Is there a LOP taking place

With the new coins and such ,has there been a LOP that has taken place too? How would we know if it has taken place?

aircam wrote:With the new coins and such ,has there been a LOP that has taken place too? How would we know if it has taken place?

It can lop or rv, or both at the same time. The only way.you can know for sure is when it is made public.

PLEASE, DON"T EVEN SAY SUCH A THING AS LOP! DOESN"T MAKE ANY PROGRESS FOR IRAQ. NO LOP!

And therein lies the one question that is on all our minds!

NO LOP to have a lop your inflation has to be out of the roof like 1200% last month they had a 6.1% and in aug it went to 3.0% other coutrys would jump to have there inflation so take the lop thery and throw it in the garabage there is no lop and will not be a lop thanks procomp1

procomp1 wrote:NO LOP to have a lop your inflation has to be out of the roof like 1200% last month they had a 6.1% and in aug it went to 3.0% other coutrys would jump to have there inflation so take the lop thery and throw it in the garabage there is no lop and will not be a lop thanks procomp1

Incorrect, lop/redomination takes place AFTER a country gets to low inflation in many cases. AKA Turkey and Romania were both in single digits then redom'd. Please do research and you will know the truth vs repeating what other spout as fact.

therealbutterfly wrote:

procomp1 wrote:NO LOP to have a lop your inflation has to be out of the roof like 1200% last month they had a 6.1% and in aug it went to 3.0% other coutrys would jump to have there inflation so take the lop thery and throw it in the garabage there is no lop and will not be a lop thanks procomp1

Incorrect, lop/redomination takes place AFTER a country gets to low inflation in many cases. AKA Turkey and Romania were both in single digits then redom'd. Please do research and you will know the truth vs repeating what other spout as fact.

Thanks for your level headedness Butterfly!

procomp1 wrote:NO LOP to have a lop your inflation has to be out of the roof like 1200% last month they had a 6.1% and in aug it went to 3.0% other coutrys would jump to have there inflation so take the lop thery and throw it in the garabage there is no lop and will not be a lop thanks procomp1

The massive inflation that Saleh and Shabbib are always talking about is the one that occurred in 2003 - remember that? That's is why they are doing what you call "the LOP".
This from the following link: "Before, and the Central Bank announced its intention to raise three zeroes from the Iraqi dinar, after suffering from inflation and the decline during the nineties the past by economic sanctions, its value has tumbled to become the world today, about 1120 dinars per dollar"
http://www.daralhayat.com/portalarticlendah/292995

Here's one dated just 2 days ago: "The Central Bank planned to remove three zeros from the Iraqi dinar, after suffering from inflation and the decline of the currency during the nineties, due to economic sanctions. The value of the dinar decreased internationally to its current value of approximately 1120 dinars per dollar."
http://www.albawaba.com/main-headlines/iraq-remove-three-zeros-dinar-386838

Seriously all hasn't okie and others explained the LOP enough to prove that it isn't going to happen in this instance?????????

Matt
http://greatappreview.blogspot.com/

MatthewR wrote:Seriously all hasn't okie and others explained the LOP enough to prove that it isn't going to happen in this instance?????????

Matt
http://greatappreview.blogspot.com/

Seriously....
take what you need to believe and leave the rest for the others. There are different points of view. Go back and judge for yourself the veracity of all the information. Watch it week after week, month after month and year after year and the depth of your understanding will be greater.

Well said Alchemist

therealbutterfly wrote:

procomp1 wrote:NO LOP to have a lop your inflation has to be out of the roof like 1200% last month they had a 6.1% and in aug it went to 3.0% other coutrys would jump to have there inflation so take the lop thery and throw it in the garabage there is no lop and will not be a lop thanks procomp1

Incorrect, lop/redomination takes place AFTER a country gets to low inflation in many cases. AKA Turkey and Romania were both in single digits then redom'd. Please do research and you will know the truth vs repeating what other spout as fact.

I'm sorry, but your research was incomplete. Turkey's and Romania's inflation rates were not single digit when they redominated: what was single digit was their inflation's annual percentage rate change. Both redominated in 2005. Turkeys % change was 8.2 and Romania's was 9.0. However, their actual inflation rates were 327.998% and 231.685% respectively. These are documented facts.

Here's a link to the IMF that will show this: http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcoutm.cfm?SD=2003&ED=2007&R1=1&R2=1&CS=3&SS=2&OS=C&DD=0&OUT=1&C=968-186&S=PCPIPCH-PCPI&CMP=0&x=61&y=8

Needless to say, I agree with MatthewR and procomp1 - Iraq's dinar will not (and cannot) LOP.

fs747623 wrote:PLEASE, DON"T EVEN SAY SUCH A THING AS LOP! DOESN"T MAKE ANY PROGRESS FOR IRAQ. NO LOP!

Please educate yourself on exactly how a LOP works. Here is a link to a fantastic booklet on the Turkish LOP by Price Waterhouse Coopers. Don’t bury your heads, it’s better to educate yourself to understand what may happen and how/why.

Link to PWC http://www.pwc.com/en_TR/tr/assets/ins-sol/publ/ytl_eng.pdf

Simple answer;

The US, IMF and World Bank is overseeing the entire process. Was the $1000 note for US currency worth $10 when they eliminated (dropped 3 zeros) from Us currency. Answer - NO So, neither will the 1000 dinar note be worth 10 dinar.....!

2kidskinds, please read that report again. Turkey was 8.6 in 2004 and Romania was 11.9 in 2004 (pretty close to single digit if you ask me). This was BEFORE they redominated in 2005. As I stated in my comment, MANY countries bring the inflation low then redom, I didnt say ALL, did I?

There are many reports out there on why and how redominations work. I cant post links because I am too new so sorry on that. But they basically will redominate in order to bring their currency in line with inflation and pricing, which would be the case here. They have low inflation and prices dont match that. A can of sods shouldnt be 10k dinar, it should be a buck, and thats all a redom does. It doesnt change anything more than an accounting issue. Read all the articles, its pointing more and more to that vs a reval.... Not that I want that but it seems to be the case if you ask me.

PS, never say it CANT unless you want to guarantee it to anyone.

(Added after) This is a DIRECT quote from the Pricewater link the poster above put in for the Turkey Redom:

A decline to single digits in the annual inflation rates was awaited before simplifying the Turkish currency by removing 6 zeroes. Finally, through enactment of the Law Numbered 5083 Concerning the Currency of the Republic of Turkey in the Official Gazette dated 30 January 2004, New Turkish Lira (“YTL”) and the New Kuruş (“YKr”) have been introduced as the currency of the Republic of Turkey as of 1 January 2005. The provisions of the Law No.5083 about circulation of banknotes, conversion and application principles are effective as of 31 January 2004 and the remaining provisions come into force as of 1 January 2005.

LOP is a four letter word.LOL!!!!

Hello therealbutterfly . I'm sorry that it took so long for me to respond to your post.

therealbutterfly wrote:2kidskinds, please read that report again. Turkey was 8.6 in 2004 and Romania was 11.9 in 2004 (pretty close to single digit if you ask me). This was BEFORE they redenominated in 2005. As I stated in my comment, MANY countries bring the inflation low then redom, I didn't say ALL, did I?

Thank you. I was wrong and I appreciate the correction. At your suggestion I did look at the report again. I was able to understand my error after I added several more countries and expanded the range of years (link to the revised report). My "documented facts" were correct – my interpretation of those facts was wrong. Again, thank you.

therealbutterfly wrote:There are many reports out there on why and how redenominations work … they basically will redenominate in order to bring their currency in line with inflation and pricing, which would be the case here. They have low inflation and prices don't match that. A can of sods shouldn't be 10k dinar, it should be a buck, and that's all a redom does. It doesn't change anything more than an accounting issue. Read all the articles, its pointing more and more to that vs. a reval .... Not that I want that but it seems to be the case if you ask me.

I do understand what you're saying. To quote Wikipedia, "Redenomination: a new unit replaces the old unit with a fixed number of old units being converted to 1 new unit … the procedure can be referred to as 'cutting zeroes' " (Wikipedia link). However, this is not what many (if not most, IMO) dinarians have accepted as the definition of redenomination. For many, redenomination is simply the issuance of the new lower denominations and has nothing to do with a reduction in the face value of the dinar – that would be included in the definition of the term LOP. IMO, the reason for this inconsistency is that none of the commonly used dinarian words accurately conveys what is being (or will be) done. These include, revaluate, reinstate, LOP, and redenominate (in one form or another, i.e., revaluation or reinstatement). None of these describes the circulation of previously unused denominations to be used and to coexist with the current denominations which would retain their value. Even though the existing denoms are being withdrawn from circulation, their value remains unchanged: a 1,000 dinar note will equal 1,000 new 1 dinar notes, as opposed to a 1,000 dinar note being equal to a new 1 dinar note. (To avoid controversy, I should add IMO.)

As this is all the time that I have to respond, I’ll end with a quote from another website (cutting & pasting is fast). “An article was released saying they started this process last week. If you want to prove a particular point of view you can always find an article to support it. Just like if you want to prove a particular religious position you can always find a scripture to prove it. Same thing." (I know - I've done it) "If you want to … prove the process hasn't started yet, well, there's an article out there if you look hard enough. Find it, then post it. If you want to prove it started last week, there's an article out there, find it, post it. Done!!”

Although a lop is not off the table for Iraq, there are many things that exist that were NOT prevalent in Turkey nor Romania, things such as;

1) extremely high wealth (oil)
2) Iraq needs to rebuild country...FAST
3) contracts already agreed to require currency of value, not worthless
4) to meet the existing budget passed by parliament requires $3+ US
5) the US is a main player and needs/wants the highest possible Iraq RV

Shall I go on. Personally, I see no place for a lop in the plan for Iraq.

globalbiz wrote:Although a lop is not off the table for Iraq, there are many things that exist that were NOT prevalent in Turkey nor Romania, things such as;

1) extremely high wealth (oil)
2) Iraq needs to rebuild country...FAST
3) contracts already agreed to require currency of value, not worthless
4) to meet the existing budget passed by parliament requires $3+ US
5) the US is a main player and needs/wants the highest possible Iraq RV

Shall I go on. Personally, I see no place for a lop in the plan for Iraq.

I agree with you on the fact Iraq is a very wealthy country in resources. But the other points really are irrelevant if they actually "lop". Just mainly because with a redom, it technically raises the value per dinar. Ie a new 1 dinar is worth 86 cents (pretty close to a 1:1 ratio). So the contracts written, will be adjusted. They dont lose anything, instead of trillions of dinar paid for that contract, its now billions. No biggie. Even steven.

Rebuilding is going on now with a value of 1170. So that is a moot point.

Budget? Does it say they have to balance the budget? The budget is mainly based off oil, and every year they have had a surplus. And again, instead of being in trillions, it will be stated in billions, again, no biggie.

And as far as the US, sure WE want and need the highest rate, but since when is this about us? Its what is best for IRAQ and to make them a stable, viable country again. THAT is what is best for us and for them. ANd when I say 'us" I mean the USA, not just us dinar holders.

Oh and even tho you didnt say it, just because shabs said the dinar will be back to the strength it was pre war, he didnt say immediately. But redom/lop would give it close to a 1:1 starting point. Its an easy way to transition for the people to new pricing and new notes which seems to be a major concern for the govt. making their people understand they arent losing anything with the changeover.

Just saying......I personally dont WANT the above scenario to happen but so far, no one can prove to me it wont. And with all of the articles since 2006, the Iraqis seem to make it clear that is their intent. :(

therealbutterfly wrote:

globalbiz wrote:Although a lop is not off the table for Iraq, there are many things that exist that were NOT prevalent in Turkey nor Romania, things such as;

1) extremely high wealth (oil)
2) Iraq needs to rebuild country...FAST
3) contracts already agreed to require currency of value, not worthless
4) to meet the existing budget passed by parliament requires $3+ US
5) the US is a main player and needs/wants the highest possible Iraq RV

Shall I go on. Personally, I see no place for a lop in the plan for Iraq.

I agree with you on the fact Iraq is a very wealthy country in resources. But the other points really are irrelevant if they actually "lop". Just mainly because with a redom, it technically raises the value per dinar. Ie a new 1 dinar is worth 86 cents (pretty close to a 1:1 ratio). So the contracts written, will be adjusted. They dont lose anything, instead of trillions of dinar paid for that contract, its now billions. No biggie. Even steven.

Rebuilding is going on now with a value of 1170. So that is a moot point.

Budget? Does it say they have to balance the budget? The budget is mainly based off oil, and every year they have had a surplus. And again, instead of being in trillions, it will be stated in billions, again, no biggie.

And as far as the US, sure WE want and need the highest rate, but since when is this about us? Its what is best for IRAQ and to make them a stable, viable country again. THAT is what is best for us and for them. ANd when I say 'us" I mean the USA, not just us dinar holders.

Oh and even tho you didnt say it, just because shabs said the dinar will be back to the strength it was pre war, he didnt say immediately. But redom/lop would give it close to a 1:1 starting point. Its an easy way to transition for the people to new pricing and new notes which seems to be a major concern for the govt. making their people understand they arent losing anything with the changeover.

Just saying......I personally dont WANT the above scenario to happen but so far, no one can prove to me it wont. And with all of the articles since 2006, the Iraqis seem to make it clear that is their intent. :(

Sadly this is how I am interpreting all of it too...It is about the economy for Iraq and if this was our country we would want our govt to do the best for us and not some other country in the wings wanting to make big bucks off us....Just being realistic at this point in the game.