Thread: Iraq/Dinar News up until March 18th Midnight ctz

Originally Posted by livefree

Look what we are down to now in this waiting game!

Actually we aren't down to anything...I responded to Darock's post with a logical worse case scenario and then get 15 reasons why it can't happen that way. Not wanting something to happen does not constitute a logical reason for it not to.
Rather than carry this on and disrupt the thread further...I'll drop it here.

Originally Posted by Seaview

I hear this time and again so at the risk of stating the obvious.

If/when the dinar strengthens in value to a significant amount against the dollar - it will more than offset against the money initially invested with Warka and ISX. Obviously one will be able to regain that loss (should it happen - highly unlikely) with physical dinar being cashed in.

P.S Thats assuming the cash dinar doesn't tank anyway. But then everyone looses.

The dinar will strengthen in value, it already has. Maybe not to our standards, but in the direction we, and the Iraqi people would like it to go.
Leann

Originally Posted by Lunar

Actually we aren't down to anything...I responded to Darock's post with a logical worse case scenario and then get 15 reasons why it can't happen that way. Not wanting something to happen does not constitute a logical reason for it not to.
Rather than carry this on and disrupt the thread further...I'll drop it here.

I didn't say it couldn't or wouldn't happen. I gave you an obvious reason why investing with Warka/ISX is not such a huge risk if one is an invested Dinar Speculator anyway. Physical Dinar.

Your worse case scenario is assuming anyone with Warka/ISX doesn't hold physical Dinar. Bit of a stretch? Perhaps you should go back and reread.

Originally Posted by bambiebdgrl

The dinar will strengthen in value, it already has. Maybe not to our standards, but in the direction we, and the Iraqi people would like it to go.
Leann

You missed 'to a significant amount against the Dollar'.

If your going to quote - 'quote' within the context of the sentence.

C'mon your trying to make an argument out of nothing.

Originally Posted by Lunar

I'm looking at the worse case scenario...they have no FDIC system in place and there are no laws protecting foreign investors so a lawsuit wouldn't be an option.
If either place says thanx for the donations and closes their doors....nous sommes vissés!

actually, youre wrong about the fact that they dont have laws in place. in news of the last year you might have noticed that they have indeed implemented a system to guarantee bank deposits much like our own. as well as laws attached to the fil which will protect foreign investment.

trust me, they arent about to invite investors into that country without laws and means to protect their investments. what would be the point???

That's the misunderstanding then, some think the dinar is undervalued but they don't put the amount of currency in the equation.

Originally Posted by zipper

These comments are based on the premise that the dinar is grossly undervalued at its current rate. If the contract is in terms of dinar at today's rate and that rate is locked in at the time the contract is signed, then the Iraqi's are losing by the amount the dinar is undervalued, though that won't be realized until the dinar is reestablished at a higher value, in whatever increment/time frame.

If the contract is in terms of dollars, then they have to deal with the potential for losing money if the dollar continues to decline in value over the next few years as predicted. This also does nothing to de-dollarize their economy and basing oil contracts on the dollar would help essentially back the value of the dollar and hurt the value of the dinar. The Iraqis could come off really well here in the event of a significant reval, but I'm guessing the oil co. lawyers have likely considered that and have all the pertinent clauses in place in teeny tiny print.

They can end-around both of these problems by putting the contract in terms of euros (but using actual dinar) which are predicted to be stable/stronger over the next few years, and fits the GCC news and trends in the foreign exchange markets as investors/gov'ts dump the dollar. As global companies, the oil companies are probably just as eager to dump their dollars for all of the same reasons anyway. The Iraqis can get a fair (relative to the global market) price regardless of the volatility in policy changing, value, and risks surrounding the dinar.

Hope this helps.

Originally Posted by lndmn_01

Way to look at the positive side... Actually if they decide to keep OUR money it would be pretty easy to bring a lawsuit against warkaa...

And Warka would probably hire the best american defense team to defend them with their new found wealth.

Originally Posted by Seaview

You missed 'to a significant amount against the Dollar'.

If your going to quote - 'quote' within the context of the sentence.

C'mon your trying to make an argument out of nothing.

I stand corrected, thank you for pointing that out to me. Just for the record, I was just trying to be nice, and be supportive. Sorry to stir up the pot.
Leann

Originally Posted by bambiebdgrl

I stand corrected, thank you for pointing that out to me. Just for the record, I was just trying to be nice, and be supportive. Sorry to stir up the pot.
Leann

Apology accepted. No offense taken. We are all here with the same goal in mind.

Originally Posted by Seaview

Apology accepted. No offense taken. We are all here with the same goal in mind.

You are correct with the fact that we all have the same goal in mind, my point was, its not an "if" its when. I was just tying to be supportive, not looking for anything else.
Leann