Thread: My Turn With My Source. {Friend}

This article is from last year, though for some reason it has been resurfacing again. I am stealing from my own post on another forum to give you my response to it:

The problem with a lop and reprint is that it is only cosmetic...... it makes it look like things have gotten better when they have not.

Pretend I am buying an Iraqi rug that costs 2 million dinar, or about 1600 USD.

Then they reprint, the rug now costs me 2,000 dinar. It SOUNDS good... but the rug is STILL costing me 1600 USD. There is no real change when compared to any other currency.

Lopping is a fallacy that only makes things look better than they are. Iraq could do this, but it would only be for domestic politics to make people feel better about their currency. It would not, in fact, help anyone with imports and it would not make things cheaper.

Afghanistan tried this and it failed miserably. My belief is that the idea has been batted around, but the WB and IMF ave nixed it because it does not make fiscal sense. It is a far more responsible move to appreciate the value of the dinar based on sound backing and a decrease in M2 supply. It takes longer, but in the end it will actually make a loaf of bread cheaper for the individual Iraqi. By lopping you wind up with a loaf of bread that costs the exact same per capita, and business never benefits.

Originally Posted by snottynose

Ok can someone explain this..thought there would be no reprint!

Originally Posted by JIVE

i was looking at dinar on ebay and i found this in the quide section
this has got me worried now i was planning to buy alot of dinar

Iraq says considering knocking zeros off dinar

by: dealslot( 4701) 12 out of 15 people found this guide helpful.
Tags: Iraqi Dinar Facts

BAGHDAD - Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said on Thursday.

Senior government and central bank officials have told Reuters the proposal has been under consideration for some time to make one new dinar equal to 1,000 current dinars, a move that would bring the currency closer to parity with the U.S. dollar.

Asked about such a suggestion in an interview on Arabiya television, Finance Minister Bayan Jabor said: "This is the ministry's suggestion to the central bank. We think in the long term it will be for the benefit of Iraq."

Jabor said surveys indicated popular support for the move. The oil-rich nation's currency was once worth more than $3, he recalled, before the ruinous wars and international sanctions during the rule of Saddam Hussein

Guide ID: 10000000001377479Guide created: 07/10/06 (updated 06/28/07)

Thanks Jive!

And here are just a few of the other items that were sold by this
Ebay member recently, get them while there hot! lol


STACKER 3 XPLC Burn Fat Boost Metabolism 148 Ct New

SLIMQUICK FEMALE RAPID FAT LOSS 120 CAPSULES

Fahrenheit Farenheit Lose Weight For Women 216 Ct

13 Bottles Mucinex EXPECTORANT 600mg EXTENDED 460 Ct

200 MediSense Precision Xtra Test Strips

NxLabs Nitro T3 Anabolic Formula Testosterone180 Ct New

3 Btls AbGONE Extra Strength High Energy 360 Ct


Doesn't look like he's made to many Dinar sales and currently has 0 active
auctions so I think he's a new guy and has mixed a few different articles
into one article and then twisted them up to mean something totaly different
than what we have read in the past. JMHO
lewscrew

Very good analysis ialdoboath! I like it!

Originally Posted by Ialdoboath

This article is from last year, though for some reason it has been resurfacing again. I am stealing from my own post on another forum to give you my response to it:

The problem with a lop and reprint is that it is only cosmetic...... it makes it look like things have gotten better when they have not.

Pretend I am buying an Iraqi rug that costs 2 million dinar, or about 1600 USD.

Then they reprint, the rug now costs me 2,000 dinar. It SOUNDS good... but the rug is STILL costing me 1600 USD. There is no real change when compared to any other currency.

Lopping is a fallacy that only makes things look better than they are. Iraq could do this, but it would only be for domestic politics to make people feel better about their currency. It would not, in fact, help anyone with imports and it would not make things cheaper.

Afghanistan tried this and it failed miserably. My belief is that the idea has been batted around, but the WB and IMF ave nixed it because it does not make fiscal sense. It is a far more responsible move to appreciate the value of the dinar based on sound backing and a decrease in M2 supply. It takes longer, but in the end it will actually make a loaf of bread cheaper for the individual Iraqi. By lopping you wind up with a loaf of bread that costs the exact same per capita, and business never benefits.

Thanks!!!I truley wasn't worried!!!..figured he was just another drive by naysayer!!!Looks like he may have been!!!

Funny,

This is an old article which has been bounced about for the last year, and eBay is the last place you would want to get the latest information on Iraq from.

Good luck and health to all, Mike

I agree

thanks guys i feel better now
i knew it was jive cause why would they do a reprint after all this time
and the article is old but still scared the hell out of me
i figured u guys had heard about it or had info or opinion on the subject
i do think they need a 5 dinar bill and a 1 dinar bill
ok back to saving money for dinar

Right now they have a 50 dinar (I own several million worth of them), they also have probably printed 25 and possibly a 10 which we havent seen yet because they arent worth squat. That is why I think a reval will probably occur when slo-grow brings it to a 1000 to 1 (hopefully around year's end), then a 2 decimal shift to a 10 to 1 ratio. Make sense, it works with the currency already in use, and the amount of M2 outstanding plus using oil reserves and gold as backing shouldnt bankrupt the CBI with this scenario. A lop is a ridiculous theory because the RV is supposedly for the "common joe" Iraqis, not the speculators. If a can of pepsi costs around 1250 dinars, and you have 2500 dinars in your hand and it lops and reprints to 1 to 1, you will still only be able to afford two cans of pepsi post-lop.

25 is the lowest one
was there a 1 or 5 dinar bill or coin when saddam was in power?

I have a feeling that they will probably want to take the coins back and melt them down. Nobody in the future will want to have a coin potentially worth 25 bucks. A 1 dollar or 10 peso coin is about the biggest coin Ive ever dealt with. Anything bigger is just not useful.