Wednesday, July 11, 2012


7-11-2012 20MillionDinar (Dinar Vets): **Iraq M2 of 70 Trillion** I then compare the 70 trillion to a 1:1 RV which would equal 70 Trillion USD. M3 Money Supply for Selected Countries: When considering M3, the total money supply (of the world) exceeds US$50.1 trillion! Of this amount, the U.S., Euro-Zone and Japan account for US$33.1 trillion or 66.2% of the total. The following graph shows a cross-country comparison for M3. What I am wondering is how does Iraq, a war torn country, come out of the gate with a newly revalued currency which now equals more than every other country combined? Iraq's currency would now be worth twice of that of the USA, the Eurozone, as well as Japan combined! Even if Iraq has HALF of the stated money supply, it would make Iraq equal to the Eurozone, the USA, and Japan combined. This is where I find it hard to believe that an overnight 1:1 RV is possible. Even $.10 is pushing it. However, I do feel that a gradual increase in the IQD is possible! This way they could slowly reduce the amount in circulation while increasing the value of each existing currency unit in circulation. Increase oil exports, build up infrastructure, promote growth in the private sector, which will all help to build their countries' overall GDP. This is how a currency gains value in the real world.

 If Iraq is worth 70 Billion but has 30 Trillion (M1) Dinar in circulation. They could keep that same value ($70 Billion) but make each existing currency unit (IQD) worth more by reducing the overall amount. However, the decrease in currency in circulation needs to be gradual, as well as the increase in the value of the IQD. The reason it needs to be gradual / controlled is so that they maintain inflation. Keeping inflation under control has been one of their biggest priorities during the past 9 years or so, I don't think they want to destroy everything they've worked for just to have a high valued currency overnight. Actually, keeping inflation under control is EVERY CENTRAL BANK'S main priority! Something to think about, Japan's total M2 money supply is equal to 6 Trillion USD. Iraq's total M2 Money supply is 70 Trillion IQD equal to 70 Billion USD. A $0.10 straight up RV of the IQD would make Iraq's total currency more valuable than Japan! Overnight!!

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.