US buying oil with RV'd Dinar??

[keepmwlknfny]

thanks again keep,went to the Giant's game yesterday,great seats and now watchin on tv Great Weekend!!

Not watching the NBA finals tonight?? Whats wrong with you?!?! j/k

[ronberta]

Not watching the NBA finals tonight?? Whats wrong with you?!?! j/k

sorry have not been watchin like I use to,the games look good tho!!

[MrFnHappy]

I was going to just lurk on this thread, but have to give kudos to jim1 for a nice post.....carry on!

[umbertino]

Quote

scary thoughts going on...we are in a time of many uncertainties....

End Quote

That's for sure.

[keepmwlknfny]

Quote

scary thoughts going on...we are in a time of many uncertainties....

End Quote

That's for sure.

And I dont think its just limited to the US....I think people across the globe need to be aware of whats going on....

[Legolas]

Excellent posts....and unfortunately, I fear that Jim1cor13's response is likely right on the money. As the "has to RV by" dates have come and gone over the past couple of years it's become more and more evident that the Dinar situation isn't even remotely close to what we've been sold on by the gurus/pumpers/liars. Hang on as the ride increases in intensity.

[dog53]

Great post Gentleman I don't have enough +1`s to hand out to everyone. excellent information. It`s never to late to teach this ole dog new tricks that's for sure. It`s a very interesting time to be living in. All we can do is see how it plays out. But I have to agree gold and silver, everyone should have a least a oz on hand in case things turn to crap. And ammo the cockroaches will leave the city's to infest when the money dries up. Cause you cannot plant potatoes in concrete my friends

Edited June 5, 2011 by dog53

[DiNaR DoCtOr]

Jim -

You know from previous interactions that I do have respect for your approach to the investment, but I would like to comment and ask questions about your recent post. If our monetary policies are the laughing stock to the rest of the world, which you included pretty much all of Europe, then who is laughing? How much control of world fiscal policy do they have? China? China has a lot of US debt, we all know that. But it is denominated in US dollars, so they if don't adjust their currency because of trade imbalances. Fine, we will print more money and devalue what China holds as an investment, which will also even trade imbalances (albeit nominal at this point) So who has the upper hand? It appears from what I read that they are adjusting their currency and showing some flexibility. Personally, and I maybe a fool, I believe we have China by the balls. China knows they cannot stimulate their own demand yet, because they have no domestic consumption to support their manufacturing. So until they can stimulate their own demand they will rely on our consumption. Honestly, as much as I hate our social programs, it is exactly why citizens of this country save less than the Chinese and consume more. This is also the reason QE will be more successful than it was in Japan. It is a cultural thing. I often hear quoted the amazing rate of savings by the Chinese, but they have to since they have no social support. Are we on a dangerous path? Yes, but I think it will be plenty of time before China can support their own economy. I would imagine when you said we were the laughing stock you meant China. I would also be interested what other countries believe they have a better system.

Fiat currencies are under pressure because of the lack of confidence, due to the global recession. But I believe confidence will be restored, possibly because I am optimistic. However, the alternative of asset-backed currency scares me. Paper will always be worth paper, and to think a statement on the bill that says it is backed by some form of asset gives it more value is non-sense. It still leaves the system vulnerable to panics and fraud. We had asset-backed currency and we still had economic stresses. In fact an asset backed currency, IMO, leaves a country more vulnerable to economic attacks. Money to me is and should be a unit of account and form of repayment of debt. But a store of value? Its paper and will always be paper.

I always try to be brief, but make my point. I apologize if I jump around too much, have poor grammar, or made spelling errors. I can also say that I only know as much as I have learned and hope to understand, so I am sure there are some misunderstandings within my comment. I will not apologize for thinking outside the box, and believing that the individuals making monetary decisions for our country may know what they are doing.

[brookie]

Everyone seems to fall for the down fall of the mighty dollar.

The thing is who is gonna take our Place?

No one that's who we buy it all and if we are done so is the rest of it.

The collective of the world does not have the buying power of the

US and it is in the better interest of the world for it to exist.

China is not the power you might think they can not feed themselfs

China needs resources like a smack addict.

The USA can close it's doors on the world tomorrow and let the rest

of the world fight for scraps.

If the dollar was only worth a dollar in our own country we would be

Fine.

[keepmwlknfny]

Everyone seems to fall for the down fall of the mighty dollar.

The thing is who is gonna take our Place?

No one that's who we buy it all and if we are done so is the rest of it.

The collective of the world does not have the buying power of the

US and it is in the better interest of the world for it to exist.

China is not the power you might think they can not feed themselfs

China needs resources like a smack addict.

The USA can close it's doors on the world tomorrow and let the rest

of the world fight for scraps.

If the dollar was only worth a dollar in our own country we would be

Fine.

There are opinions that there isent anyone ready to take the place of the USD even thought there are many countries ready and willing to switch it over to the euro so I dont really know 100% if the USD can be replaced but its wanted out and when there is a will, there is a way.....And if we closed the doors on the world we would be up sh%&ts creek because we depend too much on outsourcing and importing goods to make it through.....we almost dont make anything anymore here in the states....its pretty sad....everything is sent across the seas.....

[Sawmill]

Keep, your right. If only enough Americans would realize what has and continues to happen to our manafacturing base, and would step up to the plate and start supporting American manafacturing by carefulling selecting what they buy, American business would gear up and get back into business. If this dinar investment ever RV's, I for one will be looking for investing in American based manafacturing! Might even do some myself.... We live in the greatest country in the world, bar none. We have unwittingly fell asleep at the wheel, but hopefully, the giant will wake up with a vengence! I believe in the USA, and will do all I can to preserve our way of life!

[War Eagle]

I have a question; Where does everyone think the dinars we cash in will go? Back to Iraq-----------------------------YES,but indirectly.the US will use these dinars to purchase OIL at $32 a barrel!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!End of story

[keepmwlknfny]

I have a question; Where does everyone think the dinars we cash in will go? Back to Iraq-----------------------------YES,but indirectly.the US will use these dinars to purchase OIL at $32 a barrel!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!End of story

Did you read the article I posted?? Or any of the comments I made?? Thats exactly what wont and cannot happen......the information I provided basically proves that anything other then USD to be used for the purchases of oil is a violation of OPEC agreements and it was part of the reason why we invaded Iraq...because they wanted to use the Euro.....If countries use a different currency other then USD, the value of our dollar will drop....which will in return affect the dinar because the CBI uses the USD to back the value of the dinar....its a lose lose situation and it wont happen...that was my purpose for making this post...to point out the explanation written by the economist on how the exchange process will work is flawed because its based on the US supposedly using Dinar to buy oil.....and that clearly wont happen....

[AZ Native]

Really?? I was talking to my friend the other day and he stated that the US screwed the Pooch on that tidbit of info.

[keepmwlknfny]

Really?? I was talking to my friend the other day and he stated that the US screwed the Pooch on that tidbit of info.

Can you be more specific about what your saying?

[AZ Native]

To be truthful because, I do not want to be coy, I will call him back tomorrow to get the specifics. Will post again tomorrow, after the conservation. Is that good for you? NO BS.

[keepmwlknfny]

To be truthful because, I do not want to be coy, I will call him back tomorrow to get the specifics. Will post again tomorrow, after the conservation. Is that good for you? NO BS.

Yea of course.....interested in hearing what he had to say.....

[gbosh]

The US govt doesn't have to buy the oil in IQD. They can simply exchange the IQD for a US$ credit, and use THAT for oil purchases. Of course that presumes that our govt would actually be in the oil purchasing business....

They could easily, as I proposed earlier, allow US companies to purchase the oil secured by the dinar position of the US govt, in exchange for 'tax' revenue.

I understand that a) oil contracts must be made in US$ and b ) the US Govt isn't in the business of buying oil to resell as a company would.

I still don't think the two above points are mutually exclusive with the concept of our govt using dinar value in exchange for oil.

gbosh

[keepmwlknfny]

The US govt doesn't have to buy the oil in IQD. They can simply exchange the IQD for a US$ credit, and use THAT for oil purchases. Of course that presumes that our govt would actually be in the oil purchasing business....

They could easily, as I proposed earlier, allow US companies to purchase the oil secured by the dinar position of the US govt, in exchange for 'tax' revenue.

I understand that a) oil contracts must be made in US$ and b ) the US Govt isn't in the business of buying oil to resell as a company would.

I still don't think the two above points are mutually exclusive with the concept of our govt using dinar value in exchange for oil.

gbosh

I agree there are probly different ways to purchase oil with USD, and IF there is any truth to the US holding massive amounts of dinar then I would suppsed like you say, there could be ways to just use USD to buy oil, but the whole premise of the economists explanation of how the RV exchange would work is stating that the dinar will get back to Iraq by using it directly to purchase oil, which after doing some reading, its pretty clear that it would be counterproductive and seems it wouldnt be possible at all....

[gbosh]

I agree there are probly different ways to purchase oil with USD, and IF there is any truth to the US holding massive amounts of dinar then I would suppsed like you say, there could be ways to just use USD to buy oil, but the whole premise of the economists explanation of how the RV exchange would work is stating that the dinar will get back to Iraq by using it directly to purchase oil, which after doing some reading, its pretty clear that it would be counterproductive and seems it wouldnt be possible at all....

Agree!

gbosh

[xxxgator]

All world currancy is based on the Usd up or down! That's why it's called the reserve currancy of the world!

If the Us. were actually going to purchace in iqd.the echange rate would be emplemented accordingly.A currancy clearing house [in the us and other countries i.e Wells fargo] ,will convert the cash trans-action into an electronic one and credit each party [the clearing house,federal reserve for each country] the appropriate amount's.Iqd will be shipped or destroyed according to agreed method's after confermation of funds received by all financial institutions involved.The way they have alway's done physical currancy exchange

They arn't going to re=invent the wheel at that level.The Iraqi debt didn't go away for love of the sand though.

Thanks for the post special agent KWF another fine message from the US.Gov.

[sandyf]

I agree there are probly different ways to purchase oil with USD, and IF there is any truth to the US holding massive amounts of dinar then I would suppsed like you say, there could be ways to just use USD to buy oil, but the whole premise of the economists explanation of how the RV exchange would work is stating that the dinar will get back to Iraq by using it directly to purchase oil, which after doing some reading, its pretty clear that it would be counterproductive and seems it wouldnt be possible at all....

It could be a question of terminology, I think the US is more likely to sell the oil. For example a tanker full goes from Iraq to say South Africa. The US gets a shed load of dollars and Iraq gets some of its currency destroyed. everybody is happy.

It is a bit academic if the US currently holds any dinar. They will have a pile of it once everyone cashes in.

Edited June 6, 2011 by sandyf

[Rossenbos]

A lot of people don't get how the monetary world works.

The US isn't able to print money "just like that". The US government borrows money like anyone at the Fed Reserve. The Fed Reserve is a privately owned company.

They profit from lending out money.

The US government has dinars on the books. Their current value is y. After the RV, it will be x times y = z.

Z can be used to purchase oil.

The point about people wanting to get their money in cash is ludicrous. Only 4% of the available fiat money exists in coins and notes.

We don't need to have the actual amount in coins and notes. Who cares. Computer digits are patient.

We can all be trillionaires. As long as we don't rush to the dealer to buy 20 Ferraris a day but act "normally" it doesn't matter.

This RV and the whole monetary strategy around it is:

1. Thought through in details many years ago already and thoroughly planned

2. in the hands of the PTB, the few families that rule the planet for decades, centuries....

3. Okie, Frank, Delta, Obama, Pele, Schwarzenegger, Bernanke, Blair....can't do **** about it. They're all puppets.

Sit on your bum. Have a beer. Be nice to old people. And wait and see.

[The G-Man]

A lot of people don't get how the monetary world works.

The US isn't able to print money "just like that". The US government borrows money like anyone at the Fed Reserve. The Fed Reserve is a privately owned company.

They profit from lending out money.

The US government has dinars on the books. Their current value is y. After the RV, it will be x times y = z.

Z can be used to purchase oil.

The point about people wanting to get their money in cash is ludicrous. Only 4% of the available fiat money exists in coins and notes.

We don't need to have the actual amount in coins and notes. Who cares. Computer digits are patient.

We can all be trillionaires. As long as we don't rush to the dealer to buy 20 Ferraris a day but act "normally" it doesn't matter.

This RV and the whole monetary strategy around it is:

1. Thought through in details many years ago already and thoroughly planned

2. in the hands of the PTB, the few families that rule the planet for decades, centuries....

3. Okie, Frank, Delta, Obama, Pele, Schwarzenegger, Bernanke, Blair....can't do **** about it. They're all puppets.

Sit on your bum. Have a beer. Be nice to old people. And wait and see.

Finally a good common sense quote. This is so simple and as usual Keep has to confuse it with conspiracy theory junk of Saddam wanting to trade in Euros. Where did that rumor come from? If that were the case, we should be invading Iran for switching to the Euro. As I said, this is so simple. The US sends their dinars to Iraq and Iraq sends USD back. Then US buys oil with USD and keeps the currency moving. It is amazing how figures can lie and liars can figure. It's really called mental, masturbation.

[keepmwlknfny]

Finally a good common sense quote. This is so simple and as usual Keep has to confuse it with conspiracy theory junk of Saddam wanting to trade in Euros. Where did that rumor come from? If that were the case, we should be invading Iran for switching to the Euro. As I said, this is so simple. The US sends their dinars to Iraq and Iraq sends USD back. Then US buys oil with USD and keeps the currency moving. It is amazing how figures can lie and liars can figure. It's really called mental, masturbation.

Its not a conspiracy....Saddam was demanding euros for oil......if you havent figured it out, Im not much into conspiracy theories....did you happen to read the link I provided?? Or just skip right to the comments?? We cant touch Iran right now.....believe me, if we could they would invade Iran but they have some pretty big allies behind them and we are going to need more of a reason to go in there.....take some time to read the link before inserting foot in mouth.....its not just a random made up story.....I try to stick to the facts.....thanks for ur useless comments though!!

The US government has dinars on the books. Their current value is y. After the RV, it will be x times y = z.

Z can be used to purchase oil.

So are you trying to say that the US govt will use physical dinar in holding to send to Iraq for the direct purchase of oil?? You were talking about the fed reserve and people getting cash or whatever but im not sure how that applies to the explanation that everyone wants to believe about when the RV happens, that our physical dinar will be cashed in, and then will be sent directly back to Iraq through the purchase of oil......that is what this post was about.....