Let me add that a 1 IQD to $3.22 extreme astronomical re-val would also require something none of us want and that is a zero lop. There is no other way to do that in the short term.
Printable View
Again I appreciate your professional manner in this discussion, Wcia. Per the first link I just don't trust the Google translated pages of Arabic language. They come out clear as mud and have had tendencies of misplacing decimal points in any numeric translation. We need to explore the Arabic numbering system of pre-fixes on their currency a bit deeper, I fear. My bet is it is intended to read .32 similar to other facts that point in the direction of that value. Also the text is from 2002 right near when IQD was first introduced and the war at full bore. I'd rather be a bit more conservative and go with the latest 2006 August release by IMF/CBI which say the IQD value will change in a gradual manner based on security, GDP, debt relief, and infrastruture rebuild.
Your second link says "This page cannot be found" so I can't analyse it.
Third the $17 Trillion IQD is not a theory: http://www.cbiraq.org/Monetary%20Aggregates.xls
Directly from the CBI you'll see until May of 2006 the Iraqis had $17 trillion M2 with nearly $9 trillion outside Iraqi banks. Multiply that by the astronomical re-val of $3.22 and you get:
World currency value in USD:
$45,000,000,000,000 (Trillion)
Iraqi currency value with $3.2 conversion exchange rate:
$54,740,000,000,000 (Trillion)
US GDP value:
$12,000,000,000,000 (Trillion)
Basically Iraq has nearly 5 times the value of the United States in USD overnight. And it's nearly 10 Trillion more valuable than THE ENTIRE FREAKIN' WORLD!!!!!!! Sorry, guys, but this scenario doesn't seem the remote bit realistic to me.
Again you are putting forth misleading information. I've never said politics has no impact on a currency exchange rate nor did I say Japan's exchange rate was allways the same. But the current Japan exchange rate is far lower than what some poorer countries exchange rate are. Exchange rate is not 100% based on any nation's wealth. Why would Jordan and Bahrain (in the examples above) have a higher exchange rate than Saudi Arabia, Egypt, or UAE? Trying to muddle the debate is a disservice to those readers out there that want real discussions of these issues.
Wcia, I fully understand the current rate is a program or artificial rate. It was required to be so in order to complete 3 full years of stability required by the IMF articles. That was the method the CBI choose to fullfill that particular IMF requirement. They have completed the requirement as far as the information I have says. I'm also fully aware the IQD is vastly undervalued. This is not pertinent to the current debate. We both agree about those facts. We both agree the $7 handout is a complete joke. Where we disagree is the future IQD value and when it will re-val. I say slow and grow, you say 1 IQD : $3.22 very soon. As you said earlier all we can do is wait and see who is right. Shocking news to all here is I hope YOU are right!!!
Here is the second link. the IMF assigned a new address to it:
Iraq: Exchange Rate as of September 30, 2006
I understand the conservative approach to the first document yet the point I'm making is that the CBI is acknowledging a high currency rate here. Of all the numbers of relevancy this is the only number you would dispute? I expected more from you on this.
Though as you can plainly see this link supports the Arabic translated document therefore supporting the idea that the number you dispute is the actual intended figure.
I'm not saying it will RV at that level but I am saying it will rise to the levels of those former days.... but again the MOF stated the 1.48 level so I holding with that number.
By the way what I said was based on the 17 trillion a minimum of .75 USD would be achieved and that is just the raw numbers minus the political side and perhaps the removing of dinar from circulation after the RV. The main point is to churn the wealth even if you have to pull a "FED Rabbit" out of thin air. Interesting though, you could prime a world economy with an RV. A one time transfer of wealth and every country makes back their debt they forgave as they remove excess dinar out of circulation. May not be the norm but it will work and black Gold is the reason.
Not to crap on your though process here but you ever said yourself that the arabic translation of numbers is a little screwy and this is an arabic back that seems to put out a speadsheet in english.. i'll avoid passing judgement however until i can find the arabic version of the same documet. that being said .. why would they do a chart like that in the billions when there number indicate trillions.. if they can do a chart like that to indicate there are 13400billion ( used a random number here.) when that same number can be expressed as 13.4 trillion. i think the possability exist that this same document was translated and something may or may not have been lost in translation.
I do have a question. and this is by no means an attack against you. but this is the 3rd or 4th time i've seen this " model " why are you set to try and turn people to you way of thinking when it has clearly been rejected many times over. IMHO its like tring to drive a car into a steel wall..
[QUOTE=phiberoptik;131555]
but this is the 3rd or 4th time i've seen this " model " why are you set to try and turn people to you way of thinking when it has clearly been rejected many times over. IMHO its like tring to drive a car into a steel wall..[/QUOTE]
:rofl: Right on Phiber! That's what many of us have been wondering. :noserious