April 5, 2010
Many many MANY people ask about the “LOP” theory. I may not have specifically and clearly addressed this in the past, so here it is:
The Iraqi Dinar is not going to lop.
With that said, let’s examine the LOP theory so you all understand it. At certain times in history, countries have chosen to “lop” the last 3 zeros off of their currency, which basically makes a 25,000 note worth 25. Fairly simple. The question we need to ask is this:
Why do countries lop?
One reason is hyperinflation. Sometimes a country prints currency so fast and furious that the economy can’t keep up, and the value of the currency goes down, down, down. Take the Zimbabwe currency, for example. A “Zimbabwean Millionaire” doesn’t really have too much to brag about. Here’s a picture. Actually, this guy may be a Zimbabwe Zillionaire, depending on the size of the notes!
That is Zimbabwe, though. Not Iraq.
Iraq does not have the inflation problem, Iraq is not a country with no way of obtaining wealth to increase the value of it’s currency like Zimbabwe. Iraq doesn’t even need to invent a gadget to make money, like China could do…
Their pockets are already lined with Black Gold.
I have said many times that Iraq’s currency is possibly THE most stable currency in the entire world, and aswat al iraq recently concurred with that statement:
BAGHDAD / Aswat al-Iraq: The exchange rates of the Iraqi Dinar (ID) against the U.S. Dollar is currently constant and stable, an adviser of the Central Bank of Iraq (CBI) said on Thursday.
“Currency policies are normally unstable in an absolute way,” Modhihar Mohammed Selah told Aswat al-Iraq news agency.
He said that the CBI intervenes to respond to legal demands of customers regarding the U.S. Dollar.
Currency policies are inherently unstable, but the Iraqi Dinar is stable.
I will close on that note for now. If you’re not on the newsletter, sign up – I have some announcements coming this week that you don’t want to miss.
Warm RV Wishes,
-Adam Montana
Related posts:
waiting for some remarkable RV’s.fingers crosssed.
Thanks Adam…hopefully this will answer their questions and concerns…thanks for taking the time to go over this again…hope all is well with you and the family….
The exchange rates of the Iraqi Dinar (ID) against the U.S. Dollar is currently constant and stable. —> that’s mean will not be revalued???
Adam I bought your book and wondered does that qualify me to be a VIP or is that totally separate?
I am confident your are right about this Adam! Thanks for the info as usual. Hoping to become a VIP soon
Keep Good News coming! We r getting closer and closer
Adam says. “The question we need to ask is this”. What, wait, hold the phone. This idea that re-basing the dinar won’t happen because history hasn’t exampled these circumstances. Isn’t new information from Adam. Ask yourself, would a sudden RV cripple the economy of Iraq. Yes it would, at the quantity we had hoped for. Give it up folks. We’re not going to get filthy rich but we are going to make money. Ask you own questions. What do you think global money managers would do to avoid turning a $1,000 investment into a $1,000,000 overnight. Show me the rule book. Oh wait, we’re the money managers, we make the rules! Dinar Speculation is a happy place. Be happy instead that your investment may tripple.
adam, give us some of your cbi contacts thoughts. are you still in the time frame of june?
hello adam, i just have one question . if they are not going to lop the dinar, how do
rumors like this one always seem to get on sites such as this ? when iraq has such wealth that it does, in black gold. where do people get this info that a lop would even happen.
thanks for the insite
lawrence
Sorry Adam but with a currency unit number in the trillions there is NO question the money supply is grossly inflated. In fact it is reputed to be exactly 1000 times higher than the pre-war supply is. How can people say there is no significant inflation when a loaf of bread costs 2000 dinars when it used to cost 2/3 rd’s of a dinar. A misconception of the lop is that a lop reduces the worth of a currency unit when in fact it does not….it merely decreases the AMOUNT of currency in circulation thereby RAISING the currency value. It is simply a means of achieving the balance between numbers of units of currency and the value of each unit. Inflation occurs when additional currency is printed and put into circulation and that is the only reason. Please don’t confuse temporary price changes with inflation. Bottom line we are looking at a high probability of a 000 lop that will bring the numbers down to the pre-war levels. Sorry but it’s just way too obvious and the numbers can’t be denied.
Adam, I’m a VIP over at DinarVets. I’d like to sign up to the newsletter but I don’t know how. When I click the link on this page to sign up via e-mail, I get redirected to a blank page.
thank,s my friend. you realy are good,god bless you
Thank you for your sharing Adam,
You keep me smiling,
Garry
IF YOU THINK WHAT I THINK OUR NEW IRAQ MONEY IS NOT GOING TO BE WORTH THE PAPER IT IS WROTE ON
Brian B: http://dinarspeculation.com/subscribe.php
Tim P.
It’s looking more and more like that each day. I wouldn’t expect a revalue for a while. Once it hits the market, then we might have a time frame of revaluation, before then, forget about it. Just sit on your Dinar and forget you have them, until it’s time to get your return.
Well it was said that there would be vicious rumors out there b-4 this would happen so I guess there you go !
Great message Jay! I’m still awaiting a response from anyone including Adam to your thought out and accurate comment. I noticed that “How do I subscribe?” from Brian B. was answered right away
I’m sure you have already addressed this question, but here goes. I worked in Iraq from 5/03 to 5/04 I purchased dinar while I was there as an investment. Most of the time it was from money exchangers in Kuwait. I keep seeing that I’m going to have to show proof of where I purchased my Dinar to sell it. Is this true and how will I be able to do this? I have purchased some more here in the states from a bank in the last few weeks and it comes with proof of purchase documentation with it. Is it really going to be a problem? I enjoy coming to your site and checking out whets going on with the Dinar, Please keep up the good work. Thanks Keith
Thanks Adam
If you don’t believe the Dinar will be worth anything, why waste your time on this website? I choose to be optimistic!
OK, OK, IF the LOP takes place, what different would that make to those of us who have already invested and bought some IRQ’s?
You dont have to have proof of purchase for any other currency so you wont need it for IQD. Banks will be extatic to deposit your IQD with their fees. Banks wont need any proof of purchase
I believe lopping the zeros is unlikely. To do so would be to damage their credibility for world trade.
Besides if you have an electronic account none of that should matter.
yea, dinar is stable, +-0.00085 against usd, i checked yahoo finance, but it’s 2-3 years already since 2007/2008, will dinar RV 2010? i hope so
where can I get IQD electronic account in the pacific northwest of the united state?????
The IQD is way too stable as far as I am concerned. Hasn’t budged for over a year.
While I was working in Iraq, I was in Kuwait about twice a month. Every time I went down there we would go and purchase dinars. On more than one of my visits to the money exchangers I saw Kuwaiti people purchasing large amounts of Iraqi Dinar, one guy wrote a check for 500,000 Kuwaiti Dinars to purchase them. Do the math thats like $1,725,000 dollars U.S. I don’t believe someone would do this unless he thought it was a good investment. I’m trying to be very optimistic. I have already tripled my investment.
Adam,
I appreciate you addressing the “LOP” issue, but I have to say I am very disappointed in how you addressed it. You and I both know that you barely even scratched the surface of what a “LOP” is or why it has occured in past. I have always respected your research on the Iraqi Dinar, and therefore find it impossible to believe that this post reflects all of your knowledge as it relates to a “LOP”. I am sure that most people will miss this one sentance – “One reason is hyperinflation” – but I didn’t. This to me clearly shows you know more than you are stating; but instead you choose to use the same topic (“inflation”) that the rude “LOP” bashers on Dinarvets like to use as a blind justification. You are normally a man with great attention to detail. So exluding the obvious (that you don’t believe there will be LOP & you can post whatever you want on your site), help me understand why you would post such a one sided post with minute facts and a possible disregard for an argument that is clearly much more complicated.
I pray to God that they don’t LOP the IQD, but keeping people in the dark of all the reasons WHY or WHY NOT it would occur is not the right thing to do.
I am hoping you explained this more in depth on Dinarvets…I will go check now. Thanks.
Scott, your comment made me smile – thanks for taking the time you did.
Of COURSE I could have written more on it… in fact, I wrote a book on the subject! http://rvintel.com
BUT – where the book aims to give a serious crash course in Dinar, and includes hundreds of facts that go above and beyond what you can find in a day or even a WEEK’S worth of research… this post was made to do something different.
The purpose of this post was not intense education, but simple proclamation. I simply wanted to give everyone a CLEAR, and DEFINITE post on the LOP subject: IRAQ IS NOT GOING TO LOP.
I could have just posted that one line, I guess.
Hi Adam. I have a question for you, when I check on CBI website, why the date is still 10-02-2010?What does it mean?have this got to do with RV coming soon may be around this april?I hope you please give me the answer as soon as possible to make me understand. Thank’s adam.
It is more likely that the RV will be a very slow increase in value over years.Please someone tell me i am wrong.
Adam, with regards to the LOP article, it seems to be stating that the IQD is stable against the USD at its current value (1170:1). This seems to indicate that there is no reason to RV.
Can you provide some insight into what I’m missing from this article?
Thanks,
Chris
Adam,
Just one question…not trying to rock the boat here, but why was my post erased? If I said something inappropriate just give me a heads-up. Thanks.
Adam,
My mistake…I refreshed the page twice and it wasn’t there. I post another comment and then all of a sudden the original post is there…very weird…it’s probably my computer. Thanks anyway.
Jay- please sell you dinar and get off this site…Your wasting our time and yours. Tim- I totally agree.
Marcus – Again, i totally agree.
Matthew9 -Jay didn’t have a great message and Adam isn’t going to waste his time answering Jay’s rediculious comment.
Yes, the 3 zero’s will come off, BUT not before the dinar RV takes place. The BCC will peg to the US dollar for now, then by 2012-2013 they will have their own currency and RV again much higher then the US dollar.
The whole purpose of this is to help the Iraq economy and RV the dinar first will do that. What happens when the dinar RV gets begged to the US dollar? People will spend money, which will boost the economy.
Adam’s infomation is very valuable, but alot of this can be found with some research.
By the way…NICE JOB ADAM…you are doing great..
hi Adam
anymore new news or update?
appreciate new updates.
thanks.
WE ARE ALL PLAYING THE LOTTERY
AND ALL HOPEING TO WIN WITH THE DINAR,KINDA LIKE GOIN TO VEGAS SHOOTIN DICE AT THE CRAP
TABLES, GOOD LUCK ALL!
Buy More Dinar! Invest! Believe and be optimistic! thats how i feel about it..thanks for the news Adam
Dear Adam,
Can u please help me in opening warka saving account in dinar and dollar. I have submitted the form but no response after one reply from warka.
Is that for u.s citizens only?
I want to be a long term investor as a group mate, as you committed with your cbi contact. But ask them to welcome people who want to open account there. I have also e-mailed to all banks on cpi pannel of Iraq for foreign but none of them responded. Please pass me some one’s email id to whom i could contact for communication regarding account opening.
Thank in advance Adam,
misran, I wrote an article on this site and also it’s in my book – http://rvintel.com
Adam, Please advise how I become a VIP??
Adam,
GOOD TO GO…I was leaning more towards you just making a statement.
Either way, it’s always well respected! Thanks.
Hi Adam. When I read news in this blog,I have questions for you regarding RV or just relatively stable at rate 1:1170:
1.) How many percentages from the total iraq populations for upper class income
iraq people?
2.) How many percentages from the total iraq populations for middle class income iraq people?
3.) How many percentages from the total iraq populations for lower class income iraq people that live under poverty line?
Because the highest percentage between 3 different class iraq people will determine RV or just stable rate 1:1170. I am so sorry I don’t mean to be outsmart than adam and everyone here. I am just curious to know, that’s it. This is just 2 different examples ( cause I don’t know exact percentage for 3 different classes ):
1.) If upper class income people=10% from total population, middle class income people=10% from total population, and lower class income people=80% from total population, then the conclusion, I think the iraq government will make decision to RV one day suddenly in order to make iraq people more prosperous, expecially lower class iraq people.
2.) If upper class income people=60% from total population, middle class income people=30% from total population, and lower class income people=10% from total population, then the conclusion, I think the iraq government will not RV and the rate will be stable 1:1170 like now because the highest percentage, more than=50%, are upper class income iraq people rich people.
because I don’t know the exact percentage, therefore please tell me the exact percentage if you don’t mind adam. Thank’s adam. If everyone here knows too, then I will be happy to hear from all of you here.
HOW DO WE JOIN THE VIP SECTION
Ronnie – http://dinarvets.com/forums/payments.php
Salam Misran, please go to http://www.warka-bank.com, you can apply Warka account trough menu of Open New Account, system will guide you to the end.
It took 4 day for me to get account number from account department. Good luck.
Salam
where can i buy 1170 iqd for 1 usd
Adams the MAN!!!
Hi Adam,
Thanks for keeping me informed
with what ever news you have.
I’ll just sit back and wait.
Rich
I know how we can’t wait to see this RV go up through the roof. But honestly, do we all think that it is going to be $2 or so overnight? Iraq people would not know what to do with its wealth. It would be like the entire country winning the lottery. In my opinion if we get a RV that goes to $0.10 it will be a revaluation of 1000% on today’s price. Then gradually, with development of new business, troops pulling out and future oil contracts it might go to $2 or $3 with a few years.
Adam, would you care to comment? This is a message I sent to a friend, as he wondered why I was so negitave… It was mentioned that the IMF had it early on (as in Planned) to re-base, prior to an exchange rate. This left an uncertainty about what direction these planners would take. This information was given at Dinar Speculation. I had heard of this two years prior and was able to find out the definition of re-basing and what countries had done this. This second mention, confirmed the possibility that re-basing was being considered. I had also read of a common gulf currency in the works for 2010, we were three or four years away from that date at that point in time, so I was hoping RV would happen before that. I could only guess what impact a common currency would mean for my investment. I still could not find any answers. My consistent question was, how could the CBI continue to sell dinar without any restrictions on quantity or end point of availability. So here we are today with 14 trillion printed dinar, expecting a return of a 1,000 times that amount to be available from the Iraq economy. This is where the oversold thought comes in. How will my original expectations become reality if they don’t stop selling and we don’t hear the closely guarded information from the IMF. I should have a Web sight called Dinar Suspiculation. In the past I had just accepted the line, that RV will happen when the world money managers give it the nod. All objections, being overruled. So like Adam I have looked to, the many successes that we now see as ongoing in Iraq. The Iraq bank inside commentary, has called the dinar a dilemma. So I began to try to see the dinar as problematic. Not wishing to cover my ears to any discouraging news, I reasoned differently. Not to give up on the idea of hope but to see if my hope could be justified with these new concerns. I need answers that the IMF isn’t giving, Adam doesn’t know and some questions aren’t being publicly explored, with IMF or CBI decision makers. Adam can afford to keep it upbeat because it’s Speculation. As for me, I’m done linking the successes of Iraq, with the decisions being made behind the scenes. Wanting to know what these answers are, is as illusive as, the when, we will see Iraq finally having a trade able currency. Always the answers are off in the future, the rest is speculation!
You may want to check this out:
http://translate.google.com/translat…abic%26hl%3Den
Felipe:
I agree with you. Going up that high that quick would be crazy!
Hi Adam. When I read the news in this blog, there is a lot of bad thing happening in Iraq, like a suicide bomb, etc that will make iraq people suffer and die. And, from this point:
1.) I think I will take the bad thing happened in a positive side because this is my own opinion that the more and more bad things happened in iraq that will make iraq people suffer and die, this means that there will be higher and higher rate percentage for lower class income iraq people compared to middle class and upper class income iraq people. And the higher the lower class income iraq people, the fastest the iraq government will RV to make all iraq people prosperous, specially lower class income iraq people. And iraq is rich country from selling oil and gas only ( not included counting from other natural resources ), so in conclusion iraq government can RV IQD at anytime and anyrate the iraq government want to be cause they make a lot of money from selling oil and gas only.
2.) After all explosive bad things are over, then there will be a quiet moments for months ahead. and this quiet moments can be meant as surprising and positive things will happen suddenly, noone knows even iraq citizens will not know. Therefore, when one day the quiet moments come , that means everyone should be
very careful not to miss surprising and happy things happened and read in a newspaper or watch TV station.
What do you think adam?adam please tell me if my statement doesn”t make sense.
OK, I KNOW I AM COMPUTER “ILLITERATE”. I DONT KNOW THE DIFFERENCE BETWEEN THIS LOCATION AND THE “THREAD” I JUST POSTED TO. ANYWAY, I THANK YOU FOR THIS WEBSITE SO WE CAN KEEP UP. MY BOSS LADY AND I PURCHASED OUR DINARS TWO YEARS AGO. I COULDNT AFFORD MORE THAN $300 USD. SO MY INVESTMENT IS NOT THAT MUCH. SHE BOUGHT MORE YESTERDAY, BUT I AM SO AFRAID. I HAVE A LITTLE CHRISTMAS MONEY LEFT. I’M GOING TO PURCHASE THE BOOK SO I’LL KNOW A LITTLE MORE ABOUT THINGS. JUST A HICK FROM OKLAHOMA WHO WANTED IN ON A GOOD THING! DO I, OR DON’T I? THE LOP IS WHAT REALLY CONCERNS ME. THANKS
Curioustoknow,
I read your comment, I smiled. Your statement says you care more about the people of Iraq than you do the RV. I think that is a beautiful and rare quality. Thank you.
hey adam. i like what i hear from you. but i have one question. if you believe that it will happen in june, what do you think how high it will go in your opinion?
Someone please help me . I think it may be the currency converter i am using but it is saying the dinar has dropped in value not by alot but it has dropped . Can you tell me what that mean. Looking for any answers someone please help me .
Felipe
It wont be wealth it will be a huge debit for the Iraqi people. There is no way 14 trillion in currency or 28 trill. what ever the actual ammount is will be good for Iraqi espcially if it starts at 2 dollars per dinar to US dollar. If they honored that they would be exchanging dinar to dollar breaking there own economy 28 trill. would turn to 48 trill. US dollars that is such a huge number it could never work. That is why there is no way around a loop. I see them changing the dinar in Iraqi then looping just to get all of us holding currency a big screwing with out hurting there own people. I still see a 1 or 2 zero loop if not a 3 zero loop that is the only way the can start a strong economy with going bankrupt right off the get go. Dave
Monday, April 12th 2010 4:30 PM
Karbala, April 12 (Aknews) – Karbala sponsored today the first conference of Indian investors from the Bohras cult who offered to build huge hotels and tourist towers similar to the ones in the Gulf states,” head of Karbala investment commission Dr. Jalal Al-Hashemi said.
Jalal al-Hashemi
“Karbala hosted the investment conference of a hundred Indian investors from Bohras sect that have giant companies in India, UK, France and Arab countries like Saudi Arabia and United Arab Emirates, and they offered building huge hotels and towers like in the Arab Gulf states”.
Karbala Investment Commission signed today an understanding memorandum with investors to set up such projects, and it is waiting the local government to allocate lands for the companies to start working.
“The Iraqi investment law amended in the parliament facilitated the coming of the investors to Iraq, but the unstable security situation is still keeping many Arab and foreign investors away”, al-Hashemi said.
“Many Arab and foreign companies want to set up investment projects in Karbala, and many projects will be implemented soon, the main one is the Karbala banks projects of by Album Properties Company from UAE over an area estimated at 40 km west of Karbala.”
Karbala is 108 kilometres south-west of the Iraqi capital Baghdad…..
Non-oil growth prospects are good:)
That makes sense, Karbala is on the water….. a lake or small sea if I remember correctly.
Dave,
The RV would work both ways for Iraq. Yes, if it goes up, they will be paying for it. But, they can also purchase imported items and pay off debts at a much better ratio. The only down side is the initial wave of investors turning in their Dinars. After that, they will be doing just fine.
Don’t forget about the late bloomers who will buy into dinars after it R.Vs hoping it will go up more, they will have missed the boat for the most part, but trust me, they are out there.
Then again, that construction hasn’t broke ground yet, so we’re looking at a revalue in June…………………………………………….2013..haha
Adam, do you still have your cbi contact? If so, why arent we getting any intel?
Hi Adam,
I was just wondering if the announcement you mentioned would be coming soon.
Thanks!
Those who talking liar about the dinar please stitch your own mouth. no speculation, Dinar would’n increase @ RV another 10 yrs @ more
Dinar is valid only fur Iraqi,
No value for outside at all. no RV no everything…..
Hi Adam.
hope everything is well with you. It’s been awhile since the last news update. just wonder if there’s a new update coming up soon. thanks and keep up the good work.
st.
MORE GOOD NEWS ON ECONOMY FOR IRAQ.
Iraqi Oil: Oil Files with Kurdistan to be resolved soon
Wednesday, April 14th 2010 7:22 PM
Baghdad, April 14 (AKnews)- The problems of oil with the Kurdistan region are on their way to final solution, says a spokesman for the Iraqi Oil Ministry announced on Wednesday.
According to Assem Jihad, there are intensive efforts to end the suspended issues between the Federal Ministry of Oil and Kurdistan Government regarding the mechanism of oil exportation, oil fields and the region’s share of oil.
“The ministerial committee is currently studying the legal mechanisms that allow the province to export oil to Turkey, in addition to files the committees couldn’t resolve earlier.”
“The export of oil in Kurdistan to Turkey has an important economic benefit to Iraq”, Jihad added.
He outlined that “the Ministry is seeking to resolve all the files especially the rights of oil companies, the distribution of revenues, the estimation of quantities and the requirements of the export process.”
The Federal Ministry of Oil announced earlier that it was seeking to end the pendant files with Kurdistan Government through dialogue and understanding.
Sa/ae (AKnews)
So…Why did you leave us (LUCILLE) Adam ????What the heck is happening??????
Hi Adam Haven’t heard anything for a while just re reading peoples opinions don’t know whatto beleive or if anyone knows just have to wait and see is kinda fun though with this kinda thing people that know a lot about investments and finance really don’t know more than a guy like me who knows nothing I just keep hoping we are lucky enough to hit it big. Thank you for all the work you put into this.
No word in 9 days, did the NID RV and I was sleeping? Holding since 2005.
10 days and no new post from Adam. Any clue as to when he will post again?
Last comment was 4/12/10…why is everyone so quiet? Is there something going on that some of us are unaware of?
Hi adam, just wondering what everyone else. when will we heear the good news.?
Please forgive my ignorance, I am new to all this.
That being said….
I purchased 1,000,000 dinar. Was this a good thing or a bad thing?
From all I am reading it will be alot of work just to get my money back
argh
hey thank u adam u are the best,,, u know we all wish we can cash in soon,,,, keep us post it please…..again adam u are the best…