Recording of a portion of  a Conference Call with "Highlander" about the LOP...Sept 2011

641-715-3900  Pin 391178#

LINK

Negative Arbitrage - RV-The Law of Common Sense

02/27/2012 Negative Arbitrage (RV-The Law of Common Sense):

2/26/12

February 26th, 2012 09:27 am · (Post From Dinar Daddy Tidbits)

Just know your plan and know it well. I would seek out advice away from the sites with a professional so you may weigh the information given and not fully trust everything you get in dinar land.Now that being said how is it that in this investment your a millionaire or you break even or gain a third back.I invested my money with the hopes of gaining a good rate of return and the outlook I see with my own eyes is telling me that Iraq and the future of Iraq looks very good. I see no reason the offered buy back rate should be below $ 0.12 And if I’m wrong and we see it come out at $ 1.20 thats great .

I do not care about your new currency or what you think you need to do with your zeros. What I do care about is seeing that an investor putting his money into the most unstable area on the planet is able to prosper if he see’s his investment to prosper as well.

The numbers showing to us would say were going to do very well. I think the one’s that control this RV are full aware of the fact the rules can change without warning. But if a LOP or anything close to it were to happen with the Iraqi dinar given the facts showing today.And you are offered a rate that does not show its true potential. This is the shot heard around the world. Take this site your on now, have you ever thought about it’s name ? (Vets) They were the one’s that invested first ” and without people buying your worthless currency -its the one thing that enabled you to show the U.N. that you can count with the world trade its only the foundation of everything you now have” If not for us making investments you would remain under the close eye of the U.N. The Commander in Chief passed a law for these Vets to invest once they got home. Since 1989 we have been in the desert fighting a humanitarian battle that has a price tag for removal of dictatorship so it’s people may prosper. A LOP would be the fastest throw back to modern racial tension ever seen not to mention those Vets that made it possible for your new prosperity you just took a **** on. And then we can address the fact that our own government knows you are remembered by the last chapter written in the book. I do not see where George Herbert Walker would like reading about a LOP attached to his Gulf War and Iraq coming out party into Democracy over shadowed by a public outcry of disapproval of the management of Iraq’s final outcome of the last 23 years this would over take any Rodney King parade known. All eyes are on Iraq as they emerge onto the worlds stage . Will they take after the United States as the financial model on what emerging markets should avoid and learn from our INFLATED TRAVESTY. Or do they pay the dues back to the people ? Its a coin toss God’s speed.


LINK:

Thanks to Dinar Daddy for this post

* (Article from the NY Federal Reserve regarding LOP or devaluation of currency): OOM 2/22/12

February 22nd, 2012 04:04 pm · Posted in CHATS & POSTS (Iraqi Dinar Info)
This article comes from the NY Federal Reserve.

http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

Lets look at a few key points.

Under What Circumstances Might a Country Devalue? When a government devalues its currency, it is often because the interaction of market forces and policy decisions has made the currency’s fixed exchange rate untenable. In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate. When a country is unable or unwilling to do so, then it must devalue its currency to a level that it is able and willing to support with its foreign exchange reserves.

One of the things the CBI seems to be very proud of is that their foreign reserves are the highest in the history of the country so this point doesn’t seem to be one that would make Iraq want to devalue or LOP their currency.

A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of a devaluation. First, devaluation makes the country’s exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country’s exports and decrease imports, and may therefore help to reduce the current account deficit.

Currently Iraq has no products to export other than oil and they don’t want their oil exports to be cheaper they want to sell them for the same price all the other countries are selling them for. Besides that Iraq has no manufacturing right now so they have no domestic products to consume meaning that if they make imports more expensive that is going to be a huge negative for the people of Iraq.

There are other policy issues that might lead a country to change its fixed exchange rate. For example, rather than implementing unpopular fiscal spending policies, a government might try to use devaluation to boost aggregate demand in the economy in an effort to fight unemployment. Revaluation, which makes a currency more expensive, might be undertaken in an effort to reduce a current account surplus, where exports exceed imports, or to attempt to contain inflationary pressures.

(The only comment I can make here is that inflation doesn’t seem to be a huge problem right now and devaluing their currency to fight inflation when it seems to be pretty much under control doesn’t make sense.)

Effects of Devaluation A significant danger is that by increasing the price of imports and stimulating greater demand for domestic products, devaluation can aggravate inflation. If this happens, the government may have to raise interest rates to control inflation, but at the cost of slower economic growth.

Iraq has no domestic products to speak of so why try to stimulate a greater demand for domestic products if there are none until they build their country up first? Oh and speaking of that, can they really afford slower economic growth? They want their economy to grow FAST not slower!

Another risk of devaluation is psychological. To the extent that devaluation is viewed as a sign of economic weakness, the creditworthiness of the nation may be jeopardized. Thus, devaluation may dampen investor confidence in the country’s economy and hurt the country’s ability to secure foreign investment.

OK, so we hear a lot of talk about how the GOI wants the people of Iraq to be confident in their country and their currency. A LOP does the exact opposite of that. Is this what they want to accomplish? I don’t think so. Oh and do they REALLY want to dampen investor confidence and hurt the country’s ability to secure foreign investment? NO, they want to encourage foreign investment, that is what they are trying to accomplish here folks!!!

Another possible consequence is a round of successive devaluations. For instance, trading partners may become concerned that a devaluation might negatively affect their own export industries. Neighboring countries might devalue their own currencies to offset the effects of their trading partner’s devaluation. Such “beggar thy neighbor” policies tend to exacerbate economic difficulties by creating instability in broader financial markets.

(I don’t see Kuwait devaluing their currency, but I guess Iran or Syria might, but oil is the main product these countries have to export and this type of devaluation usually occurs with countries exporting a finished product that other countries want to import like China does with all its manufacturing which is a completley different ball game than the one Iraq is playing in.)

You can go read the whole article for yourself but reading this tells me that Iraq does not want to devalue or LOP their currency because it is counter productive to everything they are trying to do here. Go ahead and beat me up if you want, but I don’t see a LOP as doing anything but going against everything Iraq is trying to accomplish here.

http://theiraqidinar.com/2012/02/22/article-from-the-ny-federal-reserve-regarding-lop-or-devaluation-of-currency-oom-22212/2/

_Just Da Truth (FROM KAPERONI; 10 REASONS THE IRAQ DINAR WILL NOT L.O.P !!!!!): OOM 11/22/11

November 22nd, 2011 07:41 am · Posted in CHATS & POSTS (Iraqi Dinar Info)
 
10 reasons why the IQD will not LOP
 
1. Monetary policy was a success talking inflation from 35% or higher to around 7% currently.
 
2. Any type of currency devaluation (LOP) is considered a failure of monetary policy. Dr. Shabibi has not failed.
 
3. Lesser value notes in circulation such as 50, 250, 500. Devaluing the larger 3 zero notes would make them worth less than these lesser notes.
 
4. Iraq wants the dinar to be an international reserve currency. Cannot devalue the notes in reserve (25,000), circulate them as payment, or traded amongst countries.
 
5. Iraq holds arguable the second largest oil reserves and is mineral rich. They are too wealthy to not honor the value stated on the notes.
 
6. Iraq has stated..They want the “strongest currency in the Middle East” Any such type of LOP would be a devaluation and therefore not considered strong.
 
7. US holds dinar as a result if funding the CBI initial reserves. This dinar will eventually payoff the war debt.
 
8. One of the authors of the currency exchange plan – Assistant Professor Dr. Fadel states in his documentation, “We must emphasize the extremely important issue is that if you remove three zeroes from the currency should not affect the actual value thereof to be trading in the old currency…”
 
9. In 2003 when the NID was introduced at it’s initial rate, the previous currency was in essence devalued taking all wealth from the country to prevent funding of terrorism. Raising the currencies value will in essence, return that wealth now that the GOI is stable and economic conditions have improved.
 
10. The CBI has stated “both currencies will co-exist” and the process will not change the “monetary value” of the dinar.

I WANT TO ADD THIS, LAST WEEK I POSTED A CHAT FROM KAPERONI, AND A MEMBER SAID; WHY BELEIVE THIS, IT’S FROM THE G.O. I !!! WELL PEOPLE WHO DO WE BELEIVE, SOMEONE WHO RESEARCHES, OR SOMEONE WHO DOES NATA AS FAR AS SEARCHING, AND SAYS IT WILL R.V. AT MIDNIGHT. MANY PEOPLE GET THEIR HOPE UP, ONLY TO BE SHOT DOWN ANOTHER DAY. Just Da Truth
 

HOW FRACTIONAL BANKING WORKS TO ALLOW FOR A REVALUATION OF THE IQD - JOSEY WALES At OOMF - 10/17/2011
From Dinar Recaps 

(Post by Red Lily)

How Fractional Banking Economics will allow a high RV EXPLAINED:

First off, I’ll use the exchange of a 10,000 IQD note as my example. To help
explain the economics of this cash-in example, I will use a 1:1 cash-in ratio
between the USD and IQD, that is given a two-tier payout, and a 2% bank spread.

What You Will Receive:
If you were to cash in your 10,000 IQD note with a bank that charges you a 2%
spread, you would personally receive a net take-home of $9,800 credited to your
bank account.

What Your Bank Will Receive:
Your Bank will receive a $10,000 credit to its Federal Reserve Account. They
will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive:
First off, the US Treasury will receive $3,500 in estimated taxes in the
quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in).


Furthermore, the US Treasury’s rate is higher than the banking rate (we will
use in this example 1.25), thereby further reducing their “net cost” from
$6,500 to $4,000.

Oil Now Enters the Picture:

At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq.
Payment will consist of a $12,500 transfer from the Fed’s foreign currency
reserve IQD account to the IRAQ Oil payment account at the CBI in a form
otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money:
The $12,500 order is filled with 250 barrels of oil based on the spot price on
the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note!
Can they afford that? I think so! So, instead of paying out $12,500 for a
10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign
reserve credits which are equal to $12,500 USD (which had a net acquisition
cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:

■DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen
assets (estimated at $100 billion) will be returned back to Iraq and added to
their foreign currency reserve, bringing it up to $430+ billion USD.
■CBI IQD Reserve Requirement
Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time.
As a result, the the total potential money supply will be raised in value to
$2.8 Trillion (430 billion/15), while at the same time, the total physical IQD
in circulation will be reduced by removing the large bills with the 3 zeros
over a period of 2 years, as they have indicated.
■Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.
■Oil Futures & Forex Contracts Added: To further stir the pot, the
CBI will continue to use it’s sales window to market oil futures and forex
contracts. They have shown they can generate significant cash flow in the
private market. Think of their impact in public markets.
There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

■Investor’s Net Gain: $10,000 –
$200 = $9,800 x .65 = 6,370 for an investment
that cost $10
■Bank’s Net Gain: $200 added to
“capital account”, plus $2,000 they can use to loan out.
■US Treasury Net Gain: $2,500
from the .25 spread on top + $3,500 in quarterly taxes = $6,000
■CBI/GOI/Iraqi People Net Gain:
$12,500 – $162.50 = $12,337.50 + Profits from
“Other Factors”
■Overall Net Gain for All
Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20
This is the wealth that was generated from a single 10,000 IQD note that was
given an original value of approximately $10! Is that amazing or what?! You
tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!

In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming!

Recording of a portion of  The IQD Conference Call Sept 2011

Where does the Money Come From?
Why There will be NO LOP

641-715-3900  Pin 264795#
LINK


Highlander Also Explains on Another Conference Call:

641-715-3900  Pin 391178#

LINK

Dinar Daddy:  OPINION

SEPTEMBER 27, 2010 12:29 AM · 
 
All,
From the moment I’ve been in this investment even until now, the debate of LOP versus RV has been raging.  
 
That very argument is what drove me and thousands of others AWAY from Investors Iraq (IIF), as it appeared it was absolutely overrun by those who felt it was their mission to squash the hopes and dreams of other investors.  I am sharing this with the permission of those who have helped bring me this concept to light, from several legitimate economists and very sharp minds, their perspective to help each of you understand this dilemma.
 
I don’t know about you, but I’ve been told time and again by those who are absolutely in a position to know that this will NOT be a LOP, but will be a straight-up RV, yet I found myself not being able to refute the arguments of those who brought only “part of the truth” forward, using the “numbers” to their advantage through logical focus on that which was clearly understood.  This post of mine is dedicated to explaining how an RV will happen.
 
CONCEPT EXPLAINED:
First off, I’ll use the exchange of a 10,000 IQD note as my example.  To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread.
 
What You Will Receive:
If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.
 
What Your Bank Will Receive:
Your Bank will receive a $10,000 credit to its Federal Reserve Account.  They will also be able to add the $200 profit to their “capital account”.
 
If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan.  To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.
 
Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.
 
What the US Treasury Will Receive:
First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket.  This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in).  Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.
 
Oil Now Enters the Picture:
At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.
 
How the CBI “RECAPTURES” the Money:
The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)
 
What does all that mean?  It cost Iraq $162.50 to bring back a 10,000 IQD note!  Can they afford that?  I think so!  So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50!  That doesn’t add to the money supply much at all does it!  They receive their IQD back and place it in the CBI, or destroy it.
The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.
 
More completely explained, and simply put,  it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)
 
Other Factors that Strengthen Iraq’s Position and Ability to RV:
DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.
CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time.  As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated.
 
Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.
 
Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market.  Think of their impact in public markets.
 
There, my friends, is how this plan will be enacted and made possible.  Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil.  This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.
 
So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:
 
Investor’s Net Gain: $10,000 – $200 = $9,800 x .65 = 6,370 for an investment that cost $10 Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out.
US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000
CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors”
Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20
 
This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10!    Is that amazing or what?!  You tell me… can Iraq afford NOT to RV?!!!  Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!
In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a 
couple of years ago, even the greatest redistribution of wealth the world has ever seen.  Believe it or not, it has happened for this very purpose, and it IS coming!
 
Go Iraq… Go Understanding… Go RV… Go Dinar!
Dinar Daddy
 
http://theiraqidinar.com/2010/09/27/dinar-daddy-making-sense-of-the-numbers-no-lop/