It seems every time things get heated up, the whole “it’s gonna lop” talkers show up again. Never mind how they discussed the currency would go up in increments just a day earlier. Countries that lop their currency are not exactly top of the food chain when it comes to economies. Let’s look at Turkey. In 2005, the Turkish Lira was worth 1,350,000 to $1 USD (sound familiar) before lopping off 6 zeros from the currency. Today, they have an outstanding .032 value to the USD. Let’s face it, economically speaking, Turkey isn’t even close to resources that Iraq has available. Turkey operates on an annual inflation rate of 72.31% compared to Iraq’s 4.99%. Does it look like lopping the currency helped inflation? Turkey is almost twice the population and land mass yet doesn’t come close to Iraq for oil exports. In fact, most of the oil that flows through their pipeline come from north Iraq and the Kurds. Turkey has much more service induced economy yet inflation runs rampant through the country because of instability in the regime. So this is a direct comparison as to why Iraq can’t lop their country. They have aspirations and promises to the world and their people that they will return to leadership of economic growth in the middle east. They can’t settle for allowing their currency to be worth nothing while standing on the world stage and claiming they have the potential to reclaim their countries dignity and power. I fully expect the currency of Iraq to go up and yes, be replaced by smaller currencies as they larger notes are destroyed and the note count will shrink. And like the dollar, I expect there to be fluctuations up or down on the value daily as things settle down. So yes it will go up in increments, but that doesn’t mean there won’t be an adjustment first to establish the currency back towards the value that is deserved for the resources and backing that they can support.
