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What about that can you not comprehend?
Also... you own companies and oil wells?
Don't know what a "hones" post is... but thanks for bringing all those factual post to the boards attention. I couldn't have done a better job myself.
I don't think Tim took issue with that part of my post. He thought my scenario of Iraq blocking currency from getting back into the country was bogus... and it may well be. I said it was simply a worse case scenario and that the only thing that made me think that was a couple blurbs in a couple of the lop articles that stated they would go from 20 Trillion to 15 Billion.
I'm still waiting for someone to explain how they would do that... other than blocking about 5 trillion from being exchanged.
Tim... I never said that's what would happen. I simply said it could be a worse case scenario. And I still think that.
There have been two seperate articles out where they have stated they will go from about 20 trillion down to about 15 billion.
How else do you explain that?? A true 3 zero lop with all currency exchanged would be 20 Trillion reduced to 20 Billion. How will they reduce it the extra 5 billion? The only thing I can think of is they don't plan on having to exchange all of it.
If you have another explanation, I'd love to hear it.
But at least I know the dinar is a scam. ;)
I know it has nothing to do with dinar and it's just a sily little game he's playing.
It either doesn’t exist or it’s so obscure no normal person would know it.
You can "wire" 100 billion physical dinars?
They have to be transported into the country one way or the other.
Can do without your childish insults.
Are you personally taking yours back over there?
My point is, when Joe Dinar Dealer shows up at the boarder with 100 billion dinar he wants to exchange, that might be a problem.
15 million is a tiny amount.
Also… in the best case scenario. The dealers are not going to have the new Iraqi currency to exchange for you. You are going to have to except dollars back. You will be out of the investment.
When the lop is enacted. There will be an exchange period for IRAQIS to exchange their currency. All of it, not just 25K notes. All currency will be exchanged.
No one knows at this point how long that exchange period will be. It was 3 months the last time Iraq exchanged currency. In other lops, I’ve seen up to a year given. There have also been cases of as little as 3 or 4 days given to exchange. I think Iraq will give 3 months again, but that’s just a guess.
Now… worst case for people holding cash outside of Iraq…. Iraq may announce that all currency outside of Iraq was illegally smuggled out and not allowed back into the country for exchange. If that happens the dealers will have a hard time getting it back in to the country, so they will be hesitant to buy it back
Best case for foreign cash holders. Iraq doesn’t crack down on currency returning and they give about 6 months for exchange. That will give plenty of time for the dealers to buy it all back and get it into Iraq for exchange. Dealers will still charge quit a fee for this.
And those were all real rates. When Saddam took over in the 80's the rate was great. He took them to war with Iran, he spent all the foriegn reserves that were to back the dinar, he then just started printing dinar like crazy. He didn't allow any transparency into the CBI. The IMF simply continued to list the Official rate, the Saddam rate throughout the 90s and early 2000's because they had no other information. The actual rate, the street rate had fallen to 3000:1 by 1995, 15 years ago.
Explained here by the CBI
http://www.cbi.iq/index.php?pid=History
Those were Saddam Dictated rates. They were laughed at by the world.
If Iraq wants to RV back to that rate, they are free to do so. The world will laugh at them again.
Not sure I would believe him. but I sure would believe this offical from the Central Bank of Iraq.
http://www.iraqdirectory.com/DisplayNews.aspx?id=6980
The "trend is the deletion of three zeroes, instead of dealing with monetary issuance of $ 18 trillion dinars, our economy will deal with not more than 15 billion dinars, a mass of different categories to facilitate criticism, circulation and encourages banks to accept cash deposits."
Before you go crazy over the different amount. This was from 2008.
I don't thik they will do anything until our troops are out. I think they are waiting on that and they will say "the tropps are gone, things are getting back to normal, we are totally in control, time to issue a new currency with a decent rate (lop)".
They have simply been proving to themselves, the IMF, and rest of the world, over the last few years they can maintain a stable rate and keep inflation under control.
And right below it should be this link
http://www.cbi.iq/documents/key_financial.xls
Which shows that Iraq has
M2 of 46 Trillion
M1 of 37 Trillion
Currency in circulation of 21.5 Trillion
When the lop happens, if it's a short exchange period, say 3 months like last time. No bank will touch it. You will be stuck dealing with the dinar dealers.
The article sates the new value will be 1.17 dinar per dollar.
Same as 85 cents per dinar.
Do you think Iraq is telling everyone in advance they will lop 3 zeros, which is revenue neutral??
Or do you think Iraq is announcing to the world they are going to RV the dinar 100,000% sometime soon?
A lop is revenue neutral. Who said it would improve anything. It will just make accounting easier.
Why do you not apply the same thinking to a magical RV. Why haven't they done this RV yet? If it worked like most are saying it surely would make things better.
The dinar won't be given any value. It is currently at .00085. That's probably where it will stay until they lop, late this year or next year. You will have to exchnage all your dinar for new dinar. You will have to give 1000 to get 1. So if you have 1 million you will end up with 1 thousand. The new dinar will be valued at .85. See article posted by Sportfisher.
This is why people at banks are laughing at people coming in talking about cashing in and becoming millionaires.
Dealers will probably charge a huge fee to exchange... if they exchange at all. Iraq might crack down on all currency re-entering the country.
How about the fact that the post right before yours is the CBI confirming that they will lop soon.
Another dinar dealer that fails to even mention that Iraq only had 30 some billion dinar when they had that great rate back in the eighties, and that they now have 46 TRILLION.
Just a small fact he omitted.
A lot of close ties will be tested when this plays out.
Could be... but I suspect it's just a case of the IBOX having misleading information.
That's not the only example of it either.
According to the IBOX, you are wrong. It says...
US Banks that will exchange Iraq's Dinar
- Chase Bank - Bank of America - TD Bank - HSBC - CITI Bank - Wells Fargo (selected branches) - Compass Bank - 5/3rd Bank - Regions
What concerns the stability of the dinar against foreign currencies?
Investigation / Maytham Hamid
Perhaps the most important results that led to the monetary policy pursued by the CBI during the last three years, stability, witnessed by the Iraqi dinar exchange rate against foreign currencies, which in turn reflected on the levels of inflation, which has seen a decline is also remarkable
much more...
http://translate.google.com/translate?hl=en&sl=ar&u=http://www.almadapaper.net/news.php%3Faction%3Dview%26id%3D16107&ei=MV7MS868NKHGM6Ck2fgE&sa=X&oi=translate&ct=result&resnum=1&ved=0CEoQ7gEwAA&prev=/search%3Fq%3D%25D8%25A7%25D9%2584%25D8%25A3%25D8%25B5%25D9%2581%25D8%25A7%25D8%25B1%2B%25D8%25A7%25D9%2584%25D8%25AF%25D9%258A%25D9%2586%25D8%25A7%25D8%25B1%2B%25D8%25A7%25D9%2584%25D8%25B9%25D8%25B1%25D8%25A7%25D9%2582%25D9%258A%26hl%3Den%26tbo%3D1%26tbs%3Dqdr:d
Just realized, he cut and pasted that from someone else’s post.
Could you post which TOU I violated.
If you think I violated one, you should delete the post.
But maybe you should read these.
I think your post violates one or both of these.
Personal Attack – when someone attacks one or more members personally rather than the content of that Member's message. The post does not have to be addressed to the "target" of the attack to be considered a Personal Attack. If it attacks a messenger rather than the message, it qualifies for deletion and it is expected that Moderators will remove it.
and
Posts about or focusing on other Members and their reasons for posting on the board (i.e. "XYZDownDaDrain" is just a basher, ignore him", "XYZToDaMoon" is a pumper").
And I know it violates this one.
Moderators should never threaten other Users. For example, a public post or a PM stating "Get on topic or your posts will be deleted and you will be banned" is not healthy and usually just inflames the situation.
10 times = $3.20? Is that new math?
10 times would be .0085, still not even one penny.
That title is backwards. The geniuses over at E-dinar financial still don’t know how to interpret the currency auctions.
Iraq has 46.3 Trillion reasons why they wont RV
CBI update, M2 now 46.29 Trillion
The link is in the IBOX, it's the Central Bank Of Iraq
If you just look at GDP and exchange rate it means nothing.
Look at the top Countries.
The US.
Japan is 100:1
Italy is number 7 on the list, they were 1600:1 before joining the Euro.
They didn’t RV and no one became instant millionaires.
GDP and money supply are pretty closely related.
World money supply numbers.
Notice that the world M3 number is $60 Trillion
Now look at world GDP
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
The whole world GDP is about $60 Trillion
So you would thnk every country should have a money supply about equal to their GDP, and that's basically true. But in reality it's not.
A country like the US is going to more because the dollar is used world wide for many things.
Countries like Iraq will not have 100% because most of Iraqs GDP is from oil sales which are dollars. Iraqs economy that requires dinar is pretty small.
Iraqs GDP can fly up and down based on oil prices. That doesn't change the dinar part of the economy that drasticaly.
45 Trillion is their total money supply, the M2.
25 Trillion is the currency part of the money supply.
If Iraq could RV like some claim, and increase their money supply to $45 Trillion or more... then this $24 Billion debt to Kuwait would be like pocket change.
In fact, Iraqs total debt when this thing started was $300 billion.
With a $45 trillion money supply, $300 billion would have been pocket change.
Because they have a currency in circulation number of 20 Billion. Unlike Iraq who has 25 TRLLION which requires a lop.
http://www.mas.gov.sg/resource/data_room/msb/February%202010%20Vol%2031%20No%202.pdf