Enoch8 on Is it time to deleteting three zeros from the Iraq currnecy

[jupitergirl]

That call was Highlander.

[9/14/2011 11:25:42 PM] Enoch8: She basically said the same thing I did about the article....

[9/14/2011 11:25:54 PM] Enoch8: "We need a few days to decipher that one."

[9/14/2011 11:37:42 PM] Enoch8: Reviewing the article for the second time right now.... in a bit greater depth....

[9/14/2011 11:38:41 PM] Enoch8: So far..... in the first half, he is making the point that the cost of handling international transactions is heavy, using a banknote that is worth less than $21.

[9/14/2011 11:39:44 PM] Enoch8: Making the argument, that it is expensive to handle so many notes.... with so little value and is why dollarization is a problem.... because of the need for a note at least the value of the US $100.

[9/14/2011 11:40:24 PM] Enoch8: I can tell you this..... that the size transactions we are talking about..... even $100 Bills are way to expensive to handle.

[9/14/2011 11:41:07 PM] Enoch8: We need even here, to bring back the $1000 and $10,000 Notes..... or do a 10 to 1 revaluation, ourselves.

[9/14/2011 11:41:39 PM] Enoch8: Example:

[9/14/2011 11:42:44 PM] Enoch8: $ 1 Billion transaction in cash, at $1.00 value on Dinar, would be about a half a pallet in 25,000 IQD notes.

[9/14/2011 11:43:03 PM] Enoch8: At the current value.... it is about 500 pallets!

[9/14/2011 11:43:18 PM] Enoch8: Each should weigh about half a ton.

[9/14/2011 11:44:03 PM] Enoch8: so a Billion Dollar transaction in banknotes would require transport and storage of about 250 tons of paper.....

[9/14/2011 11:44:22 PM] Enoch8: To LOP..... does not fix that problem!!!

[9/14/2011 11:45:18 PM] Enoch8: Even using USD $100s amounts to roughly 62 tons of paper.

[9/14/2011 11:46:01 PM] Enoch8: That is like about 1000 suitcases each weighing about 40 lbs or so? roughly?

[9/14/2011 11:46:45 PM] Enoch8: Can you imagine to do a $10 or $20 Billion transaction in money trade back of petro dollars?

[9/14/2011 11:46:56 PM] Enoch8: It gets ridiculous.

[9/14/2011 11:47:54 PM] Enoch8: and...... someone has to hold physical cash to support digital..... roughly 12% to 15% even in fractional reserves requirements.

[9/14/2011 11:48:20 PM] Enoch8: That is a storage and handling nightmare.

[9/14/2011 11:48:40 PM] Enoch8: OK>>>>>> On to second half of article.

[9/14/2011 11:50:13 PM] Enoch8: Basically, he is saying the cost of handling the low values of $21 buying power money costs about 8% of the GDP.

[9/14/2011 11:51:11 PM] Enoch8: That alone is inflationary..... and can be reduced to 4 or 5% and this difference equates to about the average inflation rate.

[9/14/2011 11:51:15 PM] Enoch8: Interesting point.

[9/14/2011 11:52:40 PM] Enoch8: He goes on to say.... in addition, the accounting and marketing difficulties in price quotes are all cumbersome..... which one can imagine are also costly..... also adding to inflation.

[9/14/2011 11:57:13 PM] Enoch8: Then he talks about horizontal and vertical restructures.....

[9/14/2011 11:58:13 PM] Enoch8: This means simply to come up with higher values of lower numbers.... meaning a lower number money 1000 times smaller with greater buying power.... Horizontal....

[9/14/2011 11:58:15 PM] Enoch8: and

[9/14/2011 11:58:42 PM | Edited 11:58:57 PM] Enoch8: Less actual notes in print..... more digital.... Vertical....

[12:00:34 AM] Enoch8: And he concludes with pointing out, that this would increase the economy and decrease inflation..... and enhance foreign reserves abilities.... thereby strengthening the stability of the money.

[12:01:25 AM] Enoch8: Ending with notes.... that under strict guidelines.... compliant with all laws and regulations.

[12:01:45 AM] Enoch8: So...... this describes anything BUT a lop.

[12:02:15 AM] Enoch8: LOP does not add up mathematically into this equation for several reasons.

[12:03:01 AM] Enoch8: He is describing a revaluation.... and increase of the value and buying power.... of the largest note, to at least that or greater than the USD $100.

[12:03:05 AM] Enoch8: See?

[kjwayne]

Thanks for the post and "YES, I see where this is going". GO RV! and go big!

[steveflex7]

AMEN, AMEN and AMEN....let's do this already !

[pontiyak]

nice breakdown & evaluation...

The best things in life RV.

yak

[Carrello]

In case anyone is interested in what Enoch is commenting on, it is an article by Mohammed Qasim

Deputy Governor of the Central Bank of Iraq. Enoch and Highlander are still evaluating what they think it is stating and will report in a couple of days. :

* Is It Time Deleting Three Zeros From the Iraqi Currency

September 14th, 2011 04:44 pm · Posted in NEWS (Iraq & World Currency)

In light of economic conditions and volatile financial pressure and monetary

inflation that has befallen our country before, and led to negative effects on

the regularity of the commercial market and the labor markets and production and

living standards of citizens, it has generated distortions many structures,

economic relations, among which was the Activity block cash many

zeros of little value and way that is not commensurate with the future

developments in the present and the future of the Iraqi economy, which requires

a solution to these conditions and offal, and these solutions reform the

management of currency cash through the structure and the deletion of zeros to

control the flow and management of the cost of the cash block

optimally.

The trading bloc cash exporting more than 30 trillion

Iraqi dinars to the various groups and reflected by the number of securities

traded $ 4 trillion paper money is the product of a long period of inflation and

economic decline, rising, for example, the index of consumer prices Bassas 1993

from 100 to 200,000 in the midst of the year 2003, which means that the item

that was sold for 100 dinars became sold for 200,000 dinars … And so on. Under

such circumstances, the deterioration of the value of the coin currency rose

greater than 25 dinars to 25,000 dinars, which means that inflation is added,

these zeros

Categories do not fit with the current currency of the

current economic situation and the next. For example, before the outbreak of the

Iran-Iraq war was the category of 25 dinars equivalent to $ 75 purchasing power

of the time or the equivalent in the present 300 thousand dinars. I said

inflation in the country over three decades of zeros to the currency, although

this did not raise those zeros of the purchasing power of the largest category

of the coin is 25 thousand dinars, which is equal to today’s $ 21. We need today to restructure the currency. Valasfar mean large

cluster of large cash in circulation today of about 30 trillion dinars, which

requested the circulation of cash directly and significantly to the cost of

sorting and counting and it takes time and spatial properties and security.

In the price system, is the price is expressed in exchange value

and thus the structure of costs and payments of salaries and the Cubs and

eventually become Akiem all transactions not commensurate with the needs of the

country into a cash management system consistent with the restructuring of the

real sector and price levels reached. The country needs a monetary system is

easy to handle small groups and large reflect the real cost of that

structure.

Especially if we know that inflation means self-rising

prices of cash money price of goods and services (ie, how much money we need in

exchange for package of goods and services .. the more increase the amount of

money allocated in exchange for the package itself means that there is inflation

or a rise in the price of money) . note that the value of money is inversely

proportional with the price of money, especially if Maalmana that price is the

value of goods and services expressed in cash. Since the money is anything

agreed upon the community to become a broker of exchange and store of value and

unit of account, the money (legal) issued by the Monetary Authority under the

law and with the power of discharge of the receivables and is seen as a social

institution Social Institution increases the efficiency of the economy and

economic ventures in moving the exchange efficiency of the institution social or

money, and vice versa. Has led to high inflation continued currency of No. 23

billion dinars in 1991 to about 30 trillion dinars at the present time, the high

currency the largest category of 25 dinars to 25,000 dinars over time. In this, draw the inflation figures of new currency in circulation by

adding three zeros, which increased the amount of cash operations in nominal and

arranged the production costs of large quantities of them were accompanied by

operations, storage, and distribution of promise, sort and check to accompany

her and the levels increase, helped to increase the operational risks associated

with Operational Risk.

In the light of price stability and

optimism in Iraq’s future development, it became necessary to hold a radical

overhaul of management system of currency and the re-structure commensurate with

the structure of the new price is different, stable and levels of wages and

salaries, which differed significantly from the last thirty years, as well as

handling the mass of large cash weak components so that become the largest

category of currency, but not worth $ 21 U.S. for the time being. Noting that

the increase in gross domestic product, Iraq’s $ 140 billion at year-end 2010 to

more than $ 300 billion at the end of 2015, will raise the monetary mass

exported from the 30 trillion dinars to about 70 trillion dinars. And

installation in the structure of the weak currency as mentioned above may take

the added cost is called the cost of cash transactions in terms of traded

between individuals and within individuals, banks and the banking

system.

The demand for the U.S. dollar (in particular

the category of $ 100) has become an urgent need for the settlement of cash

transactions in the local market beyond the control of monetary policy to the

fact that market is looking at the transactions into categories, the largest

currently unavailable, but it reflected the category of U.S. currency large for

easy carrying and handling. Therefore, the monetary system of Iraq need to

reform the administrative order to have a monetary of high purchasing power in

the trading easy pregnancy and acquisitions in order to facilitate exchanges

cash for the purposes of transactions and trading noting that the imbalance in

the structure or installation of monetary units have the depth of the problems

of “dollarization”, which impacted undesirable on the effectiveness and

performance of monetary policy.

In Sweden, for example, that where

there is currently one of the best systems of cash payments in the world,

however, the cost of trading cash counting, sorting, transport and storage of

the coin cost the national economy gain of 4% of the GDP of Sweden. How can we

compare this in a country like Iraq shall be managed so amounts of cash

tremendous weak structure, which adds the cost of cash transactions may have up

to 8% or more of the gross domestic product, a burden borne by the individual in

his dealings, which took reduces the efficiency of the exchange as a social

support for the institutions of the economy different, including the market as

evidenced by the large cash transactions are limited to the payment in U.S.

dollars, which means substituting other country’s currency in circulation for

the award of cash transactions because of falling efficiency and installation of

the current monetary bloc.

And raises the multiplicity of the zeros on

the categories of currency with a lower purchasing power has enormous

difficulties, including the difficulty to express the monetary value as well as

the difficulties of monetary operations itself and the technical problems in the

recording of statistical data and registration in the accounting books and

changing the computer systems and settlement systems as well as show price

figures for a long difficult sometimes even counters or digital device, read the

digit at gas stations or other digital devices.

On this basis, the need

to reform the system of cash payments through the following

advantages:

First

- At the horizontal level: delete the three

zeroes

- Transfer of 30 trillion dinars to $ 30 billion by deleting three

zeros from the current currency and replace it with a new currency making it

easier to handle arithmetic with numbers are less numerous on the level of the

accounts of the federal budget, budgets of banks and companies as well as

balancing family cash (individuals) without arranging any change or change of

income or monetary wealth of the people, the natural and moral as well as the

lack of impact on the contracts and obligations between natural persons and

legal entities all. It generates a so-function sports homogeneous degree zero

Homogenous Function of Degree Zero, as long as the amount of new money covers

the smaller number in the package of commodity exchange in the same old money

with the largest number.

II.

- On the vertical plane, the

restructuring of the currency and installed

- As the large category of $

25,000 a JD alone (two thirds of the amount of securities traded), the biggest

issue categories mean reduction of four trillion banknote currently in

circulation and converted to a number equal to (2.8 billion

banknotes. Stakhtzel as large groups of the coin about 90% of the total

categories exported to the circulation.

Based on the foregoing, the cost

of cash transactions between individuals, banks, and between individuals

themselves, natural or moral will fall inevitably in terms of the cost of

counting and checking. If Maalmana, the banknotes traded eroded the average over

a period of five years, which means the replacement of enormous mass weak

structure and the consequent costs of printing specifications, a high-security

burden is borne by the authority of another version of the remnants of a cash

management system cash generated by the economic downturn and the former has

become not fit, stability and economic progress desired.

Finally, that

the reasons for changing the currency of the current reflects the fruit of

economic stability and success of the policies of the Iraqi Central Bank in

maintaining stability and of stability of the Iraqi dinar exchange rate and

lower inflation to the level of one decimal place and build reserves of foreign

support of the Iraqi dinar at levels not previously achieved during the last

thirty years ago, which is a cover Iraqi currency. In addition to improving the

system of cash payments and leave him stuck to the past and the actual

composition and its imbalances and economic re-construction on the future of

economic development and its data in real and nominal.

So, has prepared

the Iraqi Central Bank strategic long-term viable future, when the availability

of the appropriate opportunity and gradually according to clear instructions and

regulations, guidelines provide protection of the rights and interests in line

and the stage of prosperity ahead, economic growth is expected in terms will

increase the average per capita income in the coming years to more than once and

will step steps towards economic progress, which requires a reform of the waste

stages of inflation and may require some legislation in this regard.

D.

The appearance of C Advanced Member

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Posted Yesterday, 03:57 PM

* Is It Time Deleting Three Zeros From the Iraqi Currency

September 14th, 2011 04:44 pm · Posted in NEWS (Iraq & World Currency)

In light of economic conditions and volatile financial pressure and monetary

inflation that has befallen our country before, and led to negative effects on

the regularity of the commercial market and the labor markets and production and

living standards of citizens, it has generated distortions many structures,

economic relations, among which was the Activity block cash many

zeros of little value and way that is not commensurate with the future

developments in the present and the future of the Iraqi economy, which requires

a solution to these conditions and offal, and these solutions reform the

management of currency cash through the structure and the deletion of zeros to

control the flow and management of the cost of the cash block

optimally.

The trading bloc cash exporting more than 30 trillion

Iraqi dinars to the various groups and reflected by the number of securities

traded $ 4 trillion paper money is the product of a long period of inflation and

economic decline, rising, for example, the index of consumer prices Bassas 1993

from 100 to 200,000 in the midst of the year 2003, which means that the item

that was sold for 100 dinars became sold for 200,000 dinars … And so on. Under

such circumstances, the deterioration of the value of the coin currency rose

greater than 25 dinars to 25,000 dinars, which means that inflation is added,

these zeros

Categories do not fit with the current currency of the

current economic situation and the next. For example, before the outbreak of the

Iran-Iraq war was the category of 25 dinars equivalent to $ 75 purchasing power

of the time or the equivalent in the present 300 thousand dinars. I said

inflation in the country over three decades of zeros to the currency, although

this did not raise those zeros of the purchasing power of the largest category

of the coin is 25 thousand dinars, which is equal to today’s $ 21. We need today to restructure the currency. Valasfar mean large

cluster of large cash in circulation today of about 30 trillion dinars, which

requested the circulation of cash directly and significantly to the cost of

sorting and counting and it takes time and spatial properties and security.

In the price system, is the price is expressed in exchange value

and thus the structure of costs and payments of salaries and the Cubs and

eventually become Akiem all transactions not commensurate with the needs of the

country into a cash management system consistent with the restructuring of the

real sector and price levels reached. The country needs a monetary system is

easy to handle small groups and large reflect the real cost of that

structure.

Especially if we know that inflation means self-rising

prices of cash money price of goods and services (ie, how much money we need in

exchange for package of goods and services .. the more increase the amount of

money allocated in exchange for the package itself means that there is inflation

or a rise in the price of money) . note that the value of money is inversely

proportional with the price of money, especially if Maalmana that price is the

value of goods and services expressed in cash. Since the money is anything

agreed upon the community to become a broker of exchange and store of value and

unit of account, the money (legal) issued by the Monetary Authority under the

law and with the power of discharge of the receivables and is seen as a social

institution Social Institution increases the efficiency of the economy and

economic ventures in moving the exchange efficiency of the institution social or

money, and vice versa. Has led to high inflation continued currency of No. 23

billion dinars in 1991 to about 30 trillion dinars at the present time, the high

currency the largest category of 25 dinars to 25,000 dinars over time. In this, draw the inflation figures of new currency in circulation by

adding three zeros, which increased the amount of cash operations in nominal and

arranged the production costs of large quantities of them were accompanied by

operations, storage, and distribution of promise, sort and check to accompany

her and the levels increase, helped to increase the operational risks associated

with Operational Risk.

In the light of price stability and

optimism in Iraq’s future development, it became necessary to hold a radical

overhaul of management system of currency and the re-structure commensurate with

the structure of the new price is different, stable and levels of wages and

salaries, which differed significantly from the last thirty years, as well as

handling the mass of large cash weak components so that become the largest

category of currency, but not worth $ 21 U.S. for the time being. Noting that

the increase in gross domestic product, Iraq’s $ 140 billion at year-end 2010 to

more than $ 300 billion at the end of 2015, will raise the monetary mass

exported from the 30 trillion dinars to about 70 trillion dinars. And

installation in the structure of the weak currency as mentioned above may take

the added cost is called the cost of cash transactions in terms of traded

between individuals and within individuals, banks and the banking

system.

The demand for the U.S. dollar (in particular

the category of $ 100) has become an urgent need for the settlement of cash

transactions in the local market beyond the control of monetary policy to the

fact that market is looking at the transactions into categories, the largest

currently unavailable, but it reflected the category of U.S. currency large for

easy carrying and handling. Therefore, the monetary system of Iraq need to

reform the administrative order to have a monetary of high purchasing power in

the trading easy pregnancy and acquisitions in order to facilitate exchanges

cash for the purposes of transactions and trading noting that the imbalance in

the structure or installation of monetary units have the depth of the problems

of “dollarization”, which impacted undesirable on the effectiveness and

performance of monetary policy.

In Sweden, for example, that where

there is currently one of the best systems of cash payments in the world,

however, the cost of trading cash counting, sorting, transport and storage of

the coin cost the national economy gain of 4% of the GDP of Sweden. How can we

compare this in a country like Iraq shall be managed so amounts of cash

tremendous weak structure, which adds the cost of cash transactions may have up

to 8% or more of the gross domestic product, a burden borne by the individual in

his dealings, which took reduces the efficiency of the exchange as a social

support for the institutions of the economy different, including the market as

evidenced by the large cash transactions are limited to the payment in U.S.

dollars, which means substituting other country’s currency in circulation for

the award of cash transactions because of falling efficiency and installation of

the current monetary bloc.

And raises the multiplicity of the zeros on

the categories of currency with a lower purchasing power has enormous

difficulties, including the difficulty to express the monetary value as well as

the difficulties of monetary operations itself and the technical problems in the

recording of statistical data and registration in the accounting books and

changing the computer systems and settlement systems as well as show price

figures for a long difficult sometimes even counters or digital device, read the

digit at gas stations or other digital devices.

On this basis, the need

to reform the system of cash payments through the following

advantages:

First

- At the horizontal level: delete the three

zeroes

- Transfer of 30 trillion dinars to $ 30 billion by deleting three

zeros from the current currency and replace it with a new currency making it

easier to handle arithmetic with numbers are less numerous on the level of the

accounts of the federal budget, budgets of banks and companies as well as

balancing family cash (individuals) without arranging any change or change of

income or monetary wealth of the people, the natural and moral as well as the

lack of impact on the contracts and obligations between natural persons and

legal entities all. It generates a so-function sports homogeneous degree zero

Homogenous Function of Degree Zero, as long as the amount of new money covers

the smaller number in the package of commodity exchange in the same old money

with the largest number.

II.

- On the vertical plane, the

restructuring of the currency and installed

- As the large category of $

25,000 a JD alone (two thirds of the amount of securities traded), the biggest

issue categories mean reduction of four trillion banknote currently in

circulation and converted to a number equal to (2.8 billion

banknotes. Stakhtzel as large groups of the coin about 90% of the total

categories exported to the circulation.

Based on the foregoing, the cost

of cash transactions between individuals, banks, and between individuals

themselves, natural or moral will fall inevitably in terms of the cost of

counting and checking. If Maalmana, the banknotes traded eroded the average over

a period of five years, which means the replacement of enormous mass weak

structure and the consequent costs of printing specifications, a high-security

burden is borne by the authority of another version of the remnants of a cash

management system cash generated by the economic downturn and the former has

become not fit, stability and economic progress desired.

Finally, that

the reasons for changing the currency of the current reflects the fruit of

economic stability and success of the policies of the Iraqi Central Bank in

maintaining stability and of stability of the Iraqi dinar exchange rate and

lower inflation to the level of one decimal place and build reserves of foreign

support of the Iraqi dinar at levels not previously achieved during the last

thirty years ago, which is a cover Iraqi currency. In addition to improving the

system of cash payments and leave him stuck to the past and the actual

composition and its imbalances and economic re-construction on the future of

economic development and its data in real and nominal.

So, has prepared

the Iraqi Central Bank strategic long-term viable future, when the availability

of the appropriate opportunity and gradually according to clear instructions and

regulations, guidelines provide protection of the rights and interests in line

and the stage of prosperity ahead, economic growth is expected in terms will

increase the average per capita income in the coming years to more than once and

will step steps towards economic progress, which requires a reform of the waste

stages of inflation and may require some legislation in this regard.

D.

The appearance of Mohammed Qasim

Deputy Governor of the Central Bank of

Iraq

LINK

LINK