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From the moment I've been in this investment even until now, the debate of

LOP versus RV has been raging. That very argument is what drove me and

thousands of others AWAY from Investors Iraq (IIF), as it appeared it was

absolutely overrun by those who felt it was their mission to squash the

hopes and dreams of other investors. I am sharing this with the permission

of those who have helped bring me this concept to light, from several

legitimate economists and very sharp minds, their perspective to help each

of you understand this dilemma.

I don't know about you, but I've been told time and again by those who are

absolutely in a position to know that this will NOT be a LOP, but will be a

straight-up RV, yet I found myself not being able to refute the arguments of

those who brought only "part of the truth" forward, using the "numbers" to

their advantage through logical focus on that which was clearly understood.

This post of mine is dedicated to explaining how an RV will happen.


First off, I'll use the exchange of a 10,000 IQD note as my example. To

help explain the economics of this cash-in example, I will use a 1:1 cash-in

ratio between the USD and IQD, that is given a two-tier payout, and a 2%

bank spread.

What You Will Receive:

If you were to cash in your 10,000 IQD note with a bank that charges you a

2% spread, you would personally receive a net take-home of $9,800 credited

to your bank account.

What Your Bank Will Receive:

Your Bank will receive a $10,000 credit to its Federal Reserve Account.

They will also be able to add the $200 profit to their "capital account".

If you don't understand the "Fractional Banking" concept that runs our

country, you may want to, as that is what this is based on, and is what is

behind this entire concept and plan. To learn more about this concept, I

suggest you click HERE, and go to a video post I brought to the forum

previously, and posted in my "Tidbits" section.

Ultimately, the bank wins because they are able to gain $2,000 in lending

power under the 10% "Fractional Banking" model.

What the US Treasury Will Receive:

First off, the US Treasury will receive $3,500 in estimated taxes in the

quarter after the exchange, because you are now in the "rich" category and

get to enjoy the 35% tax bracket. This lowers the "net cost" of the IQD

exchange to the US financial system to $6,500 USD (i.e. $10,000 out - $3,500

in). Furthermore, the US Treasury's rate is higher than the banking rate

(we will use in this example 1.25), thereby further reducing their "net

cost" from $6,500 to $4,000.

Oil Now Enters the Picture:

At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq .

Payment will consist of a $12,500 transfer from the Fed's foreign currency

reserve IQD account to the IRAQ Oil payment account at the CBI in a form

otherwise known as PetroDollars/PetroDinar. Even though the world spot price

of oil is defined in terms of USD, the actual transaction may take place in

any internationally recognized currency agreed to by the parties. For

example, Iran only accepts Yen from Japan for their oil orders, because they

don't want USD in their foreign currency reserves.

How the CBI "RECAPTURES" the Money:

The $12,500 order is filled with 250 barrels of oil based on the spot price

on the date of the sale (for this example we used a $50 USD spot price).

What does it cost Iraq to produce the oil to fill this order? Well they have

negotiated productions agreements for approximately $1.50 USD/barrel. From

that price $.50 USD goes to the national Iraqi oil company who is the

partner in the field the oil came from. Out of the remaining $1.00 the other

oil field partners have to pay the Iraq government a profit tax of $.35 USD

(35%). The net cost to Iraq to produce a barrel of oil used in this scenario

is $.65 USD. (i.e. $1.50 - .50 - .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD

note! Can they afford that? I think so! So, instead of paying out $12,500

for a 10,000 IQD note, they only pay $162.50! That doesn't add to the money

supply much at all does it! They receive their IQD back and place it in the

CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign

reserve credits which are equal to $12,500 USD (which had a net acquisition

cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL

COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from

their foreign currency reserve accounts to redeem the value of 10,000 IQD,

which goes into their operating accounts. At the same time the US got

$12,500 worth of oil for a net cost of $4,000. That's how it was originally

planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the

political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank

actions etc.)

Other Factors that Strengthen Iraq 's Position and Ability to RV:

a.. DFI Funds Returned & Other Assets: $280+ Billion USD, plus other

frozen assets (estimated at $100 billion) will be returned back to Iraq and

added to their foreign currency reserve, bringing it up to $430+ billion


b.. CBI IQD Reserve Requirement Adjustment: The CBI will change the

current fractional IQD reserve requirements from 100% to 15% at the

appropriate time. As a result, the the total potential money supply will be

raised in value to $2.8 Trillion (430 billion/15), while at the same time,

the total physical IQD in circulation will be reduced by removing the large

bills with the 3 zeros over a period of 2 years, as they have indicated.

c.. Oil Production Increased: Iraq will also execute the plan they

announced to increase oil production from 2+ million barrels/day to 10

million barrels/day with the resulting revenues flowing directly to the Iraq


d.. Oil Futures & Forex Contracts Added: To further stir the pot, the CBI

will continue to use it's sales window to market oil futures and forex

contracts. They have shown they can generate significant cash flow in the

private market. Think of their impact in public markets.

There, my friends, is how this plan will be enacted and made possible.

Taking NOTHING, and turning it into SOMETHING, then bringing it back to a

"manageable and reasonable something" that is accepted and supported by

seeming endless supplies of oil. This is how the world's ENTIRE NEW

MONETARY SYSTEM will be regenerated and supported and backed, given, in

essence, a re-birth and renewed for most governments and economic regions.

even by "Black Gold".

So, here's the summary for all the "players" involved, giving ballpark

numbers, and not taking into account superfluous costs, fees, and other

small details that don't really affect the larger picture:

a.. Investor's Net Gain: $10,000 - $200 = $9,800 x .65 = 6,370 for an

investment that cost $10

b.. Bank's Net Gain: $200 added to "capital account", plus $2,000 they can

use to loan out.

c.. US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in

quarterly taxes = $6,000

d.. CBI/GOI/Iraqi People Net Gain: $12,500 - $162.50 = $12,337.50 +

Profits from "Other Factors"

e.. Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 =


This is the wealth that was generated from a single 10,000 IQD note that was

given an original value of approximately $10! Is that amazing or what?!

You tell me. can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT

RV their currency, but simply replace their large denoms for smaller

ones?!!! LOL!!!

In this scenario, EVERYONE WINS. and the IQD is slowly (over 2 years) taken

back in to the CBI. eventually destroyed, leaving a manageable M2 behind,

having created HUGE WEALTH throughout the world to re-supply what was

allowed to be destroyed in the "great bleed" over a period of just a few

weeks a couple of years ago, even the greatest redistribution of wealth the

world has ever seen. Believe it or not, it has happened for this very

purpose, and it IS coming!

Go Iraq . Go Understanding. Go RV. Go Dinar!

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