Happy Easter..
All honor and glory go to our Lord Jesus Christ..
Im an engineer, not an economist, so feel free to tell me if I am missing something...
Ive heard people say that the average Iraqi's wealth was wiped out overnight, and so its only logical and fair for it to be restored...
before I thought this made sense, but it really does not...
and this is why
their wealth was only wiped out in relation to the dollar. The Iraq citizen lives his life using the dinar, not the dollar, so he should not care how many dollars his dinar is worth...
no different than I could care a less what my dollar is worth in Euros or Yaun (unless I plan to take a vacation there).
If one US dollar were to all of sudden be worth .0001 Euros , instead of what it is today, how would that affect me going to the store and buying a loaf of bread or a house?? zero affect !!
Similarly, if one US dollar were to overnight be worth 100 Euros, would I be able to buy more bread at 7 eleven in the morning?? Hey Mr 711 cashier dude...the dollar is now worth 100 Euros, so now I want 100 loaves of bread for the same price I bought one loaf yesterday!!! he is going to tell me.... who cares how many Euros your dollar is worth. You're not in Europe ya idiot!!!!(with an Indian accent of course)
The dinar to the Iraq people is not a lottery ticket (like ema has said before), it is their currency, just like our USD is our currency.
If I go to thailand with $200K, I can probably live like a millionaire there. But is that $200K going to allow me to live like a millionaire here in the US? No. Its no different in Iraq. If it goes 1=1, the Iraqis will not become rich overnight. Unless they move to the US.
The average Iraqi is only going to care how much stuff he can buy with his dinar, not how much his dinar is worth in USD. When you go grocery shopping or go to buy a house, do you care how much your USD is worth in Euros? Its no different. Do you check the exchange rate for the USD vs the Euro before you leave the house? Of course not. The average Iraqi is not going to check the exchange rate for the USD either.
The dinar is not a lottery ticket to the Iraqi.
