TD -- With a Clarification post -

I'm not going to post any clarification other than here today at DD. I know increasingly Dinarians are coming here to shop for the "real juice" after reading the BS on other sites. I probably won't post much at all in the next few months because there's really no more "tell all" news ( I was told Sunday) so enjoy your holidays, So sit back enjoy the ever lasting entertainment news by other gurus who will make up stuff thru the rest of 2014. BTW, did you get the doozy about Iran ?? Oh yes, now we can proceed with the RV, we were waiting for Iran !!! Give me a break !
 
Many have been asking the link or article from which I derived my post & conclusions written. I'm going to lay it out here. I'm sure most of you saw the article (it was posted by Ponee here on DD  https://www.dinardaily.net/t29437-cbi-confirms-a-proposal-to-produce-a-50000-bank-note-and-coins-next-year ) but I know some did not interpret it well since the translation was spotty. that's why I contacted my source and reviewed the details to get clarification.
 
First of all the article (parts of) :
 
Central Bank : We will produce next year, the currency (50) thousand dinars and small coins in Arabic & Kurdish 11/22/ 13

The governor of the Central Bank Abdel Basset Turki said in an interview to the (long-Presse).

Turki said " the largest group of coins that are available now are the 25K and the purchasing power , it does not exceed $23, so there is a more of a proposal to the Central Bank, to put coins larger than the existing , such as issuing currency up to 50K dinars.

Turki said the Central Bank is also working on a version of small coins, the lack of these categories that facilitate the process of dealing and purchase between the citizen & Iraqi market , which was dealing with the Central Bank, noting that the "coins will be in Arabic & Kurdish".
 
OK Now the translation : First of all Turki is referring to facilitating the marketplace by doing currency reform next year and introducing a new 50 dinar note (NOT 50K) as well as small denoms, coins, etc. He goes on to relate the value of the 25K note as = approx. $23. Therefore , the 25K note will become a NEW 25 DINAR NOTE (after removing the zeros from the currency). The new 50K note will be 50 DINAR = approx. $46 . Then , as they raise the rate ( unknown at this time) , there's of course the need for small coins.
 
I got the clarification I needed because the translation was lousy and I reported accurate conclusions which again are ;
 
1) Nothing will happen till 2014. BTW, just look at the article this morning from the CBI that says that again . The CBI stated that "Until further laws are in place they will not move. Parliament is on vacation and remaining laws need revision & implementation.
 
2) Upon enactment , the zeros are dropped and the 25K=25 dinars. 50K=50 dinars, etc. and they adjust the rate. Follow RELIX's write up and you'll get the idea. Coin use then are needed in the marketplace.

YES, THE DREADED LOP OCCURS ! I titled my post well I think "You can't handle the truth". Most won't be able to cope until D-Day.
 
3) They adjust the rate as well and after spreads we end up between a 10%- 35% Net. More probable is 15-25%.
 
As I stated the other day the tricksters (Gurus) are already at it saying 'wonderful news, the ala Kuwait/China deception is out , the RV is imminent. Well, think again , you guys are the real hoaxsters. And I'm sure everyday for the rest of the year you'll be calling it done. Yet the sheepie addiction on hopium is alive & thriving !
 
Also, please do some research on your own and look up ANY nation (in past history) who has had lots of zeros attached to their currency. Turkey, Bolivia, many . In EVERY CASE A LOP was done so why would you find it difficult to believe in this case ? And really this is nothing new, there have been countless articles about deletion of the zeros articles now for quite some time. What do you ACTUALLY believe they are referring to ? No it's not removal from the .0008 , giving you 86 cents as many Gurus want you to believe. It's the 3 zeros from the end of the notes. And that's in addition to all the other tidbits the Gurus put out to make this investment sound as a "blessing". "Bush said", "The UST owns Trillions of Dinar" . Really ? Where's the proof ?
 
C'mon guys, of any group I've found Dinar Daily to be most grounded of all. Think with common sense.
 
Again Kudos to RELIX, he's spot on !! And Relix, like you I've been ridiculed, threatened, Gee Whiz! Take away their $$ millionaire status and Whoaa !
 
Look, I really am not hoping to get you on my side. I have no Guru egos here . If you feel I'm completely wrong, fine. Go out and buy more reserves. I posted my findings. Kevin is right "We shall see". Yes, we will. Remember my posts.
 
You guys rock ! Have Great Holidays. As I stated you can't say no one told you. RELIX did, All I did was to confirm it.
 
REGARDS, TD

Good post, thanks. The original translation, as I said, was just not adding up. The thing that is still niggling at me however is the fact that the cause of the low value of the dinar is not the same as with other currencies. As I understand the history of the currency in other countries that have lopped, it was after they had brought a period of runaway inflation under control. That is not the case here. The value of the IQD was artificially set in a war torn country by outside agencies. Yes, they did have some inflation before the war, but even that was caused by artificial conditions, i.e. sanctions imposed by outside agencies, and not by any sort of inherent weakness in their economy.

That said, I wonder if it is accurate to compare them to the experiences of other countries that have lopped? Do I expect a $30+ return? Not a chance. However I did some number crunching a while back and using the typical ratios found between reserves and M2 for western countries seems to indicate that, in theory at least, Iraq COULD support a value in the range of $3.50/USD without a LOP. Now I am not saying that will happen, but it is, I think, possible. What will happen? Who is right? Well, I can tell you the hypsters over in guru world are NOT right. Maybe Relix is correct despite the stinky attitude shown in his OP, maybe Kap is right, or may we're all barking up the wrong tree. The way I figure it though, worse case, I walk out a little bruised, banged up and smarter with my original investment intact. Best case, I walk out a very happy man. Either way, I walk out head held high because I chose the high road.

Check out the article "Delete the 3 zeros" by Alan   ... found here.... https://www.dinardaily.net/t29494-delete-three-zeros-redenomination#195102 which shows a world history of LOP's.  You are right Iraq was given a program rate however it is also true that Saddam's administration artificially set the rate at $3 + which was not endorsed by the world community either.
 
The one tidbit that the Guru's dreamed up in response to a possible IQD LOP has always been "No hyperinflation in country therefore it doesn't apply to Iraq".  I've read numerous times where Okie (& other gurus) used that rebuttal.  Yet hyperinflation did not exist in many of the countries that LOP'd before either.    So it's another "made up" argument of gurus to add validity to their "blessing" argument to hold water.
 
KAP like others who run sites by definition of site owner cannot endorse LOP , it just doesn't go together.

if this. is correct and knowing mid est mind set it could be true  but they would have to raise the value of the dinar at the same time or they are screwed if they want to do any type of international bus

Actually FG, if memory serves me correctly, they were all victims of hyperinflation, and lopped after it was controlled. Sometimes it was a number of years before they were confident enough to lop, but I don't remember finding one that did not have rampant, out of control inflation in their past.

SO have we found an answer on the warka accounts and whether or not the lop could affect the balance of the accounts?? It seems like to me the balance would still be affected.. but I am curious to hear other peoples points of view on it.