Where do we go from here? Good Question
In the last post we looked at the well-oiled dinar machine. We saw how the currency auctions buy US dollars and release more and more dinar. We saw how dinar makes its way back to the United States and is sold for US dollars. These dollars flow the other way into Iraq as a result of the dinar sales. We saw how over time the currency supply has expanded and there is now 35 trillion dinar outside of banks. Their M2 is 69 TRILLION. We saw how Jordan owns a great deal of the Nation Bank of Iraq and that it was given to them after the invasion. Jordan paid 7.3 million for 49 percent of the bank. They were and are instrumental in bringing the dinar state side
We also see that US dollars make their way to Iraq as they are traded for dinar. Because of this Iraq’s currency supply keeps expanding. They have not reduced the money supply. It has grown by trillions since I have been in this. In fact, in March of this year Shabibi has released another 6.5 trillion in the money supply. We followed the money and exposed the lies. Documents can be found on the CBI website.
So now let’s talk about what exactly is going on over there and let us identify all the players. Let us talk about our first player, the central bank. By looking at our central bank (the Federal Reserve) we can better understand Iraq’s central bank. What is a central bank?
After World War II the global government expanded. Under the United Nations umbrella global organizations were started. The International Monetary Fund, IBRD which became the World Bank, GATT which became The World Trade Organization, all started shortly after the war
These organizations all worked hand in hand with the Marshal Plan.
“The reconstruction plan, developed at a meeting of the participating European states, was established on June 5, 1947. It offered the same aid to the Soviet Union and its allies but they did not accept it, as to do so would be to allow a degree of US control over the Communist economies”
Under this plan nations were rebuilt. A central banking system was started that was modeled after the Federal Reserve, and nations surrendered their sovereignty.
After the Invasion of Iraq the Coalition Provisional Authority (CPA) came in and set up shop. They were the temporary government in Iraq. They set up the central bank. Laws regarding the central bank are found in order number 56. Here are some of my observations from that order.
“Recognizing the problems arising from the former regime’s policies regarding governance of the Central Bank of Iraq,
Further recognizing the CPA’s obligation to provide for the effective administration of Iraq, to ensure the well being of the Iraqi people and to enable the social functions and normal transactions of every day life,”
“This Order establishes a safe, sound, and independent Central Bank for the purposes of achieving and maintaining domestic price stability, fostering and maintaining a stable and competitive market-based financial system, and promoting sustainable growth, employment, and prosperity in Iraq.”
Order 56 establishes a central bank separate from the government. It was also written into the Iraqi constitution that the central bank would be separate from the government.
“Independent commissions and institutions
The High Commission for Human Rights, the Independent Electoral High Commission, and the Commission on Public Integrity are independent commissions subject to monitoring by the Council of Representatives. The Central Bank of Iraq, the Board of Supreme Audit, the Communications and Media Commission, and the Endowment Commission are financially and administratively independent institutions. The Foundation of Martyrs is attached to the Council of Ministers. The Federal Public Service Council regulates the affairs of the federal public service, including appointment and promotion.”
Maliki and Alawai battle for the prime minister position. After the election in the first part of March they fight it out all the way to November over who will be the new prime minister. The Supreme Court of Iraq decides to move the central banks authority to the cabinet. This was in January of 2011
“A January 18 court ruling put several key independent bodies such as the central bank and election commission under cabinet supervision, arguing they should be answerable to the cabinet instead of parliament because their work was executive in nature”
In February of 2012 the amount of currency out of the CBI in circulation was 28 trillion 538 billion. In March of that same year it ballooned to 34 trillion 999 billion. So in one month Shabibi released 6.5 trillion dinar.
http://www.cbi.iq/index.php?pid=Statistics (click on the key financial indicators file)
Maliki tried to exercise the power given to him on January 18 2011 by the Supreme Court of Iraq. Parliament through a fit about this. They sent the cabinet a letter telling it not to interfere with the central banks policies
Maliki is being made out in the media as though he is trying to do a power grab. A vote of no confidence has yet to determine the fate of this government. In one corner we have the CBI run by Shabibi. In the other corner we have Maliki and the cabinet. And then we have parliament.
So we have an Iraqi government in turmoil. Even though Maliki was given control of the central bank by the court in January of 2011, He never exercised that control until Shabibi decides to release Trillions of dinar into circulation. The question still remains what is the game plan here?
The main reason I am going into detail about all this is because there are several guru lies that are coming out to pump the sale of dinar. Pumpers are taking the opportunity to sell more dinars as a result of the events overseas by lying to investors once again. I am not going to name names yet. I am just going to debunk the lies first.
1. The first lie says that if Maliki winds up controlling the central bank there is a 70 percent chance that they will not redenominate. Instead they will revalue the currency.
2. The second lie states that Maliki wants to control the CBI so that the government can have a more direct line to the IMF.
The truth is if Maliki winds up controlling the central bank then things will get worse for Iraq on a global level. This is because it goes against the IMF model of having an independent central bank. That’s what the CPA set up, and that’s what they want. That is what the NWO globalist elite want. They want a separate central bank so they can have better control of governments and their economies. This is why Russia denied assistance under the marshal plan. They did not want to surrender their sovereignty.
If Maliki controls the central bank then you kiss can WTO membership goodbye. The dinar will not be a reserve currency, and there will be other trade problems as well! Gurus will use this to try to say Maliki will enforce a revalue. This is just not the case. The one world government, aka UN, IMF, WTO, World Bank, will reject the dinar because the central bank will go against the model of independence.
If there is a vote of no confidence in Maliki without addressing his concerns of corruption in the central bank then that could create a split in an already divided government and the government itself may begin to fall apart and become an Islamic regime. These are all possibilities.
So let’s talk about the economics of all this
Keep in mind that the above video was up loaded to you tube a few years back. All the points Mr. Jagerson makes are still relative today
How would a Revalue work? If the dinar would go to $3.00 as some gurus claim and there is 35 trillion outside of banks? That would put a value on the dinar somewhere around 105 trillion US dollars. Anyone can see this is just not plausible. It is not possible for the dinar to RV to $1.00 given the current dinar outside banks. That’s a dollar value of 35 trillion. This amount is double our debt and it is triple our M2 money supply. Even an RV of 1 penny would bring a threat of hyperinflation as this would have an overall effect of expanding the money supply. That is a 1,000 percent increase in the currency’s value. This has never happened in History….. EVER! A Revalue is a policy decision just like devalue is a policy decision. It only affects peg currencies. Floating currencies adjust according to market demands. Pegged currencies like the dinar need to adjust from time to time.
Shabibi has always said that a revalue is used to combat inflation. It is what they do to control inflation. If the adjustment is too much it will have the opposite effect. The last revalue was just 4 pips 1170 to 1166. Slight movements are used to keep the currency in balance.
A redenomination is a whole different animal. I use to think that Iraq was not talking about redenomination when they were talking about raising the value of the currency and dropping the Zeros. After all how could Iraq do this with a 50, 250, and 500 in circulation? The basic Guru presentation is they will remove the 25,000 10,000, 5,000 and 1,000 notes. (The notes with three zeros) and then they will raise the value of the existing notes and introduce lower denominations. This will happen in one night as trillions of dinars suddenly rise in value. No one stops to consider the economic chaos that will come from this. Not only has an RV this big never happened before in history. This scenario has never happened before in history.
The truth is redenominations happen all the time. Reducing the amount of currency people carried, dropping the zeros, and raising the value is all redenomination language. When a redenomination happens a new ISO currency code is released. (AKA ISO 4217 Country-Currency Code) The ISO code is 3 letters that identifies the Currency for a country. For example, USD = US Dollar, IQD = Iraqi Dinar
In a straight across redenomination a new series of currency will be released and a new ISO code is issued. There is a trade in period or time frame when both series of currencies will coexist. Once the time frame expires the old series will no longer be valid. Every note in the old series will be taken out of circulation. If Iraq redenominates the 500, 250, and 50 notes will all be removed and will not be valid after the trade in period. Here is how a straight across redenomination will work.
OLD CURRENCY IQD NEW CURRENCY NEW ISO
One 25,000 note old dinars = One 25 note new dinars
One 10,000 note old dinars= One 10 note new dinars
One 5,000 note old dinars= One 5 note new dinars
One 1,000 note old dinars= One 1 note new dinar
Two 500 notes old dinars= One 1 note new dinar
Four 250 notes old dinar= One 1 note new dinar
Twenty 50 notes old dinar= One 1 note new dinar
Keep in mind that the dinar further breaks down in units of fils, Kind of like our dollar breaks down into cents. This will be reflected in the redenomination process.
When there is a redenomination every old note will be pulled out of circulation. 35 trillion outside of banks will become 35 billion outside of banks. There will be no loss of value. Between 1960 and 2005 there were 70 currency redenominations. Some countries redenominated more than once. Since Redenomination has a historical precedence and the mythical RV of a 100,000 has none. Which one do you think Iraq is likely to do?
Terms like removing the zeros, raising the value, and LOP, carrying less money, Are all slang terms for redenomination. See for yourself. Check the links below. The problem here is Iraq, News organizations, and international governments are using redenomination and revalue interchangeably as if they all have the same meaning. This is where a lot of the confusion is coming from. While some of the articles declare a revalue of the currency, they really reveal and declare a redenomination process.
At this point I have almost said everything I set out to say. I will only post an article one more time. This will be the conclusion to the matter. After that I will be done. I plan to move on with my life after this and move away from following the dinar investment. If you are holding dinar or you are considering investing, be very careful! The gurus and the forums will not tell you what is really going on. This is because they are all making money off of you believing there will be a mythical revalue.
12 thoughts on “Where do we go from here part 2”
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I have Ten 25k dinar notes and Ten 10k dinar notes. I have them framed and hanging on the wall next to my computer desk, Just in case I feel like investing in the next get rich quick scheme that comes along, small price to pay for a good lesson!
Here’s an interesting post that my friend sent me. I told him that I don’t believe in this scam but he still continous to torment me….. but it’s a good laugh for all of us……
To back what you reported:
Please do not call banks until OKIE says to call banks. A number will be given to call.
dinarmama7: OKIE just received the report that it is live on the Foreign Currency exhange in Texas. $42.38. This code will give you an additional $2.50 per dinar with this code.
000041159265. It is live on the Foreign Currency Exhange Forex in Texas right now. NO QUESTIONS PLEASE.. He is not at a computer and could not post this himself.
This occurred at approximately 2:30 pm CST. OKIE will be in later to followup with more details.
I don’t see how people can believe this! First an exchange rate of $42.38! That would cause a global chaos! Second it’s live on the Foreign Currency exchange in Texas….. but not anywhere ex? Forex is live everywhere due to our computerized technology!
And if you go to a bank and belong to their very large group of Dinarians, you will even get an additional $2.50 per dinar with their code!!!!!!!
Are these Dinarians all so brainwashed, naive, stupid or what! I put all of my friends who still believe in this scam, in that category…..and if they read this post…….. yes…. that’s what you are!
With the economy the way it is….. these people are wasting their hard earned money!!!!!!
The Gurus motto,
If you can’t dazzle them with brilliance, baffle them with bull. This is stupid because currencies don’t revalue in one geographical location only. They revalue all over the globe at the same time. Can you imagine the chaos that would ensue knowing what country the dollar would fall in first? Or even rise in first? The common man would be able to hedge his bets in Forex and none of us would ever need to work again. Kind of defeats the purpose of money to begin with right? Whether it is a floating rate, revalue rate, or a devalue rate. Whenever there is an adjustment it happens everywhere on the globe at once
Okay, Marcus, it’s the one I had already but here is the information and video……
VIDEO: IRAQ CURRENCY REVALUATION CCTV News – CNTV English
Gogomez ok Yes that is the one. I streamed it from You Tube. I am glad you found it I was getting ready to post a link.
Marcus, Thank you again……. question, is the last picture with the calculator suppose to have a link to a CCTV video….. because it goes no where…..?
Marcus, love your research and it’s sad to see you go. I would like to mention a site that just started. http://www.thedinarscam.com It’s similar to DinarVets, except it’s for those of us that know the dinar is a scam.
Thanks Reeder I will check it out
Stop Chucking my wood!
I should point out in the interest of discloser that the ruling the Iraqi court gave on January 18th of 2011 was reversed. I think that Maliki is operating as though it is still in effect.
I believe Maliki is trying to gain control based on that decision
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