Iraq Coinage One Step Closer to Reality - Article 10/18/2011

[Sanssouci]

By chance, do you know Jim Swinden? It's a small world out there. BTW, he would be in the historical militaria camp, and not casino.

No, I know guys from Germany, England, and in the States: San Francisco, Indianapolis, Chicago, Pittsburgh, all over the place, but I've never run into Mr. Swinden.

Thanks for your comments.

Got you with a +1 to help even you out.

Thank you!

I won $1,100 at the casino last weekend. Which one ya going to? I can tell you where the "sweet" machine is

and no, I didn't spend it on Dinar

Good for you! I think we're going to either Mountaineer in West Virginia or Rivers in Pittsburgh. Where is that "sweet" machine?

[dhardage]

Good for you! I think we're going to either Mountaineer in West Virginia or Rivers in Pittsburgh. Where is that "sweet" machine?

Sorry, the sweet machine is in NM! C'MON DOWN!!

[Sanssouci]

Sorry, the sweet machine is in NM! C'MON DOWN!!

Definitely after RV. A good friend of mine in AZ has a beautiful World War I uniform collection that I have to see.

[keepmwlknfny]

I've seen this argument pretty frequently, and really wanted to address it because I've never seen someone else do so.

First of all, the $20 is the most counterfeited bill in the U.S. And I would say the US is pretty concerned about counterfeiting, so it shouldn't be a surprise that Iraq would also be concerned about counterfeiting a bill that's actually worth more than our $20.

But the REAL reason that counterfeiting is such a concern with a redenomination is actually pretty simple if you think about how it would work. In the U.S. someone counterfeits a 20 dollar bill. They spend it somewhere, and whoever takes it in exchange for goods or services doesn't catch that it is counterfeit. Let's say that they spend it somewhere again, and that person doesn't catch it either. It gets spent again, again it isn't caught as a counterfeit. Then that person takes it to the bank and tries to deposit it. The teller DOES catch it as counterfeit. What happens? The person that was trying to deposit it just lost 20 bucks. The bank doesn't give them a real $20 to replace their fake $20. They take the counterfeit bill and turn it over to the police or to a US Secret Service agent (this is the actual, correct policy according to the US SS). That note is removed from circulation and destroyed. It no longer exists, and someone is out the $20. Counterfeit notes circulate for a while and are then removed, they don't permanently increase the money supply in the US, they're always caught eventually. Even if the bank teller didn't catch it, it's going to get caught sooner or later.

Now think about what would/could happen with counterfeit bills during a redenomination. Someone counterfeits a 25,000 dinar note. They either have a buddy at the bank that they've bribed to look the other way, or they're taking a "shotgun" approach where they're having hundreds of people going to all the banks because they know that some will sneak through (keep in mind that the Delarue machines aren't really designed to detect counterfeit notes very well, they only check for the UV light visible stamp, they don't check any of the other security features, those have to be checked by hand). The bank doesn't catch that it's counterfeit (again, either due to a corrupt or incompetent employee, and I don't think anyone would argue that there aren't any of those out there), and hands out a new 25 dinar note, worth 21 USD. That's a real note. There's no getting it back out of circulation, the damage is done, and the money supply HAS increased.

That's why counterfeiting is such a concern if they RD, because the RD process is a way to launder the money and take a counterfeit note (that in the US would eventually (usually very quickly) be caught and pulled out of circulation) and permanently replace it with a real, valid note that will remain in circulation forever, permanently increasing the country's money supply.

Bravo!!! +1!!! I think you nailed that one right on the head!! Counterfeit operations always do and will exist no matter what the value of that currency is....thats why the US changes the currency every so often to try and keep it to a minimum, although it probly does not work so well! LOL

Met a couple people in the services that were over in Iraq and they used to talk about pallets full of dinar they would recover of fake bills....I couldnt really believe it myself but it made sense later...

[Carrello]

Touche' Janderson. Very information. Good stuff.

[mckay*pro]

I have to agree with Dalite. I am finding the "logic" in it all more and more confusing. If something that we want to hear is reported in the news, we are practically falling all over eachother shouting "YES, IT'S COMING". But when it is something that points towards a LOP, or even the RV taking longer, I am told not to believe everything I see in the news because it is all lies. I just don't get it.

I agree, but then I have also learned my lesson in understanding that about 90% of the people on this site are full of **** that they take as some sort of precognitive insight... no one knows how this will play out no one knows when it will play out, infact I dout that we even know the true person that is paving the road to a resolution to this calamity of false interpretations. Its ridiculous also i think that RV phone call is the dumbest **** ive ever seen someone try to sell to someone else. You mean to tell me that you wise almighty dinar guru's that have so much intel and inside scoop that you just so happen to know more about this RV process then our very own officials and government agencies? please.... lets just see what happens stop fukin guessing.