced theory.

[Choppermike]

Here's another analogy that might help those who are still scratching their head about the RV - Imagine that you are in a swimming pool and you have a beach ball. Most, if not all of us who have done this has attempted to hold the beach ball under water. Now how it relates to Iraq - The pressure that you are exerting on the ball to hold it under the water represents the DEBT that burdened Iraq. Now that Iraq has been forgiven that debt, hence the downward pressure on the ball is released, what happens to the ball? That's right. The ball doesn't just float to the top, it comes out of the water like a rocket. The ball in this analogy represents the fiscal health of Iraq. Which in other words, is its monetary system and all the components of it. This is why, I would suggest an RV that will shoot up rather quickly and then settle back to a more sustainable rate.

Fire away economists.

"Helping those who can't help themselves"

[summershah]

Good post make sense thnx. :)

[Bobbysac]

lets see what happens ,would be nice not to have to hurry and cash in ,be nice to cash a little at a time or as needed ,peace family