* Phoenix Email to Dinar Daddy 2/17/10
FEBRUARY 17, 2010 · POSTED IN CHATS / POSTS
TIDBIT: I don’t know about you guys, but I’m really loving the information Phoenix is sharing with us here at my site. Thank you Phoenix for imparting your knowledge and explanations here. They are both welcome and make sense. – DD
Dinar Daddy…I have been watching all of this talk of 34 trillion dinar + in circulation and all of the
false assumptions being made on this subject so I felt the need to respond.
I think what we are about to see is a novel event and a “hybrid re denomination” if you will.
I think we will see this combined with a revaluation.
So they will revalue the IQD at the same time as the removal of the zero notes and we will see a combination of a massive revaluation hand in hand with the re denomination done by having the lower denominations placed into circulation at the same time and over a short time remove the lower denoms.
Also people have attempted to back engineer this event with incorrect or missing data. It seems time and time again people confuse the actual currency in circulation with the M2 and you will even see lengthy rants on the M2 of Iraq.
Well the M2 is NOT the amount of physical currency in circulation but a combination of physical currency and electronic digits and deposits and not the true physical currency amount.
The actual physical currency amount of any nation is the M0 and NOT the M2 so most negative commentary on the future exchange rate of the Iraqi Dinar is based upon the wrong data set, the M2 and being so is flawed from the onset and therefore impossible to be true.
There has never been published anywhere that there was more than 9 trillion IQD ever printed.
And that 9 trillion was reported to be 14 denominations and of those 14 denominations, 5 have never been seen (lower denoms) and when they exchanged the old for the new only 4.5 trillion were placed into circulation.
The CBI Governor. said last fall in an interview that there was less than 4.5 trillion in circulation (M0) and that they were removing currency from circulation on a regular basis at that time.
So all of the talk of 35 trillion physical dinar in circulation is impossible.
But if we are talking about M2 then yes those high numbers are real but only as M2 and not M0 (physical currency).
There has never been any articles ever printed saying more dinar was ever printed above the first printing of 9 trillion of which a little over half of that amount was placed into circulation.
The true fact is that many of those false high numbers came for published M2 numbers. But what few know is that the M2 of any nations is not the physical currency in circulation. The M2 is a combination of physical and digital.
The true amount of currency in circulation is the M0 or (M Zero) and NOT the M2. So the number needed to back any accurate attempt as many have done is the M-0 (zero) and not the M-2.
Now here is the other problem, The actual M-0 (zero) of Iraq is classified and the evidence of it being classified can be found on the CBI site itself. The evidence of this is not an admission of this fact but the “omission” of facts.
You see there are no current and accurate accounting facts for the CBI that are open to the public as the only most recent accounting data is from 2008.
So all of the hard work by many has been falsely based upon incorrect or missing data. The reason for this missing data and hiding of facts is done as an attempt to stem speculation and confuse those who try in vain as many have to back engineer the data to come to any useable conclusion which as you can now see is not only futile but impossible.
So most all talk of these high numbers of IQD have all been based upon incomplete or missing data and also on the wrong data set (M2 instead of M0) and therefore cannot be correct in any way.
Hope that helps.