Show me the money!

[keepmwlknfny]

http://www.ahamedkam.../FRBEffects.pdf

This document explains how most Islamic countries and banks to use fractional reserve banking, just like Western countries do.

Where does it say that the CBI won't?

Its a perspective article and yes it states both sides to the argument of using fractional banking and how its completely against Islamic laws and beliefs on theft....even goes on to say that they must use and enforce a foundation that steers away from fractional banking, that it needs to be changed.....now Im not claiming that the CBI cant or wont, cause there is nothing I have found about that....what I am getting at is that the CBI itself, seems to be following Sharia....the law of banking....if you take the CBI's reserves right now 50 billion (in USD value) and multiply it by the exchange rate of 1170 you will come out almost exact to the total money supply of 59 or so trillion......They sure arent showing any signs of using fractional banking so if they continue down that road (which would be the smartest decision for a worn torn country trying to get back on their feet) then something has to give for the dinar to appreciate in value....but as it stands right now it doesnt look like much will change....

[Buckeye Pilot]

Did you know that memorization is the lowest form of IQ? Online IQ tests do not count either. I think that you have been drinking too much HATER AID

Did you also figure out that Assuming such things as Another persons IQ based on you knowing Absolutley nothing about me proves your IQ is far lower than you think it is...........

Not sure why you decided to throw a dog in this ring, You sure did not do yourself any justice. If memorization serves me right I think the next line should be

Butt the Hell out........

Just Sayin.

[Basilthyme]

Basil, your economic text book explanations won't work. The only thing Iraq exports that has any value to the world is....oil.

How do we pay today for Iraq's oil?

Right!

This RV will not negatively impact this oil business.

Oh, ok then. In that case I'll just take it on faith. Faith makes for the best investments, right?

Both Iraq and the US ( the PTB) will benefit from this RV greatly.

It's a matter of following the money.

Funny, that's what I thought I was doing.

Don't think that the macro economical models they teach you in school actually work. That's all smokes and mirrors. There's soooooo much off-balance deals happening it's mindblowing. We're talking trillions of off-balance trades happening every day.

SS or it didn't happen?

Most of the stuff you read in the media and think you know is artificial.

Could you please tell me where I can get a subscription to Sooper Secret Armchair Master Spy Ultra Mega Truth Weekly then? Er, wait, you mean you're reading the exact same crap as me? I guess I need to start saving box-tops for some badass xray glasses so I can see what's really going on.

If I buy land that's worth 1 mio $ as it doesn't have a DA for - say - a series of dwellings and I get a DA to build 40 dwellings on there, this piece of paper ( DA) does only have the intrinsic value of say - 1 $ right? Maybe 3$ if you include the postage stamp.

My property might have increased in value 20 fold.

Where is that registrered? That's value, right? Now I sell 20 lots for 1 mio a piece.

I generated ( on the basis of the DA) 20 million $. Which I most likely will never see in actual coins or notes.

I don't even understand what you've written here, so obviously I'm scratching my head over how it illustrates some inherent flaw in economics.

This is one example of how it's impossible for our govern men and wankers to know what's going on. Or to even manage it.

Wait, you're screwing up my investment philosophy here. First you said there's some secret financial alchemy being perpetrated behind the scenes (the implication being that buying Dinar will enable me to ride the economics coattails of the Illuminati to wealth), and now you're saying what's going on is too complicated for anyone to manage (or ****, maybe I should buy gold because everything's going to hell)?

Welcome to the Casino, brother.... Follow the money.

So, just to recap:

1. I should ignore everything I know about economics because "smokes and mirrors".

2. There is a major monetary conspiracy.

3. There isn't a major monetary conspiracy.

4. If there is a major monetary conspiracy, you've outsmarted all the central bankers in charge of it (all whom have PhD's in economics and whom are using economic theory to either guide their actions or disguise them), with, drum roll please....................................... the internet.

****, very compelling case for currency speculation!

WOW....very well put!!! Where have you been hiding?? Havent seen you jump into these discussions much but it seems you definately have a grasp on this stuff.......good post!! +1 for you!

I come out to play when I hear economic arguments, as that's what interests me about this whole scenario. I usually take a break from this site when I read enough of the "economics is wrong" and "everything you think you know is wrong but what I know is right" mantras.

[keepmwlknfny]

I come out to play when I hear economic arguments, as that's what interests me about this whole scenario. I usually take a break from this site when I read enough of the "economics is wrong" and "everything you think you know is wrong but what I know is right" mantras.

That gets under your skin too? I find it pretty annoying when people do the same.....the numbers dont lie and this investment isent as complex and full of conspiracy as some like to believe (only cause they make it fit the RV) Stick around more Id like to bring you into discussions with a few others here when we have good drawn out debates.....never hurts to hear another perspective!!

Edited June 18, 2011 by keepmwlknfny

[LS1Hawk]

Roosenbos --- Beautiful post! I was wondering how this RV would work if fractional banking wasn't used. The otherside of the argument (which I think will fold) is the sharia law of backing their money 100%. I think the IMF will be so deeply entrenched in reshaping Iraq's enconomy, when the the announcement is made to the people that their currency has been restored and their purchasing power as high or higher than the USD, you may have only a small group of people protesting and will quickly be drowned out by the mass celebration.

....or a crazy holy war by the mass protest against the corruption by the IMF.

[keepmwlknfny]

Roosenbos --- Beautiful post! I was wondering how this RV would work if fractional banking wasn't used. The otherside of the argument (which I think will fold) is the sharia law of backing their money 100%. I think the IMF will be so deeply entrenched in reshaping Iraq's enconomy, when the the announcement is made to the people that their currency has been restored and their purchasing power as high or higher than the USD, you may have only a small group of people protesting and will quickly be drowned out by the mass celebration.

....or a crazy holy war by the mass protest against the corruption by the IMF.

Even if they break away from backing their currency 100%, 50 billion in reserves still cant come close to backing up 59 trillion dinar even with fractional banking....at a 1 to 1 ratio with the USD, and stretching the fractional banking theory to almost DOUBLE the normal ratio (20 to 1) Iraq would still need 12 trillion in reserves to back their currency.....

[Dalite]

The model for Fractional Reserve Banking used in the US was changed from 10% to 3% during the Clinton years.

It may, or may not have been restored to 10%.

At 3%, when all the "surpluses" were being conjured up, for every 100.00 a customer deposited, the bank could lend out 97.00.

Further bundling of loans allows more dilution of reserve and more conjuring of money.

Not saying that it adds or takes away any validity to any argument, just saying it is what it is.

As far as Islamic Banking law, the CBI publishes it's interest rates on the home page, and Islamic Banking Law prohibits Usury

So you can see there is already conflict in current policy of the CBI with that facet of the equation.

[keepmwlknfny]

The model for Fractional Reserve Banking used in the US was changed from 10% to 3% during the Clinton years.

It may, or may not have been restored to 10%.

At 3%, when all the "surpluses" were being conjured up, for every 100.00 a customer deposited, the bank could lend out 97.00.

Further bundling of loans allows more dilution of reserve and more conjuring of money.

Not saying that it adds or takes away any validity to any argument, just saying it is what it is.

As far as Islamic Banking law, the CBI publishes it's interest rates on the home page, and Islamic Banking Law prohibits Usury

So you can see there is already conflict in current policy of the CBI with that facet of the equation.

What do you mean by "prohibits Usury"?

[Dalite]

Usury is the cost of use.

We refer to it as interest.

The concept probably dates back to the origins of banking, and it basically states that we can exchange toil for wages and use wages to offset loans, but there is no mechanism for generating usage penalties. Usury is considered a loss of balance between toil and wages.

[speculatorsRIDE]

Even if they break away from backing their currency 100%, 50 billion in reserves still cant come close to backing up 59 trillion dinar even with fractional banking....at a 1 to 1 ratio with the USD, and stretching the fractional banking theory to almost DOUBLE the normal ratio (20 to 1) Iraq would still need 12 trillion in reserves to back their currency.....

Keep this is where completing CH7 and moving on to CH8 (compliance) comes into play. Once they are in compliance all their non-liquid assets become monetized. So Shabs saying he could support a rate of $12 is possible at this point. Mind you I said possible not probable. But, as I have always stated and as Iraqi's want, them returning to the $3+ rate is probable. Again, we shall see.

Only the two R state banks will be banking with Sharia Law. All the other banks in Iraq are using fractional banking.

Edited June 18, 2011 by speculatorsRIDE

[keepmwlknfny]

Only the two R state banks will be banking with Sharia Law. All the other banks in Iraq are using fractional banking.

Yes but its the CBI that matters fully.....they are the ones backing their currency 100% with foreign reserves.......if you do the math the 50 billion in reserves in the CBI backs up the total money supply of 59 trillion dinar......