Thread: Internal RV -VS- External RV

Inflation has been drastically reduced since November last year.
link: check the news thread its all there. im just summing up.

its still however around 36%.

obviously the reduction of the base money supply by the CBI, which as removed nearly 10Trillion since the plan began last year, has reduced inflation considerably. but not enough. a reval will do the trick. they have no choice. good for us!

iraq's economy is quite stable now, CBI has shown at a low rate they know what they are doing, kind of like a test run, and now Iraq is nearly ready for a huge boom that foreign investment and the updated investment laws nearly finished will provide in a month or so (holidays and fistfights permitting!!)

not everywhere is bombed all the time you know, and oil companies can afford security, look how cheap it is to extract the oil $1 a barrel or someting ridiculous.

they can afford to have a few henchmen around cant they?

so no the violence isnt really a problem, its the legal framework they wait for.

Foreign companies would want any contract disputes to be litigated offshore somewhere stable. wouldnt you? once they have solid laws, theyll all be in there.

now. once those laws are published, everyone internationally that can add 1+1 = 2 will then want in on iraq's currency, cos obviously its gona go up when the oil flows. speculation wil push it up as soon as the NEWS is out, wont wait for the actual oil output to change.

so, the CBI is either gona have to limit supply (which it cant do because of aggremments with WTO and Compact, "internationally tradeable currency", article VIII etc look in the news thread), or reval high, in order to retain control of their own currency, stockmarket, and therefore control of their own country.

believe me, those tribal arabs are fierecly terretorial and they know money.

some may be illiterate, but they aint gona sell out cheap.

which leaves us rich,

and, them (IRaq) with a much lower rate of inflation, and a decent value on their Dinar, and double, treble even, oil production all can share in, rather than scrapping over.

happy days for all!

now, did someone say hydrogen powered car? electric perhaps?......

who wants to put some dinar money into a green energy solution after reval??!! thats what we really need :)

Originally Posted by greatstuff

the bad part is that we'll spend a lot of our new found wealth putting gas in our new toys. What a hardship!

Not me...I will be buying a Tesla sports car that is powered by batteries, a Phoenix pickup truck that is also powered by batteries, and the new Honda hydrogen fuel cell powered sedan next year!!

who wants to put some dinar money into a green energy solution after reval??!! thats what we really need :)

I will, I will!! Great cause.

Here's a thought...There's no such thing as inflation! Well that's not true, but in my opinion we have used the term in such a way that it looses its true meaning. Inflation is when something intrinsically has grown in value such that it costs more. For example, if there is a bad crop year for strawberries, strawberries will cost more due to inflation. If the supply demand scenario does not change, but strawberries cost more, that is due to the devaluation of currency and not to intrinsic changes in the value of a good.

The original meaning of inflation has been changed for political purposes. The original definition of inflation is now technically referred to as monetary inflation. It's never reported that way because politicians don't want people to understand that bad policy and mismanagement of currency has led to a decline in purchasing power. Instead they'd like you to believe that the intrinsic value of goods has risen.

My 66 year old general contractor put it best when I built a home in 1997 when he said, "I could have built this exact same house for $16,000 when I started building. Compare that to the $225,000 that it took me at the time.

With regard to Iraq, they are facing both monetary inflation and some inflation due to low supply of goods. Increasing the value of the dinar will resolve both issues because it will eliminate the monetary inflation and allow for goods to be produced and imported in greater quantities, eliminating demand based inflation.

Good post Celilo. I agree with what you are saying.