ClownSauce Posted February 28, 2010 Report Share Posted February 28, 2010 Am I missing something? A 25k Dinar note on the face is worth 25,000 dinar. A 25 note on the face is worth 25 dinar. It's units. so many dinar per note, it doesn't matter what the Dinar is worth .86 or $6 the note dictates the number of dinar that it is redeemable for. So...how is it possible they can be the same at the same time? Can someone please explain this to me? This is a fundamental premise of banking if the note is issued it HAS to be redeemable unit for unit upon presentment.... Link to comment Share on other sites More sharing options...
Enorrste Posted February 28, 2010 Author Report Share Posted February 28, 2010 ClownSauce: I have already answered this but will do so again just for you. Here it is: a 25,000 dinar note today is worth $25; a 25 dinar note tomorrow is worth $25. The difference is TIME; today and tomorrow will be separated by the RV. The point of the article is not the "number", but the "purchasing power". Today, 25,000 dinars will buy $25 worth of stuff; after the RV, 25 dinars will buy $25 worth of stuff. That is why Saleh can say that the purchasing power will remain the same. Please re-read what this thread started with one more time, OK?Steve Link to comment Share on other sites More sharing options...
chang Posted February 28, 2010 Report Share Posted February 28, 2010 Steve, just so I get this. If I have 40 of the 25,000 notes and RV at $1.00 then now I have $1,000,000 usd, right?Now if 25,000 notes is value the same as $25, then how is that going to be $1,000,000.00. If you take $25.00 X 40, it comes out only $1000.00. Please explain, I'm confuse. Thanks for your help. ~Chang Link to comment Share on other sites More sharing options...
Enorrste Posted February 28, 2010 Author Report Share Posted February 28, 2010 Second time answering; TIME is the issue; today 25,000 dinars is $25; tomorrow, after the RV, 25 dinars is $25. But that means tomorrow 25,000 dinars is $1,000,000. Get it? So, the local Iraq who today has 25,000 dinars worth $25 will go to the bank tomorrow and deposit his 25,000 dinar note. He will get 25 dinars, worth $25, so no loss in purchasing power, as the article says. But what you are missing is this: he still has 24,975 dinars in the bank!Remember, both are legal currency. He just won't be able to use the 25,000 dinar note, since it is tomorrow worth $25,000. So he deposits it and has 24,975 dinars in savings. Do you think he might vote for Maliki on the 7th if this happens?I think you might be getting it now, right?Steve Link to comment Share on other sites More sharing options...
Captjohn Posted February 28, 2010 Report Share Posted February 28, 2010 Thanks Steve for a reasoned and rational analysis; a beacon of intelligent information amid the schoolyard blather on these dinar sites. Link to comment Share on other sites More sharing options...
chang Posted February 28, 2010 Report Share Posted February 28, 2010 Steve, thank you so much and God bless you. ~Chang Link to comment Share on other sites More sharing options...
BOKINEGRO Posted February 28, 2010 Report Share Posted February 28, 2010 steve u just answered the question i have asked in other forums and nobody could really answer,thanks. Link to comment Share on other sites More sharing options...
tabi Posted February 28, 2010 Report Share Posted February 28, 2010 The intire article is basically saying...If they RV for 1/1...you're getting 25k for 25k (period). What they say about the lower note (new) 25.iqd is that it will be worth 25 dollars and you will be able to buy $25.00 worth of product with a 25iqd instead of a 25,000iqd (period). Not saying you swap a 25k for a 25 note. In turn, people will no longer need to carry the large notes. So, they will bank them or exchange them for lower notes. By doing this, the large notes with 3zeros will be removed from circulation. Furthermore reducing the currency in circulation by trillions. Not reducing the "value" by trillions. Link to comment Share on other sites More sharing options...
lil red Posted March 6, 2010 Report Share Posted March 6, 2010 Thank you for your input! The rv will come soon we cant get anxious cultures are different then our fast passed have to have everything yesterday... The rest of world runs slower they savor god, life, family, money they enjoy the journey. Savor the ride dont be anxious. Link to comment Share on other sites More sharing options...
WOCC Posted March 6, 2010 Report Share Posted March 6, 2010 Thanks for your time and hard work on your info.................... Link to comment Share on other sites More sharing options...
Fi3ry_Ph03n1x Posted March 6, 2010 Report Share Posted March 6, 2010 The intire article is basically saying...If they RV for 1/1...you're getting 25k for 25k (period). What they say about the lower note (new) 25.iqd is that it will be worth 25 dollars and you will be able to buy $25.00 worth of product with a 25iqd instead of a 25,000iqd (period). Not saying you swap a 25k for a 25 note. In turn, people will no longer need to carry the large notes. So, they will bank them or exchange them for lower notes. By doing this, the large notes with 3zeros will be removed from circulation. Furthermore reducing the currency in circulation by trillions. Not reducing the "value" by trillions.You are right that the currency in circulation would be reduced by this theory (by the way, great post, Steve), but the money supply would remain high. Collecting the notes does not reduce the overall money supply, only the paper in circulation. Central bank reserves, inflation, and other macroeconomic considerations will have to apply to all of the money, not just the paper in circulation. This major speed bump in the RV theory is too often overlooked and brushed aside with this misconception that collecting 25k notes will reduce the money supply by trillions. It is far more complicated than that to constrict the money supply by using higher interest rates (which is economically regressive) and other means.Steve does make some good points, though, and I think we have reason to be optimistic. (If you know me, you'll not be surprised that I'm not overly optimistic!)FP Link to comment Share on other sites More sharing options...
kingjaffi Posted March 6, 2010 Report Share Posted March 6, 2010 You are right that the currency in circulation would be reduced by this theory (by the way, great post, Steve), but the money supply would remain high. Collecting the notes does not reduce the overall money supply, only the paper in circulation. Central bank reserves, inflation, and other macroeconomic considerations will have to apply to all of the money, not just the paper in circulation. This major speed bump in the RV theory is too often overlooked and brushed aside with this misconception that collecting 25k notes will reduce the money supply by trillions. It is far more complicated than that to constrict the money supply by using higher interest rates (which is economically regressive) and other means.Steve does make some good points, though, and I think we have reason to be optimistic. (If you know me, you'll not be surprised that I'm not overly optimistic!)FPSure FP collecting the notes might not seem to reduce the money supply but you are assuming a majority becomes electronic and still counted as such. Or better yet stays in circulation through smaller notes equivalent to the lager notes supply. You have to account for goods and services where the physical cash gets exhausted and recycled. Just a little addition. Link to comment Share on other sites More sharing options...
Butler378 Posted March 6, 2010 Report Share Posted March 6, 2010 I have my Dinar in a safe. So, am I better off physically holding onto my $25,000 Dinar notes with the thinking that $25,000 Dinar will hopefully equal $25,000 American dollars? Or may I better off having all my Dinar electronic instead of Physically holding them, with the thinking that a $25,000 dinar note will equal $25.00 American dollars? HELP.... I'm so confussed and don't really understand the whole economic thing. Link to comment Share on other sites More sharing options...
DINARMONSTER Posted March 6, 2010 Report Share Posted March 6, 2010 Thanks Steve ! Iam not confused! TOLEDO !! Link to comment Share on other sites More sharing options...
lil red Posted March 6, 2010 Report Share Posted March 6, 2010 Your review is quite clear. Thank you much! Link to comment Share on other sites More sharing options...
Bruce Blackburn Posted March 6, 2010 Report Share Posted March 6, 2010 Thank you Steve... I found the 1st translation confusing (which for me is easy to accomplish), but you shed alot of clarity for me. I am getting more axious for the RV. Is it going to happen this weekend??:rolleyes: Looking forward to your reply Bruce I have nothing to say about this matter... evidently you believe that Gankans and I are one and the same... I am his earthly father only... Gankans speaks for himself, however I am truly proud of him. Bruce Link to comment Share on other sites More sharing options...
zoomzoom Posted March 6, 2010 Report Share Posted March 6, 2010 Now let the bashers begin. I'm sure they are itching to post. Thanks Steve, translating from one language to another is always difficult. I speak two languages and I know how easy it is to misunderstand meaning from one paradigm to another. Link to comment Share on other sites More sharing options...
Fi3ry_Ph03n1x Posted March 6, 2010 Report Share Posted March 6, 2010 Sure FP collecting the notes might not seem to reduce the money supply but you are assuming a majority becomes electronic and still counted as such. Or better yet stays in circulation through smaller notes equivalent to the lager notes supply. You have to account for goods and services where the physical cash gets exhausted and recycled. Just a little addition.If it is exchanged for smaller currency, there is no change to the money supply, unless you are receiving 20x 1,000 notes for your 25,000k note. In this case, I want to be your banker.If the money is spent on goods or services, the merchant who provided those goods or services now has your money. Even though you may exhaust the goods or services, the money is still part of the money supply because the person you paid still has it. Contracting the money supply is more complicated than this.FP Link to comment Share on other sites More sharing options...
jocko129 Posted March 6, 2010 Report Share Posted March 6, 2010 Thanks for your explained analisys, nthanks, steve Link to comment Share on other sites More sharing options...
Recommended Posts