Lop or RV?.....or..... Could both camps be right???????

[caddieman]

First let me give a shout out to popo24 this thought came from one of his post.

What has people so up in arms is the statement that they are dropping 3 zeros. Do they mean dropping it from the currency(lop) or do they mean dropping it from the exchange rate?(RV).......or are they going to do both at the same time?

There is over 25,000,000,000,000.00 (25 trillion) in circulation today. If they drop 3 zeros there will be 25,000,000,000.00 (25billion) much more in-line with what other countries have in circulation today. Now the other camp RV the rate is .00086 if you drop 3 zeros here you got .86 so a new smaller denom lets say a 25 note will have a value of $21.50 USD the same as a 25,000 note does right now.

Remember this they said that the people are having to carry around too much money right now. You know how much money they would have to carry around if you turned in a 25,000 note and they gave you back 25,000 in 20 dinar notes..........you think they need wheelbarrows now! They are not going to turn 1 note into 1,240 notes that is opposite of what they are trying to do if you really think about it. That is why both camps just may be right they might be dropping 3 zeros off the currency and the exchange rate at the same time. The article said that they will be taking the higher denomes in until the end of the year. Now after 2010 after they get all the bills in they might be planing on another RV like 2.50 to 3.50. Again this is all just a guess but man does all that fit like a glove.....again thanks popo24.

[indymom]

Interesting theory - that's one way to look at it.

[afarns]

I'm pretty convinced at this point that it will be both.

[mac lightning]

Your point about the trillions of Dinar in circulation is a good one....the only sensible number here would be to drop three zeroes...and have it be around 25 billion....much more in line with other currencies....I think they could do both at one time....I hope so anyway...otherwise we will need to trade in our larger denominations to hold out for a future RV.

[caddieman]

also just thought of this. They could also drop the 3 zeros and RV at say $2.5 or $3 from the get go. That way your $25,000 note that has a value of $21.50 USD now when truned in will get you back $62.50 in smaller denoms. So they get down to 25 billion dinars and the dinar has gone up double! With what they have in reserves for backing they could do that very easy.

[gorkat]

Definitely a rv.

[caddieman]

Definitely a rv.

Ahhh Ok. lol

[caddieman]

It is looking more and more likely as the days pass and more articles add up that my assumption is right. As much as I hate it, and you hate me for saying it, I think I am right on this one.

http://ph.news.yahoo.com/rtrs/20100211/tbs-iraq-currency-955c2a1.html

[Doliver]

How about RV time passes those with IQD turn in as USD then lop 3 zeros. Would mean the rich get richer qnd the poor stand still.

Follow the $$$.

doliver

[jmakTN]

It is really the only way to look at it. The dinar will be worth the same as they lop of the zeros from big denoms and re-value the currency. It is hard to continuously ignore the actual reports coming out of Iraq. The fantasy of a 1000% increase is exactly that, it is pretty apparent now that the people involved with this have never even conceived a possibility of a thousand dollars becoming a million. As this year progresses we will be cashing in our dinar and hoping to get back close to what we put into to it.

[Mongo]

25 trillion is a drop in the bucket, if the dinar is to be part of the world reserve, countries will keep it out of circulation in their central banks to prop up their currencies. so the total amount of dinars printed won't all be in circulation.

[caddieman]

25 trillion is a drop in the bucket, if the dinar is to be part of the world reserve, countries will keep it out of circulation in their central banks to prop up their currencies. so the total amount of dinars printed won't all be in circulation.

Sorry but 25 trillion is not just a drop in a bucket

[egbert]

caddieman, we think alike. I agree that both camps are likely to be correct. However, I think any larger RV is going to be further down the line. I could see a small RV initially and then the IQD listed on the commodities market where it's true value will be determined. With it's oil reserves and current capacity to produce, it does not seem like it will stay low for long.

[caddieman]

caddieman, we think alike. I agree that both camps are likely to be correct. However, I think any larger RV is going to be further down the line. I could see a small RV initially and then the IQD listed on the commodities market where it's true value will be determined. With it's oil reserves and current capacity to produce, it does not seem like it will stay low for long.

hey I agree 100% down the line I believe they will RV higher but not until they get all the large denoms back. So in 2011 I think we could see all the way up to $3.00 or $3.50! We hold on we could triple our investment in a year or so!

[Forrest Gump]

not a chance

[caddieman]

not a chance

On what? You adding to the debate! lol

[zoomzoom]

This is my conclusion as well

[memrfixitok]

OK Geaux RV!!

[Muhammad]

hey I agree 100% down the line I believe they will RV higher but not until they get all the large denoms back. So in 2011 I think we could see all the way up to $3.00 or $3.50! We hold on we could triple our investment in a year or so!

That is a big fat hope! Once ERM is in force immediately after revaluing a currency to get the rate tradeable worldwide to prevent volatile fluctuations, how to expect it to climb so high? Perhaps, after you and I have kicked the bucket.

[Rolaene12]

I would love to believe that both camps can and will be right. Quite frankly I'm just torn and confused. As I assume most would agree, dinar speculation is more akin to philosophy than it is to biology. We can contemplate the likelihood, possibility, etc. of a RV, much like we can contemplate the question "Who am I?", but we'll never know for sure until we can see it in tangible form (i.e. I guess this would be an updated rate by the CBI). That doesn't mean it isn't fun to speculate and fancy different rumors. It just means that sometimes we are either incapable or unqualified to know the real answer.

With all that being said, my gut tells me that the dinar will provide us with a nice return on investment. I don't have a magic eight ball or any contacts providing intel. I just have a hunch. I'm not sure if that will be the result of a RV followed by a lop, a lower RV, a lop and then an RV, or any other possible scenario. I will say though that there has been a great deal of news on the topic recently. If that is a lot to do about nothing I would be shocked.

[waitingondinar]

I believe it is a RV

[caddieman]

I would love to believe that both camps can and will be right. Quite frankly I'm just torn and confused. As I assume most would agree, dinar speculation is more akin to philosophy than it is to biology. We can contemplate the likelihood, possibility, etc. of a RV, much like we can contemplate the question "Who am I?", but we'll never know for sure until we can see it in tangible form (i.e. I guess this would be an updated rate by the CBI). That doesn't mean it isn't fun to speculate and fancy different rumors. It just means that sometimes we are either incapable or unqualified to know the real answer.

With all that being said, my gut tells me that the dinar will provide us with a nice return on investment. I don't have a magic eight ball or any contacts providing intel. I just have a hunch. I'm not sure if that will be the result of a RV followed by a lop, a lower RV, a lop and then an RV, or any other possible scenario. I will say though that there has been a great deal of news on the topic recently. If that is a lot to do about nothing I would be shocked.

Very Very good post and you are right nobody knows. Like you said something is coming down the hill, only time will tell what it is.

[topcat1954]

I believe it is a RV also