Lower Denoms

[DiNaR DoCtOr]

You know i thought this post would be the same as most the other rumors out there until i saw something that made me smile. the term "same same" , any one who has spent anytime at all in the ME would recognize this as almost as common as En Shah Allah, or Bokra Bada Bokra. Im not saying the rumor turns out but it sure leeds to some credibility for me.

I have to completely agree with you! I read this with a grain of salt but then I saw the same same. I worked for a bank in a community with a heavy Somalian population, and they would come in looking to break a 100 dollar bill. They would always say I need 20 20 (10 10) it took a few times to understand that meant they wanted twenties for the cash back. Interesting Rumor!

[Wassaap]

RodandStaff...

That is the cutest baby boy I have seen in a long time! Every time I see that picture (your avatar) I just want to run over, grab him up, and squeeze his cute little cheeks!

Edited June 10, 2011 by Wassaap

[jmw]

can i be called an RDer instead of a lopster?...I hate that term...anyway...they don't need lower denoms with a RV...at least not right away...it's an exchange rate...prices wouldn't be lowered until new imports were purchased...the lower prices would only apply to items that are imported...local products would not change....The part that bothered me was them saying they wanted to hold on to the large bills...since the value hasn't changed it doesn't matter if they are small or large bills...you just need a lot more of the small ones....if prices are being lowered are salaries being lowered too?...there are a lot more moving parts than just adding lower denoms...if there are lower denoms out...i assure you it is a re-denomination as they would have to coexist with the old currency until the old currency was removed from circulation.

[KNOW B.S.]

Those aren't the missing denominations that I've been told about but I appreciate the information. When I read your post I had to check your profile to make sure you aren't some quack or pumper. From what I read you sound legit and have even called people out on their suspicious intel which I was glad to see. Looking forward to your follow up.

Hey Mr.Rich nice profile pic you kill me dude

[KNOW B.S.]

Those aren't the missing denominations that I've been told about but I appreciate the information. When I read your post I had to check your profile to make sure you aren't some quack or pumper. From what I read you sound legit and have even called people out on their suspicious intel which I was glad to see. Looking forward to your follow up.

Hey Mr.Rich nice profile pic you kill me dude

[xxxgator]

good post hope to see more ! Even if you have picture's though ; be warned special Agent'S Kwf AND mR. rICH WILL STILL CRY BS .as far as mr riches post goes he is incorrect those are the denominations that are suppossed to be introduced into into circulation. 1's, 2.5's ,5's,10's ,20's ect.Peace

[zul]

can i be called an RDer instead of a lopster?...I hate that term...anyway...they don't need lower denoms with a RV...at least not right away...it's an exchange rate...prices wouldn't be lowered until new imports were purchased...the lower prices would only apply to items that are imported...local products would not change....The part that bothered me was them saying they wanted to hold on to the large bills...since the value hasn't changed it doesn't matter if they are small or large bills...you just need a lot more of the small ones....if prices are being lowered are salaries being lowered too?...there are a lot more moving parts than just adding lower denoms...if there are lower denoms out...i assure you it is a re-denomination as they would have to coexist with the old currency until the old currency was removed from circulation.

even if it is RD, they still have to come up with a mechanism on pricing as it involves 'dual' pricing ~ if larger and lower denom were to coexist. And salariy structures too.....should they revamp and start paying 'adjusted' salary or maintain status quo..

I hoping for RV..

[20MillionDinar]

I hate that term...anyway...they don't need lower denoms with a RV...at least not right away...it's an exchange...if there are lower denoms out...i assure you it is a re-denomination as they would have to coexist with the old currency until the old currency was removed from circulation.

JMW I am curious why they would not need lower denoms with a RV? How does that even make sense? If they RV the IQD at even 1 penny the smallest note in circulation (50 note) would be worth $0.50. Is it possible to have the smallest note worth $0.50? Just curious... If the Dinar went to $.02 then the smallest note (50 IQD) would be worth $1.

Do you see what I'm getting at? Unless you are talking about an RV that takes the rate from 1170 to like 500 dinars to the dollar...

Please clarify the reasoning behind your statement. Thank you in advance.

[hafizul]

looks great..thanks for sharing...

godbless...

GO RV !!!

[DinarCowboy2]

Awesome post

Thanks

GO RV!

[familyguy]

thanxs for sharing. GO RV

[navecoll]

Awesome post, can't wait to hear more...tell your husband "Thanks", and "stay safe".

[speculatorsRIDE]

can i be called an RDer instead of a lopster?...I hate that term...anyway...they don't need lower denoms with a RV...at least not right away...it's an exchange rate...prices wouldn't be lowered until new imports were purchased...the lower prices would only apply to items that are imported...local products would not change....The part that bothered me was them saying they wanted to hold on to the large bills...since the value hasn't changed it doesn't matter if they are small or large bills...you just need a lot more of the small ones....if prices are being lowered are salaries being lowered too?...there are a lot more moving parts than just adding lower denoms...if there are lower denoms out...i assure you it is a re-denomination as they would have to coexist with the old currency until the old currency was removed from circulation.

I don't think that folks will change the lopster to RDer. Perhaps you should convert and become one of us. lol

Perception and mindset. Each of us formulate our own opinion about what will happen with this RV. This means that we will never be able to understand a post from someone that has a different perception then we have. It's apples and oranges.

Your assertion that they don't need lower denoms with a RV makes sense to you because you think that they will RV to a rate of 500 IQD/$1. Therefore, they don't need lower denoms yet. As you know, I believe they will RV at a rate of 1 IQD/$3.22 or higher. With my perception they absolutely have to have lower denoms and in addition to the denoms listed by the OP, they will need fractional denoms or coins as well.

Your comments about prices not changing, to me, didn't make much sense. If they are to RV, then pricing would have to change as would salaries.

[RodandStaff]

RodandStaff...

That is the cutest baby boy I have seen in a long time! Every time I see that picture (your avatar) I just want to run over, grab him up, and squeeze his cute little cheeks!

Thanks... wish he was mine, but I had to cheat a little. We do have two adopted kids, and when our son was a little tyke he looked just like that ... that's why I couldn't resist this picture.. and I get the same reaction still every time I look at it too. I will have to see if I can scan an old photo of him in for a new avatar but I hate to give up this one... and I am not that much of a techie geek. My son is now 17 and stands 6'2"... where does the time go?

[jmw]

JMW I am curious why they would not need lower denoms with a RV? How does that even make sense? If they RV the IQD at even 1 penny the smallest note in circulation (50 note) would be worth $0.50. Is it possible to have the smallest note worth $0.50? Just curious... If the Dinar went to $.02 then the smallest note (50 IQD) would be worth $1.

Do you see what I'm getting at? Unless you are talking about an RV that takes the rate from 1170 to like 500 dinars to the dollar...

Please clarify the reasoning behind your statement. Thank you in advance.

to me one of the biggest mistakes people make is to look at this from our perspective instead of from Iraq's....since a revaluation only affects the value of dinar to foreign currency then prices will drop on items that are imported only...Think of it this way, what would be different for us if the value of the dollar went up 1000% again the Euro?...would our prices change?...Iraqi's will not be exchanging their IQD for US dollars...Think about items that are already on the shelf in Iraq...if the store paid $25,000 dinar for it and is selling it for 50,000 dinar...that price will not change until they are able to import a new one for $25 dinar...then they could price it at $50 dinar.

Iraqi's will have a lot more purchasing power...but only for imports...let me ask you....what do you think would happen to the price of a home in Iraq after it revalues?...How would it be affected?....the revalue doesn't give Iraqi's more wealth it gives them more purchasing power...

I don't think that folks will change the lopster to RDer. Perhaps you should convert and become one of us. lol

Perception and mindset. Each of us formulate our own opinion about what will happen with this RV. This means that we will never be able to understand a post from someone that has a different perception then we have. It's apples and oranges.

Your assertion that they don't need lower denoms with a RV makes sense to you because you think that they will RV to a rate of 500 IQD/$1. Therefore, they don't need lower denoms yet. As you know, I believe they will RV at a rate of 1 IQD/$3.22 or higher. With my perception they absolutely have to have lower denoms and in addition to the denoms listed by the OP, they will need fractional denoms or coins as well.

Your comments about prices not changing, to me, didn't make much sense. If they are to RV, then pricing would have to change as would salaries.

Your right...but it isn't about an opinion or a perspective...it is about the consiquenses....every action has an opposite but equal reaction...so you have to look at what the consequence would be for a revalue...how it affects home and care loans...how it affects invoices...how it affects salaries....how it affects imports...how it affects business that already have products on the shelves...it's not about foreign speculators it is about the impact on Iraqi's.

If I am an Iraqi business ower and I purchased 1 million dinar worth of product...I have 30 days to pay the invoice and the dinar revalues within that 30 days...I owe my supplier 1 millioni dinar...but now that dinar is worth 1 million US dollars instead of $1,000 US dollars...do I pay based on the new rate or the old rate?...can you help me answer some of these questions?

[LR Bobert]

Thanks for the post RB one picture of the 20 dinar note, would pretty much negate any LOP rumor. again Thank you and your husband! PS if you have skype computor to computor calls and or video calls are free.

[wbuse984]

Keep - thanks for the level perspective

On the other countries that RD their currency, one thing most did not have that Iraq does that perhaps makes this different is the resources and potential GDP to be able to dual currency for a time without actually making the 25000. We should hear something at some point where 25K notes in-country will HAVE to be taken to the bank to be deposited and then citizens can withdraw limited amounts from an ATM (thus controlling cash flow)...we just will not know exactly how and what they are thinking until Iraq officially announces, meanwhile I believe that the powers-that-be in Iraq are not above hornswoggling their lesser educated counterparts (much like the inbred washintonians think the majority of Americans are idiots). Also not factored is that the powers-that-be may be using this to enrich their brothers, uncles, cousins, nephew (again the cultural thing). Bottom line is the Iraqi people may be somewhat uneducated or ignorant in many ways, but that does not equate to stupidity or a lack of crafty-ness...IHMO

Crap, did I do a silent but deadly release of pixie dust and breath in at the wrong time

Who knows, but RB thanks for the post and if the lower denoms are real, that is a sign that the ride is almost over, but have not topped the last clinking roller coaster hill to be able to see how it ends.

Wayne

[20MillionDinar]

to me one of the biggest mistakes people make is to look at this from our perspective instead of from Iraq's....since a revaluation only affects the value of dinar to foreign currency then prices will drop on items that are imported only...Think of it this way, what would be different for us if the value of the dollar went up 1000% again the Euro?...would our prices change?...Iraqi's will not be exchanging their IQD for US dollars...Think about items that are already on the shelf in Iraq...if the store paid $25,000 dinar for it and is selling it for 50,000 dinar...that price will not change until they are able to import a new one for $25 dinar...then they could price it at $50 dinar.

Iraqi's will have a lot more purchasing power...but only for imports...let me ask you....what do you think would happen to the price of a home in Iraq after it revalues?...How would it be affected?....the revalue doesn't give Iraqi's more wealth it gives them more purchasing power...

This is exactly my point. It will only affect items that are imported. They import almost everything they use and consume! In fact, most ME countries are importing countries with the exception of Oil.

Think about how many things we (USA) import to the states that are under $1. We need change for every single one of those items when we purchase it from the store. I am not talking about Iraq exchanging their IQD's for USD's. I'm talking about the value of the IQD being equal to $0.01 on a worldwide scale. Their smallest note (50 dinars) would equal $.50 on a worldwide scale. Don't you think they will need something smaller to conduct business in Iraq?

What are they producing in Iraq at this time?

What do they manufacture?

What don't they import to their country besides oil?

I am simply talking about the Iraqi's having the ability to have a small enough denomination of currency so that they can get change when purchasing items from THEIR stores and markets.

Maybe they won't have anything in their country with a value of less than $.50... I don't think so.

Edited June 10, 2011 by 20MillionDinar

[2fast4u2c]

I saw this same post on another site that is known for garbage so, I am not so excited....

[Pilgrim]

I saw this same post on another site that is known for garbage so, I am not so excited....

except it came from here first, just because a moron quotes Oppenheimer does not mean Oppenheimer was a moron.

[20MillionDinar]

Example: Let's say the IQD = $0.01. Ok, this would mean a 50 Dinar Note = $0.50 Can we all agree?

Now, let's say the Iraqi small business owner imported 50 pencils using that 50 dinar note from China which cost him exactly 50 Dinar.

You said there is no need for smaller denominations with an RV, so because there are no small denominations in Iraq the business owner will be forced to sell ONE pencil that he technically bought for 1 Dinar for 50 dinars to the iraqi citizens? This is 50x the original purchase price. I don't think this would work so well.

Now think about everything that costs less than $.50 and it would be the exact same scenario. I hope you understand what I am saying...

[2fast4u2c]

Pilgrim, we have soo many investors on here from in Iraq now, that we would have verification. Sorry but I am not buying it until I see the lower denoms.

Not a hater, just want to see pix.

[Darin]

Example: Let's say the IQD = $0.01. Ok, this would mean a 50 Dinar Note = $0.50 Can we all agree?

Now, let's say the Iraqi small business owner imported 50 pencils using that 50 dinar note from China which cost him exactly 50 Dinar.

You said there is no need for smaller denominations with an RV, so because there are no small denominations in Iraq the business owner will be forced to sell ONE pencil that he technically bought for 1 Dinar for 50 dinars to the iraqi citizens? This is 50x the original purchase price. I don't think this would work so well.

Now think about everything that costs less than $.50 and it would be the exact same scenario. I hope you understand what I am saying...

You bring up valid view points.

The OP listed notes in certain denominations.

I would not be surprised for them to introduce coinage. Small value currencies tend to get used more frequently and coinage would likely prevent the need for frequent replacements.

I would assume they have plans to eventually introduce coinage, and who knows, they may have coinage ready to go... But have yet to even slightly distribute it yet considering the value is merely worthless...

As for your purchasing power, I agree.

The value of assets will not change upon a R/V

However, the purchasing power will.

Here is a good way to view it to help make sense. Lets say at any given random day out of the year, every citizen in the U.S. suddenly has their current bank account balance multiplied by 1,000.

Therefore, if you held 1,500.00 in your account, you suddenly have 1,500,000. Quite the jump!

It doesn't effect the value of your assets as they remain the same.... (Purchasing power wise)

Another way for us to see it is if the cost of items suddenly dropped 1,000 times. (Which may relate more to the M.E. in this scenario)

Suddenly, a $1,000 TV suddenly costs us a $1....

However, upon this type of change... Our jobs would pay us 1,000 times less, our incomes would be 1,000 times less, and so forth.

It benefits the citizens....... It gives them spending power.

Prices for them drop.......

[Darin]

this is so simple the Iraqi’s already treat the dinar as though the zero's are gone

they can use the same currency simultaneously like Venezuela did

If they were already treating the notes and spending them as if the 000s were non-existant, what is the benefit of doing a R/D?

Is the idea of seeing those extra 000s such an annoyance that it is worth the hassle to R/D?

I understand the idea of making a more appealing exchange rate... But, it appears that is basically all they are really doing... A more appealing exchange rate upon a R/D

It does not really have any positive or negative effect on the citizens except for potential confusion when new notes are introduced.

As for their purchasing power? Remains the same.. Those in poverty remain in poverty, those that are extremely wealthy remain wealthy... Nothing will be changed...

However, If I was a business owner looking to take a franchise business to set up shop over there with the expectation(s) that nearly 30 million people suddenly have more purchasing power, the idea would be tempting... If the GOI & CBI go ahead and R/D, I may think to myself.. "Looks like the poor are going to remain poor, so it will not be a wise investment for me to do business there..."

End result? Opportunity of jobs lost.. Potential to serve goods & services to the people... Economy - remains to struggle.

We see many places doing some "bigger" contracts.. But most of them are oil/crude-related

Anyways, to stay on topic, it appears we have 2 "boots on the ground" claims. One is looking to basically rely on one interpreter while another has claimed to have seen the notes in person and is going to try and get pictures... I guess if pictures do come about, than, someone here may be eating 'crow.' LOL

[jmw]

Example: Let's say the IQD = $0.01. Ok, this would mean a 50 Dinar Note = $0.50 Can we all agree?

Now, let's say the Iraqi small business owner imported 50 pencils using that 50 dinar note from China which cost him exactly 50 Dinar.

You said there is no need for smaller denominations with an RV, so because there are no small denominations in Iraq the business owner will be forced to sell ONE pencil that he technically bought for 1 Dinar for 50 dinars to the Iraqi citizens? This is 50x the original purchase price. I don't think this would work so well.

Now think about everything that costs less than $.50 and it would be the exact same scenario. I hope you understand what I am saying...

We actually aren't that far off...I said they wouldn't need them right away..."they don't need lower denoms with a RV...at least not right away...it's an exchange rate...prices wouldn't be lowered until new imports were purchased"...it would be deflation in a way...try not to oversimplify it...look at all products to see how it would affect them...give me your opinion on the following:

After a 1 to 1 rv...

do home prices stay the same?...a home that was equal to $200,000 is now going to be equal to $200 Million?

If I bought a car yesterday for 25 million dinar put 10% down...so I now owe roughly $22 million dinar...but now it revalues...do I owe the equivalent of $22 million US?

If my annual salary is 100 million dinar per year....it rv's...am i now paid the equivalent of 100 million US per year?

What about my electric bill that just showed up for 500,000 dinar...it it rv's before i pay the bill do I pay the old rate or the new rate?

look forward to your reply.

You bring up valid view points.

The OP listed notes in certain denominations.

I would not be surprised for them to introduce coinage. Small value currencies tend to get used more frequently and coinage would likely prevent the need for frequent replacements.

I would assume they have plans to eventually introduce coinage, and who knows, they may have coinage ready to go... But have yet to even slightly distribute it yet considering the value is merely worthless...

As for your purchasing power, I agree.

The value of assets will not change upon a R/V

However, the purchasing power will.

Here is a good way to view it to help make sense. Lets say at any given random day out of the year, every citizen in the U.S. suddenly has their current bank account balance multiplied by 1,000.

Therefore, if you held 1,500.00 in your account, you suddenly have 1,500,000. Quite the jump!

It doesn't effect the value of your assets as they remain the same.... (Purchasing power wise)

Another way for us to see it is if the cost of items suddenly dropped 1,000 times. (Which may relate more to the M.E. in this scenario)

Suddenly, a $1,000 TV suddenly costs us a $1....

However, upon this type of change... Our jobs would pay us 1,000 times less, our incomes would be 1,000 times less, and so forth.

It benefits the citizens....... It gives them spending power.

Prices for them drop.......

wrong, wrong, wrong...your example gives them additional wealth...no one is giving them more dinar...they can just buy more foreign products with it...they don't have more they can purchase more...

Your next example is accurate...except why would our jobs pay us less just because our currency is worth more than the Euro or some other currency...once you adjust their pay you remove their purchasing power...at which time the rv only helps investors...and that won't happen.

Edited June 10, 2011 by jmw