A Great Explanation of why it will not LOP

[Gasketman]

Today, 11:15 AM

RESPONSE FROM MILLIONDAY ON THIS ARTICLE FROM CHAT

[millionday] A LOP IS A TOOL THAT IS USED TO DROP THREE ZEROS ECONOMICALLY FROM A COUNTRY`S INFLATION -

[millionday] THEREFORE — THE INFLATION HAS THREE ZEROS (MUST BE A 1000 OR ABOVE)

[millionday] SIT ON HANDS NOW

[millionday] THE CURRECNY HAS THREE ZEROS

[millionday] THE PRICES HAVE THREE ZEROS

[millionday] A LOP IS AN INFLATION TOOL

[millionday] THE INFLATION IN IRAQ IS 6.6% THERE IS NO POSSIBLE WAY FOR THEM TO LOP

[millionday] IF YOU DONT SIT ON YOUR HANDS — YOU ARE GOING TO MAKE ME UPSET

[millionday] THE LOP IS USED WHEN ALL THREE ECONOMIC INDICATORS ARE SHOWING THREE ZEROS [

millionday] THE INFLATION PERCENTAGE

[millionday] THE PRICES

[millionday] THE CURRENCY

[millionday] IN THIS CASE THEY ARE NOT LOPPING

[millionday] THE REASON THAT IT IS CONFUSING SOME — THEY REFUSE TO READ

[millionday] IF SOMEONE COMES IN HERE WITH THE COMMENT THAT IT IS GOING TO LOP — KNOW THAT THEY ARE HERE FOR ONE OF THREE REASONS [millionday] 1) THEY ARE LOST

[millionday] 2) THEY DONT READ AND HAVE NO KNOWLEDGE OF ECONOMIC TOOLS

[millionday] 3) THEY JUST DONT LIKE HAPPY PEOPLE

[millionday] THEY CALLED THE CURRENCY “THE THREE ZERO CURRENCY” WHEN THE CHANGE WAS MADE IN IRAQ

[millionday] THE CITIZENS ARE THE ONES THAT READ THEIR NEWS

[millionday] THEIR NEWS IS WRITTEN FOR THE CITIZENS JUST AS OURS IS — SO REMEMBER THAT WHEN WE ARE READING IT THEY ARE WRITING TO THEIR CITIZENS

[millionday] THE PRICES IN THEIR COUNTRY WILL REFLECT THE NEW CURRECNY

[millionday] IF YOU READ THEIR NEWS AS IF YOU WERE SITTING IN THEIR COUNTRY — IT MAKES ALOT MORE SENSE –

[millionday] THE REPORTS OUTSIDE OF THE COUNTRY ARE NOT CONTRADICTING — IT IS JUST MEANT FOR GLOBAL NEWS

[millionday] UNDERSTAND THE CONTEXT AND YOU WILL UNDERSTAND THE ARTICLE

[millionday] ALSO — REMEMBER THAT WHEN KUWAIT RVD — THE WORLD WAS TOLD FOR A WEEK THAT THEIR CURRECNY WAS USELESS AND WE DID NOT HAVE INTERNET ACCESS AS WIDESPREAD AS IT IS NOW — OR THE INVESTORS THAT WE HAVE NOW –

[millionday] DO NOT CONFUSE LOP WITH THE REVALUE OF THIS COUNTRY — REMEMBER WHAT WE HAVE SAID AT PD AND TRUST US

[millionday] 1) CURRENCY HAS THREE ZEROS

[millionday] 2) INFLATION HAS IT TOO (ABOVE 1000)

[millionday] 3) PRICES HAVE THREE ZEROS

[millionday] ALL AT ONCE

millionday] THANK YOU FOR YOUR RESPECT PLEASE RETURN TO YOUR REGULARLY SCHEDULED PROGRAMMING

LINK

[umbertino]

Beautiful and fantastic theory and I'd love it to be that way........ But in the end they'll do as they please...............Let's hope.

[inheritance]

Soon we will find out who is right... Lop no lop opinions are like **** everybody’s got one!

[taboo]

GREAT EXPLANATION OF WHY IT WILL LOP........................

BECAUSE THEY HAVE SAID OVER AND OVER THAT THEY ARE GOING TO REMOVE THE 3 ZEROS. IF THEY WERENT GOING TO LOP THEY WOULD SAY WE ARE GOING TO REVALUE THE CURRENCY.

HOW ABOUT A LITTLE COMMON SENSE?

[Zekiel]

Thanks for this topic. You are going to like this. Please enjoy.

There will not be any lop for a number of simple reasons.

First, understand what a lop is:

That is when a country deletes the existing currency and replaces it with an altogether new currency, that a trade in policy is implemented, that a designated number of old units is traded in and replaced by a designated number of new units, effectively replacing the old currency with a new currency.

A typical example of this would be as one example of many variations, depending on the actual policy.

Here is just one example of what that might look like:

You show up at a market and want to buy a product. There are 2 prices on that product. One price is $1000 units and the other is $1 for the same item.

The clerk tells you the old currency will be eventually replaced by the new currency, which he then turns into the bank who may or may not, for a limited time, perhaps in limited amounts, (like was the case with the Martial Plan, for example, or Also Argentina), exchange the old currency at 1 to 1 for a limited amount and time, (certain banks or workers in the country, as an example)..... 10 to 1 for a limited time and amount..... similar rules may apply that restrict this within the borders of the country and who may or may not exchange and what amounts are the restrictions is variable depending on the regime policies..... Then they may do a 100 to 1 trade in,similarly regulated for a period of time..... then eventually, the banks would exchange the old bank notes at a rate of 1000 to 1, until all remaining older bank notes are removed from circulation and replaced by the new currency.

That is one of many forms and variables of a LOP or Redenomination. A Redenomination is by definition, a form of a lop.

Iraq does not fit into any of the categories of any of the 80 some nations, who have lopped, in the last century.

Why?

Literally all of the countries who did variants of the Martial plan and other forms of redenomination or lops, had several common characteristics in their internal economies and political environment, that restricted them from being able to 'Revalue' the existing currency and simply remove the large denominations from circulation, by increasing the value and adding smaller denominations of the existing currency, such as is the 'Stated Project' with CBI and Iraq.

Each country who lopped had several characteristics, none of which apply, in the case of Iraq, as follows:

1. They had hyperinflation in the double digits or much greater at the time.

2. They had no internal ability in their economies and natural resources to cover the values of the existing currency, to support revaluation with the backing of the countries natural resources and productive capacity in the world market or internally.

3. Many of these countries had 'Closed Border Policies', which crippled their ability to external markets of an 'Open Border Policy' .

4. Each of the countries who did that, literally had no external demand, for their currency and left to their own.... their currencies would have devalued if allowed to float against all world currencies.... even if they were pegged to a stronger currency.... and would have had adverse effects on the currencies they were pegged to, unless continually devaluated.

As you can see..... none of the above are the case with Iraq or CBI.

If IQD were to be allowed to 'Free Float'.... it has an advantage that literally none of the 80 plus countries who lopped had, namely this:

If IQD were to be allowed a 'Free Float', the increasing demand in the markets and the internal values would appreciate, as long as Iraq maintains, politically, an 'Open Border and Free Market Policy'.

That is unique to Iraq, even to a greater extent that it was with Kuwait. Literally no other countries have that capacity..... unless they are giving up their 'Closed Border Political and Economic Policies'..... such as could be the case , as with Iran, if they were to give up their Communist and Isolationist ways.

China is a good example of that, to a degree.

Here is the bottom line, with Iraq:

1. They have lower inflation rates than most any country on the planet, but a handful.

2. They have already surpassed China and are the 2nd fastest growing economy on Earth, second only to Mongolia. (Not sure why Mongolia, but that can be researched and proven to be true. Iraq was reported to be at an annual growth rate of 10.5 % which is higher than the projections released from GOI/MOPand CBI estimates and projections for the 5 year plan, from 2010 to 2014.

3. They are a fledgling democracy, with an 'Open Border economic and political environment.

4. Iraq has $15 Trillion worth of proven oil reserves, and estimates of upwards of $50+ Trillion worth of natural resources and non liquid wealth, in addition to a growing GDP and Reserves to support the currency base an PPP Incomes.

You could go on and on, with this.

Literally, Iraq does not fit into any of the categories of countries who lopped, only because it was their only alternatives.

Any economist will tell you, that a lop is not only costly, but is also only a temporary solution to a larger problem and in the end, will have no lasting value for the country .... except to buy them some time, while they repair other internal political and economic problems that caused hyperinflation, in the first place.

Iraq, has the ability and in fact is already well under way, in repairing those problems, that got them where they are.

NO LOP. Reducing the zeros simply means, they plan to let the large bills circulate back at 1 to 1 with the new low denominations.... and eventually retire the large denominations.

Thanks again for the topic and discussion. Plenty of links and documentation has already been provided here, to support this. Glad to back it up..... if anyone really wants to take up this discussion.

Regards,

Zekiel

[cooked]

Z I hope you have it right, it looks good to me.

[Networth]

How delusional can people be? THEY'VE SAID, REPEATEDLY, THEY ARE GOING TO LOP! This isn't the first time. Call it a redenomination with a corresponding revaluation if you want but, for all intents and purposes, it is a lop! I know that not what people want to hear but you won't change the outcome by denying it. Those that refuse to acknowledge what the CBI have said are simply delusional. The only reason not to believe them is if you think they are lying. I see no purpose in lying so many times about their intentions. People can spin it all they want but they are simply exhibiting cognitive dissonance.

[Upgradable]

GREAT EXPLANATION OF WHY IT WILL LOP........................

BECAUSE THEY HAVE SAID OVER AND OVER THAT THEY ARE GOING TO REMOVE THE 3 ZEROS. IF THEY WERENT GOING TO LOP THEY WOULD SAY WE ARE GOING TO REVALUE THE CURRENCY.

HOW ABOUT A LITTLE COMMON SENSE?

Do you speak Arabic? Kurdish? Are you relying on Google Translate for for the terms "remove the 3 zeros" or "redenominate"? Specific words often do not have a precise equivalent in other languages. I am leary to specifically rely on wording in a translated document. Just sayin'.......

[Zekiel]

Do you speak Arabic? Kurdish? Are you relying on Google Translate for for the terms "remove the 3 zeros" or "redenominate"? Specific words often do not have a precise equivalent in other languages. I am leary to specifically rely on wording in a translated document. Just sayin'.......

Touchet!

Networth...... wanna sell your Deeners?

Show me some credible documentation that this is not a 'Classifed' event. I will show you 2 that proves it is.

[Zekiel]

How delusional can people be? THEY'VE SAID, REPEATEDLY, THEY ARE GOING TO LOP! This isn't the first time. Call it a redenomination with a corresponding revaluation if you want but, for all intents and purposes, it is a lop! I know that not what people want to hear but you won't change the outcome by denying it. Those that refuse to acknowledge what the CBI have said are simply delusional. The only reason not to believe them is if you think they are lying. I see no purpose in lying so many times about their intentions. People can spin it all they want but they are simply exhibiting cognitive dissonance.

Removal of Zeros articles have nothing to do with any such thing, but the simple removal of the LDs from circulation, just as the US $500 - $10,000 s were under both Nixon and Reagan.

Case and point..... how long did that take? Nixon was in office 10 years and Carter for 4 , before Reagan was for 8. That was a span of 20 years..... the war on drugs being the reason.

Similarly, Iraq stated the last few months, the large denominations will be removed as part of a gradual and 'Long Term Project'..... and it appears they are telling us now, the largest of the new issue, (which BTW) are still Iraq Dinars and not a different currency... but only an issue of a new series of denominations of the Iraq National Currency, which is Iraq Dinar.

If that were not so, then the symbol would change on trading..... Looks like the highest value will be approximately $100, of what will remain in circulation. IQD will not change.

All 'Removal of Zeros means is that they will gradually 'Retire' the 25 k series, just as was done in the US.

The precedence here, is the US and Kuwait.

If you are not convinced..... I know people who will buy your Dinars, for the same or better than is being offered by the traders and dealers.

[keepmwlknfny]

Sounds like someone needs to hit the books a bit more.....I'm not saying they are definately lopping or redenominating although its possible, whoever this person is chatting is severely misinformed about redenominations, why they happen, how they happen, and reasons for it.....its NOT all about hyperinflation.....

[auto2nr1]

i hope millionday is right.

[Jack Dinauer]

GREAT EXPLANATION OF WHY IT WILL LOP........................

BECAUSE THEY HAVE SAID OVER AND OVER THAT THEY ARE GOING TO REMOVE THE 3 ZEROS. IF THEY WERENT GOING TO LOP THEY WOULD SAY WE ARE GOING TO REVALUE THE CURRENCY.

HOW ABOUT A LITTLE COMMON SENSE?

Perhaps you should follow the advice you speak. They would not say they will revalue the currency because they would end up with people lined up buying left and right. They are probably already upset about the amount in circulation; their intent is to not try and push more. This would be like owning stock; you think they would come out and tell you it is going to split? For all we know, removing 3 zeros is removing the 3 zero notes from circulation. You can read into it all you want, but they have not directly said RV or RD. All that has ever been spoken is an increase in exchange rate. That does not speak RD or RV, so feel free to draw your own conclusions.

[coldwarvet]

Upgradeable's post is right on. We've had to rely on Google translations of articles quoting people named "Palm" and "Watermelon," among other nonsensical translations. How accurate do you really think these translations are?

Plus, like any other language, Arabic is full of idioms that those of us who don't speak the language have no idea what is meant.

I'm sorry, but unless you're an Arab language speaker, or know someone who is, and can provide authoritative translations of these many articles, you're just like the rest of us, trying to play the game of "Dinar Clue," and hoping it was Mister Mustard, in the den, with the Golden Candlestick, er, Dinar. Just sayin'.

[dee62]

Do u people think first of all Adam would have gone to all of the trouble putting things together if it was truly a LOP? Also do you really think they r going to screw the US and the other countries that hold there Dinar? Also remember who put this together I don't believe they are going to walk away losing on a plan that they have been nurturing for a long time to only walk with no gain for their trouble? Use some common sense their is a bigger picture and everything doesn't evolve around our small amount of Dinar.

[BlueJeanBaby]

How delusional can people be? THEY'VE SAID, REPEATEDLY, THEY ARE GOING TO LOP! This isn't the first time. Call it a redenomination with a corresponding revaluation if you want but, for all intents and purposes, it is a lop! I know that not what people want to hear but you won't change the outcome by denying it. Those that refuse to acknowledge what the CBI have said are simply delusional. The only reason not to believe them is if you think they are lying. I see no purpose in lying so many times about their intentions. People can spin it all they want but they are simply exhibiting cognitive dissonance.

They have said repeatedly that they are removing the currency with three zeroes, and replacing it with lower denoms.

It's not delusion - it's called "Lost In Translation."

The people who translate these articles and post them don't speak English as their first language. If you have read any of their other articles, I'm sure that you will notice that there are numerous little changes in the way they present what they say, and that's because they speak ARABIC - not English, so when they say they're deleting the three zeroes, they mean that they're replacing the currency with the three zeroes with the new currency.

Why do you have to get personal and call anyone who thinks differently from you delusional and use big words that amount to calling us stupid? Why can't we just agree to disagree and wait to see what happens? I don't think you're delusional or stupid ... I just think you're wrong.

GO RV !!

[keepmwlknfny]

They have said repeatedly that they are removing the currency with three zeroes, and replacing it with lower denoms.

It's not delusion - it's called "Lost In Translation."

The people who translate these articles and post them don't speak English as their first language. If you have read any of their other articles, I'm sure that you will notice that there are numerous little changes in the way they present what they say, and that's because they speak ARABIC - not English, so when they say they're deleting the three zeroes, they mean that they're replacing the currency with the three zeroes with the new currency.

Why do you have to get personal and call anyone who thinks differently from you delusional and use big words that amount to calling us stupid? Why can't we just agree to disagree and wait to see what happens? I don't think you're delusional or stupid ... I just think you're wrong.

GO RV !!

How can it be considered lost in translation when they describe a redenomination to the "T"??? And a few of the titles of the articles actually say something along the lines of "Iraqs plans of redenomination".....

Do u people think first of all Adam would have gone to all of the trouble putting things together if it was truly a LOP? Also do you really think they r going to screw the US and the other countries that hold there Dinar? Also remember who put this together I don't believe they are going to walk away losing on a plan that they have been nurturing for a long time to only walk with no gain for their trouble? Use some common sense their is a bigger picture and everything doesn't evolve around our small amount of Dinar.

Adam just like the rest of us, doesnt know whats going to happen......there was no way to predict the outcome of this investment but you should have been aware of all the possibilities before buying....please understand a redenomination does not screw anyone....its a neutral change in value.....no one loses anything....

[weneedrv]

what about having two currencies co-exist? that is totally possible as keep explained in another post and if they have another currency or another set of bills floating around, than that is not technically considered a lop. you have to be open to any and all possible outcomes of this. it could lop, it could not.the chat log posted above is just one persons opinion. my friend (who is well invested) follows this investment all the time with reading and research and he believes it will not lop. he says it just cant. well, anything can happen. iraq could just keep the currency at 1170 forever. just because shabs or saleh says remove 000's, redenomination, revalue, raise the zeros it doesnt mean jack ***t. i dont want it to lop but it could happen. iraq holds all the cards here because they have OIL!

Edited June 25, 2011 by weneedrv