Necessary to reduce the money supply

[VIZIOIRAQI]

Necessary to reduce the money supply

Confirmed that the deliberations of the Round Table on the project to delete the zeros of the Iraqi dinar, the need to reduce the money supply in the country, and the radical reform of the management system of currency, with the choice of time for the implementation of the project, and benefit from the experiences of countries that have already replaced their currencies, and the project is put on public opinion to be discussed widely by the direct implementation.

The table was convened last Friday before the Hall of Society of Engineers in Baghdad, and the initiative of local intellectuals in the Iraqi Communist Party.

Has contributed to a number of officials, politicians, economic experts and specialized scientific personnel, who discussed the motives and justifications put forward the project to delete the zeros of the Iraqi currency, and reservations that have cropped out the idea.

The Deputy Governor of Central Bank intervention in favor of the appearance of the idea to delete the zeros from the dinar was originally put forward by the government in 2005, was adopted by the Central Bank.

Salih stressed the importance of the project, and pointed to the experiences of other countries, especially the Turkish experience and the stages through which, also addressed the role of banks and government agencies and citizens in the success of this experiment.

For his part, spoke an economist Majid picture about the role of Iraqi banks in the implementation of the project, criticizing the fact that banks, pointing out some of the properties and structure of the Iraqi market that are influential monopoly of some senior traders and economic operators, as reflected by the high profit margins and the level of prices.

The independent political Mahdi al-Hafez, it was considered that the project is not of a technical nature only, but his economic dimensions broader repercussions on economic activity and incomes, and thus the living standards of citizens, and concluded that there is no importance to this project that was not connected and would fall within the economic policy package.

And conclude comrade Raed Fahmi, a member of the Political Bureau of the Iraqi Communist Dhav table conversation about the reality of the Iraqi economy, also addressed the right conditions to start the implementation of the project, and Tmahl government in dealing with the ongoing economic process in the country, reinforcing his concrete examples.

The table also participated in each of the President of the Union is willing Blibl businessmen, and Saad bugsbunny editor of that Union, and Khaled Cltag competent officer in the Iraqi Central Bank, and businessman Hassan Shammari and industrial oil researcher and high-Dabbas.

This will come back to the facts of the round table and results in a broader report we publish in a forthcoming issue of our newspaper this week.

Baghdad – by the people

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[blaineage]

The table also participated in each of the President of the Union is willing Blibl businessmen, and Saad bugsbunny editor of that Union, and Khaled Cltag competent officer in the Iraqi Central Bank, and businessman Hassan Shammari and industrial oil researcher and high-Dabbas.

Where is the Roadrunner and Wiley E. Coyote?

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[Anti This Anti That]

Why would they reduce the money supply at all if they were going to lop? Don't make any sense, I think it is just more propaganda to discourage currency speculators.

[FishmanTx]

If you really look at where they are at economically and if their economy was really in that bad of shape (as postulated by another article), they would have to RV a little first to knock down inflation. LOPing would serve no purpose and change nothing. SUPPOSEDLY, they are not ready to RD, but if the inflation goes double-digit, they'll have to change the exchange rate upwards a bit to compensate until they are ready. Reducing the supply would increase the value, but consider the amount of the proposed 2012 budget. They'll need an RV pretty quick or they'll have to start borrowing.

JMHO

Edited November 15, 2011 by FishmanTx

[RealisticInvestor]

Why would they reduce the money supply at all if they were going to lop? Don't make any sense, I think it is just more propaganda to discourage currency speculators.

A lop makes perfect sense unfortunately. Removing 3 zeroes takes the money supply down by a factor of a thousand. The supply has gone up so much bc of inflation and adding zeroes on there... Not good news but it's something everybody should have prepared for who was informed...

[FishmanTx]

IMO a LOP is highly likely, historically it's the way the effects of inflation have been dealt with by nations in this situation, but a LOP at this point would reduce Iraq's 30 Trillion Dinar to 30 Billion and that does not seem like it would leave them with enough money even if it then RVed to $1. If OTOH they RD and then RV to $3 that's 90 Billion Dollars in worth which is much more realistic. Just thinking here but that would seem like one way of dealing with both the present inflation problem and the effects of past inflation.

The problem is that a LOP doesn't increase the value. Historically it was done to get control of the currency due to hyperinflation where hundreds of thousands were needed for small transactions. Iraq needs to increase available money's value so they can afford the budget.

A lop makes perfect sense unfortunately. Removing 3 zeroes takes the money supply down by a factor of a thousand. The supply has gone up so much bc of inflation and adding zeroes on there... Not good news but it's something everybody should have prepared for who was informed...

The existing exchange rate is the biggest problem, but they know if they adjust the rate, they'll have to "shell out" to those who would cash in. We need to hope for double-digit inflation to occur before they are ready to LOP/RD so that they are forced into a small RV first.

JMHO

They can reduce the supply as they step up the rate in small increments by vaulting the notes that come in from exchange. Our dinar wouldn't affect them necessarily because our treasury will use exchanged IQD to buy oil at the agreed upon $32 a barrel

Edited November 15, 2011 by FishmanTx

[Alex38]

"Removing the three 0's" is fine. They will have to accept a trade in of the dinar out of country. No worries!

[Striker1]

A RD will also have an adjusted exchange so that it is "value neutral" which means their net worth remains the same after a LOP/RD. So (IMO only) a RD followed shortly by a RV would make sense but the more I study this it would seem that the increase will probably come over a period of years as their economy grows instead of an all-at-once sudden increase, although depending on their current ability to back a RV that sudden increase might still be possible. Why they would RV to any significant amount (IF indeed they even can) only to then give up significant amounts of their reserves to foreign speculators does not make sense to me. I know some have put forth explanations of how they are somehow supposed to actually make money from buying back their own currency but I personally find this hard to believe because in the end it involves transferring part of their wealth to other nations/investors vs not having to do so with a RD.

Adam answered this. They will make millions back on the spread of the buy back. That spread would probably be implied also to the US government as they trade dinars cashed in for oil. The CBI wins all the way around. They created it we bought it they made money. They give more value we sell back they make more money on the spread. Also taking into account the governments who have oil deals. It is difficult to understand but it is basic supply and demand. There are a bunch of ways this could play out. It is up to the CBI ultimately.

[FishmanTx]

They are not ready to LOP/RD yet. Inflation isn't going to wait until they're ready with newly printed notes. Either way they're going to need at least a small RV soon or they're gonna be in a tight spot on their budget vs GDP. Come on 10%!!!!

[Jaxinjersey]

I can not see how they can make money buying back their own money vs a RD that buys back nothing. As far as the U.S.Government buying oil with Dinar that simply is not true! The U.S. Government does not import oil, they are not in the petroleum business and oil imports, from Iraq or anywhere else, are a function of private enterprise and the U.S. Government does not import commodities such as oil. What is the name of the Government agency that imports oil (or anything else!) if that were true? Since the U.S.Government does not own any refineries or sell petroleum products how do they distribute this imported oil to the oil companies? Of course the answer is they don't because they do not buy oil in the first place, with Dinar or anything else. The U.S. Government buying oil with Dinar (or even Dollars) is pure pumper BS!

I believe the CBI will be making a lot of money on all sales and purchases of dinar through the spreads, as previously discussed.... similar to the way banks and dealers make money on us now. At the quantities bought and sold over any future and subsequent small RVs, over time Iraq would be making billions, consistently, as they raise the value of the dinar.

I believe this is what Adam was referring to in his recent thesis.

Also, I believe it is the Department of Energy that is responsble for the purchase of oil for the Strategic Petroleum Reserves... billions of barrels that are continually replenished.

[Jaxinjersey]

The Government does not buy oil for the strategic reserve on a regular basis and it was not imported directly from foreign producers anyway although some of it did come from foreign sources (apparently most came from Saudi Arabia) but was purchased through bidding processes that included domestic corporations. I had this same question and it did not make sense so I spent several hours researching it only to find what I suspected all along, the U.S. Government does not import oil. On the rare occasions that oil from the reserves are released it is to domestic oil corporations through an agreement to replenish the depleted reserves when oil supplies are once again back to normal, this does not involve the Government importing oil since oil that was used is replaced by the companies that it was released to and they pay for the returned oil. The U.S. Government did not directly import oil for the reserve and does not do so to replace any that is used.

Thanks Doug... a well thought out and researched reply. My thoughts were still more about the fact that the oil is still purchased, regardless of who from, directly or indirectly. I'm sure, in commodity dealings and the worldwide scope of it all, that multi-billion dollar "arrangements" are always in vogue and taking place everyday.... as you suggest, through oil corporations, bidding or otherwise. A broker is a broker... and oil is oil. It's not unreasonable to assume the government has not considered this approach into their brokering for $32/barrel oil. It actually sounds like a smart approach, if it is indeed plausible!

[leola]

What happens,if they lop and RD ,and the money supply shrinks to a point,that there is not enough available to do business???? add to the supply or electronic deception

Edited November 16, 2011 by leola

[FishmanTx]

The Government does not buy oil for the strategic reserve on a regular basis and it was not imported directly from foreign producers anyway although some of it did come from foreign sources (apparently most came from Saudi Arabia) but was purchased through bidding processes that included domestic corporations. I had this same question and it did not make sense so I spent several hours researching it only to find what I suspected all along, the U.S. Government does not import oil. On the rare occasions that oil from the reserves are released it is to domestic oil corporations through an agreement to replenish the depleted reserves when oil supplies are once again back to normal, this does not involve the Government importing oil since oil that was used is replaced by the companies that it was released to and they pay for the returned oil. The U.S. Government did not directly import oil for the reserve and does not do so to replace any that is used.

Doesn't matter. Our gubbment does what it wants anyway. There was an agreement that that's what they would do. There's no law that says they can't. So, irrelevant of normal process, this is what was agreed to. if you were the US Govt, would you buy oil at market value at anywhere from $75 to $125 a barrel or get it from Iraq on the cheap at $32 because THEY OWE YOU for getting their @ss out of a big jam? I also have traded commodities, specifically oil for one, and the strategic reserve report is one thing I'm very familiar with.

Edited November 16, 2011 by FishmanTx

[Scrumdiddles]

Once again a perfectly good Deleting the zeros article turned into a lop frenzy. Even when they clearly state it is necessary to reduce the money supply. There excuse, well it mentioned Turkey. Hahaha. :lol: :lol:

Edited November 16, 2011 by Scrumdiddles

[Scrumdiddles]

Ok so you're saying that this article simply means deleting the zeros and not a LOP?

OK!

I do believe that is what it says, deleting the zeros. Does not say RD does not say LOP.

[Scrumdiddles]

Lopping is what reduces the money supply.

I really don't understand how you can spend so much time on this forum and still understand so little. Even if you don't think a lop is likely, you should still at least understand what it means before you tell everyone it's impossible. You're so clueless it almost seems like it has to be contrived, like you're here to pump people that don't know any better.

LOPPING does not reduce the currency. DUH, it keeps it the same changed out to a new lower denom, DUH. You want to reduce the currency, take it off the market and issue new currency digitally and print less new currency.

LOPPING does not reduce the currency. DUH, it keeps it the same changed out to a new lower denom, DUH. You want to reduce the currency, take it off the market and issue new currency digitally and print less new currency.

Uh oh i am getting double teamed, so does that mean i am getting double lopped. hahaha.

Deleting the zeros is not a RD(LOP)?????

You will never see "LOP" in any article since LOP is only internet slang for Re-Denomination (RD), which BTW means deleting the zeros!.

Oh that is right you know exactly what they are saying. So sorry, i did not know you had a main line to there thoughts.

[Scrumdiddles]

This proves beyond a doubt you don't know anything about what you are talking about!

A LOP(RD) does not reduce the currency? Are you for real man or are you really just trying stir up something? Of course a RD reduces the Currency, in this case the RD would reduce Iraq's currency supply from 30 Trillion Dinar to 30 Billion and you don't think that's a reduction? and YOU say DUH?

Really, because they lop the zeros, they take the value of the currency from 30 trillion to 30 billion, same amount of bills on the market. DUH. I really think you are retarded. WOW 20milliondinar was right, i am done talking to you. Peace and enjoy your 20 seconds of fame, because you are always right.

[keepmwlknfny]

LOPPING does not reduce the currency. DUH, it keeps it the same changed out to a new lower denom, DUH. You want to reduce the currency, take it off the market and issue new currency digitally and print less new currency.

Uh oh i am getting double teamed, so does that mean i am getting double lopped. hahaha.

Oh that is right you know exactly what they are saying. So sorry, i did not know you had a main line to there thoughts.

You should just quit while your ahead bud......all your doing is confirming that you dont even fully understand what a lop is or does.......

[Scrumdiddles]

You should just quit while your ahead bud......all your doing is confirming that you dont even fully understand what a lop is or does.......

How did i know you were going to show up, cant keep a good lopper down, huh keep.

[redsand]

lets LOCK this message.

[keepmwlknfny]

How did i know you were going to show up, cant keep a good lopper down, huh keep.

Nope....was just tryin to help you out my dude.....

Cause from reading your statements it seems there is still some room needed for learning more about this topic.....your getting closer but still not all the way there!

[Russell M]

if a lop drops the zeroes off the amount owed, wont it also drop the zeroes off the amount available to pay it off as well? If so, why would anyone ever do such a thing?

[keepmwlknfny]

if a lop drops the zeroes off the amount owed, wont it also drop the zeroes off the amount available to pay it off as well? If so, why would anyone ever do such a thing?

Cause the overall value doesnt change.......

If you owe someone 25k dinar right now at the current rate it would mean you owe them like 21.36 USD.....

After a lop you would owe them 25 dinar, (still valued at 21.36 USD) Its all about the VALUE......not just the numbers you see that go away!

[bamjack75]

The best thing, IMO, is inflation is going to force them to do something and in each scenario; we make something. If Keep's assertion is right, then they have to raise their exchange rate (value). Depending on what mis-leading articles that are at our disposal, here, as of late; there is eithier 10 to 30 trillion in physical currency and when they take off the zero's, then their reserves will help get their value up to where it was before Sadam started printing too many dinar. I would rather Iraq just adjust what they have, now and I have faith that Adam knows how this will go down. Otherwise, why do all this? This website and VIP fees can't be making too much for all of the effort. Adam believes and that is good enough for me. I know Keep has a valid point but something that doesn't make sense to me is why hasn't Iraq already done this? Why all the hype, now? They could have done this a long time ago. Anyway, I have go to work early at the bank and no one I work with, knows about the dinar and I dare not say a thing. I can only vent here, at DV. Take care, all!!!

[20MillionDinar]

IMO a LOP is highly likely, historically it's the way the effects of inflation have been dealt with by nations in this situation, but a LOP at this point would reduce Iraq's 30 Trillion Dinar to 30 Billion and that does not seem like it would leave them with enough money even if it then RVed to $1. If OTOH they RD and then RV to $3 that's 90 Billion Dollars in worth which is much more realistic. Just thinking here but that would seem like one way of dealing with both the present inflation problem and the effects of past inflation.

This member has been around in the past defending the LOP theory with every single post he made! I know who you are...

This is Xyzzy who was banned late October. He then created a new name "Xyzzy2" on October 30th. That just so happens to be the same day member "DougsDinar" joined as a member. Probably decided not to go with Xyzzy2 because he had such a bad wrap.

http://dinarvets.com...r/42632-xyzzy2/

I can also tell by how you post and what you post. You are pathetic... Why not just remove yourself from these forums completely?

Edited November 16, 2011 by 20MillionDinar