Article from the NY Federal Reserve regarding LOP or devaluation of currency.

by ibcraig0 Wed Feb 22, 2012 12:51 pm

This article comes from the NY Federal Reserve.

http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

Lets look at a few key points.

Under What Circumstances Might a Country Devalue?
When a government devalues its currency, it is often because the interaction of market forces and policy decisions has made the currency's fixed exchange rate untenable. In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate. When a country is unable or unwilling to do so, then it must devalue its currency to a level that it is able and willing to support with its foreign exchange reserves.

One of the things the CBI seems to be very proud of is that their foreign reserves are the highest in the history of the country so this point doesn’t seem to be one that would make Iraq want to devalue or LOP their currency.

A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of a devaluation. First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country's exports and decrease imports, and may therefore help to reduce the current account deficit.

Currently Iraq has no products to export other than oil and they don’t want their oil exports to be cheaper they want to sell them for the same price all the other countries are selling them for. Besides that Iraq has no manufacturing right now so they have no domestic products to consume meaning that if they make imports more expensive that is going to be a huge negative for the people of Iraq.

There are other policy issues that might lead a country to change its fixed exchange rate. For example, rather than implementing unpopular fiscal spending policies, a government might try to use devaluation to boost aggregate demand in the economy in an effort to fight unemployment. Revaluation, which makes a currency more expensive, might be undertaken in an effort to reduce a current account surplus, where exports exceed imports, or to attempt to contain inflationary pressures.

(The only comment I can make here is that inflation doesn’t seem to be a huge problem right now and devaluing their currency to fight inflation when it seems to be pretty much under control doesn’t make sense.)

Effects of Devaluation
A significant danger is that by increasing the price of imports and stimulating greater demand for domestic products, devaluation can aggravate inflation. If this happens, the government may have to raise interest rates to control inflation, but at the cost of slower economic growth.

Iraq has no domestic products to speak of so why try to stimulate a greater demand for domestic products if there are none until they build their country up first? Oh and speaking of that, can they really afford slower economic growth? They want their economy to grow FAST not slower!

Another risk of devaluation is psychological. To the extent that devaluation is viewed as a sign of economic weakness, the creditworthiness of the nation may be jeopardized. Thus, devaluation may dampen investor confidence in the country's economy and hurt the country's ability to secure foreign investment.

OK, so we hear a lot of talk about how the GOI wants the people of Iraq to be confident in their country and their currency. A LOP does the exact opposite of that. Is this what they want to accomplish? I don’t think so. Oh and do they REALLY want to dampen investor confidence and hurt the country’s ability to secure foreign investment? NO, they want to encourage foreign investment, that is what they are trying to accomplish here folks!!!

Another possible consequence is a round of successive devaluations. For instance, trading partners may become concerned that a devaluation might negatively affect their own export industries. Neighboring countries might devalue their own currencies to offset the effects of their trading partner's devaluation. Such "beggar thy neighbor" policies tend to exacerbate economic difficulties by creating instability in broader financial markets.

(I don’t see Kuwait devaluing their currency, but I guess Iran or Syria might, but oil is the main product these countries have to export and this type of devaluation usually occurs with countries exporting a finished product that other countries want to import like China does with all its manufacturing which is a completley different ball game than the one Iraq is playing in.)

You can go read the whole article for yourself but reading this tells me that Iraq does not want to devalue or LOP their currency because it is counter productive to everything they are trying to do here. Go ahead and beat me up if you want, but I don’t see a LOP as doing anything but going against everything Iraq is trying to accomplish here.

by 1alaskan Wed Feb 22, 2012 1:01 pm

Thanks,

by Guest Wed Feb 22, 2012 1:25 pm

It would make no sense to me either to LOP...but I will let smarter people who know about all this to chyme in Wink

by HeadNotTheTail Wed Feb 22, 2012 1:33 pm

Thanks , I sent this to Some Lopers just trying to help them .....When did this come out ,,,Did I see this Last week , I think so and could not find the site again...so thanks for Helping

Great work ibcraig0

by IQD4US Wed Feb 22, 2012 1:36 pm

I have said before and I will say again - I do not believe (when they are talking about the LOP) that they are referring to any devaluation of dinar. I think "we" are calling it a LOP because of the change in currency.

IMHO I feel the worst case scenario is the movement of the decimal from .00086 to .86 - which for "us" is good. Maybe not as much as we were hoping, but we will make money on this investment - it's just a matter of "how much" and "when".

We can not change either of those, and our patience is wearing thin, BUT where an apple tree does not produce edible fruit in its first few years, tending will bring a tasty fruit for years to come....

by **Ponee** Wed Feb 22, 2012 1:38 pm

I am with you there on that. IQD4US... they are using terminology interchangably IMO

by therealbutterfly Wed Feb 22, 2012 2:09 pm

You are confusing terms. A redenomination aka lop is NOT a devaluation of currency. They already devalued it in 2003 with a 4000:1 ratio. A redenomination is NOT the same thing. NO value is changed in a redenomination. Its basically a big accounting change to bring the currency in line with inflation. They reigned in inflation to single digits and now they need the currency to match with lower denominations.

by zerhourwriter Wed Feb 22, 2012 2:19 pm

Yeah what I understood the term LOP to mean is this:

1: Iraq releases lower denoms (ex: 25 dinar note)

2: During the same time the dinars we have are still used in the market (ex: 25,000 dinar note)

3: The lower denoms are worth 1 USD (ex: 25 dinar note is worth 25 USD)

4: The dinars we have (ex: 25,000 dinar notes) are worth 1/1000 of the lower denoms. (ex: 25,000 dinar note is equal to the new 25 dinar note)

5: So the 25,000 dinar notes are worth 25 USD

6: Iraq exchanges the old dinar for the new at a 1:1000 rate.

I tried to be as clear as I could here. I hope this explains whats going on in my head.

by zerhourwriter Wed Feb 22, 2012 2:47 pm

To be clear, Saddam devalued it in the 90's. The dinar that we have now was exchanged 1:1 with the old. So whatever the old value of the currency was, was transferred to the new currency.

The swiss dinar was exchange for about 200:1 to the current dinar in 2003

To me there would be no question of a "lop" if that dang war didn't last 10 years (roughly).

But I do see people use the term lop in two different ways.

One being the way I described which is what I believe TRB to agree with.

The other as a further devaluation of Iraqi money. Which makes absolutely no sense to me. Which is also what I believe the creator of this post is referring to.

The confusion I believe comes in with all the articles that we read in english. The CBI could put it in very clear terms but the seem to refuse to. They keep using terms like "removing three zeros". OK removing from what? The currency itself or the exchange rate?

If its the currency it's self well then ok. But ya'll have currency that doesn't have 3 zeros on them.

They give examples saying that the new dinar will have a "25 note that is worth 25,000 dinar". OK so you explained the value of the new dinar but what about the value of the old?

Not only do they release articles of a re denomination but also of a revaluation. But they never say if that revaluation will effect the currency that we now hold.

So we are left to speculate. Which is exactly what they want.

They haven't been clear about what will happen to the currency we hold. Only that they are removing it. Which if they "lop" or not they will have to do. So that doesn't help us figuring this thing out.

If they wanted to be clear all they would have to do is say what our dinar and the new dinar will be exchanged for compared to each other. This has nothing to do with what it will be exchanged for compared to the dollar. THEY ALL READY SAID!!!! (.86 cents) But they have never said what the old dinar and the new will be exchanged for.

Because of the UN sanctions the dinar devalued 3000% almost instantly. I say if it can devalue that much that fast then it can also be restored. But it doesn't matter what I say. Unfortunately the CBI aint saying too much themselves.

Either way I will make money. Eventually I will probably, at least quadruple my initial investment. Which is phenomenal. But thats not enough for some people. Some people want more. Which is fine and fair.

I keep thinking about that poor Iraqi business man, that spent his life working for and with his country and became a millionaire. Only to wake up on August 6th, 1990 and began to see his money, his hard work, turn to toilet paper. All because of one mans arrogance. A man that, that poor business man, had no control over.

For his sake more than mine I hope for no lop.

by **greenlight** Wed Feb 22, 2012 3:25 pm

One of the things the CBI seems to be very proud of is that their foreign reserves are the highest in the history of the country so this point doesn’t seem to be one that would make Iraq want to devalue or LOP their currency.

They have approximately 27 billion USD in Dinar at this moment.
After the process or removing the zeros they will still have approximately 27 billion USD.
Where's the devalue??

Here's the process even simple people like me can easily understand.

25000/.00086 in OIQD (old IQD)
25/.86 in NIQD (new IQD)

Notice the 3 zeros 'LOP'd off both sides of the OQD.
Both the first line and the second line are of identical value.

A true definition of what you call a LOP is the moving of the decimal point 3 places to the left of the face value (25000 becomes 25) and the moving of the decimal point to the right in the exchange rate (.00086 becomes .86).
Both are done at the exact same time. All the new LDs will come out with these zeros removed.
So, again.. where's the devaluing of anything?
Like I said, before, during, and after the process they will have about 27 billion USD in value.

by LookingAtTheHeavens Wed Feb 22, 2012 3:26 pm

Excellent work ibcraig0!

by HeadNotTheTail Wed Feb 22, 2012 9:58 pm

There will be No Lop....I will bring New News to you after Dinner

by **greenlight** Wed Feb 22, 2012 10:02 pm

HeadNotTheTail wrote:There will be No Lop....I will bring New News to you after Dinner

If you don't mind, would you also give us your understanding of what a LOP is. It's possible those who disagree with you do so based on a different understand of owhat a LOP is.
Thanks

by Guest Wed Feb 22, 2012 10:03 pm

HeadNotTheTail wrote:There will be No Lop....I will bring New News to you after Dinner

Please do...

by **greenlight** Wed Feb 22, 2012 10:07 pm

punisher wrote:
HeadNotTheTail wrote:There will be No Lop....I will bring New News to you after Dinner

Please do...

Punisher, would you mind also giving your understanding of what a LOP actually is? You have seen mine, if you read my responses even earlier today.
I wonder if it not our differing understandings that is the problem?? Maybe?
Thank you

by Guest Wed Feb 22, 2012 10:11 pm

I think that even though they are getting rid of the 000's...we will still have our money at face value. So if we get a $3 rate....$3 x's $25,000 dinar bill equals $75,000.

by **greenlight** Wed Feb 22, 2012 10:14 pm

punisher wrote:I think that even though they are getting rid of the 000's...we will still have our money at face value. So if we get a $3 rate....$3 x's $25,000 dinar bill equals $75,000.

First of all, please don't think me hostile.
What happens to the 25000 when they delete the 3 zeros? Would it not be 25 ?
If not, what would actually get the 3 zeroes removed?

by CaptnJerry Wed Feb 22, 2012 10:27 pm

Greenlight, I think Punisher believes what "those who shall remain nameless" have been preaching... An in-country only Redenomination... Somehow everyone has been convinced it will only affect the currency in-country and that our out of country currency will be magically unaffected by the redenomination... A redenomination will affect every note, in or out of country!!!

CJ

by kingosawbe Wed Feb 22, 2012 10:31 pm

lets make it simple so you all can understand ex More printed Us dollar the dollar is weakened less more strength or buying power Less dinar the more strength or buying power lop of zeros of course there going to do it If you cant see it your blinded by the thoughts of becoming wealthy with little effort sorry aint going to happen. However we still can make some money. Think of this as an investment and you wont be disapointed. These pumpers out here are full of it and it will be manefested. Be happy if you make a few thousand off of this dinar Ive had this stuff dinar for years and have always considered it a long term investment and you would be wise to I watch and listen there saying the same old things they the dinar seller they said years ago when I first bought dinar. Just like a pancake this dinar has two sides to it. You must look at both sides or you"ll come out on the short end of the stick

by **greenlight** Wed Feb 22, 2012 10:35 pm

CaptnJerry wrote:Greenlight, I think Punisher believes what "those who shall remain nameless" have been preaching... An in-country only Redenomination... Somehow everyone has been convinced it will only affect the currency in-country and that our out of country currency will be magically unaffected by the redenomination... A redenomination will affect every note, in or out of country!!!

CJ

Punisher, please say you do not believe this...please? Tell CJ he's mistaken. K?
Objective reasoning insists the impossibility of such a plan.
The Iraqi government along with the CBI and all it's officers would be slaughtered or at best removed and utter chaos would result. Imagine if the US did that. How would Americans feel? The entire population would revolt!!!

by Guest Wed Feb 22, 2012 10:46 pm

Has anyone seen the actual law from Iraq concerning what really is going to happen wether a LOP or RV? I say no, only news articles! Has anyone heard from the mouth of Dr. Shabibi the word LOP? I say no, but he did slip once and said RV and then in a very fast motion, corrected himself. No one here knows what's going to happen until that day. But I do know this, there is a lot of USD in the market place in Iraq and without an RV the CBI will never pull it out or get the People of Iraq interested in the Dinar, so with those things said draw your own conclusions, because it is all speculation. I tend to believe the rate is 1.134 because an Iraq document states that and it states nothing about what we hear in the news as hearsay. I rest my case. AJ

by therealbutterfly Wed Feb 22, 2012 10:50 pm

AJAnderson wrote:Has anyone seen the actual law from Iraq concerning what really is going to happen wether a LOP or RV? I say no, only news articles! Has anyone heard from the mouth of Dr. Shabibi the word LOP? I say no, but he did slip once and said RV and then in a very fast motion, corrected himself. No one here knows what's going to happen until that day. But I do know this, there is a lot of USD in the market place in Iraq and without an RV the CBI will never pull it out or get the People of Iraq interested in the Dinar, so with those things said draw your own conclusions, because it is all speculation. I tend to believe the rate is 1.134 because an Iraq document states that and it states nothing about what we hear in the news as hearsay. I rest my case. AJ

Shabibi has also said the words "dropping the zeros" and also "redenomination". The articles ARE direct from the CBI, which is direct from Shabibi and Saleh. I will agree that no one knows until it happens but we can not say it wont RV until that moment we know for sure. Dont you agree that it MIGHT lop?

by **greenlight** Wed Feb 22, 2012 10:54 pm

TRB, I have a sneaky suspicion that there are differing opinions as to the true understanding of just what a LOP is.
I read more than just a couple opinions of what it is. I am suspecting we are disagreeing with their understanding more than the actual LOP.

by therealbutterfly Wed Feb 22, 2012 10:57 pm

greenlight wrote:TRB, I have a sneaky suspicion that there are differing opinions as to the true understanding of just what a LOP is.
I read more than just a couple opinions of what it is. I am suspecting we are disagreeing with their understanding more than the actual LOP.

I agree, but I do think that many think that it wont redenominate, which is a lop even tho we have explained exactly what the process is and how it all fits in what they are saying. Not sure how one gets confused as to what a redenomination is tho.... its pretty self explanatory.....

by Guest Wed Feb 22, 2012 11:00 pm

I do not believe one word Saleh states and Shabibi is the biggest pumper on the Iraq dinar, so with that said I am going to believe about 10% of what comes out as CBI news. If you go back and read my last AJ's Intel, I stated it "could" be somewhere between a LOP and $4.40 or was it $3.41, oh well somewhere between there and point B. The problem is, this type of redenomination, which means lower denominations and the dollarization of a country has never happened in world history, so not even the writers of the data know what's going to happen and that is fact. AJ

therealbutterfly wrote:
AJAnderson wrote:Has anyone seen the actual law from Iraq concerning what really is going to happen wether a LOP or RV? I say no, only news articles! Has anyone heard from the mouth of Dr. Shabibi the word LOP? I say no, but he did slip once and said RV and then in a very fast motion, corrected himself. No one here knows what's going to happen until that day. But I do know this, there is a lot of USD in the market place in Iraq and without an RV the CBI will never pull it out or get the People of Iraq interested in the Dinar, so with those things said draw your own conclusions, because it is all speculation. I tend to believe the rate is 1.134 because an Iraq document states that and it states nothing about what we hear in the news as hearsay. I rest my case. AJ

Shabibi has also said the words "dropping the zeros" and also "redenomination". The articles ARE direct from the CBI, which is direct from Shabibi and Saleh. I will agree that no one knows until it happens but we can not say it wont RV until that moment we know for sure. Dont you agree that it MIGHT lop?

by CaptnJerry Wed Feb 22, 2012 11:05 pm

AJAnderson wrote:Has anyone seen the actual law from Iraq concerning what really is going to happen wether a LOP or RV? I say no, only news articles! Has anyone heard from the mouth of Dr. Shabibi the word LOP? I say no, but he did slip once and said RV and then in a very fast motion, corrected himself. No one here knows what's going to happen until that day. But I do know this, there is a lot of USD in the market place in Iraq and without an RV the CBI will never pull it out or get the People of Iraq interested in the Dinar, so with those things said draw your own conclusions, because it is all speculation. I tend to believe the rate is 1.134 because an Iraq document states that and it states nothing about what we hear in the news as hearsay. I rest my case. AJ

Actually Dr. Shabibi talks about redenomination here at the 4 minute mark...

CJ

by Guest Wed Feb 22, 2012 11:14 pm

Just so we are clear here, the idea of a LOP could be several senarios. 1. it could be a loss on our part as investors, where we get 25 note value at .86 after trade and we get $860 per million or $1.134 which would be $1134 per million or $3.41 which would be $3410 per million or they are lopping the 3 zeros off the nominal value where we make $860,000.00 per million, so pick your poison as we could loose or we could win big, but will never know until that day arrives. AJ

by Guest Wed Feb 22, 2012 11:18 pm

Sure redenomination is always a part of the senario, the question is, how are they going to do the redenomination? Which we really do not know. AJ

CaptnJerry wrote:
AJAnderson wrote:Has anyone seen the actual law from Iraq concerning what really is going to happen wether a LOP or RV? I say no, only news articles! Has anyone heard from the mouth of Dr. Shabibi the word LOP? I say no, but he did slip once and said RV and then in a very fast motion, corrected himself. No one here knows what's going to happen until that day. But I do know this, there is a lot of USD in the market place in Iraq and without an RV the CBI will never pull it out or get the People of Iraq interested in the Dinar, so with those things said draw your own conclusions, because it is all speculation. I tend to believe the rate is 1.134 because an Iraq document states that and it states nothing about what we hear in the news as hearsay. I rest my case. AJ

Actually Dr. Shabibi talks about redenomination here at the 4 minute mark...

CJ

by **greenlight** Wed Feb 22, 2012 11:23 pm

AJ, the news has consistently stated your option 1. Ey have never even suggested your other option. They have consistently stated that 25000 will exchange for the new 25 and the 1000 will exchange for the new 1 dinar. And both will be equal and both will maintain face value.
The only way that could happen is if they also lopped off they 3 zeros from the exchange rate for the new dinar and ONLY for the new dinar.
IE: 25000/.00086 will equal in value to 25/.86 in the new dinar.
Ther is no lopping of the currency without also the equal lopping of the exchange rate.

by Guest Wed Feb 22, 2012 11:55 pm

Yep, it's going to LOP one way or another!

by HeadNotTheTail Thu Feb 23, 2012 12:47 am

NO LOP!

Issue #3: The LOP theory.
My friends, the LOP theory is one that scares a lot of investors. Some of you are running around like your hair is on fire and quite honestly – you have barely even smelled smoke. There is approximately TWO decent articles out there that speak of a legitimate LOP, and neither of them are official announcements made by the IMF, CBI, or any other financially influential organization.
Now here is what I want you to understand. *Could* Iraq LOP? Yes, of course – but keep reading. Historically speaking, countries have lopped when inflation is out of control. They have lopped when there are multiple currencies, and they have lopped when there was no other choice.
Is Iraq out of control with nowhere to go?
Not in my opinion! I know one thing for sure. If I was ready to overhaul my net worth and I knew I had a liability (I.E. Investors With Cash Dinar, like YOU), I would be doing everything I could to get you Investors to sell me your notes. I’d tell you all, every single one of you, “Oh yeah, sell your dinar… you’ll never make money on it.”
And then I’d give an evil chuckle and laugh like a maniac when the sheep just go “OK, here you go” and hand over their investments before they even see where it’s going!
The bottom line is this – maybe you don’t want to buy any more dinar, but you’re a fool if you sell out now. This ride is just about over, and only those with blinders on are going to be able to ignore the distractions and make it to the finish line.
I’ll see you there, with a pocket full of cash.

Sorry had to edit this, becuse his name cannot be mentioned here!

Zero Lop or Zero Lopping the Dinar Analysis
Zero Lop or Zero Lopping the Dinar Analysis
Dinar into Dollars - [7/13/2006]

Both Russia and Afghanistan are countries who have zero lopped their currency.
Lets look at their situations in relation to the Iraqi Dinar and the speculation and
rumors about Iraq doing a zero lop on their currency:

Afghanistan had 4 types of currency in circulation as a result of a civil war. It was
unknown how much of each was in circulation. For the people and the
government, this was a very difficult situation. As a result, the currency kept
losing it's value. They needed something both credible and efficient to use as
currency. You did not want people carrying around bags of money since
everything is cash based. Their zero lop happened at the same time as they
printed new currency to replace the confusing mix they had before. This ensured
everyone had the same currency, there was a known amount in circulation, and
people could buy and sell things with few notes. It has little in common to the
Iraqi Dinar and the speculation about the zero lop. Iraq has already
printed and established a single national currency, with secure features
and knows exactly how much is in circulation. The Dinar denominations are
already designed to carry high or low values without carrying around sacks of
money. It makes no sense for them to change the face of the currency, when
they are talking about increasing the value to fit their economic goals.

Russia performed zero lopping to their currency in 1998. They did this in
response to hyperinflation and to restore confidence in their currencies structure
and value. Iraq has roughly only 20% inflation. Russia also had denominations
that went too high - they had denominations of 5k, 10k, 50k, 100k, and 500k -
which were replaced with denominations of 5, 10, 50, 100 , and 500. In
comparison, Iraq's highest denomination is the 25k and has denominations all the
way down to 25 Dinar. If Iraq did zero lopping off the structure of the bills,
they would overlap denominations that already exist. This does not make
sense or fit the stated goals with the Iraqi Dinar. It seems that a zero lop, or
zero lopping would not occur with the denominations of the Dinar, but by
increasing it's value with a revalue that would benefit their economy and their
poor in a positive way.

Many many MANY people ask about the “LOP” theory. I may not have specifically and clearly addressed this in the past, so here it is:
The Iraqi Dinar is not going to lop.
With that said, let’s examine the LOP theory so you all understand it. At certain times in history, countries have chosen to “lop” the last 3 zeros off of their currency, which basically makes a 25,000 note worth 25. Fairly simple. The question we need to ask is this:
Why do countries lop?
One reason is hyperinflation. Sometimes a country prints currency so fast and furious that the economy can’t keep up, and the value of the currency goes down, down, down. Take the Zimbabwe currency, for example. A “Zimbabwean Millionaire” doesn’t really have too much to brag about. Here’s a picture. Actually, this guy may be a Zimbabwe Zillionaire, depending on the size of the notes!
That is Zimbabwe, though. Not Iraq.
Iraq does not have the inflation problem, Iraq is not a country with no way of obtaining wealth to increase the value of it’s currency like Zimbabwe. Iraq doesn’t even need to invent a gadget to make money, like China could do…
Their pockets are already lined with Black Gold.
I have said many times that Iraq’s currency is possibly THE most stable currency in the entire world, and aswat al iraq recently concurred with that statement:
BAGHDAD / Aswat al-Iraq: The exchange rates of the Iraqi Dinar (ID) against the U.S. Dollar is currently constant and stable, an adviser of the Central Bank of Iraq (CBI) said on Thursday.
“Currency policies are normally unstable in an absolute way,” Modhihar Mohammed Selah told Aswat al-Iraq news agency.
He said that the CBI intervenes to respond to legal demands of customers regarding the U.S. Dollar.
Currency policies are inherently unstable, but the Iraqi Dinar is stable.
I will close on that note for now. If you’re not on the newsletter, sign up – I have some announcements coming this week that you don’t want to miss.
Warm RV Wishes,
-Many many MANY people ask about the “LOP” theory. I may not have specifically and clearly addressed this in the past, so here it is:
The Iraqi Dinar is not going to lop.
With that said, let’s examine the LOP theory so you all understand it. At certain times in history, countries have chosen to “lop” the last 3 zeros off of their currency, which basically makes a 25,000 note worth 25. Fairly simple. The question we need to ask is this:
Why do countries lop?
One reason is hyperinflation. Sometimes a country prints currency so fast and furious that the economy can’t keep up, and the value of the currency goes down, down, down. Take the Zimbabwe currency, for example. A “Zimbabwean Millionaire” doesn’t really have too much to brag about. Here’s a picture. Actually, this guy may be a Zimbabwe Zillionaire, depending on the size of the notes!
That is Zimbabwe, though. Not Iraq.
Iraq does not have the inflation problem, Iraq is not a country with no way of obtaining wealth to increase the value of it’s currency like Zimbabwe. Iraq doesn’t even need to invent a gadget to make money, like China could do…
Their pockets are already lined with Black Gold.
I have said many times that Iraq’s currency is possibly THE most stable currency in the entire world, and aswat al iraq recently concurred with that statement:
BAGHDAD / Aswat al-Iraq: The exchange rates of the Iraqi Dinar (ID) against the U.S. Dollar is currently constant and stable, an adviser of the Central Bank of Iraq (CBI) said on Thursday.
“Currency policies are normally unstable in an absolute way,” Modhihar Mohammed Selah told Aswat al-Iraq news agency.
He said that the CBI intervenes to respond to legal demands of customers regarding the U.S. Dollar.
Currency policies are inherently unstable, but the Iraqi Dinar is stable.
I will close on that note for now. If you’re not on the newsletter, sign up – I have some announcements coming this week that you don’t want to miss.
Warm RV Wishes,

Sorry had to edit this!

by 1alaskan Thu Feb 23, 2012 12:49 am

LOP, LOP, LOP,

All I used to see were widgets, now rabbits everywhere.

by LookingAtTheHeavens Thu Feb 23, 2012 12:52 am

Very nice work HNTT! Your hard work is much appreciated.

by Guest Thu Feb 23, 2012 12:58 am

Yep, It will LOP one way or another, 25/000 000/86 860/000

1alaskan wrote:LOP, LOP, LOP,

All I used to see were widgets, now rabbits everywhere.

by CaptnJerry Thu Feb 23, 2012 1:58 am

AJAnderson wrote:Yep, It will LOP one way or another, 25/000 000/86 860/000

Your 1000% right AJ... It will Redenominate, only question is will it RV before or after!!!

HeadNotTheTail, Next time, try using the two examples that Iraq studied and uses as examples... Romania and Turkey. Here are just a few articles from the CBI

http://translate.google.com/translate?sl=ar&tl=en&u=http%3A%2F%2Fpukmedia.co.uk%2F2009-10-23-12-01-47%2F26440---------2013

http://www.aknews.com/en/aknews/2/291025/

http://translate.google.com/translate?sl=ar&tl=en&u=http%3A%2F%2Fwww.ikhnews.com%2Fnews_view_33051.html

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.ikhnews.com%2Fnews_view_32720.html

http://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

http://www.iraq-businessnews.com/2011/09/06/iraq-58bn-in-currency-reserves-should-redenominate-soon/

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

http://www.iraq-businessnews.com/2011/04/14/iraq-central-bank-to-remove-3-zeroes-from-dinar/

http://www.iraq-businessnews.com/2011/04/20/redenomination-and-the-spinal-tap-fallacy/

http://www.iraq-businessnews.com/2011/03/29/iraqi-dinar-revaluation-enthusiasts-are-unaware-of-bernie-madoff%e2%80%99s-fame/

http://www.speroforum.com/a/56072/Iraq-Said-To-Be-Planning-Currency-Overhaul-Redenomination

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http%3A%2F%2Fwww.aknews.com%2Far%2Faknews%2F2%2F273657%2F

Also, Here is a paper that explains what a redenomination is and why countries do it...
http://www.unc.edu/~lmosley/APSA%202005.pdf

Quote:
Currency redenomination also can be a means by which governments attempt to reassert
monetary sovereignty. If citizens lose confidence in the national currency, they may begin to use
foreign currencies, particularly those with greater prestige. This may be both a psychological and
an economic blow to the government: with widespread foreign currency substitution (or, more
extremely, full dollarization), the central bank no longer controls the money supply, rendering it
unable to provide lender of last resort functions (Cohen 2004). Economic policy is influenced
not only by international capital markets (e.g. Mosley 2003), but also by foreign central banks.
Currency redenomination, then, is a means by which governments can attempt to reverse this
currency substituting behavior: if citizens are confident that the new Turkish lira will hold its
value, they may be willing to shift from using euros and dollars to using lira. While the act of
dividing a currencys value by a factor of ten is somewhat symbolic, it also can help to convince
citizens of a currencys worth. As a result, redenominations often occur after economic crises, as
governments attempt to convince citizens and markets that hyperinflation is a thing of the past.
In some cases, the timing is correct, in that redenomination caps off high levels of inflation. In
other cases, governments are not able to reign in inflation immediately after redenomination,
and they may make multiple efforts at currency reform. Argentina and Brazil during the 1980s
and early 1990s exemplify this pattern.

CJ

by Guest Thu Feb 23, 2012 2:45 am

AJAnderson wrote:Yep, It will LOP one way or another, 25/000 000/86 860/000

1alaskan wrote:LOP, LOP, LOP,

All I used to see were widgets, now rabbits everywhere.

Agreed!

by Catherine Thu Feb 23, 2012 2:55 am

YEAH I am not the only late, late night owl!!

by therealbutterfly Thu Feb 23, 2012 5:11 am

HNTT, Again, the comment from whomever you are quoting is incorrect. Countries redenominate AFTER reigning in inflation, like Turkey, Brazil, Romania etc. All were in or near single digits first THEN they introduced the new currency.

And Iraq is creating a completely new currency with the new agreement of the 3 languages on it, so even tho they already have a 50 dinar note, the new one will look so different (or they may wait to introduce it until after they have the transition) that it wont be confusing.

by 1alaskan Thu Feb 23, 2012 6:54 am

Catherine wrote:YEAH I am not the only late, late night owl!!

I know owl's eat rabbits, what about widgets?

by Guest Thu Feb 23, 2012 8:06 am

Yep, its going to LOP! I already told you that. That's all the further I am going to debate this with you. You want to hear LOP its going to LOP! So, are you FBI or CIA? AJ

CaptnJerry wrote:
AJAnderson wrote:Yep, It will LOP one way or another, 25/000 000/86 860/000

Your 1000% right AJ... It will Redenominate, only question is will it RV before or after!!!

HeadNotTheTail, Next time, try using the two examples that Iraq studied and uses as examples... Romania and Turkey. Here are just a few articles from the CBI

http://translate.google.com/translate?sl=ar&tl=en&u=http%3A%2F%2Fpukmedia.co.uk%2F2009-10-23-12-01-47%2F26440---------2013

http://www.aknews.com/en/aknews/2/291025/

http://translate.google.com/translate?sl=ar&tl=en&u=http%3A%2F%2Fwww.ikhnews.com%2Fnews_view_33051.html

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.ikhnews.com%2Fnews_view_32720.html

http://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

http://www.iraq-businessnews.com/2011/09/06/iraq-58bn-in-currency-reserves-should-redenominate-soon/

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

http://www.iraq-businessnews.com/2011/04/14/iraq-central-bank-to-remove-3-zeroes-from-dinar/

http://www.iraq-businessnews.com/2011/04/20/redenomination-and-the-spinal-tap-fallacy/

http://www.iraq-businessnews.com/2011/03/29/iraqi-dinar-revaluation-enthusiasts-are-unaware-of-bernie-madoff%e2%80%99s-fame/

http://www.speroforum.com/a/56072/Iraq-Said-To-Be-Planning-Currency-Overhaul-Redenomination

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http%3A%2F%2Fwww.aknews.com%2Far%2Faknews%2F2%2F273657%2F

Also, Here is a paper that explains what a redenomination is and why countries do it...
http://www.unc.edu/~lmosley/APSA%202005.pdf

Quote:
Currency redenomination also can be a means by which governments attempt to reassert
monetary sovereignty. If citizens lose confidence in the national currency, they may begin to use
foreign currencies, particularly those with greater prestige. This may be both a psychological and
an economic blow to the government: with widespread foreign currency substitution (or, more
extremely, full dollarization), the central bank no longer controls the money supply, rendering it
unable to provide lender of last resort functions (Cohen 2004). Economic policy is influenced
not only by international capital markets (e.g. Mosley 2003), but also by foreign central banks.
Currency redenomination, then, is a means by which governments can attempt to reverse this
currency substituting behavior: if citizens are confident that the new Turkish lira will hold its
value, they may be willing to shift from using euros and dollars to using lira. While the act of
dividing a currencys value by a factor of ten is somewhat symbolic, it also can help to convince
citizens of a currencys worth. As a result, redenominations often occur after economic crises, as
governments attempt to convince citizens and markets that hyperinflation is a thing of the past.
In some cases, the timing is correct, in that redenomination caps off high levels of inflation. In
other cases, governments are not able to reign in inflation immediately after redenomination,
and they may make multiple efforts at currency reform. Argentina and Brazil during the 1980s
and early 1990s exemplify this pattern.

CJ

by LookingAtTheHeavens Thu Feb 23, 2012 8:31 am

It's gross how you guys let the plants thrive here. At least in chat they aren't so afraid to use weed killer there.

by **greenlight** Thu Feb 23, 2012 8:44 am

I think we were all expecting and perhaps actually hoping to see some proof of a no LOP, but all we got are opinions that have zero basis in fact.
I'm not so sure we are the ones that should be seen as "weeds".

by 1alaskan Thu Feb 23, 2012 8:50 am

Easy now folks

by **Terbo56** Thu Feb 23, 2012 8:51 am

Don't make me get out the rotenone-

by HeadNotTheTail Thu Feb 23, 2012 10:05 am

I Do Not mind getting chopped up On this Lop thing , My views are mine,Heck I could Post Lop info but it is Nonsense to me . sure it will Lop ... after the rv and they give you a period of time to cash in....that Has been the Plan the whole time... But Not till after The Rv...The reason they will Devalue after Rv is so the 25k and the 25 note can coexist ...Plane and simple ,,,to me anyway..To be Honest about it all these articles they are just ones view on what they are writing about ,,and we have seen allot of that .....I remember about a month ago there were wall to wall articles on here, and Now none came to furission ,sorry about my spelling. My only Point is that it will RV first....and of cores the 25k will devalue....

Here is a news story out of Iraq from last Saturday. It talks about the raising of the three zeros as new currency being issued, and this new currency does not have the three zeros on them... hence raising the three zeros.
It mentions adding Kurdish writing to the English and Arabic writing on the bills, and returning the value of it to where it was in the 80's.
It is through google translator so the english is a bit dicey. In the last paragraph it says... "And on the variables of the new currency they will appear new look including the lifting of three zeros from the dinar and at the same time returned to the value in the eighties and also will enter the addition to Arabic and English, ..."

To put it simply, raising the three zeros is bringing in new currency without the three zeros.

One of the things were also mentioned in the economic file of the 2010 Iraq is the Iraqi currency and delete the three zeroes of them,
حيث كشف الخبير الأول في البنك المركزي العراقي الدكتور مظهر محمد صالح إن العملة العراقية الجديدة سيجرى عليها جملة من التغييرات من أهمها رفع ثلاث أصفار منها بهدف تشريقها ورفع قوتها الشرائية ، والثانية هو أنها ستظهر بحلة جديدة بإضافة اللغة الكردية للغات العربية والانكليزية التي كانت تطبع بها . Has revealed the first expert at the CBI appearance of Dr. Mohamed Saleh said that Iraq's new currency will be conducted by a number of changes from the most important of which raise three zeroes of the aim of Tharigaha and raise their purchasing power, and the second is that they'll give new look by adding the Kurdish language of Arabic and English that were printed out. وأضاف مظهر إن مشروع تبديل العملة العراقية يعد من بين أهم المشاريع الإستراتيجية التي يسير عليها البنك لكن ليس على المدى القريب وإنما على الأفقين المتوسط والبعيد ، فتغيير العملة ليست بالأمور السهلة فيجب إن تسبقها الكثير من التحضيرات قبيل الوصول لقرار التبديل .خاصة وان الكتلة تعاني التضخم والدولة تسير نحو الاستقرار وبالتالي أفاق التضخم يتحمله سياسات إصلاح هذا التضخم وإصلاح النظام النقدي والعملة ، والتضخم يعاني من تضخم سابق بمعدل 50% وكتلة نقدية كبيرة وقدرة شرائية محدودة وهنا يجب خلق معادلات فبدلا من كمية كبيرة من النقود مقابل كمية صغيرة من السلع نحاول عكس المعادلة كمية قليلة من النقد مقابل قوة شرائية كبيرة . The appearance of the draft Iraqi Currency Exchange is one of the most important strategic projects, which goes by the bank, but not in the near term, but on the horizons the medium and long term, Changing the currency is not things easy it must be preceded by a lot of preparation, such as access to the decision to switch. Especially since the cluster experiencing inflation and the State is moving towards stability and thus the prospects for inflation endures reform policies that inflation and reforming the monetary system and currency, and inflation is suffering from inflation earlier rate of 50% and the mass of large cash and low purchasing power and here we must create equations instead of a large amount of money for a small amount of goods we are trying to reverse the equation a small amount of cash for purchasing power.
وبين إن الكتلة النقدية العراقية حاليا تجاوزت ال29 تريليون دينار وتسمى أوراق تعاملية ولا يمكن إن تبقى بالترليونات بل يجب ترشيقها عبر حذف الاصفار وهنا ستخفض إلى الثلث والترشيق أمر مهم لسحب التضخم وسحب كميات من العملة وهو لا يؤثر على الرواتب ولا القوة الشرائية ولا على إي تعاملات نقدية فقط نحاول تخفيف العبء بسحب هذا الكم الهائل من الأوراق ، وبحالة وجود نظام اقتصادي مستقر فيجب اللجوء لهذه السياسة المهمة بعملة مزدهرة ومتفائلة وتتعلق بمستقبل مزدهر للعراق ، وللأسف هناك من يحاول إرجاعه للوراء لكن العراق رغم كل ذلك مقبل لمستقبل مزدهر ويحتاج لإصلاحات مهمة وسريعة وصناعة السياسة النقدية تتدخل في إي أمر تراه مناسب للاقتصاد العراقي ، ووجدنا إن كلفة العد والفرز حاليا ترهق الموظفين ومع عملة رشيقة لا تتطلب هكذا مجهودات . And between the bloc the Iraqi monetary currently exceeded the 29 trillion dinars and called securities transactional and can not remain trillions, but must Trchigaha through the deletion of zeros and here reduced to one third and Limbering is important for the withdrawal of inflation and the withdrawal of amounts of currency which does not affect the wages and purchasing power, or at any MM just trying to ease the burden withdrawal of this vast amount of paperwork, and the state and a stable economic order must resort to this policy is important in the currency of a prosperous and optimistic about a prosperous future for Iraq, and unfortunately there are who tries to return it back, but Iraq in spite of all the future for a prosperous future and in need of major repairs, fast and industry, monetary policy intervene in any matter it deems appropriate for the Iraqi economy, and we found that the cost of counting and sorting currently weighs staff and with the currency of grace does not require such efforts.
وبشان متغيرات العملة الجديدة بين أنها ستظهر بحلة جديدة منها رفع ثلاثة أصفار من الدينار وارجاعة لذات قيمته في الثمانينات وأيضا ستظهر بإدخال اللغة الكردية إضافة للعربية والانكليزية وهذا مقر وفق الدستور فاللغة الكردية لغة رسمية ومقرة بالدستور وتستخدم في كافة المخاطبات الرسمية ، وستكون عملية الطباعة رصينة جدا راقية المستوى ووفق مواصفات خاصة جدا وغير قابلة للتزوير والتحريف والتزييف . And on the variables of the new currency between they will appear new look including the lifting of three zeros from the dinar and returned to the same value in the eighties and also will enter the Kurdish language in addition to Arabic and English, this headquarters according to the constitution language Kurdish language official and sanctioned by the Constitution and is used in all official correspondence, and will be printing process solid very fine level and according to specifications of a very special and not subject to fraud and corruption and forgery.

Read more: http://dinarvets.com/forums/index.php?/topic/62854-no-lop-no-lop-no-lop-this-should-put-it-to-rest/?s=560f25c9e08115ed2bb3bb61b27b4555#ixzz1nDYWdxYF

by HeadNotTheTail Thu Feb 23, 2012 10:11 am

The strongest no LOP opinion ever!): DV 12/05/11
iqdheadlines (The strongest no LOP opinion ever!): DV 12/05/11
DECEMBER 5TH, 2011 10:07 AM · POSTED IN CHATS & POSTS (IRAQI DINAR INFO)

Hey guys, I’m just wondering why nobody has ever thought of the RV/RD this way before?

Well actually the real credit of this thread goes to “JonnyLeo” who made a post about this earlier today BUT I have decided to give it a better understanding of what he was trying to say BUT got nothing except -1′s for posting in the “news” section and for typing in CAPS.

JonnyLeo’s original thread that he posted earlier today (and I’m so glad he did) really got me thinking and got me excited!
With all the articles that the CBI has ever posted about what they intend to do with the Iraqi Dinar (IQD) I believe and feel are 100% true and that there really never has been any smoke and mirrors.

And because of all this misunderstanding of all the translated CBI news articles in the past until present many people have got worried and turn into LOPSTERS and so fourth.
Whenever Shabibi of the CBI announced his intentions in regards to the Iraqi Dinar (IQD), he was always talking to the people of Iraq.

Why would Shabibi be making these statements to the world other than Iraq itself………..why would would he care for other than his own country?
Why would he tell the world that by raising the value of the Iraqi Dinar so in order to increase the purchasing power for his people of Iraq.

Shabibi couldn’t care less about telling the world and he wouldn’t even for a moment by telling people outside of Iraq that the Iraqi Dinar that we hold will increase in value as a result by raising the value of the Iraqi Dinar so he can give ADDED or increased purchasing power to his own people.

This is why Shabibi’s statement have only been to his people of Iraq and have not been meant for the world so as to us people outside of Iraq think nothing but Redenomination (RD) in a bad way and cause worry by turning many of us into LOPSTERS……..and this is what Shabibi wants so that he can control the speculation and retract as much as of our current Dinar as possible into his CBI vault for destroying or so fourth.

Never once has Shabibi said the world that he would NOT honor the face value of our current Dinar and never once has he said that he would not give people outside of Iraq $25,000 for their 25K Iraqi Dinar note if he were to raise the value 1:1 by replacing it with the NEW Dinar.

Okay guys I believe that you understand what I’m trying to say here and that is Shabibi has always been talking to the people of Iraq and not us outside of Iraq………so please let me know if I need to explain myself a little bit more and I will do my best to give you a proper understanding.

So let’s all just relax and wait for this thing to happen………..as nobody really knows exactly how this is all going to happen and since today and many thanks to “JonnyLeo” that I believe that we have been reading this whole RD thing in the wrong way all this time since LOP talk began!

P.S So whenever Shabibi said to the people of Iraq that he intended to raise the value of the Iraqi Dinar and delete the 3 zero’s (old notes) he was referring to increasing the “PURCHASING” power of the current Iraqi Dinar (IQD) and removing (deleting) the OLD Iraqi Dinar (IQD) by Re-denominating it with a NEW Iraqi Dinar in which the current 25K Iraqi Dinar note will become “Worth” 25 Iraqi Dinars (Whether Shabibi means a NEW 25 Iraqi Dinar note or just a NEW 20+5 Iraqi Dinar notes is the question we won’t know the answer to until it happens.

by HeadNotTheTail Thu Feb 23, 2012 10:15 am

Redenomination of Romania as referenced by the Central Bank of Iraq:
Law on the redenomination of domestic currency

Law No. 348 of 14.07.04

Published in Monitorul Oficial al României, Part I No. 664 of 23.07.04 on the redenomination of the domestic currency.

The Parliament of Romania passes the present law.

Art.1.

(1) On 1 July 2005, the leu, Romania's legal tender, shall be redenominated so that 10,000 old lei, in circulation on that date, shall be exchanged for 1 new leu.
(2) Redenomination is the process of reducing the nominal value of the currency.
(3) The new leu shall be Romania's currency unit, hereinafter called the leu and shall be divided into 100 bani.

Art.2.

(1) In compliance with the provisions under Art. 1, the National Bank of Romania shall put into circulation the new banknotes and coins starting 1 July 2005.
(2) The existing banknotes and coins, i.e. the old lei, shall be legal tender until end-December 2006 and shall be accepted for payment at a value calculated according to the provisions under Art. 1 para. (1).
(3) Starting 1 January 2007, the National Bank of Romania shall exchange the old banknotes and coins for the new ones, in accordance with its regulations.
(4) The exchange shall be made at the NBR branches carrying out payments and at the offices of the credit institutions authorised by the NBR Governor's order to perform the exchange, during a three-year period, at most, until 31 December 2009.

Art.3.

During 1 July 2005 - 31 December 2006, the banknotes and coins in circulation before 1 July 2005, hereinafter referred to as old currency, shall be gradually replaced by the new banknotes and coins issued by the National Bank of Romania, hereinafter referred to as new currency.

Art.4.

(1) Starting 1 March 2005 up to 30 June 2006, the prices and tariffs of goods and services shall be displayed in both old and new currency.
(2) The amounts established in the contracts of utility providers, in progress on 1 March 2005, as well as the invoices for utility payments shall be notified to the parties in both old and new currency.

Art.5.

(1) Goods, rights and obligations, which may be valued in cash, created prior to 1 July 2005, shall be converted in accordance with the report referred to in Art. 1, in all the cases where such goods, rights and obligations are subject to valuation, payment or drawing-up of any other legal report.
(2) Conversion in the new currency unit, as provided in para. (1), shall be performed in compliance with the state of affairs on 30 June 2005.
(3) Redenomination is made pursuant to this Law and a previous statement in this respect from authorised persons is not deemed necessary.
(4) On 1 July 2005, the National Office of Trade Register shall record the redenomination of share capital and shares of registered legal entities and shall publish on its website the list of these entities and the new values, along with the old ones. In this case, the publication in Monitorul Oficial al României of the change in the share capital and shares is not deemed necessary.
(5) All the amounts expressed in old currency provided for in the legal acts issued prior to 1 July 2005 are replaced by the amounts expressed in new currency, by division to 10,000.

Art.6.

(1) As of 1 July 2005, the persons referred to in Art. 1 of Law No. 82/1991 - Accounting Act, republished, as subsequently amended and supplemented, shall draw up their financial statements using both the old and the new currency by 31 December 2005.
(2) Annual financial statements for 2005 are made using the new currency, under the conditions set by order of the minister of public finance.

Art.7.

(1) Non-compliance with provisions of Art. 4 shall be deemed as infringement.
(2) The fine charged for the infringement provided for in para. (1) ranges from 10,000,000 to 30,000,000, expressed in old currency, and shall be applied to persons found guilty of non-compliance with the provisions of this Law.
(3) Identification of infringement and implementation of sanctions are to be made by the governing bodies in the Ministry of Public Finance and its subordinated units, the National Control Authority and the National Authority for Consumer Protection, as well as by the authorised personnel of the city halls.
(4) The provisions of this Law related to infringements are supplemented by provisions of Government Ordinance No. 2/2001 on the legal regime of infringements, as approved, altered and supplemented by Law 180/2002, as subsequently amended.

http://www.polymernotes.org/other_country/ROU_law.htm
Last edited by dinar_queen; 08-12-2011 at 03:59 PM.
For purposes of monitoring under the program, a program exchange rate will be used. This program exchange rate will be set at ID 1,170 per U.S. dollar. The program exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign assets and liabilities denominated in U.S. dollars, as required. - IMF IRAQ SBA 2011-2012

by HeadNotTheTail Thu Feb 23, 2012 10:17 am

I have allot More But why....I Love you guys, Just trying to help Out.....

Can we all agree That JESUS ROCKS

by therealbutterfly Thu Feb 23, 2012 10:32 am

HeadNotTheTail wrote:The strongest no LOP opinion ever!): DV 12/05/11
iqdheadlines (The strongest no LOP opinion ever!): DV 12/05/11
DECEMBER 5TH, 2011 10:07 AM · POSTED IN CHATS & POSTS (IRAQI DINAR INFO)

Hey guys, I’m just wondering why nobody has ever thought of the RV/RD this way before?

Well actually the real credit of this thread goes to “JonnyLeo” who made a post about this earlier today BUT I have decided to give it a better understanding of what he was trying to say BUT got nothing except -1′s for posting in the “news” section and for typing in CAPS.

JonnyLeo’s original thread that he posted earlier today (and I’m so glad he did) really got me thinking and got me excited!
With all the articles that the CBI has ever posted about what they intend to do with the Iraqi Dinar (IQD) I believe and feel are 100% true and that there really never has been any smoke and mirrors.

And because of all this misunderstanding of all the translated CBI news articles in the past until present many people have got worried and turn into LOPSTERS and so fourth.
Whenever Shabibi of the CBI announced his intentions in regards to the Iraqi Dinar (IQD), he was always talking to the people of Iraq.

Why would Shabibi be making these statements to the world other than Iraq itself………..why would would he care for other than his own country?
Why would he tell the world that by raising the value of the Iraqi Dinar so in order to increase the purchasing power for his people of Iraq.

Shabibi couldn’t care less about telling the world and he wouldn’t even for a moment by telling people outside of Iraq that the Iraqi Dinar that we hold will increase in value as a result by raising the value of the Iraqi Dinar so he can give ADDED or increased purchasing power to his own people.

This is why Shabibi’s statement have only been to his people of Iraq and have not been meant for the world so as to us people outside of Iraq think nothing but Redenomination (RD) in a bad way and cause worry by turning many of us into LOPSTERS……..and this is what Shabibi wants so that he can control the speculation and retract as much as of our current Dinar as possible into his CBI vault for destroying or so fourth.

Never once has Shabibi said the world that he would NOT honor the face value of our current Dinar and never once has he said that he would not give people outside of Iraq $25,000 for their 25K Iraqi Dinar note if he were to raise the value 1:1 by replacing it with the NEW Dinar.

Okay guys I believe that you understand what I’m trying to say here and that is Shabibi has always been talking to the people of Iraq and not us outside of Iraq………so please let me know if I need to explain myself a little bit more and I will do my best to give you a proper understanding.

So let’s all just relax and wait for this thing to happen………..as nobody really knows exactly how this is all going to happen and since today and many thanks to “JonnyLeo” that I believe that we have been reading this whole RD thing in the wrong way all this time since LOP talk began!

P.S So whenever Shabibi said to the people of Iraq that he intended to raise the value of the Iraqi Dinar and delete the 3 zero’s (old notes) he was referring to increasing the “PURCHASING” power of the current Iraqi Dinar (IQD) and removing (deleting) the OLD Iraqi Dinar (IQD) by Re-denominating it with a NEW Iraqi Dinar in which the current 25K Iraqi Dinar note will become “Worth” 25 Iraqi Dinars (Whether Shabibi means a NEW 25 Iraqi Dinar note or just a NEW 20+5 Iraqi Dinar notes is the question we won’t know the answer to until it happens.

Of course Shabibi has always been speaking to the people of Iraq, he wants to reassure them its a GOOD thing and not a bad thing and that they wont lose value of their money. The fact that he speaks to the world too is because he wants to tell the world they are a stable and wealthy country and their currency will reflect that. And redenominating DOES raise the purchase power at the same time of reducing the m2. Its not hard to figure out that a redenomination/lop is exactly what he says they will do.

by therealbutterfly Thu Feb 23, 2012 10:34 am

HeadNotTheTail wrote:I Do Not mind getting chopped up On this Lop thing , My views are mine,Heck I could Post Lop info but it is Nonsense to me . sure it will Lop ... after the rv and they give you a period of time to cash in....that Has been the Plan the whole time... But Not till after The Rv...The reason they will Devalue after Rv is so the 25k and the 25 note can coexist ...Plane and simple ,,,to me anyway..To be Honest about it all these articles they are just ones view on what they are writing about ,,and we have seen allot of that .....I remember about a month ago there were wall to wall articles on here, and Now none came to furission ,sorry about my spelling. My only Point is that it will RV first....and of cores the 25k will devalue....

Here is a news story out of Iraq from last Saturday. It talks about the raising of the three zeros as new currency being issued, and this new currency does not have the three zeros on them... hence raising the three zeros.
It mentions adding Kurdish writing to the English and Arabic writing on the bills, and returning the value of it to where it was in the 80's.
It is through google translator so the english is a bit dicey. In the last paragraph it says... "And on the variables of the new currency they will appear new look including the lifting of three zeros from the dinar and at the same time returned to the value in the eighties and also will enter the addition to Arabic and English, ..."

To put it simply, raising the three zeros is bringing in new currency without the three zeros.

One of the things were also mentioned in the economic file of the 2010 Iraq is the Iraqi currency and delete the three zeroes of them,
حيث كشف الخبير الأول في البنك المركزي العراقي الدكتور مظهر محمد صالح إن العملة العراقية الجديدة سيجرى عليها جملة من التغييرات من أهمها رفع ثلاث أصفار منها بهدف تشريقها ورفع قوتها الشرائية ، والثانية هو أنها ستظهر بحلة جديدة بإضافة اللغة الكردية للغات العربية والانكليزية التي كانت تطبع بها . Has revealed the first expert at the CBI appearance of Dr. Mohamed Saleh said that Iraq's new currency will be conducted by a number of changes from the most important of which raise three zeroes of the aim of Tharigaha and raise their purchasing power, and the second is that they'll give new look by adding the Kurdish language of Arabic and English that were printed out. وأضاف مظهر إن مشروع تبديل العملة العراقية يعد من بين أهم المشاريع الإستراتيجية التي يسير عليها البنك لكن ليس على المدى القريب وإنما على الأفقين المتوسط والبعيد ، فتغيير العملة ليست بالأمور السهلة فيجب إن تسبقها الكثير من التحضيرات قبيل الوصول لقرار التبديل .خاصة وان الكتلة تعاني التضخم والدولة تسير نحو الاستقرار وبالتالي أفاق التضخم يتحمله سياسات إصلاح هذا التضخم وإصلاح النظام النقدي والعملة ، والتضخم يعاني من تضخم سابق بمعدل 50% وكتلة نقدية كبيرة وقدرة شرائية محدودة وهنا يجب خلق معادلات فبدلا من كمية كبيرة من النقود مقابل كمية صغيرة من السلع نحاول عكس المعادلة كمية قليلة من النقد مقابل قوة شرائية كبيرة . The appearance of the draft Iraqi Currency Exchange is one of the most important strategic projects, which goes by the bank, but not in the near term, but on the horizons the medium and long term, Changing the currency is not things easy it must be preceded by a lot of preparation, such as access to the decision to switch. Especially since the cluster experiencing inflation and the State is moving towards stability and thus the prospects for inflation endures reform policies that inflation and reforming the monetary system and currency, and inflation is suffering from inflation earlier rate of 50% and the mass of large cash and low purchasing power and here we must create equations instead of a large amount of money for a small amount of goods we are trying to reverse the equation a small amount of cash for purchasing power.
وبين إن الكتلة النقدية العراقية حاليا تجاوزت ال29 تريليون دينار وتسمى أوراق تعاملية ولا يمكن إن تبقى بالترليونات بل يجب ترشيقها عبر حذف الاصفار وهنا ستخفض إلى الثلث والترشيق أمر مهم لسحب التضخم وسحب كميات من العملة وهو لا يؤثر على الرواتب ولا القوة الشرائية ولا على إي تعاملات نقدية فقط نحاول تخفيف العبء بسحب هذا الكم الهائل من الأوراق ، وبحالة وجود نظام اقتصادي مستقر فيجب اللجوء لهذه السياسة المهمة بعملة مزدهرة ومتفائلة وتتعلق بمستقبل مزدهر للعراق ، وللأسف هناك من يحاول إرجاعه للوراء لكن العراق رغم كل ذلك مقبل لمستقبل مزدهر ويحتاج لإصلاحات مهمة وسريعة وصناعة السياسة النقدية تتدخل في إي أمر تراه مناسب للاقتصاد العراقي ، ووجدنا إن كلفة العد والفرز حاليا ترهق الموظفين ومع عملة رشيقة لا تتطلب هكذا مجهودات . And between the bloc the Iraqi monetary currently exceeded the 29 trillion dinars and called securities transactional and can not remain trillions, but must Trchigaha through the deletion of zeros and here reduced to one third and Limbering is important for the withdrawal of inflation and the withdrawal of amounts of currency which does not affect the wages and purchasing power, or at any MM just trying to ease the burden withdrawal of this vast amount of paperwork, and the state and a stable economic order must resort to this policy is important in the currency of a prosperous and optimistic about a prosperous future for Iraq, and unfortunately there are who tries to return it back, but Iraq in spite of all the future for a prosperous future and in need of major repairs, fast and industry, monetary policy intervene in any matter it deems appropriate for the Iraqi economy, and we found that the cost of counting and sorting currently weighs staff and with the currency of grace does not require such efforts.
وبشان متغيرات العملة الجديدة بين أنها ستظهر بحلة جديدة منها رفع ثلاثة أصفار من الدينار وارجاعة لذات قيمته في الثمانينات وأيضا ستظهر بإدخال اللغة الكردية إضافة للعربية والانكليزية وهذا مقر وفق الدستور فاللغة الكردية لغة رسمية ومقرة بالدستور وتستخدم في كافة المخاطبات الرسمية ، وستكون عملية الطباعة رصينة جدا راقية المستوى ووفق مواصفات خاصة جدا وغير قابلة للتزوير والتحريف والتزييف . And on the variables of the new currency between they will appear new look including the lifting of three zeros from the dinar and returned to the same value in the eighties and also will enter the Kurdish language in addition to Arabic and English, this headquarters according to the constitution language Kurdish language official and sanctioned by the Constitution and is used in all official correspondence, and will be printing process solid very fine level and according to specifications of a very special and not subject to fraud and corruption and forgery.

Read more: http://dinarvets.com/forums/index.php?/topic/62854-no-lop-no-lop-no-lop-this-should-put-it-to-rest/?s=560f25c9e08115ed2bb3bb61b27b4555#ixzz1nDYWdxYF

Again, this directly talks of a lop, tho this does also speak of an increase in rate of back to over $3 so that makes me happy. Lets jus thope it happens at the same time Smile