7-5-2012

Unbelievable news coming out confirming they are going to raise value of currency...Every time Shabibi mentioned this...Maliki would ask for a study...now the GOI is on board...this is going to happen no matter what...I don't know exactly how this is going to play out or what the rate will be...I have not seen anything negative yet...Kick back and relax!


http://theiraqidinar.com/2012/07/05/dinar-guru-updates-dinar-guru-7512/


First of all Shabibi has never said he's going to "revalue" the IQD.  When he talks about raising the value it's always in conjunction with deleting the zeros and issuing new currency.  In other words, a lop.  A lop would raise the value from $.00086 (IQD's value) to $.86 (new currency's value) and decrease the amount of dinar in circulation from 30 trillion to 30 billion.  NO NET CHANGE IN THE MONETARY BASE, BREITLING!!!  If the GOI is now on board with Shabibi that means they're on board with the redenomination project that Shabibi has been talking about for a couple of years now. 




Nothing negative?  How about this?




Baghdad (CNN) -- A man wearing an explosive vest blew himself up Thursday inside a barber shop in the northern Iraqi city of Mosul, killing at least five others along with him and wounding 20, police said.

The bombing occurred in al-Dawasa commercial area in central Mosul, which is located in the Nineveh province about 285 miles (380 kilometers) north of Baghdad.

In the Iraqi capital, a roadside bomb also exploded and wounded five people Thursday.

The violence came one day after 11 people were killed in attacks across the country, and two days after 36 people were killed.

In June, at least 240 people were killed in militant attacks in Iraq, according to CNN estimates.

http://www.cnn.com/2012/07/05/world/meast/iraq-violence/index.html




Like it or not Iraq is still a very unstable country, and instability dosn't translate into a higher currency value.  Gurus like to dismiss these bombings as irrelevant to the "impending revaluation of the Iraqi dinar" but anybody who knows anything about currency valuation knows otherwise.  Iraq can lop in the midst of this turmoil with no problem, but any increases in the net value of their currency are going to be hard to come by.