Monday, June 16, 2008 11:31:46 AM
M2 is an 'Inhouse Value Sheet' to determine rate of Inflation if any for Iraq. Any reference to currency, is the 'Inhouse Value' for the currency as ascribed by the M2 formula...as Line 3 decreases line 65 increases...IOWs...the value of the Iraqi DInar increases/valuates.
If one wants to review all M2s from 2005 thru 2008 one will see the inflation rate fall from 70+% down to the now 17 year low of 12-17% rate...............The Dinar value has increased ever since 2003................
If Iraq was pumping out more physical currency (M0) as Kuwait, one would see the Dinar devaluate and inflation increasing within the criteria. Kuwait is in a world of hurt after depegging from the USD...
If one wants to review all M2s from 2005 thru 2008 one will see the inflation rate fall from 70+% down to the now 17 year low of 12-17% rate...............The Dinar value has increased ever since 2003................
If Iraq was pumping out more physical currency (M0) as Kuwait, one would see the Dinar devaluate and inflation increasing within the criteria. Kuwait is in a world of hurt after depegging from the USD...
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