BONDLADY'S CHAT This Afternoon

[zantac]

Zantec I would tend to believe you more if you knew how to use proper grammar and how to spell properly. It is hard to take you seriously when I have to keep stopping and trying to figure out what word you are meaning to use. I think BondLady has more knowledge in this area than you pretend to have.

Zantec (Zantac) I would tend to believe you more if you knew how to use proper (Correct) grammar and how to spell properly (Correctly). It is hard to take you seriously when I have to keep stopping and trying to figure out what word you are meaning (Intending) to use. I think BondLady has more knowledge in this area than you pretend to have.

Oh.

One must say sorry to the English grammar school scholar for the mistakes one has made this evening.

I will continue to study harder in the future to correct ones spelling & grammar before one post again in the future.

If one has used the incorrect grammar above………………tuff that’s how we do it in the west country….if you live on the farm act like the animals chances are you smell the same so why not act the same.

Edited December 29, 2011 by zantac

[tigerstripes]

Forgive what is apparently my ignorance, but I didn't realize there was a relationship between reserves and their excess account...in fact, I'm not aware that Iraq has an excess balance account.

Or perhaps I just don't understand your question.

Sorry, not trying to be smart, and certainly would never accuse anyone of ignorance.

Just going back to what you said about velocity of money, M2 growth and banks hoarding money.

The reserves I'm talking about in this case in dinar reserves, not foreign reserves.

The banks are required to keep a certain level of reserves with the CBI. The latest figures put required reserves at a little under 8 trillion. ID current account stands at a little under 27 trillion. I believe this figure is the banks reserves that are held at the CBI. The CBI also has to hold a certain amount of reserves (can't remember the exact breakdown of percentages) which I think is the ID Vault cash which stands at around 4.5 trillion. Giving a total value of reserves of around 31 trillion.

So, if the banks are holding so much in reserve (roughly three times the required amount), are they hoarding the dinar or distributing it?

The excess current account has risen a little over the past year, but I guess it's negligible compared to the rise in Currency in Circulation and the ID Current Account, so maybe they distribute as much as they get in.

Maybe I'm going round in circles. Sorry if I'm missing something simple here. The main thing that I keep coming back to is, if they have so much in reserve, why do they keep putting more out there? Why keep adding to the money supply?

[HisHands]

Zantac-I do not pretend to be an expert in the English language in any way shape or form. However, your last comment shows me that I do not need to worry about your opinions, because anyone who makes that kind of comment has many more issues than what I care to deal with. I was raised on a farm for your information, but have no idea what on earth that has to do with anything on this thread. I respectfully disagree with you and your post, and wil leave you with well wishes.

[watercop]

But it's not negative vibes, it's the truth. Oil money comes in the form of USD to the cbi. The cbi auctions buy dinar off the street and put the USD in the market. The dinar that cbi brings in is what pays for their governments budget. They don't destroy all of the dinar that comes in from the auctions as bond lady states.

Think about this. They would keep it electronically so when it RV's they have the bigger value also.

[MrFnHappy]

Sorry, not trying to be smart, and certainly would never accuse anyone of ignorance.

Just going back to what you said about velocity of money, M2 growth and banks hoarding money.

The reserves I'm talking about in this case in dinar reserves, not foreign reserves.

The banks are required to keep a certain level of reserves with the CBI. The latest figures put required reserves at a little under 8 trillion. ID current account stands at a little under 27 trillion. I believe this figure is the banks reserves that are held at the CBI. The CBI also has to hold a certain amount of reserves (can't remember the exact breakdown of percentages) which I think is the ID Vault cash which stands at around 4.5 trillion. Giving a total value of reserves of around 31 trillion.

So, if the banks are holding so much in reserve (roughly three times the required amount), are they hoarding the dinar or distributing it?

The excess current account has risen a little over the past year, but I guess it's negligible compared to the rise in Currency in Circulation and the ID Current Account, so maybe they distribute as much as they get in.

Maybe I'm going round in circles. Sorry if I'm missing something simple here. The main thing that I keep coming back to is, if they have so much in reserve, why do they keep putting more out there? Why keep adding to the money supply?

Ok, this is IMO, based on published data and articles taken at face value.....the banks are not hoarding intentionally, but lending is not as easy in Iraq as it is in other more well established economies, but things do seem to be "loosening up" based on the data published by the CBI (increased M2 through deposit accounts and cash outside of banks).

According to published data, I do believe that all dinar taken in at auction is returned to circulation....again, this is based on what is published, but personally, I doubt the data is off bey more than a few %, and so is close enough to draw conclusions.

Again, IMO, Shabibi is increasing circulation because it is the least expensive way for him to control inflation and the dinar's value. Increase in circulation within Iraq's borders cost's the CBI nothing, while an increase in the exchange rate cost's the CBI more of their valuable cash reserves upon RV or RD when dinar outside Iraq returns to the CBI

As far as number for a multiplier, I have read the velocity was around 1.8, but I have yet to be able to marry any combination of numbers to come up with that.....although I must admit to only taking econ and accounting for 3 semesters back in the 70's

Edited December 29, 2011 by MrFnHappy

[keepmwlknfny]

Ok, this is IMO, based on published data and articles taken at face value.....the banks are not hoarding intentionally, but lending is not as easy in Iraq as it is in other more well established economies, but things do seem to be "loosening up" based on the data published by the CBI (increased M2 through deposit accounts and cash outside of banks).

According to published data, I do believe that all dinar taken in at auction is returned to circulation....again, this is based on what is published, but personally, I doubt the data is off bey more than a few %, and so is close enough to draw conclusions.

Again, IMO, Shabibi is increasing circulation because it is the least expensive way for him to control inflation and the dinar's value. Increase in circulation within Iraq's borders cost's the CBI nothing, while an increase in the exchange rate cost's the CBI valuable cash reserves upon RV or RD when dinar outside Iraq returns to the CBI.

I would have to agree with your assessment of the situation......but I do have to ask how would adding more money control inflation? Wouldnt that just make it worse?? (as far as more money chasing fewer goods, or the same amount of goods)

[Francie26]

Oh.

One must say sorry to the English grammar school scholar for the mistakes one has made this evening.

I will continue to study harder in the future to correct ones spelling & grammar before one post again in the future.

If one has used the incorrect grammar above………………tuff that’s how we do it in the west country….if you live on the farm act like the animals chances are you smell the same so why not act the same.

Just because you work with animals doesn't mean you are on their intellectual level. Farming is not what it once was. It has become a real science. To be successful today, independent farmers have to know a great deal about the seed, the animal, the land, the climate, the equipment, the market, and the process. So farmers today are far from ignorant. They are America's rural elite, and they certainly never even accidentally define themselves in terms of their crop. Thus if you raise cattle or hogs, you are not one of them. If you are an American farmer, you need to remember who you are. You are among the most elite people on Earth. So as an American farmer, you should learn the grammar and structure of your native language. . . . It can't hurt.

[MrFnHappy]

When the dinar's value worsens, then effectively, you can buy less with your dinar, this is also inflation. One of two things needs to happen to balance you out, either your dinar needs to become more valuable, or you need more dinar in order to still buy the same amount of goods.

[Francie26]

Unbelievable how so wrong Bondlady is about the auction, not a clue, not even close.

The auctions are there to raise revenue for the GOI, not the CBI.

They sale US$ for IQD to help pay for or everyday business for the country, nothing more nothing less.

If the CBI encourage the Iraqi citizen to exchange the IQD they hold for $s then everything that the GOI & CBI have done to take the US$ of the streets of Iraq for daily trade was pointless.

Bondlady needs some education on the auction me thinks, sad realy as I have always agreed or liked information from her up until now.

Just goes to show if you try to hard to impress the Teacher you end up making a fool of yourself in front of the pupils

Sounds to me like you are the one who is making that mistake. I'm sad to see you making such a fool of yourself, for sure. lol

[tigerstripes]

I would have to agree with your assessment of the situation......but I do have to ask how would adding more money control inflation? Wouldnt that just make it worse?? (as far as more money chasing fewer goods, or the same amount of goods)

Same question from me too.

The articles coming out recently were telling us that the banks were crying out for more $US from the CBI because they were flush with dinars. This was hurting the dinar exchange rate in the market, which was then putting upward pressure on inflation.

I think Saleh came out a week or so ago and said that they had plenty of foreign currency reserves to be able to influence the market rate and relieve the inflationary pressure.

Wouldn't it be a better idea just to draw down on the dinar reserves if they want to control inflation?

[Carrello]

Oh.

One must say sorry to the English grammar school scholar for the mistakes one has made this evening.

I will continue to study harder in the future to correct ones spelling & grammar before one post again in the future.

If one has used the incorrect grammar above………………tuff that’s how we do it in the west country….if you live on the farm act like the animals chances are you smell the same so why not act the same.

Sweetheart, you don't need dinar. You need a farmer.

[cgbrown]

Thanks for the post and all the threads of comments.

[RodandStaff]

Thanks Hamels for the post, and as always thanks Bondlady for once again "bringin it"!

Pass the ketchup,

pass the salt and pepper,

[bondLady] pass the budget

[bondLady] pass the hcl

[bondLady] pass the investment laws

... the RV dinner is in the oven and it's about done! Come on boyz... gitter dun!

GO RV Already Baby!!!

I need to remember to proof read my posts... sorry!

[Darin]

I would have to agree with your assessment of the situation......but I do have to ask how would adding more money control inflation? Wouldnt that just make it worse?? (as far as more money chasing fewer goods, or the same amount of goods)

Exactly what I was thinking... If too much cash exists, prices would have to counter by going up. It all works like a balance, which is why you can't just print more money to pay your bills.

If IQD was more rare, the demand would go up which should drive up the value. The purchasing power of the IQD would go up, which would suppress inflation.

Just because you work with animals doesn't mean you are on their intellectual level. Farming is not what it once was. It has become a real science. To be successful today, independent farmers have to know a great deal about the seed, the animal, the land, the climate, the equipment, the market, and the process. So farmers today are far from ignorant. They are America's rural elite, and they certainly never even accidentally define themselves in terms of their crop. Thus if you raise cattle or hogs, you are not one of them. If you are an American farmer, you need to remember who you are. You are among the most elite people on Earth. So as an American farmer, you should learn the grammar and structure of your native language. . . . It can't hurt.

Ain't that the truth...

You have to understand weather conditions, soil conditions, and have an understanding of chemicals.

Not only that, you have to at least at minimum have an understanding of technology to where some newer units that work in fields have a lot more technology than it used to.

The difference between present day versus the old days is that farming has become more of a corporation versus small family farmers... The big survive by making them large.. In most rural areas, the small farmer likely got bought out. So, rural elite, is probably a good word to use IMO.

[sonnywd]

Banks to farms. Wait. Banks own all the farms. All the farms are owned by the banks. Santa, Satan, same letters, same person.

[zantac]

Zantac-I do not pretend to be an expert in the English language in any way shape or form. However, your last comment shows me that I do not need to worry about your opinions, because anyone who makes that kind of comment has many more issues than what I care to deal with. I was raised on a farm for your information, but have no idea what on earth that has to do with anything on this thread. I respectfully disagree with you and your post, and wil leave you with well wishes.

HisHands

I respect your opinion & I to wish you well.

Happy New Year to you & your family, I do hope this will be the year we have been waiting for

Kind Regards

Z

[yota691]

Banks to farms. Wait. Banks own all the farms. All the farms are owned by the banks. Santa, Satan, same letters, same person.

What the matter Santa didn't bring you what you wanted for Christmas. PS don't talk crap about Santa

[quadkidd1]

I don't understand why people keep saying Shabibi is taking the dinars off the streets. During the next two years, he will be doing the opposite, he will introduce the RV'd dinar and the new denominations so the Iraqui people will accept the dinar for all their daily transactions! All this has nothing to do with the CBI auctions. They are there to make money and that is how they make it.

Your right,

you dont understand as do none of us really.

We need to be in Shabbs head to really know what is for sure going on.

BL is making her assessment just as you are (your opinion )

(and that's all it is )

and it ain't worth a dime more to me.

Poker players never tip their hand.

And there is a hell of a game in play right now!

Sit back ,hold on and enjoy the rest of the ride...

the rapids are approaching!

Quad

[DinarChiTown]

Maybe someone should fill her in on what the auctions are about......

They are selling USD, by selling USD that they aquire from oil revenues, they are able to get dinar to run the country......the USD that comes in is basically converted to dinar through the auctions....

Yep, I was waiting for you to be the pig on this one Keep. It's just wishful thinking. More BS from BL. C'mon guys, wake up. How she explained it IS NOT what is happening.

[yota691]

I would have to agree with your assessment of the situation......but I do have to ask how would adding more money control inflation? Wouldnt that just make it worse?? (as far as more money chasing fewer goods, or the same amount of goods)

Keep I to ask the same question. The following is per wiki, I think the highlighted areas is the what they are doing. IMO

A. If the flow of currency is increasing (too much money or too much velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will rise: it's inflation.

To curb inflation, the possibilities are:

1. to decrease the monetary mass: by monetary destruction or by higher rates

2. to decrease the velocity of circulation of money: by immobilizing large amounts of money:

3. to increase the Production sold:

a) if there is too few Goods and Services available, one should increasing production, importations, and research to create new innovative products;

if there is enough Goods and Services available one should give or lend money to the people who lack (welfare state) to stimulate the economy. This is to motivate the Iraq people, if they quit blowing each other up.

B. If the flow of currency is decreasing (lack of money or lack of velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will decrease: it's deflation.

To curb deflation, the possibilities are:

1. to increase the monetary mass: by monetary creation (simple creation, special bounds creation, creation guaranteed by gold, foreign currencies reserves or domestic assets, ...) or by debt and ordinary bounds emission. This helps the CBI

2. to increase the velocity of circulation of money: by exceptional fiscal measures, each during 2 or 3 months, to induce people into spending their money

3. to decrease the production sold: in taxing unnecessary goods or services, taxing unnecessary importations, regulating lending, ...

The more comfortable situation is at the same time a growth in the flow of currency and of the production sold. Then prices remain stable: They both are just the opposite, but that how i see it.

Keep I to ask the same question. The following is per wiki, I think the highlighted areas is the what they are doing. IMO

A. If the flow of currency is increasing (too much money or too much velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will rise: it's inflation.

To curb inflation, the possibilities are:

1. to decrease the monetary mass: by monetary destruction or by higher rates

2. to decrease the velocity of circulation of money: by immobilizing large amounts of money:

3. to increase the Production sold:

a) if there is too few Goods and Services available, one should increasing production, importations, and research to create new innovative products;

if there is enough Goods and Services available one should give or lend money to the people who lack (welfare state) to stimulate the economy. This is to motivate the Iraq people, if they quit blowing each other up.

B. If the flow of currency is decreasing (lack of money or lack of velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will decrease: it's deflation.

To curb deflation, the possibilities are:

1. to increase the monetary mass: by monetary creation (simple creation, special bounds creation, creation guaranteed by gold, foreign currencies reserves or domestic assets, ...) or by debt and ordinary bounds emission. This helps the CBI

2. to increase the velocity of circulation of money: by exceptional fiscal measures, each during 2 or 3 months, to induce people into spending their money

3. to decrease the production sold: in taxing unnecessary goods or services, taxing unnecessary importations, regulating lending, ...

The more comfortable situation is at the same time a growth in the flow of currency and of the production sold. Then prices remain stable: They both are just the opposite, but that how i see it.

the bottom #1 is the Goal but #3 is the results.

Edited December 30, 2011 by yota691

[DinarChiTown]

And I have rarely seen a Bond Lady chat that did not start a discussion. Some take BL for gospel, just as some take Keep as gospel. But there are many that take the skeleton that Bond Lady provided, through discussion and debate, add the physiology, and eventually come up with a body.

For those experts out there to say we are basically puppets, is really an insult.

Bond Lady won' post here anymore. Can you understand why?

No, I absolutely can't understand why. That whole BS exchange between a couple of months ago was a joke. She tucked tail and ran. She can't and won't debate because her arguments are weak.

[yota691]

No, I absolutely can't understand why. That whole BS exchange between a couple of months ago was a joke. She tucked tail and ran. She can't and won't debate because her arguments are weak.

I just found out she had her own gig today. That dropping of the mic just turns me off, I feel Inform an Engaged right here.

[HisHands]

DinarChiTown-I for one believe that BondLady is a very intelligent, classy lady. I think she was just tired of the bashers on this site who feel that they have to be negative about anything and everything. It is fine if you do not agree with her posts, but it would be nice if you would simply disagree without bashing all the hard work she does on articles. Everyone has a right to their opinion, but sometimes it would be great if people would just stop before they say things that hurt other people.

[quadkidd1]

DinarChiTown-I for one believe that BondLady is a very intelligent, classy lady. I think she was just tired of the bashers on this site who feel that they have to be negative about anything and everything. It is fine if you do not agree with her posts, but it would be nice if you would simply disagree without bashing all the hard work she does on articles. Everyone has a right to their opinion, but sometimes it would be great if people would just stop before they say things that hurt other people.

AMEN

Quad

[DinarChiTown]

AMEN

Quad

HisHands,

You are right, she does a very good job of breaking down articles as she sees them. While I disagree with her on most of it, I'm not bashing her in that sense. I just thought it small of her when she left. There were legitimate questions on her opinions and there was no bashing on her whatsoever. She simply bailed at the first sign of confrontation. Just weak in my opinion.

Edited December 30, 2011 by DinarChiTown