risk1 wrote on April 15th, 2014, Question......Shabs stated a few years ago that the budget shortfall would be made up through the "exchange rate" So why is the Iraq trying to borrow money to fill the gap?
IMO because their not ready to increase the value of the dinar. IMO we are a ways off yet...
Post by tfulginiti » April 15th, 2014, risk1, IMO....perhaps the Finance Minister is panicking and trying to put pressure on the CBI. Its been stated that only the CBI knows what is happenong with the MR. Looks like panick to me.
Or grasping at straws to try and fix a problem that will be resolved shortly. After all no loan has been issued yet ... IMO
Post by drdinar » April 15th, 2014 ...revaluation [of the currency] was called for earlier [today by] an academic economist [stating that] those in charge of the economic sector in Iraq [need] to re-evaluate the value of the currency after it [the CBI has enhanced] enhances the cash reserve quantities of gold.
This statement, if the true and correct translation is in fact "re-evaluate", obviously means the the dinar will rise in value....When they re-evaluate the value of the currency, after the cbi adding to the gold reserves, how can it mean anything else?
Post by Sager » April 15th, 2014, drdinar, I completely agree Sir. Thank you for sharing. Thank you Memphis for your wonderful post. Sager
Post by Frank26 » April 15th, 2014, C U on Your CC tomorrow KTFA FAMILY .......... Teams called last night. We will share tomorrow at 7 pm est. We will be with You as follows:
7...... Investment Night.
8...... Bible Study........ Spiritual Warfare.
9 to 10 ............ MR studies of the CBI.
LOL......... I have a feeling You may get board with too much of I ......... LOL.
But if You know our CCs .......... These 4 hours will seem like 1. We have many encouraging study files to share God's Grace and Blessings to You all..... Aloha :hangloose: KTFA, Frank
Post by prophecy » April 15th, 2014, I have read much of the writings of Memphis and to my understanding find them mostly "spot on".
I do have to question the following. Perhaps you could expand a little?
A paragraph from below:
The article has a common theme throughout that states clearly this truth:
The true support, justification, for any nation's currency lies not in their reserves of currencies or even in how much gold they own. By extension the natural resources of the land mean nothing to their currencies intrinsic value to the world as the true and only REAL measure is the nation's productive capacity.
What they make, what the citizen's produce. This speaks to the industry of the land and the currency must always revert to a value reflective of this.
A number of our nation's leaders warned us and fought against a fiat based monetary system, especially one controlled by independent bankers. At least a couple of past Presidents are suspected of being murdered because they took such a stand.
Money has been based on something tangible much longer than not and every time it moved away from such a standard it failed. I do agree that a nation's productive capacity is a strong component in the value of a currency but not that a country's reserves or natural resources "mean nothing" to the intrinsic value.
Perhaps that is one of the challenges in the shift we are seeing. There is no simple equation to identify value. Without something measurable and in limited supply on which to base value we are left with something that is easily abused. America has become drunk on the wine of her fornication in this regard.
Post by hawger03 » April 15th, 2014, Comments in Reply to: Post by Memphis »
Hey guys, thought i would drop in and comment on an article from Monday titled:
The power of the cash reserve to support the value of the national currency LINK
hawger03: Great post Memphis and I agree completely. In all of the previous studies, the "dinar" factor has not been included. Not that the RV is a cure all as the same policies that got us into this hole are still in place.
With the current administration in control, I do not have any faith that they will use the blessing to do what is right for the American people and reduce our national debt. My hope, at the current moment, is that the American public continues to honestly evaluate the direction our nation is heading and does some house cleaning in November.
Without legislative combat with our dictator in chief, the saving possibilities of the dinar RV will be wasted on reckless spending and social programs that do nothing to get our nation back on track.
I also feel that you are correct in stating that our monetary value should be on par with our abilities to be economically viable. Regardless of how the dinar proceeds are used, we much still assume that the USD is and should lose value on the world stage. We have become stagnant and complacent as a people.
With all of the social welfare programs in place and continuing to develop, the current and next generation are being taught that the world owes us something and that hard work and building things is not necessarily the path to prosperity. We don't practice what we preach.
For example, we teach Iraq that it is important to install tariff laws to add expense to imported goods to bolster the competitiveness of domestically grown or built products when back home, we install free trade agreements.
The American consumer demands inexpensive products so the government gives them what they want without regard to the nation's ability to keep our manufacturing base strong.
We need to practice what we preach.....escape these free trade agreements and install tariffs and build the incentive to be a producing nation again.
The benefits are enormous for our country as our money stays home, US manufacturing becomes economically viable, manufacturing gets pulled back into the US from cheap labor countries like Mexico and China, the American public becomes employed again and the US government tax base grows resulting in less borrowing from outside the US.
With the devaluation of our currency, exports (other than food stuffs) will increase as our products become more competitive with countries who artificially devalue their currency (China). If you want to see a flip flop and a whole lot of crying, just watch the US start cutting imports from China.
I disagree with those who say that China does not need the US people to consume their products.
It was proven in 08 when the big slide happened and US consumers held onto their money in fear of the slide. China's factories ground to a standstill and nightly news pictures showed the thousands of Chinese out of work.
Don't for a minute think that China has the US under their thumb. Basic economic laws of supply and demand will always apply in ANY political system or world order. If you cut demand, the supply side will most certainly suffer.
I have been a student with you Memphis and my linear thinking has greatly expanded. Many thanks to you sir if for nothing other than helping to clear the fog that is in front of all of us.
It's not often that a person has the opportunity to see the true workings of macro economics in all of it's flawed form. If the US does indeed hold a significant quantity of IQD, I feel that the RV could be HUGE help to get our country back on track but it would also have to be combined with a complete shift in the direction of the US government to fiscal responsibility.
Frankly, I don't see this happening at least for the next 2 years and 5 months. I'm praying that the US public snaps out of sheep mode and elects constitutional conservatives (notice that I did not say Republicans of GOP) who actually have the best interests of their constituents and the US citizens as a whole at heart.
With control of all of congress, liberal destructive policies can be cut and limited. If not, we all better get prepared for socialist/communist government to rule our lives from here on out. Our nation, as we knew it, hangs on the precipice. A strong push one way or the other will determine our future fate.