A LOP... How does it work?

[bostonangler]

Explain to me how a LOP works. If I'm seeling a bushel of apples to Iraqis for $5.00 and right now I get paid about 5,000 Dinar. My apples are not going down in price. Will the Iraqi people pay 5,000 1 Dinar notes? Or 500 10 Dinar notes? How does this make transactions easier? Now imagine this with something that costs hundreds of dollars like a computer or thousands of dollar for machinery or imported cars and trucks. I just don't see how dropping zeros and lopping makes sense. Importers are not going to reduce the price of products and more importantly, what good is their mondy if you cannot spend it out of the country? Seriously how can lopping work with world trade..... Thanks

[cooked]

Here is how it works.

A lopster sneaks up behind you, bends you over a barrel and..........

Then when you've had enough, you go th the bank and gove 1000000 dinar and get about $700 back.

[bostonangler]

Sorry there are a couple of bad typos... Let's try again...

Explain to me how a LOP works. If I'm selling a bushel of apples to Iraqis for $5.00 and right now I get paid about 5,000 Dinar. My apples are not going down in price. Will the Iraqi people pay 5,000 1 Dinar notes? Or 500 10 Dinar notes? How does this make transactions easier? Now imagine this with something that costs hundreds of dollars like a computer or thousands of dollar for machinery or imported cars and trucks. I just don't see how dropping zeros and lopping makes sense. Importers are not going to reduce the price of products and more importantly, what good is their money if you cannot spend it out of the country? Seriously how can lopping work with world trade..... Thanks

[Dalite]

Explain to me how a LOP works. If I'm seeling a bushel of apples to Iraqis for $5.00 and right now I get paid about 5,000 Dinar. My apples are not going down in price. Will the Iraqi people pay 5,000 1 Dinar notes? Or 500 10 Dinar notes? How does this make transactions easier? Now imagine this with something that costs hundreds of dollars like a computer or thousands of dollar for machinery or imported cars and trucks. I just don't see how dropping zeros and lopping makes sense. Importers are not going to reduce the price of products and more importantly, what good is their mondy if you cannot spend it out of the country? Seriously how can lopping work with world trade..... Thanks

I can't help you about a LOP; I don't know what that is.

However, if you are referring to a ReDenomination, as the CBI has been telegraphing, it would work like this...

You apples would sell for the equivalent in the new Iraqi dinar.

If you are buying your apples and using dollars, nothing changes on that side of the equation.

Where the 5000 dinar note with a value of 1170 dinar to the dollar was acceptable before, the 5 dinar note with a value of 1.17 dinar to the dollar would yield the exact same amount if you cashed it in at an Iraqi bank.

It is a revenue neutral process.

With the anticipated increase in value to even out a dinar to a dollar 1:1, will greatly simplify transactions, as apparently the Iraqis know what a dollar will buy, and the dinar will buy the same.

Nothing would limit you from spending the money out of the country when it becomes tradable,. You can't spend the notes you have out of the country unless the currency is tradable. On that, nothing changes.

There are numerous examples on the web that completely explain the process from start to finish, if you truly want to understand it.

Only you can make that decision.

Understanding it doesn't make it happen by magic, it just helps you get a better grasp of the possibilities.

It's not over until it's over...

Here is how it works.

A lopster sneaks up behind you, bends you over a barrel and..........

Then when you've had enough, you go th the bank and gove 1000000 dinar and get about $700 back.

Nice....

Go RV!!!

[Darin]

DaLite - your wrong

A re-denomination is adding notes to the currency.

This could be an entirely new set of currency, or just adding lower or higher denominations.

Example: UK re-denominated their coinage in like 1979

The OP's idea of a LOP is in terms or relative to a reverse-stock split

You end up with half the shares for twice the value.

Either way, your holding do not change in value in this scenario.

Reverse-stock splits are common practices for companies looking to not risk being delisted.

In the situation w/ the IQD:

25,000 becomes 25 (1000:1)

An old 25k note holds same value as new 25 note.

25k note will eventually be removed from circulation.

[Dalite]

There may be some truth in there, but when you remove the old and replace the new, at the end of the exchange you have the same liability.

It is probable that the ratio of one denomination to another will change.

The US does this on a 7 year cycle, under the guise of anti- counterfeiting measures, but no change in the value or denomination.

Always interesting to entertain a different approach, or understanding...

DaLite - your wrong

A re-denomination is adding notes to the currency.

This could be an entirely new set of currency, or just adding lower or higher denominations.

I believe the math part was what the question was about; and that is what I tried to address.

Example: UK re-denominated their coinage in like 1979

The OP's idea of a LOP is in terms or relative to a reverse-stock split

You end up with half the shares for twice the value.

Either way, your holding do not change in value in this scenario.

Reverse-stock splits are common practices for companies looking to not risk being delisted.

In the situation w/ the IQD:

25,000 becomes 25 (1000:1)

An old 25k note holds same value as new 25 note.

25k note will eventually be removed from circulation.

[DRV1804]

Here is how it works.

A lopster sneaks up behind you, bends you over a barrel and..........

Then when you've had enough, you go th the bank and gove 1000000 dinar and get about $700 back.

That us hilarious Cooked!! Best laugh of the day, I needed that!!