IQD backing

[dontlop]

they couldnt just take saddams currency away and give them nothing .. so they gave them a new currency to get the ball roling till they get things squared away .. they gave them 28 billion dollars .. and they cant say ok devide that up and thats how much each house is worth .. how much all your schools are worth how much each house is worth...hospitols all the roads artifacts .. treasure and.. every port along the rivers .. every gas station .. every store .. well .. ect .. iraq wealth is far greater than what they were given in 2003 .. and it takes a long time to figure it all out .. with census .. and also at this point they must add into the equation all the new things they have added .. like power plants .. pipelines oil wells that are in production .. .. the new adjusted wealth is what we are waiting for as far as a rv

[Dalite]

and the monetary system is different .. if you just ask what backs up the dollar ...

we only have 146 billion in foriegn reserves in the us

we have around a trillion in actual phisical currency ..

we dont know whats going to happen till the imf does what ever it does with this new currency redenomination and its exchange rates with the currenct dinar ,,,if its simple division .. then thats what it is

they started out with what 28 trillion dinars .. about 28 billion dollars worth of wealth .. in currency .. id say just bagdad alone is worth more than that .. not to mention its ports air and sea....and its highway system throughout the country and all its other cities .... the realestate .. artifacts and natral resources ..

but i agree we dont know the finality of the big picture and iraqs true wealth .. the census reports will unveil it all soon ..

Currently, wealth aside, as IMF borrowers and Paris Club debtors, the Exchange Rate must be backed by the Foreign Reserves.

You may want to start some exchanges with Shabibbi, and offer the other possibilities you have listed here. But in the meantime, they are limited to the Foreign Reserves to back the exchange rate.

Anything is possible, and things can change. backing the exchange rate with the foreign reserves is the current reality.

The Census Reports will give an accurate figure for revenue sharing.

Currently, production is not enough to run the GOI, and meet debt obligations.

This is very likely to change in the future, but they are currently requiring supplemental borrowing to keep the GOI functioning.

I sincerely hope that they start producing enough to keep the country advancing and give a portion to their people, as defined by an accurate census.

[dontlop]

the realestate census are what im waiting for

[rockfl9]

Dontlop:::: Under current law only Iraqi citizens may own land....What is your interest in a real estate census???? Is there such a thing? I read that each province there has a "land bank" not sure what function they serve? title register or actual sales...

I think they will have a hard time attracting major industrial investors if they cant own the land under their facilities.

[keepmwlknfny]

Currently, wealth aside, as IMF borrowers and Paris Club debtors, the Exchange Rate must be backed by the Foreign Reserves.

You may want to start some exchanges with Shabibbi, and offer the other possibilities you have listed here. But in the meantime, they are limited to the Foreign Reserves to back the exchange rate.

Anything is possible, and things can change. backing the exchange rate with the foreign reserves is the current reality.

The Census Reports will give an accurate figure for revenue sharing.

Currently, production is not enough to run the GOI, and meet debt obligations.

This is very likely to change in the future, but they are currently requiring supplemental borrowing to keep the GOI functioning.

I sincerely hope that they start producing enough to keep the country advancing and give a portion to their people, as defined by an accurate census.

Hey dalite, where did you read about Iraq having to back their currency with reserves because they borrow from the IMF and are Paris. club debtors? I think that would be a good read for MANY!!

[Dalite]

Hey dalite, where did you read about Iraq having to back their currency with reserves because they borrow from the IMF and are Paris. club debtors? I think that would be a good read for MANY!!

It is an inference based on two things.

The currency is pegged to the USD, and cannot be backed by itself.

Shabibbi's insistence to back 100%.

If partial backing was an option, the CBI would not be publishing their ability to back the exchange rate at a percentage greater than 100% that is proportional to the published monetary responsibility.

Somewhere, and I can't recall which document it came from, was reference to fully protecting the exchange rate while under the IMF debtor list.

The responsibility of the Paris Club is to have as much debt as possible forgiven. In their case, charity does not begin at home.

In both cases, Iraq's future is dangling by a string that demands repayment. I don't think I have ever seen either organization foreclose on a country before.

As with most of their monetary decisions, something would have been done previously if there were no restrictions.

It is probably a moot point, as Maliki has pretty much dug in, and unless he is given a way to vacate his stance that shows him a winner, indications are that he will continue to try to block currency reform.

As you know, if blocking the CBI'S main plan is successful, they may have to move away from it and try another route.

And as always, I still say nothing is impossible. I could certainly be wrong. To me the requirement for full backing without incurring more accumulative debt was one of the "givens" just like the Dinar being pegged to the Dollar.

I am sure you remember how that turned out.

Also, now that you think about it, have other IMF/Paris Club debtors been given full monetary autonomy while carrying the debtor status? That may be a good thing to look into, and I admit that I did not before making that inference.

But, I didn't hear it in a chat or conference call, and I didn't stay at a Holiday Inn Express last night......

[keepmwlknfny]

It is an inference based on two things.

The currency is pegged to the USD, and cannot be backed by itself.

Shabibbi's insistence to back 100%.

If partial backing was an option, the CBI would not be publishing their ability to back the exchange rate at a percentage greater than 100% that is proportional to the published monetary responsibility.

Somewhere, and I can't recall which document it came from, was reference to fully protecting the exchange rate while under the IMF debtor list.

The responsibility of the Paris Club is to have as much debt as possible forgiven. In their case, charity does not begin at home.

In both cases, Iraq's future is dangling by a string that demands repayment. I don't think I have ever seen either organization foreclose on a country before.

As with most of their monetary decisions, something would have been done previously if there were no restrictions.

It is probably a moot point, as Maliki has pretty much dug in, and unless he is given a way to vacate his stance that shows him a winner, indications are that he will continue to try to block currency reform.

As you know, if blocking the CBI'S main plan is successful, they may have to move away from it and try another route.

And as always, I still say nothing is impossible. I could certainly be wrong. To me the requirement for full backing without incurring more accumulative debt was one of the "givens" just like the Dinar being pegged to the Dollar.

I am sure you remember how that turned out.

Also, now that you think about it, have other IMF/Paris Club debtors been given full monetary autonomy while carrying the debtor status? That may be a good thing to look into, and I admit that I did not before making that inference.

But, I didn't hear it in a chat or conference call, and I didn't stay at a Holiday Inn Express last night......

What you say does make sense.....

Will have to look further into that but it would seem like a given on top of shabs own actions to back the dinar more then 100%.....

Was just curious if you did have some reading material on that topic!!

Thanks!

[Dalite]

What you say does make sense.....

Will have to look further into that but it would seem like a given on top of shabs own actions to back the dinar more then 100%.....

Was just curious if you did have some reading material on that topic!!

Thanks!

You asked a great question!

I am reading some Paris Club documents, and getting some insight. What I am seeing is that they want all bank debt cleared, and the warning that no debt should be considered a higher priority that the agreement they have forged.

I will try to learn more, but will probably be tied up the next few days monitoring for communications out of storm areas, in advance of power restoration . We provide a volunteer service in support of NWS, Salvation Army and some Federal entities. Just something for a bunch of old men to do to try to feel important.

Paris Club Debt Relief

Edited August 27, 2012 by Dalite

[Maggie123]

Dalite "I will try to learn more, but will probably be tied up the next few days monitoring for communications out of storm areas, in advance of power restoration . We provide a volunteer service in support of NWS, Salvation Army and some Federal entities. Just something for a bunch of old men to do to try to feel important".

Good for you Dalite, it's great that you have found ways to help!

We need more "old men" like you.

[dontlop]

iraq uses a program rate .... to exchange dinars for dollars

II. DEFINITIONS

3. For purposes of monitoring under the program, a program exchange rate will be

used. This program exchange rate will be set at ID 1,170 per U.S. dollar. The program

exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign

assets and liabilities denominated in U.S. dollars, as required. For CBI assets and liabilities

denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be

converted in U.S. dollars at their respective SDR-exchange rates prevailing as of

December 31, 2010, as published on the IMF’s website.

page 43 of this document pdf... >>>> http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf

same link...page 54 ... it talks about its defacto peg ...

IX. Exchange rate arrangement:

The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis

since October 4, 2003. The central bank followed a policy of exchange rate stability which

has translated in a de facto peg of the exchange rate since early 2004. However, from

November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate.

As a result, the exchange rate arrangement of Iraq was reclassified to the category of

crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its

earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of

Iraq was reclassified effective January 1 2009 as a stabilized arrangement.

page 10 >>> B. Monetary and Exchange Rate Policy

14. The authorities remain committed to ensuring the independence of the CBI. A

ruling by Iraq’s Federal Supreme Court also noted that while the CBI is part of the country’s

executive apparatus, it is by law independent in its decisions and operations.

here on page 14 .. they mention the real exchange rate ..

so they talk about the defacto peg , and the real exchange rate , A de facto standard is a standard (formal or informal) that has achieved a dominant position, by tradition, enforcement, or market dominance. It has not necessarily received formal approval by way of a standardization process, and may not have an official standards document.

24. Staff supports the CBI’s policy of managing the exchange rate of the Iraqi dinar

to keep inflation low. A stable exchange rate continues to provide a solid anchor for the

public’s expectations in an otherwise highly uncertain environment. Over time, rising oil

revenues could put upward pressure on the real exchange rate, which would warrant allowing

greater exchange rate flexibility. Staff also welcomes the authorities’ continued commitment

to safeguard the independence of the CBI, which is critical for maintaining confidence in the

Iraqi dinar.

Edited August 28, 2012 by dontlop

[Dalite]

Here is a more concise exchange rate classification

The above should answer any questions you should have.

Most following this thread have taken part in discussing how the CBI increased the rate to combat inflation, and how they moved from hyperinflation to below 10% where it stabilized and moved out of the crawling peg category .

I have posted the link above, as well as most of what you referenced in your last post at least a half dozen times between June and September of last year. I think I have linked to it at least 2 times since the first of the month.

If you are having difficulty understanding the info, someone here should be able to answer any questions you may have about what you just posted.

Research is good; it really helps you get an idea of the complexities of maintaining, and backing the exchange rate..

[Scortch]

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!

And gold is no longer stored at fort Knox. Hasn't been for awhile. Now they keep other things worth protecting there. Sure there is some gold but very little compared to the past.

[BradyBear]

Unfortunately the United States went off the Gold Standard many many years ago; that is why Bernake just sitting down printing money to supposedly help the economy is Ridiculous we have nothing to back it up! Thankfully Iraq does in their vast supply of Black Gold.

[BradyBear]

Though I was just a sophmore in college, I do believe that it was 1973 that we left the Gold backing our dollar. So, since then we have been a growing problem as we see today because the government can just print money out of thin air!

[EC429]

TrinityExchange, Thank you so much for being a "model" responder. The fact that folks are here and can ask questions is what I believe this forum is all about. We all start somewhere. Not only have you given information, but you have given sources.

[dontlop]

hello my friend. firstly the usd is what is termed FIAT currency. it is valued by DECREE and not by SUBSTANCE. a dollar is a dollar and has the value of a dollar because it has been decreed to have the value of a dollar by those who created it. 1933 and FDR (Roosevelt) and the federal reserve began the change of monetary policy into what is observed today. FIAT, money by decree.

FIAT money dominates the global monetary policy. i strongly suggest you watch the video "money as debt". it will literally change your world view after 45 minutes of audience and 3x watching it until it finally sinks in. 5 years ago i my brother introduced it to me and i can truly attest to how it began me down a road of complete transformation in how i view the world. next i suggest reading up on the petro dollar. it is the measure of control by the united states and its military industrial complex to control its interest in the global economy by denominating global oil reserves in united states fiat currency. this too will change your world view. i suggest ordering "Petrodollar Warfare: Oil, Iraq and the Future of the Dollar".

the IMF, World Bank, WTO, Bank of International Settlements et al. work in the realm of fiat currency and has established a system of money for the world around these guidelines. it is a system that is removed from substance money and essentially common law courts (substance courts) into a world of "colorful" courts or commercial courts ruled by non-substance and governed or regulated by bills, notes and bonds (insurances). this is a study in and of itself. if you ever get a chance, read up or google the uniform commercial code. this IS the new law of lands over which the world banking system now rules.

i think i have given you enough to begin your educational digging.

be blessed my friend.

i agree with this .. the saddam dinar was demonetized. its gone forever . the new iraqi dinars are yet to come .. i wonder what they will decree its value at . i know some people think they know . but ive yet to see any proof of a rate . i dont believe the bremmers are iraqs permanent currency and that they only represent what oil revenues they have collected since the bremmer was put in place its all been sold in dollars and converted at a program rate of 1166 according to a stand by agreement .. ... they started out with 7 billion dollars out of the dfi fund .. and now are at 67 billion dollars in the reserves because of recent oil revenues . .. everything is on stand by .. the bremmers are besides the wealth of iraq in my opinion and will be added to the decreed value of the new dinar.. they did add around a half a trillion to their countrys wealth over the past ten years along with the accumulated wealth in their reserves . and we can forget the rest of the countrys wealth that was destroyed temporarily by saddams bad crediit rating.. most of that debt being forgiven already ..all should be added to the new dinars decreed value

http://www.youtube.com/watch?v=z3DUe-hFQFM

http://www.oswego.edu/~edunne/200ch13.html

[dontlop]

i agree with this .. the saddam dinar was demonetized. its gone forever . the new iraqi dinars are yet to come .. i wonder what they will decree its value at . i know some people think they know . but ive yet to see any proof of a rate . i dont believe the bremmers are iraqs permanent currency and that they only represent what oil revenues they have collected since the bremmer was put in place its all been sold in dollars and converted at a program rate of 1166 according to a stand by agreement .. ... they started out with 7 billion dollars out of the dfi fund .. and now are at 67 billion dollars in the reserves because of recent oil revenues . .. everything is on stand by .. the bremmers are besides the wealth of iraq in my opinion and will be added to the decreed value of the new dinar.. they did add around a half a trillion to their countrys wealth over the past ten years along with the accumulated wealth in their reserves . and we can forget the rest of the countrys wealth that was destroyed temporarily by saddams bad crediit rating.. most of that debt being forgiven already ..all should be added to the new dinars decreed value

http://www.youtube.com/watch?v=z3DUe-hFQFM

http://www.oswego.edu/~edunne/200ch13.html

if ya just go to minute 36 on this utube and watch a couple minutes . http://www.youtube.com/watch?v=z3DUe-hFQFM

Edited January 27, 2013 by dontlop

[dontlop]

perpetual coin ,, and the credit coin ... >>>>>

same guy who made the currency as debt video .. his answer to the problem

[dontlop]

dont miss part 2 .. money is debt ..

[dontlop]

if ..thats a big if ....

the world banking community is looking for ways to add more money into the system .. this dinar may be a good vehicle .. and it seems they have a couple countrys lined up for future influxes .. if they are im hoping to grab a chunk of it .. and they know it will be deposited .. and wont be in my pocket ,, they need money to be spent ..if you watch these videos that explain the fiat currencys .. it leads you to believe they are up to no good .. im going to get mine and ill spend my share ,, if you wonder how i get to get a share .. i think its because i saw this coming and jumped on it and didnt listen to the nay sayers

the continous growth of the money supply is required .. its as simple as that

[dontlop]

dont miss part 2 .. money is debt ..

http://www.youtube.com/watch?v=lsmbWBpnCNk

[vietnam1969]

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!

I will not give you a negative like 35 people ahead of me have but I do suggest that you get the facts RIGHT before you stick your neck out like that again. There has been no gold backing for the dollar in decades. Do a little research my friend. I will give you a + because maybe you just didn't know better.

[dontlop]

found this today ..UNDER SUB TITLE >>>>> ENEGY AND MINERAL RESOURCES..

PAGE 167 OF 208

CANT COPY AND PASTE IT .. BUT IF SOMEONE KNOWS HOW TO COPY IT PLEASE COPY IT.. THANKS IT DOES SAY

http://siteresources.worldbank.org/INTEEI/214578-1110886258964/20748034/All.pdf

[dontlop]

Energy and Mineral Resources

In this section, the methodology used in the estimation of the value

of nonrenewable resources is described. At least three reasons lie

behind the diffi culties in such calculations. First, the importance of the

inclusion of natural resources in the national accounting systems has been

recognized only in the last decades, and although efforts to broaden the

national accounts are being made, they are mostly limited to international

organizations (such as the UN or the World Bank). Second, there are no

private markets for subsoil resource deposits to convey information on the

value of these stocks. Third, the stock size is defi ned in economic terms—

reserves are “that part of the reserve base which could be economically

extracted or produced at the time of determination”—and, therefore, it is

dependent on the prevalent economic conditions, namely technology and

prices.6

Despite all these diffi culties, dollar values were assigned to the stocks

of the main energy resources (oil, gas, and coal7) and to the stocks of

10 metals and minerals (bauxite, copper, gold, iron ore, lead, nickel,

phosphate rock, silver, tin, and zinc) for all the countries that have

production figures.

http://siteresources.worldbank.org/INTEEI/214578-1110886258964/20748034/All.pdf

Edited February 1, 2013 by dontlop

[dontlop]

Do Changes in Wealth Matter for

the Generation of Well-Being?

Natural resources are special economic goods because they are not

produced. As a consequence, natural resources will yield economic

profi ts—rents—if properly managed. These rents can be an important

source of development fi nance, and countries like Botswana and Malaysia

have successfully used natural resources in this way. There are no

sustainable diamond mines, but there are sustainable diamond-mining

countries. Behind this statement is an assumption that it is possible to

transform one form of wealth—diamonds in the ground—into other

forms of wealth such as buildings, machines, and human capital.

http://siteresources.worldbank.org/INTEEI/214578-1110886258964/20748034/All.pdf