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?
AI
