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"Raise three zeros" What could that mean?


tamiflyer
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Clearly, there is a confusion with these three words in the latest news regarding the Iraqi Dinar. The way that I understand it is in value, not a misquoted translation of "Erasing three zeros" as some are thinking here. Money numbers are not erased. Zero is a number and can't be erased when it is on the right side of the whole number. However, it can be raised and or lowered. Think of it as your central air conditioner unit at home. If one raises the thermostat, it does not mean that the unit will function colder but actually means that the temperature value will be warmer than what it is at the moment, even thought the air conditioner's main funtion is to make rooms colder. This is also true in vise versa for lowering the temperature and not the unit's capability to decreasing the main funtion which is to cool. This is where the confusion lies here when he says "Raise the zeros" So in my conclusion and my humble opinion is that they will raise the value of the dinar to meet their demands, obligations and compensations which in turn takes us with them along for the ride and not drop the zeros and issue lower denoms at the same present rate. It will be all done simultaniously, such as when they exchanged the Dinars during the Paul Bremer days from 1 Dinar to 150 for the Swiss Dinars and one for one for the regular ones with Saddam's face on it. The next RV, for we had one or more already since the introduction of the Dinar in 2003, will take place as the exchange is being done but at a fixed rate, just like it is now, with a probable fixed exchange period before it is allowed to be traded internationally in large amounts legally. There will probably be much confusion and fear during that time period since it would be much to handle in such a short period of time for the Iraqi people and world wide investors, specially the ones that have never had this much money exchanged in their names. Please, this is all my opinion and today is my first time that I post here. I personally bought Dinars when they first came out on 15 October and have been watching from the sidelines, for a very long time, as I did not feel that the time was right to even worry too much about it. Today, however, has been a great news day for me and most of us in the Dinar world. Good luck to all and may you prosper in your endevours. I welcome comments from all sides. PEACE...

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Deleting/raising/lopping/removing the zeros is speaking of a redenomination......where as for every 1000 dinar you have, it will be equal to only 1 new dinar.....its the dark side of this investment....you basically move the decimal point over to the left 3 times for whichever bill you hold.....

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The only problem I see with the theory of nobody getting a return on this investment is that if we can't get a return on it, all the governments can't either. They are supposedly holding the same dinar we are as an investment, and I can't imagine the US, Germany, China, Japan, and all the other countries invested in Iraq would just simply go with their 'deleting of three zeros' only so everyone is left where we were before trillions of dollars was pumped into that country. I mean this is the age of governmental greed.... not one would freely give to Iraq without expecting some huge return! Just my thoughts on it......

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Imo, if this were to happen, it has to happen all around and the other notes would feel the effect also. There would be no way that Iraq could pay their debt this centufy. On the other side of the spectrum, raising the value of the Dinar can be done by retiring the higher notes and applying the value to the lower notes and then setting a fix rate backed up by the tangeable oil resources, new signed conlomerate bussiness contracts, futures, etc. Now, this would make the debt possible to pay and the restructuring of the monitary policy throughout the years to come. IMO, an RV is imminent with this restructure of the notes. Good luck to you. PEACE...

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Deleting/raising/lopping/removing the zeros is speaking of a redenomination......where as for every 1000 dinar you have, it will be equal to only 1 new dinar.....its the dark side of this investment....you basically move the decimal point over to the left 3 times for whichever bill you hold.....

In your opinion anyway. Some have different translations for it. Might be "lifting" the zeros meaning removing the large bills and replacing with the lower ones. We will have to wait and see.

Edited by Candinar
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The only problem I see with the theory of nobody getting a return on this investment is that if we can't get a return on it, all the governments can't either. They are supposedly holding the same dinar we are as an investment, and I can't imagine the US, Germany, China, Japan, and all the other countries invested in Iraq would just simply go with their 'deleting of three zeros' only so everyone is left where we were before trillions of dollars was pumped into that country. I mean this is the age of governmental greed.... not one would freely give to Iraq without expecting some huge return! Just my thoughts on it......

Well just like you said, they are "supposedly" holding dinar but nothing at all points to that being true.....its not like we as speculators couldnt get a return, its very possible that with a RD that they set the new exchange rate higher then a buck, and maybe being able to ride it out until it gets higher......for the most part, I dont think that govts participate in currency speculation....I know at least central banks of countries do not, which is what alot of people think that our UST holds massive amounts.....Do I think the US govt will find a way to recoup some funds from this war? YES!! Do I think its about the dinar? NO......Im thinkin more along the lines of oil but what do I know??

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Raising/lifting/deletion/removing of zeroes means the same thing. Central Banks dont announce they plan on rv'ing. Doesnt happen. Would they have another auction with 1170, if they justed announced a coming revaluation. I dont think so.

If they announced their rv'ing, would dinar dealers still be selling to you at current rates? Wouldnt they be hoarding inventory? I highly doubt this is "smoke and mirrors", they dont have to say anything at all.

I'd like to get back on the bus, but the info coming out is difficult to digest. JMO

Edited by truthful1
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This is always the most contraversial subject. Are they taking the larger notes off the market, lopping the zero's, or deleting the zero's off the currency rate?

That is the million dollar question, and for those that believe in the Lop, maybe they should just cut their losses now, and not have to hang out on these sites! I am not saying you should, but it seems to me that if all the optimissum is gone, why hang out and torture yourself?

From the time I have been on this site, and it is the only site I visit, there are very good arguments for all of the above. We all got involved in this for the opportunity to make a great amount of money, and until Iraq, CBI, Parliment, Shabbibi, Maliki, or whoever it is that has to make a decision, we should keep the same positive attitude we had when we first invested. Do not let the negativity slip into your mind, and cause you to say,or do something that you might regret later.

Watch, read, learn, and above all else stay grounded, and positive. This is still a lot better odds than you would get in the lotto. Keep in mind, that we are in this with other investors, like the US, Europe, China, Corporations, and millions of other people. We are all partners in this investment, and we should be supporting each other, and helping each other get through this crazy ride that Iraq is giving us.

We will get there, and when we do, we will look back at this, and shake our heads! Lets make this a great ride, and get ready for the RV!!!

Remember....United We Stand...Divided We Fall!! Stay United!!!

GO RV!!!

:P:P:P

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In your opinion anyway. Some have different translations for it. Might be "lifting" the zeros meaning removing the large bills and replacing with the lower ones. We will have to wait and see.

In times of inflation, the same number of monetary units have continually decreasing purchasing power. In other words, prices of products and services must be expressed in higher numbers. If these numbers become excessively large, they can impede daily transactions because of the risk and inconvenience of carrying stacks of bills, or the strain on systems, e.g. automatic teller machines (ATMs), or because human psychology does not handle large numbers well. The authorities may alleviate this problem by redenomination: a new unit replaces the old unit with a fixed number of old units being converted to 1 new unit. If inflation is the reason for redenomination, this ratio is much larger than 1, usually a positive integral power of 10 like 100, 1000 or 1 million, and the procedure can be referred to as "cutting zeroes".[2]

If they just remove the large bills and replace them 1 for 1 with smaller denoms as in the instance of a straight up RV, it doesnt take care of the inflated money supply.....you still end up with 24 or so trillion dinar in physical currency in which they cannot back up with any substantial rise in value....they MUST do something with the inflated money supply....it has to be dealt with somehow. And even the normal fractional banking theory that people throw out wouldnt work in their case....the CBI does follow Sharia....the state banks follow Sharia (cant speak for the private banks) but regardless, its the CBI's reserves that back up the money supply....Now it is possible these frozen assets that are to be released here very soon, that a portion COULD be added to the reserves (nothing concrete about that but its possible) so they might have some room to grow but something still has to be done about the amount in circulation.....

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This is always the most contraversial subject. Are they taking the larger notes off the market, lopping the zero's, or deleting the zero's off the currency rate?

That is the million dollar question, and for those that believe in the Lop, maybe they should just cut their losses now, and not have to hang out on these sites! I am not saying you should, but it seems to me that if all the optimissum is gone, why hang out and torture yourself?From the time I have been on this site, and it is the only site I visit, there are very good arguments for all of the above. We all got involved in this for the opportunity to make a great amount of money, and until Iraq, CBI, Parliment, Shabbibi, Maliki, or whoever it is that has to make a decision, we should keep the same positive attitude we had when we first invested. Do not let the negativity slip into your mind, and cause you to do something that you might regret later.

Why should differing opinions be vanished from whatever subject your reading. I think maybe you shouldnt post that others should stop, or queston themselves for posting. If you dont like the subject of redenomination, how about not reading them. We all can contribute. If we dont like what others say, cant we either debate or be able to agree to disagree. Freedom of speech, we should all be thankful and respectful of that right.

Watch, read, learn, and above all else stay grounded, and positive. This is still a lot better odds than you would get in the lotto. Keep in mind, that we are in this with other investors, like the US, Europe, China, Corporations, and millions of other people. We are all partners in this investment, and we should be supporting each other, and helping each other get through this crazy ride that Iraq is giving us.

We will get there, and when we do, we will look back at this, and shake our heads! Lets make this a great ride, and get ready for the RV!!!

Remember....United We Stand...Divided We Fall!! Stay United!!!

I love this quote. It just doesnt apply here. The outcome is already determined whether we all like it or not. But, I like your comroderie.

GO RV!!!

:P:P:P

Freedom of Speech is a very special right we have. Let's not shut out other's opinions just because there different from ours.

Edited by truthful1
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Freedom of Speech is a very special right we have. Let's not shut out other's opinions just because there different from ours.

I agree with you, but......when someone insists that the ONLY possible outcome of this is an RD it makes me angry that they are still on this site. :angry: I mean really? Why are they still holding on to their dinar if they are so sure of it? Now for the ones that say it could go either way, I can understand why they are still here. Just my :twocents:

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The only problem I see with the theory of nobody getting a return on this investment is that if we can't get a return on it, all the governments can't either. They are supposedly holding the same dinar we are as an investment, and I can't imagine the US, Germany, China, Japan, and all the other countries invested in Iraq would just simply go with their 'deleting of three zeros' only so everyone is left where we were before trillions of dollars was pumped into that country. I mean this is the age of governmental greed.... not one would freely give to Iraq without expecting some huge return! Just my thoughts on it......

I think you nailed it with supposedly.

Imo, if this were to happen, it has to happen all around and the other notes would feel the effect also. There would be no way that Iraq could pay their debt this centufy. On the other side of the spectrum, raising the value of the Dinar can be done by retiring the higher notes and applying the value to the lower notes and then setting a fix rate backed up by the tangeable oil resources, new signed conlomerate bussiness contracts, futures, etc. Now, this would make the debt possible to pay and the restructuring of the monitary policy throughout the years to come. IMO, an RV is imminent with this restructure of the notes. Good luck to you. PEACE...

There is no way the US can pay it's debt this century either. Their debt is tiny anyway compared to the debt an overnight RV to any significant number would put them in.

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Deleting/raising/lopping/removing the zeros is speaking of a redenomination......where as for every 1000 dinar you have, it will be equal to only 1 new dinar.....its the dark side of this investment....you basically move the decimal point over to the left 3 times for whichever bill you hold.....

This is my take on it....This currency is already printed. I don't believe that the FACE value on the Dinar is going to change in any way. I belive that it is the ACTUAL VALUE of the Dinar that they are talking about changing. Not fthe face value.

In math and accounting you can't go around just randomly removing zeros. Just as you can't reprint millions of Dinar to remove zeros, or render them useless. That is not how you increase or decrease a number.

This is the way that the actual Dinar VALUE is posted; 1 Iraqi Dinar (IQD) value equal to US Dollar (USD) 0.0006803, so when they talk about Lopping, or raising zeros I believe that it is similar to what Keep said, but I think that they will raise or lift 3 zeros from the actual current VALUE of the currency by moving the decimal 3 points to the right, which would make it 1 Iraqi Dinar (IQD) value equal to the US Dollar (USD) 0.6803, which would increase the value of the Dinar close the the value of the USD.

Just an opiinion.

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This is my take on it....This currency is already printed. I don't believe that the FACE value on the Dinar is going to change in any way. I belive that it is the ACTUAL VALUE of the Dinar that they are talking about changing. Not fthe face value.

In math and accounting you can't go around just randomly removing zeros. Just as you can't reprint millions of Dinar to remove zeros, or render them useless. That is not how you increase or decrease a number.

This is the way that the actual Dinar VALUE is posted; 1 Iraqi Dinar (IQD) value equal to US Dollar (USD) 0.0006803, so when they talk about Lopping, or raising zeros I believe that it is similar to what Keep said, but I think that they will raise or lift 3 zeros from the actual current VALUE of the currency by moving the decimal 3 points to the right, which would make it 1 Iraqi Dinar (IQD) value equal to the US Dollar (USD) 0.6803, which would increase the value of the Dinar close the the value of the USD.

Just an opiinion.

I think your interpretation sounds great! Don't know what will happen but your idea of 1 to 1 would sure be nice!

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This is my take on it....This currency is already printed. I don't believe that the FACE value on the Dinar is going to change in any way. I belive that it is the ACTUAL VALUE of the Dinar that they are talking about changing. Not fthe face value.

In math and accounting you can't go around just randomly removing zeros. Just as you can't reprint millions of Dinar to remove zeros, or render them useless. That is not how you increase or decrease a number.

This is the way that the actual Dinar VALUE is posted; 1 Iraqi Dinar (IQD) value equal to US Dollar (USD) 0.0006803, so when they talk about Lopping, or raising zeros I believe that it is similar to what Keep said, but I think that they will raise or lift 3 zeros from the actual current VALUE of the currency by moving the decimal 3 points to the right, which would make it 1 Iraqi Dinar (IQD) value equal to the US Dollar (USD) 0.6803, which would increase the value of the Dinar close the the value of the USD.

Just an opiinion.

True. They will move the decimal 3 places to the right on the value and 3 places to the left on the currency. It's basically dividing by 1000. If they were only moving the decimal on the value they would not be saying redenomination over and over. That would be a revaluation. I think they have made it pretty clear what they are talking about.

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True. They will move the decimal 3 places to the right on the value and 3 places to the left on the currency. It's basically dividing by 1000. If they were only moving the decimal on the value they would not be saying redenomination over and over. That would be a revaluation. I think they have made it pretty clear what they are talking about.

Here is an example for you.

Additional - what is the meaning of Redenomination?

A recent example of redenomination is the introduction of the European euro. Likewise in 1985, Argentina moved from the peso argentine to the austral. An austral is worth 1,000 old pesos. With inflation, everyday purchases could cost hundreds of thousands of pesos. With the increase in prices, old currencies like the Argentinean peso would require hundreds of thousands of pesos for one purchase. In 1992, the current Argentina peso replaced the austral at a rate of 1 peso = 10,000 australes.

I am just taking examples from history

The Redenomination was the first step from the Osama currency by printing the new currency. Now they need to complete the revaluation. I am not positive, but I think that the Redom. comes before the Reval.

Like I said...Just my opinion.

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Lets not forget that the Iraqi dinar is backed by oil. there is an estimated 200-300 billion barrels of largely untapped oil under their feet. 200,000,000,000 Barrels @ 100 each thats 20 to 30 trillion dollars worth of oil. Recent science has discovered that oil wells refill over time, so there could be even more oil. Can they support 24 trillion dinar at 1 to 1? You bet! and thats just the oil, what about when their economy starts climbing on that? I think that is where you get the $3 rates. IMO

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Lets not forget that the Iraqi dinar is backed by oil. there is an estimated 200-300 billion barrels of largely untapped oil under their feet. 200,000,000,000 Barrels @ 100 each thats 20 to 30 trillion dollars worth of oil. Recent science has discovered that oil wells refill over time, so there could be even more oil. Can they support 24 trillion dinar at 1 to 1? You bet! and thats just the oil, what about when their economy starts climbing on that? I think that is where you get the $3 rates. IMO

'Derek2011',

I concur with your analysis; this is what I have been thinking all along!

Excellent post!!!

Thank you,

GG

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