Tony spouting off again

12-30-14 TNT Tony: We are hearing from Iraq that they are all done and they as just waiting for Abadi’s go signal. On the US side, some powerful people have been promised this will happen by the end of the year, for legal and other reasons. They have stated when it becomes law on the 1st, this will happen – if not before.

Iraq has been ready since the first of the month, and announced to their people they would do it on television and in the papers. There is nothing left that has to be done before this happens. There is a contract rate on the dong as well, and the price I heard was $2.27. That is a great rate. We believe the international rate is $1.02, but won’t be surprised at .47. We’re looking good, it’s still Christmas time, and we can still celebrate.

Still sticking with the story that the dong is tied to the dinar?

I think Tony's dinar IS tied to his 'dong'!

I ask it because so much of this seems to get intertwined, muddled and mixed up.

I know I know, I am overthinking this crap and it really doesn't matter in the end because the sheeple will uncritically do what they are told regardless of whether it's coherent or not.  (I cite the directive to send thank you notes to DC's wife from the Monday call.)

As I listen, it would seem that RI, RV, ER, CR, MR, GCR and a couple of others are used interchangeably.  (yeah, there were a couple of new ones but I forgot what the acronyms were)

But I don't think they actually have the same meaning.  I know, I am relatively new around here, and am picking up on the nuances of things slowly, but this one just nags at me.

My understanding:

RI - The Iraqi dinar was put in place of the Saddam Dinar and the Swiss Dinar that was being used in 2003/2004.  When it was brought into existence, printed, distributed and activated, it was said to be ReInstated.  There was once again an Iraqi Dinar.

Due to attempts to keep counterfeiting, money laundering, inflation, and for other reasons, the dinar was artificially priced on the open market and is still 1166 per USD.

RV - The ReValue of the dinar would represent a valuation of the dinar as a representation of the assets in Iraq.  Oil, gold, trade, manufacturing.. and such.  It apparently is considered a revalue because prior to Iraq War II, Saddam had the price set in the $3.00 range.  (And supposedly a barrel of oil was $30)  Since the current value is so much lower, some entity is suddenly supposed to make it worth what it had historically been.  This is an Iraq event and for no other country.

GCR - Supposedly there is a move afoot for a number of countries to change the value of their currency relative to other currencies.  To listen to gurus, this will be done in phases with countries grouped together to change their value at the same time.  Those cooperative agreements to do it with each other puts those currencies in a 'basket.'  The baskets then execute their changes to their currencies at an agreed upon time.  It is rumored that the first basket contains the dinar, dong, zim, rupiah, and at other times you will hear of other currencies supposedly added.  This differs from the Iraq RV because it is changing the value of several currencies both up and down.  Iraq's currency may be made more valuable as a result.  By agreement, the currencies won't go until all the currencies in that 'basket' go at once.  (I am unclear as to who the governing/coordinating body is and lately that has gotten muddled.  I would imagine that the IMF would be that body since it touches so many currencies already.  

Economic Reform - Could mean anything really.  I haven't seen it really defined.  Maybe I am just not looking at the right posts or something.

Currency Reform - Possibly the lop of the three zeros.  (Either off the back end of the note denomination, OR, from the front end of the exchanged value  .00086 to .86 some say.)

Monetary Reform - Could mean a lot of things from percent in reserves to the accumulation of gold to reforming the basic charter of the CBI I guess.

Market Reform - Could mean anything from attempts to diversify the exports to reduce the fluctuations that come with being based on oil to customs and duties policies to make imported goods more expensive than locally made goods of the same nature.



Anyway, I need to shut this posting for a bit.  Please understand that I am really only putting out my (ignorance) understanding on what the various terms imply or mean so I can keep this straight.  Corrections and updates are welcome.

What got this started is Tony's schtick that the RV is done (October 31, 2014 and hundreds of thousands of people already cashed out.) but not rolled out incountry or worldwide and yet the dong is also waiting for Iraq so they can RV at the same time.  (Fewer people getting cashed out but there are some who have)

Wouldn't the multiple currency RV pretty much mean the GCR?  Or why the hell would VietNam subject themselves to Iraq's timing?  Or the others in the 'basket?'  

(No, I don't believe either Tony or DC about fighting back and forth between the US and Iraq that is holding this up.  Financiers working with financiers are not subject to petty back and forth 'gotchas' as Tony would have you believe.  Nor would the banks keep paying for the infrastructure or people to be on immediate call.  That's in spite of the reality that Iraq cannot take their budget of billions and suddenly arbitrarily declare their currency 1000s of times more valuable thereby making their budget trillions.)

The acronyms cannot by definition be interchangeable yet we have so many who try to do just that

The gurudiots use RI when they want to use Kuwait as an example, but they are comparing apples to oranges when they do so. Kuwait was a temporary change in value for strategic reasons, followed by a restoration of that value using the same notes.

The IQD is a new currency supporting the economy of what is essentially a new country. While I believe it's value was set artificially low, and that, in time, we will see that value increase, I see several things standing in the way, including final passage of needed laws. However the biggest issue standing in the way at this time is ISIL and the large quantities of IQD they have apparently spirited away. ISIL does appear to be on the run, but they still hold huge swaths of Iraq, and, as far as I know, the stolen dinar has not been accounted for.

Will we see a positive change in value? Yes, I think so, and it COULD be substantial, but we are just as likely to roll snake eyes. Will it be soon? I would be very surprised, but maybe.

Now about the GCR. Total and complete hogwash! The whole concept is just silly to anyone with even a modicum of financial acuity. It just makes absolutely no economic or financial sense. Nor can the Basel III compliance claims be substantiated in any way. Now in one sense, the world's currencies are already tied together in the sense that no one currency can exist in a vacuum, it can only have value in relation to other currencies. Even IF the whole world were tied to a single (say gold) standard, each currency would only have value in relation to other currencies and what people were willing to pay for that currency.

Thank you so much Kevin.  That really put some things into perspective for me.  And let me know that I am not completely looney.  

In the Kuwaiti example, I suppose you could say that both the currency and the rate were reinstated.  Yes, apples and oranges.  The RI for rate didn't wait for 11 years though.  

Saw on a quick glance from ssmith that today's call has both an RI and RV in it somehow.  Can't wait to see what tortured logic this brings.

Thank you again