Is this our week? Synopsis with links

[dinarck]

Did you see the article a week or so ago that said that they were having shortages of dinar in certain areas of Iraq? I wonder why they would have shortages if they are not removing the 000 notes?

I would like for you to please type out that you actually believe that Iraq can remove the majority of thier money supply from circulation so that I will have actual proof that logic doesn't have any place in your arguments. Please explain how this is a possibility. Don't they already have a hard enough time with large amounts of currency? Now you think they will remove all the 000 bills so that they will have to carry 10 times more lower denoms to do business? I know it feels good to believe this nonsense but nonsense is all it is.

[aliciadogz]

AWESOME POST! THANKS! I SURE HOPE YOUR RIGHT.! GO RV!!!!!!!!!!!!!!!!!!!!!!!!

[skepticaldinar]

Did you see the article a week or so ago that said that they were having shortages of dinar in certain areas of Iraq? I wonder why they would have shortages if they are not removing the 000 notes?

Here's your answer...

Iraq has a cash driven society where banks are seldom viewed as places to store consumer wealth and communications between branches of even the same bank are often difficult to conduct and rely mostly on face-to-face meetings to update account balances rather than the use of automated networks. The flow of funds in Iraq’s economy in general is more often than not, one of funds flowing out from banks with very little recirculation as is experienced in other societies.

Why does this happen? It’s a result of “learned behavior” including consumer experiences dating back to the end of the first Iran-Iraq war. During this timeframe, the former dictator found the country nearly broke and faced with making millions in stipend payments to returning soldiers. To generate cash, he instructed all banks to stop making payments other than those needed to pay government workers. Most who stored their wealth in the banking system lost everything. Accordingly, the current distrust in the banking system will take time and consumer education to overcome.

The population of any type of currency in banks given the current security situation makes such movements risky to the extent that it is often difficult for Iraq’s own Ministries to keep current on payments to its own workforces. It’s not an uncommon event for the State owned banks to simply run out of cash to make payrolls, and then call for special Coalition assistance to arrange transports of cash to them.

[coldwarvet]

Enjoyed reading your post. Thanks!

[umbertino]

Quote

Makes me feel all tingly inside!

End Quote

Where exactly? C'mon, let's be clear around here..........

If it RVs at $3 USD, and if there are 27 trillion dinar in circulation, then where is $81 trillion USD going to come from if all dinar are exchanged?

I'd assume ( correct me if I'm wrong) that most of the money stays in-country. Foreign Investors hold a very little part.

[drummerboy]

BTW... Even thought I posted the original content because I found it really well thought out, I do have one question of my own.

Since when is MAY the end of the 2nd quarter as well as the end of the first half of the year. The last time I looked at the calendar, MAY is the 5th month of our year in which we have 12 months, so....... Do the math!

I'm just sayin'

Go RVVVVVV

[speculatorsRIDE]

I would like for you to please type out that you actually believe that Iraq can remove the majority of thier money supply from circulation so that I will have actual proof that logic doesn't have any place in your arguments. Please explain how this is a possibility. Don't they already have a hard enough time with large amounts of currency? Now you think they will remove all the 000 bills so that they will have to carry 10 times more lower denoms to do business? I know it feels good to believe this nonsense but nonsense is all it is.

The United States currently has a population of over 308,000,000 people and as of April of this year we have reached 1 trillion bills in circulation. The US Dollar is also used as the world currency.

Iraq has a population of 33,000,000 people and 27 trillion bills in circulation.

It is my belief that they can in fact remove and have removed the majority of their money supply from circulation.

Now you have actual proof of my logic in print.

My arguments will continue.

Edited May 27, 2011 by speculatorsRIDE

[speculatorsRIDE]

Here's your answer...

Iraq has a cash driven society where banks are seldom viewed as places to store consumer wealth and communications between branches of even the same bank are often difficult to conduct and rely mostly on face-to-face meetings to update account balances rather than the use of automated networks. The flow of funds in Iraq’s economy in general is more often than not, one of funds flowing out from banks with very little recirculation as is experienced in other societies.

Why does this happen? It’s a result of “learned behavior” including consumer experiences dating back to the end of the first Iran-Iraq war. During this timeframe, the former dictator found the country nearly broke and faced with making millions in stipend payments to returning soldiers. To generate cash, he instructed all banks to stop making payments other than those needed to pay government workers. Most who stored their wealth in the banking system lost everything. Accordingly, the current distrust in the banking system will take time and consumer education to overcome.

The population of any type of currency in banks given the current security situation makes such movements risky to the extent that it is often difficult for Iraq’s own Ministries to keep current on payments to its own workforces. It’s not an uncommon event for the State owned banks to simply run out of cash to make payrolls, and then call for special Coalition assistance to arrange transports of cash to them.

That could be one answer and this may be another.

(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.

Read more:

[dinarck]

The United States currently has a population of over 308,000,000 people and as of April of this year we have reached 1 trillion bills in circulation. The US Dollar is also used as the world currency.

Iraq has a population of 33,000,000 people and 27 trillion bills in circulation.

It is my belief that they can in fact remove and have removed the majority of their money supply from circulation.

Now you have actual proof of my logic in print.

My arguments will continue.

You do realize that Iraqs currency is worth 1000 times less that ours don't you? Why do you think there is 27 trillion dinar in circulation. The answer. Because they need that much to do buisiness. Sure there is 30 million Iraqis but when a soda cost 1000 dinar then you better have tens of trillions in circulation or there will be a huge money shortage in your country. Sorry but your argument holds no water.

That could be one answer and this may be another.

(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.

Read more:

Really? Again? Please come with something other than made up pumper theory. I have seen this a million times from people desperate to prove that a RV is imminet. Problem is,it is proof of nothing.

[phunkneebone]

"It is technically the end of 1/2 of 2011"............thought that would be June 30. Did the calendar change and I missed it?

[Roadrunner]

Great post Drummer. I can't say I agree with everythig you said, but it is well thought out and certainly as good as anyone else' opinion. Plus 1 for the time and effort.

Roadrunner

[Double Naught Spy]

Great post Drummer. I can't say I agree with everythig you said, but it is well thought out and certainly as good as anyone else' opinion. Plus 1 for the time and effort.

Roadrunner

I can't for the life of me figure out why someone would give you a negative post based on what you said so I've added a +1 to balance things out.

[sandfly]

i hope u r right thanks for ur info

[HawaiianGal]

I've read in a couple different news articles that only 15 - 20 percent of the Iraqi population has bank accounts. That means they are doing everything with USD or ID. We can get away with as little currency as we have because most of our banking is done electronically. Debit cards, automatic payments online, paypal, credit cards, and checks are all popular here. They don't have most of those options.

Yes, I wish I could give you numbers. I don't know how much US currency is circulating in Iraq. I don't know what percentage of that is used for day to day things. I don't know what percentage of their money is handled in a form other than cold hard cash. I do have a feeling that it isn't as simple as we would like to believe it is.

[The Machine]

Well written statement, I like where your going with this .... I was so excited by the end I could hardly finish it lol.

only one thing I seen wrong with, this statment below,

"1. If they were to RV, let’s say, Friday Night (our time) / Saturday Morning (their time).

2. What does that accomplish? The ONLY world-wide banks that are open are Middles Eastern Banks (such as Iraq) that means that they get to “cash in” first."

Most banks in the UK are open on a Saturday and some on a Sunday too and were only 2 hours behind iraqi time, It doesnt have any effect on your point just thought I'd let you know.

Lets hope this is our weekend +100 if i could

Edited May 27, 2011 by The Machine

[upnorth]

I'm thinking that the end of the 2nd quarter for this year is June 30, 2011 and it is also the end of the first half of 2011. Unless of course you are using that "New" math that they have been teaching our kids, that nobody but a teacher understands, then you could be right and May 31st could be the "New" end of the 2nd quarter and the 1st half of 2011.... Just Thinking That...

P.S.(May 31st is still technically the last day of May, which is next Tuesday.)

I agree, there are a few "facts" in this post that don't add up.

[hoosier1470]

There is so much negativity on this site! Its almost as if people dont want this to happen. I for one believe that we are in a very good position for this to take place at anytime! Maybe every statement in this post was not exact, but more of it was than wasnt! Shabbi himself did say that he wanted a three day holiday to do this! Also, look at where we are in reguards to time! Iraq doesnt have the luxury of time....its running out fast, just like their economic status! Its still early in the weekend...here....and there, so who is to say that we wont see this anytime? If indeed Shabbi wants a holiday, then he only has one more chance before June 30...thats their "Republic Day"...so, if we dont see it this weekend, then we have a new....and very close date to look forward to! Personally, I do look for it this weekend! As to exactly when....only they know! Maybe I look at this differently than most, I try to look at all the reasons it will take place......Instead of all the reasons it wont! God Bless each of you!

[munster]

Does anyone actually know when & where Shabs said that he would RV over a weekend? The guy doesn't say much...

[hoosier1470]

Does anyone actually know when & where Shabs said that he would RV over a weekend? The guy doesn't say much...

I believe it was in a statement he made back in april...he said that he needed a holiday and three days to do this...basically, a three day weekend. I think the reasoning this poster suggests for this makes alot of sense! Since this system is new...this would take alot of pressure off of them, just incase things didnt go as planned....this would give them some room for correction!