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WalletDoctor calls dinar a scam.
http://www.vidilife.com/video_play_1181406_URGENT_The_Iraqi_Dinar_Is_A_Forex_Fraud_Scam_.htm
That statement makes no sense... none.
"Exactly__M2 shows the value of the Dinar Rising"
M2 is a measurement of the amount of currency units in the system, currency in circulation plus deposits in banks. That's all it is.
This also has been proven to be a lie on every point.
It is proven in this link. It is a research paper written by an economics professor from The Univerity of North Carolina.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28832254
You are making things up. The article says nothing of the such.
The article states that Iraq deposited $5 billion in the fed. It says nothing at all about Iraq selling dinars to the fed.
If someone goes to the bank and makes a deposit, that doesn't automatically mean the bank sold them something. You can not make that leap
M2 does not show circulated dinars shrinking. That also is a blatant lie that is proven by the CBI financials posted on their web site for the world to see.
The dinar has zero chance of a large revalue
The dinar is a scam!!! Be aware!
You... asking me for a link... now that really is funny.
Iraq has a 50 Trillion dinar budget for 2008.
In order to keep m2 and currency in circulation numbers down and maintain dinar value where it is Iraq is FORCED to buy back dinar at auction to fund that budget.
http://www.iraqdirectory.com/DisplayNews.aspx?id=3048
"Mr. Ali Al-Yasiri, one of the dealers with the Bank, explained that sales offers will rise with time because of the entry of the Ministry of Finance to the auction to sell the dollar for the dinar, which is needed to fill the components of the budget".
So if Iraq is buying back 1 to 2 trillin dinar a month, lets say 1.5 triilion, that's only 18 trillion for the year. The budget is 50 trillion... that leaves them 32 trillion short.
I'm sure most of that dinar shortfall is covered with dollars. Practically anything in Iraqs budget that deals with them buying goods or services from a foriegn company or country would be handled in dollars.
But as the CBI financials show... M2 along with currency in circulation is growing, so the 1 to 2 trillion bought back at auction along with a little more is put right back into the system.
"M2 is a 'Value' spreadsheet" Huh??? What does that mean??
You are claiming that line 65 is the Value??? Even though it is labled as Currency outside banks, and they even explain that Currency outside of banks is Currency in Circulation.
It is also part of line 33, 4 Monetary Base (End of period, in billions of Iraqi dinar)
M2 absolutly does contain circulating dinars.
http://www.cbiraq.org/Key%20Financial%20Indicators%20Documentation.pdf
5. Money Supply (M2)
Monthly: Reported by Research & Statistics Department (as at the end of the month,
in billions of Dinar) from the monthly regulatory reports of all commercial banks.
Currency in Circulation outside of banks (see 4.a above)
Deposits in Commercial Banks, excluding central government deposits, interbank
accounts, and accounts of a current nature.
It is amzingly simple to check and see...
Add line 65, Currency outside of banks to line 72, deposites component of m2, and it always equals line 71, M2
LOL... come over to the dinar board and say hi to him. Rasica and Bob/Matt on BKMP huh... I guess that explains why Bob/Matt has his head so far up Rasicas @ss on the dinar board.
Absolutely Heavy... I'm all in baby!!
WOOOOOOT WOOOOOT!!
7.5 Trillion... where did it come from?
The article that talks about the 5 billion dollar deposit in the N.Y. Fed, the article that clearly states "He said the dollars had been accumulated by the Iraqis since the creation of the new Iraqi dinar and not sold to them by Washington."
That took place in 2005. Look at the spread sheet again and look at the figures for the end of 2005. They had 9.1 trillion in circulation, 5.5 trillion in deposites for a total of 14.6 trilliin M2.
Where in those figures does this supposed 7.5 trillion dinars that the Fed supposedly bought show up. There is no 7.5 trllion jump from the previous year. Thier isn't even 7.5 total in deposites by that time. Circulation number of 9.1... we know that the original exchange when the new currency came out was for 4.5 trillion. That means less than 5 trillion more dinars had been added to circulation. So neither of those mumbers could have contained the 7.5 trillion we are told that is with the fed. So where are those 7.5 trillion documented. Are they not on the books. That would mean that todays M2 number of 26 trillion is really 7.5 trillion short. That would mean m2 is really 33.5 trillion. That would not be a good thing.
That's all not true obviously... becuase the US does not hold dinars.
Dinar in Circulation...
Line 65, A, Currency outside banks... not to hard to see that the number is not being reduced.
The same Iraq Central Bank that supplies that chart also supplies this information about line 65
http://www.cbiraq.org/Key%20Financial%20Indicators%20Documentation.pdf
Currency outside banks, i.e., the currency component of the money supply as
shown in the Analytical Balance sheet (Item 8) which is derived from the following sources
(currency put into circulation reported by Issuing Dept. less vault cash(item 8.1 of Analytical
Balance Sheet) reported by Research & Statistics Dept.). From December 2003, currency in
circulation is the new currency issued by the CBI less redemption of old and damaged new
currency notes. Prior to October 2003, currency in circulation is all Iraqi Dinar (other than the 25
swiss Dinar notes) issued by the CBI (both Swiss and Saddam Dinar at face value) less
redemption of old and damaged notes and issued currency in vaults of CBI.
So it clearly states that this number is the amount of dinars put into circulation minus "redemed" notes. Redemed notes would be the ones they are buying back at auction, so they are taken into account in the figure.
First of all... I still maintain the US does not posses any dinars. There are no references to it in any link/article/story. The Fed Reserve is a non profit (kinda), they would not be speculating on a risky foreign currency... it's absurd.
But lets go with this thought of the US holding 7 trillion dinar. If that were the case... how do you see this playing out?
Iraq revalues to 1:1 and then what?
The US gets 7 trillion dollars from Iraq? Iraq only has about $40 billion... where would they get other 6.960 Trillion from? So that sure as heck ain't gonna happen.
Maybe we get oil with the dinars. At 2 million barrels a day and $150 a barrel Iraq would have to give us every barrel for the next 31 years. Even if Iraq gets to 10 million barrels a day, which is wildly optimistic and probably 10 to 20 years away if ever, that would still be every drop of oil for about 13 years. A war torn impoverished nation giving away their only real source of revenue for the next 30 years... I'm guessing that ain't gonna happen either.
We also have this little diddy looming. Very shortly... I'm sad to say... we are looking at a Democrat president with a democratic congress that all want to get out of Iraq. More than half of Iraq's representatives recently signed a petition stating they want us out. Iraq is still one of the most corrupt countries in the world and their leaders know no other way of being. If those thing happen... I would say Iraq has about a 50-50 chance of turning right back into a hell hole.
Maybe a PM to RJ. Can he as mod remove Rasica as an assistant?
You know what's interesting. The other night I did a search on that mods name just to see what turned up. Well... there was a guy on stockhideout or hotstockmarket, I don't remember which one... but he was using the same name there. He was a massive pumper on their BKMP board a year or two ago. Post after post after post of pump pump pump. Looked like his posting there stopped about the time he came over to the dinar board. Gotta be the same guy.
The admin is threatening to make that board a pay board.
GDP vs GNP
GDP is Gross DOMESTIC Product. It's basically all the services and products sold by this country domestically... domestically meaning in this country.
GNP is Gross NATIONAL Product. It's the services and products sold by a country not only domestically but world wide.
Example... for the US, Ford GM and many other companies do a lot of business overseas. That money is included n GNP... but not GDP.
In the case of Iraq. I'm not aware of any big Iraqi companies doing business outside of Iraq. Iraqs main revenue is from oil sales. Oil sales are part of Iraq GDP.
In other words there is virtually no difference in Iraq's GDP and GNP
Strong... that board is becoming a joke.
LOL... I'm mopping the floor with his @ss and he doesn't like it.
Just for the boards info. GDP vs GNP
GDP is Gross DOMESTIC Product. It's basically all the services and products sold by this country domestically... domestically meaning in this country.
GNP is Gross NATIONAL Product. It's the services and products sold by a country not only domestically but world wide.
Example... for the US, Ford GM and many other companies do a lot of business overseas. That money is included n GNP... but not GDP.
In the case of Iraq. I'm not aware of any big Iraqi companies doing business outside of Iraq. Iraqs main revenue is from oil sales. Oil sales are part of Iraq GDP.
In other words there is virtually no difference in Iraq's GDP and GNP
I know the diff between GDP and GNP... you are the one claiming that GDP means nothing and that they might be using GNP. Can't you elaborate on that and explain the difference and how in applies to Iraq??
A little contradiction... again.
You say this...
"One must remember you are posting dated material and it was to take place within 3 months if they gave it any credence."
You are claiming that he said no lop. You have also amusingly claimed it was a misprint. Now you are saying they were to take it up in 3 months. Take what up???? You have called it a misprint. You have said the article said no lop, but now you are admitting you were aware of the 3 month thing.... now you seem to just throwing it out there that.... well... yeah they were going to consider it, but that was 7 or 8 months ago and it said 3 months, so we are past that.
You can't have it both ways. Sounds like to me you understood exactly what was being said but that you intentionally misled the board into believing it said something different.
Maybe you can explain it for us... because I would love hear how you define the difference between GDP and GNP and more importantly tell us how that applies to Iraq. What is it about Iraq's GNP that makes it more important than their GDP?
My point was you posted an entire list of comments/facts about the GDP.... practically every sentence in the post was about GDP. Then your excuse for removing a part of it was... GDP doesn't mean anything. If that's the case, then why did you post the list? It's meaningless according to you.
So which is it???
You claim this as your reason for editing the post...
"it is NOT fact that the Dinar cannot be 1:1: at the then current criteria...as the CBI Dinar valuations are not based upon the GDP or GNP"
But yet... practically the entire post is about the GDP and it's effect exchange rate.
Fact, when Saddam came to power in 1980 the Iraq GDP was ~130 billion.
Fact, by 1990 Iraq GDP had dropped to ~57 billion.
Fact, with the invasion of Iraq in 2003 its GDP dropped to less than 38 billion.
Fact, the Iraq GDP experienced more than a 50% growth rate in 2005.
Fact, with the increase in violence in 2006 and early 2007 the GDP growth rate experienced a negative.
Fact, since the surge the the Iraq GDP has increased to ~ 87 billion GDP purchasing power.
Fact, in late 2006 and early 2007 we experienced a gradual appreciation in the dinar because of GDP growth in 2005.
Fact, that growth rate stagnated in 2007 because of the increase violence and a slowing of GDP growth.
Fact, the Iraq dinar has resumed appreciation because of a increase in GDP growth.
Fact, the new dinar was based on a economy of with a GDP of ~ 38 billion and its appreciation is due to the fact that that economy now has a GDP purchasing power of ~ 87 billion.
How does this occur?
Fact, the GDP of Iraq is ~ 95% exported oil.
Fact, as oil exports increase so does the GDP.
Fact, as a nation experiences GDP growth they also experience inflation. While there are many methods of combating inflation it is a fact that Iraq has chosen the method of decreasing the amount of dinar in circulation, making them more scarce, and increasing their value. As dinar are decreased they increase in value to compare with the GDP.
Fact, the value of the dinar will continue to appreciate, (lop or no lop) as long as the the GDP of Iraq continues to increase and Iraq continues to fight inflation by the present method.
Fact, a increase of 1/2 million barrels of oil would increase Iraq's GDP to ~ 150 billion and would challenge Venezuela's GDP of 180 billion. Iran's GDP is 620 billion.
Fact, a increase of 2 million barrels of oil/day would increase Iraq's GDP to ~ a trillion.
Hmmmm... seems like the fact is that all but two lines of that post refered to the GDP... why didn't you delete all of them?
Propaganda from a dealer site... it makes no sense.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28570313
First Afghanistan... to claim they only lopped because they had 4 currencies floating around makes ZERO ZERO, less than ZERO sense. If multiple currencies was the only concern, they would have issued a new currency at a 1:1 exchange and be done with it. Simple as that.
That's not what they did.
The official rate for the Afghani has been 50:1 or 2 cents since 1981. It was because of inflation, increasing money supply that the Afghani fell to 2400 to 1 by 1994 on the black market. The official rate remained 50:1 through that whole time. They wanted to return to the 50:1 official rate, so they did a 3 zero lop to do it.
It's crazy to use Afghanistan as reason a lop will not happen. It is a perfect example of how and why Iraq will do the same thing if they want to get back to their old official rate. Iraq has gone through the same exact thing. Iraq's "official" rate was .3 :1, but the street rate had fallen to 3000. It's the EXACT SAME scenario practically.
The Russia argument is just as flawed. Yes Russia had high inflation, so did Iraq. Russia got their inflation under control before they lopped. Iraq has now gotten their inflation under control. Very similar.
The overlapping currency issue no longer exist. Iraq removed the 25 dinar coin, so there are no overlapping currencies if they lop 3 zeros
Trinityz unedited post.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=24952381
Here's some trivia from a positive minded person:
Fact, when Saddam came to power in 1980 the Iraq GDP was ~130 billion.
Fact, by 1990 Iraq GDP had dropped to ~57 billion.
Fact, with the invasion of Iraq in 2003 its GDP dropped to less than 38 billion.
Fact, the Iraq GDP experienced more than a 50% growth rate in 2005.
Fact, with the increase in violence in 2006 and early 2007 the GDP growth rate experienced a negative.
Fact, since the surge the the Iraq GDP has increased to ~ 87 billion GDP purchasing power.
Fact, in late 2006 and early 2007 we experienced a gradual appreciation in the dinar because of GDP growth in 2005.
Fact, that growth rate stagnated in 2007 because of the increase violence and a slowing of GDP growth.
Fact, the Iraq dinar has resumed appreciation because of a increase in GDP growth.
Fact, the new dinar was based on a economy of with a GDP of ~ 38 billion and its appreciation is due to the fact that that economy now has a GDP purchasing power of ~ 87 billion.
How does this occur?
Fact, the GDP of Iraq is ~ 95% exported oil.
Fact, as oil exports increase so does the GDP.
Fact, as a nation experiences GDP growth they also experience inflation. While there are many methods of combating inflation it is a fact that Iraq has chosen the method of decreasing the amount of dinar in circulation, making them more scarce, and increasing their value. As dinar are decreased they increase in value to compare with the GDP.
Fact, if you have purchased dinar with a foreign currency a lop will neither increase or decrease the value of your purchase but will only make its use more convenient or inconvenient.
Fact, the value of the dinar will continue to appreciate, (lop or no lop) as long as the the GDP of Iraq continues to increase and Iraq continues to fight inflation by the present method.
Fact, a increase of 1/2 million barrels of oil would increase Iraq's GDP to ~ 150 billion and would challenge Venezuela's GDP of 180 billion. Iran's GDP is 620 billion.
Fact, a increase of 2 million barrels of oil/day would increase Iraq's GDP to ~ a trillion.
Fact, if one believes the Iraq oil imports will decrease or remain stagnent, they should sell their dinar.
Fact, if one believes Iraq oil exports will increase they should keep their dinar.
Fact, a instant RV of 1-1 with the US dollar is impossible with the current Iraq GDP Unless they can instantly decrease the amount of dinar in circulation by ~ 90%. The present Iraq GDP would not support a 1-1 RV and neither would it be sanctioned by other countries and the IMF. Currency has to have support and that amount of currency could not be supported by Iraq.
Fact, the Iraq dinar has RV'ed from 1475 to 1220 in a little over a year.
Fact, the Iraq dinar RV is ongoing and I hope it continues RV!!!!!
My opinion is just that, my opinion.
So make no investment decisions based on my opinion.
You deleted part of her post... you cut out this part at the bottom.
Fact, a instant RV of 1-1 with the US dollar is impossible with the current Iraq GDP Unless they can instantly decrease the amount of dinar in circulation by ~ 90%. The present Iraq GDP would not support a 1-1 RV and neither would it be sanctioned by other countries and the IMF. Currency has to have support and that amount of currency could not be supported by Iraq.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=24952381
Did you see this part of the article... very plainly stated...
"He said the dollars had been accumulated by the Iraqis since the creation of the new Iraqi dinar and not sold to them by Washington."
Where do you see that?
"CBI to change Dinar back to REAL Exchange rate........"
From this sentence?
"by changing the value of the real exchange rate of dinar and causing a deficit in the general budget"
That is saying that they have changed the real exchange rate, it's what they have done over the last couple years, that has caused a deficit in the budget. That is a very negative article for the dinar.
I talked about it here.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29371509
Very interesting that you cut of the very next sentence.
"the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea."
Which makes it very clear that at the time the CBI was reluctant to take it up, but now they will discuss it and there is a positive atmosphere about it.
Exchange rate and reserves.
http://www.investopedia.com/articles/03/020603.asp
If, for example, it is determined that the value of a single unit of local currency is equal to USD 3.00, (LOL...funny they would use that amount as an example)the central bank will have to ensure that it can supply the market with those dollars. In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank which it can use to release (or absorb) extra funds into (or out of) the market. This ensures an appropriate money supply, appropriate fluctuations in the market (inflation/deflation), and ultimately, the exchange rate. The central bank can also adjust the official exchange rate when necessary.
Fixed regimes, however, can often lead to severe financial crises since a peg is difficult to maintain in the long run. This was seen in the Mexican (1995), Asian and Russian (1997) financial crises: an attempt to maintain a high value of the local currency to the peg resulted in the currencies eventually becoming overvalued. This meant that the governments could no longer meet the demands to convert the local currency into the foreign currency at the pegged rate. With speculation and panic, investors scrambled to get out their money and convert it into foreign currency before the local currency was devalued against the peg; foreign reserve supplies eventually became depleted. In Mexico's case, the government was forced to devalue the peso by 30%. In Thailand, the government eventually had to allow the currency to float, and by the end of 1997, the bhat had lost its value by 50% as the market's demand and supply readjusted the value of the local currency.
http://www.radioproject.org/transcript/1999/9920.html
The market is so huge that if speculators attack a particular currency the central bank of that particular country can't defend against the attack. They defend by throwing money into the market and buying up their own currency. The central bank reserves of small countries might only have a billion or two billion in their central bank reserves. If the size of the attack of the speculators is larger than that, the currency of that country call fall, can be devalued, and then what will happen is speculators will pull out rapidly and so will investors, so will factories. And then we'll see what we saw in Asia last year and in Brazil in January. So, for instance, Brazil threw several billion and the figure is not exactly clear from the newspaper articles I've read certainly, but it may have been upwards of twenty or thirty billion dollars that were thrown in to defending their currency before they decided to stop defending it. Now that's money that they may have had in their reserves for that purpose, but it is essentially money that is tax payer money that cannot be spent on anything else. So what often happens is it creates a condition of austerity in a country. There is less money for social programs. There's less money for education etc.
I'll take that as a no.... and it's because there is nothing to back up that claim becuase it's not true.
There has never been anything even remotly suggesting it.
You say we and our companies have invested. You do realize that buying up a countries currency for speculation is not the same as investing in that country... it's practically the opposite.
Do you have a link or article or anything that supports the claim of the US having dinar?
Dinar Trading - Odd North American Delusion?
Saw this site linked in the past... interesting articles.
http://lounsbury.aqoul.com/archives/2006/04/dinar_trading_o.html
Great news. Iraq no longer most corrupt.
They've moved up to 3rd most corrupt in the world.
Better only than Somalia and Myanmar
http://www.gulfnews.com/world/General/10185179.html
Inflation... Corruption a problem.
http://www.adnkronos.com/AKI/English/Business/?id=1.0.2196934967
"Iraq's Central Bank governor Sinan al-Shibibi said the bank would absorb the inflation rate by appreciating the Iraqi dinar against the US dollar and maintaining high interest rates which currently stand at 17 percent."
Strong.... good to see you back "on top" over at the dinar board.
As you can see... there is no link that will show circulation numbers are dropping because it is not happening. The CBI reported numbers confirm that.
"He said the dollars had been accumulated by the Iraqis since the creation of the new Iraqi dinar and not sold to them by Washington."
http://www.iraqdevelopmentprogram.org/idp/news/new680.htm
It CLEARLY states that the Dollars were not sold to Iraq by the US Government. Which means the same as the US Gov recieved no Dinars for the Dollars.
It also states that the $$ had accumulated since the creation of the new dinar... who was buying these dinars... not the US gov according to the article... who then... this is who...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29871892
The very next line of that article..."the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea."
Thanks
Rick... take a look at these articles...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29871792
This is the way they refer to a lop. "Deleting zeros", "Removing zeros", "Lifting zeros". They all mean the same thing. When it came up before it was interpreted as a lop in a number of articles. Sadly... there was never one article that interpreted it as a huge revalue.
A large revalue has never happened before. It would truly be a historic event, it would have drawn a lot of attention obviously. A lop is not a big deal. It has happened many many times in the past and it will happen many times in the future. As an event... a lop doesn't really draw a lot of news coverage. 70 times it has happened in the last 30 or so years. That's twice a year. How many did you hear about in the news?