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The Lop Thread

+13
greenlight
Inquisitive one
raidernick
roadkingrider
therealbutterfly
CaptnJerry
Kevind53
lexknight
sono
DTConcerned
Terbo56
LookingAtTheHeavens
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Post by CaptnJerry Fri Feb 10, 2012 6:13 pm

Inquisitive one wrote: :farao: But if you deposit the 3-0 currency into an account it becomes digital, right? scratch

Yes. If you open a foreign currency account and deposit 1 million dinar (1,000,000.00) and say Iraq Re-Denominates before they RV your account balance would read 1 thousand dinar (1,000.00)...

Again, that is if it Re-Denominates first...

CJ

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Post by therealbutterfly Fri Feb 10, 2012 6:13 pm

Inquisitive one wrote: :farao: But if you deposit the 3-0 currency into an account it becomes digital, right? scratch

Correct, and as Raidernick and CJ said, it will convert when you take it out. So if you deposited 25,000 dinar, you will take out a 25 dinar after a redenomination.

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Post by DTConcerned Fri Feb 10, 2012 6:47 pm

raidernick wrote:So is Dr. Shabibi a paid LOP pumper since has stated himself that the CBI has decided that there will be a redenomination (LOP) of the currency at some point. In its simplest form a redenomination is done to strengthen a currency’s prestige against other currency and to simplify accounting transactions for the people and the government. To make a statement that presenting a position with regards to a potential LOP indicts someone as a paid pumper show a complete lack of understand of the subject matter. And to call individuals out as they have been in this thread and the action endorsed and encouraged by a moderator as it has just been done (see above) is inexcusable as per the rules set down by this forum. You can’t have it both ways.

It will eventually redenominated, the only question is will there be a change to the exchange rate before that happens?

I did not single anyone out and accuse them of anything. If you read back, you will also find it stated and agreed to that redinomination does not equal LOP, so nothing I said would indicate or implicate Shabibi as a LOP'er. However the letter of intent from the CBI website that states the currency will revalue, does indicate that that is the plan of CBI, A personnalized opinion post and translation written by one person used as a supporting document for that one persons opinion however is a circular reference. I also clearly pointed out with my initial post on this subject I am expressing my opinion, and pointed out the resources that support that opinion. We will see when things are done what exactly happens, and I hope until then, nobody blindly follows either side of any opinion posted out here, but does their own homework and looks at the real source documents and makes their decisions based on their own work.
Very serious on this point, why would anyone buy the 250 dinar notes from a trader if there was a LOP and then an RV, they would still be losing money unless it came in over $4. This is all a speculative risk, but why would anyone buy into an almost guaranteed loss?
Yes, anything is possible with this speculative investment, the region is unstable and the country could be wiped out before they get started, but everyone with Dinar is betting against that.
And to be perfectly clear, just because there are indicators that Dinar seller have reason to pay people to pump a particular brand of information to boost their sales does not mean everyone that follows that trail of thought is getting paid and IF I question the possibility that it is happening is there a reason any one in particular should take personal offense to it?

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Post by CaptnJerry Fri Feb 10, 2012 8:41 pm

roadkingrider wrote:Iraq: Letter of Intent, "Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding”

http://www.imf.org/e…/irq/030311.pdf

1.Progress has been made in moving toward accepting the obligations of Article VIII, Sections 2(a), 3, and 4, of the IMF’s Articles of Agreement. We have worked with IMF staff to complete the review of exchange laws and regulations and are considering measures to remove the identified exchange restrictions on current international transactions. We remain committed to avoid imposing any restrictions on the making of payments and transfers for current international transactions or introducing any multiple currency practices.

2. A critical step will be to complete the financial restructuring of the two largest stateowned banks, Rafidain and Rasheed, based on their completed financial and operational audits. In this regard, we formed a Bank Reconciliation Unit that comprises technical level staff from the banks, the CBI and the Ministry of Finance, and with the assistance of Ernst and Young (who were the agents of the Ministry of Finance in the external debt restructuring process) to: (i) deal with all legacy external liabilities taking into account the government’s actions in the context of Iraq’s external debt restructuring (ii) indentify and propose to write-off non-performing loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. The BRU will work under the supervision of the Restructuring Oversight Committee (ROC), consisting of the Minister of Finance, the Governor of the CBI, and the Chairman of the BSA. The BRU will send its recommendations for final approval to the respective boards of the two banks. Through this process, we aim to complete the restructuring of the balance sheets of Rafidain and Rasheed by end-June 2011 (a structural benchmark).


3. The CBI will continue to strengthen the management of its international reserves in line with the adopted reserves management guidelines. The CBI will follow the guidelines to diversify currency composition and establish an appropriate duration and credit risk profile, and build capacity for risk analysis. We will continue to provide monthly reports to the CBI board (and to the IMF) based on the investment criteria established in the guidelines.

That looks great out of context... When you read it as a whole it has nothing to do with the commitment/guarantee to RV! Here it is in context...

CJ


Last edited by CaptnJerry on Fri Feb 10, 2012 8:53 pm; edited 1 time in total

*****************
Inspired by Splovengates "Be ready between sunday and monday night, or maybe tuesday or wednesday, could also be thursday but definitely by friday.... probably next week, monday or late tuesday night, wednesday morning to hear the rv and should be cashing in on the following tuesday the 1st part of january or february. Sooner more than later. But no later than the beginning of 2013. Certainly not before then. Until then, let's enjoy the ride!


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Post by greenlight Fri Feb 10, 2012 8:43 pm

Reading over all the postings I can see three things not right.
First, as the LOP is being defined, I know of no one that believes a LOP will actually occur.
Second, the question as to why someone would buy 250 notes if they are at an immediate loss unless it goes to 4 USD is a senseless question. You could ask the same question of anything people buy. Why would someone pay 4 times the value for a car, for instance. Because someone led them to believe they would one day be able to sell it and recover more than what they paid for it. Just because someone decides to pay 4 times the value of a 250 note does not necessitate a selling value someday of more than that.
And thirdly... In all the postings in this thread, and directly related to why no one believes in a LOP as is defined in this thread, no one had actually stated what the dreaded term LOP actually means. I know that TRB, CJ and perhaps 1 or 2 more know what it is.
It is actually quite simple.
The decimal is moved to the left 3 positions on all current currency and that is the value exchanged for the new currency. IE:25,000 = 25 new dinar note.
At the same time, the decimal is moved to the right on the exchange rate. IE: .00086 will become .86 for the new 25 note (and all of the new currency that is to replace all of the old currency). This is how the economy will hardly feel even the slightest ripple. No one loses a dime and no one gains a dime.
Now, as we have already experienced on Jan 19, we may have anothe RV before the RD occurs and we may have numerous RVs after the RD occurs. Only time will tell.
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Post by LookingAtTheHeavens Fri Feb 10, 2012 9:10 pm

greenlight wrote:
And thirdly... In all the postings in this thread, and directly related to why no one believes in a LOP as is defined in this thread, no one had actually stated what the dreaded term LOP actually means. I know that TRB, CJ and perhaps 1 or 2 more know what it is.
It is actually quite simple.
The decimal is moved to the left 3 positions on all current currency and that is the value exchanged for the new currency. IE:25,000 = 25 new dinar note.
At the same time, the decimal is moved to the right on the exchange rate. IE: .00086 will become .86 for the new 25 note (and all of the new currency that is to replace all of the old currency). This is how the economy will hardly feel even the slightest ripple. No one loses a dime and no one gains a dime.

Actually, all of us are acutely aware that what you just posted is a lop. It is the very thing we don't agree with.
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Post by Kevind53 Fri Feb 10, 2012 11:09 pm

raidernick wrote:So is Dr. Shabibi a paid LOP pumper since has stated himself that the CBI has decided that there will be a redenomination (LOP) of the currency at some point. In its simplest form a redenomination is done to strengthen a currency’s prestige against other currency and to simplify accounting transactions for the people and the government. To make a statement that presenting a position with regards to a potential LOP indicts someone as a paid pumper show a complete lack of understand of the subject matter. And to call individuals out as they have been in this thread and the action endorsed and encouraged by a moderator as it has just been done (see above) is inexcusable as per the rules set down by this forum. You can’t have it both ways.

It will eventually redenominated, the only question is will there be a change to the exchange rate before that happens?

For clarity's sake, since I assume you were referring to me, I was speaking very specifically of roadkingrider's post immediately above mine, good solid fact based material. Solid source material suitable for research. There is a lot there, and I had a bust evening, but hopefully I will get to reading through it all in more detail later. Other than that a reasonably civil and good discussion of differing viewpoints regarding the RV-RD debate. Personally I did not see anyone "called out," at least not to the point that we as moderators needed to step in.

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Post by Kevind53 Fri Feb 10, 2012 11:20 pm

greenlight wrote:No one loses a dime and no one gains a dime.
Now, as we have already experienced on Jan 19, we may have anothe RV before the RD occurs and we may have numerous RVs after the RD occurs. Only time will tell.

Exactly why I do not buy into a straight LOP theory. I agree there will be a RD AND a RV. However any RD without a RV will not accomplish their stated goals of improving their avg per capita income, moving their people out of poverty, and improving their living conditions. They need to make their income comparable to other ME countries, and they are nowhere near that ... they can LOP their silly heads of and still not be anywhere near that, an RV to place the Dinar where is should be, instead of it's artificially reduced value now. It needs to return to some reasonable value. I'm not sure if that will be par with the USD or 3 something, there are compelling arguments either way, so we'll just have to see ... only time will tell. The higher numbers ... well I would be surprised if we see anything significantly over 3 or at the outside 4 dollars, pleasantly surprised, but surprised none the less.

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Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

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Post by CaptnJerry Fri Feb 10, 2012 11:42 pm

Kevin, once they pass the Erbil and the other profit sharing laws, the per capita income will change, moving their people out of poverty, and improving their living conditions. It will be a drastic improvement or current conditions...

CJ

*****************
Inspired by Splovengates "Be ready between sunday and monday night, or maybe tuesday or wednesday, could also be thursday but definitely by friday.... probably next week, monday or late tuesday night, wednesday morning to hear the rv and should be cashing in on the following tuesday the 1st part of january or february. Sooner more than later. But no later than the beginning of 2013. Certainly not before then. Until then, let's enjoy the ride!


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Post by dinarstar Fri Feb 10, 2012 11:45 pm

greenlight wrote:

And thirdly... In all the postings in this thread, and directly related to why no one believes in a LOP as is defined in this thread, no one had actually stated what the dreaded term LOP actually means. I know that TRB, CJ and perhaps 1 or 2 more know what it is.
It is actually quite simple.
The decimal is moved to the left 3 positions on all current currency and that is the value exchanged for the new currency. IE:25,000 = 25 new dinar note.
At the same time, the decimal is moved to the right on the exchange rate. IE: .00086 will become .86 for the new 25 note (and all of the new currency that is to replace all of the old currency). This is how the economy will hardly feel even the slightest ripple. No one loses a dime and no one gains a dime.


...and THEN they RV Wink Wink

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Post by Kevind53 Fri Feb 10, 2012 11:56 pm

CaptnJerry wrote:Kevin, once they pass the Erbil and the other profit sharing laws, the per capita income will change, moving their people out of poverty, and improving their living conditions. It will be a drastic improvement or current conditions...

CJ

The Erbil etc are key, but it's not going to happen with the value of the dinar where it is, or equivalent to it. There needs to be a significant change in the value IMO for there to be significant change. Right now, their per capita income in USD is less than 1/2 of Jordan's, and Jordan has zip for resources in comparison. It's about 1/8th that of Saudi Arabia, and less than 1/20th of Kuwait's which may well be the closest comparable. Unless they issue wheelbarrows for people to carry their dinar around, it has to both RD and RV.

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Post by LookingAtTheHeavens Sat Feb 11, 2012 12:29 am

So the 100k I got for $220 will be worth maybe $300? Sweet! Rolling Eyes
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Post by roadkingrider Sat Feb 11, 2012 5:57 am











I borrowed this from Kaperoni's website and this is his opinion only, but it makes sense for them to do it this way.




I decided to make a transition chart as many cannot understand what "delete 3 zeros" really means. This is just my view and opinion and not exact. It is based on what i know from articles, audio tapes and documents over the past few years. As you will see, the CBI is transitioning from a larger set of currency (3 zero notes) to a smaller set of notes. This is titled..Delete 3 Zeros.


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Post by roadkingrider Sat Feb 11, 2012 6:08 am

The Halloween Candy Dilemma! Don't let the title scare you away ! This is a Long & Good Read !!

My siblings and I would sit on the carpet and dump our pillow cases full of Halloween candy in piles in front of us. What happened next made the Lord of The Flies kids seem gentle...

Kids trading candy is a serious event. After all, this was pretty much all there was till Easter... and that was mostly just jelly beans so we had to weigh our trade options heavily.

I wanted Malted Milk Balls. My brothers wanted Three Musketeers, and we all tried to buy points with mom by saving her a few Snickers. Somehow dad got left out, but as a dad I can tell you he probably sneaked whatever he wanted!

As focused as we were, it really boiled down to this: when my siblings were out of the candy I wanted... the trading was over for me. Why?

Well its the same reason you don't go to a KIA dealer to buy a Ferrari. They won't have what you want, and no amount of trading is going to make you feel any better.

Iraq's budget discussions provide us a great deal of information. Basically, it is one of the easiest times to see what candy they have and learn what candy they want.

But there are arguments about whether or not the figures lead to the RV rate. Look back and remember your Halloween stash and consider this:

No matter what Iraq says that they want, they really only have one kind of candy to offer. Oil. They estimate how much they can produce, and they estimate the cost per barrel.

When all of the oil is pumped out that year, it has already been sold. When you have traded away your good candy all that is left to trade with is popcorn balls from the old couple down the street.

They can't just say, oh this year we will produce 30% more oil and the cost will be 30% higher per barrel! The good news for them is that everyone sitting around them likes their candy... a lot!

They can get a lot of different kinds of candy this year if they get theirs cheap (they do) and trade it high (they do). But once all the barrels of oil available this year are accounted for, Iraq is out of candy.

So Iraq... what can you get for your oil. Can you get a welfare program for the elderly? Can you get free university education for every student?

Can you get electricity in rural areas and internet and cars and televisions? Can you get someone to start ranching cattle or processing chickens? Can you get cell phones?

Can you get someone to protect your pile of candy while you go to the bathroom? I ask this because the answers are YES.

Iraq wants everything that represents growth and opportunity and wealth. The question is, so which of these things do you choose. We can read what you want and we are all willing to trade, but what are you going to do when you are out of candy?

This is critical to understand. They can't do ANYTHING when the goods are gone. Why?

Well unlike the good old U.S.A. (and almost every other country on earth), they can't print more candy!

When we need a little extra to keep things running smoothly we print USD. WE can budget anything. A trip to the moon if we want. Literally anything.

Poor little Iraq though needs to make sure they get what is important first, and then get as much as they can extra, because when they are out of candy they can't go to the CBI and say, "Print us some more". To not take this into account is a huge oversight.

The reality of a fixed rate economy really does determine everything... and possibly even the RV rate. I have read two different views regarding the estimated (budgeted) oil supplies and revenue compared to the budget they are arguing about right now.

Camp (A) says take estimates for oil value in Dinar and you will see the budget is asking for 20 trillion Dinar MORE then they estimate they can possibly get for the candy they plan on collecting this year! That means the current budget is about $17.1 Billion USD short.

Oops. Iraq needs more candy! Since Iraq can't get more candy, Camp A believes Iraq has to Revalue their currency to adjust for the amount short. OK. lets see. Iraq needs 17.1 billion USD... that means EACH Dinar ever printed MUST increase in value by $.0005698 each.

The good part of this scenario is that it accurately accounts for REVENUE VS Expenses, which after all is what a budget does.

Camp (A) also says that the budget shortfall of 17.1 Billion USD will be met using their reserves (Nearly 60 billion USD now). But the CBI keeps saying, "Get your own dang candy... leave mine alone!

I don't think the CBI is going to cover the shortfall with reserves! (Furthermore, if they DO decide to use the Dinar in reserves, it just decreases the available dinar for next years budget... remember, they can't print more!)

Somehow, in this scenario the 17.1 billion USD needed to meet the budget has to magically appear. (Don't say loans... remember they have to be repaid and we have already accounted for all 30 trillion dinar.)

Camp (B) says there is a 115 Trillion Dinar budget and currently they have only printed 30 Trillion Dinar. They are going to have to come up with 90 trillion Dinar!

Then they say, "Divide the 115 T needed by the 30 trillion printed and you get 3.83... OK, everything looks good so far, but the problem comes when they say, "that means each dinar must be worth $3.83 USD for them to meet their budget! Yippeee!

" Well actually it only means that each dinar ever printed must become worth 3.83 TIMES its current value. You can take the current rate 1170, and divide it by three and you get 390 Dinar/USD.

Or you can take the dollar value of $.0008547 and multiply it by three to get $.0025641 USD/Dinar It works out to the same result... you get the value of Iraq's candy.

It is $2,564 USD per million Dinar. Regardless, not all of the 30 trillion printed is available to use!

And that is actually a problem with both scenarios. Iraq has already traded most of its candy! They can't reach in some poor guys pile and take out a Snickers from the teacher, and a few M&M's from the cabby and some Licorice from the butcher.

Are you going to give Iraq your 25,000 IQD note to help them cover their budget shortfalls? I didn't think so.

Some people are assuming that Iraq will be able to pay its bills with the currency printed... but they fail to account for the candy that has already been traded!

Yes, they collected it (printed it) but they don't own it anymore! They traded it for wheat, rice, combines, and telephone poles. somebody else owns that candy now so Camp (B)'s math is way off.

When we look at the projected budget we can see that Iraq is committing to an unheard of increase in GDP. No country ever just randomly tells the world that even though we don't have the currency to cover it, and our GDP will not currently cover it, we are still going to present a budget nearly 4 times larger than our estimated GDP!

It isn't a very well hid secret then that Iraqi politicians believe as we do. The artificial rate is too low, Iraq needs to buy more stuff and right now, we can easily see that Iraq is missing some candy. Since they can't just print more, their options are limited.

We are hoping the RV option is the one they choose.

So which camp is right? What is the rate based on the budget?

Well, actually they are both wrong. Well as you can see, each "accounting method" lacks something. The most important fact is that Iraq is going to have to start (soon) setting a budget based upon expected GDP revenues and staying within the budget.

The value of the dinar is going to have to be set to represent the estimated value of GDP, and the open market will adjust it higher if they produce more, and will drop it if they fail to meet production goals.

Developing agriculture here is like hiring a kid to trick or treat with you so you can get more candy. But it is true with almost any non-oil related business development projects they push forward. Every time you read a story about Iraq finding additional sources of income, that is worth celebrating!

We can be pretty confident that right now Iraq is not planning on using the IQD to meet budget! That means RV. (By the way it also means no LOP.

You aren't going to get away with cutting your candy bars in three and telling your sister that each piece is now worth 1 whole candy bar!

We aren't talking about accounting here, we are talking about their inability to meet the budget without something increasing the value of their candy pile.

To say LOP focuses on the importance of easier accounting, (which they need) but totally ignores the fact that post LOP they STILL WON'T HAVE ENOUGH CANDY!)

They are planning on telling the world that "now that mom left the room, all bets are off. My Snickers bars represent three of your Baby Ruth Bars.

" But they can still only make deals with the candy they have in their pile (reserves) or make deals based upon the candy they hope to get next year. (Or they can just adjust the budget down!)

But trying to guess the rate based on the estimated USD value required to cover the budget shortfall is inaccurate.

Unfortunately though neither scenario allows us to accurately determine the rate. We know they are short. We know what they have. We know what they want, and right now we even know what they think they will have next year.

The answer is going to be that Iraq RV's to increase the value of their candy pile. They are going to meet the budget.

They are going to remove old and hard to account for notes, and they are going to protect the price of oil by holding US Dollars in reserve. When oil goes down, Iraq sells more. When oil goes up, Iraq makes more but sells less.

They can't undersell the world and they can't overcharge anyone. They will correct the accounting nightmare and will add new bills, but neither of these actions determine the rate.

And finally don't forget... once the initial rate is determined, the worldwide market will correct it instantly! FOREX will show demand and the rate will increase or they will notice little demand and the price will drop.

That means it will be highly unlikely that the rate stated is the rate we get. Personally I think it is going higher, but do not go by what I am saying, I am just throwing a wild guess out there!

Smarter people have touched on this subject, see what they recommend and do what is best for you!

Be blessed

Space Cowboy

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Post by MiddleClassMaiden Sat Feb 11, 2012 7:30 am

NEWS FLASH! Here's a proven way to cut through all the 'red tape' and other stuff... REAL QUICK!
WORLDS BIGGEST/FASTEST CHAIN SAW With V8 Engine/300 horsepower - https://www.youtube.com/watch?v=brfKKehFtmw
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Post by fang2 Sat Feb 11, 2012 8:17 am

MiddleClassMaiden wrote:NEWS FLASH! Here's a proven way to cut through all the 'red tape' and other stuff... REAL QUICK!
WORLDS BIGGEST/FASTEST CHAIN SAW With V8 Engine/300 horsepower - https://www.youtube.com/watch?v=brfKKehFtmw

You win, you have beat them all out. ☀
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Post by Kevind53 Sat Feb 11, 2012 9:30 am

In case anyone is wondering "What happened to that post?" it was removed for linking to a non approved intel provider. please read http://dinardaily.forumotion.com/t17707-who-can-be-posted-on-oom#121718 repeated violation is considered a bannable offense.

*****************
Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

 The Lop Thread - Page 2 2805820865  The Lop Thread - Page 2 2805820865  The Lop Thread - Page 2 2805820865  The Lop Thread - Page 2 2805820865
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Post by roadkingrider Sat Feb 11, 2012 3:35 pm

http://dinaralert.webs.com/apps/forums/topics/show/6870326-10-reasons-why-the-iqd-will-not-lop

10 reasons why the IQD will not LOP


1. Monetary policy was a success talking inflation from 35% or higher to around 7% currently.


2. Any type of currency devaluation (LOP) is considered a failure of monetary policy. Dr. Shabibi has not failed.


3. Lesser value notes in circulation such as 50, 250, 500. Devaluing the larger 3 zero notes would make them worth less than these lesser notes.


4. Iraq wants the dinar to be an international reserve currency. Cannot devalue the notes in reserve (25,000), circulate them as payment, or traded amongst countries.


5. Iraq holds arguable the second largest oil reserves and is mineral rich. They are too wealthy to not honor the value stated on the notes.


6. Iraq has stated..They want the “strongest currency in the Middle East” Any such type of LOP would be a devaluation and therefore not considered strong.


7. US holds dinar as a result of funding the CBI's initial reserves. This dinar will eventually payoff the war debt.


8. One of the authors of the currency exchange plan - Assistant Professor Dr. Fadel states in his documentation, “We must emphasize the extremely important issue is that if you remove three zeroes from the currency should not affect the actual value thereof to be trading in the old currency…”


9. In 2003 when the NID was introduced at it’s initial rate, the previous currency was in essence devalued taking all wealth from the country to prevent funding of terrorism. Raising the currencies value will in essence, return that wealth now that the GOI is stable and economic conditions have improved.


10. The CBI has stated “both currencies will co-exist” and the process will not change the “monetary value” of the dinar.

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Post by greenlight Sat Feb 11, 2012 3:48 pm

The candy story is a bit odd. Nice details, but in the end the exchange rate of the dinar has very little to do with how much revenue is taken in to support the 2012 budget of 100 billion USD. Revenue intake determines if they are Able to meet their budget or have a budget shortfall or surplus.
As for the candy part and how it can be used to see what will happen with the currency, think of it this way:
On the left you have one very large Baby Ruth. On the right you have 1166 very small Butterfingers. Each butterfinger is equal to .00086 of the Baby Ruth bar.
What will occur is they will take all 1166 Butterfinger bars and melt them down into a single very large Butterfinger bar that is 1166 times larger than the original Butterfinger bar. Now that new Butterfinger bar is now equal to that one very large Baby Ruth.
They could very well do that if they intend to make the dinar equial to the dollar.
They also could take only 1000 of those Butterfinger bars and melt them down to create a single large Butterfinger bar that would then be equal to .86 of the Baby Ruth bar. Thatys more in line with what they have stated.
Now if they revalue prior to doing the above, obviously those numbers would be adjusted. For instance if they revalued to .001 then the above 1166 would change to 1000 and each Butterfinger would be equal to 1/1000 of that Baby Ruth.


Last edited by greenlight on Sat Feb 11, 2012 4:11 pm; edited 1 time in total
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Post by greenlight Sat Feb 11, 2012 4:08 pm

Regarding the 10 reasons above...
1. No one ever RDs unless they first get inflation under control.
2. An RD does not change the spending power or net worth of the holder. There is zero devaluation with an RD.
3. An RD affects all notes, not just those with a face value that base 3 zeros. That's the fallacy of the one who do not understand. All notes will be RDd.
4. Again.. There is zero devaluation with an RD.
5. An RD of the currency has zero immediate affect on the net worth of the currency. Iraq's ability to honor the value of their dinar will not change or be affected one bit.
6 one again... There is no devaluation of the currency with the dinar. In fact, by RDing the currency you DO make it much stronger and will have a better ability to rise in value than currently.
7. May be or may not be. No one has yet to provide any proof that the US is holding significant dinar for the purpose of paying for anything. If they do then that net worth will not change one single dime with an RD
8. Absolutely true and will be a fact with an RD of the currency. There will be no change in the net worth of any dinar holder of old currency versus new currency's in the exchange.
9. Saddam arbitrarily had the dinar at an invalidly high rate. That dinar was made invalid for commerce and the new currency was adjusted to be what it should realistically have been. Over time it rose and fell as its value changed in realistic terms.
They haver repeated stated that an RD will put the dinar in a better state and strength to be able to rise in value to a projected hopeful rate of around 3.21
10. Absolutely true. The old and new currency will coexist and the holder of each will not have their net worth changed at all.

So, in the end, only 8 and 10 have any validity to them. All the rest seems to be predicated of the false notion that an RD will somehow devalue their currency. When the basis is so wrong as this, anything built on that basis must by necessity also be wrong.
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Post by zonepirate Sun Feb 12, 2012 3:36 pm

sono wrote:The Lop Thread - Page 2 437791839 Can you explain in a nutshell for all of us novice's out here just what the LOP theory is? I would greatly appreciate not having to hash through all of the threads for the the education...thank you very much for all of your help!

Go read this http://dinardaily.forumotion.com/t17481-re-denomination-a-very-real-possibility-and-it-s-nothing-to-be-afraid-of

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