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Dinar Updates Monday Evening Chat 8-15-16 Part 2 of 2
fergie says():Using the 2 25k notes and the one 50k note, we can have a total of 100k. now, when we take only one note away, the amount left is determined by which denomination we remove, so we have a different value remaining depending on the type of note and not the amount of notes, or notecount
Pensacola27 says():But isn't 50K worth the same no matter what the notes are?
flint says():I hope the news time can make the issue of the note count currency value clearer with one of your great analogies.. it is still a little confusing to me
Pensacola27 says():One hundred US dollars in 5 twentys or one hundred note is still worth $100. Same with the dinar
fergie says():if the cbi says they have removed all but 1 billion notes, the total buying power value of those notes could be anything. If they were all of the 5k variety that would be, 5 trillion dinars.
if they were all the 25k notes then the value of the currency circulating would be 25 trillion. So how can it be more important that the amount of notes are the same 1 billion than that the value would be either 5 trillion or 25 trillion?
Dinarian1 says():Wow... now even I am confused! PLEASE, PLEASE do A SLOW and In DEPTH segment on this during Newstime!!!
flint says():my understanding is a 25,000 note can be exchanged for 25,000 1 dinar notes after the three zeros are gone.
fergie says():Can anyone answer the question regarding iraq having trillions of dollars worth of dinar while only having 55 billion in reserves? if the rv happens and the dinar is a 1 to 1 rate with the dollar then suddenly there are trillions of dollars worth of dinar but only 55 billion usd for reserves
SRW says():The value of your dinar will be determined by an international rate which will be funded by the ISX not the CBI. The deletion of the zeroes will take place in the country of Iraq!
flint says():and the 85% of imported goods will be able to be bought for much fewer dinars???
SRW says():Yes, the dinar will be more valuable.
fergie says():so does the cbi reserves of 55 billion only pertain to the dinar in iraq, or must the reserves reflect the amount of dinar worldwide? because we all know that there has to be trillions of dinars out there and with a 1 to 1 rate, that means trillions of dollars worth of dinar worldwide
SRW says():Folks you can make this as hard or easy as you want to! The dinar currency has to change in value before this converation can really take place!
fergie says():I am trying to make this easy but I have a hard time wrapping my head around the thought that note count trumps total note value. When I go into a store and try to buy some 50$ shoes, im not getting those shoes with 25 one dollar notes, but i can with one 50$note. How is this different
JETSET says to fergie():i understand what you are saying.
fergie says():everything is bought and sold under note value, not note count
1bobby says to fergie():I look at it this way. Once the value changes, I go to my Financial Institution, work out the details, then they get my IQD. I walk away with a fatter bank account. Where and what happens to the IQD after that is not my concern. All I know is that I will no longer hold IQD
fergie says():Is anyone familiar with the article i linked to earlier http://dinarrvnews.net/central-bank-...eleting-zeros/
1bobby says to fergie():And I'm comfortable enough with my investment. If I was concerned about the "note count" I would rethink my investment
fergie says():Im hoping someone can poke holes in it
1bobby says to fergie():But that's just me
SRW says():Your comparing apples to orange. The value of the currency has to change first! The deletion has to do with the higher denoms. in Iraq and they will be worth the same in dinar!
jimplants says():amen bobby FAITH !!! well said
1bobby says():What happens in country is just what SRW says, the IQD will have more buying power. What their pricing guides are, are of no concern to me
fergie says():not necessarily, turkey and romania in 2005 and 2009 lopped and THEN revalued. This, of course, is what we dont want. I know iraq's circumstances are different, but i don't like the precedent.
Woodywoodpecker says():They can do anything they want to with my dinar after I exchange it.....because its no longer mine.
1bobby says to jimplants():(v)
1bobby says to fergie():Comparisons open up a whole new can of worms. Save those for fishing
pizzaman says to fergie():Fergie, just curious what you place the current value of Iraq at if you were to buy all the country of Iraq with it's natural resources and ongoing GDP?
pizzaman says to fergie():value of Iraq in USD?
JETSET says to 1bobby():i agree with that mindset. i think the point of the question is that if the value of the notes in circulation is too high, how can Iraq afford to rv. if that is the question, i think i have an answer.
fergie says():not sure what the total value would be. Does anyone really know. has the value been correctly calculated and published
fergie says():I would be very interested in that info
fergie says():yes jetset that is it
fergie says():also, how can any country with only 55 billion in reserves, be allowed to have trillions of dollars worth of dinar floating around
fergie says():I thought the main reason for reserves it to cover rthe currency you have in circulation. Is that not correct
JETSET says():my answer would be that i believe that they have a pretty good idea of how many notes remain inside the country. I also believe that the number of notes outside of iraq is irrelevant. They are irrelevant because Iraq isn't actually going to be exchanging USD or any other currency for those notes.
From what I understand they are exchanging assets, such as oil credits to the other countries in exchange for the 3 zero IQD notes which will then be destroyed and never used in circulation.
JETSET says():they also will not be taking in every note at one time. other countries will be able to hold those notes and redeem them when they feel it is necessary.
1bobby says to JETSET():Because all those notes will be used for trade. Not by myself or you. Now as far as in country they will work that out by their procedures
fergie says():so we exchange our dinar. the us holds on to it as reserves until such time that they want to exchange them for oil credits, etc
pizzaman says to fergie():The Crude Wealth of Iraq - Henry Thompson
Wealth is shifting toward the owners of crude oil making every Iraqi a present value millionaire. Over the coming decades, total world energy consumption will double. The present decrease in price aside, energy prices and the energy share of income can be expected to increase. Monopoly profits will go to the owners of oil.
The Arab Gulf has 65% of the world’s proven oil reserves and Iraq 12%. Oil in the ground is money in the bank. Iraq can produce 2 billion barrels per year that would produce $200 billion at $100 per barrel or $8000 per capita for the population of 24 million.
Selling one quarter of its potential reserves at $100 for the next 20 years will generate 90 billion x $100 = $9 trillion. If the population of Iraq grows to 30 million that would be $300,000 per capita for 20 years or $15,000 annual income per capita.
Productive capital assets are $60,000 per capita in the US. Iraq would match current US productive assets per capita by investing a quarter of its oil revenue for the next 20 years.
The total value of Iraq oil reserves at an average profit of $75 per barrel over next 100 years is 360 billion x $75 = $27 trillion or $900,000 per capita, making every Iraqi a millionaire. These calculations do not include natural gas revenue, lately about equal to oil revenue. Moreover, most of Iraq has not been explored for gas or oil.
JETSET says to fergie():that is my understanding... i could be way off on that but that is what i have always been told.
1bobby says to JETSET():oops I goofed that
fergie says():so the amount of currency reserves iraq must have, 55 billion, has nothing to do with the dinar outside of iraq?
pizzaman says to fergie():Add Gold, and gas, and future GDP....the country is quite valuable. The currency does not reflect that at .000857 per dinar
JETSET says to fergie():correct. i also think that we don't know the whole story on iraqs actual reserves. the 55 billion is what they tell us but i think there is much more to the story.
NWBeauty says():but then we see Jack Lew fly to Saudi Arabia a year ago Mem'l Day weekend and the price of oil dropped through the floor There is ALOT going on with price fixing and flooding the market that we are still able to affect
1bobby says to fergie():Iraq is responsible for ALL of the IQD and covering it. Like JETSET stated, those Dinars we hold will bascially leave our hands to Treasury. In turn, those Dinars are used by the US for trade (oil etc)
pizzaman says to fergie():we just need a good crisis in the ME to watch it increase by 25 to 100%
clay says():Hey guys
JETSET says to clay():how was the weekend?
pizzaman says to fergie():Iraq's benefit is the worlds gain...at least to those that are holding IQD. Remember a Dinar used to be worth over $3.00
clay says to JETSET():great thanks
clay says to JETSET():how was yours
SRW says():Was your dinar bought from Iraq or a currency broker? That is the question! The dinar will be valued by an international trading forex. The larger denoms will not go back to Iraq. It will become the ownership of our federal reserve. What they do with it is their problem after I sell mine!!
JETSET says to clay():well, it was unexpectedly relaxing... had some outdoor plans cancelled because of a 90% chance of rain... the rain never came.
clay says to JETSET():broker
clay says to JETSET():yep same here
fergie says():2 billion barrels per year for 100 years at 75$ per barrel is 15 trillion, not 27 trillion. Still alot an probably enough depending on the amount of dinar in circulation. I was figuring any calculations being such long term as 100 years. I mean, who in this day and age thinks that long term. certainly not the u.s.
pizzaman says to SRW():Agree SRW
JETSET says to fergie():in these types of situations, i think that they do. we have many treaties and agreements that are 99 year agreements, etc...
pizzaman says():Fergie, The author indicated that $27T was the value of the total of Iraqs oil reserves, not 2 billion barrells per year for 100 years.
fergie says():got it, thanks guys
MrsBGG says():Thank you'all for helping fergie with her questions!! This room rocks!!
Pablo says to subgirl():Hey Subby, correct me if I'm wrong, but wasn't there some official new release that stated that the delete the zeroes plan is supposed to be an 18 month process, which started a year ago March?
subgirl says to Pablo():well I am not sure...
Pablo says to subgirl():Something in the back of my head reminded me of that. If it's true then it's interesting as the 18 months ends on Sept when all the ebanking kicks in.
subgirl says to Pablo():yes the e-banking i believe is in Sept...
Pablo says to subgirl():Yeah. But I can't remember specifics. I read all that months ago.
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