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Correct me if I'm wrong then. My understanding is that the US treasury will hold the Dinar turned in at US banks and it will be used "over time" to purchase oil from Iraq. Iraq shouldn't have to put out all that cash at once. It can be spread of the next 100 years or so. during that time the Dinar can increase in value based on the development in Iraq. To me it sounds like this can be done in a structured way. I personally believe that the RV would come in very low lets say .10 to .85 and you will be required to cash in within a 30 to 60 day window. After that all outstanding "000" bill will be void. Then Iraq could revalue if they wish to a higher value to better the lives of the Iraqi citizens. This is not proven in any way, just MHO.

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Its a little more detailed then that......I believe here they can lend out 10 for every 1 dollar they have.....and in another sense for every 10 printed they only need to back up 1 of those.....

Now lets move to Iraq...... they have 50 billion (confirmed) in reserves....which backs up the currency 100% right now......lets say for instance Iraq RVs at 1 dollar (just to keep it simple) that means they will need almost 6 trillion in reserves to back that value with a money supply of 59 trillion dinar.....

50 billion is a far cry from 6 trillion thats needed.......see where Im going with this?

Sure I understand. However if one believes the Dinar is currently worth 23 cents a piece, which I do; then it would be easy to see an RV take place that would range from 10 cents to 30 cents per Dinar. :D:D:D

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Correct me if I'm wrong then. My understanding is that the US treasury will hold the Dinar turned in at US banks and it will be used "over time" to purchase oil from Iraq. Iraq shouldn't have to put out all that cash at once. It can be spread of the next 100 years or so. during that time the Dinar can increase in value based on the development in Iraq. To me it sounds like this can be done in a structured way. I personally believe that the RV would come in very low lets say .10 to .85 and you will be required to cash in within a 30 to 60 day window. After that all outstanding "000" bill will be void. Then Iraq could revalue if they wish to a higher value to better the lives of the Iraqi citizens. This is not proven in any way, just MHO.

Its not all about who is paying out cash.....its about Iraq being able to back their currency at a higher value......which is why the fractional banking theory seems flawed at this point in time.....not to mention the US buying oil from Iraq with dinar is counterproductive to both nations......we hold everyone else at a standard for using USD for purchasing oil and it was partly a motive for us going to war with saddam so how would it look if all of a sudden we are using dinar to buy oil?

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lots of people throwing in the towel now discouraged that expected time frames were not realized.

As for me I am a contrarian. When the RV didn't happen by 6-30 as so many expected and declared, I went out and bought more yesterday. I am in all the way on this thing. All my chips are in this hand.

I have researched it and believe so strongly in this thing I am not backing out no matter what anyone else does.

If it takes another year (or even two) then that is just more time to continue to build up my interest in IQD.

Someday all of us who hung in this thing will be sitting under an umbrella, sipping our cool drinks, giving $50 tips to the steward and talking about how brilliant we were to wait this thing out.

GP aint rattled by nothing.

I know this thing will payoff nicely and I will add it to my portfolio as a stellar success.

Hang in there guys!!!

Good for you. I am right there with you. I will see you on the other side. I will be one umbrella over.

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OK, this article can certainly be construed to indicate the dreaded LOP. So let's look at the BIG PICTURE and see how much money, in theory, the US Government would make in the event of a LOP. From my understanding, the US Treasury owns 3.7 trillion Iraqi Dinars. Right now, those Dinars are worth $3.182 billion (3.7 trillion x $.00086/dinar). So for the sake of this argument, that's what the Treasury's has "invested" in dinars. In the event of the LOP, those 3.7 trillion dinars will become 3.7 billion dinars, and of course, this change will be accompanied by a concurrent change in the FMV of the dinar from $.00086 to $.86. As a result of these two changes effected by the LOP, the FMV of the US Government's investment in Dinars is unchanged and still at $3.182 billion.

Now, the lopsters are saying that the value of the dinar, after the LOP (which is akin to a reverse split) will increase upward over $3.00 and that we will get a very nice 300% return on our investment and that we should be happy with such a great return. This is based on the post-lop FMV of the dinar increasing from $.86 to $3.44

OK, let's look at it from the Government's standpoint. Are they gonna be happy with a 300% return on their $3.182 investment. Let's see that a whopping profit for the US Treasury of $9.546 billion ($3.182 billion x 300%). Do you lopsters really think that they spent trillions of dollars to reap a $9.546 billion profit on this investment?

Granted, the US Treasury will be buying oil chaep from Iraq, so we also need to look at that. From what I've read, the US will be buying oil from Iraq for $32/barrel. Let's assume the US can sell that oil for $96/barrel (a nice 200% profit). Iraq is currently producing under 3 million barrels per day, but that number will be increasing. So let me use some number like 4 million barrels per day. Let's also assume for sake of argument that the US will buy every one of the 4 million barrels of oil Iraq produces.

In the first year, the US will make a profit from selling this oil of $93.44 billion dollars, i.e. 4,000,000 bpd x 365days/year x $64 profit/barrel, Really? That's all? How in blazes is rpughly $103 billion ($9.546 + $93.44) gonna pay down the national debt? That doesn't even come close to paying the interest on the debt. And this based on two assumptions that certainly overstate the numbers that will be yielded in reality.

NOW......If we talk about and straight RV to say $2.00 (which is significantly lower that the $3.44 in the lopster's 300%-ROI-be-happy-with-that scenario). The value of then Dinars held by the US Treasury will increase from $3.182 billion to $7.4 trillion. This is the only way the national debt gets paid down, because the profits from the sale of the Iraqi oil would be exactly the same (albeit admittedly overstated), as those profits would still be limited by the amount of oil that Iraq can produce.

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OK, this article can certainly be construed to indicate the dreaded LOP. So let's look at the BIG PICTURE and see how much money, in theory, the US Government would make in the event of a LOP. From my understanding, the US Treasury owns 3.7 trillion Iraqi Dinars. Right now, those Dinars are worth $3.182 billion (3.7 trillion x $.00086/dinar). So for the sake of this argument, that's what the Treasury's has "invested" in dinars. In the event of the LOP, those 3.7 trillion dinars will become 3.7 billion dinars, and of course, this change will be accompanied by a concurrent change in the FMV of the dinar from $.00086 to $.86. As a result of these two changes effected by the LOP, the FMV of the US Government's investment in Dinars is unchanged and still at $3.182 billion.

There's the problem for me.....where can I see that the UST holds dinar.

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Fractional banking is a pipe dream in this scenario...CBI and Iraq government banks both follow Sharia(Islamic) law, which says that fractional banking is not allowed, all funds must be backed 100%...so much for the only loophole that would allow it to happen, oops.

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Sorry about that. Did not know it had been posted previously. Still very concerning though. I've held my dinars for over 6 years and this is the first time I felt the need to sell them.

Hi Buffalowade1, Hay this has been out and beet up for 4 years or more! I can't prove anything but I have been in this for over 6 years and I will tell you to just sit tight and hold onto your 25K notes a little longer! it can't hurt, I was tolled time and time again that IF they drop the 3 0's it will be in country ONLY! everyone else will get face value when you cash in! SO don't be sorry! WAIT IT OUT!

Think of the Country's they have already paid debts too in 25K notes! So lets say they paid Country "X" 1 Billion in 25K notes and now Iraq says "Oh buy the way we decided to lop the 3 0's off them 25K notes!" "SOooo The 1 Billion we paid you in?" "Is only going to be about 100 Million!!" Oh yeah that will fly! :o

I'm not worried, No one in my Group is worried! This is a lot of hype and BS!! It comes up about every 6 months or so! Don't sell your 25K Dinar yet! you'll be sorry if you do and miss out on a wonderful profit! It would be like throwing away a winning lotto ticket because some guy on TV read the numbers wrong! I always look at the lotto WEB site to see the winning numbers before I throw them out!! :D

go Go GO!!!! RV!!! Coming to a bank near you Very VERY SOON!!! B)

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You guys are funny. This Brian Guy knows nothing. All other redonom had multiple currencies and high inflation. He said no other currency has revalued like this. He needs to look at Kuwait and recently astonia who went from lower than Iraq to the eruo and that was this year what gets me is people. Believe dumbasses like okie and all these other idiots And it hasn't happened yet so they negative. I wish idiots would stop all the blog calls and stupidity. And the week--minded should stop listening to these dumbasses. No disrespect. Sorry for grammar I am on my phone

Sonny1, a little help please. I know you get loaded with requests for info. I find a reference to an RV when Estonia changed from the Kroon to the Euro for less than .0001% increase in 2004 (not exactly what dreams are made of). Likewise, I've not seen information on Kuwait where it was drastically changed by government fiat overnight. It seems all the examples people quote are really gradual market change or change by pegging to another country. Do you have any link for any example in any country where a drastic currency value change happened due to a declaration of value by that country or central bank?

Honest question... I've asked others before, I've looked - just haven't found an example. The "woods are full" of redenomination examples and there certainly have been market driven success stories over time. I'd love to see an example of a pretty big overnight RV (anything over 25% increase). The closest I have come was Germany after WW II when they merged a few currencies and it wasn't that high (as I recall only about 15%) . I am sure all of us would be encouraged by seeing an example, particularly with the news like this string.

Kent

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OK, this article can certainly be construed to indicate the dreaded LOP. So let's look at the BIG PICTURE and see how much money, in theory, the US Government would make in the event of a LOP. From my understanding, the US Treasury owns 3.7 trillion Iraqi Dinars. Right now, those Dinars are worth $3.182 billion (3.7 trillion x $.00086/dinar). So for the sake of this argument, that's what the Treasury's has "invested" in dinars. In the event of the LOP, those 3.7 trillion dinars will become 3.7 billion dinars, and of course, this change will be accompanied by a concurrent change in the FMV of the dinar from $.00086 to $.86. As a result of these two changes effected by the LOP, the FMV of the US Government's investment in Dinars is unchanged and still at $3.182 billion.

Now, the lopsters are saying that the value of the dinar, after the LOP (which is akin to a reverse split) will increase upward over $3.00 and that we will get a very nice 300% return on our investment and that we should be happy with such a great return. This is based on the post-lop FMV of the dinar increasing from $.86 to $3.44

OK, let's look at it from the Government's standpoint. Are they gonna be happy with a 300% return on their $3.182 investment. Let's see that a whopping profit for the US Treasury of $9.546 billion ($3.182 billion x 300%). Do you lopsters really think that they spent trillions of dollars to reap a $9.546 billion profit on this investment?

Granted, the US Treasury will be buying oil chaep from Iraq, so we also need to look at that. From what I've read, the US will be buying oil from Iraq for $32/barrel. Let's assume the US can sell that oil for $96/barrel (a nice 200% profit). Iraq is currently producing under 3 million barrels per day, but that number will be increasing. So let me use some number like 4 million barrels per day. Let's also assume for sake of argument that the US will buy every one of the 4 million barrels of oil Iraq produces.

In the first year, the US will make a profit from selling this oil of $93.44 billion dollars, i.e. 4,000,000 bpd x 365days/year x $64 profit/barrel, Really? That's all? How in blazes is rpughly $103 billion ($9.546 + $93.44) gonna pay down the national debt? That doesn't even come close to paying the interest on the debt. And this based on two assumptions that certainly overstate the numbers that will be yielded in reality.

NOW......If we talk about and straight RV to say $2.00 (which is significantly lower that the $3.44 in the lopster's 300%-ROI-be-happy-with-that scenario). The value of then Dinars held by the US Treasury will increase from $3.182 billion to $7.4 trillion. This is the only way the national debt gets paid down, because the profits from the sale of the Iraqi oil would be exactly the same (albeit admittedly overstated), as those profits would still be limited by the amount of oil that Iraq can produce.

You stated "Do you lopsters really think that they spent trillions of dollars to reap a $9.546 billion profit on this investment?" The U.S. would have actually only spent $3,166,432,472 at let's just say a 1:1 ratio for 3.7 trillion DINARS, that's billions not trillions. No one has ever even had or found any proof that the UST is actually holding 3.7 trillion dinars by the way, so that's not a really good reason to use in order to prove the facts stated in this article as being wrong.

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You stated "Do you lopsters really think that they spent trillions of dollars to reap a $9.546 billion profit on this investment?" The U.S. would have actually only spent $3,166,432,472 at let's just say a 1:1 ratio for 3.7 trillion DINARS, that's billions not trillions. No one has ever even had or found any proof that the UST is actually holding 3.7 trillion dinars by the way, so that's not a really good reason to use in order to prove the facts stated in this article as being wrong.

scratch that "at let's just say a 1:1 ratio " I didn't mean to put that part of the sentence in there.

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Its a little more detailed then that......I believe here they can lend out 10 for every 1 dollar they have.....and in another sense for every 10 printed they only need to back up 1 of those.....

Now lets move to Iraq...... they have 50 billion (confirmed) in reserves....which backs up the currency 100% right now......lets say for instance Iraq RVs at 1 dollar (just to keep it simple) that means they will need almost 6 trillion in reserves to back that value with a money supply of 59 trillion dinar.....

50 billion is a far cry from 6 trillion thats needed.......see where Im going with this?

EXACTLY my friend what I have been in my way trying to9 explain. They do not need what most think to have a rate done. They need to have the specifics in place required for the rate not the actual money supply. They have what is needed to put down a nice rate. I just hope they do it. I personally do not believe (well or desire LOL) a RD. Just doesnt seem to be in the economic model for this countris position. We shall see though.

My friend I look forward to this going well and you doing a happy dance.

Peace.

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You guys are funny. This Brian Guy knows nothing. All other redonom had multiple currencies and high inflation. He said no other currency has revalued like this. He needs to look at Kuwait and recently astonia who went from lower than Iraq to the eruo and that was this year what gets me is people. Believe dumbasses like okie and all these other idiots And it hasn't happened yet so they negative. I wish idiots would stop all the blog calls and stupidity. And the week--minded should stop listening to these dumbasses. No disrespect. Sorry for grammar I am on my phone

Kuwait was not a comparable situation as the currency did not lose value due to economic reasons, never ballooned to levels of trillions in circulation, it was devalued by an invading force by deeming it illegal and imposing a 1:1 exchange rate to the far less valuable IQD. Next, the assertion that the Estonian kroon somehow went from being worth less than the IQD to that of the euro is a statement in fantasy. The kroon held a value around 10 cents, not like Iraq at many times less than a penny - it was replaced by the euro with an exchange rate of 15.6466 kroon to 1 euro.

Doesn't seem very logical to use irrelevant and misleading information to support your claim that someone else doesn't know what they are talking about. But that is JMO.

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You stated "Do you lopsters really think that they spent trillions of dollars to reap a $9.546 billion profit on this investment?" The U.S. would have actually only spent $3,166,432,472 at let's just say a 1:1 ratio for 3.7 trillion DINARS, that's billions not trillions. No one has ever even had or found any proof that the UST is actually holding 3.7 trillion dinars by the way, so that's not a really good reason to use in order to prove the facts stated in this article as being wrong.

My reference to trillions related to the cost of the war in Iraq, not the cost of the dinars. BIG PICTURE My guess is that they spent much less than the $3+ billion on this rumored holding of 3.7 trillion dinars. I was just using this as a basis for showing how little profit the Treasury will make in the event of a LOP. I don't know for certain that the Treasury owns any dinars, but as I tried to show, the ONLY way our government will be able to pay down the debt will be if they do, in fact, possess Iraqi dinars, and there is a straight-up RV. The LOP doesn't help anybody, especially the Iraqis!!!

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EXACTLY my friend what I have been in my way trying to9 explain. They do not need what most think to have a rate done. They need to have the specifics in place required for the rate not the actual money supply. They have what is needed to put down a nice rate. I just hope they do it. I personally do not believe (well or desire LOL) a RD. Just doesnt seem to be in the economic model for this countris position. We shall see though.

My friend I look forward to this going well and you doing a happy dance.

Peace.

But thats all on the premise that the CBI will not continue to practice islamic banking.....AND even if they stray away from that, right now and the 250 billion IS in fact whats in the international reserves, If my math was correct they could back a 4 cent exchange rate......(thats using a 10 to 1 ratio for what they would have to back following fractional banking)

And again it doesnt seem they have any plans of doing that simply because the CBI is opening another bank under the strickt practice of islamic banking and they speak of this bank needing a minimum capital of 250 billion (along with any other new banks which also makes me think that the 250 billion that keeps getting mentioned is simply the capital reserves of the state banks and not the international reserves)

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http://www.youtube.com/watch?v=inkN8Yn2Cak

like it or not? still worth listening to

I think anyway,

Love to the DV family

It is not a question of whether it is worth listening to. You typically learn something from everything you come into contact with, if you are paying attention. The question is once you have listened to it, are you smart enough (and that means many, many things) to digest it, and know what you have consumed.

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My reference to trillions related to the cost of the war in Iraq, not the cost of the dinars. BIG PICTURE My guess is that they spent much less than the $3+ billion on this rumored holding of 3.7 trillion dinars. I was just using this as a basis for showing how little profit the Treasury will make in the event of a LOP. I don't know for certain that the Treasury owns any dinars, but as I tried to show, the ONLY way our government will be able to pay down the debt will be if they do, in fact, possess Iraqi dinars, and there is a straight-up RV. The LOP doesn't help anybody, especially the Iraqis!!!

I see, sorry for the mix up. That would be nice though, to find some sort of proof that the U.S. is holding dinar, that would make everything much more exciting...lol

Have a nice day :)

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Kuwait was not a comparable situation as the currency did not lose value due to economic reasons, never ballooned to levels of trillions in circulation, it was devalued by an invading force by deeming it illegal and imposing a 1:1 exchange rate to the far less valuable IQD. Next, the assertion that the Estonian kroon somehow went from being worth less than the IQD to that of the euro is a statement in fantasy. The kroon held a value around 10 cents, not like Iraq at many times less than a penny - it was replaced by the euro with an exchange rate of 15.6466 kroon to 1 euro.

Doesn't seem very logical to use irrelevant and misleading information to support your claim that someone else doesn't know what they are talking about. But that is JMO.

Ok when will people learn about Kuwait?

There was NEVER an RV. There was a going back to what it was prewar, there were soldiers on the ground, who bought it for pennys on the dinar and then when the "Invasion" as short as it was, was over. They went and sold there dinars at the pre war price.

Basically the rate was NEVER dropped, the people panicked and thought it was.

I mean just read the history about it.

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Speculation is at the heart of this investment and these web sites. Even the news articles are subject to interpetation. Would Iraq or any other hidden political catalysts, purposely release negative news that indicate everything will take another year? Do they have anything to gain in this if some people dump their IQD? The short answer is yes. This is life and in life there are no guarantees except death. If you have invested wisely, you have used discretionary funds that do not take away from your ability live and maintain your lifestyle, you should wait, even if it does take another year. If you invested too much and can no longer afford to hold, then don't. Sell what you must but you might want to retain some, just in case.

I refuse to let this control my life. I have minimized my visits to this site and still feel good about the investment. I might make a lot of money or I might not. I have invested $1000 USD and that will be it. If it does well, I will be quite happy. If it does not, then I will continue on because I can afford to lose what I have dedicated to this. The prospects of such a huge return has clearly become an obsession for some. I hope they will gain some clarity and stop living for the RV and rather take life one day at a time. I personally do not see much reason to panic over possible delays because, I am taking everything with plenty of salt and I am convinced that no one really knows anything for sure, that shares in these forums. The is however some intelligent speculation and plenty of unsubstantiated hype. Take your pick and stay thristy my friends!

Oh yeah- HAPPY INDEPENDENCE DAY !!!

Go RVVVVVV

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Kuwait was not a comparable situation as the currency did not lose value due to economic reasons, never ballooned to levels of trillions in circulation, it was devalued by an invading force by deeming it illegal and imposing a 1:1 exchange rate to the far less valuable IQD. Next, the assertion that the Estonian kroon somehow went from being worth less than the IQD to that of the euro is a statement in fantasy. The kroon held a value around 10 cents, not like Iraq at many times less than a penny - it was replaced by the euro with an exchange rate of 15.6466 kroon to 1 euro.

Doesn't seem very logical to use irrelevant and misleading information to support your claim that someone else doesn't know what they are talking about. But that is JMO.

Ok when will people learn about Kuwait?

There was NEVER an RV. There was a going back to what it was prewar, there were soldiers on the ground, who bought it for pennys on the dinar and then when the "Invasion" as short as it was, was over. They went and sold there dinars at the pre war price.

Basically the rate was NEVER dropped, the people panicked and thought it was.

I mean just read the history about it.

Where in my post did I state that an RV did happen in Kuwait???

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