Thread: Munny Model Timelines (UPDATE)

Everyone is guessing ..... nothing we can do but wait
get out the pop corn

I read the "Letter of Intent" and didn't see a reference to the exchange rate. Maybe I missed it.

The exchange rate is just that, a rate. Whether it's 1200:1 or 1:1 it's still just that. A rate. The value of good does not change because the exchange rate of a currency did. The ISX can open at 1200:1 and the rate can stay at 1200:1 indefinitely. The only way it can get better is to back it up with reserves. Oil in the ground doesn't count. Money in the bank does. Until the oil is being pumped, expect little or no change in the exchange rate (or a slow, gradual increase).

As far as removing currency (do I dare go here...) we have NO WAY of knowing how much Dinar is currently in circulation. That is a well protected secret held closely by the CBI. Don't kid yourself if you think the number posted on the daily auctions reflect actual currency in circulation, or removal thereof. These forums have a way of spinning fact based on interpretations of available information.

I'm no financial expert, but the writing is on the wall, and the daily news tells us what we need to know.

Anyhow, whatever will be will be. We cannot change or predict the future. We are merely along for the ride.

Give me your crystal ball so I can know what you know. Anything else is pure speculation.

Oh yeah, Munny posted this in the proper thread then....

Have agreat weekend everybody!

Originally Posted by Onenomad

Good points but if I was betting on this looking at the fact of the worlds debt forgiveness the fact that their market and central bank are structured on the US (Apparently Mr Greenspan was the central bank governors teacher) I would wager a bold adjustment to bring the country in line with other countries of the region (Though the other countries don't have the wealth Iraq does with their oil thats recently been found to be more then they thought originally) Your right their culture is very different from the west but going with that they are a very proud people and they will want the rate to get to what it once was. I keep looking at Afghanistan's rate and there is no way a country with nothing but poppies is worth more then a country floating on Oil and then there is that pesky little fact of two sets of books one being "The PROGRAM rate" and the other keeping the old rate as per instructions from the Iraqi Central bank which I believe is the .31 dinar to 1 dollar. Who knows what is happening behind closed doors when the powers to be meet but it sure is interesting since getting into this I have never learned so much about another culture their history and their potential

Thank You

Great Post!

I was writing my last post when you posted this.

Great points.

Behind closed doors.....we will know when the time is right.

Until then...Speculate Away!

and we are sure getting our money's worth for the ride !

[quote=Hardwood;190020]I read the "Letter of Intent" and didn't see a reference to the exchange rate. Maybe I missed it.

The exchange rate is just that, a rate. Whether it's 1200:1 or 1:1 it's still just that. A rate. The value of good does not change because the exchange rate of a currency did. The ISX can open at 1200:1 and the rate can stay at 1200:1 indefinitely. The only way it can get better is to back it up with reserves. Oil in the ground doesn't count. Money in the bank does. Until the oil is being pumped, expect little or no change in the exchange rate (or a slow, gradual increase).

As far as removing currency (do I dare go here...) we have NO WAY of knowing how much Dinar is currently in circulation. That is a well protected secret held closely by the CBI. Don't kid yourself if you think the number posted on the daily auctions reflect actual currency in circulation, or removal thereof. These forums have a way of spinning fact based on interpretations of available information.


I agree with you posts. No one knows. Theorys abound. But the facts will come to light only with time! Everything else is projections and speculations based upon hope from reading the daily news.

Gotta admit you can't buy entertainment this good. Even if God forbid it didn't work out this is still on heck of a ride.

Japanese business men and companies are billionaires based upon the value of their land in downtown Tokyo...they are billionaires not because they have sold their land but they have leveraged that value to actual cash through loans from banks...why would Iraq's oil in the ground be a different model than Tokyo.
What the rate does effect is purchasing power. In Thailand I was paid in USD and at the rate of 50/1 I lived very good as I had a lot of local purchasing power but, when the rate dropped to 31/1 everything still cost the same but, I could not afford as much as I had lost a large part of my purchasing power - as this is a Baht only economy...so my ability to purchase or not is based directly upon the exchange rate on any given day...and the reverse would be true if I had been paid in Baht.

Fred

Originally Posted by fredgwest1999

Japanese business men and companies are billionaires based upon the value of their land in downtown Tokyo...they are billionaires not because they have sold their land but they have leveraged that value to actual cash through loans from banks...why would Iraq's oil in the ground be a different model than Tokyo.
What the rate does effect is purchasing power. In Thailand I was paid in USD and at the rate of 50/1 I lived very good as I had a lot of local purchasing power but, when the rate dropped to 31/1 everything still cost the same but, I could not afford as much as I had lost a large part of my purchasing power - as this is a Baht only economy...so my ability to purchase or not is based directly upon the exchange rate on any given day...and the reverse would be true if I had been paid in Baht.

Fred

A very good real world example of how changes in the exchange rate impacts purchasing power. What the Iraqis will want is a more favorable exchange rate to INCREASE their purchasing power by raising the value of the dinar. Its all good for us. Thank You.

Originally Posted by Hardwood

I read the "Letter of Intent" and didn't see a reference to the exchange rate. Maybe I missed it.

The exchange rate is just that, a rate. Whether it's 1200:1 or 1:1 it's still just that. A rate. The value of good does not change because the exchange rate of a currency did. The ISX can open at 1200:1 and the rate can stay at 1200:1 indefinitely. The only way it can get better is to back it up with reserves. Oil in the ground doesn't count. Money in the bank does. Until the oil is being pumped, expect little or no change in the exchange rate (or a slow, gradual increase).

As far as removing currency (do I dare go here...) we have NO WAY of knowing how much Dinar is currently in circulation. That is a well protected secret held closely by the CBI. Don't kid yourself if you think the number posted on the daily auctions reflect actual currency in circulation, or removal thereof. These forums have a way of spinning fact based on interpretations of available information.

I'm no financial expert, but the writing is on the wall, and the daily news tells us what we need to know.

Anyhow, whatever will be will be. We cannot change or predict the future. We are merely along for the ride.

Give me your crystal ball so I can know what you know. Anything else is pure speculation.

Oh yeah, Munny posted this in the proper thread then....

Have agreat weekend everybody!

Sorry Hardwood, but you are totally wrong. The rate does matter, especially when you are a country that imports 95% of everything they use. If their currency revalues it is like getting that new washer and dryer for pennies. Now after the initial revalue it will slowly even out because the currency will be taken in by the CBI and destroyed or stored. The revalue dosen't really make sense to other countries but when Iraq does it, it will put a huge amount of material goods in the hands of the people who have nothing now. This revalue won't cost the CBI anything if they choose the correct rate at revalue and the buying and selling of the dinar balances each other out.

Originally Posted by texaslonghorns

Sorry Hardwood, but you are totally wrong. The rate does matter, especially when you are a country that imports 95% of everything they use. If their currency revalues it is like getting that new washer and dryer for pennies. Now after the initial revalue it will slowly even out because the currency will be taken in by the CBI and destroyed or stored. The revalue dosen't really make sense to other countries but when Iraq does it, it will put a huge amount of material goods in the hands of the people who have nothing now. This revalue won't cost the CBI anything if they choose the correct rate at revalue and the buying and selling of the dinar balances each other out.

Before you magically state your currency is suddenly worth thousands of times more today than it was worth yesterday, you'd better be prepared to provide PROOF.

That is the burden Iraq carries right now. Prove it and it will come.

Thank you.