Phoenix Revamps Again

Well it seems that Phoenix has gone back to a nightly broadcast.  For those of you who don't know, he announced a couple of weeks ago that he was ending his nightly broadcast and was going to a weekly broadcast on Wednesday nights and wouldn't be talking much about the dinar.  Well that lasted less than a week because he came back fast and furious last week with more exciting information about the pending RV of the Iraqi dinar.  Among his revelations is his belief that Allawi, who has stepped down and is apparently retiring, was only in place to drag the process out until Iraq was ready to RV, and his absence now is an indicator that things are about to pop.  Then on Saturday night he revealed that new information has come his way that indicates that the new value might be closer to $3 rather than $1 as he has always contended.

As I have stated before I don't consider Phoenix a pumper since to my knowledge he has never received any compensation for his analysis on the dinar.  (And as he mentioned Saturday night he has even been considered a downer in the past when he was reporting many of the negative things happening in Iraq.)  I do consider him somewhat of a nutcase however, because of his constant references to metaphysical concepts and conspiratorial hogwash.  But it just could be that Iraq is ready to re-denominate and they might be opting for a combination RD/RV where the new value will be in the $3 range, giving investors a nice profit on their investment without violating all the rules of economics and common sense by increasing the value of their currency by a thousand or three thousand times.  This would accomplish several things. 

First, the Iraqi people (remember them?  they're the ones who actually use this currency to buy things) would be able to conduct business transactions without carrying around bills with 3 zeros, and would be able to make change much as we do with our dollar.  And second, the purchasing power would be increased by over 200% which would make it easier to purchase goods and services from foreigners.  It would be like increasing the value from $.000855 to $.003, or from less than a tenth of a penny to 3/10 of a penny.  Only they would have a new currency that would move the decimal place over 3 spaces to make the new value $3.  Meanwhile their money supply would contract from around 30 trillion dinar to around 30 billion dinar which would be much more manageable.  Investors who bought a million dinar at $.000855 would make two thousand dollars in profit and the large bills would be turned in to the federal reserve.  And third, it would help to combat the recent rise in inflation in Iraq.  In the past they have raised the value of the IQD to where it is now as a means of staving off hyperinflation, and Shabibi has indicated that he is prepared to do that again.  (Unfortunately many have misinterpreted what he said to mean that he's going to raise the value by 100,000% or more rather than 200% or 300%.)  I'm not saying that this is how it will play out, but it makes the most sense to me.  Everybody wins except for the gurus who have been promising everybody instant millionaire status, some of whom I suspect are going to find themselves in legal trouble.  And rightly so, the douchebags! 

While I'm sure that Phoenix isn't talking about an RD/RV I think this is what the information is actually saying.  Yes, the Iraqis have talked about removing the three zeros, and yes they have talked about increasing the value of the currency and bringing it back to where it used to be.  And since in my opinion there is no way to accomplish that with a straight up RV this is what I think they were referring to all along.  Whatever they do I do think they'll do it within the next 90 days.  I guess we'll just have to stay tuned to Gimme Shelter Radio to find out.