***My take on what could possibly go down*** MY OPINION - Easyrider
We are hearing all kinds of rumors lately...
Number one on the hit list... Is the dinar revaluation going to happen?
In my humble opinion, Yes, unless God jumps in to stop it.
The revaluation of the dinar is much more than the revaluation of one country's currency...It is a change and beginning of a new banking system in compliance with Basel III accord with information at the link below. The site has a lot of information. http://www.bis.org/
There are those continually bashing and saying that this is a scam due to fear, ignorance, and an inability to wrap their heads around economics and the coming of new banking systems and the correlation of the fiat banking system along with the current worldwide economic state of affairs.
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...Suffice to say that this will happen to inject some false confidence into the fiat currency system before it collapses. This is just my humble opinion as I believe that the global government and one currency is still quite a ways away.
Much has to be done and happen before all of Earth's countries and nations will accept one world currency and it will more than likely have to be done without choice. No country wants to be controlled by another country. Even dictatorships don't want to be controlled or messed with. Much is left to happen yet.
I believe that Iraq is pivotal in the coming of the world's economic change and I also believe that the RV of the Iraqi currency is necessary to start the change in the shift of economic global power and the growth of the Middle East economy which will eventually become the GCC with Iraq leading the way.
Iraq is the most resource rich country in the area and will outshine all the other Middle East countries as a democratic Muslim country which places some fear in the other Arab countries also. Regardless Iraq is destined for rapid growth and economic recognition shortly after it enters international trade and joins the World Trade Organization.
We are getting close..and yes Iraq still has some glitches that will forcefully be worked out. Conflict always brings unity to destroy that which impedes the path forward and one rock can be moved out of the path no matter how big, stubborn, or deeply imbedded.
The speed of the RV has a few factors with the biggest being inflation and the secondary being Maliki and the Iraqi cabinet. Parliament is on the side of the Central Bank of Iraq and the autonomy of the CBI to be free from government control to operate and make financial decisions.
Better get used to this M as it would take the worldwide collapse of the entire fiat currency system to even give you a shot at controlling the activities of any central bank.
This is still a ways off in my humble opinion as new currencies will need to backed by natural resources, precious metals, agriculture, and manufacturing including exportable services and goods.
Precious metals will give backbone to currencies but food production will always be the greatest of demand and as a result of the most worth in times of hardship.
Once cannot survive by eating gold or silver..think about how many wealthy would give up whatever precious metals were necessary just to go on living. Pride and arrogance have very little strength or power to those who are starving, sick, or dying.
I do believe that inflation is not under control in Iraq currently, nor are the people of Iraq content with the amount of food, water, electricity, travel systems, and the access to work and means to better them selves.
We all know how prideful the people are and it is tough to hold your head up while others hold you down. This needs to change in the near future.
The CBI needs to interject life into the IQD and they cannot afford to pump in higher denominations that they have so long been working to remove from the local economy while they have been educating their citizens of a new Iraqi Dinar that will have lower denominations and greater purchasing power than the USD.
Dr. Shabibi has stated that the Iraqi Dinar will be the greatest currency in the Middle East and the Arab world, as well as the international market place.
The US dollar has been wreaking havoc with the IQD especially since Syria and Iran's currencies have little or no international value and have been dropped into the Iraqi economy.
As Syria and Iran is not widely recognized and admitted into world trade right now...it is very difficult for the two countries to obtain resources to maintain the countries and the people of those countries.
Syria and Iran have deflated the value of the IQD by removing US Dollars from the Iraqi economy. This has resulted in I do believe a very dramatic effect in the true worth of the IQD unofficial exchange rate which has been lowered 2X the value of the IQD against the US dollar loss.
So now Iraq is constantly removing US dollars off of the streets of Iraq due to sanctions against Iran and also smuggling into Syria? The result is the IQD is losing consumer confidence and buying power within Iraq and a black market has been created which is further lowering the unofficial buying power of the IQD as compared to the US Federal Reserve Note as very few merchants want to use the IQD now.
The US dollar is much more user friendly and internationally accepted currently as a reserve currency of strength and liquidity.
OK now as Dr. Shabibi sees, a new ever developing problem on how to get your own citizens to gain confidence in your own currency, start using it, and bring strength and recognition to Iraq's economy while striving to reign in the avenues of international trade and global banking recognition to better His country and people.
How can the introduction of large 000 denominations back into Iraq do anything now but further reduce confidence in the IQD and cause Iraq's inflation rate to do anything but rise faster and further than it was.
Shabibi only has three options..
1. RV the currency on the independent right of the CBI having the blessings of Iraq's parliament and either claim credit himself or share it with the Iraqi parliament while disgracing Maliki...
2. Wait upon the completion of the government of the CBI and for Maliki to be dealt with by removal or to have him start playing nicely with others in the sandbox.. or
3. Do nothing at all and watch all of his hard work stabilizing Iraq's Dinar to a point where it can once again RV and bring Pride to Iraq and the Middle East nations, quickly deteriorate and go down the tubes of failure.
Not an easy decision right now...with sanctions on Shab's country and vulnerable DFI funds waiting for vulture countries to pick it apart and lay devastation to all that he has so dearly protected and allowed to blossom under his care.
I believe that we are on the verge of the RV and that Maliki needs to be swiftly dealt with. I don't know how severely the reprimands have been taken to heart...but I also believe that he is too proud and arrogant to let Iraq fall apart under his seemingly all controlling dictatorship..
The CBI ball is in motion and it may well roll over more than one who stands in the way of the RV and the progress of Iraq into the global marketplace. Too many countries have forgiven way too much debt and invested way too much to the stability, infrastructure, and government of Iraq... I wouldn't want to be Maliki right now.
Yes the RV is real and is going to happen.. How soon you may ask? Near future is the best that I can say and I will step out and voice my opinion on the rate of the dinar initially.
According to inflation, Iraq's resources, and regaining it's place according to its last standing and also considering the Marshall Plan...; The IQD cannot come out lower initially that one to one in my opinion against the US Federal Reserve note.
Even at a 1 to 1 rate, the Iraqi citizens will not want to use the IQD unless it is worth much more than the US Fed Note. An internal exchange rate of 2 US Fed Reserves notes to IQD would be easy to see and figure out.
It would be very simple and anyone could tell that if I give you 1 dinar and you give me two US notes then the IQD is worth more. Within a month this will have spread through the mosques and the street markets about the new value of the IQD and how it buys twice as much as the US Federal Reserve not proving the Iraq is once rising to newfound strength and recognition after the downfall of the brutal Sadam dictatorship..
To those who say this will never happen...I say humbug and get a dose of reality.. To those who say 10 cents or under a dollar US I say get real and put yourself in Dr. Shabibi's shoes and you will get a reality check.
Iraq's currency needs to rise quickly to offset the devastation of Iraq's economy and infrastructure while gaining access to worldwide trade and international banking recognition.
If the Dinar is "pegged" initially or compared respectively to the Great Britain Pound when considering international exchange rates, it could be much higher against the US Federal Reserve Note.
The US Federal Reserve Note has been devalued through credit rating reductions from AAA+ down to AA and loss of consumer confidence within the US but most importantly internationally.
The continued printing of Federal Reserve Notes Flooding the international market has only served to further the devaluation and purchasing power of the US Federal Reserve Notes.
As most of us are not priviledged to the current worth of the US Federal reserve note and as to how the IQD is to enter the global economy, we can only guess at exchange rates, but suffice to know that as each country has it's own worth and strength; so shall the IQD be reflected in the international exchange rate markets and forex.
Iraq is a proud country and I believe that they will demonstrate strength and pride when the Iraqi Dinar regains its rightful place in the world's economy.
Both Shabibi and Maliki have stated this will be the strongest currency of value and they have always wanted a currency of 5 plus when compared to a base currency such as the US Federal Reserve note or Great Britain Pound Sterling.
It would be nice to see the IQD backed by precious metals when it hits the markets and not just another fiat currency prone to collapse that is backed by nothing but promise.
Iraq will not see interest in their stock markets or development interests unless they have a strong currency and a functional government that agrees to put the needs of Iraq and It's citizens first....
A government is only as strong as those they govern over. Strife and unrest leads to weakness which destroys confidence, and starts the quest for change, stability, and satisfaction of the people.
A government should never be satisfied if there is major discontent and strife amidst the population that it should be striving to Serve...."Not Control."
There are always rumors circulating and the real truth will only be known upon completion of the project.. Try not to wear your heart on your sleeve and waste funds that are needed to keep your families safe and secure.
This will happen.. there are just too many factors to stick a date to the wall. Only God and Shabibi know when this is going to go down and the date is definitely a moving target...
We sit upon the verge of change and the moment of history which shall never repeat.
This is just my humble opinion in regard to what has been laid out before us. `
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