PACMAN POST - KTF Missions

posted by pacman on ktfm on 121309

Good evening KTFM.

If you don't mind, I have some information that I would like to share with all of you. This info was brought to my attention from an undisclosed source and my faith will not allow its validity to be questioned.

I am not presenting this as fact and my only desire is to open this up for discussion and hopefully get some feedback, good or bad.

Lets start with what we know as fact:

1 USD = 1170 IQD
1 IQD = .00086????

The IQD is directly valued and or pegged against the USD. The introduction of the NID was on OCT 15, 2003 and exchanged for the old Sadam notes. The exchange period was 90 days and ended on JAN 15, 2004. At the time of intro it was valued somewhere in the neighborhood of 1700 IQD to 1 USD.

The value was based solely on the USD. The US pumped USD into the Iraqi economy giving the IQD its value. It was the responsibility of the CBI to manage the new currency, circulation, exchange and sustainability. In order to do this, they set up the infamous CBI auction. The 1st auction was held on JAN 5, 2004 at a market rate of 1695 per USD. The participating banks were buying the IQD with US dollars. This is how it was put into circulation. As the demand grew for the IQD, the CBI began vacuuming the USD out of circulation and the value of the IQD began to appreciate rather quickly.

On JAN 14, 2004 with one day remaining for the exchange of old notes, The demand hit the roof and the IQD experienced a sharp appreciation to 1170 IQD per USD. The CBI immediately pumped more USD into the economy dropping the rate back to what they claimed was sustainable at the time. They could not allow it to appreciate beyond the 1170 and brought it back down to previous levels, around 1400 at the time.

WHY YOU ASK?

I believe the answer is two fold. The stability was questionable and there was..................A.......PLAN!

1 USD = 1170 IQD
1 IQD = .00086???

Keep in mind the real value of the USD, .86 at the time.

Over the next 5 years the IQD slowly appreciated as the CBI allowed it to. Almost exactly 5 years later on JAN 18, 2009 the CBI locks down to the 1170 rate that they have allowed the IQD to appreciate to. Since then the rate has not even had a pip.

HERE IS WHY:

1 IQD = .00086???.............. Now, move the decimal 3 places to the right.

Now Reverse

1 USD = 1170 IQD................Now move decimal 3 places to left.

Now reverse IQD and USD

1 IQD = 1.17 USD
1 USD = .86 IQD.......................... Now do the math.

.86% of 117 = 1 USD

Hmmmmmmmm.............Could this be our new rate?

If the CBI allowed the IQD to continue appreciating below 1000 per USD, When they carried out the plan and reversed it, the IQD would be worth less than the USD, thus defeating the plan and the purpose of having their own currency. In order to increase demand and confidence of their own currency it has to be worth more than the USD. That would be like us deciding to use pesos. To truly dedollarize, the IQD has to be worth more or you just create a black market, along with more corruption than they already have.


Now please, consider the simplicity of this plan. The act of implementation is so smooth a caveman could figure it out..... Sorry Geico............

The entire market and vendors move their decimals 3 places and Bing Batta Bang Their back in business with even a little more profit built right in. Everyone is happy and Iraqi 's love their dinar............


Up until now the entire Iraqi economy has been based on the amount of USD pumped into it. Now the CBI is vacuuming the USD out of the economy and replacing it with IQD.

They are reversing the process. Lets call it.............

REVERSE CURRENCY IMPLEMENTATION.

Its kinda like.............jump starting someones car.
Hook up your good battery to theirs, give it some juice and WA LA, they are up and running, you disconnect your battery from theres and your off and they are on their own. Hopefully their democracy(alternator) will keep it charged. lol

Its all too simple if you ask me...

The current value of the IQD has nothing to do with their GDP or their oil, its all based on their reserves. The good news........ Thats all about to change!

Now if you go to this link:
http://www.cbi.iq/pdf/C.B.I.%20FOREI...20AUCTIONS.pdf

You will see this at the heading:

AUCTIONS + C711

NOW, REVERSE IT................ YEP....................117........

Coincidence?...............You tell me.

If you have read the article from the economist based out of the university in Iraq, He believes the exchange rate should be in the $1.13 range. I will let you decide what the media really leaks to the people of Iraq or not.

Free Press, whats that? You mean I don't have to pay for it?.......lol

I think they may have been planting a seed.

If you have read any of my previous posts, I have no doubt that Iraq will implement a plan to achieve a 3+ rate to rival their neighbors. Its how they are going to get there that I have questioned.

Now with all that said, If the info is correct there are two scenario's as to how this will play out.

#1.... We get to cash in at 1.17 and the CBI turns the vacuum back on and removes the majority of speculators and large denoms from the market. I believe there would be a 90 day window for us to cash out our large notes. They tend to give 90 days for exchange there in Iraq and I can see history repeating itself. When they have managed to take all the large notes out of circulation they will have the option to tie the IQD to their new found wealth, GDP and OIL. They can either float or RI/RV at that time, giving much less detriment to speculation with a rate of 1.17 and elimation of large denoms.

#1 gets my vote.

#2 Please understand I am not advocating the "L" theory. If you choose to go down that road you are doing it of your own accord. My previous posts have voiced my opinion on this and why I don't believe it will happen.

Yes, moving the decimal does eliminate 3 zeros, but along with Franks intel, if there are lower denoms in circulation already, 1,5,10,25, then that would defeat the whole purpose of a "L"! And what of the 50,100,250,500?

Worst case scenario, you still make a 17% profit on your money.

What option would you vote for?

Speaking of votes, don't they have an election coming up soon, I wonder how they are going to win votes.

Now this is not being posted with any malice or ill intent. I am asking for feedback and or alternate views.

I will be happy to provide you with any links that i can for the above mentioned.

FYI.......... I have noticed another pattern, anything Iraq does pertaining to the IQD seems to happen in the middle of the month.

Just my honest opinions, much love and respect.........