Falsehoods vs The Truth.
Lately there has been a rash of false information spread on this board.
Here are a few.
False: That the dinar in circulation number is being reduced
Truth: While it is true the CBI is buying back dinar, the same CBI that reports those buy back numbers also reports that dinar in circulation is steadily growing. Believe one number, gotta believe the other.
False: Exchange rate is not related to GDP, but it is related to GNP.
Truth: Nonsense because Iraqs GDP is exactly th same as their GNP.... and GDP has a huge effect on exchange rates.
False: The US Fed bought 7.5 trillion dinar.
Truth: There is absolutely nothing to substantiate that claim. Iraq deposited $5 billion in the fed. It was slowly accumulated over years. The fed did not sell them dollars for dinars.
False: M2 shows the Iraqi Dinar raising in value
Truth: Truth is that is jibberish. It's a statement that makes no sense. M2 is the amount of currency units in the system. How that can show value rising is beyond explanation.
False: The Minister of Finance has said no Lop.
Truth: That is laughable. The MOF has proposed a lop 2 or 3 times at least. His last statement was... "the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea." That statement was not in 2006, it was in Oct or Nov of 2007, seven or eight months ago.
False: With 70 billion in revenues Iraq will buy back all the currency.
Truth: Another preposterous theory. First, they need that 70 billion to run/rebuild the country. No country ever has or ever will buy back that large a percentage of their currency. The whole idea is DE-dollarize... that would be the exact opposite and would only be to the benefit of foreign speculators if they did do it. Talk about a pissed off populace. Take all their dinar away, than make it worth a lot.
False: Lops only happen to multiple currencies, with hyperinflation.
Truth: Multiple currencies is nonsense when talking about a lop. Multiple currencies could be remedied by simply issuing a new currency with no lop. If you read the article posted from UNC you will see the fact is that most countries wait until inflation is under control before lopping. Some countries waitng years and years before loping. Large denomination bills are a result of inflation. A lop is done once inflation is under control and is done to simply reverse the result of the past inflation.
False: Dinar dealers have closed shop.
Truth: have seen nothing to support the statement. The statement that dealers are going out of business has been used in the past to pump up sales during a slow period.
False:M2 is an 'Inhouse Value Sheet' to determine rate of Inflation if any for Iraq.
Truth: More gibberish... makes no sense.
Just a few....
IMO
