By John Lee.
We get many enquiries at Iraq Business News relating to the future of the Iraqi dinar (IQD), for example:
- Will the Iraqi dinar increase in value?
- Will the currency be re-denominated, dropping the 'three zeros'?
- Is it wise to buy Iraqi dinar?
Firstly, Iraq Business News is not in a position to give investment advice. Our mission is to provide our readers with the highest quality information on the business and economy of Iraq.
As the value of the Iraqi dinar affects trade, we will continue to report on any possible re-valuations and/or redenominations as soon as information is available.
We hope that this information will be useful to the key decision-makers in Iraqi business, and to all who are interested in the development of the country; gamblers and people involved in get-rich-quick schemes/scams are not our target readership.
It's clear from the correspondence we receive that some people, who like to think of themselves as 'investors', genuinely believe that at the stroke of a pen they will make a 1,000-fold return on their purchase of dinars.
Those people might like to consider some questions before putting any further funds at risk: Read more ...
WOW!!!..What am I going to report back to all the long term players in all of this...some with 2 or 3 times the gains that they've made, as per long term holdings in their Dinars, the ISX/Iraqi Stock Exchange, Warka Bank Accounts, etc...I just can't imagine how these 7 questions could scare then NOW!...It was much worse over in Iraq when a lot of these good returns were being made...and then they stuck the rate of the Dinar for the last appx. 3 years...while everything in the U.S. for the most part...has TANKED!....While Trillions of dollars in oil development & infrastructure moved into Iraq as it stabilized, as they've been rated the top growth economy in the world as per the CIA World Factbook, not to mention so much more that could'nt even be written on a few pages!..From what I'm seeing here and with a lot of the media...is that they tell you what is good, while it is actually bad...but yet they will tell us that something is bad...whle it's actually been good...Wow...I'm loving taking the opposite advice...I/we, just may need to take the opposite advice more often!...lol...Furthermore, until the final bell has been rung as per the finality of this thing, what's the gripe, especially if your losing in everything else...and hey, who in their right mind would spend the time to tear down something that has'nt been proven, or YET...why not just show us your own investments that are better, that you surely must know about, as you would most certainly have to spend just as much time studying a winner, so that we can leave this and follow you to it...as per being our winner too...(IF YOU TOOK THE TIME TO WARN US...DONT NEGLECT US...GIVE UP THE PRIVATE GANGBUSTER INVESTMENT YOU HOLD).....For anyone to have all of the time in the world to worry so much over this...PLEASE...WE JUST GOTTA KNOW YOUR WINNING STRATEGY SECRETS TOO...AS PER WHAT IS THE BEST..OR BETTER THAN THIS...IF YOU CAN'T...THEN DONT TRY TO DISCOURAGE OUR WINNINGS SO FAR...PERIOD!!! For what is worth...
P.S. There are some that actually want to buy your/our dinars back...the spread is about the same both ways...coming or going, buying or selling...(I"M HOLDING..SORRY...YOU CANT HAVE MINE)...
IS STUFF LIKE THIS, POSSIBLY WHY SOME OWN DINARS?...OR MAYBE A REASON THAT THEY'RE "NOT" SCARED TO HOLD SOME?......
The National Budget CAN’T be Balanced
July 2012
To solve the national budget problem, we’ll have to raise taxes by 50% or shut down the federal government.
As I’ve been telling people for five years, “what can’t be paid, won’t be paid.” The national debt can’t be paid. It is mathematically impossible. Those of you who continue to hold U.S. Treasuries or virtually any other paper debt instrument are going to lose your assets.
My only objection to the following video is that it’s based on the government’s claim that the current National Debt is only $16 trillion. Credible sources estimate that debt to actually be anywhere from $50 to $500 trillion. I’m inclined to accept John Williams’ (shadowstats.com) estimate of about $80 trillion.
If, as the video below claims, even the $16 trillion National Debt can’t be paid, then an $80 trillion National Debt is even more impossible to pay and more certain to cause catastrophe. Until we reach the catastrophe, the national budget can’t possibly be balanced.
Other than the claim that debt is only $16 trillion, this video’s analysis of our national debt and national budget is short, easy to understand and brilliant.
video 00:05:37
http://www.youtube-n...5IdwltaAc?rel=0
I've pointed that out a number of times Dr.
Thousands of times we’ve heard people say Iraq’s dinar should be worth what Kuwait’s dinar is.
Again for the record.
Kuwait has 1.2 BILLION dinar in circulation.
Iraq has 30 Trillion dinar in circulation.
That’s 25000 times more dinar than Kuwait. 2,500,000% more.
If you look at the value of that currency.
Kuwait has 1.2 billion dinar worth $3.55 each, or $4.26 billion in currency.
Iraq has 30 Trillion dinar worth $.00086 each, or $25.8 billion in currency.
So Iraq's dinar at this time is 6 times more valuable than Kuwait's dinar.
LOL…Iraq would have to DEVAUE the dinar by 6 times to make it equal to the Kuwaiti dinar.
Bloomberg: Banking on Iraq's future. This report states that Iraq presents a great investment opportunity. This is not about the IQD exchange rate, this is only generally addressing the recovery and opportunites the country has to offer. Very positive report. http://cdn.videos.bloomberg.com/prbjFyNTpbfMpYLGDH11TOV10VNCM-WQ/DOcJ-FxaFrRg4gtGIwOmw3OjBrOzSgXP
4aprofit: WOW!!!..What am I going to report back to all the long term players in all of this. Some with 2 or 3 times the gains that they've made, as per long term holdings in their Dinars, the ISX/Iraqi Stock Exchange, Warka Bank Accounts, etc...I just can't imagine how these 7 questions could scare then NOW!. It was much worse over in Iraq when a lot of these good returns were being made...and then they stuck the rate of the Dinar for the last appx. 3 years...while everything in the U.S. for the most part...has TANKED!. While Trillions of dollars in oil development & infrastructure moved into Iraq as it stabilized, as they've been rated the top growth economy in the world as per the CIA World Factbook, not to mention so much more that could'nt even be written on a few pages!..From what I'm seeing here and with a lot of the media...is that they tell you what is good, while it is actually bad...but yet they will tell us that something is bad...whle it's actually been good...Wow...I'm loving taking the opposite advice...I/we, just may need to take the opposite advice more often!...lol...Furthermore, until the final bell has been rung as per the finality of this thing, what's the gripe, especially if your losing in everything else...and hey, who in their right mind would spend the time to tear down something that has'nt been proven, or YET...why not just show us your own investments that are better, that you surely must know about, as you would most certainly have to spend just as much time studying a winner, so that we can leave this and follow you to it...as per being our winner too...(IF YOU TOOK THE TIME TO WARN US...DONT NEGLECT US...GIVE UP THE PRIVATE GANGBUSTER INVESTMENT YOU HOLD).....For anyone to have all of the time in the world to worry so much over this...PLEASE...WE JUST GOTTA KNOW YOUR WINNING STRATEGY SECRETS TOO...AS PER WHAT IS THE BEST..OR BETTER THAN THIS...IF YOU CAN'T...THEN DONT TRY TO DISCOURAGE OUR WINNINGS SO FAR...PERIOD!!! For what is worth. P.S. There are some that actually want to buy your/our dinars back...the spread is about the same both ways...coming or going, buying or selling...(I"M HOLDING..SORRY...YOU CANT HAVE MINE).
SW… yesterday you were promoting PEP, an idea crafted by Jeffrey Frankel from Harvard.
Here’s something Jeffrey Frankel said about dinar investors during an interview years ago.
“Jeffrey Frankel, a Harvard economics professor… he says. “I get the feeling that all these people doing this shouldn’t be. They’re little people, they don’t know what they’re doing, and they’re going to lose a lot of money.” “
Actually it was 9 questions
1. If the dinar becomes 1,000 times more valuable, it will become 1,000 times more expensive to do business in Iraq. Do you think this would be sustainable? Good question has there been any other war torn country increase the value of the currency?
2. Would you buy dinars at 1,000 times the current price? I’ve made the inventment, buy low sell high. Have you?
3. Dinar If not, why do you expect someone to buy your dinars at 1,000 times what you paid for them? There is always someone buying look at EBay.
4. If there was any possibility of a 1,000x revaluation, would dinar sellers be so keen to sell their stock to you? They will make money coming, going and they have some on the side. Wouldn’t you?
5. Is it possible that they think their mark-up is the best profit they can make?
6. Many investment professionals promote their ideas and “talk their book”. Why has no accomplished investor promoted the idea of massive gains from the dinar? Do your reach the Dinar has gone up and will continue as long as the black gold keeps being pumped.
7. The 1,000x rumor has been circulating for many years, but the forex markets have not reacted by driving up dinar prices significantly. On what basis do you believe you’re more “in the know” than the market? I’m not saying that I do, what proof can be provide to state it’s not?
8. Does scepticism of massive gains from the dinar make you angry? If so, and if you think you’re going to make 1,000 times your money, what is the reason for your anger? No that’s not what angers he. It’s how slow things move it government. Choose a direction and go for it, not study after study. I’m studied out…
9. Do you seek information that confirms your opinion, and dismiss information that challenges your opinion? Read the facts and laugh at the Rumor.
Stew, a PEP is one of many possible scenarios. Another option would be for the monetary policy to target a basket of basic mineral and agricultural commodities. A broad-based commodity standard and not just limited to a single commodity such as gold which would help average out fluctuations. As Bloomberg said in the video I provided: "Iraq is a great opportunity for investment. They have a quickly growing GDP, a quickly growing market and there's a great deal of growth in Iraq and we think the market will reflect that. Iraq is in a strategic location and as American investors, we should be looking to put money and resources there. Iraq still needs work but there are many sectors where there are incredible opportunities. Iraq is working through issues with the ISX as well and making progress." This statement is from Bloomberg, so if you have issues with their findings you will have to take it up with them. DMCC (the leading commodity and currency derivatives exchange in the ME, with electronic trading accessible from anywhere in the world) just recently reported that the IQD has attracted their attention and they are looking forward to the inclusion of the IQD (along with other currencies) into the global commodities exchange market. This article of course does not reference the mechanisms by which Iraq will achieve making the IQD a more convertible currency (RI, RD, RV etc.) but the fact that the IQD (among others) is on their radar as a currency that will add more "volume and value" in trades is an encouraging sign. Overall, I think we can all agree that Iraq is a country worth investing in and while we all recognize that there is no precedence for a 100,000% large currency appreciation "shock" at once, there is a good chance we will prosper over time. Investors who got in early have already seen profits. In my opinion there are far more risky financial endeavors than holding onto the IQD (I'm certainly doing far better than those holding Facebook stock). As with any investment, we cannot prove what the future holds and if it was possible to provide such luminous evidence there would be a serious problem with the process. This is just my opinion, which may or may not be correct.
Stew.....
where did u get Kuwait has 1.2 Billion dinar / $4.25 billion is currency? LOL!
From CIA Factbook :
Stock of narrow money:
$23.8 billion (31 December 2011 est.) <========
country comparison to the world: 62
$20.05 billion (31 December 2010 est.)
Stock of broad money:
$99.89 billion (31 December 2011 est.) <=======
country comparison to the world: 54
$91.35 billion (31 December 2010 est.)
I never said I have a problem with the Bloomberg article. It has nothing to do with the exchnage rate of the dinar. A country can have explosive economic growth and the currency can remain stable or even drop in value.
The DMCC article you reference. I notice you didn't bring up this line from the article.
"Iraqi dinar has caught his attention because of the confirmation coming from the CBI that the zeros will be deleted from the Iraqi currency and that proposal was passed by the House of Minister."
That’s a lop/redenomination. Unless you believe the Iraqi government is pre-announcing to the world they will increase the value of the dinar 100,000% percent in the near future. Giving anyone with a few bucks in their pocket a chance to become a millionaire soon. And while they are pre-announcing this glorious event, the street value of the dinar continues to sink in Iraq. They can’t even get the street value back up to the official value. Amazing for a currency that will RV 100,000% in the near future.
Is that what you believe? If not then what does delete 3 zeros from the currency mean to you?
Stew,
Iraqs Foreign reserves are held at the Fed in New York.
You are correct that the current currency regime is pegged to the US dollar but this could be changed.. Most regimes never fully follow the pegged regimes guidelines. Im expecting Iraq to back their currency with AU in the future. Iraq's current rate is false. Why? I don't believe the CBIs financials at all. They have been reducing the money supply and the rate does not reflect this
Hard to trust this news agency since the owners and partners work for the Gov of Iraq. Very hard to be impartial
Zul
That 30 billion is Kuwaits M2 amount. Not currency in circulation. The number is on the Kuwait central bank website.
Iraq's M2 amount is 72 Trillion.
Iraq has 2400 times more M2 than Kuwait.
Doesn't it make sense that the exchange rate would be about 2400 times lower?
I didn't talk about M2 because pumpers/gurus ignore the 72 trilllion m2 number. they only talk about currency in circ.
Pat… you have fallen for the pumper lie that they are reducing the money supply. Yes they are buying back large amounts of dinar at the auctions. But the gov turns it right around and puts it and more right back into the system. The CBI even states on their website that all redeemed currency (that means bought back) is accounted for in the reported figures.
Also. Iraq has had a near 100 trillion dinar budget for years now. It was reported that 80% of their budget is in dinars, so they are putting 80 Trillion dinar a year into the system. Gurus only talk about what’s being bought back. They ignore what’s being put into the system.
Another question. If Iraq were really announcing a soon to be HUGE RV on the dinar. Who in their right mind would be selling them back at the current rate?
Stew 😀
The $23.8 Billion is Kuwait's narrow money. Narrow money in US is classified as M1.
According to investopedia : Definition of 'Narrow Money'
A category of money supply that includes all physical money like coins and currency along with demand deposits and other liquid assets held by the central bank. In the United States narrow money is classified as M1 (M0 + demand accounts), while in the U.K. M0 is referenced as narrow money.
Read more: http://www.investopedia.com/terms/n/narrowmoney.asp#ixzz253DfoLyC
Zul
These are Kuwait reported numbers.
http://www.cbk.gov.kw/cbkweb/servlet/cbkmain?Action=mtbl&archive=201207&tbl=RM02
Currency in circ, 1.047B
M1= 6.8B
m2=28.2B
What ever number you want to use, it doesn't matter. They are all in the billions. Iraqs numbers are all in the trillions. That is a difference of Thousands and explains perfectly why there is a difference of thousands in the exchnage rate.
Enorrste: "This is sustainable because the current rate of the dinar in Iraq is artificially low. The rate was $3.50 during and prior to the Saddam Hussein regime. It was lowered intentionally by the UN in order to drive out the profitability of terrorism."
If you have a link to this I'd love to see it. If you're referring to Hugh Tant's recollection I believe he used the word "devalued" when he meant that it depreciated as the context indicates. In other words market forces drove the value down, not a UN decree. The CBI website says the ratio was 3000:1 in 1995. I've published a story from 1993 that talked about hyperinflation in Iraq in 1993. The value is what it is as a result of sanctions, overprinting, and war and not because of any war strategy.
M1 Kuwait = 6.8 Billion KWD x 3.55 = 23.8 Billion USD.
M1 Iraq = 30 trillion IQD x 0.00086 = 25.8 Billion USD
That looks just about right. M1 with M1. U were wrong when you compared 1.2 Billion KWD with 30 trillion IQD. You could be wrong else where too. Just saying.........Peace.
Sam I am, Hi...
A sanction is a war strategy. Disabled them financially. JMO.
So again, no one has addressed the issue of big 4 banks handing out bank accounts specifically for the IQD speculation. I would assume that if the revalue is a known scam it would be illegal for banks to offer such accounts. Secondly the Iraq Defense Fund was also reflecting oil revenues for the month to the tune of 9.5 billion alone in April. Just the oil. Then you see stacks of gold in an article from kurdistan. Again, perhaps I am a dense investor who knows nothing about macroeconomics, yet when you add all of Iraqs assets it most assuredly is greater than the USD. While our gold coffers nearly empty, our gdp is an embarassment, our debt is off the charts. The current value of the dollar looms at .82¢compared to stronger nations partial thanks to the federal reserve hyperinflating the dollar with every qe3. Forget the federal reserve, the IMF and world bank runs the show. Iraq has contractual obligations to fulfil with the US and IMF. Look at the list that offered debt forgiveness or monitary relief to Iraq to help expand...esp in these Paris Club agreements. Japan, China, why? China is sending a delegation to Iraq to invest. Back in 2008 Citibank stated in a "Doing buisness in Iraq" investors guide, "In 2008 the Iraqi Dinar sharply appreciated but is currently being managed at the current rate". The information is out there, but most would rather banter than do the leg work.
Zul
"M1 Kuwait = 6.8 Billion KWD x 3.55 = 23.8 Billion USD."
"M1 Iraq = 30 trillion IQD x 0.00086 = 25.8 Billion USD"
No that is not correct. the last time I saw Iraqs M1 number was about 60 trillion.
My intial comparison of Kuwait currency in circ of 1.2 billion and Iraqs currency in circ of 30 Trillion is correct and valid.
Those are correct numbers.
I do admit that the better comparison is the M2 numbers, which I also did.
here`s something to ponder the world bank stated the IRAQ HAD INSURMOUNTABLE WEALTH! SO I TOOK THE $85 A BARREL that they said is their price i X`S that by the 3 million they say that they`re punping a day comes to 255 billion a day i then X`S that by 5 day`s that came to 1 trillion 275 billion then just for $#!t`s and grins i X`s THAT by 365 day`s my calculator said OUT OF RANGE!! so for all that say IRAQ CAN`T AFFORD A HIGH RATE LOOKS LIKE THAY GOT THE MONEY!!
I have spent my adult life studying, teaching, and selling investments, economics, and their strategies for 38 years. I have taken courses in analyzing the back ground of investments and their viability. My journey has taken me to research mega investments that required "wrappers" which did not allow me room for error. I have also applied these same principles to this currency and history.
Sorry to say the author of this article is so off base I am embarrassed for him. This sounds like so many that have already been in print that gloss over the possibility of this event which has happened more than once in history; however, back then no Internet to allow the common man a heads up, so only the rich and connected were able to take advantage of past quiet historical events.
It is apparent this author totally ignores the words from Governor Shabibi, PM Maliki, the IMF, the UN, the World Bank, the WTO, Middle East countries and their Central Banks, and many Central Banks of Europe. Even my banks know of the revaluation of the Iraqi Dinar and Vietnam Dong. The forest is on fire with this coming event, yet some cannot see a forest blaze because they are on the other side of planet earth.
Sorry to have been so harsh, but I am sick and tired of individuals who do not bother to do their homework. I could have said more, I choose not to, my point is clear enough.
2 collect... your math is just a little off. Like by a factor of 1000.
$85 a barrel x 3 million a day is $255 Million, not billion. $255M x 365 days is $93 billion a year.
I don't think that even covers Iraq's budget. They are running a budget deficit every year. They don't have an extra penny.
Much damage has been done by brokers and dealers commission hiring these liars who call themselves "gurus" who devoted themselves to distort the information about Iraq. The intension is obvious, defrauding his followers, and have done and it seems that there are still two or three that still believe. The only thing that came to my mind whenever I read the crap from these scammers was, if this were true of the alleged revaluation of the Iraqi dinar, that U.S. does not speak clearly to his people? OH!! I forgot, that the rich do not want the poor to be rich, yeah right! apart from this big lie several of the biggest lies of these charlatans was the comparison on Kuwait and Executive Order 130333 and the biggest lie was that Iraq dinars were a godsend. With this three was nothing more that those who read it know that it's a fraudulent scheme to promote sales and purchases that is what has kept his pocket full. Most surprising of all is that some believe with most of the crap they read of these supposed "gurus" that they are few experts in the field, that shame not have realized that they really are experts in maintaining adrenaline of their victims up to be served as a springboard for other victims. Remember, no sales may have also purchases and if no purchases and sales may not have liquidity. In addition, the exhortations to do different countries to invest in Iraq because this fertile, not buying dinars to eventually turn it into a millionaire, that's a big fallacy. That's not the kind of investment to which they refer. Stew Congratulations, you are one of the few people who know about the subject of their writing. With each answer you knocks the opponent. Obviously, not opponent, rather try to maintain credibility in some unwary, it is very sad that at this stage still continue to believe in elves.
Chris - "So again, no one has addressed the issue of big 4 banks handing out bank accounts specifically for the IQD speculation. I would assume that if the revalue is a known scam it would be illegal for banks to offer such accounts"
Chris, it's not illegal in any country to simply open up a bank account with a zero balance. They certainly aren't "handing Forex accounts out out" in the sense of advertising them as part of any "RV" get-rich-quick proceeds stash. It's the pumpers doing that - not the banks themselves.
Chris - "The current value of the dollar looms at .82¢compared to stronger nations partial thanks to the federal reserve hyperinflating the dollar with every qe3"
Just like Iraq has done on an ever larger scale when it printed tens of trillions of Dinar (from tens of billions of Dinar) causing the currency to collapse to below 1000:1 way back in the 90's before even the Kosovo war?...
The Federal Reserve could print a jaw-dropping $650tn (enough to clear the $16tn national debt 40x over and clear all total $123tn unfunded US liabilities 5x over) and the USA would still have fewer $ in circulation per American than Iraq has Dinars per Iraqi today... Now that's real perspective!
Stew, go take a peek at the Iraqi Defense Funds pdf files for each month. Iraq is still under chapter 7. The money is placed in a cauffer then an ammount is destributed back to Iraq. They do not have full control of their monetary assets as of yet. So their budgets are under the microscope of the IMF as well as US. So when you hear someone say it is out of Iraqs hands they are partially correct when they say its in Iraqs hands they are partially correct. Goals have to be met, political and financial, (so that would be Iraqs part) in order for IMF and World Bank to make their move (the out of Iraqs hands portion). Thus why Iraq was given an additional stand by agreement time of 7 months starting in August 2012.
Bary I have a bank account from an actual bank that was opened specifically for the dinar investment. I am new to this investment and am not a guru. I like your responses though.
Stew: "2 collect… your math is just a little off. Like by a factor of 1000. $85 a barrel x 3 million a day is $255 Million, not billion. $255M x 365 days is $93 billion a year. I don’t think that even covers Iraq’s budget. They are running a budget deficit every year. They don’t have an extra penny."
Like I said earlier Stew, the number of "investors" with sub-5th grade maths skills can't even tell 1m from 1bn is a serious eye opener...
--
10urout : "It is apparent this author totally ignores the words from Governor Shabibi, PM Maliki, the IMF, the UN, the World Bank, the WTO, Middle East countries and their Central Banks, and many Central Banks of Europe."
Yeah - words from Shabibi & Maliki like these...
https://www.iraq-businessnews.com/2012/08/29/7-questions-for-dinar-speculators/comment-page-1/#comment-112764
LOL. You need to ask for a refund on those courses you attended if you don't understand what "the exchange rate between the new banknotes and the old ones would be 1:1,000" means... 😉
Bary I have a bank account from an actual bank that was opened specifically for the dinar investment not a forex account. I am new to this investment and am not a guru, I just believe in researching where your money is going. I like your responses though.
"Bary I have a bank account from an actual bank that was opened specifically for the dinar investment."
I don't doubt that you do Chris (and thanks for your comment). But that's no different to the fact you can open a bank account in Moscow speculating on the Ruble, a bank account in London speculating on the GBP, etc. The mere existence of Forex accounts no different to 180-odd other countries isn't really proof of anything. I have Forex trading accounts (professional ones that deal in "pips" and not just amateur Dinar ones that sell banknotes with ripoff +20% spreads and tell you to open an account for "your 1,000x winnings") 😉
10urout says:
August 30, 2012 at 7:56 pmSorry to say the author of this article is so off base I am embarrassed for him. This sounds like so many that have already been in print that gloss over the possibility of this event which has happened more than once in history; however, back then no Internet to allow the common man a heads up, so only the rich and connected were able to take advantage of past quiet historical events.......................................pleaseeeeee!!!!!With great respect, evidence at that time had no scanner I guess! but today if any. Where is such information which you speak?, There are some bank attesting to that? You know some rich people who can give testimony that he became a more millionaire by a revalued currency to a magnitude of 1,000%? or to give the benefit of the doubt at least! I too have spent half their lives studying, but unlike you, the human behavior that leads him to lie and commit crimes again and again. But I think that there have to be a scholar in the field to realize that this is not the kind of investment you have sold many into believing that millionaires will be called when a reassessment. Please!! If so, then we do a favor for Africa and other countries that are in urgent need of food to its people as I imagine you and I eat. Without ignoring the needs of the first packet, Firts Aid Kit Please!!! which incidentally will be many that will need when they realize the real truth. The real currency investments to make a profit does not work the way they have sold many. So it works that way numismatists or collectors. That would be another issue.
i did the calculations on a calculator you gonna argue with the calculator? you guy`s are priceless! i bought this stuff for a penny i only want to sell mine back for a dime! the dmmc in dubi can`t wait for the dinar to come back to the INTERNATIONAL MARKET! SO SELL IF YOU WANT TO I`M HOLDING MINE THIS CURRENCY IS BACKED BY ALL THE HEAVEY HITTERS WORLD BANK IMF THE UN MONETARY SYSTEM US TREASURY SO IF THEY GET SCAMED SO DO WE! LOL!
2collectg: "I TOOK THE $85 A BARREL that they said is their price i X`S that by the 3 million they say that they`re punping a day comes to 255 billion a day"
2collectg: "i did the calculations on a calculator you gonna argue with the calculator? you guy`s are priceless!"
ROFL!!!!! You're right - it IS priceless!!!
3 million x 85 = 255 million - not billion! I swear this topic is the best laugh I've had in ages... 😉
PS: Go buy yourself a new calculator and end the self-embarrassment 😉
Kev... it's not the calculator that's malfunctioning.
Kev, I know. You just can't make this stuff up even for an intentional comedy sketch... 😉
Total world oil production is 87.5m barrels per day:-
http://en.wikipedia.org/wiki/List_of_countries_by_oil_production
At $85 per barrel and "$255bn per day" (LOL), this means the "Go RV!" crowd now believe Iraq is producing 34x planet Earth's worth of oil per day...
...And after that, there's just nothing left to say...
1. If the dinar becomes 1,000 times more valuable, it will become 1,000 times more expensive to do business in Iraq. Do you think this would be sustainable?
Answer: This is sustainable because the current rate of the dinar in Iraq is artificially low. The rate was $3.50 during and prior to the Saddam Hussein regime. It was lowered intentionally by the UN in order to drive out the profitability of terrorism. I would ask this Question: In reducing the value of the dinar by 1000 times (or more, actually), why didn’t everyone flood into Iraq to invest and buy? Iraq’s economy should have boomed with everything so cheap, right? Yet that did not happen. We may therefore safely state that the premise of the poser’s question is inappropriate. The reason it is inappropriate is that the current rate is artificially low and it is NOT internationally tradable. Bottom line: investment in Iraq is currently made in DOLLARS, not dinars. End of argument.
2. Would you buy dinars at 1,000 times the current price? If not, why do you expect someone to buy your dinars at 1,000 times what you paid for them?
Answer: I will probably buy dinars at 1000 times the current rate because I believe that eventually (within a couple of years) the rate will reach $3.50, meaning that I will triple (plus) my investment again.
3. If there was any possibility of a 1,000x revaluation, would dinar sellers be so keen to sell their stock to you? Is it possible that they think their mark-up is the best profit they can make?
Answer: This guy is ignorant! Sellers of dinars make a COMMISSION on the sale regardless of the rate. Their markup will remain the same WHATEVER the rate! Their profit is the same WHATEVER the rate! Duh! They are money exchangers. They are not in this for profit ON the rate.
4.Many investment professionals promote their ideas and “talk their book”. Why has no accomplished investor promoted the idea of massive gains from the dinar?
Answer: There are a number of people who have spoken affirmatively about the dinar as an investment. The poser of this question has not taken the time to find them. One was on TV last year claiming that it would be the best single investment in a lifetime (!) and he has a regular TV investment show that runs DAILY! He dropped the topic for some reason. We can only guess what it was, but I presume that he was told to “lay off” on dinar talk. Therefore we might not be surprised that there is little more among the normal investment community on this issue. I might add, incidentally, that I’ve been told that Trump has $30 million in dinars and that the Clintons have over $2 million in dinars. I have no reason to doubt this since the former was printed in USA Today over a year ago. Therefore, let’s ask the poser this question: If this is good enough for Trump, why isn’t it good enough for you?
5. The 1,000x rumour has been circulating for many years, but the forex markets have not reacted by driving up dinar prices significantly. On what basis do you believe you’re more “in the know” than the market?
Answer: Once again the poser is ignorant. The dinar is NOT traded on the open market, including the FOREX! Therefore, the premise of the question is false. Second, since all dinars are initially sold from the CBI, the CBI is therefore in control of supply. With a very limited market (physical dinar dealers only) it is quite easy for Shabibi to control the price. There is NO SPECULATIVE MARKET FOR THE DINAR! DUH!
6.Does scepticism of massive gains from the dinar make you angry? If so, and if you think you’re going to make 1,000 times your money, what is the reason for your anger?
Answer: I am not angry with people who are ignorant.
7.Do you seek information that confirms your opinion, and dismiss information that challenges your opinion?
Answer: Absolutely not. I have welcomed challenges from dinar investors and have answered all who have dared to approach me on the issue. In addition, I take pride in being able to state without equivocation that we do not “bury” articles just because they appear to refute our position. In fact, we welcome ALL articles and deal with them just as we do anything else: honestly!
I got $100 that says him and a group of other dinarians are on some dinar board laughing and talking about how he crushed the loppers.
10urout says:
I have spent my adult life studying, teaching, and selling investments, economics, and their strategies for 38 years. I have taken courses in analyzing the back ground of investments and their viability. My journey has taken me to research mega investments that required “wrappers” which did not allow me room for error. I have also applied these same principles to this currency and history.
Sorry to say the author of this article is so off base I am embarrassed for him. This sounds like so many that have already been in print that gloss over the possibility of this event which has happened more than once in history; however, back then no Internet to allow the common man a heads up, so only the rich and connected were able to take advantage of past quiet historical events.
No offense, but as somebody who has spent the last 11 months documenting the douchebaggery of dinar pumpers I have to call BS. First of all anybody with the background that you claim would know the difference between a revaluation and a redenomination. I figured it out and I've never studied or taught economics. Secondly, "this event" which I take to mean a revaluation of 100,000% ($.00086 to $.86) or more has NEVER happened before. The largest revaluation in history was China at just over 30%.
http://dinardouchebags.blogspot.com/2012/01/rv-101.html
http://dinardouchebags.blogspot.com/2012/01/rd-101.html
Sam I Am, I'm afraid your research needs a bit more work. Romania revalued at 35.4% at the beginning of the 80s and Colombia revalued the central parity of the currency 30.6%. Would you mind laying out your scenario of when and how China revalued? I'm willing to bet your scenario once again is wrong. You said that you've never taken or taught a class in economics, maybe you should sign up for one.
Classic pumper behavior from Ennorste. Even though we have provided proof straight from the CBI, and links from other sources, that show the dinar was devalued back in the early ninties. He refuses to address the information and simply continues to push the bald faced lie about the rate being intentionally lowered by the UN. Dinarland fantasy facts… just repeat them over and over enough and everyone will except them as fact.
I'm sure it is apparent to us all that anyone who uses the word "douchebag" as the title of their website is not a professional economist (or professional anything for that matter), has the maturity level of a "douchebag," and is perhaps just another lonely, bitter blogger. The very name of your website says it all. As an economics student myself, I do believe there is a great chance (long term) for a profit, as do many others. If you don't believe there is a chance for a profit (long term or otherwise), than YOU are the biggest fool of all for devoting so much time to this. I wonder if that thought has ever crossed your mind.
WITH WHAT I AM POSTING BELOW...IS MONEY NOTHING PREDOMINENTLY BUT ELECTRONIC AND PENCIL MARKED FIGURES?...AND ON WHICH SET OF WHOSE BOOKS?..OR HOW MANY BOOKS ARE BEING USED?
NOTE: WE KNOW THAT WE HAVE HEARD THAT THE U.S. HAS BEEN PUMPING BILLIONS OF USD INTO IRAQ FOR THEM TO OPERATE ON...I DONT KNOW ABOUT THAT, BUT THIS CNBC VIDEO SHOWS WHERE APPX. 40 BILLION WAS MOVED FROM THE DFI/DEVELOPMENT FUNDS FOR IRAQ/ASSETS SEIZED FROM SADDAM)..YES, IN U.S. CASH!......BUT WHAT GET'S REALLY INTERESTING IS AT APPX. 19 1/2 MINUTES INTO THE FILM, IT SHOWS THAT IRAQ'S DFI FUND HAS NOT WENT DOWN AFTER THIS 40 BILLION WAS SENT OUT OF IT, BUT THAT IS HAS ACTUALLY GONE BACK UP, TO 60 BILLION NOW, DUE TO OIL REVENUES EVEN AS THESE INITIAL FUNDS WERE DEPLETED...WHO KNOWS, AS THEY EVEN MENTION SOME OF THIS ORIGINAL 40 BILLION WENT MISSING..(LIKE 10-12 BILLION APPX.)...BUT IT SHOWS THAT THEY ARE STILL SENDING IT BY THE BILLIONS TO IRAQ...DO WE EVEN KNOW ACTUALLY HOW MUCH THERE EVER WAS THAT EXISTED, OR ACTUALLY HOW MUCH THAT ACTUALLY HAS BEEN STOLEN, OR HOW MUCH THERE IS NOW, OR WILL END UP BEING SENT TO IRAQ AGAIN, OR "REALLY" HOW MUCH WILL BE PAID BACK INTO THIS FUND, IT STATES THAT THE DEPLINISHED DFI FUND IS BACK UP TO 60 BILLION AGAIN DUE TO OIL REVENUES FROM IRAQ?...WHAT!...IS IT ALL JUST DFI MONIES???...WHOS GETTING PAID, AND PAID BACK, AND HOW?....INTERESTING INFO!!!....
http://www.dinarguru.com/1/post/2012/02/cnbc-video-the-baghdad-job-iraqs-missing-billions.html
Amanda... do you have any links to those RVs you talk about.
Also... 30 to 35% over a couple years would not be that out of the question. It would still be considered a huge move for a currency though.
I don't think anyone would have any problem with dinar sellers and gurus promoting the dinar claiming it could go up 30-35% in the next fee years. But you know as well as I that's not what is being claimed here.
Well said Amanda. My thought was those trying to debunk this issue side step the information such as what is going on with Paris Club, IMF, defense funds and other articles that substantiate this investment as sound. Those that are vested not on an emotional base know that there are "pumpers and spreads" but we also know that Iraq will return to the full functional use of their monetary system excluding the use of usd. All economies are inderlinked in this global society. It is to our benefit to examine the strengths as well as weaknesses in all sectors of the world. Discord seems to be the order of the day, in economics, religion, territory. If we do not learn that the enemy of every man/woman is deceit. Those that actively and passively try to deceive. Let them put out substantial evidence that the dinar is a scam, that Iraq will always use the usd and that Iraq is less wealthy than those in the west. Tell that to the US who just obtained a good size arms sales to Iraq to be delivered 2014. More than anything, we should be encouraging the wealth and progress of Iraq so that their people should all have access to clean water, electricity, food, housing and medical. As the second largest producer of oil in the world, there is no excuse for poverty. So those people can hang on to the hope Iraq stays as it is. I hope that it floureshes not just for my own benefit, but for others like myself trying to make ends meet. Kurdistan is a wonderful example of striving in the right direction.
The Paris Club? If anything the Paris club info just shows how farfetched this notion of a big RV is. Iraq’s entire debt back in 2004 when this thing started was $300 billion. That’s it, that was the highest estimate I ever saw for their debt, most estimates were much lower, but lets go with $300 billion. $300 billion in debt was seen as crushing and there was no way Iraq could recover with that kind of debt looming over it. So most of the debt has been forgiven. A countries currency is a LIABILITY, so if $300 billion was crushing, then how can you explain how they are going to RV TRILLIONS of dinar which would plunge Iraq immediately $TRILLIONS into debt. It’s an absurd thought.
Now… I know most dinarians don’t understand that the currency is a debt and they think the dinar is an asset. That’s ridiculous bet let’s roll with that for a sec. If it was an asset, and they have this ability to simply flick a switch and RV Trillions of dinar and make themselves mega wealthy. Then why would there have ever been a need for debt relief. Iraq could have RV’d Trillions, the $300 billion in debt would have been pocket change to pay off and they would have had $trillions left over. There would have been no need for years and years of wrangling over debt relief. Why didn’t this happen??? Because it’s based on a dinarland fantasy.
Stew, the fact that you don't already know that proves my point. Go back to school. Then... maybe... we'll talk. You are a little out of your league here I'm afraid. In addition to those two revaluations, you may want to brush up on Czech Republic at 16.40% due to a new exchange rate regime framework, Chile at 15% where they also widened the bands from 5%-10%, Switzerland which has RVd twice (10.2% & 20.6%), Japan at 24%, Spain at 19%, Algeria at 28% due to the basket peg. I could continue but I'm not going to do your work for you. I personally believe Iraq's exchange rate will continue to rise but not at the advertised levels. Long term, there is definitely a profit to be made here. Let's not group together anyone who has a positive outlook for the Iraqi currency with the pumpers. Show a little more discretion when insulting people.
Amanda, if you have information to share on the Romania RV I'd like to look it over. I'm going by the information I obtained from a currency professional. As for the name of the blog, I admit that it's a tad provocative but people do tend to remember it. And if you'll read the information I've gathered on people pumping the investment I think you'll see that the term is appropriate. I agree that the dinar has profit potential, and in fact I still own some. I've never called the dinar investment a scam. I just call the idea of a revaluation of 100,000% or more a scam.
Amanda... How exactly did I insult you? I simply asked for a link to claim. I didn't even say I doubted it. I even stated RVs over periods of years in that range are not out of the realm here.
You on the other hand have told me to "go back to school", and also kicked in "You are a little out of your league".
So who's doing the insulting here?
8-30-2012 Stew, my statements toward (and opinion of) you and "Sam I Am," stem from reading your previous childish responses in this forum where investors were mocked and treated in a contemptuous manner. If I was overzealous, I apologize. There were some well thought out (pumper free) scenarios presented by others in this blog that you seem to have overlooked, such as the possibility of a change in the peg to a PEP or mineral and agricultural commodities peg that someone mentioned, or Iraq may remain pegged to the USD, in which case we will witness a more gradual rise as the recovery (economic and political) continues. I agree that an intial appreciation 100,000% is not likely under the present economic circumstances but we do know that Iraq is in the process of currency refom. The details of which are hidden from our view. Transparency will never be prevalent with a Central Bank that is undergoing currency reform. Another valid point that was brought up was the fact that the IQD is not traded on forex markets and the job of a currency exchange is to sell currency. So, naturally they are going to sell at whatever the current rate is. Currency dealers are not alerted in advance as to when a large appreciation is coming. This article we are all debating was very poorly written and I guess I'm just curious as to why that did not attract your attention. As far as a "link," I'm not sure what you mean. I could list numerous books, articles and working papers that I've studied over the years. Here are a few you might want to read up on: MONTIEL, P. J. and L. SERVÉN (2009), “Real Exchange Rates, Saving, and Growth: Is There a Link?‛, Commission on growth and development, Working Paper No.46. NUCCI, F. and A. F. POZZOLO (2001), ‚Investment and the Exchange Rate: an Analysis with Firm-Level Panel Data‛, European Economic Review, Volume 45, 259-283. OBSTFELD, M. (2002), ‚Exchange Rates and Adjustment: Perspectives from the New Open- Economy Macroeconomics‛, Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 20(S1), pages 23-46. OBSTFELD, M. and K. S. ROGOFF (2004), ‚The Unsustainable US Current Account Position Revisited‛, NBER Working Paper 10869, November, National Bureau of Economic Research, Inc., Cambridge, MA. OBSTFELD, M. and K. S. ROGOFF (2005), ‚Global Current Account Imbalances and Exchange Rate Adjustments‛, Brookings Papers on Economic Activity 1, pp. 67–146. OBSTFELD, M. and K. S. ROGOFF (2009), ‚Global Imbalances and the Financial Crisis: Products of Common Causes‛, CEPR Discussion Papers 7606, C.E.P.R. Discussion Papers. QIAO, H. H. (2007), ‚Exchange Rates and Trade Balances Under the Dollar Standard‛, Journal of Policy Modeling, 29, pp. 765-82. REINHART, C. and K. S. ROGOFF (2004), ‚The Modern History of Exchange Rate Arrangements: A Reinterpretation‛, Quarterly Journal of Economics, 119(1):1-48. EICHENGREEN, B. and M. HATASE (2007), ‚Can a Rapidly-Growing Export-Oriented Economy Smoothly Exit a Peg? Lessons for China from Japan's High Growth Era‛, Explorations in Economic History 44 (3), pp. 501-521. EICHENGREEN, B. and A.K. ROSE (2010), ‚How will the new exchange rate regime affect the Chinese economy‛, VoxEu.org, June 21. ENGEL, C. (2009), ‚Exchange rate policies‛, Staff Papers, Federal Reserve Bank of Dallas, issue Nov. Published as: ‚Exchange rate policies‛, BIS Papers chapters, in: Bank for International Settlements (ed.), The international financial crisis and policy challenges in Asia and the Pacific, volume 52, pages 229-250 Bank for International Settlements. FELDSTEIN, M. (2008), ‚Resolving the Global Imbalances: The Dollar and the US Savings Rate‛, Journal of Economic Perspectives, 22/3, 113-125. FERGUSON, N. and M. SCHULARICK (2011), ‚The End of Chimerica‛, International Finance, Vol. 14(1). GALA, P. (2008), ‚Real Exchange Rate Levels and Economic Development‛, Cambridge Journal of Economics, 2008 32(2): 273-288. GARROWAY, C., B. HA and... ROMER, D. and C. D. ROMER (2010), ‚The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks‛, American Economic Review, June.
Try this Link...for the original article posted again below this link, as I believe the old link I provided earlier has been deleted?
New Link:
http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0
video 00:05:37
((IS STUFF LIKE THIS, POSSIBLY WHY SOME OWN DINARS?…OR MAYBE A REASON THAT THEY’RE “NOT” SCARED TO HOLD SOME?))
The National Budget CAN’T be Balanced
July 2012
To solve the national budget problem, we’ll have to raise taxes by 50% or shut down the federal government.
As I’ve been telling people for five years, “what can’t be paid, won’t be paid.” The national debt can’t be paid. It is mathematically impossible. Those of you who continue to hold U.S. Treasuries or virtually any other paper debt instrument are going to lose your assets.
My only objection to the following video is that it’s based on the government’s claim that the current National Debt is only $16 trillion. Credible sources estimate that debt to actually be anywhere from $50 to $500 trillion. I’m inclined to accept John Williams’ (shadowstats.com) estimate of about $80 trillion.
If, as the video below claims, even the $16 trillion National Debt can’t be paid, then an $80 trillion National Debt is even more impossible to pay and more certain to cause catastrophe. Until we reach the catastrophe, the national budget can’t possibly be balanced.
Other than the claim that debt is only $16 trillion, this video’s analysis of our national debt and national budget is short, easy to understand and brilliant.
http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0
Sure are loads of nonsense floating around in these replies. ....Why can't people use valid links for their rebuttals? .....After all, opinions have generated nothing more than hot air for almost a decade now!
All one has to do is look through the certified financial reports issued by the CBI and verified by two very highly regarded accounting firms.
http://www.cbi.iq/index.php?pid=FinancialStatements
These statements clearly show that less than 7 trillion dinar were required to perform the conversion from the old currency to the New Iraqi dinar. ....The same reports also indicate that the CBI has expanded the currency issued by another 25 trillion dinar over the period from 2005 - 2011.
....Why would any country on earth expand their currency base to such insane levels if they were intending to revalue it??????
........The answer seems rather obvious!!!! .....It is that their intention is to re denominate first; and they needed to expand the inflated money base to reach a target sufficient to support the economy following the re denomination!
We can argue the potential of the dinar following this event all day long, but the truth of the matter is that all these 'rags to riches' claims evaporate the second a 1000:1 re denomination occurs!