IQD backing

[MrOptimistic]

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.

The gold in Australia's ground acts as 'gold standard'.

 

By Garry White

10:44AM BST 08 Apr 2011

 

73 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.

Related Articles

• Aussie hits 29-year high against the dollar

  08 Apr 2011

• Anti-immigration politician returns to forefront of Australian politics

  11 Apr 2011

• One in seven chance nations will abandon euro

  04 Apr 2011

• SME lending: the difference between survival and business growth? RBS

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

 

 

Lol I appreciate the support, I was trying to get him to go research and investigate on his own. 

[mcjocky1]

Lol I appreciate the support, I was trying to get him to go research and investigate on his own. 

 

   Hope he gets a bit more up to date info., Gerry was employed by the Telegraph as a mining correspondent hence the commodities angle, and how he used to "talk up" BHP Billiton in Aussie... Forget fears of China overheating and invest in mining shares while they are cheap Feb 10th 2012.

 

   How stable have mining shares been?

[keepmwlknfny]

Maybe I am mistaken. I will have to look more into that and let you know what I find. Was under the impression from reading about Canada and their currency that it was based more on what they were producing so I assumed that is how most commodity currencies work.

Of course it still woukdnt help Iraq at this point anyway. They have a lot of work to do if they wish to move towards a commodity backed currency.

[MrOptimistic]

Maybe I am mistaken. I will have to look more into that and let you know what I find. Was under the impression from reading about Canada and their currency that it was based more on what they were producing so I assumed that is how most commodity currencies work.

Of course it still woukdnt help Iraq at this point anyway. They have a lot of work to do if they wish to move towards a commodity backed currency.

the aussie gold dollar!

 

maybe Iraq can mint an Iraqi gold dollar with a camel carrying barrels of oil? lol

[slb]

keepmwlknfny, on 25 Oct 2013 - 12:37 PM, said:

Maybe I am mistaken. I will have to look more into that and let you know what I find. Was under the impression from reading about Canada and their currency that it was based more on what they were producing so I assumed that is how most commodity currencies work.

Of course it still woukdnt help Iraq at this point anyway. They have a lot of work to do if they wish to move towards a commodity backed currency.

the aussie gold dollar!

 

maybe Iraq can mint an Iraqi gold dollar with a camel carrying barrels of oil? lol

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-11#ixzz2ilshxsPE

 

 

Admitting a mistake is the first step in lobster recovery!

[keepmwlknfny]

keepmwlknfny, on 25 Oct 2013 - 12:37 PM, said:

the aussie gold dollar!

maybe Iraq can mint an Iraqi gold dollar with a camel carrying barrels of oil? lol

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-11#ixzz2ilshxsPE

Admitting a mistake is the first step in lobster recovery!

First off im not a lopster but appreciate the thought. Secondly im wrong about things but I dont hsve a problem being shown why. I actually like it at times because it means I learned something.

[slb]

First off im not a lopster but appreciate the thought. Secondly im wrong about things but I dont hsve a problem being shown why. I actually like it at times because it means I learned something.

Just funnen ya, no malice intended. I to, have learned a lot on this crazy journey!

[doctor robbins]

The author of that article is making an argument based on semantics.  He's redefining the whole concept of an asset backed currency.  Historically money was backed by gold and was redeemable for those who chose to claim the money's worth in gold.  It's hard to redeem a currency with gold that's still in the ground.  All that happened in Australia is that the speculation in gold drove the value of the Aussie dollar up since they're a large exporter of gold.  But he even admits that the AUD is fiat just like every other currency including those of Russia, S. Africa, and Canada.

[mcjocky1]

the aussie gold dollar!

 

maybe Iraq can mint an Iraqi gold dollar with a camel carrying barrels of oil? lol

 

Having bought and sold quit a few coins over the years... is that coin not the Stuart Devlin 1983 designed coin? the Obverse has the 1999 Ian Rank-Broadley Q.E.11 head.

 

If it is, am I right in thinking that it is 92% Copper 6% Aluminium,& 2% Nickel.

 

I have seen these but not in gold... bugger I was going to have an early night, but now need to research and learn.

[keepmwlknfny]

The author of that article is making an argument based on semantics. He's redefining the whole concept of an asset backed currency. Historically money was backed by gold and was redeemable for those who chose to claim the money's worth in gold. It's hard to redeem a currency with gold that's still in the ground. All that happened in Australia is that the speculation in gold drove the value of the Aussie dollar up since they're a large exporter of gold. But he even admits that the AUD is fiat just like every other currency including those of Russia, S. Africa, and Canada.

Interesting....thank you for your thoughts. Have not had access to my computer to effectively research what mr optimistic is claiming. I know that some currencies value is attributed to what they are producing but have not heard of any country being back solely by whats in the ground or whats though to be in the ground.....

[MrOptimistic]

Having bought and sold quit a few coins over the years... is that coin not the Stuart Devlin 1983 designed coin? the Obverse has the 1999 Ian Rank-Broadley Q.E.11 head.

 

If it is, am I right in thinking that it is 92% Copper 6% Aluminium,& 2% Nickel.

 

I have seen these but not in gold... bugger I was going to have an early night, but now need to research and learn.

It is the Stuart Devlin and yes those are the correct metal distributions.

I was only using it to crack a joke. No laughs, must mean it was a bad joke. lol

 

Interesting....thank you for your thoughts. Have not had access to my computer to effectively research what mr optimistic is claiming. I know that some currencies value is attributed to what they are producing but have not heard of any country being back solely by whats in the ground or whats though to be in the ground.....

It's not a very crazy abstract idea to base value off of what is explored in the ground. The USD is backed by our debt and faith in the dollar which seems even crazier compared to what Canada and Australia are basing their values off of. At least theirs is somewhat tangible lol.

[keepmwlknfny]

It is the Stuart Devlin and yes those are the correct metal distributions.

I was only using it to crack a joke. No laughs, must mean it was a bad joke. lol

It's not a very crazy abstract idea to base value off of what is explored in the ground. The USD is backed by our debt and faith in the dollar which seems even crazier compared to what Canada and Australia are basing their values off of. At least theirs is somewhat tangible lol.

But your not thinking of the whole picture.....I still think its based off their production, not total of whats in the ground and not mined yet. And even IF iraq can use their total reserves in the ground which isnt proven even possible, they still have way too many liabilities out to even make a difference in the dinars value.....

[MrOptimistic]

But your not thinking of the whole picture.....I still think its based off their production, not total of whats in the ground and not mined yet. And even IF iraq can use their total reserves in the ground which isnt proven even possible, they still have way too many liabilities out to even make a difference in the dinars value.....

they could value their currency off their oil reserves, which the 143 billion in reserves is an  old estimate of about 30 years and a new reserve number is being calculated right now. 266 billion is saudi arabia's reserve number, Iraq may be passing soon.

[keepmwlknfny]

they could value their currency off their oil reserves, which the 143 billion in reserves is an old estimate of about 30 years and a new reserve number is being calculated right now. 266 billion is saudi arabia's reserve number, Iraq may be passing soon.

There is roughly 150 billion proven reserves to date. Thats not gonna do them any better then the foreign reserves and gold they have now backing the currency. They have 15 trillion worth in oil......theCBIs liabilities are more then double that.....

Which is why it would do them no good to switch to commodity backed right now. And agaim that is still assuming they can use total reserves in the ground which would also lower the value of the currency the more that is pumped out and sold....

[MrOptimistic]

There is roughly 150 billion proven reserves to date. Thats not gonna do them any better then the foreign reserves and gold they have now backing the currency. They have 15 trillion worth in oil......theCBIs liabilities are more then double that.....

Which is why it would do them no good to switch to commodity backed right now. And agaim that is still assuming they can use total reserves in the ground which would also lower the value of the currency the more that is pumped out and sold....

As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves.

[dontlop]

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

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inUJEm9m

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 price. Iraq oil is easily extracted and cost effective shallow wells are perfect

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inVJOLnd

Natural resources play two basic roles in development:

• The fi rst, mostly applicable to the poorest countries and poorest

communities, is the role of local natural resources as the basis of

subsistence.

• The second is as a source of development fi nance. Commercial

natural resources can be important sources of profi t and foreign

exchange. Rents on exhaustible, renewable, and potentially

sustainable resources can be used to fi nance investments in other

forms of wealth. In the case of exhaustible resources these rents

must be invested if total wealth is not to decline.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inVscTJs

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.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inWJBCLd

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

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inWurFO7

The reason why commodity oil backing the dinar could work for Iraq is because the oil is nationalized

One owner the govt

The ones who issue the dinars

Edited October 26, 2013 by dontlop

[MrOptimistic]

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

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inUJEm9m

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 price. Iraq oil is easily extracted and cost effective shallow wells are perfect

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inVJOLnd

Natural resources play two basic roles in development:

• The fi rst, mostly applicable to the poorest countries and poorest

communities, is the role of local natural resources as the basis of

subsistence.

• The second is as a source of development fi nance. Commercial

natural resources can be important sources of profi t and foreign

exchange. Rents on exhaustible, renewable, and potentially

sustainable resources can be used to fi nance investments in other

forms of wealth. In the case of exhaustible resources these rents

must be invested if total wealth is not to decline.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inVscTJs

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.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inWJBCLd

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

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-8#ixzz2inWurFO7

The reason why commodity oil backing the dinar could work for Iraq is because the oil is nationalized

One owner the govt

The ones who issue the dinars

nicely done mr.dontlop

[dontlop]

The USA sells its property with mineral rights

The us couldn't back its currency with minerals or oil and gas

But Iraq govt owns all the oil in Iraq

[keepmwlknfny]

As a result of military occupation and civil unrest, the official statistics have not been revised since 2001 and are largely based on 2-D seismic data from three decades ago. International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves.

They have been updated numbers.....might not be all they find but again its not gonna help Iraq at this point. Too many liabilities. ....

[dontlop]

Iraqis debt to GDP has gone from 800 percent down to 25 percent of debt to its GDP

It was Iraqis debt to GDP that destroyed the Iraqi dinar

I think most western country's debt to GDP is around 70 to 100 percent of GDP

Iraq is in way better shape than the USA is in that area

[keepmwlknfny]

Iraqis debt to GDP has gone from 800 percent down to 25 percent of debt to its GDP

It was Iraqis debt to GDP that destroyed the Iraqi dinar

Your right it had absolutely nothing to do with the trillions saddam printed.......

Iraqis debt to GDP has gone from 800 percent down to 25 percent of debt to its GDP

It was Iraqis debt to GDP that destroyed the Iraqi dinar

Your right it had absolutely nothing to do with the trillions saddam printed.......

[dinarbeleiver]

A question- could Iraq back their currency not just with the oil reserves but also the massive amounts of untapped gold mines and also the phosphate. Also isn't there other rare earth minerals that they could back the currency to. Is Basel 3 a move where countries have asset backed currencies?

[keepmwlknfny]

A question- could Iraq back their currency not just with the oil reserves but also the massive amounts of untapped gold mines and also the phosphate. Also isn't there other rare earth minerals that they could back the currency to. Is Basel 3 a move where countries have asset backed currencies?

No basel III has nothing to do with how a central bank backs the value of its currency. Its on the commercial bank level to keep more reserves at hand as to not have a repeat of the 2008 banking crisis we experienced here in the states.

I have still yet to find any solid information stating a country can use unmined resources (only whats in the ground) to back a currency. What they are producing yes, but not whats just sitting in the ground. The article posted aboit Australia seems to be an objective piece using semantics about its the gold in the ground but there is nothing to corroborate that. I still think its based off what they are producing. Itbshould be known they have at least one of the top ten gold producing mines in the world.

[dinarbeleiver]

No basel III has nothing to do with how a central bank backs the value of its currency. Its on the commercial bank level to keep more reserves at hand as to not have a repeat of the 2008 banking crisis we experienced here in the states.I have still yet to find any solid information stating a country can use unmined resources (only whats in the ground) to back a currency. What they are producing yes, but not whats just sitting in the ground. The article posted aboit Australia seems to be an objective piece using semantics about its the gold in the ground but there is nothing to corroborate that. I still think its based off what they are producing. Itbshould be known they have at least one of the top ten gold producing mines in the world.

thanks keepem. I seem to remember someone on cnbc talking about Iraq and how it could be as self sufficient as Australia. In many respects I agree that Iraq could be similar to Australia.

Also keepem I read an article stating Iraq has more gold in the ground than oil. My father who has worked in Iraq on the oil fields reckons that Iraq has that much oil that when they finally explore the whole country it will be revealed to be the biggest oil field in the world. If they can use the oil and untapped gold in the ground surely that will back an RV of some sorts. It's nice to be civil with one another -makes a good change

[dontlop]

Your right it had absolutely nothing to do with the trillions saddam printed.......Your right it had absolutely nothing to do with the trillions saddam printed.......

Close but your still ignorant

The horse doesn't go behind the cart

The cart goes behind the horse

Saddam could not pay his bills ... .his debt to GDP was out of control so he had to print money

He didn't print money first then have a debt to GDP problem

You need to do more research Watson

I know I've posted All that information before for you to read but you choopse not to read

Iraq Economic Data (1989-2003)

https://www.cia.gov/library/reports/general-reports-1/iraq_wmd_2004/chap2_annxD.html

I hope your not here to ruin this thread too

In the mid 1980s saddams reserve currency was depleted because of the Iran war

In 1990 saddam lost all credibility when he invaded Kuwait

He was cut off debts were called in sanctions were put in place causing him not to be Able to sustain his debt because his GDP was intentionally cut with sanctions

So his GDP was severely cut he could t pay his bills money was scarce which caused interest rates to climb which caused inflation to sky rocket out of control remedy this saddam printed money

He didn't print money which caused a debt to GDP problem

That problem was caused by sanctions

Printing of money came after the problem