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Dinar Updates Monday Evening Chat 8-15-16 Part 1 of 2
fergie says():Hello everyone. I read a cbi statement over the weekend that concerns me. I will link the entire article but here is the excerpt i am most concerned about,
fergie says():"Firstly – on the horizontal level: Deleting the three zeros
– Transforming 30 trillion Dinars to 30 billion Dollars by deleting three zeros from the current currency and changing it to a new currency which eases the arithmetic operation with the smaller numbers on the example of the federal budget accounts,
banking and corporate accounts as well as cash family accounts (individuals) without resulting in any change or difference on the normal value of income or monetary wealth of people and also without affecting the normal value of contracts and commitments between people.
This is called Homogenous Function of Degree Zero.
As long as the amount of new smaller numbered money covers the trading of the same amount of products"
fergie says():Apparantly, this is the "correct" translation given by an interpreter who speaks both fluent arabic and english.
fergie says():The link to the entire article and cbi statement is, http://dinarrvnews.net/central-bank-...eleting-zeros/
subgirl says to fergie():this is from another site and we should just stick to this site and what we know!!!
fergie says():So this cbi statement means nothing because it's quoted from another site?
Mudder says to fergie():Where is the link that indicates it came directly from the CBI??? It maybe some ones opinion...
subgirl says():could not translate that article...
_firefly_ says to subgirl():You can't translate a JPG. Image :)
fergie says():me neither. but I do not like the sound of the article at all
subgirl says to fergie():it seems to be an old article. and you need to stick with what you know...
fergie says():well I have seen mentions on this site regarding that cbi wanting to drop to 30 billion dollars in currency and this would be the best way
subgirl says to fergie():come to Newstime tonight at 6:30pm CST and 7:30pmCST for the call!!!
subgirl says to fergie():bring your questions to the call!!!
fergie says():I have a question. if the rv comes out at 1$ and there are 1 tillion dinars in circulation (I know, way under the real number but I am being ultra conservative to emphasize the magnitude of the question), that means there will be 1 trillion worth of dinar. How can that be with the cbi having only 55 billion i reserves
fergie says():I have to work during the calls, bummer
subgirl says to fergie():bummer...
Mudder says to fergie():The currency value isn't as inportant as note count... Also, this would be more involved in country...
fergie says():well that sounds backwards. How can the note count be more important than the value
fergie says():payment for goods anywhere is always based on value not how many notes you have
fergie says():my plummer will take one 50$ bill but not 20 one dollars bills, correct?
Mudder says to fergie():When the value of the currency goes up. The value of goods will go down...
fergie says():reserves are suppossed to cover the currency value according to the imf
fergie says():So one day a 1000 dinar note buys one coke, then the rv happens and the next day that same 1000 dinar note can buy 1000 cokes?
larrykn says to fergie():when this happens the 1000 dinar note will be 1 dinar , don't forget they will remove the zeros, an raise the value of that note
fergie says():so if the 1000 note becomes a new 1 dionar note as you say, then isnt that a lop ( i know, bad word) followed by a raise in value
larrykn says to fergie():no that is only in country , on the outside they will keep the zeros
wmawhite says to larrykn():Sorry.................that is not what the "delete the zero project" means...................it does not mean that a 1,000 IQD note becomes a 1 IQD note.
fergie says():this is exactly what i was afraid of
subgirl says to fergie():we are not going to lop!!!
wmawhite says to larrykn():The delete the zero project is the gradual removal of the larger notes from the market place.......and that happens by the increase in value of the IQD which will reduce the prices in the market place, thus making the smaller notes useable.
fergie says():good i hope not. its been hard to think about anything else this past weekend
wmawhite says to fergie():Stop hoping..............the CBI has told everyone of us exactly what they are doing................ther is no need to hope. We have the facts.
larrykn says to wmawhite():right , I was about to say the value of the dinar would raise, when they bring in the larger notes they will be replace by the lower notes with a higher value , right
subgirl says to wmawhite():AMEN!!! :) thank you!!!
fergie says():I still dont see how the note count is more important than the value of the total notes
cricket22 says():The Central bank: the project to delete the zeros will be applied beginning of the year 2017
wmawhite says to larrykn():No problem.....................all is good........
larrykn says to wmawhite():ty for that info :)
larrykn says():back to my corner :D
wmawhite says():I sent this to some other folks the other day.....................
Remember, the size of the notes in a marketplace is reflective of the price of goods in the marketplace. In order for the lower denominated notes to be used in the marketplace is for the prices to have decreased enough for them to be used.
With Iraq still importing 85% of its goods, those prices in the marketplace will lower once the value of the currency buying them increases in value significantly.
Those goods are imported today with the USD. Those prices will not be brought down in price importing them with a currency less valuable than a dollar.
rcookie says to wmawhite():WOW....STEP AWAY FOR 1 MINUTE......AND
wmawhite says to rcookie():.............BREATHE...........
cricket22 says to rcookie():You're fine... :D
rcookie says to wmawhite():IM MORE THAN FINE.........IT OTHERS...WOW!!
fergie says():so the cbi will be able to have trillions of dollars worth of dinar while only having 55 billion in reserves? Or will they adjust the reserve total afterward to reflect the currency in circulation?
wmawhite says():something else,...................a $20 note inside the USA is also a $20 note outside the USA. A 50 Euro inside the European Union is also a 50 Euro outside the European Union. Try to remember this. A 1,000 IQD note inside Iraq will still be a 1,000 IQD note outside of Iraq once value is added to the IQD.
Let me state this again and again........there is NONE of this inside Iraq and outside of Iraq when it comes to their currency. The IMF requires the CBI to honor all currencies without any restrictions.........the free flow of currencies in and out of the country.
wmawhite says to fergie():I would like to try to answer your question, but I am not sure what you are asking..........sorry.
rcookie says to wmawhite():WHAT IS FERGIE TALKING ABOUT...
Pensacola27 says():one rate
fergie says():lets assume, conservatively, that there are one trillion dinar outside iraq. If they rv at a 1 to 1 rate then wont that mean increase the value of the one trillion dinar to 1 trillion worth of USD?
wmawhite says to fergie():Try to understand the the note count.......the number of notes is import...........not the total value of the notes.
fergie says():*an increase to the value of the dinar
fergie says():Im trying to understand this but how is more important
fergie says():how is the value less important when everything is based on the value
fergie says():I cant buy anthing worth 100$ with 50 one dollar bills but i can buy it with one 100$ bill
Pensacola27 says():one trillion note or 1 trillion one dinar note, it's all the same
wmawhite says to fergie():Why would that be import? Why not tell me what the value is in the Yen or the GBP or the Euro? It is different for every currency...........what would the value of the IQD be n the Oman Ryal? Instead, what is the total number of notes?
wmawhite says to fergie():Let me explain..........
fergie says():so it would seem that iraq could print one billion notes and it doesnt make any difference whether they are all 500 dinar notes or 50000 notes?
wmawhite says to fergie():If in your community you have the only vehicle...........how import or valuable is that vehicle compared if everybody has a vehicle?
Same with currency................the more money that is printed the cheaper/less valuable it becomes.......when there is fewer notes/less money.....the more valuable it becomes......
fergie says():yes the number of notes are less but what about the the total value of the notes
fergie says():when you say the more money that is printed, the less valuable it becomes, wouldn’t the total value of the notes be more important than the number of notes
wmawhite says to fergie():If you have 2 25,000 IQD notes.....that is 50,000 IQD in circulation............or if you have 1 (one) 50,000 IQD note that is 50,000 IQD in circulation.
fergie says():so using your numbers, we have a total of 100k iqd from a total of 3 notes
wmawhite says to fergie():There is less in circulation with the one note than with the two notes.
wmawhite says to fergie():No.............it is either or.......................two notes in one example............one note in the other example
fergie says():now when we remove one 25k note, we have 75k but when we remove the same amount of notes, 1, and this note is the 50k, then we have only 50k left so by removing the higher note, we are leaving less value in circulation which should mean more valuable even though we still only removed one note
Pensacola27 says():there is 50000 still in circulation. What does it matter with how many pieces of paper it is
wmawhite says to Pensacola27():The fewer notes in circulation means a greater value of the currency.
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