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Can you read at all. How can you possibly say "Your use of the word "scam" IN ANY REFERENCE is your words only"?????????????
I posted the link... It's right there on their page.
Again for the reading challenged.
http://www.xe.com/iqd.htm
From that page... understand... not my words... theirs... notice the quote marks.
"These links are selected to present an alternative point of view to the "all is going well in Iraq" assertion found in many IQD scams"
As Strong's post shows, since then they have said they did not call it a scam. But that does not change the fact that it was, and still is, on their website.
We can agree that the XE posting is crap. Probably for different reasons.
I don't care for it because they just kinda pan the dinar because it's risky... Iraq is unstable.
They did ZERO technical analysis of the dinar for their article and seem to have done none since then.
I think we can probably agree that I... a currency simpleton, could have wrote a much more compelling pan of the dinar.
Somehow I don't picture Bob out swinging golf clubs.
Heavy...I see you riding your skateboard when your not posting. :)
When they wrote that the rate was 1460. As of today it is 1207. I would say it's a bit ridiculous to claim that's a 300% increase. That's less than 30% after 4 full years.
The SCAM reference is still on XE.com. Your gripe is with them.
I don't think they are saying that the dinar itself is a scam. What they are saying is that the web sights pushing dinar and the notion that some massive revaluation is in the offing are the scam.
4 years later it appears they were right. Some just refuse to see it.
Russia to be bombed soon?
http://www.kommersant.com/p-11668/Crude_oil_ruble_/
We will invade Venezuela then right?
http://uk.news.yahoo.com/afp/20080315/tbs-venezuela-commodities-oil-currency-e-5268574.html
"Is "investing" in the Iraq Dinar a sure way to profit? We don't think so. In our opinion, buying the Iraq Dinar is a high risk investment with a poor outlook"
"Additional information on this issue can be found through the following media links. These links are selected to present an alternative point of view to the "all is going well in Iraq" assertion found in many IQD scams.
http://www.xe.com/iqd.htm
They wrote this back in 04.
You are aware that XE.com considers the Dinar a scam.
I think it's just a continuation of this.
This is from Feb 05. Three years ago. I'm guessing they have just continued to deposit their currency reserves over here and it's grown to $27 billion. http://www.infowars.com/articles/iraq/iraq_deposits_5_billion_into_us_fed_reserve.htm
That's why the drop in the exchange rate has slowed to a crawl.
Bob... did you bump your head lately? Maybe all the pain from the operation left you with amnesia from the last month? You've done a 180 from a couple weeks ago. Have you gone back and read your own posts?
I'd like to believe that Bob. But if that's true then why does he keep saying that Iraq is selling their assets for less than a penny on the dollar. That statement says that he doesn't understand it.
Is it your contention that they are selling this oil for less than a penny on the dollar somehow due to their exchange rate?
Oil is sold for about $100 a barrel. Are you thinking Iraq is only getting 100 dinars a barrel?
Then give one simple example genius.
You know... I try not to belittle people. But if you truly believe Iraq is giving anything away for less than pennies on the dollar then you are a complete moron unworthy of even being in a discussion with me.
Anything in Iraq that is worth a dollar is sold for a dollar or 1209 dinars... same thing. Exchange rate basics which you seem unable to grasp. It's an amazingly simple concept.
Something worth 1000 dollars is sold for 1,209,000 dinars... it's the same amount.
Show me one example of something that sells for one dollar that can be bought for less than a penny, or one dinar.
Thanks for your concern... though I'm not sure what my personal welfare has to do with the dinar.
I think you need to explain comments like this.
"2. A REVAL
Because otherwise ALL IRAQ ASSESTS will be "GIVEN" away for LESS than pennies on the Dollar
(All Regional hatreds should halt and bring Iraqis together when Foreigners are looming to STEAL AWAY the ASSETS for chump change)
which is what will happen without a HCL and REVAL to protect the IRAQ citizens."
That is total nonsense. Give an example... what assets are being stolen away for less than pennies on the dollar? Here in my 3rd world cellar, even us sorrowful souls can spot pure unintelligible garbage.
I'm sure they were thinking about dinar when they changed that rule... lol.
Just a thought... I know it's a wild one... much wilder than the forever impending 120,000 percent increase in the dinar. That thought... the dollar is TANKING... maybe... just maybe, they had the wild crazy idea of changing the rule to discourage people from selling their dollars and buying foreign currencies. Nah... that's crazy... it's obviously the dinar increasing 120,000 percent they are thinking about. What a hoot!
That would be one heck of an exception.
Read this article about Dubia's expected reval.
http://www.ameinfo.com/147107.html
International banks in Dubai have slashed interest rates on dirham deposits to around one per cent, a sure sign that revaluation is not far off and that the banks do not want to be left holding dirham deposits.
Iraq is doing the exact opposite. They are paying huge interest rates and doing whatever they can to attract more deposits. In other words... in a sure sign that a revaluation is not in the near time plans for Iraq.
I think you are getting your .30's confused.
You are claiming an initial revalue of 30 cents per dinar right?
The Rafidian Bank thing is .3 dinars to a dollar... or 3 dollars per dinar. Quite a difference, but equally as preposterous.
I think it's amazing. No country has ever revalued it's currency more than 10 or 20 percent from what I've seen. Now we are claiming that a country will revalue about 36,500 percent and then follow it up with a 1,000 percent revalue soon after.
You need Microsoft Office Exel to open the file.
If you don't have access to Microsoft Exel and don't want to buy it... it is expensive. You could probably download a trial version of Office, but it will expire after 60 days.
http://us1.trymicrosoftoffice.com/product.aspx?re_ms=oo&family=officepro&culture=en-US
Or... for free... Sun offers Open Office. It will open most Microsoft Office documents. I use this. Not nearly as nice as Microsoft, but it's FREE.
http://www.openoffice.org/
About a year ago there was a reduction in the M2 number. It may have been from 22 to 17, not positive about the numbers... but the CBI also put out a statement at the time that it was due to an error in the way banks were reporting their numbers. So it had nothing to do with them buying back dinars. The thing is, it was over a year ago and the number has since grown to 27 trillion.
Where are you getting the 17 trillion number and where are you getting that it's dropping? The CBI has been reporting the numbers since 2003 and it's been increasing ever since and as of Dec 2007 the number is 27 trillion.
Any "stockpiled or extra dinar" they may have that could be put in the furnace is not included in the 27 trillion figure.
Of course there are examples of countries that lopped that had multiple currencies and ONE of the benefits of a lop would be the unification of the currency. But to claim that multiple currencies is the main reason ever to lop is just flat out misinformation.
27 TRILLION!!
They have been buying dinar not just for months, they have been buying it for years... and the M2 number continues to grow.
I just checked the CBI financials, they have put up the DEC numbers and they are showing a huge increase in M2. It is now up to 27 trillion.
http://www.cbiraq.org/key%20financial.xls
Line 70
That is a flat out blatant lie and you should be ashamed to push such crap.
"Numerous and different currencies is the main reason ever to LOP zeros in order to reign in and get rid of multiple currencies."
LOL... you did notice that was over 3 years ago.
I'm sure it caused quite a stir back then.
Iraq wants to revalue at 30 cents per dinar with the idea of buying back most of the currency?
At 30 cents they can buy back about 3 dinars with every dollar they have.
Iraq has about 30 billion in currency reserves.
So they could buy back 100 billion dinars at 30 cents... leaving them with zero currency reserves.
They have a money supply of about 23 Trillion.
After the buy back, they would have zero reserves and 22.9 Trillion in money supply.
LOLOLOLOL... That is truly hilarious....
on second thought... it's very sad.
The dollars and other foreign currencies that they may be hording are assets. Verey good thing for them that they are increasing.
The local currency... the dinar... it's a liabilty on a finacial report. So a big increase in exchange rate would be a big increase in liability.
For a country currency is a LIABILITY... not an ASSET... so that makes no sense.
For a country currency is a LIABILITY... not an ASSET... so that makes no sense.
For a country currency is a LIABILITY... not an ASSET... so that makes no sense.
Why???
If you loaned someone 3 million dollars twenty years ago and they never paid you back... now they say they will pay off their debt to you and they hand you $800 dollars. How would you feel?
Numbers... at .3 to 1, it took 3 million dollars to loan someone 1 million dinars.
At todays rate it only takes about 800 dollars to repay that 1 million dinar.
I'm just posting facts. How can you label facts as negative??
Iraq's currency was 3 times more valuable back at the beginning of the Reagan presidency. Very early eighties.
Check out this from the Central Bank of Iraq.
http://www.cbiraq.org/Binder4.pdf
page 17, table 10
As of 1991... when Papa Bush was president. The exchange rate was was already down to 10:1. That's 10 cents per dinar.
Now look at page page 5, table 2.
In 1991 Iraq had a money supply of 24.6 billion. Back in the early eighties I'm guessing it was about 20 billion.
They now have a money supply of about 1000 times more... 22 Trillion
That is a perfect explanation for why their exchange rate is now about 1000 times worse.
Simple math.
Iraq has a money supply 3 times higher than the U.S..
To believe that Iraq will revalue to 1:1 you would have to believe that Iraq's economy is 3 times bigger than the U.S. economy.
Currently Iraq's GDP (GDP is basically size of economy) is less than 100 billion. And most of that 100 billion is in the sales of oil which is dollar denominated. The size of Iraq Dinar economy is tiny.
The U.S. has a 13 trillion dollar economy.
Since Iraq has 3 times more currency they would basically need an economy 3 times bigger... or 36 trillion dollars. It is a hard cold fact... that is a preposterous thought.
Thanks to Stockings post a week or so ago with this info about "dropping zeros, gaining credibility"
http://convention2.allacademic.com/getfile.php?file=apsa05_proceeding/2005-09-05/40104/apsa05_proceeding_40104.pdf
Everything in this paper is about exactly what has happened to Iraq. It talks about 2 options. One is to lop... some countries do lop. The other option is that some countries are perfectly fine with leaving their currency at a very high rate... some countries do that. Those are the two options. There is no 3rd option of massive revalue. It does not exist... NO countries has ever or will ever do it. It is so far out of the possible that it is not even discussed.
It is safe to say that it is a know fact that the only way the dinar will see a 1:1 rate,or anywhere close to that, is if they lop... or if they can increase the GDP to 36 trillion dollars. One of those options has a snowballs chance in hell. The other option has happened 70 times in the last 30 or so years.
"The uncontrolled creation of money causes a quick decrease in the value of currency and very rapid hyperinflation (in annual price increases of hundreds or thousands of percent), which can destroy an economy."
Who's been saying that for a while now. Thanks for posting.
That describes exactly what happened to Iraq under Saddam. Coupled with the fact that he stole/spent all of their foreign currency reserves... it destroyed the value of the currency.
To restore the value of the currency those two things have to be restored. Iraq has already built the foreign currency reserves back to a good number. Now if they reduce the amount of currency back to an acceptable number... they can revalue.
That is the PERFECT setup for a lop.
Will it lop? Who knows?
What is known... If it doesn't lop... it will not revalue a substantial amount.
Well... it's been 4 1/2 years so far. I would think that with a currency... the longer it's out there... circulation numbers growing... becoming entrenched... the less likely a huge revaluation will happen. Thinking it might go up 10 or 20 percent seems reasonable. 100 percent from here would be amazing... but 10,000 or 100,000 percent is out of the question.
"The Iraqi government has complained that it cannot support its huge Saddam-era debt to various countries — amounting by some estimates to more than $60 billion."
Iraq currently has to support about $18 billion in currency.
A 1:1 revalue would mean they have to support $22 trillion in currency.
It makes ZERO sense to think that a country that can't support $60 billion in debt can somehow support $22 trillion in currency.
Exhange rate since Jan 1, 04
The new dinar came out in Oct of 03 with an exchange period of 3 months. On Jan 1st when the exchange was done the rate was already down to 1695. Within 2 weeks it was already down to 1400's and even 1300's.
http://www.cbiraq.org/C.B.I.%20FOREIGN%20EXCHANGE%20AUCTIONS.pdf
Should be a must read for anyone with dinar.