Does Shabs have a dilemma?

Let's pretend you buy ice cream cones in Bagdad, and you buy them for $1 USD - let's further pretend you are happy to live in Bagdad and use American Dollars because you know the ice cream guy will take them on the street.

Now, one day the government wants to change the value of the IQD and make it so you will use them and stop using USD (because you don't like carrying shoebox of paper around it's so inconvenient all that IQD). They want to RV, to say, 3 IQD to 1 USD. But, there's a problem with educating the populace overnight of this so they decide perhaps, Therefore, the Govt decides to make the USD and IQD "appear to have the same value" so you will use 1 IQD for the ice cream cone and stop using the $1USD. (Maybe if we 'appear' to make it 1:1 it will be a good way to transition to the 'real' value.)

However, the Iraqi CBI/gov't have a problem - the value of 1 IQD is three times more valuable than $1 USD, and you buy an ice cream cone everyday for $1 dollar, but now, unbeknownst to you, one IQD is worth three times more; the gov't tells you the new denominations are out and to be used but you are afraid that the guy selling you ice cream cones will not accept them, or, he will not give you full credit for their 'new' value.

….now the plot thickens - the gov't doesn't want the price of the ice cream cone to go up - because after they 'rv' to, 3:1, the issue is that the ice cream guy should take one IQD and give you 'change" of .75 IQD - because you used to pay one dollar, now you only owe the ice cream guy 1/3 of an IQD, but you were told that 1:1 - now Shabibi has a BIG problem called 'inflation' when all the vendors - to the best of their limited understanding, they only thing they naturally want to do is begin charging 1:1 exchange for the ice cream cone (which effectively triples the cost of the ice cream cone) and so Shabibi has to 'educate' the public of NOT ONLY the new denoms, BUT ALSO, how to make GOOD change, so the worst fear of CBI which is INFLATION does not backfire on them when YOU GO TO BUY YOUR ICE CREAM CONE AFTER THE RV AND THE VENDOR CHARGES YOU THREE TIMES MORE FOR THE SAME ICE CREAM CONE YOU ARE USED TO PAYING $1 USD YESTERDAY AND YOU DON'T UNDERSTAND IF THE VENDOR IS SCREWING YOU!

Shabs is faced with a big dilemma - does he go do a 'transitionary value of 1:1, or does he cut to the chase and go straight to the new 'real' value of 3:1? The worst case is that overnight - Shabs is credited for the biggest price jump in a decade, and it comes back to bite him, or best case, the vendors inside will not be short changed by their suppliers and will accordingly pass on the 'new' pricing structure to their customers - but what about the customers? How many boys/girls buy ice cream cones today and get ripped off by THREE TIMES? haha - now i know how sectarian violence starts....


THAT'S WHY THERE'S SO MUCH CONFUSION SPAWNED BY THE MEDIA - IT'S CBI'S ATTEMPT AT USING PUBLIC EDUCATION TO NOTICE A CHANGE IS COMING (COLORABLY AS NOT TO ALARM), BUT ALSO GUARD AGAINST THE ICE CREAM GUY NOT ADJUSTING HIS PRICES TO THE REFLECT THE 'NEW INTERNATIONAL VALUE' (ON TOP OF THIS THE VENDOR DOESN'T EVEN TRUST THE GOV'T BECAUSE HE'S BEEN LIED TO IN THE PAST).

DOES SHABS HAVE A LOT ON HIS PLATE OR WHAT?

….gotta run now, got a date with Cold Stone Creamery Mint Chocolate Chip with Caramel in a waffle cone - It's $4.19 USD 'pre-rv OR 4902.30 IQD. Tomorrow it could be 1 IQD or 12 USD or 1 Swiss Gold Coin, judging by today's market, who knows, so i better run! BECAUSE CHANCES ARE THE KID AT THE STORE IS IN THIS DINAR THING AND HE COULD ASK FOR 4902.30 IQD FROM ME WHEN IT'S NOW 3 IQD......

Now that was a well thought out post, best one on here today!

Very well said!