Just How Could an RV Work?

[Bruce]

Bruce, you are missing a big point. The answer to your question is that obviously all Iraqis could do this too. But the point is, will they? And the answer is definitely that they will NOT for the most part, either because they don't even know anyone outside their country, or they don't have the $17.00 extra for the FEDEX fees to send the dinars out. For the few who do have that ability I would suggest that they have already done so a long time ago.

It must be fun to make light of this sort of thing. I trust that you enjoy it. I'm sure others here see it for what it is, however. If you ever want to have a real discussion, let me know.

Steve

I'm trying to have a real discussion. So what about all of the banks and businesses and the people living in metropolitan areas? Do you think they are not going to send their dinars out of the country and wait? Or do you think that all Iraqi citizens are poor and live in the desert in tents. Oh they would certainly have civil unrest after that. The point is there will NOT be a dual value for the 000 dinars. Our 000 dinars will have the same value as everyone elsewhere.

[ronscarpa]

Okay, wow, a lot of posts in here since 7am.

Well, I didn't feel like reading all of them but feel like I got the jist of what's being said....

current value of the IQD is .00086 making 1mil worth about $860.usd If they remove three zeros from the (we'll say) 25,000IQD note it will be a 25.iqd note. Well, that has now changed the rate to .00000086 making 1mil worth .86cents usd!!!!! Okay, now they have to RV the LOPed currency. We'll say they rv 1000 times it's value. It is now back to .00086 making 1million worth $860.usd AGAIN!!! Let's say they rv it 1million times it's post lop value (.00000086) now it's at .86cents to the usd. Does anyone realize this???

Removing zeros from money and products don't make you break even. Iraq will have to have a currency equal to those whom they purchase product from to break even. That is with a RV. If they RV then they will adjust the price (lower) of products.

Hi Again Tabi,

From the analysis you put in yout post you're indicating a LOP before any RD & RV - just observing by the numbers you put in there - you're way off base, and incorrect. I'll keep this as simple as I can...! They have NEW IQD denominations & coins prepared for the RV, and will probably keep the current lower denoms (500, 250, & 50 IQD). There have been confirmed indicatyions that the Gov't Services have indicated that salaries to be paid 28 Feb/1Mar will be approximately 1000% less, but retain the same purchasing power - therefore the exchange rate will go from $0.000855 to $0.855 - an effective RV, because the dinars will now have a face value x the new exchange rate (ie: 10,000 IQD = $8,550). However, there is talk of a 1 IQD = $1 USD or more. It all depends upon the actual RV rate. So, the worker making 100,000 IQD will now get 1,000 NEW IQD - but the $ buying power will be based upon the RV rate. If it were $1.5 USD/1 IQD then they just got a great pay raise ($1,150 Effective) plus, any money they have saved at home or in the bank will be at the new rate, regardless of the denomination.

I hope this helps a bit. Be Blessed...!

RON ;)

[tabi]

Hi Again Tabi,

From the analysis you put in yout post you're indicating a LOP before any RD & RV - just observing by the numbers you put in there - you're way off base, and incorrect. I'll keep this as simple as I can...! They have NEW IQD denominations & coins prepared for the RV, and will probably keep the current lower denoms (500, 250, & 50 IQD). There have been confirmed indicatyions that the Gov't Services have indicated that salaries to be paid 28 Feb/1Mar will be approximately 1000% less, but retain the same purchasing power - therefore the exchange rate will go from $0.000855 to $0.855 - an effective RV, because the dinars will now have a face value x the new exchange rate (ie: 10,000 IQD = $8,550). However, there is talk of a 1 IQD = $1 USD or more. It all depends upon the actual RV rate. So, the worker making 100,000 IQD will now get 1,000 NEW IQD - but the $ buying power will be based upon the RV rate. If it were $1.5 USD/1 IQD then they just got a great pay raise ($1,150 Effective) plus, any money they have saved at home or in the bank will be at the new rate, regardless of the denomination.

I hope this helps a bit. Be Blessed...!

RON ;)

One, my calculations are not off but slightly rounded, because frankly, I don't really care that much...Second, what you say is exactly what I said in previous replies....but, this is not what the OP says in his post! That is what my reply is about.

[tabi]

what you explain is preschool of IQD

[ronscarpa]

what you explain is preschool of IQD

Well - I guess you still don't get it, I'm really sorry. You asked me to explain it, and as I said "I'D TRY TO KEEP IT SIMPLE". What part of that didn't you understand...? I was simply trying to be helpful, but I guess you really don't want help. Please excuse me and forgive me for commenting on your numbers. Best of luck to you.

RON ;)???

[tabi]

Well - I guess you still don't get it, I'm really sorry. You asked me to explain it, and as I said "I'D TRY TO KEEP IT SIMPLE". What part of that didn't you understand...? I was simply trying to be helpful, but I guess you really don't want help. Please excuse me and forgive me for commenting on your numbers. Best of luck to you.

RON ;)???

What you "explain" in your post is an RV. My dog understands that. What you don't explain is how my figures are off. Furthermore, I meant to put the lop before the rv because that is the only way it could happen as described by the OP. That is why you think my figures are wrong. You are not understanding my posts! I'll try to explain it as simple as I can... .00086 now, LOP 3zeros you get .00000086 They would then have to RV 1million times just to bring it up to .86cents to the dollar.

I'm done reponding to theis post you can take it for what it's worth. Thanks for sharing

[ralpher]

Just How Could an RV Work?

Tonight we had a spirited and challenging discussion that dealt with the question of how in fact an RV would work in the real world.

Arguments were placed on both sides showing that this is a difficult issue to tackle, and to grasp.

I thought that I would make this post so that everyone who cares can see where I am coming from on this tough problem.

In order for me to lay this out clearly and as concisely as possible (I know

[Traconesu02]

OK here is my doubt about this "lop" or whatever,the "0" r going out of the big denom.(1000 and up)not smaller denom,right?then if 2 iraqis have 1000iqd but one holds 1000 in small denom. the other a 1000iqd bill when this happens the one with the smaller denom will still have 1000 the other will have 1 nid.If that is true we sure the heck should start changing uor denom.anyone ,please.

Good point if I was told this was going to happen and even if it was just rumor I would take all my money out of the bank in small bills before the redenomination and convert all the larger notes in my possesion to smaller notes also just in case. At that time with enorrste theory , I would have 1000 times more money by doing it that way then if I left everything as is. There are definitely flaws in this analogy.

[Traconesu02]

What you "explain" in your post is an RV. My dog understands that. What you don't explain is how my figures are off. Furthermore, I meant to put the lop before the rv because that is the only way it could happen as described by the OP. That is why you think my figures are wrong. You are not understanding my posts! I'll try to explain it as simple as I can... .00086 now, LOP 3zeros you get .00000086 They would then have to RV 1million times just to bring it up to .86cents to the dollar.

I'm done reponding to theis post you can take it for what it's worth. Thanks for sharing

You have made this more confusing than ever for some folks out there. Iraqi dinar value will never go less than it is at the current time of approx. .00086. You put 6 zeros in front of the 86 must have been a typo.

[Traconesu02]

Here is another theory. JMO Currently an Iraqi is making 100,000 per week salary. He is told his new salary will be 100 dinar per week with the same buying power. All of his dinar that he has prior to this salary change will retain its value. Therefore if he had 100,000 dinar in the bank then after his new pay takes place he will still have 100,000 dinar in the bank. If he has 50,000 dinar stuck away at home he will still have 50,000 dinar at home. He will be told like we will that he must bring in his larger bills and exchange them for smaller denominations as they wish to remove the larger bills from circulation. However he willl get 50,000 dinar in smaller denominations for his lets say 5 - 10,000 dinar notes that he has tucked away. The new pricing per enorrste theory would be correct so the Iraqi could still purchase the same amount of merchandice with his new pay.

Now all Iraqi that were able to save a little along the way would have 1000 times more buyiing power with the dinar they had prior to receiving their new salary. This makes much more sense. Also now the usd value of the dinar will be .86 per dinar.

And of course we too will be exchanging our dinar in at the new .86 usd per dinar rate for each of our dinar.

Any other senario and this is what would happen. If I was an Iraqi and even thought that my savings would be reduced by 1000 times even though the buying power would remain the same -- I would remove my saving from the bank prior to this occuring in smaller denominations and all that I had at home would also be exchanged for smaller denominations well before anything like this would occur. My new pay would be 100 dinar per week with the same buying power as my current salary of 100,000 dinar per week. but I would have a stash of smaller demonination that I removed from the bank and / or had in my possession that in actuallity would have an worth 1000 times more than had I left it in the bank and let them reduce my accounts per enorrste theory. JMO

[fatcat]

This makes sence, finally I understand what you are saying, an in country lop. In my opinion if there was'nt a lop in country, there would be major crime and violence. This way everything is gradual and simple for the people. My question is, dose'nt currency have some kind of law in the US, that currency is guarranteed foreign and demestic? Seems I read it somewhere. Thanks Ennorste my spirits are high once again, your the best

[tabi]

You have made this more confusing than ever for some folks out there. Iraqi dinar value will never go less than it is at the current time of approx. .00086. You put 6 zeros in front of the 86 must have been a typo.

No it wasn't a "typo".......I will show you with money as a positive instead of negative......

If I have 1,000,000.00 and it is reduced by three zeros I will have 1,000.00 If that is reduced by three zeros I will only have 1.00 That is one millionth of the original value that I started with.

Iraq is currently .00086 If it is reduced by three zeros it will be valued at .00000086!!!!!! They would have to revalue on million times it's value to raise it to .86!!!!!!

My point is they will NOT LOP the zeros off the currency just to remove notes from circulation and RV to circulate lower denomination notes.

I'm glad you don't understand that concept actually! You may not understand because it can never happen the way the OP says it will. Thank You very much.

[Traconesu02]

Why is everyone having so much trouble with their math here. If you divide 100,000 by 1000 or if you take 3 zeros off of 100,000 then you end up with 100. Why in all these senarios are people using 100,000 being reduced to 1000. Boy if you all can not do better with your math than this you are in big trouble when you go to exchange your money.

By making this simple error in your posts you are only confusing the issue for many here. JMO

[fatcat]

Ennorste, ??? how does Ali exchange all his large notes in Iraq, would'nt they credit him and exchange them for 25 notes to?

[Traconesu02]

No it wasn't a "typo".......I will show you with money as a positive instead of negative......

If I have 1,000,000.00 and it is reduced by three zeros I will have 1,000.00 If that is reduced by three zeros I will only have 1.00 That is one millionth of the original value that I started with.

Iraq is currently .00086 If it is reduced by three zeros it will be valued at .00000086!!!!!! They would have to revalue on million times it's value to raise it to .86!!!!!!

My point is they will NOT LOP the zeros off the currency just to remove notes from circulation and RV to circulate lower denomination notes.

I'm glad you don't understand that concept actually! You may not understand because it can never happen the way the OP says it will. Thank You very much.

What is your problem: You just lopped off three zeros two times. 3 times 2 is 6 .. You lopped off 6 zeros. Where in the world did you pull this one out of ? If you think they are going to take 6 zeros off of their currency - well never heard that one before. I guess you are not a math major that is for sure.

I have never heard anything about adding 3 zeros to the current dinar value either. Where do you come up with these things. Did you just wake up and haven't got the sleep out of your eyes yet this morning, because they sure can not be open.

Sorry but from here on out, I am going to have to just ignore anything I here from you. I recommend you change your screen name here from tabi to something else if you want to be taken seriously on anything at DinarVets in the future.

[kzcountry]

BRAVO!!! BRAVO!!!! Now this was a fun post to read! Man, I hope your right!

[ronscarpa]

What is your problem: You just lopped off three zeros two times. 3 times 2 is 6 .. You lopped off 6 zeros. Where in the world did you pull this one out of ? If you think they are going to take 6 zeros off of their currency - well never heard that one before. I guess you are not a math major that is for sure.

I have never heard anything about adding 3 zeros to the current dinar value either. Where do you come up with these things. Did you just wake up and haven't got the sleep out of your eyes yet this morning, because they sure can not be open.

Sorry but from here on out, I am going to have to just ignore anything I here from you. I recommend you change your screen name here from tabi to something else if you want to be taken seriously on anything at DinarVets in the future.

The way tabi describes things is a dyslexic point of view - and indicates someone who failed basic math. However, she is convinced she is correct and Steve and everyone else is wrong. She doesn't want to be illuninated or helped by anyone - as she has cleatrly stated in other posts in this thread. SHE TOTALLY UNDERSTANDS EVERYTHING - even though she indicated she didn't have time to view all the posts. I wish her happiness and the best.

[Stewsday]

Basic math in public government run schools= We think the way the Gov. wants us to think. The math is irrelevant!!!!!

[tabi]

What is your problem: You just lopped off three zeros two times. 3 times 2 is 6 .. You lopped off 6 zeros. Where in the world did you pull this one out of ? If you think they are going to take 6 zeros off of their currency - well never heard that one before. I guess you are not a math major that is for sure.

I have never heard anything about adding 3 zeros to the current dinar value either. Where do you come up with these things. Did you just wake up and haven't got the sleep out of your eyes yet this morning, because they sure can not be open.

Sorry but from here on out, I am going to have to just ignore anything I here from you. I recommend you change your screen name here from tabi to something else if you want to be taken seriously on anything at DinarVets in the future.

WOW!!!

I didn't LOP 6 zeros!!!!!!!!!!!!! My million example was for YOU to understand!!!!!!!!!!!! I guess you don't!!!!!!!!!!!!!!!!

IQD is already 3zeros down if they LOP 3 zeros they WILL BE SIX ZEROS DOWN!!!!!!!!!!!!

And, if you haven't heard of adding 3zeros you never heard of an RV the have you. If they add 1-2-3-4-5-6-7-zeros to the value they just RV.

Just keep thinking about it and eventually you will understand!

[tabi]

The way tabi describes things is a dyslexic point of view - and indicates someone who failed basic math. However, she is convinced she is correct and Steve and everyone else is wrong. She doesn't want to be illuninated or helped by anyone - as she has cleatrly stated in other posts in this thread. SHE TOTALLY UNDERSTANDS EVERYTHING - even though she indicated she didn't have time to view all the posts. I wish her happiness and the best.

Steve has already ammende his post and said he was "wrong". As far as "every one else wrong" I never said that and DON'T slander my name just because you can't figure out what I'm talking about! I never said I understand everything, I said I understand what I wrote in this post and how an RV/LOP/RI works. Again, don't try making me look daft just because you don't understand MY point.

Furthermore, I am more than willing to learn from others those who know what they are talking about. Unfortunatly, I haven't found that to be the case with you. I could be wrong but, I doubt that's the case. Thank You very much for trying

[ronscarpa]

WOW!!!

I didn't LOP 6 zeros!!!!!!!!!!!!! My million example was for YOU to understand!!!!!!!!!!!! I guess you don't!!!!!!!!!!!!!!!!

IQD is already 3zeros down if they LOP 3 zeros they WILL BE SIX ZEROS DOWN!!!!!!!!!!!!

And, if you haven't heard of adding 3zeros you never heard of an RV the have you. If they add 1-2-3-4-5-6-7-zeros to the value they just RV.

Just keep thinking about it and eventually you will understand!

tabi,

I think where you went wrong (IMHO) is when you went from .00086 to .00000086 - you went the wrong way with thje zeroes. NOW, if you insist you were right - then there cannot be any further discussion with ANYBODY, because NOBODY agrees with your logic, as has been clearly stated by several on this thread - (are you blond? - I'm sorry, please forgive me, it was a joke). No one will EVER understand youn logic no matter how long WE think about it. No offense, but I have a Degree in Mathematics, and don't see ANY POSSIBLE connection with reality using your "thinking"...! Again, I say to you - the best of luck. Let's enjoy the ride and sit back and relax. The end of the matter will prove "someone" correct, but we will all make a profit (very small or very large, or somewhere in between);). Have fun tabi, and a good evening.

RON ???

[ronscarpa]

Steve has already ammende his post and said he was "wrong". As far as "every one else wrong" I never said that and DON'T slander my name just because you can't figure out what I'm talking about! I never said I understand everything, I said I understand what I wrote in this post and how an RV/LOP/RI works. Again, don't try making me look daft just because you don't understand MY point.

Furthermore, I am more than willing to learn from others those who know what they are talking about. Unfortunatly, I haven't found that to be the case with you. I could be wrong but, I doubt that's the case. Thank You very much for trying

You're welcome tabi - I was sincerely trying to understand, and help.

By the way, Steve's Re-evaluation should have easily put your "understanding" and numbers to bed once for all. At this point - it's all mute, and watyer under the bridge.

God bless & prosper you tabi.

RON

[bahtman]

What you "explain" in your post is an RV. My dog understands that. What you don't explain is how my figures are off. Furthermore, I meant to put the lop before the rv because that is the only way it could happen as described by the OP. That is why you think my figures are wrong. You are not understanding my posts! I'll try to explain it as simple as I can... .00086 now, LOP 3zeros you get .00000086 They would then have to RV 1million times just to bring it up to .86cents to the dollar.

I'm done reponding to theis post you can take it for what it's worth. Thanks for sharing

Tabi

What you are missing is: When you lop the zero's off of the 25k note the exchange rate stays the same for THAT NOTE (no zero's lopped off of exchange rate, only the note). Because it has the same value as the new 25 dinar note, the new note then automatically has a new exchange rate ( even without an RV) and that rate is .86. This is because both notes have equal value. The old notes then are gradually removed from circulation. I believe you are moving your decimal point in the wrong direction.

25000 X .00086 = 21.5

25 X .86 = 21.5

[tabi]

tabi,

I think where you went wrong (IMHO) is when you went from .00086 to .00000086 - you went the wrong way with thje zeroes. NOW, if you insist you were right - then there cannot be any further discussion with ANYBODY, because NOBODY agrees with your logic, as has been clearly stated by several on this thread - (are you blond? - I'm sorry, please forgive me, it was a joke). No one will EVER understand youn logic no matter how long WE think about it. No offense, but I have a Degree in Mathematics, and don't see ANY POSSIBLE connection with reality using your "thinking"...! Again, I say to you - the best of luck. Let's enjoy the ride and sit back and relax. The end of the matter will prove "someone" correct, but we will all make a profit (very small or very large, or somewhere in between);). Have fun tabi, and a good evening.

RON ???

Okay, question...

If the IQD is worth .00086 and they LOP three zeros how much is the exchange rate now?

[wckdinar]

What happens to the smaller denominations already in circulation? Like a 50 dinar note.