kuyu
Feb 9, 2004, 09:34 AM
The new Iraqi dinars are going to be backed by US dollars. This is funny, as our dollars are fiat money. This means that Iraq uses a monopolistic, commodity system backed by foriegn fiat money!
I guess their economy is now officially tied to ours. This may be a smart move though, as there is a negative incentive for retribution by Iraqi bathist radicals on American soil. Also, this may spur investment in the fledgling nation, as investors will feel more confident knowing their dinars are backed one for one with dollars.
Any thoughts....
I guess their economy is now officially tied to ours. This may be a smart move though, as there is a negative incentive for retribution by Iraqi bathist radicals on American soil. Also, this may spur investment in the fledgling nation, as investors will feel more confident knowing their dinars are backed one for one with dollars.
Any thoughts....
