Re: Cancellation of Zeroes in Coming Days

by raidernick Thu Mar 01, 2012 5:53 pm

davidpg wrote:OK someone correct my logic if you can but here is what I am seeing.
We LOP the zero's so that 25K is now just 25 dinar. The value stays the same.
Then and here is the hard part. All the folks in Iraq will now use the new dinar because ..... ????? It still has the same value it always (relatively speaking of course) had or even 1 to 1 with the dollar. I just don't think so there is no reason for them to switch from the dollar to the dinar. On the other hand if the dinar was worth more than the dollar then they will be all over it. Just my 2 dinar worth and it may be worth less than that.

Another point which I have brought up in the past is that accounting tasks become very difficult and there is a larger margin for error when you are dealing with huge numbers. Life for everyone including government offices becomes easier with a currency that has a low digit denomination like the dollar and the Euro. When you are seeing 8, 9 10 digit numbers all of the time you are going to screw up. People here constantly mis read 10 billion as 1 trillion.

by **Terbo56** Thu Mar 01, 2012 5:54 pm

I'm likin' that-:cheers:

by therealbutterfly Thu Mar 01, 2012 5:54 pm

PrudenceArt wrote:Then the only way to make any money on this MESS is to cash in the old dinar to the new dinar and hope it goes up in value

I am 45 yrs old and looks like I am going to be 95 before any money is seen. This bites I will be 95 and still at my laptop coming into OOM and being waitng

Not necessarily. Sure we break even per se if it just redenominates. BUT they have stated that it will go back to old rates of $3+, so they MIGHT do it at the same time, which means we basically make 3x our investment. Or they could surprise us all and rv! LOL!! Who knows, I am just explaining what happens in a redenomination which is what they have stated they will do since 2006. I personally would love to see a simple $.10 per dinar straight rv and I would be a very happy girl. Its an amazing return on the investment and would be great! Who knows.......

by PrudenceArt Thu Mar 01, 2012 5:56 pm

HEY TRB didnt you see that job opening for the cbi advisor...That would be a good job for you

by PrudenceArt Thu Mar 01, 2012 5:58 pm

This is why I also bought a boat load of dong

by CaptnJerry Thu Mar 01, 2012 5:59 pm

PrudenceArt wrote:HEY TRB didnt you see that job opening for the cbi advisor...That would be a good job for you

That's it TRB! Go get that job and get it done the way we want it done!!! bigsmile

CJ

by **Terbo56** Thu Mar 01, 2012 6:03 pm

Yeah, maybe even cash us out @ 20.00 per dinar!!! lol!

by therealbutterfly Thu Mar 01, 2012 6:09 pm

PrudenceArt wrote:HEY TRB didnt you see that job opening for the cbi advisor...That would be a good job for you

Heck yeah!!! And I agree CJ, Let me get that job and I will give us a great rate! LOL!!!

by raidernick Thu Mar 01, 2012 6:21 pm

PrudenceArt wrote:Then the only way to make any money on this MESS is to cash in the old dinar to the new dinar and hope it goes up in value

I am 45 yrs old and looks like I am going to be 95 before any money is seen. This bites I will be 95 and still at my laptop coming into OOM and being waitng

No, No, No. Look at my chart above. The old dinar will move in value right along with the new dinar. There is no need to exchange one for the other. When you finally exchange for dollars you will receive the save amount regardless if you have old or new. Look at the chart. If I had 1.3 million old Lira or 1.3 new Lira I would still get a dollar in exchange.

by hithere Thu Mar 01, 2012 6:40 pm

A RD makes sense. But with more notes out in circulation the less value the IQD will have. So how will Iraq keep up their value with more notes (even if they have a time period to turn in the OD)?

And will the 500 note have the same value as before the new notes are introduce?

Has any other country done this? Just RD a few of their notes and not all of their currency?

by therealbutterfly Thu Mar 01, 2012 6:57 pm

hithere wrote:A RD makes sense. But with more notes out in circulation the less value the IQD will have. So how will Iraq keep up their value with more notes (even if they have a time period to turn in the OD)?

And will the 500 note have the same value as before the new notes are introduce?

Has any other country done this? Just RD a few of their notes and not all of their currency?

ALl notes, ALL bank acts, ALL salaries, ALL prices are affected in a redenomination.
a 500 dinar now will be the same as a new .50 dinar. Not sure what you mean by your first comment tho, about more notes in circulation. A redenomination CUTS the notes immediately so if there is right now 30 trill in circ, and they redenom by 3 zeros, that means now there is only 30 billion now in circ. Smile

by raidernick Thu Mar 01, 2012 7:07 pm

First they will only issue out new notes as old ones are exchanged in so there will not be extra cash out in the money supply.

All old notes will redenominate so you will need two 500 notes to exchange in for a new one Dinar note.

No, because Iraq is not doing this either. They are redenominating all of the old currency, they just won't have a straight swap for each denomination. For example there probably won't be a "nickel" to swap with the 50 dinar note. You'll just have to collect 20 of them to exchange for a new 1 dinar. I'm sure they will have fils but I have not seen to designation of them yet.

by Guest Thu Mar 01, 2012 7:25 pm

therealbutterfly wrote:
PrudenceArt wrote:HEY TRB didnt you see that job opening for the cbi advisor...That would be a good job for you

Heck yeah!!! And I agree CJ, Let me get that job and I will give us a great rate! LOL!!!

by hithere Fri Mar 02, 2012 5:45 pm

therealbutterfly wrote:
hithere wrote:A RD makes sense. But with more notes out in circulation the less value the IQD will have. So how will Iraq keep up their value with more notes (even if they have a time period to turn in the OD)?

And will the 500 note have the same value as before the new notes are introduce?

Has any other country done this? Just RD a few of their notes and not all of their currency?

ALl notes, ALL bank acts, ALL salaries, ALL prices are affected in a redenomination.
a 500 dinar now will be the same as a new .50 dinar. Not sure what you mean by your first comment tho, about more notes in circulation. A redenomination CUTS the notes immediately so if there is right now 30 trill in circ, and they redenom by 3 zeros, that means now there is only 30 billion now in circ.

Well, if theres 30 trillion notes in circulation (in iraq) and they send out the new denom notes wouldn't that add to the original 30 trillion notes out there since theyll coexist? I guess Shabs will wait till the numbers are right before releasing the new notes hu.

Example: (1)-25,000 note will coexist with (1)-20 new note & (1) 5 new note? Therefore adding 2 new notes into the circulation.

Ignore my 500 note question, I totally forgot my own view on the 3zeros vs. moving the decimal

by therealbutterfly Fri Mar 02, 2012 6:34 pm

hithere wrote:
therealbutterfly wrote:
hithere wrote:A RD makes sense. But with more notes out in circulation the less value the IQD will have. So how will Iraq keep up their value with more notes (even if they have a time period to turn in the OD)?

And will the 500 note have the same value as before the new notes are introduce?

Has any other country done this? Just RD a few of their notes and not all of their currency?

ALl notes, ALL bank acts, ALL salaries, ALL prices are affected in a redenomination.
a 500 dinar now will be the same as a new .50 dinar. Not sure what you mean by your first comment tho, about more notes in circulation. A redenomination CUTS the notes immediately so if there is right now 30 trill in circ, and they redenom by 3 zeros, that means now there is only 30 billion now in circ.

Well, if theres 30 trillion notes in circulation (in iraq) and they send out the new denom notes wouldn't that add to the original 30 trillion notes out there since theyll coexist? I guess Shabs will wait till the numbers are right before releasing the new notes hu.

Example: (1)-25,000 note will coexist with (1)-20 new note & (1) 5 new note? Therefore adding 2 new notes into the circulation.

Ignore my 500 note question, I totally forgot my own view on the 3zeros vs. moving the decimal

Yes, there would be technically 2 notes now but you see that the 30 trillion is how many dinar are out there. not how many notes. So when a redenom happens, and in this case, a 3 zero redenom, it automatically makes that 30 trill into 30 bill. Not sure how to really explain it better than that but its a simple accounting change honestly.

by PrudenceArt Fri Mar 02, 2012 6:53 pm

I decided that I am not allowing the cancellation of zeroes only the rv of exisitng currency to above $5 per dinar

by **Terbo56** Fri Mar 02, 2012 7:09 pm

PrudenceArt- Great attitude!! You go, brother man!! Very Happy

Sorry about the gender mistake!!

by hithere Fri Mar 02, 2012 7:21 pm

therealbutterfly wrote:
hithere wrote:
therealbutterfly wrote:
hithere wrote:A RD makes sense. But with more notes out in circulation the less value the IQD will have. So how will Iraq keep up their value with more notes (even if they have a time period to turn in the OD)?

And will the 500 note have the same value as before the new notes are introduce?

Has any other country done this? Just RD a few of their notes and not all of their currency?

ALl notes, ALL bank acts, ALL salaries, ALL prices are affected in a redenomination.
a 500 dinar now will be the same as a new .50 dinar. Not sure what you mean by your first comment tho, about more notes in circulation. A redenomination CUTS the notes immediately so if there is right now 30 trill in circ, and they redenom by 3 zeros, that means now there is only 30 billion now in circ.

Well, if theres 30 trillion notes in circulation (in iraq) and they send out the new denom notes wouldn't that add to the original 30 trillion notes out there since theyll coexist? I guess Shabs will wait till the numbers are right before releasing the new notes hu.

Example: (1)-25,000 note will coexist with (1)-20 new note & (1) 5 new note? Therefore adding 2 new notes into the circulation.

Ignore my 500 note question, I totally forgot my own view on the 3zeros vs. moving the decimal

Yes, there would be technically 2 notes now but you see that the 30 trillion is how many dinar are out there. not how many notes. So when a redenom happens, and in this case, a 3 zero redenom, it automatically makes that 30 trill into 30 bill. Not sure how to really explain it better than that but its a simple accounting change honestly.

Im confused now. Always thought that it matter how many notes a country had out in circulation to determine true value. We can't just print out $100 bills to pay off our debt (though it seems like our govt does haha). So how can a redom not effect the rate of a currency. Unless thats the reason shabs wants to start at a 1:1 exchange rate just to deal with the larger notes for the time being. Can they really just say....ok we have a new rate for our currency, dont mind the trillions of notes we have out there......

by CaptnJerry Fri Mar 02, 2012 7:37 pm

Old dinar (what we hold now) will have an exchange rate of .00086 = 25,000 IQD note

New dinar (the lower denoms not yet released) will have an exchange rate of .86 = 25 NID note

Now you see they are even/have the same value, NO depreciation what so ever! 25,000 IQD note = 25 NID note

The lower denoms will be released by way of change or pay when checks are cashed... The banks will not give the old dinar back in change... So, the number of dinar in circulation will automatically be reduced...

CJ

by fang2 Fri Mar 02, 2012 7:50 pm

TRB I will give you a excellent reference> You are tops for the job!!!!!!!!!

by HeadNotTheTail Fri Mar 02, 2012 7:59 pm

By the WaY Art is a Guy,,,Anyway I like this post, Thought I would share it with you, Key Thing here is Tariffs Law Just to give you peace of Mind that they still are striving to Be apart of World Markets, and that is a great thing, Hey Fang,Terbo,Butterfly,Punisher,P.Art, Good to see you guys tonight. enjoy the Post.

3-2-2012 SWFloridaGuru: This month should prove to be an exciting one. There are issues scheduled to be addressed we have waited years for. In 4 days we will see the activation of tariffs law which will contribute to helping Iraq become more competitive to world markets.
They are also putting the finishing touches on the HCL. The CBI is awaiting approval from the Federal government to proceed with the implementation of the deletion of the zeros project. Once approved they will delete the zeros from the currency, release the lower denoms which will run concurrent for a year along with the larger notes we have. When phase 2 begins we will be given 2 choices: Trade in for lower denoms which we can hold indefinitely or cash out. We look for phase 2 to begin shortly and for Iraq to host the upcoming Summit with a tradeable currency, be released from Chapter 7 and enter the WTO with full ascension. Just because we cannot pinpoint the exact timing of the RV does not mean we can’t be encouraged by the progress being made, the general direction Iraq is headed and follow the steps we believe are all in preparation of this monumental event. We are close.

by hithere Fri Mar 02, 2012 8:05 pm

Got it. The new notes will be given out once the old notes are turned in. Dang, thought there was a new hope for a RV outweighing a RD.

by **Terbo56** Fri Mar 02, 2012 8:07 pm

Fang2- She's got my vote- Hands down!! Very Happy

by HeadNotTheTail Fri Mar 02, 2012 8:11 pm

There Totaly is , This post is just telling you that you will be able to get Lower D. so you could hold on to them, the RV should happen Before the Summit , and I believe he had an article here about the summit on 29 of march .... bigsmile

by **dinarstar** Fri Mar 02, 2012 8:14 pm

I want TRB to take that job...today.... because this all is giving me a big bad head-ache....in my head!! say what?

by fang2 Fri Mar 02, 2012 8:23 pm

Terbo she would take them hands down by storm!!!!!!!!!!!!!

by Guest Fri Mar 02, 2012 11:46 pm

HeadNotTheTail wrote:By the WaY Art is a Guy,,,Anyway I like this post, Thought I would share it with you, Key Thing here is Tariffs Law Just to give you peace of Mind that they still are striving to Be apart of World Markets, and that is a great thing, Hey Fang,Terbo,Butterfly,Punisher,P.Art, Good to see you guys tonight. enjoy the Post.

3-2-2012 SWFloridaGuru: This month should prove to be an exciting one. There are issues scheduled to be addressed we have waited years for. In 4 days we will see the activation of tariffs law which will contribute to helping Iraq become more competitive to world markets.
They are also putting the finishing touches on the HCL. The CBI is awaiting approval from the Federal government to proceed with the implementation of the deletion of the zeros project. Once approved they will delete the zeros from the currency, release the lower denoms which will run concurrent for a year along with the larger notes we have. When phase 2 begins we will be given 2 choices: Trade in for lower denoms which we can hold indefinitely or cash out. We look for phase 2 to begin shortly and for Iraq to host the upcoming Summit with a tradeable currency, be released from Chapter 7 and enter the WTO with full ascension. Just because we cannot pinpoint the exact timing of the RV does not mean we can’t be encouraged by the progress being made, the general direction Iraq is headed and follow the steps we believe are all in preparation of this monumental event. We are close.

Headnotthetail, thanks for that informative post happydance