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Quick thoughts on "comments" from this article..


weavey323
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http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/ is the link

I know this article about 3 weeks old. I was just reading through the "comments" that are posted below. This Stew guy is a lopster but in all reality is making very valid points. Any thoughts to ease the fear of a LOP or is this guy right?

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http://www.iraq-busi...e-its-currency/ is the link

I know this article about 3 weeks old. I was just reading through the "comments" that are posted below. This Stew guy is a lopster but in all reality is making very valid points. Any thoughts to ease the fear of a LOP or is this guy right?

He is right....thats what a redenomination would do in this case and its been what Iraq has been talking about for years now.....so yes, if the Iraqi parliment approves the idea to delete the zeros, his scenerio is probly dead on.....thats normally what happens in redenominations.....there is a ratio that you exchange old for new, and once the RD process is complete, the new currency is revalued

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http://www.iraq-busi...e-its-currency/ is the link

I know this article about 3 weeks old. I was just reading through the "comments" that are posted below. This Stew guy is a lopster but in all reality is making very valid points. Any thoughts to ease the fear of a LOP or is this guy right?

it is a strong possibility that they will re-denominate...at least that is what they keep stating...don't think it will happen this year and not sure how it will affect those holding IQD outside of the country.

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http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/ is the link

I know this article about 3 weeks old. I was just reading through the "comments" that are posted below. This Stew guy is a lopster but in all reality is making very valid points. Any thoughts to ease the fear of a LOP or is this guy right?

Its better to have some dinar and take a chance on a possible LOP then not have any at all. Usually countries LOP when inflation is high and Iraq is only 6% ( I believe right now) . If it was 20% maybe I would think a LOP.

Edited by Kimjackie
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Its better to have some dinar and take a chance on a possible LOP then not have any at all. Usually countries LOP when inflation is high and Iraq is only 6% ( I believe right now) . If it was 20% maybe I would think a LOP.

A successful RD is executed after periods of hyper inflation ( such as Iraq experienced in 2003) are brought under control and show stability ( such as the current figures).

The RD removes the remnants of past hyperinflation and strengthens the currency, so it can then revalue.

I couldn't comment on a LOP. As far as I have been able to determine, that term may refer to the slang used for removing 3 zeros, like you would LOP cattle when you castrate them; removal by force, which carries a very negative connotation.

The term has been used by Pumpers to keep you from learning what a RD is, which is what the CBI has been telegraphing for years..

I drank the same Kool Aid, but later started paying more attention to the news articles, and less attention to the rumors.

I would still like to see a straight up RV, but that is looking less and less possible..

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So basically if there is an RD, we would get close to our money back. Maybe a little less...?

Lots of variables to consider .

I paid a hefty spread from a large currency dealer for 1 million; about 300.00 too much

If they RD and RV to 1 to 1, I have 1000 dollars; only out around 70 dollars. There are no capital gains to worry about, and if I file long form, I can deduct the loss.

If it then goes on the market, the price will increase. The CBI releases always refer to the three plus dollar range to the dinar.

By the time it appreciates to that amount, I will only have to consider long term capital gains, and could see better than 3 times investment, and a 2 times investment profit. This could take a few years..

I would rather see 3 million than 3 thousand, but feel it more realistic to look at the 3 thousand figure.

There is still strong profit potential here, but not what we were sold on.

We live and learn.

I still like surprises!

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I think Dalite has the right idea and that's pretty much what I thought before I bought any. I figured that worst case scenario would be to break even and then hope that it increases from there. But, on the other hand if they do do a straight revalue I'll be looking pretty good. I only bought a million dinars and figured what the heck...ya never know!! B)

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Lots of variables to consider .

I paid a hefty spread from a large currency dealer for 1 million; about 300.00 too much

If they RD and RV to 1 to 1, I have 1000 dollars; only out around 70 dollars. There are no capital gains to worry about, and if I file long form, I can deduct the loss.

If it then goes on the market, the price will increase. The CBI releases always refer to the three plus dollar range to the dinar.

By the time it appreciates to that amount, I will only have to consider long term capital gains, and could see better than 3 times investment, and a 2 times investment profit. This could take a few years..

I would rather see 3 million than 3 thousand, but feel it more realistic to look at the 3 thousand figure.

There is still strong profit potential here, but not what we were sold on.

We live and learn.

I still like surprises!

Good post. Thanks.

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Why do you say that? You give no reason to back up your thoughts. Not being argumentative here but if you have an outlook that points us in a different direction, I'm sure we'd like to hear it.

Huh....?

Have you not read the countless debates on Lop vs RV ? Lop DOES nothing for Iraq, and would destroy the Economic foundation to which they are trying to move upon......

A Free Market Economy. Iraq does not have ANY of the factores which would dictate a Lop= NONE.

Barryrolleyes.gif

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