The RV Comes In Low Poll

[Cosmo]

Thanks everyone for your inputs and votes!!! Thumbs up to you for participating!

My personal take on this is that I will have to mend a few major financial problems and enjoy life some, as well as reinvest in other lucrative investments including starting a small business to sell classic literature. (I voted for #2, "Cash in part of it to fund other investments. Hold on to the rest.", but like other people, will spent a bit to fix problems and enjoy life too!

[Sam I Am]

I was reading on the IMF web site (don't have link) how they determine value of a currency. GDP has a lot to do with valuation, however, what I found interesting? They also compare currencies in the region of subject country. That being said, and if......you place any credibility in the reported intentions of Dr. S, I really don't see anything like you are proposing. He has repeatedly indicated that "Iraq will have the most valuable currency in the Region" how does that translate to $.15 or even $.25? Moreover, when you look at the contracts recently approved for the EXPORT of oil and the size of the exports, contracts to harvest Natural Gas for the European use (at current burning into the atmosphere) and then the restoration of the agriculture (thus the turmoil about Turkey damning the water flow) seems that the reported budget will in no fashion support even $.25 rate. I've been following this for a couple of years, it has always been my hypothesis, a low exchange rate would allow speculators buy of the country for pennies on the dollar. Did it ever cross your mind.....Iraq could very well be one of the RICHEST countries in toe world? Ponder that for a moment.....then reflect on a currency valuation of $.15 ..... now look back on the statement...... the highest vlaue in the region....... I have in my research seen that when the CBI indicates their daily auctions lots of folks think that they are selling IQD for USD, when in effect they are selling IQD, backing up some of their reserves in gold. Folks keep yelling that they are putting this stuff back into circulation, when in reality they are stockpiling the OOO's and removing USD's from circulation in their country (also found elsewhere on this forum)

Relative to cashing in my IQD I have everything I need, and even at a very low rate, Im still debt free! As far as cars are concerned, I don't buy new cars, and the newer cars I buy, I keep forever.... Never put six figures on four wheels....Just saying Peace

I don't think you understand how currency valuation works. Just because a country is wealthy doesn't mean they'll have the highest valued currency. The US is one of the largest countries in the world (tied with China at #3) with vast natural resources and strong manufacturing and service industries. And yet there are nine countries with a more valuable currency. Ten if you count the euro. At the same time Japan has a very high standard of living with a highly developed manufacturing industry and their currency is worth just over a penny. China is becoming an economic superpower and the Yuan is valued at $.15. As for regional currencies Kuwait, Jordan, Oman, and Bahrain are more valuable than the USD but Saudi Arabia, Qatar, and UAE are all around $.27. Syria's is at $.02. Yemen is at $.004 and Iran is at $.00009. So even if Iraq becomes one of the richest countries in the world that doesn't automatically translate into having one of the most valuable currencies.

Now, for Iraq to become one of the wealthiest countries in the world they'll need to increase their GDP significantly. (Right now their GDP is lower than that of those booming, thriving economies of Angola, Bangladesh, Kazakhstan, and Nigeria.) That won't happen overnight. It will take decades to improve their GDP to the point where they can rank in the top ten. They'll need to develop their manufacturing and service industries so that their GDP isn't all dependant on oil as it is now.

Also I think you're assuming that the only way to have the region's most valuable currency is with a straight up RV. If they re-denominate (lop) and then allow the currency to float upward over the years as their economy improves and their country stabilizes their currency could eventually rise back to $3+. To interpret the comments about having the region's most valuable currency as a 4000 to 1 RV is a tad presumptuous IMO. Statements like that SCREAM RD to me. There's just no way to get there without a lop. So if you want to make a good return on your dinar investment you better hope for less than a quarter because $.86 or more means LOP LOP LOP.

Edited October 17, 2011 by Sam I Am

[Mongo]

What does my Gut instinct tell me?

That my End-stinks and my Gut is to big

[xyzzy]

First of all if it comes in over a nickel I'd be astounded, but for the sake of argument at 15 cents I'd cash in enough to cover my initial investment and buy some things I want like a new car. I'd have to assume at 15 cents that I was wrong because the money supply would have miraculously contracted practically overnight and they intend to bring the IQD up to parity with the USD so this must just be a sucker rate. If it comes in at less than a nickel I'll know that I was right and I'd probably cash it all in as I wouldn't expect it to go much higher than that.

Agreed. If it comes in at 0.05 or greater than there is no "room" left for an RD and I'd leave a big chunk in the game (taking out maybe 1/3) but if it RV's to 0.0015 so a 1000:1 RD is on the way, or even 0.015 that a 100:1 RD is coming, then I'd cash out everything.

[Cosmo]

What does my Gut instinct tell me?

That my End-stinks and my Gut is to big

Mr. M That was funny!!

Remember the Cisco Kid?

OHHH MONDO...

OHHH COSMO...

[Canuklady]

you are absolutely correct i have read the documents from the IMF as well and well i wont put how much was mentioned because many will bash and wont believe it anyhow. Lets just say its an awesome rate. I read some of the contracts last year in a pdf file but for some reason they are gone and i cant find them anymore i dont know ill keep looking to try and see if i can dig them up. Honestly a .10-30. rate will not fit their budget and honro contracts unless they re did all their contracts which i highly doubt plus why would you wanna peg your currency so low to a currency that is devaluing and eventually going to collapse and yes im speaking of the U.S. dollar. The IMF has stated the U.S dollar is losing confidence

I like your thinking. And Betty Boop's. This is encouraging. I started out doing 10 cent math and recently bumped it to 86 cents. Anything above that would be sooooo sweet! I try not to think about it cause it would keep me up at night. If it comes in below 50 cents, I am just cashing in 2 million, and holding on to the rest. If the IQD comes in first, then I would also have to buy more VND. RV! By Christmas please!

[hitman]

I am holding it all..... going to wait till they declare it as being worthless.... This way I know for sure that no one will try and steal my two wall of 25k note wallpaper with the 5k border.......

[dhardage]

I am holding it all..... going to wait till they declare it as being worthless.... This way I know for sure that no one will try and steal my two wall of 25k note wallpaper with the 5k border.......

I'll tell ya what, Hit man. If it is deemed worthless, you can have mine. It doesn't match my furniture!

[detroitjazzman]

I don't think you understand how currency valuation works. Just because a country is wealthy doesn't mean they'll have the highest valued currency. The US is one of the largest countries in the world (tied with China at #3) with vast natural resources and strong manufacturing and service industries. And yet there are nine countries with a more valuable currency. Ten if you count the euro. At the same time Japan has a very high standard of living with a highly developed manufacturing industry and their currency is worth just over a penny. China is becoming an economic superpower and the Yuan is valued at $.15. As for regional currencies Kuwait, Jordan, Oman, and Bahrain are more valuable than the USD but Saudi Arabia, Qatar, and UAE are all around $.27. Syria's is at $.02. Yemen is at $.004 and Iran is at $.00009. So even if Iraq becomes one of the richest countries in the world that doesn't automatically translate into having one of the most valuable currencies.

Now, for Iraq to become one of the wealthiest countries in the world they'll need to increase their GDP significantly. (Right now their GDP is lower than that of those booming, thriving economies of Angola, Bangladesh, Kazakhstan, and Nigeria.) That won't happen overnight. It will take decades to improve their GDP to the point where they can rank in the top ten. They'll need to develop their manufacturing and service industries so that their GDP isn't all dependant on oil as it is now.

Also I think you're assuming that the only way to have the region's most valuable currency is with a straight up RV. If they re-denominate (lop) and then allow the currency to float upward over the years as their economy improves and their country stabilizes their currency could eventually rise back to $3+. To interpret the comments about having the region's most valuable currency as a 4000 to 1 RV is a tad presumptuous IMO. Statements like that SCREAM RD to me. There's just no way to get there without a lop. So if you want to make a good return on your dinar investment you better hope for less than a quarter because $.86 or more means LOP LOP LOP.

"You don't think I understand how currency works" Good luck with that! Im not some kid trying to get rich, prove myself, or make some mark in the world. RV/RI/LOP what ever.....Im good financially set for the rest of my life (sold a very profitable botique Real Estate Company and Mortgage company in 2005) Really don't want to burst your bubble, however, you cannot just make statements from your soap box pointing fingures and expect that because you said it...Its true. You look at your investment/speculation however you want to, Me? Im going to follow what my education leads me to, along with a couple of revaluations under my belt. I got this same advice while stationed in Germany ion the 70's, all indications indicated that the DM would revalue from a rate of DM 4.26 to % 1.00 to a rate of DM 2.10. I ordered my US bank to transfer my entire savings to my German Bank.....within one week I more than doubled my money!. Not bad for a know nothing! I could go on and on, maybe I got lucky......or......as my signature indicates.....I dont follow.....or as my dad use to say....."Reading is fundamental......Understanding what you read is crucial" Peace Jazz

[SurfingTheDinarWave]

I have several action plans for rate ranges, one thing in this is .15 shouldn't happen due to IMF stipulations on rate post of at least more than $1. Though if for some reason it did come out that low I would ash some for headache remedy and reinvestment with a little cushion for a extended waiting period of cashing out more plus other investments profit time line, also some more emergency preparedness. Other investments would be non-volatile in nature and create some jobs in my community,and some precious metals.

[SurfingTheDinarWave]

I don't think you understand how currency valuation works. Just because a country is wealthy doesn't mean they'll have the highest valued currency. The US is one of the largest countries in the world (tied with China at #3) with vast natural resources and strong manufacturing and service industries. And yet there are nine countries with a more valuable currency. Ten if you count the euro. At the same time Japan has a very high standard of living with a highly developed manufacturing industry and their currency is worth just over a penny. China is becoming an economic superpower and the Yuan is valued at $.15. As for regional currencies Kuwait, Jordan, Oman, and Bahrain are more valuable than the USD but Saudi Arabia, Qatar, and UAE are all around $.27. Syria's is at $.02. Yemen is at $.004 and Iran is at $.00009. So even if Iraq becomes one of the richest countries in the world that doesn't automatically translate into having one of the most valuable currencies.

Now, for Iraq to become one of the wealthiest countries in the world they'll need to increase their GDP significantly. (Right now their GDP is lower than that of those booming, thriving economies of Angola, Bangladesh, Kazakhstan, and Nigeria.) That won't happen overnight. It will take decades to improve their GDP to the point where they can rank in the top ten. They'll need to develop their manufacturing and service industries so that their GDP isn't all dependant on oil as it is now.

Also I think you're assuming that the only way to have the region's most valuable currency is with a straight up RV. If they re-denominate (lop) and then allow the currency to float upward over the years as their economy improves and their country stabilizes their currency could eventually rise back to $3+. To interpret the comments about having the region's most valuable currency as a 4000 to 1 RV is a tad presumptuous IMO. Statements like that SCREAM RD to me. There's just no way to get there without a lop. So if you want to make a good return on your dinar investment you better hope for less than a quarter because $.86 or more means LOP LOP LOP.

Good points here, you forgot one factor, all of the countries you are talking about have thriving running economies and they aren't war torn, Iraq has to come out in the $1 range just to afford to rebuild with global inflation on the rise and not one running manufacturing plant up and running for construction materials everything must be imported in order for them to pay for the rising cost of those goods alone they have to come out at around $1 and manage the float up to $3+ over time in 2% smaller RV's every so often not just 90 days but may even need a 90 then a 45 then a 90 then a 30 day spans with smaller 1-2% RV's just to keep up. They are starting with a much better start than most but they have had 10 years of turning things in a positive direction vs. Japan and Germany when they did it after WWII in 6-9 months with military leadership from the US running things and putting them together for them and doing a great job in such little time. Difference here is 4000 year old ideals with 4000 year old wealth in a 5 year old GOI and corruption running rampant.

One of the major things I see is who is the founder of OPEC, well IRAQ is, and why would they want to be the founder of an organization like OPEC?

Well for one because they want to protect their wealth of Oil and allow other strong oil nations to share in exportation for their own share of the wealth. Which is the same reason Saudi can have a value of .27 they have a flourishing economy low population and low GDP but tons of oil they just don't export as much as Iraq will need to in order to just catch back up let alone keep up, they have to pay back for all their dirty deeds and shell out some money to the world and that comes in the form of a healthy RV for their citizens & investors alike, you think our investment was just dollars your crazy, we gave up blood, sweat, and tears, with lives...as they say Pay Back is a $itch!

Don't forget the most important things in life are free, friendship, love, sharing, relationships, but freedom is not it has a price tag on it!

BTW: in my previous post about my plan, how are you going to random NEG someone for an honest fact and action plan explanation...wake up people!

[machcobra]

$1.17

[Sam I Am]

"You don't think I understand how currency works" Good luck with that! Im not some kid trying to get rich, prove myself, or make some mark in the world. RV/RI/LOP what ever.....Im good financially set for the rest of my life (sold a very profitable botique Real Estate Company and Mortgage company in 2005) Really don't want to burst your bubble, however, you cannot just make statements from your soap box pointing fingures and expect that because you said it...Its true. You look at your investment/speculation however you want to, Me? Im going to follow what my education leads me to, along with a couple of revaluations under my belt. I got this same advice while stationed in Germany ion the 70's, all indications indicated that the DM would revalue from a rate of DM 4.26 to % 1.00 to a rate of DM 2.10. I ordered my US bank to transfer my entire savings to my German Bank.....within one week I more than doubled my money!. Not bad for a know nothing! I could go on and on, maybe I got lucky......or......as my signature indicates.....I dont follow.....or as my dad use to say....."Reading is fundamental......Understanding what you read is crucial" Peace Jazz

Sorry if I offended you. I just meant that you seem to think that a rich country will automatically have a highly valued currency and that's just not the case. As I pointed out Japan has a very high standard of living but their currency is around a penny. Congrats on your past success and good luck in the future.

Good points here, you forgot one factor, all of the countries you are talking about have thriving running economies and they aren't war torn, Iraq has to come out in the $1 range just to afford to rebuild with global inflation on the rise and not one running manufacturing plant up and running for construction materials everything must be imported in order for them to pay for the rising cost of those goods alone they have to come out at around $1 and manage the float up to $3+ over time in 2% smaller RV's every so often not just 90 days but may even need a 90 then a 45 then a 90 then a 30 day spans with smaller 1-2% RV's just to keep up. They are starting with a much better start than most but they have had 10 years of turning things in a positive direction vs. Japan and Germany when they did it after WWII in 6-9 months with military leadership from the US running things and putting them together for them and doing a great job in such little time. Difference here is 4000 year old ideals with 4000 year old wealth in a 5 year old GOI and corruption running rampant.

Actually I didn't forget about Iraq's needs. But they can't just assess a value to their currency based on what they need. They have to be able to support that value and right now they can't support $1 without a lop.

[detroitjazzman]

Sorry if I offended you. I just meant that you seem to think that a rich country will automatically have a highly valued currency and that's just not the case. As I pointed out Japan has a very high standard of living but their currency is around a penny. Congrats on your past success and good luck in the future.

Actually I didn't forget about Iraq's needs. But they can't just assess a value to their currency based on what they need. They have to be able to support that value and right now they can't support $1 without a lop.

I also understand the undervalued currencies of the world. China purposely kept the currency low to facilitate exports. lot of the other countries do the same thing. Should you care to do some additional research and not just try to promote your blog, you might find that there is a lot of banter going around concerning these undervalued currencies. Relative to Iraq, no where in my post did I indicate that this was happening overnight, I don't need this to happen tomorrow for me to be happy, Its not my only speculative investment (Ford @ 1.37, PPD @ 8.56 just to name a few) and the money that I spend is relative to what I can afford. Perhaps if you re-read my origional post you might come to another understanding. Just saying`

Edited October 18, 2011 by detroitjazzman

[sheepdog]

TO: detroitjazzman, Sam I am, easyrider and others: Thank you for the Good debate on the rationale for a rate possibility of an RV, RD or lop. I learned some different things from all of your posts. I don't know how all this is going to turn out, but let's just hope something happens soon and we can all go our way in peace and a little wealthier. Depending on the rate, I may have to hold on to my dinar for awhile.

[Darin]

Sorry if I offended you. I just meant that you seem to think that a rich country will automatically have a highly valued currency and that's just not the case. As I pointed out Japan has a very high standard of living but their currency is around a penny. Congrats on your past success and good luck in the future.

Actually I didn't forget about Iraq's needs. But they can't just assess a value to their currency based on what they need. They have to be able to support that value and right now they can't support $1 without a lop.

Japan also has a money supply that dwarves the CBI's.

Which is likely a leading reason why they're only at $0.01