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Tuesday, January 20, 2015

AKM IMRAN UPDATE, 20 JAN

AKM IMRAN :The plan is to reduce the money supply gradually as the value rises, so that by the time the dinar gets to $1 the total money supply will be 40 billion dinars, worth the same $40 billion that it is now. There will just be less money in the system and, by then, all of the large three zero notes will have been sucked into banks, then to the CBI, where they will be destroyed (effectively lowering the money supply in terms of dinars, not in terms of overall value).

 I would add this additional note: as the value of the dinar rises and the money supply falls, the total value of the money supply remains relatively constant (as I just noted). This means that at a dinar worth $1 the Iraqi currency would STILL be the strongest in the world, since it would still be backed 150% by the reserves ($60 billion in reserves to back 40 billion in dinars, the new lower money supply, but still worth $40 billion.

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