Happy Thursday Dinarians!
Wow, yesterday’s part one post from Snoopy really hit some nerves – thanks for your letters, did he/she hit your nerve too? I guess so, that is why you are back for part two today – right! 🙂
If you didn’t see yesterday’s post, then go here first.
Today will be the completion, the second part of Snoopy’s Rant! Enjoy!
Recently, I’ve received three emails from the administrator of one of the popular Dinar sites. One email included a video relating to a proposed development project in Baghdad. Even though the video was produced in 2012, its relevance is still worth noting. The other email showed what the IMF’s yearly exchange rate for the Dinar has been (at least as stated by the IMF) from 1985 to 2011. The last email included yet another video, this one was of an interview conducted also in 2012, wherein the two being interviewed expressed their concern for the Euro and pending worldwide currency reset, which they felt was imminent, but as we now know, that interview was almost two years ago.
Normally, these types of emails are distributed only to the paid subscribers of that web site, but occasionally, the site owner emails information for everyone to read, like myself. By the way, I don’t subscribe to anything related to the Dinar, which I would have to pay $$ for, no premium services, etc.
Most of the “FREE” Dinar web sites are merely a playground for the “Hack” Gurus daily dose of rumors so having to pay for information, which they refer to as their premium services, provides no basis for any more pertinent information then what one can obtain for free each day if one wants, other then providing a comfortable living for the owners of such web sites. Life is challenging enough, but to be subjected to the “Hack” Gurus falsity is way too frustrating and quite frankly absurd. It seems the intended purpose of these sites is to provide a podium for these Guru” Hacksters” to hype this investment.
These sites have continued to post the same “FALSE” rhetoric from these same “Hack” Gurus for years now and in so doing, I ask; are we expected to believe and trust these same web sites for providing impartial or independent information, when that same Dinar web site offers a direct link to a Dinar Dealer to buy Dinar? These web sites are being paid by the Dinar Dealer to advertise, so how can that be impartial when you have the “Hack” Gurus who call for the RV at ridiculously astronomical rates? Doesn’t anyone find that just the least bit interesting? [I did and still do! ]
These “Hack” Gurus want us to believe that they are the only ones with sources from the 3-letter agencies, etc and they keep feeding us a diet of half truths and garbage which they continue to sugar coat. If and when the Dinar revalues, everyone world wide will know about it at the same time. There will be no exclusivity with one group getting advanced information over another group, regardless of how much these “Hack” Gurus want you to believe them based upon their sources that they will be the first to know and report it to you. Again, if and when the Dinar revalues, the world will know within seconds and every financial news network in the world will simultaneously report it.
The sheer magnitude of an event like this would dramatically turn balance sheets world wide upside down with countries doing cart wheels, hence “newsflashes” would be appearing instantly because of the Trillions of “NEW WEALTH”! The ensuing financial chaos would resemble a derailed 100-car freight train screaming through downtown USA. Get the picture?
I absolutely do not believe for one second that we will see those rates or anything in the same universe with those rates! Nor do I believe that any one person or groups of people the “Hack” Gurus refer to as “ELITE” have cashed in at those rates. Something like that, especially given the numbers of people the “Hack” Gurus want you to believe have cashed in WOULD NOT go unnoticed in the investment news world.
Also, my question to the “Hack” Gurus promoting that nonsense is: “Where did the money come from to pay those “Elite”?
A financial exchange of that magnitude would have set off safeguards in the financial institutions worldwide. To me the only sensible explanation to anyone cashing in would be that the “Elite”, who purchased Dinar at the outset in 2003 have cashed in today at an approximate 4:1 ratio. Would the “Elite” have made allot of money…. Yes! But not the Trillions the “Hack” Gurus want you to believe.
Now, regarding the email of the project that was highlighted in the video. By the way the proposed project really sounds great, but I want to focus on one of the subsequent comments made by a person that had absolutely nothing to do with the project in the video. It was in regard to that person using the opportunity of that email to promote his business opportunity and how much money one could make with virtually no effort and very little invested. (Doesn’t this sound eerily familiar to many of the sales pitches relating to the Dinar)!
This person provided an 8**# to call, and quickly transformed the comment trail from anything related to the video into a sign up for that person’s get-rich-quick scheme. From the comments that followed, people were falling all over themselves wanting to sign up to his 8**#. This completely substantiates the point I made earlier about promising vast amount of wealth, with little work or money invested, which then blinds one from seeing the scam. No matter how clean you try to keep the garbage can, garbage grows maggots and breeds’ flies, plain and simple!
The second email from this same site owner included a chart from the IMF, which showed the price of the Dinar from 1985 to 2011. Now, let’s dig a little deeper to understand those figures.
1950 – 1990
In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank’s authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.
On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778.
By 1987 the banking system consisted of the Central Bank, the Rafidain Bank, the Agricultural, Industrial, and Real Estate banks. A 5 percent devaluation reduced the value of the dinar to US$3.2169, the official rate which remained until the Gulf War, although in late 1989, the black market rate was reported to be 1.86 dinars for US$1.
1990 – 2003
After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars. Source: CBI
The source of the above is from the CBI and as you can see, these rates don’t reflect the same rates that were in the email I received from that Dinar web site. Keep in mind that the CBI has further stated that after the Gulf War of 1990-91, it was Saddam Hussein who established HIS own personal rate for the Dinar of $3+, however, what most people don’t understand is that this rate WAS NOT a result of a true market rate where it could be traded on the open market for that value.
It WAS NOT tested in the world currency exchange market, nor was a result of it. It was simply a value MADE UP by Saddam Hussein for himself, his family and a handful of his highly placed officials (ah, that infamous 1%) that could exchange Iraqi dinars at this rate. I’m sure they extended their little financial network to some other friends, but the general population was excluded from participation with these values.
The CBI explains that the real market rate after 1995 was 1US$ to 3,000 Dinars. This is totally different then what the site owner published.
So, whom do you believe; the Dinar web site, CBI or the IMF? Since the IMF has nothing to do with setting rates and the track record of the Dinar web site speaks for itself, I’ll take the data from the CBI. [Me too Snoopy!]
Of course, as everyone now knows, in 2003, the “NEW” Dinar replaced Saddam’s currency, which was then valued at approximately $1 to 4000 Dinar. The Dinar has steadily increased in value to the current $1 to 1166, which is a pretty descent ROI, but isn’t what most of us want or need to see today! [I agree with you on that also!]
Bottom-line, where are we now?
That’s actually a very hard question to answer, because embedded deep within that question are probably dozens of sub-questions with no real clear answer. Therefore, this is what I’ve done to resolve the dilemma in my own mind for trying to answer that question rhetorically. Since the first of the year, I have stopped reading the Dinar web sites. My only contact to news related to the Dinar is when I receive emails like the ones I referred to above or when some, like Mr. IQD sends out an email and then I read the content and trail of responses, which is enough to keep me up to date on the continued deluge of “Hack” Guru “HYPE”. [I would recommend also subscribing to The IQD Team’s Newsletter.]
Prior to January, I think I had been reading every post written from every website and found that my days were consumed with garbage. I ignored my investment background and justified my actions as necessary to find out the latest gossip on the Dinar and to see if there really was some substantial Intel that was available. Each day ended the same as before, the “Hack” Gurus had continued to say “NOTHING”!
You know what they say, “Garbage in Garbage out”! It was subtle at first, but because I was hanging around the garbage so much, I gradually developed a garbage stench, which was repelling to my relationships around me, especially my [Spouse]. Therefore, I chose to limit my intake of Dinar information to only the emails I receive like I’ve shared. Now, after almost two months, the air around me is much cleaner and I no longer walk with a stench! My relationships are normalizing again and that is a very good thing! [I’m really glad to hear that Snoopy! Good for you!]
So, back to the question: “where are we now”? “We are waiting, hoping and praying like most people for some positive things to develop in Iraq and especially with the CBI. However, until the CBI is fully ready to reset the Dinar, we wait. They may possibly have planned on the RV in January as many have reported, but because of the leak and subsequent bank run, nothing happened nor will anything happen until several things occur in Iraq. Security has to function much better then previous and the Iraqi citizens have to rebalance their cash/dinars, which drastically changed after a run on the banks in January.
We are also approaching the next election with a certain amount of trepidation that should Maliki get re-elected, this drama could continue for years before we see any appreciable change in the Dinar value, if ever.
Therefore, what we want is a surprise by the CBI. SURPRISE is actually our friend but keep in mind that any future value change will be guarded as unto death. Another slip of the tongue and our Dinar may just end up in that garbage can! Let’s hope that when the CBI feels confident that the country of Iraq is not in any upheaval, politically or economically and they can surprise their countrymen (and us), then we will see the RV, not a day before!
I do believe that one day we will have made a “profit” on owning the Dinar. That word “profit” is open for your own personal interpretation and no one can tell you what that number will be. However, with 99.9999999999999999% certainty, it will not be $32 and probably not my future projection of $100, lol!
Good hunting —— “Snoopy”
Bravo!!! What an awesome conclusion Snoopy! And thank you for your kind words about me and my efforts with this website.
If you need to sound off, but don’t have that much to say, just use the comment form below!
~ Mr. IQD