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Vic Ticious Writes: Why Dropping The Three Zeros Will Not Be An RV
There is much confusion as to the difference between a RV and a RD. The governor of the Central Bank of Iraq has announce many times that Iraq will soon re-denominate their currency. The idea is to go from
1 Dinar = .0086 U.S Dollars to 1 Dinar = .86 U.S. Dollars
Now you say "Wait that is a change in value. It grew by 1000 times." Not so fast.
This is a slight of hand trick the Dinar *bleep* are selling you. You see the value of the money you have will not change by one U.S. penny. The value of the new Iraqi Dinar will not change by one U.S. penny. So you may ask "How is that when the value obviously changed by 1000 times." Well here is how and why:
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The old currency that we have will be worth the exact same after the re-denomination as it is worth right now. 25,000 Dinars will buy you 25 packs of cigarettes today and when they remove the zeroes you can still walk into an Iraqi store and buy 25 packs of cigarettes.
When compared to the new Dinar the old bills will be worth the same as the new bills minus the 3 zeroes. This has been published a million times by the CBI.
The new value of the Iraqi Dinar only applies to the new Iraqi Dinar. Since the new Iraqi Dinar (the (dealers) call them lower denoms) are brand new and never had a previous value they get an exchange rate out the door from day one that is 1 Dinar = .86 U.S. dollars.
You see the new Dinar didn't change in value since it is brand new and had no previous value. So at no time does the Iraqi Dinar actually change in value. As the news articles lately have mentioned, this is just window dressing. It is designed to make the Iraqi people feel that their currency is as strong as the U.S. Dollar.
The hope is that they will stop using the U.S. Dollar and start using their own money, the Iraqi Dinar.
Now for all of you that are screaming LOP I have news for you. There is no such thing as a LOP. That term was invented solely by the pumpers that have been making money selling you Dinar.
Removing the extra zeroes after a re-denomination is standard practice and doesn't have a name since it is how re-denominations have been done since people started using money. Look up LOP in any dictionary, even a slang dictionary, and you won't find that term.
I am posting this to wake some of you up from the pipe dream you are having. VERY soon the re-denomination will occur. It will NOT be a world changing event. It will happen with no spectacle because it has no effect on anything. "The greatest re-distribution of wealth in all history" is absolute B.S. that the pumpers sold you to buy this Dinar. That said I will add some of my other favorite ***** **** slogans
"164 countries will all revalue"
"This event will-reset- the world economy"
"The big 4 banks are ready to cash you in"
"My super high up sources say this Tuesday is a lock"
"It will revalue at $22"
"An in-country revalue happen last night"
"Make sure to have your trusts in order to protect your millions"
Iraq has a promising future. Please hold on to your Dinar it really is a good investment. The Iraqi Dinar exchange rate will go up eventually and peek out around where the Kuwaiti Dinar is.
It will take many years but you stand to make 300% on your money so don't lose faith just don't buy into the 1000 times your money hype.
May God grant you the wisdom to understand these simple truths. I don't want to come on this forum and say "I told you so" when this happens some time in the next 6-8 moths. I don't want to be right.
I just want to be the one voice in the crowd that screams the truth hoping that even one person will listen. Why? Because 98% of you are hanging you hopes on something that is preposterous and just hate to see you fall. I feel that this is so serious that some will actually commit suicide over this.
"PARTY-TIME" MEMBER REPLY:
Well if they take your 25,000 dinar note and treat as a new 1 dinar note then you would be correct. But the belief is the old 25,000 dinar note will still be treated as having 25,000 dinar and they won't treat it as a 25 dinar note.
One of things that would lead to believe the 25,000 dinar note will still be treated as having 25,000 dinar instead of treating it as a 25 dinar new note is the fact they say these two currenicies will co-exist for about 2 years.
Well if the 25,000 dinar note is going to be treated as a 25 dinar note after changing out the currency, then WHY co-exist for 2 years?
That part would make no sense because all they need to do is just require all old currency be exchanged at a bank for new currency and give about 90 days to exchange your currency.
There would be no point and no need for the two to coexist. You merely have to exchange the old for the new at a bank. This would eliminate the stores from having to deal with any of the old currency once the new currency is issued.
Sort of like when FDR put this country into bankruptcy and ordered all gold to be taken to a bank and exchanged for federal reserve notes. No one could use gold coin for money at any stores. They HAD to exchange it at a bank for federal reserve notes and use those for money at stores.
If they plan to treat the 25,000 dinar note as a new 25 dinar note, then there is no purpose nor would it make any sense at all to have the two coexist. You just take the old to a bank and exchange your 25,000 dinar note for 25 dinar in new notes.
What sense would it make to have stores to have to deal with two currencies when it is much easier and much quicker by requiring everyone to just turn in all the old currency at a bank and exchange it for the new where the old can no longer be used at any stores?
The ONLY way it would make sense is only if the 25,000 dinar note will be treated as still being 25,000 dinar, where if you were to take the 25,000 dinar note to a bank and exchange it, they will give you back 25,000 dinar in the new currency.
So the new 1 dinar replacing the old 1,000 dinar will have no affect in value where once the new 1 dinar is released and the old 1,000 dinar is no longer issued, but would affect that 1 dinar new note where that 1 dinar note will not affect the value. 1 dinar equal to 86 cents USD is the same value as 1,000 dinar note equal to 86 cents today.
The NEW currency will not affect the VALUE, but the old currency still floating around in circulation WOULD affect its value where IF they still treat that old 25,000 dinar note as 25,000 dinar where the old 25,000 note would be worth 25,000 x 86 cents.
Until this all happens we won't know for certain but the fact they say the two currencies will coexist for two years certainly lends favorable where the 25,000 note will remain treated as still being 25,000 dinar.
Otherwise there would be no point at all in having them coexist for two years when it would be much easier to just have everyone holding any old notes to have to exchange them at a bank within 90 days.
Why else would they just create confusion for all the stores by having them coexist unless the old notes will be treated as still being worth the number of dinar stated on the note?