Straight Talkin Mike & LJ's comments July 5th regarding Nonsense put out by another forum about Having to Cash Out Only In Iraq based on article dated July 5, 2012
Banking expert: Iraqi dinar to the economic stability needed to be desirable in the outside"
The Key sentence in this article...
"He added that the Central Bank afraid to enter the counterfiet currency when allowing entry and exit of the Iraqi currency, but allowed to get out of the country will force countries to deal with and become internationaly accepted and has a real value against other currencies"
That sentence doesn't sound like I am going to have to fly back to get my money does it? (like another forum threw out there several weeks ago)
LJ: You just have to call it like it is...You have these guys who put stuff out there and don't research it enough and not anything to really back it up....you have an article like this that backs up what we say and how they are going to handle this process...This is just good news all the way around
Straight Talkin Mike: Its called internationally traded currency and they are working towards it...This is how the process works....its a process that goes thru it...so when people start talking about nonsense like this other forum did...don't listen...
This article was fantastic......it explains it all...tells you the all the steps they are taking to make it an internationally traded currency...
Right now before the RV they are limiting the amount of currency that goes outside the country...brilliant idea...nobody can take out millions of dollars and go ahead convert it and bring it back..that is a step - thats a logical step...that needs to happen so that people can't go out and take advantage of an arbitrage situation
#2 If we let it out slowly & people start to mess with us on the international banking side we are going to have so much value that they will have to deal with the currency.
This article actually talks about this becoming a Hard currency...Do you know what a Hard currency is people? A hard currency is a currency that Federal Reserves keep in reserves so they can add to their 63 billion in reserves because it has value and it doesn't fluctuate.... like gold....silver...dinars won't fluctuate because it is a managed float and they have value based on what they have in the country...
Banking expert: Iraqi dinar to the economic stability needed to be desirable in the outside
On 2012-07-05 | by David Muhannad Log In | 138 |
Integrity electronic / Baghdad
Likely beneficial financial expert Elias Abou, the cause of the unwillingness of countries in the world to deal with the Iraqi dinar exchange rate to fluctuate in front of hard currency and the absence of political and economic stability in the country.
Abbou said on Wednesday: The monetary policy pursued by the Central Bank refused to bear the responsibility of regional countries and international dealing in Iraqi dinars, because they do not allow the exit of large amounts of local currency abroad and restricted passengers to take limited amounts of the dinar when traveling.
He added that the Central Bank of afraid to enter the counterfeit currency when allowing entry and exit of the Iraqi currency, but allowed to get out of the country will force countries to deal with and become internationally accepted and has a real value against other currencies.
And: that the Iraqi dinar needs political stability and economic and financial goal to diversify revenue and increase total production of the country and maintain its exchange rate against the dollar, foreign currency in order to become an international currency dinar desirable in all countries of the world.
Often complain of Iraqi pilgrims and travelers from non-treated countries in the world, especially neighboring countries in Iraqi currency abroad for fear of fraud or speculation, as well as the continued decline of the value of the dinar against the dollar. Source
Straight Talkin Mike Comments about Article referencing the 10 year Period and the LOP
"Parliamentary Finance: Central Bank will continue to receive the old currency for a period of ten years" (Article is at bottom of this post - below comments made by Straight Talkin Mike on Thursday, July 5, 2012)
Straight Talkin Mike....July 5, 2012
So Shabibi Had a meeting with Maliki a year ago on June 19, 2011...So lets see they were ready a year ago...Its now July 5, 2012 - yes I would say they are ready to go...
This is going to be "RV for Dummies".....Let me break this down and understand why this is so important so all of the misinformation being given out on other calls can go away.....
You have 30 trillion dinars...thats the total M3 money supply...you have an internal money supply whats in the bank and whats in
the Iraqis pockets..thats the M1 money supply...thats a smaller portion of the total money supply..there are countries that hold dinar...We hold dinar in another country...Theres 15 trillion or less in country...most of that other is held outside of the country..there is not much held in the banks...
The reason this 10 yr period is so important is because when other countries cash out their money it goes to their Central Bank...Ours goes to the Federal Reserve Bank..Now they are not like all of us who just hit the lotto and are going to run and cash in your money and go out and spend it.....Central Banks are going to hold onto that money which means the have a 10 yr period to exchange what they have in their reserves for the new money.....they do that ...we don't do that....we just trade it in...this is almost like depreciating this money over 10 yrs for him as far as paying for the RV.....they are making it very clear to the world each time we see one of these articles that there is going to be a 10 yr period for these Central Banks to do that...
Now we may only have 2 yrs which is what they say and we are in this process and they are going to run them concurrently for 2
yrs and the new currency is coming out ....We believe that sometime before this currency comes out this RV will take place because you can't issue the new currency with money that is worthless because it costs more to print it than it does...
Now the debate can rage on all it wants on whether or not they are ready but when you have the Governor of the Bank a year ago telling them they are ready to do this and they wanted to do as of January of this year..June last year they went to Maliki and said we are ready to do this 2012...well all of the political stuff went on so they moved it to 2013 so they are beyond the point of no return..they know they are going to do this and that this is going to happen..as we move along this ride they are giving us all of friendly information to keep everybody on board...
Now everybody can come up with their theories and all of that other stuff...they are not not going to lop their currency...they are not going to take value away from it...we here on this team believe that this investment will be worth more than what we paid for it at some time in the future....Period... end of story...You can talk about all of the other theories, etc but this is basically what these articles are telling us and that the Finance Committee is on board.....I don't think we have had this kind of response from the Finance Committe ever....its almost like they are over zealous at the Finance Committee--they don't understand the difference between oversight and monetary policy..they think they have to implement all of this..so they are out there blabbering and talking away...half the time in these articles they don't know what they are are talking about - so when you read an article make sure where it is coming from..is it coming from the Finance Commitee or is it coming from Shabibi at the CBI...the more correct information is going to come from the CBI....the overblown info from the Finance Committes because they truly do not understand what that process is....so we really need to make sure you understand your frame of reference when you read these articles...but this is another article that lets us know that as they have been telling us for the last 1 1/2 years...there will be a 2 yr period...currencies will run concurrent which means they will have equal value....they keep on telling us that...and that at some point in time over 10 yrs people can turn these in and when they talk about people they are talking about the Central Banks...
It is truly that simple...people try to overcomplicate it....
Parliamentary Finance: Central Bank will continue to receive the old currency for a period of ten years
Published on Thursday, 05 / 2012 08:35 | posted by: Rasan | Print | E-mail | Hits: 253
BAGHDAD / With: revealed the parliamentary finance committee that the central bank has agreed to allow replacement of the survival rates for ten years from entry into the exchange, stressing that the three companies had to perform the printing new currency.
A member of the Finance Committee, the parliamentary Haitham al-Jubouri said in an interview to the correspondent of news agency future: "The Finance Committee and even the central bank were afraid of the process of handing over money to the Iraqi banks could see the manipulation or through which some of extortion in order to reduce the delivery time therefore, and after studying the abundant of the subject and agreed conservative central bank that there is a lot of time represented by ten years to the Imam on the currency exchange receipt of new surveys of the Iraqi currency and replace the old El Jadida. "
The Jubouri that "a mechanism to replace the currency will be in two years and the first three stages are the printing process and secondly the process of offering the two currencies in the markets of Iraq and the third pull the old currency and to keep only the new currency."
The Jubouri that "there are companies presentations were made to the Central Bank and the Iraqi government in order to compete on the process of printing new Iraqi currency as each company competes in terms of price, first hand, security second, and both these issues are two important too, noting that all the offers are under hand, but must first get to the final decision to switch the currency or not, and then can receive offers and discussed in detail. "
The Jubouri that "the offers made are from Switzerland and Russia and Brazil and that these offers are competing in terms of the quality of the paper and worker security primarily, so the offers must be subject to a discussion of a specialized committee of the Central Bank of Iraq to determine the priorities of the companies that can be printed Iraqi funds ".
The Central Bank of Iraq announced (29 September 2011) that the year 2013 will see the deletion of zeros and currency exchange rates, pointing out that the current formed a cluster of large cash estimated at 30 trillion dinars.
According to some economists that Iraq is ready for the time being to delete the zeros of the Iraqi dinar, pointing out that the deletion of zeros needed to stabilize the security and political as well as economic stability.
And declared the Iraqi Central Bank Governor Sinan Shabibi independent bodies during a meeting with Prime Minister Nuri al-Maliki, which was held in (June 19, 2011) is ready to create all supplies to replace the Iraqi currency. (Finished)
The two links below will help you understand the "LOP" that is brought up so many times on the call...Take the time to review this information to help you understand this.
Finally a Common Sense Analysis of the LOP - Deleting Zeros
Recorded Explanation LOP