RV or LOP - Run the Numbers

[Madison49]

Let’s take a look at the numbers.

Now please understand I am using the RV numbers that have been flying around on the forum.

If Iraq has $30,000,000,000,000.00 (Trillion) Dinars in circulation, and some say it may be $32,500,000,000,000.00 (Trillion).

So let us do the math,

Now if Iraq RV'd to the below 2 scenarios, at $3.86.

1. If the Dinar revalues at what some predict may be the magic number of $3.86 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $115,800,000,000,000.00 (Trillion) to cover it.

That is One Hundred Fifteen Trillion, Eight Hundred Billion.

{So if you have $1 Million Dinars it will be worth $3,860,000.00}.

2. If it is devalued (loped) and revalued to the same magic number of $3.86 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $115,800,000,000.00 (Billion) to cover it.

That is One Hundred Fifteen Billion, Eight Hundred Million.

{So if you have $1 Million Dinars, it becomes $1 thousand and will be worth $3,860.00}.

Now if Iraq RV'd to the below 2 scenarios, at $0.84.

3. If the Dinar revalues at what some predict may be the magic number of $0.84 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $25,200,000,000,000.00 (Trillion) to cover it.

That is Twenty Five Trillion, Two Hundred Billion.

{So if you have $1 Million Dinars it will be worth $840,000.00}.

4. If it is devalued (loped) and revalued to the same magic number of $0.84 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $25,200,000.00 (Billion) to cover it.

That is Twenty Five Billion, Two hundred Million.

{So if you have $1 Million Dinars, it becomes $1 thousand and it will be worth $840.00}.

Out of the above 4 scenarios above, which one is more plausible to happen?

And how will any of the above effect your investment?

Now Scenario #5 is that they reprint there money, which means we (Cash holders) are all out of luck.

Please run the numbers yourself, and decide for yourself. I for one am losing faith in the Dinar. What a waste of time..... I do not see any miracles happening with it. But being that I am a "Newbie" I will sit on them and hope for the best.

Madison49

[bbbait]

Very interesting... Thank you

[BIG_JOHN]

These are the exact things that keep doubt in my mind as well. However, you have to remember that Iraq will not have to back their currency 100%. Plus, can you tell me what the actual M2 is right now? Also, there is much more involved than just Iraq revaluing their dinar. If not already, take a look at the INTERVENTION thread started by bambaboo and DollarSign's Connections thread. Looking at all of the current events and how they affect each other throws a new light on the subject of Iraq. Plus you need to remember that Iraq is sitting on 300 - 500 billion barrels of high quality oil. Not to mention their Natural Gas, Gold, and water commodities.

With everything that is going on in Iraq today, it is very encouraging. There's no reason to quit now unless you absolutely need the extra cash. These are just my thoughts and I hope this helps.

[Toothpik]

hang in there madison.......ive been on this ride ince early 05.......i figured it as a 10 possibly 15 year investment. I get tired of the rollercoster too.......take a lil time off from checking on it so much and you will feel better.

[Madison49]

These are the exact things that keep doubt in my mind as well. However, you have to remember that Iraq will not have to back their currency 100%. Plus, can you tell me what the actual M2 is right now? Also, there is much more involved than just Iraq revaluing their dinar. If not already, take a look at the INTERVENTION thread started by bambaboo and DollarSign's Connections thread. Looking at all of the current events and how they affect each other throws a new light on the subject of Iraq. Plus you need to remember that Iraq is sitting on 300 - 500 billion barrels of high quality oil. Not to mention their Natural Gas, Gold, and water commodities.

With everything that is going on in Iraq today, it is very encouraging. There's no reason to quit now unless you absolutely need the extra cash. These are just my thoughts and I hope this helps.

BIG_JOHN,

Not quitting, just throwing the numbers out there. As I said in the last sentence of my post, "I will sit on them".

The last post I saw on the M2 was stating $32,500,000,000,000.00 (Trillion), but that is misleading, because the M2 only shows the Dinars in Billions. There is no mention of Trillions any where on it. Unless I am missing a calculation somewhere.

But any way we are talking potential Trillions here, If not Billions for Iraq to cover.

Go figure…..

With respect,

Madison49

[BIG_JOHN]

BIG_JOHN,

Not quitting, just throwing the numbers out there. As I said in the last sentence of my post, "I will sit on them".

The last post I saw on the M2 was stating $32,500,000,000,000.00 (Trillion), but that is misleading, because the M2 only shows the Dinars in Billions. There is no mention of Trillions any where on it. Unless I am missing a calculation somewhere.

But any way we are talking potential Trillions here, If not Billions for Iraq to cover.

Go figure…..

With respect,

Madison49

But why would Iraq have to cover every single dinar in circulation? If everyone went to US banks and sold their dollars for euros or something and no one was holding dollars any longer, could the US back that? I don't know, just asking.

[BBdentman]

How do you think they came up with the first value of the iraq dinar?

[PR Dinar Man]

Actually the M2 is 23 trillion as stated by 367dinar based on an interview he saw with Shabibi on Iraqi TV.

Let’s take a look at the numbers.

Now please understand I am using the RV numbers that have been flying around on the forum.

If Iraq has $30,000,000,000,000.00 (Trillion) Dinars in circulation, and some say it may be $32,500,000,000,000.00 (Trillion).

So let us do the math,

Now if Iraq RV'd to the below 2 scenarios, at $3.86.

1. If the Dinar revalues at what some predict may be the magic number of $3.86 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $115,800,000,000,000.00 (Trillion) to cover it.

That is One Hundred Fifteen Trillion, Eight Hundred Billion.

{So if you have $1 Million Dinars it will be worth $3,860,000.00}.

2. If it is devalued (loped) and revalued to the same magic number of $3.86 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $115,800,000,000.00 (Billion) to cover it.

That is One Hundred Fifteen Billion, Eight Hundred Million.

{So if you have $1 Million Dinars, it becomes $1 thousand and will be worth $3,860.00}.

Now if Iraq RV'd to the below 2 scenarios, at $0.84.

3. If the Dinar revalues at what some predict may be the magic number of $0.84 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $25,200,000,000,000.00 (Trillion) to cover it.

That is Twenty Five Trillion, Two Hundred Billion.

{So if you have $1 Million Dinars it will be worth $840,000.00}.

4. If it is devalued (loped) and revalued to the same magic number of $0.84 exchange rate (IQD) to $1.00 (USD). That would mean Iraq would have to have $25,200,000.00 (Billion) to cover it.

That is Twenty Five Billion, Two hundred Million.

{So if you have $1 Million Dinars, it becomes $1 thousand and it will be worth $840.00}.

Out of the above 4 scenarios above, which one is more plausible to happen?

And how will any of the above effect your investment?

Now Scenario #5 is that they reprint there money, which means we (Cash holders) are all out of luck.

Please run the numbers yourself, and decide for yourself. I for one am losing faith in the Dinar. What a waste of time..... I do not see any miracles happening with it. But being that I am a "Newbie" I will sit on them and hope for the best.

Madison49

[Madison49]

hang in there madison.......ive been on this ride ince early 05.......i figured it as a 10 possibly 15 year investment. I get tired of the rollercoster too.......take a lil time off from checking on it so much and you will feel better.

Toothpik,

Same here, I have been on this roller coaster since early 2004. Just became a member for the second time on the IIF. I have my Mills in the Dinar. I do not need to sell them. I only invest what I can afford. I have bought as many as I am going to.

My thoughts were around 2010 back in 2004. I am good, I appreciate your post. I just do not have the faith in the Dinar that I once had. It’s all good.

With respect,

Madison49

[Dinars4Jesus]

But why would Iraq have to cover every single dinar in circulation? If everyone went to US banks and sold their dollars for euros or something and no one was holding dollars any longer, could the US back that? I don't know, just asking.

Remember when you go to B of A to cash in dinar, B of A will have some of those dinars as change should you decide to cash in a few dinar. The bank will keep some of the dinar cashed in waiting for an increase in their holdings. Not all dinar will be cashed in right away. Not all dinar will find its way back to Iraq right away. So, those figures that were quoted will be spread out among all the countries of the world. I can't imagine Iraq taking in all that dinar at one time.

[BIG_JOHN]

Remember when you go to B of A to cash in dinar, B of A will have some of those dinars as change should you decide to cash in a few dinar. The bank will keep some of the dinar cashed in waiting for an increase in their holdings. Not all dinar will be cashed in right away. Not all dinar will find its way back to Iraq right away. So, those figures that were quoted will be spread out among all the countries of the world. I can't imagine Iraq taking in all that dinar at one time.

No, it would never happen. Especially if the NID hit the Forex.

[Madison49]

Actually the M2 is 23 trillion as stated by 367dinar based on an interview he saw with Shabibi on Iraqi TV.

There is a thread on this forum stating 32.5 Trillion, Please refer to it.

Even if you take the Trillions down to lets say "15" at the RV rates going around they are still looking at covering 12.6 to 57.9 Trillion on a straight up RV (0.84 to 3.86 respectively),

And if it lops and revalues at those rates they are looking at 12.6 to 57.9 Billion. (0.84 to 3.86 respectively),

So if you were going to revalue your money knowing you were going to have to pay a lot out.....Which way would you go?

[ricklibby]

madison 49; i guess that would depend on what i wanted my currency to be worth. if i save $ to make my dinar worth the same after a lop i have to use $ to buy. if i rv to make my currency worth more than i can use dinar and $ to buy. imo rick

[Madison49]

Guys, Gals,

I have just put the numbers out there. The information is out there. We can ponder this as we have for a long time now. Numbers do not lie. Now Iraq may...... It saddens me that we as tax payers have paid so much for there liberation, (Blood and Money) and again we the American people are going to get screwed again......

With respect to all,

Madison 49

[Madison49]

madison 49; i guess that would depend on what i wanted my currency to be worth. if i save $ to make my dinar worth the same after a lop i have to use $ to buy. if i rv to make my currency worth more than i can use dinar and $ to buy. imo rick

ricklibby,

I am trying to wrap my brain around your response. I am assuming you are responding as if you were the PM of IRAQ, or whatever. (to my reply to PR Dinar Man)

So let me try this.

If your country has a currency that is so under valued and is not considered a negotiable currency with the outside world, and your people are suffering, what would you do?

If your country had Trillions of that currency floating around and it is only worth pennies, less then pennies compared to other countries, what would you do?

If you had the choice to become a sovereign county so that your currency becomes trade worthy, what would you do?

And when that happens, and all the worthless currency you have out there becomes worth something. What would you do?

If you have the opportunity to change the potential payout when that happens from trillions to Billions, What would you do?

I do not have the answers, Just Questions. Only Iraq knows what is going to happen, not me.....

Sorry, I just did not really understand what you were saying/asking.

Madison49

[Madison49]

But why would Iraq have to cover every single dinar in circulation? If everyone went to US banks and sold their dollars for euros or something and no one was holding dollars any longer, could the US back that? I don't know, just asking.

BIG_JOHN,

Good question... I would assume Iraq would have to cover there currency in the long run, Regardless of what it is traded for. Now if someone wants to trade the Dinar for a Euro, Yen, Dong.. whatever. Would that be a better investment for them if the Dinar revalues? I do not think it is an issue of the US backing it. It will go through the banking system and sent back to the country of origin.

Madison49

[JERSEY DINAR]

Question:

I believe there are 27 million Iraqis living in Iraq. Correct?

If each Iraqi citizen was holding 1000 dinars each, that would translate to 27 trillion dinars in circulation amongst the resident Iraqi citizenry. Correct?

After a... say 1 to 1 RV, would all 27 million Iraqis scamper to convert their dinars to (collapsing) dollars or would they spend them in their homeland of Iraq (as the newly valued dinars), say... to enhance their lives there?

Or convert them to petro-dinars if Iraq were to monetize their oil supply?

[jssphoto]

Please forgive me but what does M2 stand for?

[Madison49]

Remember when you go to B of A to cash in dinar, B of A will have some of those dinars as change should you decide to cash in a few dinar. The bank will keep some of the dinar cashed in waiting for an increase in their holdings. Not all dinar will be cashed in right away. Not all dinar will find its way back to Iraq right away. So, those figures that were quoted will be spread out among all the countries of the world. I can't imagine Iraq taking in all that dinar at one time.

Just a little FYI,

Banks like Chase, BoA and a few others that are considered Global banks have access to the Dinar, and do sell/buy them. The are pretty much required to do so. Most others do not. Now when/if Iraq becomes a sovereign country then most (hopefully all) other non Global banks will recognize the Dinar as negotiable currency.

And you are correct, When the Dinar becomes a world wide recognized currency, Banks will hold (not all, just the major banks as the ones that hold other currencies now, Global banks) the Dinar as well as the 150 plus foreign currencies they do now. It’s not a big thing, just banking policy/practices.

[rokjax]

Guys, Gals,

I have just put the numbers out there. The information is out there. We can ponder this as we have for a long time now. Numbers do not lie. Now Iraq may...... It saddens me that we as tax payers have paid so much for there liberation, (Blood and Money) and again we the American people are going to get screwed again......

With respect to all,

Madison 49

Madison,

Now you have to remember, the interview with Shabibi. He said the M2 is 23 trillion, way off from 32 trillion (9 tril off). They are going to do anything they can to detour speculators. Who knows, their M2 could be a made up number, 23, 32 trillion whatever. There are too many rv/lop artifacts around now, they are throwing smokescreens left and right. Everyone here on the forum has invested what can he/she can lose (hopefully). Remember high risk investments are risky. Everyone can throw around their ideas but anyone with a head on their shoulders should know you can lose everything at any given moment. I'm in it to the end, like you.....JMO