[Response to Breitling post below.] To strictly say the sole reason they added the three zeros to the Iraqi dinar is policy based inflation is not accurate. Yes, it was the central bank of Iraq that devalued the currency…[and] added the 3 zeros…The first gulf war you can see what the inflation rates were. 1991 – 180%. That’s really high. ’92 – 83%. ’93 – 207%. 1994 – 448%. 1995 – 387%. When you average all these thing up, by the time we got into re-denomanating the currency and the new Iraqi dinars were created getting away from the Saddam notes and Swiss dinar to the currency we have today all these things contributed to it. Hyperinflation, mismanagement, all those things played a key part. So there is no one thing that happened.
Breitling The threat of a lop is still the same as when I got into this investment…The lop question is based on hyper-inflation …verses policy inflation. The Iraqi dinar is stable. It goes up, it goes down but it’s not major like what Zimbabwe and these countries where it was massive inflation. No body could control it. Iraq has complete control of the Iraqi dinar …The Iraqi dinar is a completely different ballgame. It’s not hyper-inflated because of the markets. Iraq doesn’t have a customer problem…production problem. Iraq has a policy issue. The people at the top know what they are doing.
