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Simple question...why does the Govt. sell?


Rocketdude
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I'm mildly invested now, but find myself more often questioning and researching the sanity in further investment, despite the untapped wealth of Iraq. I need some help understanding why a Govt. would flood the world market with non-FOREX traded NID at a fraction of the potential payback...unless the ultimate plan doesn't include significant payback.

Thanks,

Rick

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That is a super question!

My take is that IRAQ wants money to rebuild its infrastructural. The program rate is what they could get. Some say chapter 7 is lifted, if it is IRAQ could RV now or soon. If not they are stuck with the program rate for a while. If you are poor are you willing to give some of your future wealth away to eat today? If you think of IRAQ like a poor person that needs to eat it may make looking at this situation easier.

A poor person that knows they will be rich in a week may not really care that they decreased their wealth by 1cent out of 4 dollars by continuing to sell their currency until the button is PUSHED. Just my :twocents:

Edited by Kanga
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That is a super question!

My take is that IRAQ wants money to rebuild its infrastructural. The program rate is what they could get. Some say chapter 7 is lifted, if it is IRAQ could RV now or soon. If not they are stuck with the program rate for a while. If you are poor are you willing to give some of your future wealth away to eat today? If you think of IRAQ like a poor person that needs to eat it may make looking at this situation easier.

A poor person that knows they will be rich in a week may not really care that they decreased their wealth by 1cent out of 4 dollars by continuing to sell their currency until the button is PUSHED. Just my :twocents:

I love your line of thinking. I guess the next question is:

Even after Chapter 7 is lifted, what are the gurus going to tell you the next hurdle is.

The OP is on the right track. There is a reason we have been told the RV is "right around the corner" for 7 years (so far).

Edited by Froto
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Read this from the CBI:

"The CBI currently has the following active and passive instruments that affect market liquidity (base money):

• Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives; "

That seems to speak of the CBI not selling dinar as a goal, but rather buying dollars to provide the stable currency they need for inclusion in the IMF.

Interesting read and can be found here if you're inclined:

http://cbi.iq/docume...policy_en_f.pdf

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I think there are also some simple common sense things to look at.

1. Look at all the other oil producing countries in the Middle East. Where is there money valued at?

2. At 1170 Dinar to $1 USD, their money with completely worthless, so for them to rebuild their country and have others invest in their country, they need to RV their money so that it becomes a worth while investment for everyone.

3. They cannot be in the WTO without a tradable currency and at 1170, it is not tradable because it is worthless.

There are many other reasons, but I think those 3 are very simple to comprehend as to why they need to RV.

I hope that helps.

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When the UN controlled the DFI, the GOI was only able to use funds transparently (Which was for budgetary purposes). This was why so many people believed the release of the DFI was a huge deal. It meant they could spend their money as they pleased. Imagine if you were a youngster working, and your parents budgeted your earnings, now imagine getting full control of those earnings.. An exciting moment for them none-the-less.

But, here was the problem, they needed a source of income/revenue to pay for other expenses. Shabibi started marketing the dinar and selling it, giving them the ability to have cash-flow to spend at their own desire.

Pretty sure that tune is changing as acquiring IQD is becoming harder & harder. So, we would have to predict a shift is about to change in the near future.

The Whens, Hows, & Whys will be answered in the future, but for now, we are stuck speculating.

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Acquiring IQD is still easy. Don't fall for the lies. I just bought some on tue and have fed ex confirmation that it will arrive tomorrow WITHOUT expediated shipping. Still plenty of dinar out there. Just check ebay, dinarbanker, etc. Oh, don't buy any dinar based on any of my intel, but if you do buy, go to www.dinarwanker.com and enter my special code: GETBENT. If you do that you will get a discount. I don't make a dime off the transaction (except the percentage I get when they track my code), I am just doing this out of the goodness of my heart. That's what good gurus do.

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Well you are making some assumptions.

1) Lets take one of the last reported auctions. 188,000,000 dinar on the 5th I think or approximately 160,000 dollars. (For a country of 24 million people actively trying to grow an economy that looks like peanuts to me) Perhaps more like the amount they need to conduct ordinary business activities, exchanges, pay for imports, stuff that can not be easily put off. I am sure some portion is for speculators, but how could you tell. Yes in the event of a large revalue it will commit them to more cost, but until they are ready for revalue it is just a cost of business. Sure in a perfect world where they know the exact date they want to pull trigger you would expect them to want to minimize currency sales. But they have to be careful not to create a drag on the economy (any more than they already have) by convincing their people that if they hold on to their dinar it will be worth a great deal more later than it is now. I think that is one reason we are seeing all the confusing & contradictory press releases.

2) You are assuming that the numbers reported on website are 100% accurate. If I wanted to conceal intent, having web guy pretend everything is normal would be one of my first strategies.

3) Due to fractional banking & fiat money (the value assigned to any currency is largely what we agree to exchange for it.) for example the US Dollar has a perceived value in the international market that changes based on actions & the story about future value that everyone believes. So how good is the story Iraq can tell about their future prospects to convince the world that their version of monopoly money will have greater value. I believe & many who have invested & Dinar share the belief that their story is not only pretty good, they should be able to get the world to believe it as well, especially if backed by some of the major governments & agencies involved. Personally I would like to see them just get on with it & would happily cheer them on if they decide to sell the story that each dinar should be valued more due to their vast mineral wealth & opportunity to become one of the wealthiest countries in the world.

Just food for thought folks.

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I think there are also some simple common sense things to look at.

1. Look at all the other oil producing countries in the Middle East. Where is there money valued at?

2. At 1170 Dinar to $1 USD, their money with completely worthless, so for them to rebuild their country and have others invest in their country, they need to RV their money so that it becomes a worth while investment for everyone.

3. They cannot be in the WTO without a tradable currency and at 1170, it is not tradable because it is worthless.

There are many other reasons, but I think those 3 are very simple to comprehend as to why they need to RV.

I hope that helps.

just because they produce oil doesnt mean their money should be valued high. it does have a value. 1170 to the us dollar. iraq could go on for years and maybe even decades with the currency where it is right now. who is telling you that is has to rv? okie? terry k ? they can be in the wto if their currency is globaly recognized and they can do that at 1170. there are many other countries out there that have corrupt governments and a very undervalued currency, when compared to the usd, that have been just skipping along without missing a beat. the three points you mentioned above are what the pumpers want you to believe to re assure you that its ok to invest in dinar. nowhere is your 3 reasons why it has to rv a proven fact. it is just speculation. i think it is common sense to look at it as just speculation. it could happen or it could not. of course i want it to happen but it was so very close to happening back in dec. of 2010. and in oct , july, march of 2010. the same with 2009. and all the years previous to this. the bottom line is iraq could be fine with not rv'ing. just look at how they run their government. you think they would know any better?

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That is a super question!

My take is that IRAQ wants money to rebuild its infrastructural. The program rate is what they could get. Some say chapter 7 is lifted, if it is IRAQ could RV now or soon. If not they are stuck with the program rate for a while. If you are poor are you willing to give some of your future wealth away to eat today? If you think of IRAQ like a poor person that needs to eat it may make looking at this situation easier.

A poor person that knows they will be rich in a week may not really care that they decreased their wealth by 1cent out of 4 dollars by continuing to sell their currency until the button is PUSHED. Just my :twocents:

Thanks Kanga. You got me thinking and doing some more research. Think you are right on!

Read this from the CBI:

"The CBI currently has the following active and passive instruments that affect market liquidity (base money):

• Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives; "

That seems to speak of the CBI not selling dinar as a goal, but rather buying dollars to provide the stable currency they need for inclusion in the IMF.

Interesting read and can be found here if you're inclined:

http://cbi.iq/docume...policy_en_f.pdf

Tommyboy,

That was an awesome post. Read though the CBI regulations, which got me off on wiki-tangents to learn more. Right-on! Thanks much.

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This is all false. Yes, look at other oil producing countries in the middle east, where there money is valued. Then look at HOW much of their money is out there. Iraq dinar can't be valued the same as Kuwaits when Iraq has flooded the market with 1000 times as much currency.

2 and 3 are wrong because there are countries in the WTO with currency that is even less valued than the IQD. Take a look at the currency of Indonesia or South Korea.

I TOTALLY AGREE SIR. A country dont have to have a tradable currency to be in the WTO, there are a lot of countries in the WTO that dont have a world tradable currency.

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