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mudbug
03-17-2005, 09:49 PM
I started a new thread on this from my post in the last rumor thread. Let's find ) There are now more than 16 trillion NID in circulation (as of Jan 30th 2005)
2) CBI the central bank of Iraq(their equivalent of our Fed) is releasing more and more Nid to compensate for NID leaving Iraq (7 trillion in-country)
3) The supply is being diluted on a huge scale vast quantity of new dinars entering the economy, devalueing the existing stock
4) The NID is one of Iraq’s chief exports for USD revenues(second only to oil) they figured that out at the end of December 2004
5) The Ministry of Finance and CBI’s job is to control
the rate(1460) keep it
stable and to avoid any spikes or huge jumps in value.For this to happen many in the cabinet(MOF) would lose their jobs
and would unhinge Iraq’s economy.Translation: keep the NID off the market at CBI’s managed fixed rate of exchange for years (1460-1000)
6) The numerical value of a countries currency is irrevelant.just look at Japan
Less than a penny per Yen with a 3.5 Trillion dollar GDP and GDP per cap of $28’000
100 yen is looked at as 1 dollar,1000 yen= ten dollar,5000=50 dollars 100000=100 dollars
an increase in a countries economy does not neccessarily translate to an increase in the value of its currency
what is primarily important is not the value of the currency in parity to the USD,but how many
notes one would recieve monthly or yearly in salary and the PPP(purchase power)
look at it this way if the NID rate was to increase to 1000NID/1USD a 1000 note would be worth
$1 USD an Iraqi blue collar worker making 96 USD monthly(projected GDPper cap for 2006)
or 140’000 NID per month is not concerned what the numerical value of the currency , but what his purchase power is with the 141 -1000 notes he recieves each month
The government is fully aware of the present currency note model and plans for its future along with the IMF & World Bank.

Countries currencies do not spike to 3000% for a reason
#1 & 3 are a major problem that should concern anyone ‘investing’ in the NID
Question: why is the World Bank and IMF not addressing this?(vast quantity of NID being sold to speculators) perhaps #4 is the answer

Posted by: whistleblower - 05:01 PM - 03/17/2005
out if this is true.

Stevo
03-17-2005, 10:16 PM
I'm not worried! Georgie, Dickie, and Paulie will take care of us!

gbarton13
03-17-2005, 10:23 PM
Please list your sources and websites for your claims...especially the 16 trillion dinar in circulation as I have never heard that as well as the CBI just printing dinars because they are leaving the country.

mudbug
03-17-2005, 10:33 PM
Hey Gbarton, This came from a posting in king of fools that another IIF member told me about. Go to "king of fools new iraqi dinar" in your search engine. It will come up as that title, enter the site and go to the last posting. I have no idea as to the validity of these claims, but it behooves us to do due diligence. I really don't have any information other than that but I thought with the talent in this forum we should be able to investigate these claims.

gbarton13
03-17-2005, 11:14 PM
Could you at least post the link please...

mudbug
03-17-2005, 11:19 PM
The link is posted by Mill2B in the other thread. Try this http://www.king-of-fools.com/blog/weblog/posts/172. Sorry for the confusion in 2 different threads.

Shea
03-21-2005, 11:13 AM
Some correct statements and some incorrect statements.

True: The value of the NID does not necessarily increase with the ISX.
False: A good economy will not help the NID.

The NID will become more scarce with time as Iraq buys it back to pay people for oil. The talk now is of an "Alaskan oil" style entitlement. If the government wants to pay people Dinar for the oil extracted from their own country they will have to buy dinar. "Why not print more?" (straw-man argument coming) Please... take an economics class! :D

Why do we budget in this country if we could just print more?

Because it doesn't work.

Shea