By Tom Cleveland, market analyst for Forex Traders, exclusively for Iraq Business News. Forextraders.com is an online resource for the foreign exchange market.
“Buy on the rumor, sell on the news” is a time-honored investment phrase that is oftentimes more confusing than the wisdom it attempts to impart. The meaning relates primarily to company securities that appreciate in expectation of a big news announcement. Early speculation drives ups the price, such that when the real announcement is made, most investors sell on the news to take their profits, often driving the price down, rather than up. “Pump and Dump” stock frauds also follow a similar scenario, but in this case, criminals benefit and investors lose.
A similar situation has been building for years, some say as many as eight years, surrounding the potential “revaluation” of the Iraqi Dinar. As the rumor would have it, the Iraqi economy has stabilized, and the potential for enormous foreign currency reserves from increased oil exports will drive the value of the Dinar to unconscious levels versus the U.S Dollar. The government authorities will be forced to revalue the currency from 1,175 to 3 per Dollar, resulting in an outrageous windfall for anyone owning stockpiles of the currency. Does something here sound a little too good to be true?
In actuality, the Iraqi Dinar, or “IQD”, is a “controlled” currency. The central bank of Iraq determines the exchange rate and must support that rate by maintaining adequate foreign currency reserves to handle capital flows across its borders. The IMF permits countries with a transitional economy to implement currency controls in order to stabilize their economy during its redevelopment phase. Presently, international banks will not accept the Dinar, and it is not traded on any forex exchange. Actual purchases can be made through currency dealers that have been authorized to buy and sell banknotes that are already in circulation.
Sounds about right. Mailmen, pizza cooks, gas station attendants, MLM devotees, penny stock pumpers. All are professions that I look towards first when looking for sound investment advice.
Tom ...Thank u for ur valuable analysis on this issue for pitty misled public like me who put a lot of our savings in this IQD
Well...! what u think will happen once the IQD are in market and normalized ... what we can get out of it any gain / loss or what...?
Jano. What do you mean "once the IQD are in market and normalized"?
The Iraq dinar has been out and "in the market" since October of 2003. So in nine months it will be 10 years "in the market". The Iraq Central Bank adjusted the rate of the dinar probably close to a hundred times in the first few years and recently adjusted it from 1170 to 1166. Their inflation rate has been single digits for years now. That would seem to be the perfect example of "normalized".
"once the IQD are in market and normalized" is a nonsensical statement made up by dinar pumpers who don't even have the most basic knowledge of currencies and how they work. They do it to make you and others believe some grand event is about to happen.
Invest in yourselves. Buy some coffee and an alarm clock and wake up
Hey stew i wonder when the pumpers will start hustling the syrian lira.
Hey six; I just saw your comments, and I laughed my ass off. The wake up comment was AWESOME!!! Can't stop laughing, it was so TRUE!!! P.T. Barnum, said there's a sucker born every minute, and man he wasn't lying!!! This scam has been pretty profitable for a lot of these slicksters who have ripped people off of their cash. They got so many of these rip off artists down South, it's unbelievable. The civil war confederate note is worth more than this Iraqi Dinar, and they were using that for toilet paper last time I heard. People, please be smart about your hard earned money. If this was going to happen, do you think they would be sharing this wealth with every swinging dick that came along?????
Omg!!!!!!!!!!!!!!!!
Hi ladies and gentleman,
I was a Dinar enthusiast but it all seemed to be too good to be true! so I only bought a small amount 9 years ago, yes yes ... what an idiot!! Oh well...As much as I wish it was not a scam I am facing the truth so I am here to ask you the following:
Has any one gone into a webside call http://www.dinarvets.com?
The head guy's name is Adam Montana who has created a infrastructure of services to HELP people how to cash the dinar when it hits! Brilliant!!!! he said all the time how great and good person he is because he has put together a team that can give the so much needed guidance to manage the HUGE fortune that is coming.
He prays on people dreams, ambitions and innocence to fulfill his own FORTUNE!!! He goes as far as to convince victims into purchasing offshore corporations to avoid capital gain taxes on the foreign currency exchange. He has thousands of people convinced that is the best way to do it and off course he can provide you with his services to open it for a FEE! The scam goes like this: After his team opens the offshore corp, they send you a document where the victim will donate the currency to the Seychelles corp so that when dinar hits the corporation does not have pay capital gain because is a offshore Corp, he said this transaction can NOT be done with a LLC because the USA government does not allow the currency to be donate it so a huge portion of the huge fortune will be lost to taxes and the scam goes on and on. Enough material a make a documentary on it.
I know for some of us this could be very funny but for those who have invested their life savings in it could meant suicide !
IS there anything we can do to expose him ?
Thank you
By the way I forgot the most important post:
Thank you Tom! for when I read your explanation: The government actually announced this “Drop Three Zeroes” project back in 2007, and at the time, the study was given the name of “Iraqi Currency Revaluation”. Therein lies the source of the confusion, perhaps from translation or from a loose usage of forex vernacular. A “redenomination” is not a “revaluation” under the strictest of interpretations of the terms.
I finally understand where this rumors started.
I got an alert that there was a new post here, but now that I'm here I don't see it, but I'll respond to it anyway:
"IS there anything we can do to expose him ? (Adam Montana)"
Report him to the FBIs internet fraud department. I'm no lawyer, but I don't see any difference between him charging 400 bucks a pop for access to "post RV investments" and what those BHG clowns were indicted for, part of which was charging 700 bucks a pop for access to a "post RV hedge fund". There may be a legal distinction, but there certainly isn't a moral one: he's a piece of garbage.
Adam Montana's real name is James Wolf. Before he got into dinar scamming he ran porn websites.
Sam did some good work on him here...
http://dinardouchebags.blogspot.com/2012/04/montana-trail-part-3.html
So if you read the link Carla you’ll see Montana/Wolf was exposed a long time ago.
Why officials are allowing scammers like him to continue to operate is beyond me. There has to be something about separation of pumping the scam and selling the currency. Seems you can do one but not the other. There are many that should be in jail, but one that really baffles me is how Dinar Daddy isn’t in cuffs. Dinar Daddy is Roger Dorman, he knowingly posts every lie there is about the dinar over and over on his web site while at the same time having huge ads to Currency Vault for buying dinar. Currency Vault just happens to owned by Angela Dorman, Rogers wife. Here’s a blatant case of husband and wife pumping lies about the dinar and then also selling it. Why the authorities haven’t gone after him yet I have no idea. I know the authorities are aware of him. When Bradford L. Huebner, Rudolph Coenen, Charles Emmenecker, and Michael Teadt got indicted for this scam they were getting their dinar through Currency Vault. So Roger Dorman was supplying dinar to guys that got indicted. How he walked away is puzzling.
Here’s a link to that…http://www.justice.gov/usao/ohn/news/2012/20septhueb.html
Wow.... and here I thought I was giving you breaking News!!, I am in shock! How do I brake some ones heart telling then all that? (I still have some much to read) They are going to have a nerves break down or our friendship will be over with.
Special thanks to Sam for uncovering that piece of garbage!!
Thank you Stew and Junkie.
Hey guys, maybe we need to open a website to help Adam Montana/James Wold's victims!
I will do my best to contact the authorities, if there is anything else you guys think of please let me know.
Carla
Hi Carla. If you're having trouble explaining it to people (which is perfectly normal on this subject!), try printing off posts like this:-
https://www.iraq-businessnews.com/2012/08/29/7-questions-for-dinar-speculators/comment-page-11/#comment-157698
Then scroll down to Dr. Keiferland's two excellent posts below it, and print those out too.
They explain the history of the Dinar, confusion over RV vs redenomination and show the absurd effect of an imaginary "RV" clearly : "If you make the Dinar 1,000x more valuable in real terms vs every other currency, then that’s exactly the same effect on global trade as if the Dinar remained stable and everyone else on the planet all devalued their currencies by 1,000x!"
All a 99,000% Iraqi "RV" would do is drive up the price of buying future Dinar for trade with Iraq by 1,000x fold, and also create a 1,000x fake split between Iraqi Dinar priced goods / services vs international prices (read examples in Dr. K's posts), resulting in a collapse in Iraq's export economy when no-one on the planet would pay $10,000 tomorrow for enough Dinars to buy a $10 "RV'd" Iraqi product that they can currently buy for $10 today (and could still buy "post-RV" for $10 from next-door Kuwait).
The only solution is a redenomination, which redenominates all prices & banknotes by 1:1000 to match the 1000:1 3-digit deletion, but won't make anyone rich. In truth, this is what Iraq have been saying all along. Some people just don't want to believe / hear / read it after being repeatedly told they'll be a millionaire for nothing by some people who know exactly what emotional "buttons" to push.
All I can say is do your best to patiently explain it, but if they don't want to know the truth, just accept that some people fall back on denial as a defence mechanism at not wanting to admit they've been had. People who've been sucked into this for 5-10 years now, are still waking up, so they may suddenly "get it" it 6-12 months time, when the "elephant in the room" eventually sinks in.
Have a good day.
Most dinaraholics easily explain that away by saying everything will be re-priced. What they believe is that prices/wages/services/imports/exports everything will be adjusted at the time of the RV. That’s what happens in a redenomination (lop), so dinar holders actually think a redenomination (lop) will happen, but somehow they don’t think the currency will get redominated, just RVd.
Couple of my favorite examples to show the absurdity of an RV.
1. Currently all the currency in the whole world combined has a value of about $6 trillion. Iraq has about 30 trillion dinar in circulation, so a 1:1 RV would mean Iraq has $30 trillion worth of dinar. Their currency would be worth 5 times more than the rest of the world all combined. Currency is generally used to support an economy. America has about 1/5 of the world economy, so they have about 1/5 of the world’s currency. Most countries are similar. Iraq under this absurd RV would have 6 times the rest of the world’s currency while they have an economy that is only about one tenth of one percent of the world’s economy.
2. If there was one single bit of truth to the claims that Iraq is telling us they are going to RV. (They are not, they are telling us they are going to lop) If that claim was true the dinar would already be trading/selling for near what the rumored RV rate would be. If I thought the dinar was going to be worth $1 in the near future I would be willing to give you 80 or 90 cents for it right now. People a lot smarter and with way way more money than I would do the same. Powerfull people and corporations would stomp all over us for a sure fire 10% gain. Demand for dinar would be through the roof under this scenario. It is not because it is a lie and a scam.
Hi Barry,
You are so kind in developing a way to help me come forward and are absolutely right! I am having a hard time, mix emotions. I have always suspected there was something wrong with this Adam but now that I really know..... how do I break the news, better yet I will be toss aside
( because no one is to get in the way) That is what hurts me the most. People like my friend are only reading all the lies and garbage from Mr. Dush Bag adam montana and they are in a state of trance, believing 150 % all the twisted lies.
Some times I feel so much anger, how can a dush bag like Adam be running loose! Do you know if this story has ever been on the TV News?
Barry thank you again, I have read your post several times, I am going to have to accept that elephant in the room” eventually sinks in"!
Dear Stew,
Great examples, you make me laugh...Thank good you don't know me personally because you will be unmerciful on me, 🙂 lol
Hey, the day dreaming I did for a small period of time brought me joy, lol..... All the shoes I could of bought!:(
I bed you Adan is the one adding zeros to his bank account! Dush bag!
Every dog has his day!
So to tell or not to tell?
to wait? or to take a chance to loose a friendship of 20 plus years?
Not easy!!
Have a great nite!
Stew most you always have the perfect made up names?
"dinaraholics" LOL
Coozbee, thanks for the shoutout!!
Carla... I would never give you a hard time. I think most of us here were at one time invested in the dinar. We all fell for the sales pitch.
That's why these guys keep predicting RVs a couple times a week. Newbies hear about the dinar and immediately are sucked into the "it's going to happen any day, so I better buy right now" mode. That's what happened to me. I bought dinar back in 2006. Even back then it was to RV at any time. I didn't have time to research it. So I bought in. After a few months of reading the same predictions over and over I soon became skeptical. So I started digging for facts. Once the money supply numbers where discovered and they showed Trillions of dinar in existence, I figured it had to be a scam. Just a little research into other countries and what their money supply numbers were showed that the Iraqi dinar was very fairly valued at about 1000:1. I started bringing up these facts to the "gurus" on the dinar boards and quickly found myself banned. All of the dinar boards banned anyone who brought up these facts. Dinar Daddy use to allow comments. He shut down comments on his board because of me and a couple other guys were upsetting his costumers.
Tell your friend you have sadly discovered the claim that the dinar is going to RV is a scam. Tell them that you no longer believe in the investment. They very well might not want to hear it, but your conscience will be cleared. When I bought dinar I told a few friends about it. a couple of them also bought in. When I discovered it was a scam I had to swallow my pride and tell them I been hoodwinked. I explained why it would never RV and told them I was selling and advised them to do the same. One of them still holds his dinar today. We are still friends though.
If your friend has questions and wants to come here and ask. I and a few others would be very happy to answer his/her questions without ridicule.
If they come here and shout at us how stupid we are and continue to push lies as facts... as a few here still do, they may not get such a warm welcome from all.
Hi Stew,
Your post was great!!! Thank you so much for your understanding. I have been reading a lot, my head is spinning.Among other docs I read your post on how the dinar RV took place 10 years ago...wow....lots to digest. I came cleaned and told my friend what I have learned and guess what? I was unable to change it.
Actually I was told that even the US government has invested in dinars uhg! I have done all I can do 🙁 so I am sure my friend will not contact anyone from this web side,if the light switch would of turn on....it would happened already.
Stew how do I go about selling my dinars?
Have a great day
Carla… here is a copy of the actual indictment against the 4 dinar dealers mentioned above. Might try showing this to your friend.
http://www.realscam.com/attachments/f12/1576d1348185792-bayshore-capital-investments-bh-group-bhgroup_indictment.pdf
Go to page 5. Item 15.
It states… “defendents often discussed during weekly conference calls with potential investor, the U.S. Department of Treasury holding the Iraqi dinar, further alleging the Department of Treasury held trillions of Iraqi dinar for investment purpose. In fact the Department of Treasury does not hold any dinar for investment purposes and holds only a nominal amount for use in daily transactions”
Item 14 is also worth reading. It talks about the lie the dealers keep telling about Executive Order 13303.
Some dealers will buy back dinar. Ebay is how I got rid of mine years ago, but they have fees also.
Thank God I found this article! I've only got $100 bucks in it and I'm not putting in any more!
Do have a question though, there was a post on The Currency NewsHound on Saturday talking about how the dinar was going to be worth $1.16 sometime in the future.
http://thecurrencynewshound.com/2013/07/13/finance-committee-job-study-reveals-an-future-exchange-rate-calculation/
How credible are these guys?
It could easily be worth 1.16 in the future. After they redenominate (lop).
Your 25,000 dinar note, worth about 22 bucks at 1166 to 1, is exchangeable for a 25 dinar note, worth about 22 bucks at 1.16 to 1.
gt5 they are not going to lop thats already been disproven get over it their going to a free float this is fact
Let me guess, rockinrich, you're a Kaperoni disciple? Virtually everything Kaperoni (and every other guru) has ever said about a lop is 100% provably false. His "Ten proofs they won't lop" or whatever he calls it is 100% either lies or misunderstandings. Of course you won't see that on the forum, because like all the other gurus, Kap has his mods delete any post that disagrees with him.
Speaking of Kap, is he really a pizza boy? Do you think members of the food service industry are the best people to get investment advice from?
The notion that all the references to "deleting/raising/lifting/etc three zeroes" is referring to a part of the RV process is ridiculous beyond words. Currency RVs of even one tenth of a percent are immensely guarded secrets, but Iraq has been telling the whole planet for 5 years that their currency is going up by 100,000%?
So no, a lop has not been "disproven". They may or may not lop, but here are some actual facts:
1. Any article referencing three zeroes is talking about a lop.
2. They may or may not go to a free float, but the notion of it going to a free float and then increasing to even 1 cent is nonsense, let alone the 10 cents to 3 dollars that all the gurus promise everyone.
3. Iraqs currency is worth what it is because they have "printed" 80 trillion (digital and paper) of it. Basic economics, and common sense. How much do you think Mickey Mantle rookie cards would be worth of there were billions of them floating around?
4. There is zero evidence that Iraq is, or is interested in, removing any of this currency from circulation. Another common guru lie. There's zero reason they would even want to, it simply doesn't make sense for Iraq unless their goal is to make money for foreign currency speculators, which it obviously isn't.
5. Even if that was their goal, it'd be impossible for them to knock even 50% off their M2, so hopes of a 1 cent RV are still nonsense.
believe what you want why dont you debate kap or ennorste on this subject on any of the threads on the site lets see whos right
Tell Kap I'm right here, ready at any time. When he declines, for the same reason he and his mods delete all dissent on his forum, maybe you can bring his 10 reasons it won't lop over here, so we can all have a laugh at how ignorant and misguided it is.
The parliamentary economic committee in Iraq has started to call for a redenomination as soon as possible. They feel that since Ch. VII has been removed that now is the time. They are now calling on the CBI to emplement the plan. Apparently in the next few days they will be meeting with the CBI to talk about this.
This is the same committe that put the hold on the lop/redenomination a while back. They have now changed their mind and feel the time is right. Problem is the CBI is now being run by Maliki and his pals. The old CBI managemant wanted to lop, not sure what the new CBI guys want. We should see soon.
Whatever they decide, there's no 100,000% RV going to happen. That's 100% a scam.
if that happens stew ill be the first to say i was wrong but i doubt it
Sorry to sound like a buffoon, but what does lop stand for?
Also, GT5junkie-Are you participating in GT Academy this time around? Love that game myself!
Since I was a previous owner and believer in the Dinar, I check the thread every now and again. I am amazed that there has been little change in the discussion over the years. I am also very happy with the return I made on my investment as I got out in 2009. I since went to Afghanistan and met many Iraq investors over there. It was prudent for me to keep my mouth shut but I was amazed at the amount of money some have put into this investment. For those who bought and still hold I hope there is a return on your money, I really do! I will not even be sad that I sold all of mine. I just know now that I have peace of mind and am not anxious for tomorrow.
A lop is just a slang term for currency redenomination. When countries redenominate their currency, it is almost always done by a factor of 10:1 or 100:1 or 1000:1 or 10000:1 or even up to 1000000000000:1 as Zimbabwe did. That’s where the terms remove zeros, raise zeros, lift zeros, drop zeros, or lop zeros come from. They all mean the same thing, redenomination. Lop just kinda stuck as the slang term for it.
and stew the notes hold their value example an old 1000 becomes a new 1 but still holds the value of 1000 if you dont believe me i can surely bring you an article that states it and its not from dinar alert
One would think that after making a statement like that proof would be given without having to be asked.
In any case, I would like to see that article.
heres from that article ted"“If they drop the zeros off the kwacha, the dollar value of that portion of the reserves will remain the same. It will not increase or decrease the Bank’s holding of kwachas.” and heres the link http://www.bdlive.co.za/world/africa/2012/11/25/zambia-zeroes-in-on-new-banknotes
Hold on. So you think ZAMBIA's currency is about to increase in value by 1000x? Are you joking? Yes, the old 1000 is worth the same as it was before, which is the same as the NEW 1 kwacha.
The dollar value of the RESERVES remain the same.
Did you completely miss this quote:
Ms Botha said that, at the broadest level, rebasing a currency did not alter the value or purchasing power of the currency.
You seem to be very confused.
I really don't get what you're trying to say here. The dollar value remains the same? That's what you're hoping for? To break even?
i just brought that in to state that even if they were to take off 3 zeros off the notes a 25 k note to a 25 dinar itd still be 25 k dinar but in iraq's case they are simply taking the 3 zero notes out of circulation not dropping off 3 zeros off of the note and they are also going to eventually be on a free float
Except they're not taking three zero notes out of circulation. Not sure why you believe ignorant gurus over what the CBI says.
sure they have there are many articles that state this iraq has beeen flooding the street with usd for awhile now
No, gurus say that. The CBI says the amount of dinar in circulation is increasing practically every month. Go to their website and look for yourself.
It's obvious you just believe everything Kaperoni tells you no matter how ridiculous and how there's no evidence for it, and no matter that it doesn't make any sense.
Maybe instead you should actually do some research for yourself and go to the CBIs website and see how the amount of dinar in circulation has been increasing practically nonstop for the last ten years.
if your talking about the auctions those are in usd not dinars if your talking about something else show me where? ill be heading to bed shortly so i might check with ya tomorrow
http://www.cbi.iq/index.php?pid=Statistics
Click on key financial indicators. If you don't have excel on your computer, you can use an iPhone or iPad or you can mail it to yourself via Gmail and use Gmails software to view it.
Here's the M1 numbers for the last 10 years (in billions, starting with 2004 and ending with April of 2013):
10,149
11,399
15,460
21,721
28,190
37,300
51,743
62,474
63,736
70,305
That's over 70 trillion in M1 money supply. M2 money supply is over 83 trillion.
All you're doing is believing (and then repeating) guru lies. The RV is never going to happen. Period. Anyone that understands economics and currencies knows this for a fact.
Sorry to interupt the heated debate, please people stop arguing with the facts, accept your losses and move on to building a promising future for the next generations . You fools with enough money to waste on lies and not enough education on how to wisely invest should not even deserve the money you have. Rounds on the house!
gt5 you mean billions not trillions i believe
No. 70,305 billion = 70.305 trillion.
how does 70 billion equal 70 trillion??
70,000 billion = 70 trillion. Do you not understand that?
but if they had that much in circulation surely they would have higher inflation than what they do
Too funny. The CBI has listed their money supply numbers like that on the internet for anyone to see for about 10 years now. Yet here's a big dinar supporter that's been invested and pumping for years and it's clear he either hasn't looked at Iraq's posted finacials, or if he has, he simply doesn't understand numbers so he can't figure it out.
Can you believe this guy is suppoesed to be one of the smart ones? He's looked at as a guru on some boards.