Interview With Legolas From Sam I Am

[billy goat]

Not to mention educational. I don't know about you, but I can always use more info and different viewpoints. Helps establish a more balanced decision making process!

Yup. My investment has been minimized by what I have learned through the geo-political, cultural and religious polemics of the middle east. I can't put a price on the learning - but I do know this: It has affected my spiritual growth and left me more confident of the future. (We may be impotent in affecting the outcome but that well may be the catalyst to correctly focus our lives).

Thanks again Legolas.

[GotSix]

Exactly right, engineer. It's always been my understanding that the sole purpose of the auctions is to maintain the artificial rate of 1170. Without those controls, the value would either increase, OR decrease dependent upon their pathetic economy. According to CBI and IMF figures, the total money supply has without question INCREASED every year since 2003. I still haven't seen anything to refute those numbers. Sure would like to though.

Very well put Legolas ....."It's always been my understanding that the sole purpose of the auctions is to maintain the artificial rate of 1170"...so how are they able to do this on a daily basis ...I know ....cause the circulation is not as great as disclosed.....& I'm referring once again to the CBI's audited financials......

[RodandStaff]

I took the liberty to copy my post from your original post in case you missed it-

As far as the post legolis, I know I haven't seen you around in a while, and the last time I remember you posting you were selling your dinar. I am sorry if in your opinion this investment is a dead end... but there are plenty of well educated folks around the world that would disagree with you... such is life! That doesn't mean I think any less of you, I just don't happen to agree with you, and that is my opinion. Your entitled to yours... though really, coming on someone else's site and trying to put holes in their boat... don't know if that is really the smart/ethical thing to do quite honestly. I hope you do well with whatever path you so choose my friend, and I have noticed fewer coffee cups being destroyed from stray laser beams... which makes the morning a bit less chaotic.

Peace to you, and Happy New Year - Rod

Read more: http://dinarvets.com/forums/index.php?/topic/97968-disappointing/page__st__20#ixzz1iL6nk7jp

[4given2]

Yup. My investment has been minimized by what I have learned through the geo-political, cultural and religious polemics of the middle east. I can't put a price on the learning - but I do know this: It has affected my spiritual growth and left me more confident of the future. (We may be impotent in affecting the outcome but that well may be the catalyst to correctly focus our lives).

Thanks again Legolas.

BINGO!!

[engineer1138]

Very well put Legolas ....."It's always been my understanding that the sole purpose of the auctions is to maintain the artificial rate of 1170"...so how are they able to do this on a daily basis ...I know ....cause the circulation is not as great as disclosed.....& I'm referring once again to the CBI's audited financials......

So are you saying that they could not be keeping the dinar stabilized with sales of a couple or few hundred billion dinars a once or twice a week (something like that isn't it?) if there are in fact 27T dinars in circulation? i.e. that 0.25T is too small a portion, 1% of 27T? I'd say just the opposite its plenty big given the very limited dinar market. The GOI gets dollars for oil, but they want to spend dinars in Iraq. So they exchange dollars for dinars with the CBI increasing its reserves. But those dinars increase the money supply so the CBI also has to be buying them back, mitigated by growth in the economy, to keep inflation under control and the value of the dinar stable. Or at least that is how I think it works.

Also GotSix we have talked about the audited financials before. The fact that they are qualified does not imply they are bogus. We need the details of just what aspects of the report were the problem. It might be serious, it might not be. In any case they did not give an "adverse" report which would imply a general lack of adherence to accounting standards.

Edited January 2, 2012 by engineer1138

[4given2]

LOL. Ahhhhh.....the sectarian issue......one which I've written on many times in the past, and is always good for starting an argument which unfortunately can never be won. It requires a permanently pinned topic page of its own. Suffice it to say that it is very likely to be THE issue which will ultimately bring down the Iraqi government, the rest of the Middle East, and perhaps even the world, if or when one of the religious fanatics obtains control of a nuclear or biological weapon. When that finally happens, hundreds of thousands or more will die, instead of the tens of thousands who die needlessly each year as a result of indefensible religious dogma. The only possible solution is education, and the U.S. is as responsible as any other country for the failure to address this incredibly important issue. Our belief systems are just as crazy and indefensible as the others, and there exists an incredible resistance to recognize that as truth.

For the first time, very recently, I finally saw an article which discussed a lone Islamic Imam who was giving classes and attempting to make DVD's of his lectures to be distributed to large numbers of people, where he attempts to teach that the Quran does not encourage religious jihad, and that in fact the opposite is true. He's not entirely correct, but the effort is a valiant one and is to be commended and encouraged, and appears to be having at least a minimally positive affect. Unfortunately, it won't get much attention. Attempts to teach the true facts regarding ALL religions receive much lower priority (if any) than military efforts to fight terrorism. Military efforts will never succeed. For every terrorist killed there are 100 more waiting in line to replace them. Until people worldwide are convinced that their religious beliefs are inaccurate, things will only get worse - technology assures us of that fact. Most people, of virtually every religion have never actually read their respective bibles and associated books. Their beliefs come from the teachings of parents, friends, clergy, and cherry-picked excerpts from these books, rather than from their own study and examination of readily availalble evidence. Were they to make that effort to study, examine the evidence and learn, there would be an excellent chance that their belief systems would change drastically. The reality is that this is unlikely to occur in our lifetime, and Iraq, Iran, and the rest of that region are likely to continue to spiral out of control as recent events in Iraq and elsewhere effectively demonstrate. I could write about it for hours, but it does no good. Thanks for asking though.

Once again Legolas, great post/thread.

[GotSix]

So are you saying that they could not be keeping the dinar stabilized with sales of a couple or few hundred billion dinars a once or twice a week (something like that isn't it?) if there are in fact 27T dinars in circulation? i.e. that 0.25T is too small a portion, 1% of 27T? I'd say just the opposite its plenty big given the very limited dinar market. The GOI gets dollars for oil, but they want to spend dinars in Iraq. So they exchange dollars for dinars with the CBI increasing its reserves. But those dinars increase the money supply so the CBI also has to be buying them back, mitigated by growth in the economy, to keep inflation under control and the value of the dinar stable. Or at least that is how I think it works.

Also GotSix we have talked about the audited financials before. The fact that they are qualified does not imply they are bogus. We need the details of just what aspects of the report were the problem. It might be serious, it might not be. In any case they did not give an "adverse" report which would imply a general lack of adherence to accounting standards.

Good try....yes I did refer (& good for you to pick up on it) that at least they didn't receive an "adverse" opinion....but based on how you refer to it .....I suggest you do a little more homework....& although well thought out ....I respect how you've stated...."Or at least that is how I think it works"

[jas428]

I think we all agree that the news has stated that the CBI has pulled in dinar. However, the issue here is that if they have been recirculating it, it matters not how much they pull in because its being put right back out there.

[seetrader1]

I think we all agree that the news has stated that the CBI has pulled in dinar. However, the issue here is that if they have been recirculating it, it matters not how much they pull in because its being put right back out there.

That is correct.

[GotSix]

I think we all agree that the news has stated that the CBI has pulled in dinar. However, the issue here is that if they have been recirculating it, it matters not how much they pull in because its being put right back out there.

"Recirculating" ...cause I thought we all agreed to stop buying.....so what other real purpose is it used for???????????

Edited January 2, 2012 by GotSix

[jas428]

"Recirculating" ...cause I thought we all agreed to stop buying.....so what other real purpose is it used for???????????

I want the same thing you do my friend. The fact is, there is no proof that the dinars from the auctions are not put right back into the economy. People seem to misconceive that the dinars are pulled in from auctions and just sitting at the bank when , indeed, I always understood the auctions as redistributing the currency back into the economy. If a trillion were sucked back in to the CBI, the value is still there...it doesn't just disappear.

[tigerstripes]

Also GotSix we have talked about the audited financials before. The fact that they are qualified does not imply they are bogus. We need the details of just what aspects of the report were the problem. It might be serious, it might not be. In any case they did not give an "adverse" report which would imply a general lack of adherence to accounting standards.

Hi Engineer,

My problem is not so much with the audited reports. (By the way GotSix, if you could point us to the aspects that you're questioning it would be appreciated)

My problem is more with how they allocate everything on the financial indicator spreadsheet.

I've been trying to match up numbers on the spreadsheet with their annual report.

This is where I started from:

Table No. 5 on the annual report lists in their Liabilities - Reserve Money with a value of 53,809,831 (Millions Dinar) - figure for December.

Now, on the financials spreadsheet, they list 53,810 (billions of dinar) as their Monetary base. Okay, that makes sense.

But the Monetary base figure is a total of the Foreign assets + the Domestic assets (which has a negative value).

First question - How can foreign assets be a liability to the CBI?

Moving down the spreadsheet, the value of 53,810 (billions of dinar) is used again as a total of the currency outside banks + the bank reserves.

The figure for currency outside banks is derived from a report that I guess the CBI receives from the Research & Statistics Dept. But I can't find a source for that.

I can't quite marry up the reserves figures on the spreadsheet with the numbers on the Annual report, but the numbers are pretty close.

Maybe I'm getting myself confused with numbers, but it just seems strangely coincidental that those numbers are exactly the same.

I'd be interested to get your thoughts.

[GotSix]

I want the same thing you do my friend. The fact is, there is no proof that the dinars from the auctions are not put right back into the economy. People seem to misconceive that the dinars are pulled in from auctions and just sitting at the bank when , indeed, I always understood the auctions as redistributing the currency back into the economy. If a trillion were sucked back in to the CBI, the value is still there...it doesn't just disappear.

Agreed, there is no proof & they definitely can not provided the facts (i.e. see yearly audited financials & contradicting articles)...soooooo again where does or how does it get redistributed???? is it for increased governmental salaries????? as per recent articles cause if that's the case... I say we start a civil lawsuit

[GotSix]

Hi Engineer,

My problem is not so much with the audited reports. (By the way GotSix, if you could point us to the aspects that you're questioning it would be appreciated)

My problem is more with how they allocate everything on the financial indicator spreadsheet.

I've been trying to match up numbers on the spreadsheet with their annual report.

This is where I started from:

Table No. 5 on the annual report lists in their Liabilities - Reserve Money with a value of 53,809,831 (Millions Dinar) - figure for December.

Now, on the financials spreadsheet, they list 53,810 (billions of dinar) as their Monetary base. Okay, that makes sense.

But the Monetary base figure is a total of the Foreign assets + the Domestic assets (which has a negative value).

First question - How can foreign assets be a liability to the CBI?

Moving down the spreadsheet, the value of 53,810 (billions of dinar) is used again as a total of the currency outside banks + the bank reserves.

The figure for currency outside banks is derived from a report that I guess the CBI receives from the Research & Statistics Dept. But I can't find a source for that.

I can't quite marry up the reserves figures on the spreadsheet with the numbers on the Annual report, but the numbers are pretty close.

Maybe I'm getting myself confused with numbers, but it just seems strangely coincidental that those numbers are exactly the same.

I'd be interested to get your thoughts.

Tigerstripes.....I give you all the credit in the world ....trying to decipher the spreadsheet....but the reason you are having such a hard time is no different then what the auditors have determined....it's one crazy puzzle with many pieces missing....but one thing is for sure....you're not the only one "confused with the numbers" & that's no coincidence

[Markinsa]

If it helps, I discovered The Financial Indicators Spreadsheet is actually a Balance Sheet.

-

[engineer1138]

Hi Engineer,

My problem is not so much with the audited reports. (By the way GotSix, if you could point us to the aspects that you're questioning it would be appreciated)

My problem is more with how they allocate everything on the financial indicator spreadsheet.

I've been trying to match up numbers on the spreadsheet with their annual report.

This is where I started from:

Table No. 5 on the annual report lists in their Liabilities - Reserve Money with a value of 53,809,831 (Millions Dinar) - figure for December.

Now, on the financials spreadsheet, they list 53,810 (billions of dinar) as their Monetary base. Okay, that makes sense.

But the Monetary base figure is a total of the Foreign assets + the Domestic assets (which has a negative value).

First question - How can foreign assets be a liability to the CBI?

Moving down the spreadsheet, the value of 53,810 (billions of dinar) is used again as a total of the currency outside banks + the bank reserves.

The figure for currency outside banks is derived from a report that I guess the CBI receives from the Research & Statistics Dept. But I can't find a source for that.

I can't quite marry up the reserves figures on the spreadsheet with the numbers on the Annual report, but the numbers are pretty close.

Maybe I'm getting myself confused with numbers, but it just seems strangely coincidental that those numbers are exactly the same.

I'd be interested to get your thoughts.

Its been a while since I've looked, and recall having similar problems of knowing just what the include under what term. I would call foreign reserves an asset and their supply of dinars a liability against that asset. I'll be happy to review them again, can you post the links you are using so we're sure to be looking at the same things?

[tigerstripes]

Its been a while since I've looked, and recall having similar problems of knowing just what the include under what term. I would call foreign reserves an asset and their supply of dinars a liability against that asset. I'll be happy to review them again, can you post the links you are using so we're sure to be looking at the same things?

http://www.cbi.iq/do...20financial.xls

That one is the Financial Indicators spreadsheet.

http://www.cbi.iq/do...cumentation.pdf

That is the documentation that they provide detailing the info on the spreadsheet.

http://www.cbi.iq/do...nnual_2010f.pdf

And that one is the Annual Bulletin.

I'm looking forward to seeing if you can come up with any better answers than I can.

Again, the one figure that I can match up between the annual report and the Spreadsheet is the (a + Monetary Base on the spreadsheet. It matches perfectly with Table 5 (Page 24) on the annual report, but there it's listed as a liability.

Lol, I keep editing this post. How come a lower cas b followed by a close bracket brings up a smily face with sunglasses?

[George Hayduke]

I want the same thing you do my friend. The fact is, there is no proof that the dinars from the auctions are not put right back into the economy. People seem to misconceive that the dinars are pulled in from auctions and just sitting at the bank when , indeed, I always understood the auctions as redistributing the currency back into the economy. If a trillion were sucked back in to the CBI, the value is still there...it doesn't just disappear.

I'd rather have a trillion recirculated than an addtional trillion printed up.

[tigerstripes]

If it helps, I discovered The Financial Indicators Spreadsheet is actually a Balance Sheet.

-

Thanks. You got any ideas on where they get their info from to produce the balance sheet.

I assume that the figures are coming from the commercial banks, as well as the internal figures of the CBI.

[engineer1138]

I want the same thing you do my friend. The fact is, there is no proof that the dinars from the auctions are not put right back into the economy. People seem to misconceive that the dinars are pulled in from auctions and just sitting at the bank when , indeed, I always understood the auctions as redistributing the currency back into the economy. If a trillion were sucked back in to the CBI, the value is still there...it doesn't just disappear.

Just to be clear I'd guess the biggest source is the GOI spending money, they buy in dinars. It isn't a tax base that is funding that but oil revenue. That is in dollars, which the GOI exchanges for dinars. So dollar reserves go up, and dinars in circulation (once its spent) go up. The source pulling them in is the auctions. So it isn't "going right back out" as in the CBI dispensing that batch of dinars, but just overall GOI spending throughout the year. And since the spending is the fixed part and the auction is the variable part they use for control, the auction is really the pull back in that they sync up to how much has gone out and what inflation is and economic growth etc.

[bopll]

Keep up the good posts Legolas, I haven't seen you around much lately but to be honest I don't check in as regularly as in the past. You are one of the more grounded members of DV and your opinions are highly regarded by me.

[GotSix]

Just to be clear I'd guess the biggest source is the GOI spending money, they buy in dinars. It isn't a tax base that is funding that but oil revenue. That is in dollars, which the GOI exchanges for dinars. So dollar reserves go up, and dinars in circulation (once its spent) go up. The source pulling them in is the auctions. So it isn't "going right back out" as in the CBI dispensing that batch of dinars, but just overall GOI spending throughout the year. And since the spending is the fixed part and the auction is the variable part they use for control, the auction is really the pull back in that they sync up to how much has gone out and what inflation is and economic growth etc.

do you represent the CBI...cause what I've just read was so my question to you is simple....where does the excess go ...they were so proud that they were able to bring in sooooo much to control the rate.....so as you mention "the spending is fixed" so where does the "variable part go"??????????

[umbertino]

Excellent read and Kudos to Adam for letting this stay. (And Bumper since he did most the work getting it back, I think).

Thats why when I do visit a site, it more than likely is this one.

Its hard for a site owner to allow everything, he still must make a profit. To allow for this type of read to remain, proves that this site is not just for making money, but also making sure we all stay informed and have access to all opinions, perspectives, even if it is not what most want to hear.

So thanks Legolas, Merry1, and of course Adam.

Agreed.. I for one have always appreciated Legolas no-nonsense no BS approach.

[Markinsa]

Thanks. You got any ideas on where they get their info from to produce the balance sheet.

I assume that the figures are coming from the commercial banks, as well as the internal figures of the CBI.

Three places: CBI, Ministry of Finance (MOF) and Commercial Banks - Try hiding all of the rows except the ones below and you'll see the relationships between the "Sources" and the "Uses".

KEY FINANCIAL INDICATORS FOR Dec. 28, 2011

Row

3 1-Exchange rate (ID/USD) in auction (daily average)

4 2-Inflation Consumer Price Index (1993 = 100)

5 Core Inflation Consumer Price Index Exclude ( F&L and T&C )( 1993=100 )

6 New Inflation Consumer Price Index (2007 = 100)

7 New Core Inflation Consumer Price Index ( 2007=100 ) 7

8 3-Interest Rates:

9 a-MOF

22 b-CBI (end of period, annual % )

39 c- Commercial Banks (end of period, annual % )

47 4-Monetary Base (End of period, in billions of Iraqi dinars)

48 Sources (a+b )

49 a - Net Foreign Assets of CBI

56 b - Net Domestic Assets of CBI

78 Uses (a+b )

79 a - Currency outside banks

80 b - Bank reserves

84 5-Money Supply (End of period , in billions of Iraqi dinars)

85

86 M1

87 M2

88 Of which: Deposits component of M2

89

90 Foreign currency deposits

91

92 6-Reserve Requirement (reserve maintenance period, in billions of Iraqi dinars)

93 a - Required Reserves 3

94 b - Excess Current Account

-

[umbertino]

I agree, 4given2. This is probably the ONLY Dinar site where all sides are fairly presented. That's why I was a bit surprised when Merry1's post disappeared. Adam does in fact deserve a lot of credit, as does Bumper64 for his level-headed approach and the time he devotes to the site. I have to admit that I don't pay that much attention anymore, but Bumper and K98nights seem to be the standouts.

Yes my Friend... That's why I like this Forum so much... It was great they recouped post and put it back on.

There's Good People in here

Once again thanks for the great interview....It will greatly contribute to counter-balance some "far out" stuff.