Replies to post #24222 on Iraqi Dinar Discussion Board (IQD)

[Aerospace]

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.

[Aerospace]

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.