***Dinar Evening Updates***

[easyrider]

This post was found by "Janelle" a Great Jedi Warrior

I have always been lucky in business to have surrounded myself with bright individuals. My new associate Bill Liotiris is an example of another already proving to be helpful. Bill found this article somewhere on the internet. I was completely unaware of its existence.

Interesting reading by one of the original State Department economists employed to come up with a plan. If this is confusing to anyone, don't worry or be concerned .. In summary, he has the same forecast that we have, only this comes with a detailed or microeconomic explanation showing this was all planned long ago. ( Pay special attention to the words 'in country' and that option. It is the core of my arguement and belief there will be no accomodation given for currency outside the country to make good delivery for the anticipated exchange.) With virtually all banks now completely out of the Dinar business and the largest of the dealers 'on vacation', there certainly has been no indication given by the CBI to the contrary. The following forecast for the Dinar is from one you would think might know.

In a 40+ year career as a Retirement Consultant I 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 (1) controlling the rate of inflation, (2) controlling the value of the IQD in a declining economic environment and (3) 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 Saddams 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.

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IRS Circular 230 requires that those enrolled to practice before the IRS should state when general information is given, that it "SHOULD NOT BE CONSIDERED PROFESSIONAL ADVICE". We strongly encourage all investors to consult with their own professional financial team.

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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.

© 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.

[Riverdawg]

I think I read this last year?????

Too bad...

rd

[Islandgirl7]

Thanks Easy...very interesting and positive...0.86 sounded good to me but boy oh boy 3.22 amazing!!! Thanks for the post...

[labdog]

Easy, I have been reading your posts for quite some time and you seem to get more anxious

now then ever. Most of what you are posting is confirmation of your beliefs. I would spend less time

dwelling on this and just relax. I am sure we will see something positive soon but who knows

when? Just hang on for the easy ride and if you come up with some real meat and potatoes

news I am sure we will be hearing from Adam first. Don't give in and enjoy the easy ride to RV

[RodandStaff]

Thanks Easy... good stuff!

[429]

Thanks, easy.

[TonyDownTheShore]

Now that was EASY to read.

Thanks for the post

[foghorn leghorn]

Thanks Easy....

[dinarck]

Seen it.

[jocko129]

This is old article

[speculatorsRIDE]

3 deals with lopping the currency in country and 4 deals with currency outside of the country. Does this mean that those that have accounts at Warka are looking at having their accounts lopped?

[Derek2011]

Damn, so that means that my 25,000 notes will be next to worthless? or is that in country only? He didn't really answer how they would handle the large notes out of country. Is it advisable to exchange the large notes for small notes at this point?

[easyrider]

Seen it.

and.....? many people havent sorry i couldnt please only YOU.

[powerpager]

Good Post !!!

[troutstream]

Am I reading this correctly that the three 0's will be lopped off, so a IQD 25,000 bill will be worth 25 IDQ or ( US$3.22 x 25 = $ 80.50)

So IQD$100,000 ( 100 after Lop) will be worth US$ 322.00

Any others reading this the same way?

[Derek2011]

Trout, it was said that was the case in country as far as i can tell. What was not answered was what would happen out of country.

[easyrider]

Am I reading this correctly that the three 0's will be lopped off, so a IQD 25,000 bill will be worth 25 IDQ or ( US$3.22 x 25 = $ 80.50)

So IQD$100,000 ( 100 after Lop) will be worth US$ 322.00

Any others reading this the same way?

yes there can be a LOP within the country now internationally outside can be a whole different story.

[Texas1]

Am I reading this correctly that the three 0's will be lopped off, so a IQD 25,000 bill will be worth 25 IDQ or ( US$3.22 x 25 = $ 80.50)

So IQD$100,000 ( 100 after Lop) will be worth US$ 322.00

Any others reading this the same way?

I read it as the lop was only in country. He "laughed" and said a lop is partially correct. Then said the "only" reason for it was for "in country" accounting.

[Buckeye Pilot]

They CANT LOP.

They WONT LOP.

Clear Enough.......

[easyrider]

They CANT LOP.

They WONT LOP.

Clear Enough.......

They can most def. LOP in country where their citzens wil mnot become millionaires now internationally it doesnt have to.

[DinarThug]

and.....? many people havent sorry i couldnt please only YOU.

Thx 4 the post Easy.

U can always bring back a Good Post on Deja VUesday !

[Buckeye Pilot]

They can most def. LOP in country where their citzens wil mnot become millionaires now internationally it doesnt have to.

I know a Great Brain surgeon here at Duke, I will schedule you a "LOP"OTOMY at his earliest appointment. No need for a pre-screen he has read 5 of your posts.

Kind regards,

The Anti-Lopper

[keepmwlknfny]

No offense to anyone but what he is talking about lopping only in country and not out of country is rubbish......if there is a RD, then ALL the currency is affected.....not just the ones inside the country of Iraq.....

[umbertino]

They CANT LOP.

They WONT LOP.

Clear Enough.......

You better be right on that one.

I know a Great Brain surgeon here at Duke, I will schedule you a "LOP"OTOMY at his earliest appointment. No need for a pre-screen he has read 5 of your posts.

Kind regards,

The Anti-Lopper

BP..Your point is well taken and I say IF ONLY........But the Reality is that we just can't know. Hoping it will be like you stated.

[Yabadabado]

I do enjoy reading rumors... it keeps my heart pumping at a running pace... less exercise needed in the heat and as a result... HMMMMM... my hemorrhoids need preparation "H"... just kidding... a little humor can and does make one smile...