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[pt497]

Hi all.  I mostly just surf the forums as a dinar investor and this is my first post here.  It is my opinion based many other excerpts on this subject that the RV rate really will have nothing to do with as we might say "recapturing at a lower rate".

The rate of RV has to be governed by the amount of reserves in the CBI.  They have to "cover the spread" in a RV so to speak.  In other words, it would be risky to RV any higher than what it would take to pay out if all of the IQD's in circulation were exchanged back in.  This is where the economist's like to throw out terms such as M1, M2, etc. (all over my head).  This is how speculators can formulate RV's in certain ranges (my sources estimate they can afford $1+).

Further, why would it make any difference if they could afford a higher RV based on reserves to "solicit" with a lower value?  Whatever rate they RV at will then be the purchasing power of the dinar and in reality it is only an exchange of currency between hands.  This to say that the CBI will still have the same purchasing power held with USD's before, now it will simply be with the IQD (de-dollarizing).  The new rate will simply remain as an investment tool at a higher rate and as it continues to increase in a floating market, it will repititiously revalue keeping it all in a check and balance as noted.  I don't know if this make any sense, but that is what seems logical to me.

[rayrichards]

If I may post an opinion... I made a post the other day and got fried on the first one. I like this place and thought seriously about not coming back.  but, here goes..  The R/V that we all want, need, and expect must first have a definite and true value of the Dinar.  It order to have that how will the dinar have parity..  We all know that oil is basically the common denominator.  The dollar has been the reserve currency for a long time.
we must first understand that this is a new currency and has never been traded or circulated other than in country.  Yes it is a sovereign and (will be negotiable tender) when the GOI gives it a value wheather by peg or by a basket.  I ask you.. Every currency in the world is down..  Some countries are calling for a new reserve currency; GCC states wants to completely get away from the dollar; the Dinar in 1995 was $3.20, and oil was $40.00 and Gold was around $500.00.  In last few month oil was $140.00 and gold $1024.00.  I you were the one in charge of where to value the r/v and at what rate; what currency would you peg to?  The dollar, the Euro, the Yen?  What would a basket of currencies be worth and which one.. which ever they choose they are going to have to live with it for awhile; you can't r/v everyother day.  just some thoughts on my opinion which is not worth $.50 cents or a cup of coffee.

[KYMEDIC]

Ray, not bashing you here but isn't every currency pegged against the dollar?  Last I heard, Obama flat out said  no to the world currency also.

[Retro]

rayrichards,  your opinion is relevant and something to think about. It is not an easy task for any country to play with its currency.

Also, The High value of the Dinar during Saddam time was artificial so we really don't know.

This situation with Iraq is not like any other in History so it is harder to predict the outcome.

 

[rayrichards]

Ray, not bashing you here but isn't every currency pegged against the dollar?  Last I heard, Obama flat out said  no to the world currency also.

Your absolutly correct about Obama.  but, then again we still had the Euro get established. and Kuwait is not pegged to dollar;  It is pegged to a basket to give their Dinar it's rate. We may not understand and don't hear of it much but the NAFTA accord is still lurking.  If anyone is able.. Please seek out what was stated and was agreed to in the closed session of congress last march.  There has only been four in the history of the US.  The current crisis of the economy was known then and well I will end here. 

[FIITER 1]

Ray, your are absolutely correct, However Iraq is going to peg against the Market Economy which is backed by Gold and other foreign currencys, Gold I believe closed Friday at $940 and ounce. What do you think Gold will go to when this is finaly announced? My guesss is almost double. (HINT HINT). This will happen overnight practically. The Euro came from the European Union asking all countries to particpate in a common currency to streghten all. The much talked about North American Union and Currency is a pipe dream for some, USA and Canada will never agree, the only one there that benefits is Mexico, and my God, they have enough of our industry already and still can't get things in there house in order, talk about corrupt Goverment, there PIC is in the dictionary under corruption.

[miss mary]

KY, Fiiter, Ray--thanks for the very informative read. lots to think about...

[Skykomish]

I know Obama and Geitner have both said they would not consider a World Currency but it is my understanding that the next day they both made the statement that they would consider it.   IMO Geitner will commit us to a World Currency at the G20.     If you knew that your money was going to be worth nothing in a short period of time, say you had a savings account worth 100,000. and you knew that next month it would be worth nothing, what would you do with it?   If it were me I would spend it, go on an expensive vacation, buy hard assets, pay down my house, etc.    I believe that is what Obama is doing, spending as fast as he can and committing us to pork.    Don't blast me, this is just my opinion.   There is a bill on the floor of the senate as we speak trying to block Geitner/Obama from doing just this.    Scares the SH-- t out of me because the US will no longer be in control of her economic future and who controls the dough controls the masses.   

[4aprofit]

From a reliable source..  RV has happened,there is 2 different rates. One is for the banks,  we won't see.The other will be for the public ( US ).

I have heard this on other threads as well....but does anyone know how we should discern the when and how to exchange based on this scenario?..On one site I believe they said that they would PM you with the correct procedures and/or locations as per this type incident!...Any others comments or ideas...as this could be critical!!!

[CountingmyRVchickens]

I am really happy to see information being exchanged on this site fluidly again as it was before - we all learn from each other and thereby move forward more informed than we were before.

IMO Early Retirement I do not think anything below $1.00 would be a wise move on their part. Remember that as early adopting speculators who have followed this cheese we represent a very minuscule percentage of possible investors - Others need to see what they call tangible evidence that the currency will be a good investment. That being said if they make the mistake of starting with a small RV amount imagine how may people/institutions/government bodies will literally POUNCE on that investment? It would be a costly mistake.

Also I have always heard the argument of the M1 and M2 being used to calculate expenditure and what they would have to cover in the case of actual RV amounts. I always took that with a pinch of salt especially after I found out that the cost of the Iraq war was "not on the books" per residential order - Wow!

Also the issue of a large RV being costly in terms of hard cash was always a difficult thing for me to swallow until I approached it with the perspective that how many of us deal with large chunks of physical cash these days? Even if the rv'ed at 5 to one how many people would actually carry cash around? I think most people would be happy seeing their account balances and having a black card ..IMO. Some might reinvest in commodities but even then the transaction is done with the push of buttons and not wheel barrows of cash anymore. JMO

And I have always believed that they see themselves as the leaders of the MI and as such their pride might not let them have a currency less in strength that that of their neighbor Kuwait. Even if its just 10 cents more its still considered stronger. The question is how many rv's it would take to get there. 1 or several. Also you have to factor n the state of the worlds economy as tis is a great opportunity for them to be a real presence on the world stage.

Also the RV would have to support the lavish lifestyles they have been known for in the past and as mentioned by other the have ordered lots of millitary and civilian products which are expensive. It also has to be an RV that presents a situation for healthy import and export of goods - for effective demand and supply of goods they produce and goods they import.

So in my Opinion the rv would be high out the gate somewhere between 2-3 JMO

Counting my dinar chickens out.........

[bori]

JMO I think they should rv between 2.53 and 2.65 so they're economy could grow  on a fast pace

[HEM1941]

Bori  thats what i like positive thought.  Im still thinking $1.50 just a guestimate it would get the ball rolling for a new value under their current worth and im sure it would revalue in a couple years to their desired $3.00 range   

[vesposito]

My Opinion lost it's punch.  I shared this idea with clients, friends and relatives.  Today, I seem to have lost them all.  I've been in it for 4 years.   

[SWAY]

Hem - I think the dinar will reval at least at 1.00 or greater.  The number I just put out there is not based on anything that can be proven, but a couple od days ago I questioned one of locals that use to work for me in Iraq regarding the cost of a sandwich in Baghdad.  He told me the average sandwich is selling for around $3.00 USD - keep in mind that the salaries are about 300.00 to 400.00 USD.

just a thought

[Dinar$Buyer]

IMOP I think it will RV at $1.30 I feel it is the Magic #