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Friday, June 9, 2017

TNT CHAT, 9 JUNE



Dallred123:
I see we are still waiting

Yada:

The wait is over, we just dont know it yet dallred

OldCrow:

Well, Iraq, PUSH THE BUTTON and let's all get solvent….If it comes out as 86 cents (Wang Dang followers) I have a plan for that. If it is $1.20 I have a plan for that. If it becomes worth $3 or more, we have a plan for that. So, LET IT ROLL

Yada:

Well, Im the mind Old Crow that whether its 83¢ or $1.20, that is the value in Iraq but when those rates are converted to dollars, we have the values of $3.41 to $3.71. Their in country rate would not be our international rate

Gr8ful:

It would be such a relief if the upcoming celebrations are indeed significant to the release of what we are anticipating. Happy Iraq will be able to start rebuilding but the icing on the cake would be to have purchasing power unlike what they have had in the past. Let this NOW be their time...And ours

Eilund:

it's been a long, long wait. But we believe that there are better days ahead. We must continue to trust, believe and have faith. We don't know the day or the hour this will happen. We do know by faith that will happen and that's good enough for me......

Xyz:

Washington urges the Kurds to communicate with Baghdad on important is​sues
https://translate.google.com/translate?tl=en&u=http://alforatnews.com/​modules/news/article.php%3Fstoryid%3D144266
US warns against referendum on independence
http://translate.google.com/translate?sp=nmt4&tl=en&u=http://www.allir​aqnews.com/modules/news/article.php%3Fstoryid%3D62785

Daz:

Lets explore exchange rates, multipliers and how resulting values are derived

This is my understanding and i will try to explain it loosely

A dinar is a dinar, a ruble is a ruble, a peso is a peso and a dollar is a dollar...and, the value of each depends on where you are standing at the time you exchange it

.83-1.14 (dinar per dinar trade value) (minus three zeros) will be an in-country rate. this establishes a value for the dinar/dinar +/- either side of 1 dinar buying power..adjusted for local economy, trade and inflation. the removal of zeros through a two part mechanism of literal removal of 000 notes from circulation and the practical function of ignoring the 000's on those notes still in circulation, accommodates the dual existence and concurrent circulation of low denoms and 000's until all the old 000 notes are absorbed via attrition through local commerce, trade and banking. over time this will leave just the low denoms and fils in circulation

.83-1.14 (dinar per dinar trade value) is the true historical, actual, expected and anticipated full value of the dinar on the streets of iraq, this range allows for fluid market conditions...it is and always will be a fluctuating rate somewhere in that range..normally


This in-country rate represents a significant change and increase in value for the iraq population but due to the "removal or lifting of zeros" an subsequent "deletion of zeros"...extreme wealth is not derived from in-country exchanges

To compare and understand this....look at the usd over the last 10 years http://www.tradingeconomics.com/united-states/currency here you will see that the USD purchasing power fluctuated here in the USA between .74-1.02, dollar per dollar

Same thing...this is normal...all currencies from all countries do this

A dinar is a dinar, a ruble is a ruble, a peso is a peso and a dollar is a dollar..depending on where you are standing at the time you exchange it

If we take our USD dollars and go to another country and exchange for that country's currency..the exchange rate kicks in. the exchange rate is a function of balance; balance between economies, trade and value relative to the two countries respective economic conditions at that specific moment in time directly related to which two currencies are being traded (exchanged) against the other.

In order to establish a fair balance between these two economies (currencies) at that specific point in time and place....a little bit of math must be applied ....this is the exchange rate

A rate is a ratio that compares two quantities having different units of measure.

http://www.mathgoodies.com/glossary/term.asp?term=rate

In this currency exchange scenario...we are comparing two quantities...the dollar and the dinar (these are both "units of currency"). but, based on different and contrasting economies, conditions, gdp, debt, trade etc etc...the measurement of the contrasting "units" are different and that difference is adjusted by a calculation by multiplying a given positive or negative number to achieve the sought after fair trade balance...parity

I have often referred to this as a "multiplier"

Historically...the given multiplier for determining the exchange rate between the US and Iraq prior to 2003-2004 was roughly a factor of 3 (+/- .10) but as described above...this "multiplier" is constantly changing and fluctuating both up and down..because the value of currencies as representations of their respective country's economies change constantly.... changing on a minute to minute, day by day basis, because currencies are a reflection of a unit of measurement of the respective country and economy they represent....therefore the "multiplier" must also be fluid so that any (currency) trade can be conducted fairly at any given time

3 +/- is an integer, in this case a positive integer...not a dollar or monetary value (in other comparisons between other country's currencies this "multiplier" could be represented as a negative integer (-3 for example))...whatever it turns out to be (and this multiplier can and does fluctuate significantly and vastly at any time between different nation states and economies based on their then current economic and political condition) the sole purpose here again is balance between two contrasting economies...parity, this is always the goal

Multiplying by a positive integer increases the resulting value.....multiplying by a negative integer decreases the resulting value

the "resulting value" is what we are most concerned with...thats what we are looking for. the resulting value is what we end up with when we exchange our foreign currency holdings for USD.

So ...lets have some fun with numbers

Using the two assumed values stated above...the iraq in-country iqd rate range of .84-1.14 multiplied by the assumed historical average integer of 3 as a multiplier

Low end "resulting value" in USD = $2.52

High end "resulting value" in USD = $3.42

The most simple and easy to understand way i can display this and provide "proof of concept" is to refer you to the IMF historical chart for the IQD value expressed in SDR's..(sdr is a measurement of unit used by the IMF) http://www.imf.org/external/np/fin/tad/exportal.aspx?memberKey1=460&date1key=2016-07-31&category=EXCHRT

I think its easy to see this correlation to exchange rate, resulting value, multipliers etc. the historical record is this proof of concept described above.

Like i said at the beginning, this is "loose" interpretation of exchange rates, multipliers etc and how in-country rates are not our resulting value...in-country rates are a part of the exchange calculation

What we really want to see is a true street rate in iraq in the .84-1.14 dinar range

Next...we want the international release of that rate to the entire world

At that time every country in the world..including the USA, will and can trade the IQD by applying their respective exchange rate multiplier (integer) to achieve parity of trade value..openly and freely

At that time we all can walk into any bank in the USA that deals with foreign currency and exchange our foreign currency at the prevailing "resulting value"

So....in Dinarville, when we talk about "whats the dinar worth"... and all the confusion and debate sets in with discussions about in-country rates and USA rates, low starting rates and rates around the world...we are really all talking about the same thing...its all the same thing

The confusion exists because different people state their beliefs (in resulting value) based on differing perspectives of how and where that value was determined relative to what geographic location the value (rate) was reported.

We're all on the same page...we're just viewing the page from different angles..its all the same

IMO ……is that clear as mud?

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