Revaluation Analysis as of 7/6/11 by NEO

[Poker]

Hope you enjoy ....Neo has a great vocabulary doesn't he?

Revaluation Analysis as of 7/6/11 by NEO

As a follow up to Med and Mailman17 and member chat regarding the current process of mitigating a valuation plan that appears in sight and upon us, I wanted to expand on several points discussed that on closer observation may lend a new dimension to the revaluation process.

To begin with an RV affects the components of multiple levels of investment and consideration must be realized and weighed on a countries performance as an emerging currency.

The largest impact to the GDP is generally measured against the contributory value of the stocks bonds oil futures and other key instruments which also translate into quick and measurable index’s something the Iraqi bean counters will enjoy while tracking the results of their planned overhaul of the economy at this level.

First let’s look at these terms before making a broad assessment of Iraq’s position in the scheme of things.

Ok so when the deliberate adjustment in the official exchange rate is established, or pegged, by a government against a specified standard, such as another currency or gold, we have what is commonly called a currency revaluation.

I think we have that one down fairly well, but a more in depth analysis of the elements or units of measure that will result in tangible performance results are needed to see the bigger picture.

The folks who calculate statistical risks, life expectancy, and payout probabilities for various purposes on a governmental level start with our buddy Shabibi.

His staffs of governmental actuaries are the guys who will calculate statistical risks, life expectancy, and payout probabilities for various purposes at many levels and report to the CBI board of governors.

They will start with a pseudo actuarial revaluation.

This is where the central bank actuary restates the accrued obligations on the basis of evaluations of the actual performance factors since the inception of the managed rate we have grown to hate, and factors affecting the future monetary outlook.

Are you still with me on this?

I hope so because a revaluation of the currency has a dramatic effect on the sub markets for example ISX and commodities markets (Bourse) etc.

The shareholders' equity that arises from changes in the current value of fixed assets such as currency reserves is also an adjustment to the revaluation reserves.

Revaluation reserve can be included in shareholders’ funds for the purpose of debt/equity ratio.

The key to matching the currency differential between countries during this process falls under the category called “ Balance of payments” This is simply a statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.

In the balance of payments, counterpart items are analogous to unrequited transfers (big arse bank words for not reciprocated or returned in kind) in the current account.

These come about through the double-entry system in the balance of payments accounting and refer to adjustments in reserves, owing to monetization or demonetization of gold, allocation or cancellation of SDRs, and revaluation of the various components of total reserves.

In its simplest form, monetization is nothing more than the process of converting or establishing something into legal tender.

So what impact does existing currency held by U.S. investors and foreign countries as special reserves have on their formulation? Currently this variable is an easy one.

There will probably be a static entry posted alongside a pro-forma projection of net present value with probably several statistical bar graphs measuring their percentage of contribution to more important indicators which I imagine will be their CPI and GDP projections.

Arrangements with foreign countries and their respective IQD holdings alongside the many sweet heart contracts and negotiations related to their oil & gas potential will be negligible in contrast to the bigger picture of daily transactional business with a global community.

Conclusion: As Mailman17 has harped on several occasions regarding GDP and “The Banks” I believe the premise is sound and the reason we wait is attributed to the “full accountability” and Iraqi monetary position statement that must be presented in a COMPLETE manner to Parliament leaving no doubt as to the magnitude of this move.

The overall dynamic to monetize their asset base and currency and fix its price at a given future time and at the then prevailing nominal street price is highly complex.

Rest assured when the time is optimal we will be even more prepared to manage our resources.

NEO

Regards,

Poker

[gregg450]

Yeah, what he said.

[Choppermike]

After reading this post (2-times), I would like my Master's degree in Economics sent to the following address ...

[DinarDana]

Hope you enjoy ....Neo has a great vocabulary doesn't he?

Conclusion: As Mailman17 has harped on several occasions regarding GDP and “The Banks” I believe the premise is sound and the reason we wait is attributed to the “full accountability” and Iraqi monetary position statement that must be presented in a COMPLETE manner to Parliament leaving no doubt as to the magnitude of this move.

The overall dynamic to monetize their asset base and currency and fix its price at a given future time and at the then prevailing nominal street price is highly complex.

Here is the conclusion for those of you who are looking for a summary - Highly knowledgeable and well-educated in currency and economics, however if you are looking for a date and rate there is not one here. Thanks for the post Poker, great information.

Oh may I add, see this is very complex as the writer stated - It may take more time than you have patience for - but it will happen.

[Buckeye Pilot]

After reading this post (2-times), I would like my Master's degree in Economics sent to the following address ...

ROFGLMAO.............!!!!!!!!!!!!

Yeah, what he said.

X2

[TFK]

Oh may I add, see this is very complex as the writer stated - It may take more time than you have patience for - but it will happen.

I work in finance too. Many accountants I work with are invested in the dinar for years. They convinced me to get in a few years back.

They have tried to explain how assets (natural & physical) are monetized and how currency is related to all the different variables NEO talked about... GDP, CPI (consumer price index) etc. and the massive job it is to bring it all together.

You'd be amazed at the list of items that can be monetized, including everything from natural resources to property to a website (ask Adam about advertising profits )

Bottom line I've received from them on the dinar is to sit back, relax and wait. This investment will pay off. How much? Nobody knows, but definitely a lot more than it's worth now.

[Don & Rocio]

Neo is Shabs alias...

[DinarDana]

I work in finance too. Many accountants I work with are invested in the dinar for years. They convinced me to get in a few years back.

They have tried to explain how assets (natural & physical) are monetized and how currency is related to all the different variables NEO talked about... GDP, CPI (consumer price index) etc. and the massive job it is to bring it all together.

You'd be amazed at the list of items that can be monetized, including everything from natural resources to property to a website (ask Adam about advertising profits )

Bottom line I've received from them on the dinar is to sit back, relax and wait. This investment will pay off. How much? Nobody knows, but definitely a lot more than it's worth now.

Well I monetized my handbags every season when I resell them on Ebay . I am relaxing - this is good.

[andy3978]

Whatever, they can RV half assed. If they screw up they'll get bailed out like everyone else