Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Recommended Posts

Drox It seems you could be right on the money with your projection and analysis.....very well written.

I do agree with your 100,000 note based on some of the articles and it would seem to ease the burden on some transactions.

Thanks so much for the great post.

Link to comment
Share on other sites

IMOP YOU HIT THE NAIL ON THE HEAD ----I HAVE BEEN SAYING THIS ALL ALONG----THE KEY TO THE RV IS THE ----HCL LAW-----I HOPE I AM WRONG BUT EVEN THE US TREASURY SENT ME AN EMAIL BACK IN FEB----STATING THE KEY TO IRAQ ECONOMY IS THE PASSING OF THE HCL LAW------IM SYICKING WITH IT----NO HCL LAW PASSED----NO RV YET-----ITS JUST MY OP

Edited by HYDRANT
  • Upvote 1
Link to comment
Share on other sites

Drox for Prez..

My new hero.

All Shabibi has to do is stay alive and keep his dog obedient .

I suggest a Choker Chain and frequent orientation maneuvers.

The only one who doesn't realize Maliki is a tool, is Maliki.

Shabibi has been taking Saleh out for more walks lately.

  • Upvote 1
Link to comment
Share on other sites

Drox, a thought provoking read. Some of what you say has merit and the article does support your remarks to some degree. Regardless we still have to remain in 'wait and see mode', don't you think? Although, I admit that it would be a wonderful boon to have the ability to be certain of a well formulated answer to this entire situation regarding how this will be done.

Thank you for sharing ideas with us.

God Bless America!:)

Edited by Jac
Link to comment
Share on other sites

Jac good to see you............

drox...........This was answer three. RV, Lop, or Make this currency tradable without increasing the value. The value would be increased as it became exactly more valuable. The 100000 dinar note says that loud and clear. I'll have to say I really never gave long thought to this scenerio but it would seem I had better give this and your excellent post some serious consideration...............In fact I didn't want the answer behind door no.3 or shall I say Plan B because it will cause us all to have to spend more time instead of RV money.........IMO.

Thanks drox my friend and I eagerly await your next post.................. Automag

Edited by automag
  • Upvote 1
Link to comment
Share on other sites

Wow Drox....you were right...it's long!....just kidding...very interesting take on it and it would certainly be an option. If your plan B does happen they would still need to find a way to reduce the money supply in order for it to continue to grow in value...but I hope you are right. The idea of it costing a lot less to introduce one bill instead of all new currency it one of the most compelling I have heard. Nice job!

  • Upvote 2
  • Downvote 2
Link to comment
Share on other sites

I hate how much this perspective makes sense! :angry::angry::angry:

Just kidding. :lol: You know, it's been at least three months since we heard Shabs or Saleh saying they were NOT going to issue a $100k bill. I vividly remember Shabs assuring this in December particularly.

These guys are the kings of the misdirect. Well, I guess we won't be buying our beach condo THIS July 4! <_<

Link to comment
Share on other sites

Hi drox :D

So very well done my friend!

I just now saw this and when I read about the 100,000 IQD note,

I must say last night when I had re-read the article

several times, it finally hit me that it was *possible*

Saleh was talking about the equivalent of 100$ USD

or as you translated "compete with", I finally thought to myself

I wonder if they are talking about issuing a 100,000 IQD note?

You have confirmed what I thought I read :lol: Both you and TJ

mentioned this is what you were seeing in this article. I have to agree,

and also in the past they have clearly stated or at least mentioned

a 100,000 IQD note. You may be on to something here my friend

and although I have said for some time now that at this time, Iraq

is simply NOT ready yet, THIS could unfold to be something, over time

of course, that is actually conceivable AND *could* offer a very real scenario

and yes, a lucrative one at that...the very thing we all hope for at some point

when Iraq is ready.

I will review this more, but the moment you mentioned the 100,000 IQD note

that is exactly what I thought it was saying last night, but we all know how these

articles can be, but I have to say let us ALL hope that just maybe...Dr. Shabibi

may have this up his sleeve, and I must say it is a very real scenario.

This is a scenario that I can admit could work and work well FOR the Iraqi people

AND those who have speculated in the IQD. Isn't that what we should also be hoping

and praying for, that the Iraqi citizen could actually be a part of something that finally

and truly benefits them also? We too often make this into a very self centered speculation,

but I want ALL involved to benefit as I believe most here also do.

Thank you drox, sincerely my friend. The time and the effort is so very much appreciated

and I must say, why would DV need one single rumor, 'guru', lie or fabrication when

we have some of the best minds and well researched HONEST folks right here with us?

Have a peaceful weekend my friend, and thank you again for an excellent presentation which

includes NO hype. Well thought out and actually conceivable. :D

All my best!

Jim

---

Edited by Jim1cor13
  • Upvote 3
Link to comment
Share on other sites

Well i guess i will be the one to disagree with the thought on a 100.000 note. It will not make business or general commerce easier.Time is simply something Iraq dose not have.I believe they will RV soon as the need for a powerful currency is far to great.I believe we as speculators are a drop in the bucket to Iraq.Many nations i believe are relying on this to help reset the global market.If not then Iraq will loose GDP at a much greater cost then the RV.Of course this is my opinion but i got to believe that in the end IRAQ will not hurt the very people that gave them their country and freedom back.Lets face it folks,without the US Forces they would not be making any decisions except which cheek to kiss on Saddam's hind part.

  • Upvote 2
Link to comment
Share on other sites

Thanks for the great responses to you all. I have tried over the last year to see this investment from all sides. I went from International trading market price guy to $1 RV guy to LOP looks plausible guy. It was important that I understood all positions to see what is possible. I still don't know but I have a strong hunch of how this is going down. Especially now that I see all of the players and their roles and their tendencies.

If any of you get a chance please review this thread from last December 2010. It had some great dialogue with folks and intertwines nicely with the articles lately.

http://dinarvets.com...ass-100-dinars/

The Iraqi Central Bank Advisor Madhur M'Hamed benefit the work of Iraq needs expansion we will release his class 100,000 dinars.

He told a reporter (information/news and) Central Bank examines the idea of currency restructuring where specifications and forms that will work on a new categories of currency have the ability to shorten the large quantities of funds, pointing out that deal in used $ 100 constant is the largest directory on the urgent need to work on this scale.

Mbinna that lifting zeros need time and formal approval of the Government and Parliament explained that the current time is mohia for deleting zeros from currency.

Edited by drox
  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

What an interesting perspective! It definitely is thought-provoking and worth serious consideration. Thanks Drox for sharing it. :tiphat:

Automag's reply echoes my feelings:

.This was answer three. RV, Lop, or Make this currency tradable without increasing the value. The value would be increased as it became exactly more valuable. The 100000 dinar note says that loud and clear. I'll have to say I really never gave long thought to this scenerio but it would seem I had better give this and your excellent post some serious consideration...............

The one thing I've always thought about this investment is that there could be some type of 'twist' at the end that would play out that wasn't widely thought of or spoken of by the 'gurus' - not a straight-up RV and not a LOP, but then when it occurred we would all go "Wow, didn't see that coming, but it makes sense." If your perspective about the 100,000 note proves to be correct that would be a definite twist in my opinion.

As it becomes internationally traded, the dinar will rise in value at which point the larger bills will not be used as much on the Iraqi street and naturally be drawn back in. It also prevents any one group (whether inside or outside of Iraq) from getting an unfair benefit.

My question is under this scenario what is to prevent investors on the Forex from buying up Iraq for pennies on the dollar while this 'rise' takes place? Do you see it being a managed float over time? It seems like it would be really difficult to control the value once it's freely traded without some type of float.

I'm looking forward to your follow up post.

Link to comment
Share on other sites

I wrote this 2 days ago when the article below 1st came out. Before everything went to Heck and a Hand Grenade. It may no longer be valid but a couple of my friends told me to post it anyway. Its long but I think worth the read. Take care…drox.

Friends...

Have any of you considered this article below may mean something entirely different? I have said to watch for the articles containing 100,000 Dinar notes amongst the numerous 3 zero ones, for nearly a year. You see, Saleh likes to mix in the 3 zero articles in bunches and sends us all in a tizzy whenever he does, right? Saleh is the front man for the CBI. His job is to orchestrate the greatest marketing medium known to mankind on behalf of the CBI. No, no…not Multiple Level Marketing you Rudy fans. GOSSIP! Nothing travels at such velocity as gossip. That’s why his articles always start off with “the appearance of…”. He makes each article and event!

You see, I believe they methodically use the 3 zero lop articles to set up the GOI and particularly Maliki into believing that a redenomination is what they (the CBI) want. Propositionally, I think they want something else. Plan B. By law, the CBI must present their proposal to the Council of Ministers and Parliament even though they are an independent and transparent body. It is my belief that the (CBI) wants to act disappointed that the GOI will refuse a redenomination and will choose a pre-conceived Plan B instead. AKA…the 2nd option. Could it be what Shabs wanted all along? A mis-direction? You see... they know Maliki is a greedy, conniving, control hungry, manipulating scoundrel that wants to keep his people poor, in fear, and needy so that he can be the dictator he dreams of being. The dictator handbook for dishonorable and wayward souls 1st chapter states: People follow power when they are most desperate.

Shabs knows that Maliki wanted to take the CBI foreign currency reserves to pay for the budget deficits and some other costs. Maliki announced this publicly and Shabs said absolutely not to the Parliament and really to the world. He said the CBI is a transparent and independent body from the GOI. He said that if you need the money so bad then the GOI could effectively borrow from the private reserve accounts at the private banks. But Maliki wanted no part of that. He wanted to take money not borrow money. He wanted to put the currency even further behind the 8ball. Why would anyone want to do that if they intended to RV a currency? That would take away the vital support mechanism that props the currency up in the first place. The answer is Maliki has ZERO intentions of bringing wealth to his countrymen. Why else has he kept them in the dark (literally)? This is important. I have noticed numerous things Shabs does to get what he wants fully knowing how the BS politics will play themselves out. In some ways, Shabs runs the country through these end-around decisions. Maliki ends up being the dog on the leash. He thinks he has all the power out front but really Shabs is tugging on the leash showing him where to go.

Part of my theory is that the best thing Iraq could do would be to NOT lop/RD even though that would probably make the most sense on the surface to the CBI. It would be the easiest fix to get rid of the ridiculous money supply and would make the currency credible and would ease the use of cash transactions. Problem is... I believe it limits their future currency exchange growth potential. Here's why: If it lops, it might someday grow to $3. Big whoop in the long haul, a 3times increase. Certainly helpful to Iraqi's and we could make a nice little 300% profit. But then what? As Iraq develops into the major economy of the Middle East and "The Hub", does the future exchange rate keep growing to $10, $20, etc over the years? Not likely... IMO.

So... that leaves them with the problem right now of way too much money supply and a minuscule exchange rate that lacks POP. 1170iqd to $1 doesn't exactly scream out "Look at us World we are players now" does it? So...let’s find another way. If you haven't guessed, I do not believe that the "Ghost fils" exist at all. Ghost fils are the lower denominations rumored in existence. I also think that the notion of removing 3 zeros from the notes is a kind of a silly notion without a re-denomination attached to it. That is something gurus manifested to cover past erroneous predictions and to make sense of the barrage of 3 zero re-denomination articles over the years. It got carried forward to present day and has been repeated sooo much and sooo often that it is believed as truth. (Notice my so's had 3 zeros?) If you believe it... frankly I don't blame you. It is the only way to make sense of the crazy RV numbers people have led you to believe. I mean no disrespect to you by saying that, you may be right and we certainly all hope you are! I simply ask you to remove yourself from that mindset for a minute and consider a new possibility or paradigm.

I believe this article below is saying they are considering the 100,000 notes. They are offering up an "off the cuff" plan B scenario for Maliki and the GOI so they have 2 options to present in front of them. Either Re-denomination or maintain the existing currency but add a 100,000 note to it to assist in day to day cash transactions. The GOI is in a budget cash crunch. Creating a whole new currency would be very expensive and confusing when the people are already poor and confused. They would have to develop a whole new currency with the Kurdish language on it as the constitution mandates. If they introduce the 100,000 notes, that will effectively tell us that they will not LOP and will kick that can down the road. That is what we all want right? No lop and the ability for the currency to go up. This will buy time for Maliki to eventually get booted out because of his obstruction and so that the GOI can finally kick start this economy and get some things done. Shabs has done his part. He has the banking industry improving daily. He has kept inflation down and is getting the banks to lend money. He is working on the money supply problem by increasing private bank reserves amongst other things. He has built up the CBI reserves magically.

So…Plan B is the introduction of the 100,000 iqd notes. It would cancel or postpone a redenomination. It would ease cash transactions in the marketplace by helping the Iraqi carry less cash. It would be cheaper to introduce 1 denomination then all of them. It will buy the CBI time to find a way to decrease the money supply substantially. It will buy the GOI time to pass laws, improve security and infrastructure, and most importantly promote employment through a massive job creation focus. It will buy time to address corruption. All of these things are necessary for a more stable environment to support a significant increase to the exchange rate. All of the citizens must be able to participate in a RV and not just the top 1/3rd ot the population. Otherwise it will fail.

Thus, I am not saying RV crazy anytime soon. I am laying out a road map that in time will allow this investment to move up considerably. The situation in Iraq must be able to support an RV. Important steps need to fall into place. My hope is they intend to get near the Saudi's. I believe that the HCL has everything to do with the release of a true RV. It is vital. The political sectarian divide isn't working. If you create a dividend system in Iraq for lets say 25% of the oil revenue. It will be distributed to regional and local governments and onto each citizen. This provides power to the people and a sense of ownership. It takes the enticement of power right out of the politician’s hands. This is the only way Iraq will have a government that works democratically in my opinion. A peaceful Iraq is an economic force to be reckoned with. When the people have a share in the wealth then those people will insure its success and growth. They will shun the detractor/corrupters because they have a vested share now. This will provide a huge credibility to Iraq internationally. The exchange rate will inevitably go up as foreign investment and foreign currencies pile into the country. In time I think the GCC will beg for Iraq to be a member and could be the nugget Shabs is looking at. That would save the expense of a redenomination wouldn’t it? In the meantime, Iraq and Saudi Arabia will become friendly competitors trying to best one another. Your investment in Dinar could turn into a true lucrative opportunity. Below is my take on the CBI restructuring of currency article. I edited it with strike throughs and my interpretation of my bridge words in parenthesis in red.

Feel free to respectfully crush my theory now! In the meantime I will work on another post as to the why and how it needs to be this way. Be well. (drox)

The Central Bank of Iraq, Wednesday, that he decided to restructure the local currency in order to develop(assist) the payment system in the country.

The appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the Central Bank of Iraq has decided to start implementing a strategic and long-term specializes (plan) in the restructuring of the local currency for the development (assistance) of the payments system in Iraq."

He added that "the central bank will raise the level of the local currency and the development of new currencies up approach to (to compete with) U.S. $ 100 ( Remember: $100 = 100,000iqd notes roughly), which would address the economic gap in the system of financial payments in the country."

He continued that "the project to (of) restructuring of the local currency, which started gradually need(s) to (the) support (of) the government and parliament (so)that it will hold purchasing power compared Palmdjulat (to other) economy(ies)."

He expressed (to) the IMF in August / August, his support of the Iraqi economy in the event of having a number of economic measures including the privatization of banks and raise three zeroes from the currency local and honoring debt and compensation is the responsibility of Iraq.

The Iraqi government has denied conducting any change (to) in the local currency this year to reduce inflation.

The local currency of Iraq has passed in the history of change(d)s to several (times), most recently in 2004 when the former Governing Council replace currency of the previous symbol of the former regime.

The main tasks of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies, and management of reserves of foreign currency, and the issuance of currency management, as well as the organization of the banking sector.

Thanks for the great responses to you all. I have tried over the last year to see this investment from all sides. I went from International trading market price guy to $1 RV guy to LOP looks plausible guy. It was important that I understood all positions to see what is possible. I still don't know but I have a strong hunch of how this is going down. Especially now that I see all of the players and their roles and their tendencies.

If any of you get a chance please review this thread from last December 2010. It had some great dialogue with folks and intertwines nicely with the articles lately.

http://dinarvets.com...ass-100-dinars/

The Iraqi Central Bank Advisor Madhur M'Hamed benefit the work of Iraq needs expansion we will release his class 100,000 dinars.

He told a reporter (information/news and) Central Bank examines the idea of currency restructuring where specifications and forms that will work on a new categories of currency have the ability to shorten the large quantities of funds, pointing out that deal in used $ 100 constant is the largest directory on the urgent need to work on this scale.

Mbinna that lifting zeros need time and formal approval of the Government and Parliament explained that the current time is mohia for deleting zeros from currency.

Hey Drox, Great post as always, but I have to point out that you did say you wrote this a couple days ago, and things today really did add new fuel for a smoldering fire.

So I have to wonder, what your take is now on this same issues?

  • Upvote 2
Link to comment
Share on other sites

Well, I had decided that I wasn't going to post again, but Drox's analysis is definitely worthy of consideration and comment. I have to admit, when I first saw mention of the 100k note months ago, it made sense to me. It definitely didn't seem logical that the 25k note could be the largest IF there was no immediate plan to RV, and after 3 years of constant false claims of "imminent RV," it had become clear that this was total fabrication by the pumpers. The mere fact that the original election had been delayed by several months after 3-4 months of fighting over the election law, followed by another 9 months of insanity fighting over the election results made it painfully obvious that there was no hurry to RV. Had the RV been the solution to the world's economic problems as it has been presented by the gurus, this delay would never have been permitted to occur. Further, the fact that Maliki was permitted to manipulate the results to keep himself in power was another huge red flag. If this wasn't enough, it's now been yet ANOTHER 7 months, and the government is STILL not complete; the critical Erbil agreement has STILL not been implemented; and the HCL has obviously not been passed. It's well known that I've argued for the past couple of years that the gurus/pumpers/liars are totally f.o.s. and their records speak for themselves, if the Kool Aid drinkers would only take the time to read back through their readily available claims, rather than defend them and continuously bring their ridiculous posts to the forums assisting them in the sale of additional Dinars.

Instead, the rational posters like Drox and several others who are well known and shouldn't have to be named get repeatedly criticized for "perceived negativity." Many good people have left as a result, while the cheerleaders prosper. This post by Drox makes more sense than any I've seen recently. The interpretation of the gurus and dreamers have made very little sense to me. I feel that Shabibi is likely smart enough to realize what needs to be accomplished before any significant change can be made to the value of the Dinar, not the least of which is dealing with Maliki and the rampant corruption. The fact that we know with near certainty that there are 24-26 TRILLION Dinars in circulation (and now according to CBI, possibly as many as 29 trillion) makes the thought of a straight RV seem insane, even at a $1.00 rate, let alone $3 or more. There are WAY too many issues yet to be resolved. Given their history, revaluing in the next 6-10 days strikes me as HIGHLY unlikely, but I sincerely hope the cheerleaders are correct. Drox's theory doesn't answer all of the questions, but it certainly presents a very logical possibility. I still fear that eventually, a re-denomination followed by a revaluation would seem to be the only logical long-term solution to the huge supply of Dinars in circulation. At any rate, the next 4-10 days will be either very exciting, or once again, very disappointing. Meanwhile, as usual, we wait. Nice job as usual Drox. <_<

  • Upvote 5
Link to comment
Share on other sites

Hey Drox,

Great job on plan B. Obviously I have become pretty pessimistic lately so it is really a breath of fresh air to hear another possibility coming from someone with your credibility. Sounds like you have really thought this thing out. It just goes to show that it isn't over until it's over and I thankyou for your efforts and taking the time to figure out another way that we can all benefit from this investment.

Have to say that when I read that article the first thing that I thought was that they would release the new 100 note (with Kurdish langauge) first to help with large purchases. In other words the 100s would be made available right away while they transition during the RD but I also found it kind of strange. If they RD the 25,000 note would be their largest bill at 25 but what would stop them from introducing a 50 or 100. Now actually we know they have a 100 because they told us so. I remeber speculating in the past on if they would have one and also have wondered if they would have a 20 or 25. Anyway when I read the article I wondered why they were so specific about the 100 note and after your post I have to say that I hope you are right.

It is possible that it is simply a new lower denom but at the same time it is possible that your assumtion is correct and you have brought us a ray of hope.

In the end we wait and see but I wanted to thank you for a great post.

  • Upvote 1
Link to comment
Share on other sites

Hi drox :D

So very well done my friend!

I just now saw this and when I read about the 100,000 IQD note,

I must say last night when I had re-read the article

several times, it finally hit me that it was *possible*

Saleh was talking about the equivalent of 100$ USD

or as you translated "compete with", I finally thought to myself

I wonder if they are talking about issuing a 100,000 IQD note?

You have confirmed what I thought I read :lol: Both you and TJ

mentioned this is what you were seeing in this article. I have to agree,

and also in the past they have clearly stated or at least mentioned

a 100,000 IQD note. You may be on to something here my friend

and although I have said for some time now that at this time, Iraq

is simply NOT ready yet, THIS could unfold to be something, over time

of course, that is actually conceivable AND *could* offer a very real scenario

and yes, a lucrative one at that...the very thing we all hope for at some point

when Iraq is ready.

I will review this more, but the moment you mentioned the 100,000 IQD note

that is exactly what I thought it was saying last night, but we all know how these

articles can be, but I have to say let us ALL hope that just maybe...Dr. Shabibi

may have this up his sleeve, and I must say it is a very real scenario.

This is a scenario that I can admit could work and work well FOR the Iraqi people

AND those who have speculated in the IQD. Isn't that what we should also be hoping

and praying for, that the Iraqi citizen could actually be a part of something that finally

and truly benefits them also? We too often make this into a very self centered speculation,

but I want ALL involved to benefit as I believe most here also do.

Thank you drox, sincerely my friend. The time and the effort is so very much appreciated

and I must say, why would DV need one single rumor, 'guru', lie or fabrication when

we have some of the best minds and well researched HONEST folks right here with us?

Have a peaceful weekend my friend, and thank you again for an excellent presentation which

includes NO hype. Well thought out and actually conceivable. :D

All my best!

Jim

---

Good Job Drox. Your scenario is VERY probable, far more probable that a 3.00 RV without a LOP.

Jim well said as always

Link to comment
Share on other sites

This site is filled with many opinions...that is for sure. All are great in theory. It will go down the way it was intended on the timescale that makes the most sense for their country and the world (since everything is intertwined and they are locked up in Chapter 7 prison and have owed the IMF and other countries major cash and because many many countries have offered debt relief -for some strange reason. In other words IRAQ is on the hook to many countries and entities to get it done right and in the way they desire it.) Glad the plan is being executed by geniuses like Shabs is all i can say!

Link to comment
Share on other sites

Well Done Drox. I am glad you shared your thoughts and I agree with it 100%. Everyday I lean more towards the idea that nation building and the hammering out of the framework / infrastructure needed so one day the economy can prosper, for people to have more faith in their government, for businesses to run smoothly

There are a lot of moving pieces to this thing but I certainly have to agree with your assesment that if indeed they come out with a 100,000 bill that would stave off Redenomination.

Of course if I see a 100 denom instead then I will know its over...

But why say Redenomination is their long term plan? Like I've always asked, why not do it now if your serious? They could have Lop'd years ago. Maybe they like us buying their dinar?

Maybe they never had an intention to LOP?

Thanks for sharing Drox, you help me think things out. I appreciate that.

  • Upvote 2
Link to comment
Share on other sites

Drox

I am only part way through your long (you were right, it is long) post. I am making a comment now because if I don't I'll forget by the end what I wanted to say. I am getting old and the mind is almost the first thing to go. Forgive me.

So far your post is one of the best written articles, composed by a member not just scooped from a magazine or website, that I have seen here or on any other forum. congratulations ... you have a gift.

Next, you wrote ...[u] I also think that the notion of removing 3 zeros from the notes is a kind of a silly notion without a re-denomination attached to it.[/u] ... and if I am not mistaken, which I most likely am, they are saying they want to remove the zeros to make it easier to USE the money. I agree carrying around a brown bag full of notes to buy a loaf of bread is ridiculous. But if they only remove the zeros, and don't change what those zeros represent, would they not be actually making the situation worse? Oh boy, now that I see that in type I am thinking I should delete all this ... it sounds dumb. But really at the time it made sense to me. So I'll leave it and let you think what you will.

Back to your post ... I'll go finish reading it now. I don't usually manage to make it through the long ones. As the mind goes with age so goes the attention span. hahahahaha

You have done well my son ... be proud and enjoy knowing you have positively influenced the thinking of your friends and other members here ...

:)

smee2

  • Upvote 3
Link to comment
Share on other sites

First, it should be noted that the dreaded re-denomination (lop) is not wanted by anyone in Dinar World. However, the word in this particular possible scenario has an entirely different meaning/purpose than has been seen in the cases of countries experiencing hyperinflation. This particular re-denomination would have an entirely different purpose and end result. A big complaint with the Iraqi currency has always been the difficulty in "counting" it, due to the huge numbers involved. Once they pass a figure of one million Dinars (even less for some of their people) or the equivalent of roughly $850 U.S. Dollars, counting becomes a nightmare. Large purchases are difficult, and business owners, banks, etc. have problems with accounting. Even average calculators are unwieldy after reaching one million.

They wanted to bring their currency more on a par with the U.S. Dollar, "without" a huge change in overall value, and this was easily accomplished by removal of the "three zeros."

Obviously, by removing the three zeros from a 25,000 Dinar note and increasing the value of the Dinar by less than 20%, they achieve instant parity with the Dollar, making it 1:1. The same is true of the 10,000 Dinar note. In the long run, they would have to issue a new currency with smaller denominations. Issuing the 100,000 note as described in Drox's "Plan B" solves the immediate problem of making large purchases until the major changes can be made. It's a logical "possibility." Nobody knows what the actual plan is, but this one does make sense.

The cost of the last redesign of the Iraqi Dinar was a mere 150 million Dollars, INCLUDING the incredible costs of transportation and security. Think for a minute about how miniscule that seeming large amount is in comparison to the cost of a straight up RV in view of the fact that they currently have more than 24-26 TRILLION Dinars in circulation. Even WITHOUT looking at the Billions upon Billions of Dinars held in the U.S., the numbers in Iraq itself are huge. I have to laugh every time I see people say that they can't possibly issue a new currency, because it would simply be WAY too expensive. Even those who have difficulty with simple math can see that 150 million is pennies in comparison to the 24 - 60 TRILLION Dollar cost of a straight revaluation of $1-$5 Dollars which we've seen described all over these forums.

I sincerely hope it doesn't happen this way, but a re-denomination, followed by a revaluation to $1 - $3.60 or so simply makes a lot more sense when viewed realistically. Their currency would immediately have a value comparable to that of the U.S. and/or Kuwait. We as investors would either come close to breaking even (if our cost was no more than $1,000 per million) or would triple our investment if the RV to over $3.00 - not what we had hoped for, but certainly an excellent return, and MUCH better than average. We can only wait to see the ultimate result, but in any case, it would seem that given the current circumstances in Iraq, they really aren't ready for a major change. BUT, as the infamous Ennorste is so fond of saying: "I could be wrong." :unsure:

  • Upvote 5
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.