Questions for the 9-28-11 chat

[TimS]

Hi Adam, I hope you see this because it was posted so late.

My question is: If I am an average Iraqi with 1000,000.00 IQD in a bank account, when the CBI raises the value, how will electronic money be treated? If the rate comes in at a dollar, will that average Iraq have a million dollars in the bank?

Thank You

C'mon man.....if an Iraqi has 1,000,000 dinar in bank pre-RV....he would then have 1,000,000 dinar in bank post-RV. The difference to Iraqis will be that their dinar will have much more buying power in country. The only way an Iraqi would have $1,000,000US would be if he exchanged his dinar for dollars...if that is within the legal/financial rules of Iraq.

Look at it from a US citizens point of view.....if you have $1,000,000 dollars in a US bank, you could have it exchanged for an equivalent of British pounds....but for what reason? You can't spend British pounds in the US....they are only good in Britain. So why would an Iraqi want US dollars? Unless he was going to travel to the US and then I'm sure there are limits on the amounts you can exchange?

Edited September 27, 2011 by TimS

[jaman]

Adam, Any updates for us on the Vietnamese Dong? Will they revalue before or after the Dinar ? Thanks for any input you can provide- RK

same here with GM building a plant there and Honda starting a new line of cars and Kohlers bathroom fixture building a plant,what and how long would it take for the Dong to RV ?

Edited September 27, 2011 by jaman

[robinsin]

3 Questions for Adam:

1. What is the status of ERBL and HCL?

2. Please update re Chapter VII requirements being met? If not met, what is yet to be done?

3. Has any official statement been made saying the zeroes will be lifted?

4. When looking at all the requirements needed to RV, what is left to be done that can be verified by a reputable source?

Thanks! Looking forward to the chat, as usual!

[RodandStaff]

Being a former cheese head resident... from the upper North West of the state... I just gotta ask ya... do you think the Packers will go all the way this year??? Do ya, do ya???

Sorry... I really do value your dinar expertise, I'm just trying to keep it light and add a wee bit of all around life to this "tense situation"! Thanks for doing what you do Adam... really!

Edited September 27, 2011 by RodandStaff

[Beachwalker]

Any thoughts on this?:

<a class="ecxblog-link" style="font-size:18pt;color:rgb(0, 128, 0)" shape="rect" href="http://r20.rs6.net/tn.jsp?llr=6sdm6agab&et=1107860002936&s=536&e=001zn5xVqYfTmAL1nxSBAweqa3NHnsRuM51DnNxLHGlUuY4UyXRrkRhhyaW9OZUjue4YEmRH_7uBNgz3P540TJyIMe2SD8DVgQd8GoLWWOae4I8Rt62C62GNjtPHhMK-fRPkJkdJH18PR5LdvvwzY2bFgrQlNA_9C_6_9u7AFFMJKtuew_BTzEobMdMDThKOWzdEvtKRmqJFUyGHemPb9wTZV4sxYDyQQPd" id="ecxblog-title-link" target="_blank">Med Chat 9/27 12:33 Dinar Speculator (XBarbarian post)

Med says to (12:33:52):

STOP

I GOT SOME VERY INTERESTING NEWS

Med says to (12:34:11):

THIS IS ABOUT THE MEETING THAT SHABIBI HAD

WITH THE IMF AND WB

SONNY JUST CALLED ME

AND READ IT TO ME AFTER HE HAD IT TRANSLATED THE INFO VERBALLY

THIS IS ABOUT THE TRANSCRIPT OF THE MEETING

THE IMF AND WORLD BANK RIPPED SHABIBI

TOLD HIM HE WAS TOTALLY AT FAULT FOR THE ECONOMIC FAILURE IN IRAQ

THAT HE SHOULD HAVE REVALUED LONG AGO

AND HE TOLD THEM THAT THE GOVT WAS NOT STABLE

THEY TOLD HIM TO NAME ONE THAT IS

THAT THERE IS NO PERFECT CONDITION

AND THAT THE REASON NOONE WAS INVESTING IN IRAQ WAS IRAQ HAD NO TRADEABLE CURRENCY

AND THAT YOU CANNOT SAY YOU ARE GOING TO A FREE MARKET ECONOMY

THEN DONT HAVE A TRADEABLE CURRENCY TO MAKE IT WORK

THAT HE WAS PRETTY MUCH THE REASON THAT MALIKI HAS LOOKED LIKE AN IDIOT AND NOTHING WAS DONE ON THE ECONOMIC SIDE

THE VERBAL INTERPRETATION IMPLIES AN URGENCY

TO REVALUE THE DINAR NOW

OK THAT IS ALL I GOT

TY

[average joe]

if they are not out of chapter #7 how can they sell oil and purchase airplanes

it seems we dont ever get the best informantion or first news.only after the fact

but as always thanks for what you do .

[hame55]

Adam,

Don't you think that all of the web based sites will stop selling Dinar soon before a Dinar RV or a correction in its value? Why would someone be selling $100.00 dollar bills for a nickel if tomorrow or at least in the near future they would be worth their true value? Thanks!

Quad

ANSWER-----

Dealers don't know when the RV is either, same as us. They will sell until the last day. What makes you think they know? Why would they possibly know?

[ems]

Can you please clarify October 1, 2011 vs January 1, 2012 as the start of Iraq's fiscal year? Which date carries more weight in your opinion?

[jst2ducky]

Adam,

Is it true there are "sanctions/ laws etc. still yet to be passed before the dinar is tradeable on Forex?

[tampabay6]

Adam, during last week's chat (9/21) you expressed an opinion that it is more likely to RV at a low rate, like $.10, then climb up in several steps to a higher rate like $3.00 or more, and we would hope that they would not place a time limit for us to cash in the large denominations, so that we could wait for the higher rate if we have the patience to do that. However, some sources have said the RV is likely to be a "managed float" which would not be able to change more than 2.5% every 90 days for the first 2 years. If that is the case we had better hope they get it right at the beginning, because I believe that money is safer being invested under our control than left in the hands of Iraq for several years for a return limited to about 10% per annum. (God Forbid that, if our troops really do leave.) Your take on this?

Quotes related to question:

Quote from chat 9/21:

[Adam Montana] I know many people want to hear it will RV to $3 or $4

[Adam Montana] I think it will come out much lower, then climb up to that range

[Adam Montana] because if they come out high, then they have an IMMEDIATE LIABILITY - a LOT of money owed to cash in the dinar currently in circulation

[Adam Montana] but if they come out low, like at .10 - then they can grab up a bunch of the quick sellers, and resell at a higher rate

[Adam Montana] remember, the CBI makes money on every transaction

[Adam Montana] so the more times they can get people to buy and cash in, the more money they make

[Adam Montana] if they come out at .10, then raise to .15, then raise to .20. all the way to $3.00... they make MUCH more than if they do a straight RV to $3

[Adam Montana] I hope that makes sense

[Adam Montana] HOPEFULLY we will be able to hold our currency, watch all the crazies cashing in, buying, selling, etc... and just like a great stock, just wait until it hits $3 to sell

[Adam Montana] if they place a limit on time to cash in the big notes, then we just take our profit and be happy

[Adam Montana] That was a GREAT question though, and like I said - I hope I'm wrong!

[Adam Montana] I'd much rather take a huge gain immediately

[Adam Montana] but I am prepared to invest wisely and ride this bull any way it needs to be ridden

The post from which the following quote was taken, was rated +35, which I guess means either that many people think it is true, or they hope and pray it is true, or they just like the sound of it... I have seen a whole bunch of posts expressing a position very similar to this one.

The Dinar will RV at current competitive mid-east currency values. When it RV's it will be held on a "Regulated Float", which means whatever it RV's at, it can only fluctuate by 2.5%, up or down, every 90 days for 2 years. It will not RV low, then rise quickly because of this fact!!! The Kuwaiti Dinar stands at $3.65 USD. The ONLY conclusion you can come to, and as Shabibi has said, it will RV at around what it was worth before the war. It will RV around the mid 3 dollar range. If you have alot, hold onto some because if it consistently rises by 2.5% every 90 days after the RV, then it will gain a little in a matter of months, but if the mid 3 dollar range is good for you, as it is for me, cash out and become debt free!!! Take the rest and invest in lots of gold & silver!!! GOOD LUCK & GOD BLESS!!! SLASH~

[tampabay6]

P.S. (part 2) to my question posted 9/27 at 9:47pm; I am still not quite sure how to edit a previous post:

Adam, If the dinar did RV at a lower rate like $.10, and then rise to a higher rate like $3.00+ over a period of, let's say, 6 months to 3 years - considering that Iraq needs to import almost EVERYTHING - power plants, high speed railroads, communications, military equipment and aircraft, water and sanitation plants, and on and on and on... would not an exchange rate that made multiple major changes in that time frame (i.e. much more than the aforementioned 2.5% per 90 days that the "managed float" would supposedly entail, and presumably with no advance notice) - absolutely wreak havoc on the ability of importers in Iraq and their trading partners, to know what their costs, profit margins and sales would be for the next several years? How do you trade in such an unpredictable environment? Why would the CBI do that?

[Adam Montana]

Thread temporarily closed, will be opened when the chat is posted!

I'll be in chat answering these questions in about a half hour to an hour. See you there!