The morning after

[dinarck]

During a discussion on another thread a thought occured to me that I can't believe I haven't wondered about before and that would be the morning after a RV and how would buisiness in Iraq could be conducted without lower denoms. What I mean is if it RVed tomorrow at 1:1 then the lowest bill in circulation would suddenly be worth 50 USD overnight. How would Iraqis do buisiness the morning after with their lowest bill worth that amount? It almost seems to me that they would have to either introduce or have at the ready new lower denoms for the next day. Wanted to go ahead and start another post to get everyones thoughts on this. Maybe there is something I am missing and I will feel really stupid if it is something simple. Haha. Anyway thanks to all for your input.

Edited May 31, 2011 by dinarck

[Buckeye Pilot]

Ask Keepmstmble He knows ^everything I heard..........

[Goeers]

We/They are gonna love it when this plan comes together!!!!!

[dinarck]

Ask Keepmstmble He knows ^everything I heard..........

UUUMMM..... Thanks for the noninput.

[deenar]

The USD is still used in Iraq(despite what you hear on dinar sites). Change could be given in USD until the lower denoms are in full circulation.

[Jim1cor13]

Hi dinarck

Thank you for your thoughts on this. I tend to agree, we often

overlook or do not care about what will happen in Iraq, but we

should understand what may not happen. For most Iraqi's, I would

imagine it would be total confusion without them being able to exchange

current notes for smaller denoms/new notes. Then a potential 1:1 would

now tell them their new 25 note for instance, is now valued to 25$, etc.

I can see where it appears there almost has to be an exchange for new smaller

notes *if* it is an RD then a revaluation of the exchange rate. We all want a straight

revaluation...but I fear it cannot at this time be that simple.

Indeed, we may be missing something! That is never out of the question sharing

thoughts and ideas about this speculation, but I think we understand enough to try and placce

some of the pieces of this puzzle together. It is always possible we may all "understand" far less than

we think we do, but what you and Keep have recently discussed about lower denoms, I tend

to agree with you, and along with you, I am hoping that we will ultimately see a clean revaluation. But history

reveals another story that none if us want to see in regards to countries who have revalued their currencies

after periods of high inflation, which is a result of the loss of purchasing power of their currency, and they

redenominate.

I know this much...Iraq will do what is best for Iraq...and they are not considering "us" for one moment

in my opinion.

Thanks my friend for your ideas and your efforts, just adding a few of mine to the mix.

All my best!

Jim

---

[FatMan]

Good Point. But another "Rumor" I read on here... "RUMOR" Was that they are holding, But not Yet letting out, Smaller bills (1's 5's 10's 20's)... I could see both sides.

Good point though. Thanks for the thought

Krem

[Buckeye Pilot]

{noninput.}

I like That.!

Edited May 31, 2011 by Buckeye Pilot

[Dinarius Rucker]

During a discussion on another thread a thought occured to me that I can't believe I haven't wondered about before and that would be the morning after a RV and how would buisiness in Iraq could be conducted without lower denoms. What I mean is if it RVed tomorrow at 1:1 then the lowest bill in circulation would suddenly be worth 50 USD overnight. How would Iraqis do buisiness the morning after with their lowest bill worth that amount? It almost seems to me that they would have to either introduce or have at the ready new lower denoms for the next day. Wanted to go ahead and start another post to get everyones thoughts on this. Maybe there is something I am missing and I will feel really stupid if it is something simple. Haha. Anyway thanks to all for your input.

Last week, someone made a great, common sense point. I wish I could remember who it was, so credit could be given.

Anyway, he said that it makes sense that the RV would occur during the Iraqi weekend, so that they could re-group/organize

for business after the RV. I know the alleged pumpers are accused of promoting weekends for the purpose of dipping

into others' paychecks, but maybe the Friday-Saturday thing really is logical....

[mrref]

During a discussion on another thread a thought occured to me that I can't believe I haven't wondered about before and that would be the morning after a RV and how would buisiness in Iraq could be conducted without lower denoms. What I mean is if it RVed tomorrow at 1:1 then the lowest bill in circulation would suddenly be worth 50 USD overnight. How would Iraqis do buisiness the morning after with their lowest bill worth that amount? It almost seems to me that they would have to either introduce or have at the ready new lower denoms for the next day. Wanted to go ahead and start another post to get everyones thoughts on this. Maybe there is something I am missing and I will feel really stupid if it is something simple. Haha. Anyway thanks to all for your input.

THIS HAS BEEN DISGUSSED MANY TIMES BEFORE, THE IRAQI GOVERNMENT, CBI, AND WHOEVER ELSE IS INVOLVED WITH THE RV WILL HAVE TO TRAINED THEIR COUNTRY ON THE NEW CURRENCY, ITS AS SIMPLE AS THAT........... THERE WILL BE NO RV NOR WILL THERE BE ANY RELEASING OF THE NEW CURRENCY, NOT UNTIL THESE PEOPLE ARE TRAINED.. :lol:

Edited May 31, 2011 by mrref

[dinarck]

Thanks everyone for sharing. Seems like they would need to have lower denoms ready at all locations and all markets ready for the next day but maybe USD could be used until the transition happens.

[The Jonald]

well, not that it matters, but i have always said that would be one of the major signs to happen before the re-value is lower denoms hitting the streets. i still believe this has to happen before the rv. It makes sense..

[Candinar]

Thanks everyone for sharing. Seems like they would need to have lower denoms ready at all locations and all markets ready for the next day but maybe USD could be used until the transition happens.

I remember someone in here saying that they use USD for most small purchases, maybe someone in Iraq could back this up. But I would think they have educated their citizens somewhat. Let's hope.

[Markinsa]

The may already have the small denominations ready, they could use US Dollars, or they could use the SMART Cards. With the SMART Cards you don't need currency.

[DAME1]

Hi dinarck

Thank you for your thoughts on this. I tend to agree, we often

overlook or do not care about what will happen in Iraq, but we

should understand what may not happen. For most Iraqi's, I would

imagine it would be total confusion without them being able to exchange

current notes for smaller denoms/new notes. Then a potential 1:1 would

now tell them their new 25 note for instance, is now valued to 25$, etc.

I can see where it appears there almost has to be an exchange for new smaller

notes *if* it is an RD then a revaluation of the exchange rate. We all want a straight

revaluation...but I fear it cannot at this time be that simple.

Indeed, we may be missing something! That is never out of the question sharing

thoughts and ideas about this speculation, but I think we understand enough to try and placce

some of the pieces of this puzzle together. It is always possible we may all "understand" far less than

we think we do, but what you and Keep have recently discussed about lower denoms, I tend

to agree with you, and along with you, I am hoping that we will ultimately see a clean revaluation. But history

reveals another story that none if us want to see in regards to countries who have revalued their currencies

after periods of high inflation, which is a result of the loss of purchasing power of their currency, and they

redenominate.

I know this much...Iraq will do what is best for Iraq...and they are not considering "us" for one moment

in my opinion.

Thanks my friend for your ideas and your efforts, just adding a few of mine to the mix.

All my best!

Jim

---

Hi Jim

I'm going to respectfully disagree.

I'm not sure who is in this equation, but I don't believe we would have gone into Iraq other than to benefit the powers that be. Iraq just happens to be a means to something others need to accomplish...

Perhaps a puppet government as many of the Arab nations now seem to be.

I believe we will get an rv when.... who ever they are......say so not necessarily Iraq.

Dame

Jim

Not sure how I got in your article?!!

Reflecting what I thought..

Dame

[dinarck]

well, not that it matters, but i have always said that would be one of the major signs to happen before the re-value is lower denoms hitting the streets. i still believe this has to happen before the rv. It makes sense..

Seems like they would have to introduce them before RV but they would have to suspend all IQD sales first. This is exactly the point Keepem made in his post. If we see this happen the we are rich.

[Jim1cor13]

Quote: SLUM DAME

"Hi Jim

I'm going to respectfully disagree.

I'm not sure who is in this equation, but I don't believe we would have gone into Iraq other than

to benefit the powers that be. Iraq just happens to be a means to something others need to accomplish...

Perhaps a puppet government as many of the Arab nations now seem to be.

I believe we will get an rv when.... who ever they are......say so not necessarily Iraq.

Dame

---

Hi Dame

You have a good point, and one that I think, once considered, does appear

to be very valid, especially the part about our reasons for being there. It is about resources

and having a presence in the region. But it may not be as clear cut as we think. I totally agree

with the "puppet gov" thought...that does appear to be part of the reason for inciting the unrest

over the last several months. I believe the target to be ultimately Saudi Arabia, they just do not

know it yet.

With so much behind the scenes corruption within financial markets and the push by many

countries to focus on gathering resources and via means of war if necessary, there may be

so much we do not fully comprehend at this time. More countries are in serious disintegration

now than those who are not. How it all plays out I fear will not end up being best for everyone

involved. We should be seeing outright defaults soon from at least 2 PIIGS countries, either

Portugal and Greece, but really, at this point, it is pretty sad overall.

Thanks for your thoughts.

All my best!

Jim

---

[Jim1cor13]

Seems like they would have to introduce them before RV but they would have to suspend all IQD sales first. This is exactly the point Keepem made in his post. If we see this happen the we are rich.

Hi dinarck

This really is something I think we should be on the lookout

for definitely. As of yet, simply no available confirmation of

any denom lower than 50.

That does not mean they do not exist...but it also does not mean

they in fact DO. So we continue our quest for the best outcome.

All my best!

Jim

---

[dinarck]

Hi dinarck

This really is something I think we should be on the lookout

for definitely. As of yet, simply no available confirmation of

any denom lower than 50.

That does not mean they do not exist...but it also does not mean

they in fact DO. So we continue our quest for the best outcome.

All my best!

Jim

---

Jim,

Thanks as always for your contribution. Always enjoy your posts. In my opinion the lower denoms exsist and are ready or almost ready for introduction. Whatever the outcome they will be needed. I wonder if the Kurish language requirement put a hold on their release or if the actual release date is far enough out for the reprint or "new" print to be completed. I have been wondering if they could just run the exsisting back through the printer to add the language or if they had to do a whole new print to do it. I would think that the exsisting bills had aready been cut so I am unsure if they could have been run back through the printer. Seems like a huge waste if they had to destroy all those bills just to add something to them. All this is really specualtion although I believe I read somewhere that exsisting lower denoms were in fact printed at the time of the currency currently in circulation.

Wow it's funny what we wonder about these days. A year ago I could have cared less about Iraqi reprints or Iraq at all for that matter.

Edited May 31, 2011 by dinarck

[jmw]

During a discussion on another thread a thought occured to me that I can't believe I haven't wondered about before and that would be the morning after a RV and how would buisiness in Iraq could be conducted without lower denoms. What I mean is if it RVed tomorrow at 1:1 then the lowest bill in circulation would suddenly be worth 50 USD overnight. How would Iraqis do buisiness the morning after with their lowest bill worth that amount? It almost seems to me that they would have to either introduce or have at the ready new lower denoms for the next day. Wanted to go ahead and start another post to get everyones thoughts on this. Maybe there is something I am missing and I will feel really stupid if it is something simple. Haha. Anyway thanks to all for your input.

Hey Dinarck...saw your question on the other thread and that you were going to start a new one...so I thought I would answer your question here instead of there...anyway...I think the issue is that you are looking at this from our perspective and not theirs....when they wake up after the RV nothing will change right away and they won't need lower denoms to make change...the only prices that will change for them are for IMPORTS...remember this is a change in the exchange rate...let me try it this way...if they bought the newest model camel there...a fancy 2011 model and they paid $30,000 dinar for it...put $10,000 dinar down and financed $20,000 dinar they would still owe the $20,000 dinar...and there would not be a change in price for all of the other camels on the lot...however, they could import a brand new ford focus with spinning rims for $20,000 dinar...which before the RV was worth $23,000,000 Dinar....Think of the US dollar...even though the value against other currencies changes ofter prices at the store aren't impacted immediately. They are changed as items are imported and then the prices are adjusted.

This is one of the main situation that I struggle with when it comes to a huge revaluation...It would cause hysteria...everything would be so much cheaper to import than to buy locally that it would cause the country to implode...you could import fruits and vegetables for a fraction of what local growers would be selling them for.

Again you have to remember that they are not going to be exchanging Dinar for Dollars...so it affects them very differently than it affects us....and i think Keepem does know everything!

[dinariac]

Hey Dinarck...saw your question on the other thread and that you were going to start a new one...so I thought I would answer your question here instead of there...anyway...I think the issue is that you are looking at this from our perspective and not theirs....when they wake up after the RV nothing will change right away and they won't need lower denoms to make change...the only prices that will change for them are for IMPORTS...remember this is a change in the exchange rate...let me try it this way...if they bought the newest model camel there...a fancy 2011 model and they paid $30,000 dinar for it...put $10,000 dinar down and financed $20,000 dinar they would still owe the $20,000 dinar...and there would not be a change in price for all of the other camels on the lot...however, they could import a brand new ford focus with spinning rims for $20,000 dinar...which before the RV was worth $23,000,000 Dinar....Think of the US dollar...even though the value against other currencies changes ofter prices at the store aren't impacted immediately. They are changed as items are imported and then the prices are adjusted.

This is one of the main situation that I struggle with when it comes to a huge revaluation...It would cause hysteria...everything would be so much cheaper to import than to buy locally that it would cause the country to implode...you could import fruits and vegetables for a fraction of what local growers would be selling them for.

Again you have to remember that they are not going to be exchanging Dinar for Dollars...so it affects them very differently than it affects us....and i think Keepem does know everything!

Hats off to you jmw As I was reading down this thread, I couldn't believe that people did not see the obvious. Iraqis are not going to be exchanging IQD for USD For them, their 50 dinar note will be worth exactly, DRUM ROLL PLEASE, 50 dinar. The only thing that changes is their buying power.

RRRRVVVVVVVVVV T T T T T T T T T T I I I I I I I I I M M M M M M M M M E E E E E E E E E E :woot:

[dinarck]

Hey Dinarck...saw your question on the other thread and that you were going to start a new one...so I thought I would answer your question here instead of there...anyway...I think the issue is that you are looking at this from our perspective and not theirs....when they wake up after the RV nothing will change right away and they won't need lower denoms to make change...the only prices that will change for them are for IMPORTS...remember this is a change in the exchange rate...let me try it this way...if they bought the newest model camel there...a fancy 2011 model and they paid $30,000 dinar for it...put $10,000 dinar down and financed $20,000 dinar they would still owe the $20,000 dinar...and there would not be a change in price for all of the other camels on the lot...however, they could import a brand new ford focus with spinning rims for $20,000 dinar...which before the RV was worth $23,000,000 Dinar....Think of the US dollar...even though the value against other currencies changes ofter prices at the store aren't impacted immediately. They are changed as items are imported and then the prices are adjusted.

This is one of the main situation that I struggle with when it comes to a huge revaluation...It would cause hysteria...everything would be so much cheaper to import than to buy locally that it would cause the country to implode...you could import fruits and vegetables for a fraction of what local growers would be selling them for.

Again you have to remember that they are not going to be exchanging Dinar for Dollars...so it affects them very differently than it affects us....and i think Keepem does know everything!

I must be corn fused . Are you saying that the soda in Iraq will still be 500 dinar until they import one for .50 dinar? Haha. I must be missing something. The soda in the market would have to be worth . 50 the next day after RV because that is what it is worth in relation to the newly revalued currency. Right? How can they buy it without lower denoms?

[jmw]

I must be corn fused . Are you saying that the soda in Iraq will still be 500 dinar until they import one for .50 dinar? Haha. I must be missing something. The soda in the market would have to be worth . 50 the next day after RV because that is what it is worth in relation to the newly revalued currency. Right? How can they buy it without lower denoms?

No you aren't missing anything....it will still be 500 dinar...I get that it is sometimes difficult to understand...why would i buy one for 500 dinar when I could import 500 cokes for the same price...and that is why i don't believe you will see a large revalue. Think about this...if tomorrow the dollar went up 1000% to the Euro what would be different for you?...would our prices change in one day?....NO!...A revalue only gives them buying power....nothing else...what happens to the car someone bought with a bank loan for 23 million dinar then the next day they still owe 23 million dinar but the dinar is now worth $23 million instead of $23,000.....what do you think would happen to car and home loans?

[dinarck]

Wow!!! I guess I never thought about it that way. Makes sense. Guess I just figured prices would be adjusted accordingly. Thanks to people like you I learn something new everyday. If that is the case then Im with you. Dont see how there could be a straight RV unless they adjusted prices. There is simply no other way.

[dinarck]

No you aren't missing anything....it will still be 500 dinar...I get that it is sometimes difficult to understand...why would i buy one for 500 dinar when I could import 500 cokes for the same price...and that is why i don't believe you will see a large revalue. Think about this...if tomorrow the dollar went up 1000% to the Euro what would be different for you?...would our prices change in one day?....NO!...A revalue only gives them buying power....nothing else...what happens to the car someone bought with a bank loan for 23 million dinar then the next day they still owe 23 million dinar but the dinar is now worth $23 million instead of $23,000.....what do you think would happen to car and home loans?

Hey JMW,

Sorry to keep this discussion going especially after you have already explained fully. I guess I just cant rap my brain around it. I am not saying you are wrong because I really dont know. I hate to have to keep picking at you for more info here but I guess I just want to understand fully how that would work. Trust me I am not one of these RV is the only outcome people, as a matter of fact I see a redenomination as the most likely outcome but I just can't get why they wouldn't adjust prices if a RV did happen.

I understand that if suddenly the USD increased in value 1000 times that prices would not change here because our prices are already resonably set. The case with Iraq is quite different though. Their currency is in a hyperinflated state. If they decided to straight up RV what would stop them from adjusting prices overnight?

Car and home loans I guess could be an issue but if you think about it not really. When the Iraqi took out the loan say he borrowed 25 million IQD for a house and he is making payments on the loan of 1 million IQD per month. Really if you think about it he really borrowed 25 thousand USD or 25 thousand USD worth of IQD and he is really paying 1000 USD per month on the loan or 1000USD worth of IQD. Since the IQD is pegged to the USD and USD is used in Iraq then we could really look at both currencies relative to their values post or pre RV. So if it did RV tomorrow why couldnt the company who loaned the money just say ok you dont owe me 25 milliom IQD you only owe me 25 thousand IQD since yesterday 25 million IQD was worth what 25 thousand IQD is worth today? The company who loaned the money only wants what the house is worth plus their cut so if they are aware that the currency just revalued then they would only want what the house is worth plus their cut in the new revalued currency.

I dont know I just think that if all prices can be adjusted post RD then I would think they could be adjusted post RV as well. I also understand your point about purchasing power being the only thing affected post RV but wouldn't an Iraqis 25,000IQD suddenly becoming worth 25,000USD seriously increase his purchasing power? I understand that he would not trade for USD because there would be no need.

Thanks for putting up with me bugging but asking questions is how I learn.