Zero lopping rumors get regurgitated constantly in the Dinar pastures of the Internet and tear into the hope of the unprepared Iraqi Dinar men and women. The only zero lopping are the zeros that will be lopped off of the Iraq dinar exchange rate when the revaluation occurs thereby boosting the dinar value. Any other news information on lopping that surfaces on the Internet is always isolated to a news source that is reporting on the Iraq Dinar for the ‘first time’, or someone who wants to create an article that gets mainstream attention in the dinar information world.
There is a possibility that the Iraqi banknote can undergo a ‘facelift’ to change the look and feel of the current banknote but in my opinion is highly unlikely. The reason to do this would be to try to calm the disputes over Iraqi political parties fighting over who’s people are represented in the banknote art work and what would be fair. Changing the look and feel of the banknotes would be extremely expensive in printing and in selling the idea to the court of public opinion. It is not a time for the Iraqi Government to be loosing support of it’s people by taking away any amount of trust that has been built into the current post Saddam banknotes.
Iraq’s Government has some serious political deadlines on the table with the coalition troops facing greater reductions in the next year. I know there are some research analysts and critics that will disagree with me on this but the Iraqi Banking sector faces the challenge of increasing private banking sector use among business to boost the economy instead of having the heavy hitters in business run to the Government banks for their needs as the trends indicate now. Changes in the Banknote will not be approved, mark my word. There is simply no money to support this idea. No money to fund the idea, and a very devastating negative return on investment for the Central Bank of Iraq on the long run for tampering with the banknote design at this point.
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Written by Darren Chabluk for http://www.DrDinar.com
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Thanks for the update. Good information!
It’s simple;
If 26 Trillion Dinar were lopped it would then become 26 Billion.
How in the world would Iraq be able to engage in “Global Commerce” with a reduced amount of currency equivalent to 26 Billion?
Answer, They wouldn’t be able to.
And how would the Iraqi Banks address their account holders?
Answer, they wouldn’t be able to do that either.
I hear in response that their banks will do whatever they want because the Iraqi Government is corrupt.
Really?
As opposed to what we have seen here in the US, with Enron TyCO, Worldcom, the AIG bailout, Arthur Anderson Accounting Scandal, Bernie Madoff and 50 Billion that nobody seems to be able to trace. I mean really, 50 Billion and we are told they can’t trace the wire transfers or where all that money went to? Oh and let’s not forget the BP oil spill British owned or not they fu**ed up our economy.
So with that said, let’s stop this nonsense about how corrupt the Iraqi Government is. In fact in order to save themselves IRAQ NEEDS their currency to be in world wide demand, and they won’t do it by lopping zeros off their notes.
IF the CBI gets to do what is claimed to be the intent of the CBI leaders, the Iraq Dinar will be changed again. Not to make the world happy but to save the CBI the 25,974,000,000,000 Dinar difference the looping of three zeros will save for the conversion of 26 trillion dinars to 26 Billion which may be a value that is not embarrassing to any world class government. And many governments in this world operate with less, much less than 26 Billion in cash, actually most governments have less, and they use the US Dollar instead and don’t worry about their money. Only the leaders are trying to stash away all the dollars they can. If the LOPP happens in Oct, 2010 with the CBI and the IMF, the only ones embarrassed by this will be the people like you and I that purchased the 26 trillion dinars in the hopes of getting something better for ourselves and our families. I always said to my wife, “It is still cash so we can’t lose!” ….let’s hope there is a real RV like we all expected to occur. And YES! I would like to make a very nice profit or even a ridiculous profit. I just do not wish for my wife to become a prophet and all of us lose everything.
PART ONE:
Hello Mr. VanDyk
You have a reasonable approach towards looking at this investment as a whole. Nobody wants to get their hopes up, while everybody wants this to happen. It’s a sound way to approach any goal we have in our lives.
With that said, here is why I believe there won’t be any lopping of any zeros’ from their currency. The Vietnamese Dong (the forgotten currency) has multiple Trillions of their notes into circulation. To trade globally with any effective impact that will benefit their economy it is a necessity. And unlike Iraq, Vietnam does not have a product with a world wide demand.
The other countries you make mention of, can function with a GDP in the Billions, but the question remains; are they registered with the WTO?
Furthermore, the demand for oil, in particular China’s demand, is only going to increase. The major players in the oil industry will have capital that would be larger than Iraq’s 26 Billion, if they lopped the zero’s from their currency.
In short, Iraq will soon be the number one or two producer for a product wanted by some of the largest companies in the world, who will be selling that product to the largest countries in the world. How will they be able to operate that kind of business on a massive global scale with only 26 Billion in capital? They will need money and lot’s of it for their oil refineries, well drilling and oil explorations in order to meet the world wide demand.
If they can meet the world’s demand for their oil, Iraq will go to the head of the class in terms of internal wealth. And if they are to get there, theIR currency needs to be moving freely without restrictions, which is to include all electronic funds.
Which brings me to my final question that nobody seems to answer; If Iraq lops the zeros of their currency, how will that effect the electronic account holders of IQD currency. Will the CBI simply say you had a million Dinar in your account that you purchased at the going rate, however it now becomes only 1000 dinar.
PART TWO;
America is approximately 12 Trillion Dollars in debt.
The Federal Reserve which contrary to popular belief is not an American entity by itself as there are foreign advisories whose role aren’t always clear to the rest of us. However, the Federal Reserve still controls much of the US wealth.
That factor coupled along with the WTO’s role in controlling the World’s banking industry illustrates how far globalization has come and the significance in controlling both the US economy and the world economy as well.
Now hold that thought.
It is no secret that the Federal Reserve has in their possession for investment and trade purposes, currencies throughout the world. How much of Iraq’s currency is in their possession is unknown. But logic dictates in order to get this global recession moving towards bullish times the oil industry needs to start their engines to turn on what will be an ongoing demand for oil.
The consumer to big business is a necessary evil, they need for us to be able spend, buy, and consume.
The National Debt in the US is synergistic to the world’s recession. For the most part, along with China, we are those consumers, and those consumers need capital to spend, buy and consume.
Iraq’s production of oil is ready to be purchased, and when that happens the engines to the worlds economy will slowly but surely start to move forward again. To do so, and to move such a big wheel that turns the global economy, they will need more than 26 billion in currency.
In short, this isn’t about the hopes and dreams of investors such as you and I, it is my belief that this is something that has been well planned for decades. 26 Billion in currency is a drop in the bucket for such an ambitious plan.
They have more then 52 billion just in foreign reserves.In the UN report I read said the will RV in Oct.2010 along with 10 other countries.
http://www.un.org/News/Press/docs/2009/gaab3917.doc.htm
And yes this is afew monthes old but current.