Millionday Roundtable 9/12/14 Part 2
[jtank] what about electronic transfers?
[millionday] NO THEY HAVE NOT REPRINTED THE 25,000 DINAR BUT DID REPRINT THE US DOLLAR IN THAT DENOMINATION WHEN CANDY WAS A PENNY
millionday] THEY ARE PREPARED FOR ELECTRONIC TRANSFERS AT THIS TIME BUT I WOULD LAY A BET THAT ALL IRAQIS DONT KNOW WHAT THEY ARE AND HOW TO DO THEM –
THEY MAY EVEN BE REFUSING TO TRUST ELECTRONIC TRANSFERS ALL TOGETHER
[slh5282] I dont remember that, when was that, candy being a penny? lol
OOTW] Hi md - great information from you - ty - i'm wondering if for now the language law is on the shelf? As when you run a search in the gazette with the search term "in force" the language law is listed without this association - so it's not "in force" according to the gazette
[millionday] I HEARD ABOUT IT ON THE INTERNET LOL
[millionday] OOTW THE LANGUAGE LAW ?
[OOTW] Yes the language law states clearly that the currency is to have the kurdish language on it
[DinarGroupie] I am curious to know if this answer about the new 10k notes satisfies joekid or not
[OOTW] So i wondered what the connection is if any with the release of these 10k notes
[millionday] WHAT DO YOU MEAN THE LANGUAGE LAW ? -- THE LAW OF COMMUNICATION OR ARE WE DISCUSSING THE CURRENCY STILL?
[joekid] Dinar groupie no
[OOTW] The currency
OOTW] Article 8 and 18 of the language law says that currency is to contain the kurdish language
[OOTW] So now we have these new notes being released
[millionday] OOTW YES THE CURRENCY IS DESIGNED WITH THE KURDISH LANGUAGE ON IT -- IT IS THE AGREEMENT OF DESIGN -- THE FORMAL NATIONAL CURRENCY DESIGN
[OOTW] And from what i can see, they do not have kurdish on them
[OOTW] Ok thanks it's just that i have not seen any of the articles on this state that the 10k notes contain kurdish language on them
[OOTW] Sorry i absolutely do not mean to throw a wrench into the discussion
[millionday] YW ALL THE TIME HUN -- GOOD TO SEE YA
[DinarGroupie] Millionday your explanation doesn't really satisfy joekid about the new 10k notes. I think he fears the notes are a sign the RV is far from ready, if I read him right.
[millionday] THE CURRENCY DESIGN HAS THE KURDISH LANGUAGE ON THEM -- THE ENTIRE SERIES
joekid] Dinar groupie those are not my thoughts, but the more there is in circulation the lower the rate will have to be.
[DinarGroupie] Ah, okay sorry
[millionday] IT IS NOT A SIGN THAT THE REVALUE OF THE DINAR IS FAR AWAY AT ALL –
IN FACT IT SHOWS THE OPPOSITE -- WHEN THE CURRENCY CHANGE PLAN WAS PRINTED AND RELEASED IT BEGAN WITH THE EXCHANGE OF THE 10,000 NOTE
[jtank] could the 10k notes telling us they are going to float from maybe 10 cents
[millionday] DinarGroupie PPSSSSTT -- THERE IT IS -- LOL
[DinarGroupie] Md what about lowering the rate of the RV? More notes out equals lower rate?
[awesomedtl] millionday lol lol
[pinkadonai1] millionday you are soooo cute!
[disciple7] How could iraq conduct business with a float?
[DinarGroupie] MD lol
[millionday] IT HAS NO BEARING AT ALL HOW THE ISX IS GOING TO SELL THE CURRENCY ON THE MARKET AND MARKET THE DINAR
[awesomedtl] DinarGroupie I wouldnt care if it started off low cuz we know the market would drive it up fast
[millionday] DinarGroupie THE AMOUNT OF CURRENCY OUT IS A TOOL THAT IS USED TO AFFECT INFLATION
[sczin11] Disciple, BINGO
[DinarGroupie] Md it won't affect the RV rate negatively?
[millionday] DinarGroupie NO THAT IS NOT PART OF THE CALCULATION –
IT ONLY AFFECTS THE NEEDS AND THE PRICE OF PRINT AND ALSO THE INFLATION OF THE COUNTRY -- THE AMOUNT OF BILLS DOES NOT AFFECT THE RATE OF THE DINAR IN ANY WAY AT ALL
[slh5282] If it is a float, then the change in the value would be so often and they would have to change the value in the system every few hours or minutes.
How could they not cause a complete halt in the economy or purchasing by doing so?
[DinarGroupie] Ty MD on behalf of joekid and me! lol
millionday] NO IF IT IS A FLOAT IT DOESNT CAUSE THEM TO CHANGE IT EVERY FEW HOURS
[millionday] OK LET ME HAVE THE FLOOR
[millionday] DEFINITION OF 'FLOATING EXCHANGE RATE' A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.
Thus, floating exchange rates change freely and are determined by trading in the forex market. This is in contrast to a "fixed exchange rate" regime
[millionday] THIS IS WHAT THE CURRENCY IS DRIVEN BY -- SUPPLY AND DEMAND -- THE CURRENCY FLOATS FREELY --
[millionday] 'FLOATING EXCHANGE RATE' In some instances, if a currency value moves in any one direction at a rapid and sustained rate, central banks intervene by buying and selling its own currency reserves (i.e. Federal Reserve in the U.S.) in the foreign-exchange market in order to stabilize the local currency.
However, central banks are reluctant to intervene, unless absolutely necessary, in a floating regime.
[millionday] NOTE -- THE AUCTIONS COULD BE USED TO MAINTAIN A HUGE CHANGE IN THE RATE AT FIRST -- HOWEVER IT IS THE CHOICE OF CBI
millionday] GOLD STANDARD SYSTEM
[millionday] The creation of the gold standard monetary system in 1875 marks one of the most important events in the history of the forex market. Before the gold standard was implemented, countries would commonly use gold and silver as means of international payment.
The main issue with using gold and silver for payment is that their value is affected by external supply and demand. For example, the discovery of a new gold mine would drive gold prices down.
millionday] The underlying idea behind the gold standard was that governments guaranteed the conversion of currency into a specific amount of gold, and vice versa. In other words, a currency would be backed by gold.
Obviously, governments needed a fairly substantial gold reserve in order to meet the demand for currency exchanges. During the late nineteenth century, all of the major economic countries had defined an amount of currency to an ounce of gold.
Over time, the difference in price of an ounce of gold between two currencies became the exchange rate for those two currencies. This represented the first standardized means of currency exchange in history.
millionday] The gold standard eventually broke down during the beginning of World War I. Due to the political tension with Germany, the major European powers felt a need to complete large military projects.
The financial burden of these projects was so substantial that there was not enough gold at the time to exchange for all the excess currency that the governments were printing off.
Although the gold standard would make a small comeback during the inter-war years, most countries had dropped it again by the onset of World War II. However, gold never ceased being the ultimate form of monetary value.
[millionday] OK SO LET ME EXPLAIN --
[millionday] DUE TO THE LACK OF ENOUGH GOLD TO BACK ALL CURRENCY AS TIME WENT ON AND THE VALUES BECAME MUCH MORE -- THE BACKING CHANGED OVER TIME –
BUT GOLD IS STILL USED SOME --- IRAQ HAS 90 TUNS ----
[millionday] THEY HAVE IT USE WITH RESERVE CURRENCY AND ALSO OIL -- THE CALCULATIONS HAVE CHANGED AS WELL COMPARED TO HOW IT WAS DONE IN THE PAST
[millionday] WE CAN EXPECT THAT THE RATE OF THE DINAR WILL RAISE VERY QUICKLY BECAUSE IT IS A NEW MARKET AND ALSO IS THE ONLY COUNTRY THAT WAS NOT EFFECTED BY THE RECESSION
SO THE INVESTMENT IN THE COUNTRY IS SMART --
AND THE EXPANSION INTO IRAQ BY MANY COMPAMIES MAKES SENSE DUE TO THE LACK OF EVERYTHNG AND THE NEED OF THE NATION –
ALSO THE NEW STOCK MARKET IS A HUGE OPPORTUNITY FOR ALL COUNTRIES ----
[millionday] WE ARE VERY INTERESTED IN JUST THE CURRENCY BUT KNOW THIS
millionday] MANY INVESTORS ARE VERY INTERESTED IN ITS GROWTH , LABOR MARKET, AND ALSO THE OPENING OF THE ISX AND ESX ----
[millionday] SO KNOW THE WAY THE CURRENCY HITS THE MARKET (FOREX) -- ONLY MATTERS TO THOSE LONG TERM INVESTORS –
THE DAY YOU LOCK IN YOUR EXCHANGE RATE FOR EXCHANGE OF THE DINAR IN THE CURRENCY SIDE OF THE MARKET --
YOU WILL ONLY GET ONE RATE -- IT DOES NOT MATTER HOW THEY LEAVE IT IN THE MARKET
[millionday] THE SHORT TERM OR EVEN LONG TERM RAISE IN ITS VALUE DOES NOT MATTER WHEN YOU ARE INVESTED IN THE CURRENCY --
IT WILL BE HERE ONE MINUTE AND GONE THE NEXT
[millionday] IF YOU PLAN ON INVESTING IN THEIR STOCK MARKET OR EVEN BUSINESS THERE FOR YOUR SELF --
THAT WILL BE A DIFFFERENT TYPE OF RESEARCH AND ALSO A DIFFERENT TYPE OF INVESTING --
THIS WILL CREATE A NEED FOR A DIFFERENT TYPE OF PROFESSIONAL TO CONSULT WITH
millionday] SO THE QUESTION OF HOW IT WILL COME OUT -- FLOAT/FIXED/ECT ----- DOES NOT MATTER HERE SMILE END OF COMMENTS
[DinarGroupie] Some argue that they must float because the IMF are involved, and the IMF always floats it up. Iraq supposedly signed an article or agreement with IMF that says they will float. What say you? As I understand it, this is one of the researchers main arguments.
[millionday] I HAVE SEEN THAT STATEMENT AS WELL BUT HAVE NEVER SEEN ANY PROOF OF THE IMF DOCUMENT STATING THEY PROMISE TO FLOAT
[ernier] Information conveyed, recommendations made, and opinions stated ("Content") on this site are meant to provide information in regard to the subject matter covered.
The Content presented is, on the date presented, believed to be an accurate portrayal of the relevant facts, and is an analysis of those facts.
The Content is provided solely for informational purposes, and is not to be construed as an offer to buy or sell (or a solicitation of an offer to buy or sell) any financial instruments or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation would violate applicable laws or regulations.
[sczin11] Dg 2013 imf consultation states pre sadaam + 20%
[Tex1] millionday Very well said,, we should copy and save that info
[OOTW] Md from my research, every exchange regime chosen, is respective to that country - so i agree with you
[DinarGroupie] sczin11 does that also mean float?
[millionday] ernier EXACTLY MY FRIEND -- THANK YOU
[awesomedtl] any new developments with the budget ? or is that for tuesday still??
[highstarr] As BGG said in the last call, even if the rate floats or comes out low otherwise, considering all the changes going on in country, the market supply and demand will sling it quickly to a higher rate anyway.
I think BGG said probably a month or so. Who knows how much longer we'll wait, but for now I've accepted that calculators still allow 1166 as a multiplier (or at least mine does ).
And the WTO could grant full membership accession at the 1166 currency rate. For example, Vietnam is a full member, despite its present currency rate.
[sczin11] Dg, no
[larrykn] the ? is where will is start from on the float
[awesomedtl] million what are we waiting for ? as far as this event now? just the cbi to change the rate?
[clay] Vietnam is not allowed to vote
[awesomedtl] clay they didnt accept my vote either lol
[millionday] highstarr THAT IS VIETNAMS REALITY RATE HUN –
EVEN THOUGH IT APPEARS TO BE OFF IT IS NOT -- THAT IS THEIR ACTUAL REALITY RATE –
THAT IS THE DIFFERENCE FROM IRAQ -- THAT IS NOT IRAQ`S REALITY RATE AND THEY CAN ONLY JOIN THE WTO WITH THEIR CURRENCY PRICED AT ITS ACTUAL VALUE -- REALITY
[jtank] and iraq has an imposed rate now
[clay] And no vast resources
[sczin11] Clay, vietnam is a country, cant vote!
[ernier] Yes, there will be a float. All currencies float. But, there will be a reality rate set by the CBI before that takes place. They will set a rate and then it will be traded internationally like all other currencies. It will not float from 1166. That is not the reality or pervieved value rate.
[millionday] awesomedtl YES AND FOR THE INVESTMENT AND BANKING LAWS TO BE LOOKED OVER TO MAKE SURE THEY ARE RIGHT -- THEY ARE DOING THAT RIGHT NOW
[tbob] nobody can explain it like you can millionday -- your knowledge an understanding of the economic subject is beyond compare
millionday] clay WHAT DO YOU MEAN - VOTE IN WHAT?
[clay] Md on any trade decisions
[millionday] THEY CAN WITH ANY ORGANIZATION THAT THEY ARE A MEMBER OF -- ACTIVE
[millionday] IF THEY CAN NOT VOTE THEY ARE NOT AN ACTIVE MEMBER
[highstarr] millionday So could Iraq's reality rate be 1166, as far as WTO is concerned, until market supply and demand actually change it?
[clay] Was thought different
[millionday] highstarr NO -- NOT AT ALL -- THAT IS AN IMPOSED RATE THAT HAS NOTHING TO DO WITH THEIR REALITY RATE FOR ENTRY TO THE GLOBE OR FOR TRADE OF ANY KIND OUTSIDE OF THE COUNTRY
heartland] with all that has been accomplished, do you feel that Iraq is trying to bring this to a completion this month?
[clay] Md will Isis problem hold this back
[millionday] clay THEY HAVE A VOTE IN ANY ORGANIZATION THEY ARE AN ACTIVE MEMBER IN -- HOWEVER THE RATE THEY HAVE SET RIGHT NOW IS THEIR REALITY RATE –
THEY HAVE A LOW GDP AND MANY OTHER DECIDING FACTORS THAT CAUSE THE CALCULATION TO SHOW SUCH A LOW RATE -- BUT IT IS REALITY
[millionday] heartland I DO NOT KNOW THE TIME THEY ARE SHOOTING FOR BUT IF THEY ARE TRYING TO OPEN THE BUDGET ON OCT 1ST OF THIS YEAR –
THEY HAVE PAYMENTS IN THIS BUDGET TO INTERNATIONAL DEBTS AND ALSO DISTRIBUTION OF DISPLACED AND OIL PROCEEDS THAT WILL GO TO CITIZENS THAT ARE OUTSIDE OF THE COUNTRY AND INSIDE AS WELL ---
THEY WILL NEED TO HAVE AN EXCHANGABLE CURRENCY AND BE INTERNATIONALLY RECOGNIZED FOR THAT TIMELINE TO BE MET
[highstarr] Is reality rate a formal business or currency term or dinarland lingo? I can't find it online to learn more about it.
millionday] IN ORDER FOR THE DINAR TO BE INTERNATIOALLY RECOGNIZED AND EXCHANGABLE -- THEY HAVE TO HAVE A REALITY RATE CALCULATED –
NOT THE IMPOSED RATE -- OR FAIR TRADE OF THEIR PRODUCT (THE DINAR) WILL BE PRICED WRONG AND THEY WILL LOSE
[hstrymknwmn] High star I think it has been in a few articles out if Iraq
[millionday] highstarr IT IS A REFERENCE TO THE RATE THAT A COUNTRY HAS