CNTV Video: Iraq to revalue its currency (9/7/11)

[fastarnie]

VIDEO PUMP HaHaHa suckers. Just kidding Lovin it. Just want it over, turn over a new leaf, or new beginnings.

[easyrider]

I believe xyzzy is a reincarnation of Dinarck. Could be him.

LMAO i was thinking the same thing i havent seen him around lately.

[MoneyMoney7]

LMAO i was thinking the same thing i havent seen him around lately.

We might be onto something.

[umbertino]

2 or 3 flippen years.

My point exactly.. That's the part which freakin' annoys me the most ( if true).....

[Dinarabot]

Hold the phone for a minute.......if the United States had a low currency, and they printed a hypothetical $1 bill to drop two zeros off the currency, would that be lop--ing??? Id be pissed off if i cashed my check for $1000 on friday, and on monday, my $1000 in cash is only worth $10???? And everything still costs the same...isnt that what we are debating????

[Francie26]

they are refering to the restructuring that it will take 2-3 years. Chill.

Great catch, easy!! Thanks!!!

[Dinarabot]

Hold the phone for a minute.......if the United States had a low currency, and they printed a hypothetical $1 bill to drop two zeros off the currency, would that be lop--ing??? Id be pissed off if i cashed my check for $1000 on friday, and on monday, my $1000 in cash is only worth $10???? And everything still costs the same...isnt that what we are debating????

[Francie26]

Exactly! Still dont see how some dont get it............the CBI is meaning that they will remove the 3zero currency from the circulation NOT off the note..LOL its seriously funny at ths point how you could just hang around no scream no its bad all day makes no sense

They continue to talk about how this process will take years and the currencies will co-exsist........at the end of the day a dinar is a dinar especially outside of Iraq

We are gettin so dang close!!!

I don't always like the things you say, but this time??? Love ya', man!! lol

[MrDinarman]

Sounds like a LOP as usual

[Francie26]

My point exactly.. That's the part which freakin' annoys me the most ( if true).....

No matter how angry your words, I can't feel whatever you feel in using them when you use that funny little emoticon. That particular one always cracks me up!!! It's ugly little frown is just soooo cute!!

[Mazzz27]

If you listen to the Iraqi "economist", he said that people are worried about an increase in the prices of commodities. Now, I'm no Iraqi economist, but a LOP wouldn't increase the prices of goods. A RV would temporarily increase prices and inflation, but it would eventually level out. IMO.

thats what ive been saying as well. they have enough resources...also, what ive been hearing is that in terms of oil...iraq remains mostly undiscovered.

[Francie26]

It always sounds like a lop to me....speak to me O great easyrider and tell me how stupid i am lol

lol

[Francie26]

Riiight, not much better. kinda the same thing...lol...which is Not the 2-3 week scenario (hcl then chap7 then rv) people are hoping for.

I think this is exactly what's going to happen and quite soon, at that!! (Bye the way, I'm a retired English teacher, so how much more authority than that is even possible??!!! hahaha)

I'm glad Jesus didn't have that state of mind

im here to stops the lies, im here to be the angel, opposite of the fallen

im here to balance the equation, i will not stop

And you're here to be a fool??!! (Just couldn't resist, Aqua Dude ).

[OKLAHOMA]

So is this the revalue 1000dinar to 1 usd, it revalued from 1170 to 1000?

[Dinarabot]

No. In an RD a NEW currency is issued that exchanges with the old at some fixed rate, like 1000:1 as is being discussed for Iraq. Prices, wages, everything in the new currency is also 1000x less. The two currencies are different and during the 2-3 year exchange period prices are listed in both. So using the example in the video, currently a 1000 dinar note buys 2 cans of soda. In the new currency a 1 dinar note will do the same, so in the new currency a can of soda will be 0.5 new-dinars while in the current currency its 500.

Prices and wages have to come down in a big RV as well (likely not for a small one). If they were to RV 1000:1 no one is going to pay the equivalent of $500 USD for a can of soda.

I guess what i was getting at is...when i cash my check for lets say $25,000dinar on friday, its still worth 25000 on monday, right???? As if the lower 25,10,5 denoms were to be put in circulation on monday, being the zeros were hacked off???

[Ridewithme38]

I guess what i was getting at is...when i cash my check for lets say $25,000dinar on friday, its still worth 25000 on monday, right???? As if the lower 25,10,5 denoms were to be put in circulation on monday, being the zeros were hacked off???

Yes, but now when you go out to spend that 25k note, but instead of using a USD $20 or a 25,000 dinar note...you can you a US $20, a 25,000 dinar or a 25 dinar note...and they all buy (basicly, the 25 dinar note is closer to about $21 worth) the same thing

[PD46]

Yes, but now when you go out to spend that 25k note, but instead of using a USD $20 or a 25,000 dinar note...you can you a US $20, a 25,000 dinar or a 25 dinar note...and they all buy (basicly, the 25 dinar note is closer to about $21 worth) the same thing

That's assuming there is no revalue and the 2012 budget is allowed to throw Iraq into a 115 trillion dinar debt.

You give the classic example of a redenomination.

Problem is, things don't add up with statements Iraq has made compared to a classic redenomination.

They are going to keep the value the same on the lower and current high denominations of dinar. They stated the redenomination would not change the value of the dinar. So how are they going to keep inflation at 5% in 2012, when it is currently at 7.1% and presently rising? A currency seamingly worthless, not traded openly on world markets, a lack of foreign investors, lack of investable infastructure being built, and 70% of the populaiton living in poverty and dumpster diving daily to survive is not going to change and turn around without a quickly revalued currency. No jobs and a worthless currency indicates that Iraqi leaders and Democrats went to the same school of economics.

Everything is pointing toward Iraq introducing the smaller denominations in with the larger denominations, with a value change to force the population to get the smaller denominations to trade. Meanwhile they pull in the larger denominations off of the streets and destroy them. It wil probably take 2 to 3 years to collect all of the large bills in this manner.

Redenominations are always done quickly, including Turkey as Iraq so loves to do comparisons too. True redenominations are done and finished usually within 60 to 90 days.

Iraq is calling for 2 to 3 years, so I'm doubting this is a true redenomination.

This is probably nothing more than a revalue and a 1 to 1 trade out over time.

Save your breath, lopsters. I have nothing in fine print that states this.

[Dinarabot]

Yes, but now when you go out to spend that 25k note, but instead of using a USD $20 or a 25,000 dinar note...you can you a US $20, a 25,000 dinar or a 25 dinar note...and they all buy (basicly, the 25 dinar note is closer to about $21 worth) the same thing

I still dont see them doing this....just doesnt add up....i guess it is not the same level as the U.S. switching from brown to green paper..thanx for the explanation...been in this speculation for only 2 years, but finally figured out the lop/rd...

Plus, are we forgetting that the IMF actually controls their value out of country....2.8bpd oil at $76 is a whole lotta income for a country that is "poor and war torn".

[HopefulTxn]

I guess what i was getting at is...when i cash my check for lets say $25,000dinar on friday, its still worth 25000 on monday, right???? As if the lower 25,10,5 denoms were to be put in circulation on monday, being the zeros were hacked off???

The problem is that the 25,000 dinar that you received on Friday would not be worth any less on Monday, but that simply a new, but separate, currency was issued that carried the same value/purchasing power.

IF a redenomination were to occur, on say Sunday, then you could still purchase on Monday what 25,000 dinar would cost you on Friday. The only difference would be that a new currency, with a higher (but proportional) exchange rate was also instituted. That would mean that you could either pay with your 25,000 note, or you could pay with the newly issued 25 dinar note. Both would have the same purchasing power as one another.

Now let's say that they did a redenomination and increased the value to 1 new dinar equaled 1 dollar. Would you be upset, if you were an Iraqi, and the value of the currency you had increased by about 16.25% over the weekend? Probably not.

[newbie1116]

2nd video posted today on the same news site....

http://english.cntv.cn/program/bizasia/20110908/104798.shtml

You may have to copy & paste it into your browser

[PD46]

2nd video posted today on the same news site....

http://english.cntv.cn/program/bizasia/20110908/104798.shtml

You may have to copy & paste it into your browser

That is the largest pile of BS and worst reporting I have ever heard. No real journalist with a reputation and career would have had anything to do with that pack of lies of reporting.

It states that Iraq is suffering from hyperinflation and compares there economy as one that is spiraling out of control. 7.1% is not spiraling out of control. Zimbabwee is spiraling out of control. Turkey. Brazil, and Argentina were spiraling out of control. Iraq, according to the CBI in June, is controlable and is stable now.

The reporting also implied that Iraq is printing money like mad and using the wild printing to desperately try and control "hyper" inflation.

Some government goober implied that inflation over the last 30 years has caused the dinar to loose value. Duh!!! The goober needs to remember that Sadam did a lot of stuff that crushed the true value of the dinar; and he did a lot of things that caused more inflation. Inflation alone did not create the dinar in its current state. Furthermore, it was the CBI that printed all of the large bills to control inflation, and they have made statements and printed articles talking about how they have gained control of inflation with a "stable" dinar............... not a hyper-inflated, spiraling our of control dinar, as these pathetic reporters are reporting.

The way this report makes the economy and the country sound, like Iraq is on the brink of collapse and desperate; Iraq would be lucky to get a toothpick manufacturer to invest money and resources in Iraq. The report makes Iraq sound like a country on the brink of economic collapse. Notice this report is coupled with articles like "Iraq to have the strongest currency in the middle east" and "The dinar to be equal to a dollar". My question is to the CBI, GOI, and these lying sorry excuses for reporters is "Which is it?"

Looks like the CBI is trying to twist the facts into lies. Perhaps Malaki's economist is correct about this being the biggest fraud in Iraqi history.

Are people so stupid and dumb that they remember nothing now?

Newbie1116 thanks for the post, and I'm not going off on you. It's the so-called, alleged reporters that I'm trashing because of all their lack of truthful reporting.