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The Iraq Dinar RV Summed Up With One Question

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The Iraq Dinar RV Summed Up With One Question Empty The Iraq Dinar RV Summed Up With One Question

Post by RamblerNash on Thu Jul 07, 2016 11:57 am



Where are the funds going to come from to support the Guru's claims?



Garry, ADMINBILL, RayRen, Fisher, Bruce, Frank26, BGG, Poppy3, IKO, elmerf123456, and Art, care to answer that one single question in detail?
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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by roxy22222222 on Thu Jul 07, 2016 12:18 pm

The Iraq Dinar RV Summed Up With One Question Wilbur_thinking__animation_by_theendxtypeanime
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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by Ssmith on Thu Jul 07, 2016 4:04 pm

Here ya go!




Enorrste, Math, and the RV (12/13/11)

Recently a discussion about the likelihood of a lop or an RV was held including dinar personalities like Tenmillion, JayP, Kaperoni, and Enorrste.  During this discussion Enorrste, the biggest windbag in the dinar world in my opinion, broke down the math for Iraq’s projected oil income.  He was explaining that when Iraq reaches 5 million barrels a day in production their oil revenues are going to skyrocket to the point that they will easily be able to cover a $3 RV, and in fact could very well see their currency float on up to $5, $6, $7 or more as their economy grows.  Here’s how he broke it down.

“Let’s just say it cost a dollar instead of a buck and a half … to make it simple … a dollar to create a barrel of oil. And they’re gonna double from two and a half to five million barrels.  Take that times a hundred dollars per barrel today, that’s five hundred million dollars a day. Take that times 365 … you’re looking at 1.825 trillion dollars a year in income, and now you have to take off five million dollars a day for your cost … of a dollar a barrel. So what you’re gonna end up with is about a million … I mean a trillion eight NET! Net money per year.  You think they can’t afford a three dollar currency?”

Currently Iraq is producing about 2.5 million barrels a day for a total of $80 billion a year in oil revenues (averaging about $87/bl) which is roughly 2/3 of their GDP.  Steve (Enorrste) anticipates that after the RV their production will double to 5 million barrels a day and their oil will sell for about $100/bl.  According to his calculations their revenues will therefore increase from $80 billion a year to $1.825 trillion a year.
 
Now if you have a calculator handy you might want to run through these numbers with me to check what he’s saying.  I can assure you that a GDP approaching $2 trillion a year would change my opinion about this investment drastically, and I doubt that I’m alone on that.  So what numbers do you come up with?  Here’s what I get.

 5 million barrels a day
x $100/bl
= $500 million a day
x 365 days
= $182.5 billion/year

That’s right.  $182.5 billion a year, not $1.825 trillion a year.  It seems that Enorrste accidentally added a zero into his calculation.  Now I understand that anybody can make a mistake.  I make them all the time, and so do you.  But when you are presenting yourself as somewhat of an authority on the dinar and using numbers to support your premise, I think it’s pretty important to check your math first.  And this wasn’t a typo or a written error.  This was an emphatic statement that he made in a discussion, and he said the word “trillion” twice.  Yeah, it’s just one zero off, but that zero throws the total off by over $1.6 trillion a year.  That’s a damn big zero, wouldn’t you say?

This isn’t the first time that Steve has produced some incredibly fuzzy RV math.  Last year he presented a case for the RV that prompted a dinarian named expat to respond:
As Enorrste points out, the CBI has $53 Billion in foreign currency reserves, which as he states is 700% (7 times) the value of the IQD in circulation (7.5 trillion according to him). Then he points out that the US only has 15% in reserves to back up the dollar it has out, Now, he points this out as if it is the proof in the pudding.

If all that is true and the CBI RVs to a rate of 1:1 to the USD…then they will have $53 billion to back up $7.5 trillion. That is less than 1% (0.7% to be precise) compared to our 15%. At $3.33 you can triple the difference, which makes it even more unlikely. These are his numbers, not mine.
Here is my question: Enorrste points out that the Iraqis all say they want a stronger currency– a point with which I agree

 — however, how is this accomplished by setting a rate that reduces the percentage of foreign currency reserves they have to back up the Dinar from 700% to 0.0021%, which is what will happen if they RV to $3.33 as Enorrste states they will?

I don’t post these things to ridicule Steve but to establish a very important point.  Many people are swayed by guys like Frank Villa, Checkmate, and Enorrste because they are gifted in the art of elocution.  They have a smooth speaking style that gives the unsuspecting a false sense of security about the information they’re receiving.  But when you break down the actual content of the information the substance is sadly lacking.  I would be delighted to find out that the new IQD lower denoms are in fact already loaded into the ATMs in Iraq as Checkmate says.  I would love to believe that Frank’s Arabic translator Delta has the lowdown on the impending $.86 RV.  And of course I would love to believe that Iraq’s oil revenues will soar to $1.82 trillion a year when they double their production, but the facts just aren’t lining up behind these statements folks.  It’s time we stopped listening to these guys and started doing some honest due diligence for ourselves.  After all, it’s our hard earned money we’re talking about.  Do we really want to entrust it to the expertise of these internet armchair currency experts who most of us will never meet face to face?    
             
The Iraq Dinar RV Summed Up With One Question 118a6-sam28229

https://iraqcurrencywatch.com/enorrste-math-and-the-rv-121311/
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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by Ssmith on Thu Jul 07, 2016 4:14 pm

Here's another explanation:


07/29/2011 (Post at OOMF, originally from March 2011 - On How Iraq Can Afford to RV)

irst off, I’ll use the exchange of a 10,000 IQD (Iraqi Dinar) note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD (US Dollar) and IQD (Iraqi Dinar), that is given a two-tier payout, and a 2% bank spread.

What You Will Receive:
If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.

What Your Bank Will Receive:
Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.
Read More button on right

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive:
First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.

Oil Now Enters the Picture:
At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI (Central Bank of Iraq) in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money:
The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI (Government of Iraq) actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:
■DFI (Development Fund for Iraq) Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.
■CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated.
■Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.
■Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets.

There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

■Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10
■Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out.
■US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000
■CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors”
■Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20
This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!



https://www.dinardaily.net/t1689-what-will-happen-when-you-cash-in-you-dinars-copied-from-dinar-recaps
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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by RamblerNash on Fri Jul 08, 2016 10:32 am

@Ssmith wrote:Here's another explanation:


07/29/2011 (Post at OOMF, originally from March 2011 - On How Iraq Can Afford to RV)

irst off, I’ll use the exchange of a 10,000 IQD (Iraqi Dinar) note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD (US Dollar) and IQD (Iraqi Dinar), that is given a two-tier payout, and a 2% bank spread.

What You Will Receive:
If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.

What Your Bank Will Receive:
Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.
Read More button on right

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive:
First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.

Oil Now Enters the Picture:
At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI (Central Bank of Iraq) in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money:
The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI (Government of Iraq) actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:
■DFI (Development Fund for Iraq) Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.
■CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated.
■Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.
■Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets.

There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

■Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10
■Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out.
■US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000
■CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors”
■Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20
This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!



https://www.dinardaily.net/t1689-what-will-happen-when-you-cash-in-you-dinars-copied-from-dinar-recaps


The figures in this article are based on a %1,000 increase from the approximate current rate back then, and as it is today, but does not address how they are going to fund the %1,000 increase.

Now they do include this statement:

"
That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI (Government of Iraq) actions, IMF actions, World Bank actions etc.)"

But they have failed to provide any documents to support that claim.


https://www.dinardaily.net/t55679-dinar-rv-documents
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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by Kevind53 on Fri Jul 08, 2016 9:50 pm

I remember that article, some pretty convoluted thinking. Makes for a good story, and it's perhaps the only story that ever sorta kinda made sense. Still, it does not stand up to close scrutiny and none of it can be verified.

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The Iraq Dinar RV Summed Up With One Question Empty Re: The Iraq Dinar RV Summed Up With One Question

Post by RamblerNash on Wed Jul 13, 2016 11:15 am

.
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