Breitling

We have new people getting into the dinar and they’re trying to learn what you and I learned a long long time ago.  The question is: “If there’s trillions notes in the hands of the Iraqi citizens…when the value increase wouldn’t the vast majority of Iraq’s citizens become instant millionaires?”  No.  Again, when the value of the dinar goes up in Iraq, remember everything is at a tenth of a penny, and when you go up to buy a coke or a candy bar it’s at a tenth of a penny.  So when it goes up a dollar, they are going to charge you a dollar for the coke…Services and goods are going to rise up with the value as the currency goes up.  But you and I don’t live in that world.  Why?  Because we bought the currency with the US dollar…They are not going to be instant millionaires overnight…That’s the difference. Iraqis did not exchange dollars for their dinar.

Bruce
DebTarHeelgirl