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The dollar has always been backed by the gold reserves that are kept at Ft. Knox. Otherwise it would be worhtless unless we had something else to back it, like oil. The Dinar is backed by the potential of all the oil in the ground. The UST keeps the dinars that are cashed in and will trade for oil or a lower oil price. There is no mystery to any of this. Anything else that is said is just convoluted logic!

The dollar has always been backed by the gold reserves that are kept at Ft. Knox. Otherwise it would be worhtless unless we had something else to back it, like oil. The Dinar is backed by the potential of all the oil in the ground. The UST keeps the dinars that are cashed in and will trade for oil or a lower oil price. There is no mystery to any of this. Anything else that is said is just convoluted logic!

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Perhaps this is a dumb question this late in the game. I am seeing a lot of references lately to the overwhelming and seemingly endless supply of IQD in circulation. Four trillion? 41 trillion? More? Additionally, there seems to be continuous selling of Dinar going on for those who want just a few more anticipating an imminent RV. What backs the production of all this currency? Presumably, I have always been led to believe that every US dollar printed had its value backed in gold. This was a check and measure to control production and a balance of our money supply and currency.

I do not know what backs the many trillions of Dinar printed. It could be oil down the road, but I would not think so at present, since there is no legitimate connection evident since there is no HCL agreement. Additionally, it appears all oil transactions at present are done in USD. Therefore, what balances and validates this currency to justify a RV? Thanks in advance to those who can educate me.

The gold standard was removed back in the 70s, which is why our dollar is no longer strong as it once was.

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The only gold the US holds belongs to other countries. I hear Germany wants there silver back right now. The US asked if they give it back to them over the course of the next 7 years. Germany said they wanted it all back right now, so the US drove the price of silver down to its current price today in an effort to get Germany to back off...... Sounds like a bonofide fairy tale, doesn't it...... Welcome to the North American Union where nothing is what it used to be.......... : D

The dollar has always been backed by the gold reserves that are kept at Ft. Knox. Otherwise it would be worhtless unless we had something else to back it, like oil. The Dinar is backed by the potential of all the oil in the ground. The UST keeps the dinars that are cashed in and will trade for oil or a lower oil price. There is no mystery to any of this. Anything else that is said is just convoluted logic!

The dollar has always been backed by the gold reserves that are kept at Ft. Knox. Otherwise it would be worhtless unless we had something else to back it, like oil. The Dinar is backed by the potential of all the oil in the ground. The UST keeps the dinars that are cashed in and will trade for oil or a lower oil price. There is no mystery to any of this. Anything else that is said is just convoluted logic!

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Hello. This is my first post. I've been lurking for quite some time, and registered as a member earlier this year and was a VIP for a short while.

I have generally chosen not to post in the past given the disrespect shown to many self-professed gurus, who, although getting it wrong much of the time, have offered truthful insight in a number of ways and on a number of occasions. Much of their commentary is beyond the comprehension of the masses given that the majority of the world's populace is not equipped with the true facts as to how finance, commerce, and the law actually work (I could go further to include the universe here but that's another discussion), given that schools, universities and modern text books all omit huge issues that when known change one's perception of what was previously considered a common truth or accepted fact. The same can be said for the gurus, who, whilst are equipped with more facts than the majority, their version of "the truth" is still not the full pictue either, hence their continued perceived failure to date.

Anyway, I wanted to respond to this thread given this appears to be a common issue of confusion. I apologise now for the length of post, however many basic assumptions must be overturned if one is to understand this investment.

It is a fallacy that fiat currencies are not backed by anything. They are backed by the faith that a country is able to pay off it's "promises to pay" (which is all that your notes are); it doesn't matter how, so this naturally includes assets. Some background is needed to understand how this actually works in practice, and how it is accomplished administratively is nothing short of amazing in one's honest opinion.

The current economic system is actually a world-wide bankruptcy system whereby all countries operate as if they were in bankruptcy as far as law is concerned, the US included (for confirmation regarding the USA, look up comments made by Jim Traficant). This is the only way in law that fiat currencies can be implemented. Accordingly, the economic system is an entity that is wholly owned and controlled (and often manipulated) by those creditors holding the banktruptcy liens; property rights dictate that they can do what they want with their property. People will naturally cry that this is a conspiracy theory here, however if they were to do the research they would find that the facts are out there and fully documented. Hence the current perceived meltdown is a controlled demolition, but from the highest levels, so even those corporations people deem as having been pulling the strings are subject to their creators, and in turn those are subject to the creators of the system. Fortunately, the system's creator is sorting things out and pulling the plug on many of these guys (scapegoating!), hence this is why it appears that at one level there is a battle for control going on; the truth is that there is only going to be one winner and this is predetermined by contractual obligation. That winner is all of us - eventually.

This is why people feel their rights have been stolen. What has actually occurred is that you have given your consent to exchange these natural rights for privileges determined by those in charge.

The larger commerical system of law that the bankruptcy economy sits within is where transactions of actual substance take place, and where gold and other substances are the currency, and this is the system within which creditors play. At this level, statutes of law are irrelevant, since their jurisdiction is limited to the debtors, ie all those people who do not realise the part they play in the world. This is the reason why it so often appears as there being "one law for them and one for us"; it is because that is the case! However all are in the position they are in via their own consent, hence it feels unjust that some are prosecuted for an offence that others will not be, however it is all about jurisdiction and contractual obligation and one's current place in the world; we all have the ability to rise up beyond it, however it is a philosophical journey to some extent that many don't have the will to pursue. In fact, this is largely why this has remained undiscoverd by the masses; people police themselves and the rest of society using ridicule and assertions that something is a conspiracy theory or people are nut-jobs etc. People would do well to remember: condemnation without investigation is the height of ignorance (Einstein).

One must also remember the legal adage of "he who has the gold must pays the bills"; it is the creditors are responsible for a countries well-being, or not. Any person who is not aware that this is the case, is lawfully a debtor to these creditors, no matter how much "money" one thinks they have, since this "money" is actually only a promise to pay the creditor in energy, in the future. In law, all have given their consent for this to be the case, through their tacit acceptance and use of the system, hence their current legal status of being subject to statutes etc whether they deem them unfair or unlawful or not. (There are many films serving as metaphors for this concept: creditors are oftern depicted as vampires... they suck your blood, or rather your life force, ie your energy).

Democracy, has two faces. On one side and at face value, it is allowing the people control of their destiny. On the other, it is a tool to make people believe they have a say when really they do not. It is mob rule where the majority wins, however the majority can be manipulated as you see today with the press and its consolidated ownership by a few. The rule of law, and constitutions etc, were put in place to prevent this manipulation and safe guarding basic rights so one cannot be persecuted as a minortiy via new laws (really just rules you have agreed to)... (there is no protection today - some minorities are protected but others are not). However, these constitutions do not apply to debtors within the system since they have given up that right by their own consent! The next stage is either to remove this layer of illusory control via commerce and go back to the consitution etc, or raise the understanding of all so that full use can be made of the systems that have been invented for the benefit of all. This choice is not clear in the public eye therefore a return to constitutional rule is the common solution put forth due to people being ignorant that there are other solutions, however this will result in a situation of scarcity, and an uprising of people who are going without. All of it is only possible because neither side of the argument understands the facts of the matter.

So, back to the point,. the faith in being able to repay, is a reflection of the assets that a country has, which whilst in many cases will include substances such as gold and oil etc which have themselves been monetised within the bankruptcy system through the creation of legal title against an entity (person) who themselves are assets of the country, the majority of a currency's value is backed by the assets known as... the people, and their propensity to work (to labour and create motion) and pay taxes. The people, via the process of birth registration (check your birth certificate, it is bank note paper) are technically the assets or chattels of the country (again, techincally this is on a temporary basis however because people don't realise or choose not to reject this it is effectively permanent), and therefore a country can secure loans etc against their collateral, ie people (hence there is no political will to reduce immigration - more people equals more collateral). Currencies work the same way, and assuming everyone realised this is what backs fiat currencies, said currencies would always have value as long as there are people prepared to work and can do, since currencies are a reflection of energy, and are a tool to control and direct the flow of energy (and largely here I mean labour), or even save it for a later date.

This is why security, infrastructure and industry are so important and such a big focus before the revaluing of the Iraqi currency, since during the war years there has been no ability for people to effectively work and therefore be taxed (and consequently the currency had little or no value). The revaluing will effectively correspond to the monetisation of the people by creating conditions to allow them to operate in the same manner as other countries, thereby backing the currency by their energy for the most par. People themselves have a value to a country, and these values are calculated based on all manner of criteria including birth-weight, gender etc using an internationally agreed (or rather centrally set) algorithm within admiralty laws ; this enables countries to quantify the energy that it's populace can contribute to the economy for use in determining currency values etc.One must remember that oil is valuable because it is energy; but the people are also a form of energy, given that without them corporations would be worthless since nothing can happen without a pair of hands to do it, and in fact people have a greater value given that said energy is largely unlimited. This, coupled with their vast natural resources, is why Iraq's currency could be very strong. Largely their population is very young which is another bonus, as therefore they have considerable energy, many years of work ahead of them, and the older population that would rely on consuming the energy of others, is largely irrelevant due to their low numbers following the wars.

Extra.

All those who feel corporations should be taxed more fail to understand that corporations cannot be taxed since it is only the workers that put anything in; accordingly it is the workers who are actually being taxed. The word corporation is derived from cooperation. The idea of a corporation was to pool energy for the collective benefit, however they system has been perverted for the benefit of the handul at the top, and today we take this as standard despite it not being how things were meant to be. Some will say this was a necessity due to the lack of understanding by the majority, however I would argue that a better approach would have been to raise people's understanding instead so all work together for the benefit of all.

The truth is, there is no need for tax at all. What it occurring is the division and conquering of the people so that you will submit to the forthcoming solution of a centralised top down led dictatorship; one side wants benefits etc for everyone and high tax on high earners, the other sees this as unfair that they are working hard and paying for others and therefore they want reduced taxes and less benefits. The truth is that we can have the best of both worlds.... and a centralised system would offer great advantages, but only if achieved with the masses having full understanding and consciously consenting. There is no need to give up sovereignty, boundaries or any of these other illusory things, provided everyone has full awareness - something the interent is helping to deliver. If a country authorises a centralised power to act on its behalf, it can withdraw that consent and authorisation at any time, provided it is represented by persons of honesty, integrity, and full awareness to the facts. The same holds true on an individual level - it is simply a case of understanding the correct administrative methods to adjust one's legal status. If you don't like something, step out of the jurisdiction - and this does not mean you actually have to move!

The invention of double entry bookkeeping, together with the system of birth registration and therefore value quantifying of individuals could be used to provide all services we currently have without the need for taxation to pay for it. The money is already there, just held in trust because the people are unaware so they will not take it back. Far better would be for people to know, but still leave it there for the benefit of all - services could then be paid for using these trusts and money never needs to be repaid to anyone because it is only yourself that you would owe. Currently banks seemingly create money - what is actually occurring is that they are monetising a loan application, where people are promising to pay back $x via their labour (energy). This can work the same for benefits - money can be created for someone's unemployment cheque by the authorising the access of their personal trust (based on your birth certificate) and creation of money against their name, however as above, there is no need to repay yourself!

The current push by many parties to return to substance backed currencies, ie precious metals etc, is a deception. It may however occur for a short while, effectively between banktruptcy terms. This is the end of the 70 years banktruptcy term within which countries find themselves, and therefore this is a major opportunity. Understandably many parties who have discovered they are being used as collateral are unhappy with this and are trying to break free, ie the conspiracy theory movement. What they fail to understand is that fiat currencies are an invention, an idea, to be used for the benefit of mankind. They have taken us a long way in developing the world, and although leverage is a dirty word, the progress that has been made would not have been without fiat currencies and leverage etc. The problem has been that the trustees of the national bankruptcy states have colluded to benefit themselves at the expense of the people (from one perspective - although from their own they are doing it for your benefit, to teach you). The current time is a time where these trustees can be changed due to the end of the term, and the system can be used for the benefit of all rather than just a few, if only everyone had full awareness of the issues. So the major piece still required to finish this puzzle, is for people to actually realise all this. The debts do not need to be repaid. Yes the debts have acted as a yoke round people's necks, however in the language of law, this has been via our own consent. Now is the time to wake up! There is never anyone to blame but one's self. All debts can be paid off instantly via the correct administrative process by a person with the correct status in law, and this is all going to occur anyway despite people not realising what the problem actually is (and therefore it being impossible for them to see a solution).

Many people believe that they need to be freed from the current system. It should be considered that freedom comes in many forms. I would argue that people would be freer if thay understood and could use the system correctly and therefore remain in this effective bankruptcy situation but via choice and awareness rather than deception, as opposed to withdrawing from the system altogether and therefore not receiving any of the great benefits as a substance backed system would deliver. Because said substances are finite, this type of system creates a scenario of scarcity and fear (of not having enough!) and therefore hoarding, self-centred focus, and consequently war (often this feels out of duty to protect one's neighbour, however it is an illusion!). Fiat systems allow abundance due to the energy being unlimited and help reduce said fear, provided there is conscious consent and awareness of the true system mechanism. Freedom is having choice. Currently people think they have choice, but they largely do not - they are forced either via peer pressure, "laws" of society, and most importantly deceptive tactics of subliminial conditioning to make them think that a thought is there own, when it has simply been suggested to them.

To touch on the universal level, it is fear that maintains the world's problems. Remove it, and the world would be a much happier place. All this can only be achieved via education as to the true mechanisms of the current systems. A good start would be the removal of tax! (Taxes go to the creditors, not on benefits for the debtors - these benefits are paid for using the exact method I suggest ie double entry book-keeping and trust accounts via your application for said benefits, however the deception is that you are told that your taxes pay for these benefits hence dividing you from your neighbour who is receiving the benefits of what you perceive to be your labour but in reality it is his own money, you're just both being conned).

This may not make any sense to most, but I hope for some, it may strike a chord. I wrote this out quickly in one go so if it reads as disjointed I apologise... just offering a perspective. I happily accept criticism and abuse given I have chosen to post this with my eyes open. It is a difficult subject to write about given there are just so many angles and so many assumptions that must be broked and replaced with new ones.

Have a good day guys. Please keep this in Rumours as it will not get read in Perspectives. And treat it as entertainment laugh.gif

 

Why do I get the feeling you and Sonny1 are good buddies..........   :huh:

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  • 3 weeks later...

'It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.'

 

  -Henry Ford- 1922

 

Say on Henry...

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  • 4 weeks later...

I just wonder how the 100's of trillion dinars can be transformed into gazillions of dollars. If they rv they need to have the value to back the gazillions and they only have about 50 billion in gold and their oil. From this perspective it looks a little dim to me...

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  • 3 weeks later...

Jcfrag.

Thanks for posting that

Who ever wrote that has a clear understanding of things

Everyone should take 10 minutes off to read that

One is the screen name I see

Smart person

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Perhaps this is a dumb question this late in the game. I am seeing a lot of references lately to the overwhelming and seemingly endless supply of IQD in circulation. Four trillion? 41 trillion? More? Additionally, there seems to be continuous selling of Dinar going on for those who want just a few more anticipating an imminent RV. What backs the production of all this currency? Presumably, I have always been led to believe that every US dollar printed had its value backed in gold. This was a check and measure to control production and a balance of our money supply and currency.

I do not know what backs the many trillions of Dinar printed. It could be oil down the road, but I would not think so at present, since there is no legitimate connection evident since there is no HCL agreement. Additionally, it appears all oil transactions at present are done in USD. Therefore, what balances and validates this currency to justify a RV? Thanks in advance to those who can educate me.

A closed mouth doesn't get fed so, asking questions is good if you want to learn anything. Who cares if someone thinks it is a dumb question.

 

The U.S. dollar is sadly NOT backed by anything. As for the dinar, who knows how much of it there really is. I don't believe that Iraq is currently still printing dinar, but I could be wrong. There are rumors that the dinar that is on the streets in Iraq are pretty tattered and worn. I personally checked with my dealer about buying more dinar a few months ago that had been circulated simply because it was less expensive. When I asked about the condition of it I was told that it was worn out and that some were even torn so, I decided against it.

 

The dinar isn't worth anything really at the present obviously, however, if you look solely at the country of Iraq itself they have an abundance of natural resources, oil being the largest. Because of this they have the ability to back their currency at a much higher rate. The question is, will they and when?

 

You are correct about all oil transactions being done in USD. That's why it's also referred to as the "petro-dollar". Any country in the world that want's to purchase oil MUST use the dollar to do so. IMO that's the only reason the dollar is worth anything at this point. Kind of crazy if you really think about it.

 

Iraq's currency was worth a lot more before Sadam took over and we invaded so, if you also take that into consideration I believe it does make an RV a possibility. Again, we just don't know for sure how it will all play out, but we have hope.

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A closed mouth doesn't get fed so, asking questions is good if you want to learn anything. Who cares if someone thinks it is a dumb question.

 

The U.S. dollar is sadly NOT backed by anything. As for the dinar, who knows how much of it there really is. I don't believe that Iraq is currently still printing dinar, but I could be wrong. There are rumors that the dinar that is on the streets in Iraq are pretty tattered and worn. I personally checked with my dealer about buying more dinar a few months ago that had been circulated simply because it was less expensive. When I asked about the condition of it I was told that it was worn out and that some were even torn so, I decided against it.

 

The dinar isn't worth anything really at the present obviously, however, if you look solely at the country of Iraq itself they have an abundance of natural resources, oil being the largest. Because of this they have the ability to back their currency at a much higher rate. The question is, will they and when?

 

You are correct about all oil transactions being done in USD. That's why it's also referred to as the "petro-dollar". Any country in the world that want's to purchase oil MUST use the dollar to do so. IMO that's the only reason the dollar is worth anything at this point. Kind of crazy if you really think about it.

 

Iraq's currency was worth a lot more before Sadam took over and we invaded so, if you also take that into consideration I believe it does make an RV a possibility. Again, we just don't know for sure how it will all play out, but we have hope.

Unfortunately because of Iraqs current monetary policy, they only have the room to move the value up to around 500 to 1.....thats about it because of what they have backing the dinar.  Pegged currencies values rely heavily on the reserves behind it. Not the natural resources they have.  They could go higher then that if the physical money supply wasnt so diluted.

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Unfortunately because of Iraqs current monetary policy, they only have the room to move the value up to around 500 to 1.....thats about it because of what they have backing the dinar.  Pegged currencies values rely heavily on the reserves behind it. Not the natural resources they have.  They could go higher then that if the physical money supply wasnt so diluted.

I concur... but I do believe that their natural resources are the basis of what would greatly aid in the building of their reserves. Being pegged to the dollar really isn't a good thing, at least not for a substantial RV anyway. There definitely needs to be changes made in their monetary policy among other things. Maybe there is a possibility that the dinar will no longer be pegged to the dollar. Not exactly sure how that would work, but just a thought.

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no .. and iraq says they are printing new currency with kurdish language included on it . and i say they will simply decree the new dinars value . they will simply say what its worth and that will be final .. i dont think the value of the new dinar has anything to do with the reserves . thats what the lopsters believe .

i believe the reserves simply represents how much money iraq has saved up since the bremmers were introduced,.

i think the reserves will be used to buy the bremmers that are outside iraqs borders.

i believe the new dinars in iraq wont need to be backed up by jack chit. . same thing that backs up every other fiat currency ,, nothing locally .. only fiat curencys that need backed up are those that are outside of its country of origin, in country they are just accepted at its value but its just paper .

i believe when iraq buys things outside of iraq to be imported , they will use petro dollars that are constantly being generated thru crude oil sales and other natural resources .

when iraq pays govt employees ,teachers , police , military . ect,. they will be paid in new dinars and their salaries wil be adjusted to the new rate of the new dinar.

i think this is going to be very simple , and iraq will honor these bremmers for exchange .

i have no idea what to expect for an exchange rate , and i have no idea when this wil take place.

when i bought my dinars , i was told 31 cents per dinar in 2016 when oil output was 12 million barrels a day . .. well thats 3 years out .

if something different happens before that .. then that wil be what it is ., if it isnt by 2016 and 31 cents , ill make my choices at that time .

12 million barrels a day seems out of reach , but ya never know what will happen in this world .

i think their are many different entities involved here and we are pawns . we will be the ones who ligitimize the exchange .

like someone said one time , its a scam and its the biggest scam ever where as those who have been scammed are furthering the scam ,. the educational process is for us to learn all this stuff and when the bigest theft in the worlds history takes place . we wil be a part of it . we wil be the ones ligitimizing the whole process . the actual theft is theft without taking a penny , they will just add new wealth to the global economy . no one will lose a penny , but many wil get rich .

no one will push the issue very much since no one lost anythng.. but we made out like bandits . its a small price for the elite to pay us off . ,, they will gain trillions and pay out a few billion that will eventually end up in their hands over time any way ... yep new wealth spread all over the world just like that .

so im not looking for ligitimate banking practices for rasons on how they are going to do this transaction . i dont think anyone will ever know .this type of scheme is something they dont practice in the banking community and the terminolgy isnt listed in investopedia.. these are the cabal , illuminatti .. bohemian grove types . bilderburgs . thers no way we can all have jobs .without people out there spending money . and everyone cant have money because then there would be no work force . i say concider yourself lucky . you were in the right place at the right time to get the right information that led you to buy the dinar .

how did ya like that mess i made up as i went . it comes naturally to me . .. quite frankly i dont care what happens here . my transactions have been made . im going to see it thru . now am i joking or am i serious . that is yet to be seen . :tiphat:

Excellent Dontlop - I have read this before and I ;like as much now as it did months ago.

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I concur... but I do believe that their natural resources are the basis of what would greatly aid in the building of their reserves. Being pegged to the dollar really isn't a good thing, at least not for a substantial RV anyway. There definitely needs to be changes made in their monetary policy among other things. Maybe there is a possibility that the dinar will no longer be pegged to the dollar. Not exactly sure how that would work, but just a thought.

They could move to a free market float but that would be devastating to the value at this point. They cant even get the market value to match the official value so it seems as of now they are stuck with the dollar.

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They are not printing the new currency just to include the Kurdish language. They could have done it years ago if that was the only purpose. They're printing the new currency as part of their currency reform, and the Kurds are insisting that the new currency include their language. The holdup was parliament's approval of the currency reform.

Could be exactly as you say...except they don't need to print a new currency. They already have a hi-tech currency. And the "new" currency as Dontlop says, could be the additional LDs.

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Look at it people, you can do all the numbers, have a super computer spit out all sorts of crap, but the world's monetary system is rigged! It's a fiat currency system manipulated by the World Bank, The Vatican, London (the Crown), The FED (Federal Reserve Bank), The IMF, The Bank of England. The Money Masters, The Illuminati BANKSTERS. If you think things free float, or it's based on this GDP, or that debit ratio, it's all BS. It's all manipulated to line their pockets with fiat currency, to buy precious metals, then they will collapse the fiat currency, claim that only gold and silver are money, then issue a one world currency "backed" by precious metals, which it won't be. Mark my words, this is what will happen, it will be the ultimate deception.

JMHO

WM13

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They could move to a free market float but that would be devastating to the value at this point. They cant even get the market value to match the official value so it seems as of now they are stuck with the dollar.

True and they do have A LOT of the dollar including the insane amount that just went missing lol. However, I think I remember reading something to the effect that they legally aren't supposed to be using the dollar in the way that they are nor for as long as they have. Won't they eventually HAVE to get off the dollar because of this or will the U.S. just continue to allow it and why? 

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True and they do have A LOT of the dollar including the insane amount that just went missing lol. However, I think I remember reading something to the effect that they legally aren't supposed to be using the dollar in the way that they are nor for as long as they have. Won't they eventually HAVE to get off the dollar because of this or will the U.S. just continue to allow it and why? 

I dont think there are any legal ramifications for citizens using another currency like the USD. I mean the govt could outlaw its use, but being an oil producing country, and being that practically all the money coming into the country is from oil sales in USD, I dont see that happening at all. Another reason for them to get the dinar on par with the USD so that they de-dollarize as much as possible.

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  • 1 month later...

Unfortunately because of Iraqs current monetary policy, they only have the room to move the value up to around 500 to 1.....thats about it because of what they have backing the dinar.  Pegged currencies values rely heavily on the reserves behind it. Not the natural resources they have.  They could go higher then that if the physical money supply wasnt so diluted.

May 11, 2013, 1:43 pm

Economic expert called on behalf of Jamil Antoine, on Saturday, the central bank to adopt oil and gas Kkhozan the reserves "(instead)" of gold and the dollar, stressing that the value of oil exports during the year twice all the gold reserves in the country.

Read more: http://dinarvets.com/forums/index.php?/topic/148518-economist-calls-for-the-adoption-of-the-oil-and-gas-reserve-of-the-central-bank-economist/#ixzz2ih1AAxdW

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Neither....its the foreign currency reserves that are held in the CBI....

Since the dinar is a pegged currency to the USD it has to have something backing it....there is no faith in the dinar right now in the international community so going away from a pegged currency could hurt them drastically....

They have currently about 60 billion (USD value) in their reserves....its made up of USD, the Euro and I think the Yen or something like that....cant remember exactly so you will have to excuse me on that lol but if you take that 60 trillion (total money supply of Iraq) and divide it by the exchange rate (1170) you will see that the amount they have in reserves backs the value of the dinar 110% at this moment.....

That pretty much tells you that for every 1170 of dinar in the money supply is backed by 1 dollar or equal value bill....

I dont know of any country that has or is able to back the value of their currency stricktly on the fact of how much oil they have or resources availible.....otherwise I know alot of countries would have a higher valued currency....look at all the oil producing countries and see the average exchange rate....its not as high as you would think they could support based off their oil/resources

Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground.

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Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground.

There values are based off what they are producing. Not whats in the ground.....commodity backed, yes....but not by total resources in the ground.

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There values are based off what they are producing. Not whats in the ground.....commodity backed, yes....but not by total resources in the ground.

Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground.

Go research it :)

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ussie dollar boosted by its own 'gold standard' The Australian dollar is one of the strongest currencies in the world because it is a commodity-backed currency. That’s why it hit a 29-year high against the US dollar today – and it’s all related to the gold price.

aussie-gold_1867706c.jpg
The gold in Australia's ground acts as 'gold standard'.
 

10:44AM BST 08 Apr 2011

 

comments.gif73 Comments

 

The gold price is hitting new all-time highs on a daily basis because many investors have lost faith in paper money. They believe that central bank printing presses are devaluing currencies on a daily basis.

It is the same lack of belief in paper money that has been boosting the Aussie dollar. Paper money used to be backed by gold held in a central bank, but this was abandoned all over the world, allowing central banks to print money via processes such as quantitative easing.

Today, no currency in the world is on the gold standard – all money is “fiat” money.

However, Australia has significant resources of gold, uranium, iron ore, coal and many other important and valuable commodities. They are in the ground, not in a central bank, but this is the nearest thing the world has to the old gold standard. That’s why the Australian currency is so strong.

The same is also true of currencies in Canada, South Africa and Russia. They are effectively backed by commodities in the ground.

We are in the middle of a commodities supercycle, fuelled by an awakening China. However, the mining industry is cyclical – and commodity prices will eventually fall.

When this happens the Aussie dollar is likely to fall. In 1986, when the oil price tumbled to $10 a barrel, the shock for Saudi Arabia was significant. But Australia’s strength s the diversity of raw materials it possesses.

Commodity prices will fall – and the Aussie dollar along with it. But it won’t be for some time yet

 

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