7-13-2011 Newshound Guru David

[ronscarpa]

7-13-2011 Newshound Guru David

The dedollarisation has not taken place yet...It has begun...the intent is there... but remember that IQD bill that is to be the equivalent of 100 USD...the reason they are creating that is to aid the dedollarisation, they cannot dedollarise until there are replacement notes for any USD on the market...look at it this way, In the process of the removal of the 3 zeroes Iraq will have 1, 5, 10, 25 Iqds and note valued to 100 USD the resaon they stated they are bringing that 100 USD value dinar note is so that any transaction that required 100 USD to completed can still take place now instead with the IQD valued at 100 USD... now here is the gem of the plan...each time Iraq speaks of the value of the dinar in the 80s and 90s they speak of the supply being in the 500 Billions, anytime they speak of today's notes they are in the 27 trillions. CBI intends to remove the notes with 3 zeroes and they instead will replenish the marketplace with the lower corresponding denomination, so when they remove 1 or 2 25000 IQD they only put in 1 25 IQD, they are thereby strategically lowering the money supply in circulation back to the billions.

[Theflyingbird]

Thanks for the post!

[linny0830]

thank you Ron

[Spoolin]

So, are they going to give each Iraqi 1000 25 notes for their one 25k note they turn in? How on earth would they be able to keep the money supply in the mid billions if they did that? That makes absolutely no sense to me....

[machcobra]

They buy your 25k note for the going rate and replace that note in the market with a 25.00 note, In reality they reduced the money supply by 24,975. I believe this is what he is trying to make you understand.

So, are they going to give each Iraqi 1000 25 notes for their one 25k note they turn in? How on earth would they be able to keep the money supply in the mid billions if they did that? That makes absolutely no sense to me....

[TQueezy]

They buy your 25k note for the going rate and replace that note in the market with a 25.00 note, In reality they reduced the money supply by 24,975. I believe this is what he is trying to make you understand.

So, are they going to give each Iraqi 1000 25 notes for their one 25k note they turn in? How on earth would they be able to keep the money supply in the mid billions if they did that? That makes absolutely no sense to me....

They would do this electronically...

If you turn in your 25k dinar note and the exchange rate is 1:1, you would get 25k dinar worth, in your bank account, and in circulation, they just put a 25 dinar note back in, it balances out. The money supply is reduced because the value isn't changing, your bank account is still showing you are credited for the real value of the bill with the exchange rate (whatever they raise it to against the USD or gold standard, or Euro, or whatever they decide to use), it's just that for the actual bills in circulation, the values of the 25 dinar note being exchanged for one 25k dinar note make the money supply drastically reduced. If someone asks for their value of 25k dinar in smaller notes, they must be given to that person, but since they're only going to exchange it out according to the notes, eventually all the cash would be tied up and people would have to use electronic banking, which is why they've been making great strides in that arena. Think of it this way... if everyone was to still use cash in a straight up 1 to 1 RV, the majority of citizens would get shafted because they couldn't support exchanging 25k dinar notes for 1000 25-dinar notes for EVERY citizen that held them... that's why they will be exchanging 1 25k dinar note for a 25 dinar note, but the value gets credited to the person. It's likely people will HAVE to set up bank accounts. And who wouldn't want to over there, with the rate at 6%? It's dumb... the Iraqis are getting taught how to use modern banking, and they have a great market for it. People will get debit cards, or if they still want cash, they can get it, but the prices will be aligned with the new exchange rate, so 25k dinar notes won't be used in daily transactions. It's a simple currency exchange process... people think it's going to LOP the whole money supply and people will lose their life savings divided by 1000, they would never let that happen... no way, no how.

[YaTaHe]

7-13-2011 Newshound Guru David

The dedollarisation has not taken place yet...It has begun...the intent is there... but remember that IQD bill that is to be the equivalent of 100 USD...the reason they are creating that is to aid the dedollarisation, they cannot dedollarise until there are replacement notes for any USD on the market...look at it this way, In the process of the removal of the 3 zeroes Iraq will have 1, 5, 10, 25 Iqds and note valued to 100 USD the resaon they stated they are bringing that 100 USD value dinar note is so that any transaction that required 100 USD to completed can still take place now instead with the IQD valued at 100 USD... now here is the gem of the plan...each time Iraq speaks of the value of the dinar in the 80s and 90s they speak of the supply being in the 500 Billions, anytime they speak of today's notes they are in the 27 trillions. CBI intends to remove the notes with 3 zeroes and they instead will replenish the marketplace with the lower corresponding denomination, so when they remove 1 or 2 25000 IQD they only put in 1 25 IQD, they are thereby strategically lowering the money supply in circulation back to the billions.

You know, At first I was going to bash you, but somehow I think that you may be right. They have stated several times how their currency was going to corresponde to ours, and that would be the way.

[Icepick]

I truly believe this is how it will go down. My buddy who got me into this investment is more optimistic. Once the money supply gets down to a reasonable amount they can then revalue in which case we are looking at making a little coin, but not millions.

Edited July 14, 2011 by Icepick

[ddyal]

7-13-2011 Newshound Guru David

The dedollarisation has not taken place yet...It has begun...the intent is there... but remember that IQD bill that is to be the equivalent of 100 USD...the reason they are creating that is to aid the dedollarisation, they cannot dedollarise until there are replacement notes for any USD on the market...look at it this way, In the process of the removal of the 3 zeroes Iraq will have 1, 5, 10, 25 Iqds and note valued to 100 USD the resaon they stated they are bringing that 100 USD value dinar note is so that any transaction that required 100 USD to completed can still take place now instead with the IQD valued at 100 USD... now here is the gem of the plan...each time Iraq speaks of the value of the dinar in the 80s and 90s they speak of the supply being in the 500 Billions, anytime they speak of today's notes they are in the 27 trillions. CBI intends to remove the notes with 3 zeroes and they instead will replenish the marketplace with the lower corresponding denomination, so when they remove 1 or 2 25000 IQD they only put in 1 25 IQD, they are thereby strategically lowering the money supply in circulation back to the billions.

So in your scenerio, if I was a rich Iraqi and I tucked away 25,000 dinar, worth approx. $75,000 US dollars at that time, in a sock when the war started for safe keeping. It is now worth very little in Iraq and approximately worth $21.00 US dollars now. Under your plan it have to be traded in for a new $25 dinar bill and then at some time later the value of the dinar would be increased up to say a value worth $3.50 US dollars. That would then make your original stash of $25,000 dinar, worth $75,000 US at that time, now 25 dinar worth $87.50 US dollars. I'd be pissed at the Iraqi Gov. if I were him!

[keepmwlknfny]

people think it's going to LOP the whole money supply and people will lose their life savings divided by 1000, they would never let that happen... no way, no how.

Thats what happens unfortunately when a country redenominates.....but its really not losing anything....its a neutral change.....then once the currencies value goes up after the RD is complete, the purchasing power is restored and they end up not losing a dime.....

What you described in your scenerio doesnt reduce the money supply.....it would bring down the amount in circulation but you forget about the rest that is electronic...they still have to back that up just like the physical bills....which they dont have at this time.....they only have enough to back the 1170 rate with the entire 59 trillion that is their money supply.....

[ddyal]

Thats what happens unfortunately when a country redenominates.....but its really not losing anything....its a neutral change.....then once the currencies value goes up after the RD is complete, the purchasing power is restored and they end up not losing a dime.....

What you described in your scenerio doesnt reduce the money supply.....it would bring down the amount in circulation but you forget about the rest that is electronic...they still have to back that up just like the physical bills....which they dont have at this time.....they only have enough to back the 1170 rate with the entire 59 trillion that is their money supply.....

Are you saying physical Dinar would be valued different than electronic Dinar?

[wpsmit]

So in your scenerio, if I was a rich Iraqi and I tucked away 25,000 dinar, worth approx. $75,000 US dollars at that time, in a sock when the war started for safe keeping. It is now worth very little in Iraq and approximately worth $21.00 US dollars now. Under your plan it have to be traded in for a new $25 dinar bill and then at some time later the value of the dinar would be increased up to say a value worth $3.50 US dollars. That would then make your original stash of $25,000 dinar, worth $75,000 US at that time, now 25 dinar worth $87.50 US dollars. I'd be pissed at the Iraqi Gov. if I were him!

If you tucked it away at the start of the war it would have Saddam's picture on it and be worth $0.00

[ddyal]

7-13-2011 Newshound Guru David

The dedollarisation has not taken place yet...It has begun...the intent is there... but remember that IQD bill that is to be the equivalent of 100 USD...the reason they are creating that is to aid the dedollarisation, they cannot dedollarise until there are replacement notes for any USD on the market...look at it this way, In the process of the removal of the 3 zeroes Iraq will have 1, 5, 10, 25 Iqds and note valued to 100 USD the resaon they stated they are bringing that 100 USD value dinar note is so that any transaction that required 100 USD to completed can still take place now instead with the IQD valued at 100 USD... now here is the gem of the plan...each time Iraq speaks of the value of the dinar in the 80s and 90s they speak of the supply being in the 500 Billions, anytime they speak of today's notes they are in the 27 trillions. CBI intends to remove the notes with 3 zeroes and they instead will replenish the marketplace with the lower corresponding denomination, so when they remove 1 or 2 25000 IQD they only put in 1 25 IQD, they are thereby strategically lowering the money supply in circulation back to the billions.

It seems the only way this could work, particularly for the people of Iraq, is if you did this exchange but the 25 IQD then had the same buying power as the 25,000 IQD. that would in essence make the amount of Dinar in circulation 1/1000th of what it is now but it would also raise the value of each dinar to 1000 times what it was which is making it approximately worth $1 US dollar for each dinar. It could then later be raised I guess to a higher amount. Any other way and the people of Iraq get hosed.

[Crow]

The more money out there the less the value... By collecting two 25k and replace it with one 25 note, they increase the power of that 25 note!!!

Cut supply in half and raises demand!!

Edited July 14, 2011 by Crow

[ddyal]

If you tucked it away at the start of the war it would have Saddam's picture on it and be worth $0.00

It sounds like in that scenerio the same would apply if you had left it in a bank account. Correct?

[TQueezy]

Thats what happens unfortunately when a country redenominates.....but its really not losing anything....its a neutral change.....then once the currencies value goes up after the RD is complete, the purchasing power is restored and they end up not losing a dime.....

What you described in your scenerio doesnt reduce the money supply.....it would bring down the amount in circulation but you forget about the rest that is electronic...they still have to back that up just like the physical bills....which they dont have at this time.....they only have enough to back the 1170 rate with the entire 59 trillion that is their money supply.....

Keep, that seems to be your only point ever, that they HAVE to back up all their money in circulation with 100% value in reserves... I bet they'll just seamlessly just transition to the Basel 15% rule overnight and no one would notice and then the whole argument for LOP makes sense given they just came out of hyperinflation and other countries have done it (poor ones, I might add...) makes absolutely no sense in that light. Sorry, but the 100% reserves point is a weak one...

[imgesing]

So, are they going to give each Iraqi 1000 25 notes for their one 25k note they turn in? How on earth would they be able to keep the money supply in the mid billions if they did that? That makes absolutely no sense to me....

What I have been told is that they are only giving out a 25 for 25K note within IRAQ. It isnt outside but internally. They are removing the higher denoms within IRAQ.

We arent suppose to be affected the same way. SO we dont get hit with an RD but internally the people are. Make sense? That way the system internally in IRAQ is stabilized.

This is what I heard and I have nothing to back it up but a phone conversation with someone in IRAQ. We will see...

What bothers me is how will they value those bills outside the country? One theory is our US GOVT using it for purchasing oil. Which will be at a different rate. I do not fully understand how they intend to do this but it will be interesting to say the least. I hope this all happens soon. The stories are very convoluted...

Peace

[Hell froze over]

Sweet ! the 25 is the new biggest note at the 4.00 plus rate its our 100 dollar bill =

[cbisinger]

7-13-2011 Newshound Guru David

The dedollarisation has not taken place yet...It has begun...the intent is there... but remember that IQD bill that is to be the equivalent of 100 USD...the reason they are creating that is to aid the dedollarisation, they cannot dedollarise until there are replacement notes for any USD on the market...look at it this way, In the process of the removal of the 3 zeroes Iraq will have 1, 5, 10, 25 Iqds and note valued to 100 USD the resaon they stated they are bringing that 100 USD value dinar note is so that any transaction that required 100 USD to completed can still take place now instead with the IQD valued at 100 USD... now here is the gem of the plan...each time Iraq speaks of the value of the dinar in the 80s and 90s they speak of the supply being in the 500 Billions, anytime they speak of today's notes they are in the 27 trillions. CBI intends to remove the notes with 3 zeroes and they instead will replenish the marketplace with the lower corresponding denomination, so when they remove 1 or 2 25000 IQD they only put in 1 25 IQD, they are thereby strategically lowering the money supply in circulation back to the billions.

Nagh I just don't buy it.

If they did it differently inside Iraq from outside Iraq and the Iraqi people were worse of than the rest of the world they'll tear the place apart.

Any RD/RV simply has to be accross the board, this diferent rate stuff is nonsense.

[speculatorsRIDE]

Has anyone given any thought to the IQD becoming a major reserve currency along side of the US Dollar and the Euro?

Call for new major reserve currency

Other nations, such as Russia and the People's Republic of China, central banks, and economic analysts and groups, such as the Gulf Cooperation Council, have expressed a desire to see an independent new currency replace the dollar as the reserve currency. China has proposed using the Special Drawing Rights, calculated daily from a basket of U.S. dollar, euro, Japanese yen and British pound, used by the International Monetary Fund for international payments.

On 3 September 2009, UNCTAD issued a report calling for a new reserve currency based on the SDR, managed by a new global reserve bank.

On 10 July 2009, Russian President Medvedev proposed a new 'world currency' at the G8 meeting in London as an alternative reserve currency to replace the dollar.

According to economist Michael Hudson China has said, "we don't want to make any more foreign exchange reserve of any paper currency, because all the paper currencies are government debt currencies." China, Russia, India, Turkey, Brazil, Venezuela and oil-producing countries have recently agreed "to transact all of their mutual trade and investment in their own currencies" effectively minimizing the need, at least in the short term, for a global reserve currency. And yet oil is still priced in dollars, which has brought complaints about OPEC's policies of managing oil quotas to maintain dollar price stability.

[Nani?]

The assertion that they're going to switch from 100% backing to 15% without anyone notcing or caring is a weaker one, and even with 15%, with an M2 of 59 trillion, you're still not going to see overnight millionaires (i.e. not going to see an RV of 80 cents+)

then what are you doing here? you want to make what triple your original $1000 after waiting 7 years? you could have save $3000 in that time.

this can be debated till the cows come home (as they say in texas) but we won't know what they will actually do till it is actually done. I don't see why the Lopsters firmly believe that it will LOP it just makes absolutely no sense what their purpose is here then. I guess their mission is the same as Okies they want their 15 mins of fame... and they just want to be right lol (sigh) I can't wait till this is all said and done then we can clearly tell who was right and who was wrong, but if it goes the way of RV then I'm not going to even care... I just hope all the LOPsters have sold their dinar before an RV so they can live in regret for the rest of their lives.