Friday Evening Hammerman 1-13-12

CaptnJerry wrote:The Algorithm has certain anomalies (exit points) on those days....

1alaskan wrote:Simple logic

Worlds oil reserve currency?
USD

Iraq's main natual resource?
OIL

Nuff said.........

openmind wrote:Sweet Jesus! It seems that much of the intel makes its way to OOM, which is great. But it also seems that the wisdom and logic shared here at OOM doesn't work its way into other forums.

THE DINAR WILL NOT AND CAN'T BE PEGGED TO THE GREAT BRITISH POUND, THIS HAS BEEN PROVEN MANY TIMES BEFORE. THE COUNTRIES WHICH PEG TO THE GBP REPRESENT CURRENT AND FORMER BRITISH DEPENDENCIES WITH A STRONG HISTORICAL CONNECTION (LEGAL, POLITICAL, CULTURAL, AND SOCIAL) TO THE BRITISH EMPIRE.

ON THE OTHER HAND, MANY OIL EXPORTING COUNTRIES PEG TO THE DOLLAR SINCE THE PRICE OF OIL IS BASED ON THE DOLLAR.

czinser wrote:Blessings All, CZ


Friday Evening Hammerman Info Summary Posted By UFG From MIG dinarrecaps

01/13/2012 _ 5:11 01-13-12 Hammermans info summary- In his opinion rate is $5.71 plus minus 45 cents to GBP, that it looks like 60% chance for Tuesday/Wednesday and also other dates that look good are 18th, 22nd-28th. The Algorithm has certain anomalies (exit points) on those days and market conditions look good for Tuesday as GBP and Euro need to fall.

happywelshguy wrote:OpenMind, respectfully

You may have forgotten that there is a definite historical connection between Great Britain and the USA http://en.wikipedia.org/wiki/British_colonization_of_the_Americas

Also, pegging to the GBP makes good sense, as the GBP, is far more stable than that of the $USA and that's exactly what Iraq needs right now, stability of it's currency.

In 1931, Iraqs currency was also backed by the Great Britain Pound. (See below)

History

The dinar was introduced into circulation in 1932, by replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar

openmind wrote:

happywelshguy wrote:OpenMind, respectfully

You may have forgotten that there is a definite historical connection between Great Britain and the USA http://en.wikipedia.org/wiki/British_colonization_of_the_Americas

Also, pegging to the GBP makes good sense, as the GBP, is far more stable than that of the $USA and that's exactly what Iraq needs right now, stability of it's currency.

In 1931, Iraqs currency was also backed by the Great Britain Pound. (See below)

History

The dinar was introduced into circulation in 1932, by replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar

I guess I should be a little more specific. Yes, I am very well aware that the United States shares a very strong common heritage with the United Kingdom. When I refer to a dependency on the British Empire, I mean with regards to the geopolitical situation of the last 200 years, (say between Waterloo (1815) and the Present). We could look even further back in history and claim that Britannia itself was dependent on the currency issued by Rome and perhaps may want to do that again, but that wouldn't make sense, although a historical precedence exists.

I am trying to emphasize the colonial dependency of these countries on England, a legacy which continues until today in many forms; one of which is monetary. Certainly the fact that these countries are stable have to do with the stability of the GBP, which as you say, is far more stable than our dollar. But if its all about stability, why not peg to Swiss or Maltese currency?

Falkland Islands pound
Gibraltar pound
Saint Helena pound
Jersey pound
Guernsey pound
Manx pound
Scotland notes
Northern Ireland notes

In the present geopolitical climate, oil exporting countries peg their currencies to the USD, mainly because the price of oil (their most important exported commodity) is based upon the price of the dollar.

Bahraini dinar
Cuban convertible peso
Eritrean nakfa
Jordanian dinar
Lebanese pound
Omani rial
Sealand dollar
Qatari riyal
Saudi riyal
United Arab Emirates dirham
Venezuelan bolívar
(among others)


With respect to the British Mandate for Mesopotamia (1920-1932), it wasn't a true British colonization. Britain didn't dictate and alter the course of Iraqi legal, social, and political history as much as they did in other countries where they were true colonists. So when I marginalize the true influence of British colonialism on Iraq, that is my main reason. The British were basically there to manage oil wealth gained from defeating the Ottomans in WWI. At that time of the mandate, the British were perhaps the most powerful country on the planet. Britain's ability to project power was more efficient than any other nation's. Thus, the strong British Indian Rupee was used in Iraq after the fall of the Ottomans. Furthermore, strong merchant ties existed between Iraq and British India, so it makes sense that such a monetary policy was adopted. Additionally, many Baghdadi Jews had started banking and financial institutions in Baghdad and Bombay, linking the two British Dependencies financially, even before the Ottomans fell.

As you point out, in 1932 the Iraqi Dinar was introduced and pegged to the GPB. 1932 is seen as the year Iraq gained independence from the UK after a 12 year occupation. Then as you also point out, in 1959 the IQD was pegged to the USD. This is because of what was going to happen the next year, in 1960. OPEC, the Organization of Petroleum Exporting Countries was founded in 1960. Around this time many oil countries began pegging their currencies to the USD. Kuwait did so in 1961, replacing the Gulf Rupee with the Kuwaiti Dinar.

Thus the IQD won't be pegged to the GBP. It may be pegged to the USD. IMO!

happywelshguy wrote:That's a very long, detailed post and I thank you for your effort.

We will have to agree to disagree, as I believe that the Dinar will be pegged to the British Pound.

Time will provide the correct answer.