For new 'Dinarians', to help clarify common questions...

[Fi3ry_Ph03n1x]

FP..

Since we're ultimately "bought and paid for" by these Globalist money-masters...is our only possible escape, a system that would allow us to barter for goods and services-and absent barter, purchase those same goods and services with Gold & Silver coins/ Bullion ?

Sounds rather apocalyptic, but inquiring minds want to know..

Well, a system backed by the federal government works. Lincoln did it and paid for the civil war with his "greenbacks", a term we still used today because the green ink on the bills he printed. So theoretically, the government could print its own money without relying on a bond/debt system with the central bank. I think that the USA has gone back and forth from having and not having a central bank four times in its history. The problem is that the IMF/World Bank are too powerful now to allow this to happen again. Because they own other central banks (and many politicians in the US, no doubt), they could prevent this from happening, or weasel their way back to power through media manipulation, fincancial strangling of the economy, or brute power from other nations under its thumb. A barter system, or a value based currency (such as gold or silver) is the most rudimentary solution but would be the most effective because the currency would have intrinsic value, rather than being valued based on 'the good faith and credit of the government'. How often can you say that phrase with a straight face?

If you're really interested in this he11, fire, and brimstone conspiracy theory, check out my post in the wealth forum called, "The Money Masters". It contains a link to a free documentary on the web that is an absolute must see.

FP

[Jeremy123]

good clarifications

[Kent]

When the math is presented correctly Iraq has more than enough reserves right now for an RV. This is not counting on what monies are yet owed to Iraq. If you look at the real world mechanics of valuing a currency, exchange procedure and the slow distinguishing of excess money supply, we now have a valid concept in a RV in the real world.

[Fi3ry_Ph03n1x]

When the math is presented correctly Iraq has more than enough reserves right now for an RV. This is not counting on what monies are yet owed to Iraq. If you look at the real world mechanics of valuing a currency, exchange procedure and the slow distinguishing of excess money supply, we now have a valid concept in a RV in the real world.

[bstephie123]

So im confused a little bit...are you saying that it's not possible for an RV or is it?

I think he is saying it's possible, but just not yet...

[bstephie123]

Chas,

I've been negligent in offering you my thanks for your valuable input in this thread. It is clear that you have have some insight into economics and are offering useful information.

Your post on how money is generated, for example, really kicked the cogs into gear for me on how money is added or removed from the money supply. Simply reclaiming a bank note and discontinuing circulation of that note doesn't reduce the money supply. But the government can increase or reduce the money supply by decreasing or increasing, respectively, the interest rate. If they raise the interest rate to 8%, people borrow less money because of the high interest, and therefore less money is injected into the economy. Dropping interest rates, however, increases the money supply because people borrow more money at great rates.

I think it is ludicrous to think that a bank can reduce trillions of IQD from the money supply in a matter or months by using standard controls -- such as the interest rate -- over the supply of money. What do you think?

Also, I am very interested in the calculations you mentioned for a reserve supply that would sustain an RV. Enorrste tried to explain, but some parts of his explanation I didn't get, and other parts I didn't believe. You seem like you have a head on your shoulders. Whereas some people dig for info that supports what they want to happen, you strike me as the kind of person who will give a straight answer regardless of how that could be interpreted for our investment, and I respect that. Could you please give me a link or a repost of your calculations pertaining to an RV?

Much appreciated,

FP

FP and Chase32; very valuable and sensible insight. I don't want to hear information based on what we WANT to happen but what we think will and can happen based on educated economic insight, so thank you BOTH for your input.

Now I am one of the many out here that does not have the educated economic insight, not even a little bit okay - LAUGH if you must but please, PLEASE don't discard my question(s) I am just trying to educate myself; consider it an honor that I am asking you both this question... You talked about a government can print and destroy money as they please (in a way) but under these circumstances, Iraq has been ravaged by wars and economic emabrgo's for decades; and 13 years of crippling sanction regime etc...what would be the benefit of printing so much money as they have in circulation at this time? Why would they have chosen to do that?

[Fi3ry_Ph03n1x]

FP and Chase32; very valuable and sensible insight. I don't want to hear information based on what we WANT to happen but what we think will and can happen based on educated economic insight, so thank you BOTH for your input.

Now I am one of the many out here that does not have the educated economic insight, not even a little bit okay - LAUGH if you must but please, PLEASE don't discard my question(s) I am just trying to educate myself; consider it an honor that I am asking you both this question... You talked about a government can print and destroy money as they please (in a way) but under these circumstances, Iraq has been ravaged by wars and economic emabrgo's for decades; and 13 years of crippling sanction regime etc...what would be the benefit of printing so much money as they have in circulation at this time? Why would they have chosen to do that?

Hi bstephie123, and thanks very much for your nice words and your question. My 'big picture' about why they would choose to print so much money is actually addressed in another post of this thread. #45 on page 5 if you haven't seen it yet.

As for more specifically why there is so much of it (43 trillion compared to the USD around 8.5 trillion), I think it is the IMF's intention to keep the purchase power of the IQD very low until such time as Iraq proves that they are going to play according to the IMF's rules and be compliant with international financial trading standards as well as UN sanctions, human rights, and a basket of other ways that Iraq can prove to be a good neighbor on the macro scale. I didn't even mention nuclear and other weapon/warfare compliance and oversight, etc. When the IMF is ready, I think they will allow the CBI to revalue its currency back near the 1 USD range. We can only hope that they don't redenominate the currency then as well.

Hope this answers your question from my perspective, and thanks again for your post. By the way, I do my best never to discard an idea or question from anyone who is genuinely seeking to know more as opposed to, well, most of the posts I come across around here. You obviously intend to understand more about this investment and are open-minded. I very much respect that.

Thanks much,

FP

[Fi3ry_Ph03n1x]

Boonduck, did you ever watch the Money Masters video? It may be fifteen years old, but I didn't enjoy it for the quality of the documentary, but rather for the great insights into European and American financial history. I'd like to hear your thoughts about it too, if you've had a chance to watch it.

FP

[chas32]

what would be the benefit of printing so much money as they have in circulation at this time? Why would they have chosen to do that?

I really don't know the answer to that question...I am reasearching this, no good answer as of yet.

Thanks FP

Saudi Arabia

[lynnkit]

I neglected to make a very salient point and that is this: the higher the RV amount, the faster that the large denom notes will come into the CBI and be destroyed. This should definitely be taken into consideration when dealing with the "affordability" question for the IQD. I would not be surprised to see the money supply fall to less than $30 billion within only a few months of the RV.

Steve

Wow this all makes my head spin. I respect both of your opinions, and wisdom.

Thanks for all your hard work. I appreciate both of you, and your hours of work to bring us these different points of view.

[chas32]

Ken sorry did not see the question about Germany. Lost my link for Germany I will go by my memory.

1st exchange went 10 RM for 1 DM to reduce money supply by 90%

2nd phase internal debt was reduce by… 10-1 ratio, some businesses had a different ratio.

3rd Germany needed to reduce money supply more went 13.5 RM to 1DM

4 During a 90 day transition period saving and checking account had limits on withdrawals until new rate was figured out for the DM

5 Rate agreed upon at 10DM to 1USD, saving and checking accounts still had limits for 30 more days.. I think.

6 1948 revalued at 3.33DM to 1USD

Since Iraq does compare themselves to Germany, this could be the surprise move I talk about in my articles … Every million becomes 100,000 times the New Rate. Money supply is dropped 90% and use whatever New Rate you want…lets say .30 to match Germany. 100,000 * .30 =$30,000 not bad.

When your retired you have time to think of these things.

[Kent]

Ken sorry did not see the question about Germany. Lost my link for Germany I will go by my memory.

1st exchange went 10 RM for 1 DM to reduce money supply by 90%

2nd phase internal debt was reduce by… 10-1 ratio, some businesses had a different ratio.

3rd Germany needed to reduce money supply more went 13.5 RM to 1DM

4 During a 90 day transition period saving and checking account had limits on withdrawals until new rate was figured out for the DM

5 Rate agreed upon at 10DM to 1USD, saving and checking accounts still had limits for 30 more days.. I think.

6 1948 revalued at 3.33DM to 1USD

Since Iraq does compare themselves to Germany, this could be the surprise move I talk about in my articles … Every million becomes 100,000 times the New Rate. Money supply is dropped 90% and use whatever New Rate you want…lets say .30 to match Germany. 100,000 * .30 =$30,000 not bad.

When your retired you have time to think of these things.

That would be huge!

What is your take on all the "3 zero" comments then? I still have a hard time seeing those as a reference to just retiring the 3 zero bills or to reducing 3 zeros from the exchange rate. That just simply doesn't seem to be what they are saying. It also seems that Reuters and XE also don't interpret those statements the way our fellow investors do. Any comment on that stuff? Where are you on that?

[lynnkit]

Thanks.I always enjoy reading your level headed posts.

[chas32]

Here is my take on the deletion of zeros, without changing any words. This is the introduction

Discourse in Iraq: A study of what could be

The below articles show that there is counter or dissenting view in Iraq that deletion of zeros

[chas32]

Here is the conclusion for the New Dinarians that have not read it. The main body is here:

http://dinarvets.com/forums/showthread.php?12730-An-Explanation-on-How-Iraq-Will-Cover-a-RV-of-Their-Currency-(From-Outside-Site)&highlight=how+Iraq+will+cover+an+RV

If Iraq decides to lop and redenominate their currency what will the reaction of the Iraqi citizen be? We already know that the people of Kurdistan were