$$$ Economist: Delete the Zeroes From the Currency WILL REVIVE THE IRAQI ECONOMY $$$$

Economist: Delete the Zeroes From the Currency WILL REVIVE THE IRAQI ECONOMY

By: admin
On: Thursday 09/16/2010 12:29

Said one economist, that the deletion of three zeros from the Iraqi currency will increase the economic value and revive the local economy. The Dean of the Faculty of Management and Economics at the University of Karbala governor Dr. Mohsen Aerakipalan that the currency is a block of paper, returned to be a problem in itself stands in the way of the development of the national economy.

"If I want to solve this problem, we have to delete the three zeroes from the currency, pointing out that the Iraqi central bank's move in this direction is towards a solution and get rid of the huge mass of paper. Adviser, said the CBI appearance of Mohammed Saleh, said that the process of deleting zeros from the Iraqi currency will be after the new government directly, saying that zeros have been added for the currency formed a cluster of large cash amounted to twenty-seven trillion Iraqi dinars, and led to a confusion in commercial transactions large and the work of banks. And on how to solve the problem delete the yellowing of the three, "said Dr. Mohsin said that the product that has a list price will be a thousand million dinars, pointing out that the first step in this direction is to issue two classes of one currency and paper worth a million and a second class of a thousand dinars. He said the implementation of this step will not take more than a year or two, and added that the deletion of zeros will in the future to carry the citizen small amounts of the currency and increase its value in conjunction with a qualitative shift in the Iraqi economy, in terms of operation of the economic resources of the agricultural sectors, industry, transport, services and storage and the development of national staff to follow the policy of balanced economic and financial.

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THANK YOU MOTO!!!

All we need to do now Kar is find the " New Goverment ". and that my friend is for my super hero, "Underdog".

Kar/Admin wrote:Wanted to bump this article up, because it'll encourage us all...Even though it's from September... it's after the new government...

Adviser, said the CBI appearance of Mohammed Saleh, said that the process of deleting zeros from the Iraqi currency will be after the new government directly,

Yes..... this was a great article. Thanks for the bumping of it. This is where I got the statement I have been using, that refers to Al- saleh, stating the process, once it is implemented, will take "Less than a year or two." <Not to worry.... that does not mean a year or 2 for RV...... it simply means they do the RV and set the policy, to replace old notes with new notes and issue lower denominations, as the market needs them, during this time frame, presumably, AFTER the RV..... nothing more.>

Did anyone also notice, that when CBI talks about removal of zeros, they do not use the term 'Redenominate' ? Instead, they use the term removal of zeros, which I interpret as meaning, to remove old 'Yellowed' (Damaged currency ) from the M2. That is what they are saying, that over a year or 2, would do a few things, basically.
1. It removes a large amount from the M2, which in turn increases the value against the Reserves.
2. It also allows a systematic implementation of the lower denominations.
3. Allows the market to adjust to a Market Driven system.
4. Sets a new CPI (Consumer Price Index) and allows the market to come to it.

Understand, this is a difference, between the terminology that was used by the Ministry of Finance and the CBI.
MOF issued statements all year using the term Redenominate, but CBI countered that a couple weeks before this article, stating that the MOF sent a recommendation to CBI, to redenominate, but CBI rejected that.

Removal of Zeros and Redenominate do not mean the same thing.

Redenominate: means to decrease the value of a larger note to that of a smaller note.... which would mean to LOP. CBI stated they reject that. (Another article a couple days ago also stated they will NOT Redenominate...... meaning they do NOT plan to LOP.)

Remove zeros: means to remove currency from the M2 and increase the value of existing notes and/or increase the Reserve support, instead of reducing the value to that of a lower denomination.

I love it when you talk, lol! Thanks Enoch

Thanks for the vote of confidence MochasMom and Kar.

I should add this also..... Reinstate: means to reinstate an older currency and has nothing to do with Revaluation.

This is my theory and is opinion:
In summary the term redenominate is smoke screen, to make the population think they will not gain from hoarding their money.
If you think about it, it makes perfect sense, that MOF would use such propaganda, to avert potential Deflation, meaning, if they gave a clue, that the IQD would increase in value, nobody would use it. They would all hoard it..... which they are doing anyway.
GOI is trying to discourage that. So it makes perfect sense to me, they do not want to use language, that would give a 'Tell' as to their intentions...... hence the term, Redenominate, that came from MOF, NOT CBI.

Thanks Wildman.

Yes..... the very fact that USD is being used more than the IQD is what is trying to be discouraged.
This keeps Iraq open to black market activity, and the abuse of traders and officials, in unfair trade related issues, that is in and of itself, inflationary and keeps the people there having to pay more for goods and services, than they would have to, if the money is convertible and valued to it's own Purchase Power Parity. This radically reduces the PPP of the general population and holds them to what is basically slave wages, for the sake of being able to outprice the region in exporting.

That is exactly what Obama was addressing, at the Asia Press Conference yesterday, concerning Trade Imbalances, that are largely the cause of the world economics troubles..... among other issues.

This is also, why G20 has been all over this issue of undervalued and devaluing currencies, by countries like China, for gaining a competitive edge against the competing exporting nations.

The use of the Dollar, in these countries, causes a form of 'Deflation' of the currency of those who allow, what the IMF refers to as 'Multiple Currency Manipulation.' It tends to cause Deflation in the country doing that, and further inflames the problem that country faces, in that the people begin to hoard the money, if the country gives any clue, they intend to increase parity.

In the words of Dahrma, "Therein lies the toad."

Thanks Enoch.
Your statement there>>> This is also, why G20 has been all over this issue of undervalued and devaluing currencies, by countries like China, for gaining a competitive edge against the competing exporting nations.

Last night on the Fox Ticker. China is going to adjust their currency while keeping their markets open.

Hey.... that is good news. I find it interesting that Obama, in his statements at the Asia Conference, spoke about Iraq and the success they are having, and continued efforts and where that is leading.

Then he immediately goes into lengthy discussion explaining how the world is affected by undervalued currencies, and how that causes trade imbalances.
I have never heard a world leader speaking on that, putting the fault directly where it belongs, being he was openly condemning Money Manipulation and Undervaluations of Money..... which is the root of trade imbalance and the world economics crisis.

Of course, they always use China as the example, but never mention the smaller countries.... which he referred to as those under development programs of the G20, UN and IMF.

I think this was a really healthy sign, that the world leaders are finally getting a clue.

He also said some really interesting stuff..... in as much as saying that these nations, like China, with such undervalued currency, will be lifting the unreasonable restrictions on the values and allow a more relaxed policy, to allow the values to be 'Market Driven'.
He also pointed out that China has spend vast amounts of money to artificially hold down the exchange rate of the Yuan.

Looks like everything is heading in the right direction and my guess is, while Obama was talking about China..... my guess is they are all thinking of Vietnam and Iraq! LOL

My question is do you really think China will up thier currency because of the USA or world leaders. Remember Japan in the eighties. They still havn't recovered from that.

Please watch for China, they sure know how to make a statement.

DEAL: China to buy stake in GM

China's SAIC close to GM IPO stake buy-sources:
Nov 10 (Reuters) - General Motors Co [GM.UL] is in the final stage of talks to sell equity to long-time Chinese partner SAIC Motor Corp (600104.SS) in conjunction with its landmark initial public offering, two people familiar with the matter said.

http://www.reuters.com/article/idUSWEN287720101110

China Fired Missile Seen In Southern California:

China flexed its military muscle Monday evening in the skies west of Los Angeles when a Chinese Navy Jin class ballistic missile nuclear submarine, deployed secretly from its underground home base on the south coast of Hainan island, launched an intercontinental ballistic missile from international waters off the southern California coast. WMR’s intelligence sources in Asia, including Japan, say the belief by the military commands in Asia and the intelligence services is that the Chinese decided to demonstrate to the United States its capabilities on the eve of the G-20 Summit in Seoul and the Asia-Pacific Economic Cooperation summit in Tokyo, where President Obama is scheduled to attend during his ten-day trip to Asia.

The reported Chinese missile test off Los Angeles came as a double blow to Obama. The day after the missile firing, China’s leading credit rating agency, Dagong Global Credit Rating, downgraded sovereign debt rating of the United States to A-plus from AA. The missile demonstration coupled with the downgrading of the United States financial grade represents a military and financial show of force by Beijing to Washington.

http://www.infowars.com/wayne-madsen-china-fired-missile-seen-in-southern-california/