FOUND THIS ON DV Posted by "wavggg "

FOUND THIS ON DV Posted by "wavggg "

Modern Money Mechanics - Dinar Chapter Dinar will revalue within Int'l Banking rules


I hope this will help some of you understand how the Central Bank of Iraq can pull off a revaluation without a re-denomination (LOP) and do it totally within the guidelines and framework of modern international fiat currency rules.

If you are not familiar with how the Federal Reserve, Bank of England, and all the other world Central Banks create currency, it is based on fractionalization of currency "In Reserve". This creates what you hear in the news as the M1, M2 and M3 money supplies. First, almost no international currencies are based on Value (gold, silver, oil, etc.) - Rather, they are based on Debt (promises to pay, BoE's, exclusive contracts between a nation and a central bank, etc.). These paper bills are Promissory Notes representing a Nation's debt to its Central Bank, from which it "borrows at interest" the funds to print as currency. The money is made out of thin air and valuable only because people believe they can exchange it for goods and services... It does forever make a nation a debtor to a private bank cartel, but that discussion is for another day. It's just how it rolls in the 21st century. If this money is based on anything at all, it is the good faith, hard work and industry of the people of the nation and their willingness/ability to pay the debt and interest.

The way it works in the US is: M1 is the original "real" assets on hand at the Central and franchise banks, or first generation money. The bank then is allowed to create new M2 money in the form of loans and notes at a rate of 10:1 of the M1 reserves. Then, the M2 supplies are further fractionalized through derivatives, bundled loans and bonds and becomes the M3 supply. So, exponentially, $1 M1 reserve becomes $100 M2 and then $1,000 M3 money.

Thus, one can see how Iraq has quite enough people, resources and debt to create a large, viable M1, M2 & M3 supply, or even better, establish a new valuation ratio of their post 2003 currency to be on par with the Euro and Dollar. - See, the same cartel that controls the Fed and Bank of England, also control the Central Bank of Iraq... Do you think for a minute that they do not want to become even more insanely wealthy and continue to rule the world? We on the outside hold a tiny fraction of Dinar. We will advance along with them BY ACCIDENT. They can't afford to cut off their nose to spite their face.

Google Search and read "Modern Money Mechanics A Workbook on Bank Reserves and Deposit Expansion", published by the Federal Reserve Bank of Chicago. In it, you will fine a great education on what money really is - (which is nothing like what mom & dad taught us...) I'm posting some quotes below to give you an idea...

Quote 1 -
What Makes Money Valuable?

In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bii is just a piece of paper, deposits merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face value.

What, then, makes these instruments - checks, paper money, and coins - acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and for real goods and services whenever they choose to do so.

Quote 2 -
Who Creates Money?
Changes in the quantity of money may originate with actions of the Federal Reserve System (the central bank), depository institutions (principally commercial banks), or the public. The major control, however, rests with the central bank.

The actual process of money creation takes place primarily in banks.' As noted earlier, checkable liabilities of banks are money. These liabilities are customers' accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers' accounts. In the absence of legal reserve requirements, banks can build up deposits by increasing loans and investments so long as they keep enough currency on hand to redeem whatever amounts the holders of deposits want to convert into currency. This unique attribute of the banking business was discovered many centuries ago.

It started with goldsmiths. As early bankers, they initially provided safekeeping services, making a profit from vault storage fees for gold and coins deposited with them. People would redeem their "deposit receipts" whenever they needed gold or coins to purchase something, and physically take the gold or coins to the seller who, in turn, would deposit them for safekeeping, often with the same banker. Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts, which became known as notes, were acceptable as money since whoever held them could go to the banker and exchange them for metallic money.

Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. Enough metallic money had to be kept on hand, of course, to redeem whatever volume of notes was presented for payment. Transaction deposits are the modem counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could "spend" by writing checks, thereby "printing" their own money.

Quote 3 -
What Iimits the Amount of Money Banks Can Create?

If deposit money can be created so easily, what is to prevent banks from making too much - more than sufficient to keep the nation's productive resources fully employed without price inflation? Like its predecessor, the modem bank must keep available, to make payment on demand, a considerable amount of currency and funds on deposit with the central bank. The bank must be prepared to convert deposit money into currency for those depositors who request currency. It must make remittance on checks written by depositors and presented for payment by other banks (settle adverse clearings). Finally, it must maintain legally required reserves, in the form of vault cash and/or balances at its Federal Reserve Bank, equal to a prescribed percentage of its deposits.

The public's demand for currency varies greatly, but generally follows a seasonal pattern that is quite predictable. The effects on bank funds of these variations in the amount of currency held by the public usually are offset by the central bank, which replaces the reserves absorbed by currency withdrawals from banks. Oust how this is done will be explained later.) For all banks taken together, there is no net drain of funds through clearings. A check drawn on one bank normally will be deposited to the credit of another account, if not in the same bank, then in some other bank.

HOPE THIS HELPS!

GO RV!

gg

gg

Makes me wonder if this is not the old Dinar poster "GrooveGal," GG, Just a thought, and I may have spelled her name wrong but that is how I remember her spelling it, she used to make some very interesting posts in years past but has kind of disappeared, as far as I know, in the last year or so.

Hope it is her, I used to like her stuff.