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Asset Back/Fiat Currency Discussions from TNT DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Asset Back/Fiat Currency Discussions from TNT

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Asset Back/Fiat Currency Discussions from TNT Empty Asset Back/Fiat Currency Discussions from TNT

Post by Ssmith on Fri Sep 18, 2015 11:09 am

Exchanging Your Currencies...Will it be into the current Fiat value (1 IQD = ~4 USD) or Asset backed (1 IQD = 1 USD)


bclarkutah
There has been very lively and often intense discussion in recent nights on a certain call relating to the possibility of the RV occurring with exchanges being made into the new asset backed USD rather than the current fiat USD. Should that happen the exchange numbers will be different. That is to say that rather than getting a exchange of $3.91 per 1 IQD the rate would be 1 to 1. The consensus is that the actual "value" of the exchange will be more or less the same. This would be due to the fact that an asset backed (say by gold) has more buying power than the fiat USD. That is a $10 asset backed bill could be equivalent to $40 or more of our current dollars.
The exchange values are the same but the numbers are different. With the potential of inflation and economic instability in the future as the world adjusts it may also be incumbent to invest wisely in hard assets and other currencies that are already asset backed.
As I said it is an interesting conversation. Please add your thoughts to the conversation and feel free to correct my interpretation.


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sbg

So we would give up our asset backed currency $10.00 for $10.00 of gas while everyone else gets the same gas with their $10.00 fiat currency? NOT! NOT!

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Dmusic
Goes against everything this GCR is supposed to do. If they are asset backed their Dinar will still be $3.91 and we hold their currency.
Ergo we get $3.91 per converted into USD. Also that would take a lot of doing with previous exchanges being changed and a lot of $$$ going back to the banks. Don't think so. Where is the logic? Im Just saying.

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bclarkutah
The asset backing in Iraq is true but you are believing the dinar in Iraq will be worth $3.91 for the Iraqi public. That is not the case in Iraq when exchanging. My assumption is that the US currency denominations are already being replaced by the "new" bills and these bills will be used in international trade. They will be recognized as asset backed and be traded accordingly. In the case of Iraq, one to one. However, The point that was made was how to strategically hold your wealth in a variety of hard assets and accounts that will retain your wealth should there be a significant loss of value of the current fiat based USD. 
The long and short of remains that the Iraqi Dinar will be paired against many currencies. The Iraqi Dinar will always be 1 IQD = 1 IQD in Iraq but the value of the IQD vs another currency will be based upon the international value of the asset backed IQD vs the perceived "value" of the second currency. What is important to remember is the "buying power" of the other currency. An example would be that a loaf of bread purchased using today fiat USD may cost you $4. However, you may spend only $1 with an asset backed USD. So, assuming you have a 25k IQD note and exchange it for 25k USD in asset backed currency the equivalent exchange in fiat money would be 100k IQD to have the same "purchasing power".
All of this is speculation of course but I was bantered about by some pretty smart people the other might.

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menschie2
My thoughts are that our exchange will be asset backed. When we withdrawal from the bank ( ex. debit card and check etc ) will be asset back. My other other thought is if you withdraw cash it my end up as fiat. Unless when we exchange our cash from fiat to TRN's @ 1:1. If and when the US says we are asset backed. So I don't plan on have a lot of cash on hand. JMOP!

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Tndr
Dinar to USD, asset backed or not, once converted will be what it will be in buying power. You are only in control of how you exchange it and what you exchange it into and how you protect it. If you exchange it into USD it is my opinion that FRN will be backed by TRN, therefore asset backed. If not, there will not be a difference in buying power when you go to the store, etc., in my opinion. That is inflation and a different topic that cannot be applied to a choice to exchange your dinar unless you do not plan on using those funds to live on. But, if we find out the exchange is 100% asset backed then there is a bonus in place. I'm hopeful that is the case. Asset backed is many forms....so make good decisions post exchange.

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BigB
In 5+ years of following the elusive RV, I have heard many theories from all the gurus on so many sites. (Trust me, for most of that time, I was a full time dinarian! Often spending 10-15 hours daily on more sites/chat rooms than I can now count.) The only constant that still remains is that we really will not know what we need to know until it finally happens!

Many years ago, we were told that we should only exchange enough dinar to pay our debts and keep a surplus to live on for about 2 years. Maybe that theory has change with the "potential" GCR happening simultaneously with the RV. Maybe not! We just don't know - yet!

The bad thing is that we have all spent/wasted a lot of time that can never be reclaimed. The good thing is that we have learned much about a lot of things, (some totally unrelated to dinar), that have happened in the past, is currently happening, or is about to happen in the future concerning politics, economics, history and science of the world. I think we could safely say most of us have theorized every possible outcome of this RV. We just don't know the specifics - yet!

Pam has repeated many times that we all know more than we think we do. I believe she is correct!

It is only when this thing finally happens that we will have enough knowledge to apply the information that we have gained in order to make the life changing decisions that will be required of us. Only then! Until then, it is all speculation (and frustration).

And we wait....

PS: It is only because of everyone's dedication, input, and discussion that we have been able to have gained this needed knowledge. That will be the true dinarian's edge over the run of the mill investor.
Ssmith
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Asset Back/Fiat Currency Discussions from TNT Empty Re: Asset Back/Fiat Currency Discussions from TNT

Post by Kevind53 on Fri Sep 18, 2015 3:34 pm

Interesting conjecture, just one problem, there will be NO asset based currency for many reasons that have been amply discussed in the past. So since the basic premise the conversation is based upon is error, the whole discussion is as well.

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