I read this and it sounds VERY logical, any thoughts on this
I read this below..and its sounds VERY logical, any thoughts on this
-11-2012 20MillionDinar (Dinar Vets): **Iraq M2 of 70 Trillion** I then compare the 70 trillion to a 1:1 RV which would equal 70 Trillion USD. M3 Money Supply for Selected Countries: When considering M3, the total money supply (of the world) exceeds US$50.1 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 66.2% of the total. The following graph shows a cross-country comparison for M3. What I am wondering is how does Iraq, a war torn country, come out of the gate with a newly revalued currency which now equals more than every other country combined? Iraq's currency would now be worth twice of that of the USA, the Eurozone, as well as Japan combined! Even if Iraq has HALF of the stated money supply, it would make Iraq equal to the Eurozone, the USA, and Japan combined. This is where I find it hard to believe that an overnight 1:1 RV is possible. Even $.10 is pushing it. However, I do feel that a gradual increase in the IQD is possible! This way they could slowly reduce the amount in circulation while increasing the value of each existing currency unit in circulation. Increase oil exports, build up infrastructure, promote growth in the private sector, which will all help to build their countries' overall GDP. This is how a currency gains value in the real world. If Iraq is worth 70 Billion but has 30 Trillion (M1) Dinar in circulation. They could keep that same value ($70 Billion) but make each existing currency unit (IQD) worth more by reducing the overall amount. However, the decrease in currency in circulation needs to be gradual, as well as the increase in the value of the IQD. The reason it needs to be gradual / controlled is so that they maintain inflation. Keeping inflation under control has been one of their biggest priorities during the past 9 years or so, I don't think they want to destroy everything they've worked for just to have a high valued currency overnight. Actually, keeping inflation under control is EVERY CENTRAL BANK'S main priority! Something to think about, Japan's total M2 money supply is equal to 6 Trillion USD. Iraq's total M2 Money supply is 70 Trillion IQD equal to 70 Billion USD. A $0.10 straight up RV of the IQD would make Iraq's total currency more valuable than Japan! Overnight!!
I'm not buying this one for a second. First, the outstanding dinar is far less than what he claims. My understanding is there is about 25 trillion dinar in circulation and that doesn't cover what the CBI is taking off the streets. No one seems to know how much there really is floating around. Since he is skewed on the amount, the rest of his analogy has to be flawed as well.
Ajay214, first you say the outstanding dinar is far less than stated, then you say nobody really knows how much is outstanding....ummm so which is it? Nobody knows or he's wrong?
Then you say that since the amount is wrong everything else has to be wrong too? Man...really?...I mean honestly?
Is nobody else willing to question aloud the myriad of weak reasoning being thrown about to try and sell this NON-LOP theory? Is nobody else noticing that the facts and figures are all pointing in one direction but a handful of people keep saying that it means the absolute reverse of what it's actually indicating?
More importantly though is the question of why? Why why why are they doing this? I know why and so do most other folks but they're holding onto hope because they so desperately NEED this thing to happen.
But what happens to them if it doesn't? Will the pumping have helped them or hurt them?
Not all but some of these pumpers should truly be ashamed of themselves for what they're doing.
Last edited by Kblp; 07-12-2012 at 10:40 AM.
Reason: Misspelled word