DRAGON TAMER POST - Dinar Rumor

IQD Exchange Rate High or Low... You Decide...

Many feel a substantial RV would be impossible when based on the CBI financial reports. However, I have to ask; when the circumstances change, (ie, Chapter 7 lifted, all outstanding funds released back to Iraq, oil freely sold without restraint), would not those reports also change?

Consider for just a moment that Iraq exports were increased closer to their current production rate. Then consider the idea that Iraq could use the funds (being held in escrow, foreign bank accounts, ect) for their Agricultural infrastructure and Private sector. Add in the increased value of their RVed currency (things are then a lot cheaper),and is it so hard to believe that this country (Iraq), can be the wealthiest country in the world?? The ONLY thing that is preventing this country from “realizing” this is the politics!!
http://www.cbi.iq/history.html

On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778, } “Pre-Saddam”, represents the real Iraq as I see it. Oil exports at 3.5mb/d back in the 70’s and today they produce 2.5mb/d, but export only 1.8mb/d. In 1973 the dinar “rose” to $3.778!! If their Agriculture can once again produce 15% GDP (and that is their very intent), and Oil production is increased beyond the 70’s output, to their stated goal of 6mb/d, (eventually climbing to 10-12 mb/d) and if they continue encouraging the private sector,…… what would these CBI financial reports mean then??

Imagine Iraq removed from Chapter 7 and receiving all of their funds. I see them investing in their Agricultural sector and private sector immediately while continuing to increase oil production. Would it really take long to get back to the 70’s levels

There are those who seem to believe that if Iraq RV’d at above $1 value, they would likely experience hyperinflation. The people wake up one morning and they have a lot more money. In the minds of some, this is not possible!! 

Kuwait “re-instated” their money almost over night, and hyperinflation was
not an issue. Therefore, what if those same conditions could be copied here in Iraq? Currently, the IQD is very undervalued and the “average” Iraqi is not making $500, $900, or $1500 every month. Iraqi Army, Federal Police, Iraqi National police, ect,. get paid very well compared to the “average” Iraqi!!

Millions and millions of Iraqi’s are dirt poor!! In fact, 22% live on less than $5 per day. Yes, should an RV happen, a small number of Iraqi’s could retire. But, a LARGE number would finally have what they once had back in the 70’s!! As for Iraqi’s “hoarding” money,.?? I’m sure a “very small” percentage will do that, but, “MOST’ Iraqi’s don’t even have enough for food!! Many have received smart cards and that is how they are able to eat every month!!
I continually see these posts bring up the aggregates of the CBI and make every effort to educate us “stupid” people using their “math”!! I can only assume that we are all aware that Iraq does not receive their “full” oil revenues as yet!! They don’t have their “Billions” that are held in escrow and as far as infrastructure; they are already a lot further along than one might think!! 

Kuwait currency (as we know), dropped to a value of about .10.! And, it didn’t “gradually” increase to its former value. No “hyperinflation” either.  Yes, there are differences, but, from 10 cents to $3+ “is” the issue!! In Iraq today, one coke may cost 2000IQD, but, if the RV were to happen, that coke might cost them .20fils!! Very similar to Kuwait!! And Yes, Iraqi’s would wake up with a lot more money too!! Very similar to Kuwait!! Prices would be adjusted as would wages. Very similar to Kuwait!! A country that has an Oil based economy and is next door to Iraq!! Kuwait’s currency lost value and re-instated their currency in a few years,. For Iraq it will be 40 years. Back in 2003 it could easily be argued that Kuwait’s infrastructure was already in place and therefore, Iraq did not compare. But, when we examine Kuwait’s condition after the war, I would argue that Iraq today, does compare to Kuwait back then.

{Average wages in 2007 hover around $4,250 per month for Kuwaitis. As for skilled and experienced non-Kuwaiti (Engineers, Doctors, and Managers) the average monthly salary is hiked up tremendously, to an average of $10,000+ a month excluding living and other benefits. Please, also keep in mind that Kuwait is a tax free country so all the above figures reflect actual take home numbers} (quote from Wikipedia). I post this to help us see a reality that differs from our own!! These figures tell a real story about Iraq. Kuwait has no Agriculture. They import much of their water. Tourism is NOT a booming part of their economy either!! Yet, “every” Kuwaiti receives a comfortable living!! Here in Iraq, Hospitals, Schools, Malls, Hotels, Apartments ect, have all been built and are still being built. Iraq has Natural Gas reserves, Water, and Oil. Agriculture and the Private sector are both included in the Future of Iraq and Kuwait has neither of these. Yet, Kuwait has an exchange rate of over $3+!! When the war broke out, their currency bottomed out over night!! When the war ended, it returned to pre-war value, over night!! Some people made a lot of money as a result of buying low and holding!! Kuwait changed their currency due to corruption during the war, but, exchanged at a 1-1 rate (except for certain serial numbers that were listed). At that time, damage was costly and I would say Kuwait “then” compares closely to Iraq today. Kuwait exports only 2.4mb/d (2007 report). Iraq has that capability right now!! 

I am not a dealer. I make no commission. I’m a contractor currently in the IZ (International Zone), just down from the largest Embassy in the world.!! I served in Desert Storm/ Desert Shield and I came back here in Iraq in Apr 05. I’ve been to Dubai, Bahrain, Afghanistan, Saudi, I spent a year in Kuwait and I’ve been invested in the Dinar since 2005!! As far as I’m concerned, I’ll let these self proclaimed economists do all the math they want and when the CBI changes their reports to reflect the “REAL’ equations, “THEN”, I’ll do the math!! A wise man once said, “If you want to know where you are going, you need only turn and see where you’ve been”!! The sarcasm I continue to see on these forums reveals a lack of real knowledge and hard facts. Therefore, I would encourage more research and less “bashing” !! I was 100% confident in this when I bought my first million about 5 years ago and I’m 100% confident today!!

I realize many on here have not been to the Middle East, and I also realize that many are new to this investment. (FYI) Our soldiers have done an OUTSTANDING job here!! Sewer systems, Water Treatment, Electricity!! 3100 schools renovated and 38 new, 180 hospitals and our soldiers took part in these projects. Media is VERY quick to paint Iraq as a failure and I take that very personally!! Our soldiers are “very” successful and it needs to be said that the only reason we are having discussions about RV, ISX, Forex, NASDAQ, ect,. is because of their success!! Every time I hear people use infrastructure as a basis for some theory for why Iraq can’t do something, it’s like a slap in the face to those who have worked so hard to build this up.

I want to ask those “experts” where the various infrastructures stand?? Do they have any idea? Iraq is, and has been, making progress right along. I think their banking sector needs no comment, but, maybe Agriculture and Transportation might need a link, so, I listed one. Real Estate has also been exploding lately too!! And Oil?? I think that says it!!

Now, to those who continually belittle others on these forums by asking,” are you serious”????? I now pose the same question!! Are “YOU” serious??