Thread: Positive R/V Rumors

I should have reworded it. I was thinking about the underlined statement and wanting to post my opinion about the fact that Saddam is gone and who's not to say it won't go back to the $3. Some around me are sceptical that it won't hit anytime soon (maybe a couple of years). Is this speculated to go up when it hits the international market?

Originally Posted by PAn8tv

don't be offended, just do a little research if you're posting something that's not quite current. this is a great bunch of people.

and i didnt mean to make it look as if you were a bad guy. just a hell of a way to start out a 1st post is all

Originally Posted by boxiedoxie

I should have reworded it. I was thinking about the underlined statement and wanting to post my opinion about the fact that Saddam is gone and who's not to say it won't go back to the $3. Some around me are sceptical that it won't hit anytime soon (maybe a couple of years). Is this speculated to go up when it hits the international market?

nothing is for sure, especially this. but if you look at what iraq has to offer and who is lined up or lining up, thing point yes it will and substantially
i've found that those that say no just simpily have not done their homework or even the slightest bit of research. just keep watch the latest news thread and you'll find everything you need to know

Originally Posted by boxiedoxie

I should have reworded it. I was thinking about the underlined statement and wanting to post my opinion about the fact that Saddam is gone and who's not to say it won't go back to the $3. Some around me are sceptical that it won't hit anytime soon (maybe a couple of years). Is this speculated to go up when it hits the international market?

Not to worry Boxie. It's all good. Keep posting whatever you can find. Maybe it's been posted before and maybe it has not. If it has, you will likely hear about it from others. Just don't take it personal. Many have been here for a long time and you may be paying for someone else's wrongdoing. Keep reading up on all posting from others. Whenever possible, chime right on in with any opinions you may have. Who knows, you may bring up an angle nobody else has thought about. Stay positive.

*Update*

Rumor is now dead. Sorry for getting anyones hopes. If you are wondering it was caused by misinformation, not on my behalf. Keep your heads up and your spirits high, be thankful your in the right place at the right time. : )

Originally Posted by Bigslick116

*Update*

Rumor is now dead. Sorry for getting anyones hopes. If you are wondering it was caused by misinformation, not on my behalf. Keep your heads up and your spirits high, be thankful your in the right place at the right time. : )

Nevermind - another day, another dinar - wehey

What is this thread about. The title says "Positive R/V Rumors" and all I have been reading is how bad another forum is. Neno, what are the rules?

Thank you boomcreek!

I have moved several posts to the archive. This thread is for positive rumours only!

If you have something untold with people, take it over PM please

Thanks
Raditz

This is more a positive post than a rumor- Okie from T&B forum wrote:

Okie wrote:

Before I started buying Dinars, my thought process was fairly simple and went like the following. I reviewed it today and will stand pat on my hand.


CAN THE US WIN THE BATTLES IN IRAQ?
I was lucky during my Time in Iraq and spent most of my time surrounded by US Marines. It was awhile since I had been this close to our Military and needless to say the men and women of our Military are impressive and left no doubt in my mind that the answer to my question was YES.

CAN WE CONVERT THEIR GOVERNMENT?
I knew that everyone from our President on down was putting on the full court press to make this happen. Several of the surrounding countries have a fairly moderate Government and I knew the Iraqi’s wanted a change so my answer to this question was YES.

DOES IRAQ HAVE ASSETS THAT SUPPORT THEIR DINARS?
This was almost a no-brainer because Iraq has always had good assets going back to Biblical times. They always had trade, water and agriculture. Now they’ve added oil and gas to their cookie jar. All they have to do is get their country going again so the answer to my question was YES.

WILL THE DINAR GO UP IN VALUE?
I’ve spent over 20 years in the Middle East as a contractor doing Systems and Instrument Engineering/construction work. I’ve worked mostly in Saudi Arabia but also did 18 months in Iraq. I’m now in the US but still involved with projects in Iraq. Due to this background, I knew the Iraqi’s would have to spend a huge amount of money to re-build their petro-chemical, power, water and other elements of their infrastructure. I don’t believe they will pay for all of this work with the current value of the Dinar. My answer to this question was YES.

WHAT’S THE FUTURE VALUE OF THE DINAR?
That’s the burning question and probably the only people who know are light years above us. My educated guess is somewhere between 28 US cents to 1 US Dollar. I believe their assets would support 1 Dinar=1 Dollar but it will be introduced at a lower value and let the market decide. I estimate they won’t go lower in value than their Sunni neighbors to the South of them. National pride kicks in on this one. So my answer to this question is I don’t know but I’m investing on the premise that it will be at least 28 US cents=1 Dinar. I started buying Dinar in July 2004, about a month after I arrived in Iraq, and my most recent purchase was in Jan. 2006. I have 50% in Warka Bank and the rest in cash. COM’ON DINAR……

Another post by Roger at T & B Forum:

Maureen,

Yes the prewar value of the Iraqi Dinar, ( or lets say pre Saddam Value) was around 3.5, and that holds true for most of the countries in the region.

Kuwait for example was a completely different affair.

At the time the oil wells was burning you could buy the Kuwait Dinar for I believe it was 6 or 7 cents, and within a year they were straight back to about 3 Dollar 50 Cents again.

Kuwait was a relatively easy fix. Send in the oil workers and fix the well heads, pipes and open the taps, and the country was up and running again. On top of it all, most of Kuwaits money was not in the country, when Saddam invaded, but was tied in foreign investments.

When Saddam and his cronies was kicked out, there was more a matter of reconstruction, done by a homogeneous population, that had the money, purpose, goal and ambition to do it.

Iraq is a completely different ballgame, any comparison with Kuwait is moot.

Under Saddams long regime, the whole society fell into decay. This have progressed to the point that a long and hopeless decline ended up in a completely worthless Dinar. The Dinar was changed to the new Dinar, the one you are holding, without Saddams picture on it.

So at this moment you have a disturbed, but at least reasonable functioning society in Iraq, where the value of the currency, the wages and the cost of things, in number dont match the surrounding countries.

Eventually they will get there, but in the meanwhile some very interesting phenomenon will pop up, like the one mentioned yesterday, that if they revalue to over 1 dollar, the purchase value of each Iraqi citizen will be in the vicinity of 29-30.000 dollar per month, if they don't change anything else other than the exchange value of the currency.

Of course , they will not rush out and buy Dollar for the currency, because they will already hold a currency in their hand with that value, so swapping paper for paper is of course meaningless.

Most probably the Iraqis will RV to somewhere in the vicinity of 5 to 15 cents, that will get prices, wages in good condition. They cant go too far away from it's true international value, and as the Iraqi Dinar is untested, (never been on the Forex, that is, never freely traded) the true value will remain unknown until that happens.

I thought of it yesterday, after answering your post....how could the Iraqis possibly actually do a reval, in the vicinity of a buck and get away with it.

This is how they could do it.

Earlier there was an option, now dead, that proposed that the Dinar would have a couple of Zeroes cut off, so 1000 Dinars would equal ONE Dinar instead. It was very impractical, to change out the whole currency again, and as the original printers of the currency had such a wide spread on the denominations, that option is no longer an issue, but it would do the thing you're looking for. Get the numbers in range.

Right now, a worker over there gets, lets say, 200 Dollars/ month, that times 1450 = 29.000 Dinars.

Ok, In Iraq right now, he will actually walk home with Dinar bills saying 29000 on them.

You get things by exchange, of comparable magnitude.

A street sweeper does not have the exchange in effort or value to the point of letting him have a new car every month.

I'ts just not worth it. The monetary exchange factor will be pretty screwed in Iraq if I may say so, I'm sure you can see where this is leading.

So, this might be a very real and very doable way to do it.

1. Make an RV in the vicinity of a Buck.

2. Make a proclamation all over Iraq, that on this day on, all prices and wages MUST be cut to 10% of earlier figure.

So , that would mean, his wages would be 2900/month, and as all the prices are cut by 10% as well, his BUYINGPOWER would stay in par. The Dinar is now worth a buck. and will buy soo much more stuff from the out side world. Suddenly, we get into the phenomenon Tim Bitts were getting to.

We all love toys, we would have plenty of toys , now in a very affordable range, and the whole RV to 1 Buck would have been completed.

If it have to go to 1 Buck, I would do it in that way.

The bonus here would be that the Iraqis last paycheck of 29000, would give him a very very high welcome entrance to the new system, as the bills would not change.

-- November 20, 2006 2:27 PM ∞


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I've been following Rogers posts and he hasn"t to my knowlege advocated a reval as high as 1 to 1 before - good to see he's coming around, I take it as another sign that the reval is coming soon!