Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by Precocious

I think most folks fail to realize that a change from 1465 to 1460 Dinar to the US dollar is a revalue! Changes of this nature are normal and customary in the world market. It equates to about 1/3 of 1% change. Unfortunately, changes at this percentage rate will take many years to equate to an equal Dollar for Dinar ratio. If it dropped say 200 units tomorrow; to about 1250, $1,000,000 Dinar would still only equate to $800 US dollars. Many have paid more than that for smaller denominations.

A drop of only this amount goes nowhere near what they want to achieve and will make no difference to inflation, or give their people purchasing power. This is just a start.

Originally Posted by Precocious

I think most folks fail to realize that a change from 1465 to 1460 Dinar to the US dollar is a revalue! Changes of this nature are normal and customary in the world market. It equates to about 1/3 of 1% change. Unfortunately, changes at this percentage rate will take many years to equate to an equal Dollar for Dinar ratio. If it dropped say 200 units tomorrow; to about 1250, $1,000,000 Dinar would still only equate to $800 US dollars. Many have paid more than that for smaller denominations.

you've just burst my bubble..............

Isn't it amazing how good news comes in pairs. First we have the CBI stating that they are going to increase the dinars value and this morning we have an article that states they have a shiite pot full of oil up in northern iraq. Sounds like to me their bringing this later info out in order to use it for a higher reval. Of course we knew that Iraq had alot of oil, but apparently their actually floating on the stuff. Anybody have a good Robin Leach quote ready?

Originally Posted by cigarman

Isn't it amazing how good news comes in pairs. First we have the CBI stating that they are going to increase the dinars value and this morning we have an article that states they have a shiite pot full of oil up in northern iraq. Sounds like to me their bringing this later info out in order to use it for a higher reval. Of course we knew that Iraq had alot of oil, but apparently their actually floating on the stuff. Anybody have a good Robin Leach quote ready?

Don't forget only 10% of oil has been discovered and only 25% are currently operating and that at 2.86MBD.

Originally Posted by H2O_Lover

Are you sure they are selling Dinar ? I was told that they were selling USD sometime ago buy a very smart guy. that being said i know you are too and i have to admit i to this day dont understand the auctions.

No they are not selling dinar. They selling Dollars getting Dinars in return.

Hope this helps.

Originally Posted by owejac

No they are not selling dinar. They selling Dollars getting Dinars in return.

Hope this helps.

so they have been doing this since i have been watching the CBI for 2 years now. I would think they would have them all by now. And yes it does help

Ref CBI auction today:
So far we have been discussing a reduction in the money supply based on the behavior of the CBI in the last few days. However, reduction is too simplistic of a term to adequately describe what is happening. Most think of increases and decreases, this should be thought of in terms of expansion and contraction. What you are seeing is a contraction of the money supply. This takes into account the movement of money within an economy. Money has to thought of in terms of its multiple effects. Not simply in terms on addition and subtraction. Money in the US is thought to move in a multiple way as low as 5 times and as high as 9. So you are paid, you buy food, the store pays employees, they buy gas, so on and so on. Therefore, contraction and expansion are much more useful in understanding what you are seeing today. If the CBI is approaching removing 1000 Billion (Is this one Trillion?) from the base money supply, then the multiple effects are much more d*****ic than to simply say they "removed" this amount. What is interesting is they seem to be doing this in a short period of time in a dramatic (if not panic) attempt to accomplish this contraction in a short period of time. (Bet you wish you didn't skip all of those economic classes now). This is a positive series of events for us. It will be viewed as responsible monetary policy and suggests they are using their currency reserves and oil money to stablize their monetary base. The question was asked, "Do you think this will result in a higher eventual RV? The answer is a big YES! Although I hesitate to predict when and how much. My point is that what you are viewing is highly effective and responsible money management of the part of the CBI and that we are all in good hands. Please use or post any thing I have written in any way you might think would be helful to someone else. Thank you.




[QUOTE=Wm.Knowles;135317]Ref CBI Auction.

So we have another auction where the CBI removed slightly less than 100 Billion dinar from the economy. Over 60 Million USD. This auction continues a trend were the CBI is removing dinar from the economy at a slightly higher exchange rate. They, like us are attemping to reduce the quanitiy of money at a cheaper rate. (wouldn't you do the same?) their actions remind me of an anology. Like a train leaving the station. This train has started and is moving, but it hasn't left the station. Its still in sight. But like a train, an economy (if managed right and this one is) gathers steam. Until, its moving at full speed. This week will continue to be very interesting short term period as we develop a trend as to what the CBI is doing. Removing currency from the economy is not an unending process. There are finite limitations and those can be obtained in a relatively short period. It is apparent that they have decided, to accomplish this reduction of the quanity of the base money supply in a short period. But there are other factors at play. In an inflationary situation, the rise in Gross National Product (GNP) will absorb excess money in the economy. This is a tactic that the US has used. The economy grows and aborbs excess money and eventually inflation decreases. So with an expanding economy and an apparent reduction in the money supply by the CBI, you have a combination of effective forces that will reduce inflation, demonstrate monetary responsibility, and result in a currency that increases in value. The economic fundamentals are excellent. It will not be long before the strength of the economy, the rise in the value of the dinar will attract the attention of other world banks, international currency trades, and corporations. This week will continue to be very interesting and should be positive for our project.[/QUOTE]



Thanks for all the useful info... you really explained it so I have a better grasp of this whole thing.
I just have a quick question... At this current pace, would you care to take a wild guess as to when this could go big? And also, wouldn't this recent CBI article that's in all the news recently throw a monkeywrench into their whole idea of gradually RV'ing the dinar? i.e-All the new speculation that is bound to happen?

Thanks again.

I am I correct in thinking that when the NID was introduced back in 2003 the auctions were selling dinar for dollars and now that they want to get the economy kick started and reduce inflation, reduce the cost of RV etc...they are buying it all back. If so this would explain how they have got their hands on a shite load of dollars.

Or is this explaination just crap.

Originally Posted by clintstella

I am I correct in thinking that when the NID was introduced back in 2003 the auctions were selling dinar for dollars and now that they want to get the economy kick started and reduce inflation, reduce the cost of RV etc...they are buying it all back. If so this would explain how they have got their hands on a shite load of dollars.

Or is this explaination just crap.

I believe that is one way but if I'm not mistaken some of the monies from oil sales goes to the cbi...

Originally Posted by clintstella

I am I correct in thinking that when the NID was introduced back in 2003 the auctions were selling dinar for dollars and now that they want to get the economy kick started and reduce inflation, reduce the cost of RV etc...they are buying it all back. If so this would explain how they have got their hands on a shite load of dollars.

Or is this explaination just crap.

I think for the last 3 years they have been Buying & Selling Dinars.

Now it appears that they are just buying, I think.