(Recaps Note: Great Discussion From CC Members - lengthy and some info has been posted earlier but for clarity of discussion all was left in tact - Thank You)
JD Blue CBI DECIDED TO REPRINT CURRENCY AND REMOVE LEADING ZEROS
2015/05/12 23: 10 Tomorrow press Baghdad: a member of the parliamentary Finance Committee, Massoud Haider Tuesday, the Central Bank decided to reprint significant cash to create categories to remove leading zeros from the currency, saying that the resolution and the decision maker and awaiting implementation.-
Said Haidar to "tomorrow," "the Finance Committee discussed with the Governor of the Central Bank of the relationship at its most recent meeting the printing of currency if there is liquidity," adding that "the Central Bank decided to reprint some significant cash to remove leading zeros from the currency during the period ahead."
The categories to be printed and 100,000 Iraqi dinar ", pointing out that the 'thoughtful and decision-maker for more than two years and only implementation remains'.
JD Blue Parliamentary Finance: Central Bank will print large cash categories to create the removal of zeros
2015/05/12 23:10 Tomorrow Press / Baghdad said the Parliamentary Finance Committee member Masood Haider, Tuesday, the central bank decided to print large cash categories to create the removal of zeros from the currency in the coming period, stressing that the decision thoughtful and maker and to be implemented.
He explained Haider for "tomorrow Press," that " Finance Committee discussed with the Governor of the Central Bank on the Keywords in its last meeting the subject of currency printed in the case of the availability of financial liquidity, "noting that" the central bank decided to reprint some of the larger denominations to create the removal of zeros from the currency in the coming period. "
He added that "due Categories printed and fifty-one hundred thousand Iraqi dinars, "pointing out that" the thoughtful decision maker and for more than two years and only implementation remain. "
JD Blue CBI offers a project to print large cash categories
5/12/2015 Brother – Baghdad Adviser to the Prime Minister for Economic Affairs, the appearance of Mohammed Saleh, revealed that the central bank provides to the draft printing large cash categories need to market to those groups.
Said Mohammed Saleh in a press statement that "Project Print Central Bank of Iraq large cash categories, an important step on the road to monetary reform, which supports the country's economy," as described, pointing to "the market need to large groups, because cash payments exceed dealing instruments, cards, e-payment ".
Saleh continued that "printed large cash categories of project is not about monetary policy but the payments system management, and that the plan would be reduced cash amounts especially since large groups constitute 90 per cent of the money supply,"
noting that "put these large groups is to ask how much Monthly itself of the money supply in the market but different categories, and not increase the original amount. "
He ruled out the possibility for inflation by the implementation of the new project, but in the case of lending to the government and the issuance of large cash categories can get inflation in prices,
The country suffered a contraction in liquidity both in dinars or in dollars with total money supply in Iraq size less than 40 trillion dinars (about 31 billion dollars). "
JD Blue SO THE IQD TEAM IS STATING THAT BETWEEN THIS AND OTHER ARTICLES THE GOI AND THE CBI INTENDS TO USE THE 50K NOTES AS A BRIDGE TO DRAW IN OTHER BIG ZERO NOTES, AND THEN WILL FOLLOW WITH THE DELETE THE ZEROES PROJECT. ~ OOTW
JD Blue "Delete leading zeros" means.... No Fracking LOP... ~ JD Blue
EXAMPLE OF "TO REMOVE THE LEADING ZEROS" .00086-
THEN REMOVE THE LEADING (ZEROES IN FRONT) WOULD THEN BE = .86
JD Blue Enorste throws down..... Clearing the Air on the 50000 note and other topics 5/12/2015
I was really hopeful that after the “monster” thread that we had all come to a general understanding of the process. Obviously that is not the case, and Mike and C-36 seem to be the strongest holdouts.
Therefore, with the risk of being overly redundant, I am going to try to lay this out in a manner that should make it perfectly clear to all.
There are several different issues that we are dealing with in these discussions and they need to be separated. There is the project to remove the 3 zeros; there is a plan to increase the value of the dinar; there is the introduction of the 50k note; there is a stated need to reduce the amount of paper in circulation.
Both Mike and C-36 at various times have combined or conflated these four issues which has led to the confusion among many of our members. While there is a relationship between some of these, they are not all a part of the same process. Each has its role to play and the effects of one should not be applied to another. I will take them one at a time.
The project to remove the 3 zeros.
This has been around for the longest time, being first mentioned in 2007 when it was proposed to the CBI by the Ministry of Finance and was accepted as a plan to be implemented within 5 years.
In 2012 it was stated that the plan was “ready” to be implemented but Maliki threw a wrench in the gears and stopped it all. Only after he was removed and replaced with Abadi did the “plan” gain new ground.
More recently, within the last few months, the current head of the CBI has given the “green light” to go ahead with this plan.
The “plan” as described is the removal of notes with 3 zeros on it. It doesn’t have anything to do with LOPping or moving decimal points left or right. It is, simply, the eventual removal of all Iraqi dinars with 3 zeros on them.
The “plan” can only come into effect when the currency situation makes it possible to remove the large notes. Therefore, we know, conclusively, that the overall larger “plan” also involves the raising of the value of the dinar.
Raising the Value of the Dinar.
In order to remove the large notes the value of the dinar must rise to a place that makes this possible. This implies that the new smaller dinar notes (1 to 200 dinar) will be produced and distributed as the value in the dinar rises.
We do not know the specific timing of this process but we do know that Saleh has said that the “remove the three zeros” could take from 2 to 4 years to be fully accomplished. We also know that the “green light” has been given to initiate this process, but we do not know the specifics of the timing.
We do know, however, that the actual removal cannot take place until the value reaches a level to make it necessary to remove the large notes (somewhere around a penny per dinar, or even slightly less than that).
In any case, we can safely state that the raising of the dinar must precede the removal of the large notes, although it will surely continue upward until they are all gone (presumably at least to $.50 per dinar, when the 500 dinar note would be worth $250). The CBI is on record that the goal is $3.50 per dinar, stated in 2008 and included in my book, with links.
Introduction of the 50000 dinar note.
The introduction of the 50000 note is not a part of either the removal of the 3 zeros or of the raising of the value of the dinar. This is where Mike has consistently mixed these up.
The introduction of the 50000 note has nothing to do whatsoever with the VALUE of the dinar.
The introduction of the 50000 note is also specifically said to be different than the introduction of a new 50 dinar note. Therefore, there will not be a 50 dinar note that somehow is worth 50000 dinars introduced. Once again, Mike and others have mixed this up. Here is the proof:
CBI: Iraq plans to issue a new currency in 50 dinars after deletion of zeros
November 27, 2011 According to the information published (Rn), two days before the central bank is working on the version of class 50 thousand Iraqi Dinars. Category that occurs while the Bank issued in the future is 50 dinars, and this is done after deletion of zeros.
It examines the Iraqi Central since June last deleting three zeros from the local currency in an attempt to promote the value of currency in circulation, external and internal.
This statement, made 4 years ago, clearly distinguishes between a 50000 note to be issued and a new 50 dinar note that will be issued after the deletion of zeros. They therefore cannot and are not the same thing. The new 50 dinar note will come out after the deletion of zeros notes are out of circulation, including the 50000 note.
The statement was clarified with this one:
The deputy governor of the Bank in favor of the appearance of the Kurdistan News Agency (Rn) that “the Central Bank of Iraq is working to issue new paper currency after deletion of zeros will be the class of 50 dinars which is equivalent to the current 50 thousand dinars.”
We see, then, that after the deletion of the zeros and the rise in the value of the dinar there will be a new 50 dinar note that will be worth $43 (which is what the new 50000 note that is coming out now will be worth).
We have not yet explained the role of the 50000 note. I will develop this further shortly, with quotes.
Reducing the paper currency in circulation
Again from 2011: Saleh estimated the government will exchange more than 30 trillion Iraqi dinars, or more than $26 billion dollars. The most important change after deleting the zeros, is to reduce the number of banknotes in circulation, simplifying the payment system in Iraq
Saleh indicated that "the deletion of three zeros from the Iraqi dinar would shorten the number of banknotes of four billion paper, which is equal to 30 trillion dinars exist in the Iraqi market to one billion and 800 million paper only," asserting that "the currency exchange will not affect the per capita income or over its wealth or its contractual obligations."
This is the clear statement from Saleh that the “plan” includes a reduction in the amount of paper in circulation from 4 billion pieces to 1.8 billion pieces and that it will be completed “after the deletion of zeros.”
However, from earlier we know that the process will begin as the value of the dinar rises (see above) and the notes will be removed gradually.
Now, here is where the 50000 notes come into play. The quote just above also says that that "the currency exchange will not affect the per capita income or over its wealth or its contractual obligations."
We see two important things here: first, it is called a “currency exchange.” This means that there will not be any ADDITION to the money supply as Mike continually states. It is an “exchange.”
Second, it has no effect on the VALUE of the money, again contrary to what Mike continues to bring forth. It “will not affect the per capita income.” That is really about as clear as you can make it.
It is a revenue neutral event in which an “exchange” of one form of money (smaller 3 zero notes) is made for another (larger 3 zero note), initially, and then, eventually, smaller NON-zero notes for the remaining 3 zero notes. How do we know that the 50000 note is part of this process? Because Saleh has stated so, directly:
From 2014 we got this:
He added that the executive branch has decided to postpone the process of restructuring of the Iraqi currency has led to the cessation of all actions related to this project, explaining that the aim of the process of restructuring is to reduce the cost of handling and facilitate transactions handled especially medium and large as well as to facilitate the draw pricing policy in the country.
The means of achieving this goal is stated thus:
He stressed the need to accompany the process a package of measures distributed responsibility on all departments and state institutions and banks in order to develop solutions to the problems and obstacles that can arise during the process of restructuring, including cash, and accounting, and security as well as take the necessary measures to destroy the currency received.
I noted just above that the overall “plan” includes reduction of the paper from 4 billion pieces to 1.8 billion pieces and that it would be done through “even exchanges”. This quote clearly states that the pieces received will be “destroyed.” This is how they reduce the amount of paper in circulation.
In order to accomplish this they have two options: (1) raise the value of the dinar, or (2) issue a 50000 dinar note that will accomplish much of the problem. As it turns out, they will use both. One is revenue neutral (2) and the other is not (1).
One will accomplish most of the goal (of reducing the paper) in short order (a few months) while the other might take up to 3 years.
We know that the plan includes the introduction of a 50000 note from the “monster” thread article:
Parliamentary sources and others close to the Iraqi Central Bank, said that a government committee concluded that a competent decision new cash paper currency printing of fifty thousand dinars category ($ 42), in light of the challenges facing the Iraqi dinar and the strength of local and global market.
There is no way to re-interpret this statement as being a 50 dinar note. None whatsoever. It is a 50000 dinar note with a value of $43. It doesn’t get clearer than this.
The specific reason for the issuance of the new note is also given:
And suffering Iraqi citizens, private traders, the question of buying and selling, where usually carry three large bags of Iraqi currency cash to buy a mid-priced car.
We see, then, that this ties in with Saleh’s statement from 4 years ago that there is too much paper currency and that it needs to be reduced. We can also see, then, that the introduction of this new 50000 note has the SOLE purpose of helping to reduce the amount of paper in circulation.
THEREFORE, it does NOT affect the money supply or inflation. It is a NEUTRAL event of an exchange of smaller bills for a larger bill. The smaller bills, we have just seen will be destroyed. Result: less paper currency in circulation.
Therefore, any conflation of the 50000 note with prices, economic growth, money supply, or anything other than REDUCING THE PAPER not only is incorrect but it also does a disservice to our readers by continuing to rant on about something that is simply not there.
The result of the introduction of the 50000 note, then, means that the amount of paper can be reduced in a few months rather than a few years. No change in the value of the dinar or the money supply. Just an even exchange that reduces paper in circulation, something that Saleh said was needed 4 years ago.
I respect all members of this site. I especially am gratified when someone comes up with a meaningful argument that is still on point. But I honestly get frustrated when the same conflation is brought forward again and again, thread after thread. I just hope that our readers aren’t confused. Unfortunately, I know that they are, because it is evident in the threads.
I have no problem with open discussion. But I do have a problem with people who won’t accept plain English for what it says.
Examples: Mike made two quotes which are patently false and then embellished upon them:
Ruled out economic expert contrary goldsmith feet of the central bank on the process of deletion of zeros from the currency in the current circumstances described the implementation as office process only intended to reduce the accounts and warned that the introduction of a new category of currency to the loss of monetary value with the Economic Commission parliamentary revealed the bank's determination to issue a new currency category fifty thousand dinars….
(the issuance of new high amounts of cash currency will lead to the expansion of the currency and then the monetary value of the loss, it is imperative that any actions aimed to revitalize sectors).
Both of these statements, whether made by a jeweler or an economist, are patently false and should not be quoted again. The issuance of the 50000 note is revenue neutral (thus no loss in monetary value for the currency – Saleh said so) and is an even exchange (thus no expansion of the currency –Saleh said so). Please, for the sake of our readers, drop this stupid article and ignore its writer. The guy doesn’t know squat!
Later in the same thread Mike says, directed to me, that “the plan does not include printing a 50k note” when in fact it does just that I have quoted above (decision new cash paper currency printing of fifty thousand dinars category ($ 42)), only one of several articles that have said the same thing. This isn’t confusing unless you make it that way.
The removal of most of the 3 zeros notes (well over half of them) by simply exchanging them for a 50000 note is good policy. It costs little, saves some, and presents a better and more secure bill in the process. It also is a continuation of the unfolding of the “plan” and is now seen to have been a part of it since 2011. So why fight it? It is not a threat to our investment!
JD Blue So why fight it? It is not a threat to our investment!
JD Blue LARGE DENOMINATION US CURRENCY
Your local convenience store may not accept bills larger than $20, but once upon a time you could have paid for your gum with a nice fresh $10,000 bill.
What's the story behind the large-denomination bills that the government used to issue?
What big bills has the U.S. issued?
In 1928, the federal government overhauled its system of printing banknotes. It shaved about an inch of length and just under a half of an inch in width off of the bills and issued the new smaller bills in the $1 to $100 denominations with which we're familiar.
However, the Treasury also issued larger denominations. They featured William McKinley ($500), Grover Cleveland ($1,000), James Madison ($5,000), and Salmon P. Chase ($10,000).
Who the heck was Salmon P. Chase?
His name might not be as familiar as those of the Presidents featured on the other big bills, but once upon a time Chase was a big wheel in American politics.
Chase, a mid-19th century politician, served as Chief Justice of the United States, spent stints as Ohio's governor and senator, and was Lincoln's first Secretary of the Treasury.
Nice resume, but how did Chase end up on the $10,000 bill?
He was in the right place at the right time.
When the federal government started issuing greenback notes in 1861, Chase, as Secretary of the Treasury, was in charge of designing and popularizing the new currency.
The politically ambitious Chase had to pick a portrait subject for the first $1 bill, and he chose" ... Salmon P. Chase.
Although putting his face in everyone's pocketbooks never propelled Chase to the presidency, when the Treasury started issuing the new $10,000 bills in 1928 they put Chase's portrait on the obverse to honor the man who helped introduce modern banknotes.
Even if you don't have a $10,000 bill Chase's name might still be in your wallet.
Chase National Bank, the forerunner to Chase Manhattan Bank, was named in his honor.
Why on earth was the government printing such giant bills in the first place?
Believe it or not, it wasn't just to save space in fatcats' wallets.
When the Treasury started printing these giant bills, their main purpose was making transfer payments between banks and other financial institutions.
Before sophisticated wire transfer systems were fully developed, it was apparently easier and safer just to fork over a $5,000 bill to settle up with a fellow bank.
Once transfer technology became safer and more secure, there really wasn't much need for the big bills anymore.
What's the largest denomination of currency the U.S. has printed?
That would be the Series 1934 $100,000 gold certificate.
The Bureau of Engraving and Printing only made these notes during a three-week stretch during December 1934 and January 1935.
Even the few plutocrats who had that much cash during the Depression couldn't carry one of the $100K bills, though.
They were only used for official transactions between Federal Reserve Banks, and the Treasurer of the United States only issued them to Fed banks that had an equal amount of gold in the Treasury.
The note featured a picture of Woodrow Wilson.
Are any of these bills left in circulation?
There sure are, but don't expect to find a $500 bill the next time you make an ATM withdrawal.
The Treasury announced on July 14, 1969, that it would quit issuing the $500, $1,000, $5,000, and $10,000 notes immediately, since the bills were so sparsely circulated.
It's not like the Bureau of Engraving and Printing had to stop the presses, either; the bills hadn't seen an actual print run since 1945.
When the Treasury discontinued the bills, they rapidly fell out of circulation.
However, a few are still lingering; as of May 2009, there were still 336 $10,000 bills at large.
At the same time, Slate reported that there were also 342 $5,000 bills and 165,732 $1,000 bills still floating around.
If they're out of circulation, can you still spend them?
Although the Treasury is no longer issuing these bills, according to the Fed they're still legal tender.
So yes, although it would probably raise some eyebrows, you could walk into Best Buy and plunk down a $1,000 bill to pay for a new plasma TV.
That wouldn't be the smartest move, though.
Most of the high-denomination bills that are left in circulation are in collectors' safes, and at auction the bills tend to fetch prices that far exceed their face values.
For instance, a pristine $10,000 bill can command a price as high as $140,000 on the open market.
What happens if you bring one of these big bills to a bank?
If you put it in your safety deposit box, your bill will be safe.
Chase Bank actually acquired one of the $10,000 bills in its currency collection when a deceased customer's family found the bill in her deposit box and traded it for $10,000 in cash.
Deposit the historical loot into your checking account, though, and it's bad news for the bill.
You'll get the cash deposited in your account, but since the 1969 order to stop distributing these bills, Fed banks have been pulling the notes from circulation and destroying them whenever they are received.
Of course, there are other potential pitfalls to depositing a big bill, like blowing your cover when you're on the lam.
Last February, three teenagers in Texas Township, Michigan, swiped one of their parents' safes and drove to Birmingham, Alabama, with their booty.
Their downfall came when they tried to change an antique $1,000 bill from the safe at a bank.
The police nabbed the thieves after a call from a suspicious teller.
So there was never a real $1 million bill?
Nope, but that doesn't mean that people haven't tried to make one.
In 2004, a woman in Covington, Georgia, tried to pick up a $1,675 tab at a local Wal-Mart with a forged $1 million bill featuring a picture of the Statue of Liberty.
Police quickly arrested her. It's hard to say what's more ludicrous: trying to pass off a million-dollar bill or thinking that Wal-Mart would just fork over $998,325 in change.
Someone gave me a fake $1 million bill as a joke" ... was that illegal?
As long as you don't try to spend it or deposit it, you're in the clear.
Gag makers and some religious and political groups have printed novelty $1 million bills for decades.
In 1982, these novelty bills came to the attention of the Secret Service, which ruled that since there wasn't a real $1 million bill, these joke versions weren't technically forgeries or violations of any laws.
What about the opposite of these bills: the elusive $2 bill?
Although you don't see the $2 bill all that often, it's still a circulating denomination of American currency.
According the U.S. Treasury, there are over $1.5 billion worth of $2 bills currently circulating around the world.
However, since the bill changes hands less frequently than other denominations, it's not printed as often, either. The Treasury hasn't whipped up a batch of twofers since 2006.
JD Blue Remove the Leading Zeros, Baby!
JD Blue More notes from IQD Team-
IQDTEAM JUST SAID THAT THE 50K NOTES ARE GOING TO BE USED TO PULL IN THE LARGER ZERO NOTES..THEN AFTER THEY PULL THEM IN, THEY'RE GOING TO DELETE THE ZEROES –
THEY ALSO SAID THIS DOES NOT MAKE OUR 000 NOTES OBSOLETE AT ALL - YOU HAVE TO LISTEN TO THEIR CALL -
WE STILL NEED LAWS PASSED THEY SAID (AND I AGREE - AT LEAST AN APPROVAL IN THE HOR TO DELETE THE ZEROES - PASS THE PROJECT IN THE HOR) - THE NEED FOR THIS LAW HAS BEEN DISCUSSED MANY TIMES OVER THE YEARS -
WE WON'T KNOW FOR SURE UNTIL THEY DO IT - BUT TODAY, AN ART QUOTED NAJIBA NAJIB STATING THAT THE LAW NEEDS TO BE PASSED FOR THE DELETE THE ZEROES PROJECT
BUT IF IN THE MEANTIME, THEY RELEASE THE 50K NOTES, WE KNOW THEY'RE WORKING ON PREPARING THE STAGE FOR THE PROJECT.
JD Blue Parliamentary investment: The government intends to implement the foundations of a comprehensive economic reform
5/12/2015 Picture ~ BAGHDAD - My Day The Commission on the economy and investment representative, on Sunday, that the government is determined to lay the foundations for a comprehensive economic reform for all sectors, indicating that the government realized the error dependence on oil revenues, but not others.
Said committee member Najiba Najib in a press statement: The government realized the error dependence on oil revenues and began implementing reform the foundations of the economy in all its banking, agricultural, commercial and industrial sectors.
She added that many projects will be worked out on credit Order in a new step to afflict the progress and development in the field of investment, noting that the government harness its potential to repair and develop the private sector as an important factor to increase the financial state revenues.
She noted a member of the economic and investment commission in Parliament that the coming stage will witness economic development is remarkable, explaining:
We are discussing the inclusion of improved legislation and regulate economic action include Alkmarki and other banking sector. She Najib: The situation in the current period of the previous best for the rise in oil prices from $ 56 a barrel as listed in the budget.SOURCE
KJWayne Thanks Blue . I'm in it to win it ! Roll on Iraq .
P.S. (2008 ) The CBI Wants the rate to go back to $3.50 /Dinar, SO DO I !! :lol:
Dr. Gann Wow thanks JDBlue for your efforts !!!
,, I just kept scrollin and scrollin do you have an easier version ?? :D
Bloodloch Thanks for the posts, Blue.
Comments may be made at the end of Part 3 Thank You