Dinar Deception Driven By False Hopes - Opinion Piece in Forbes Magazine

Dinar Deception Driven By False Hopes
John Wasik, Contributor


5/28/2013 @ 10:56AM

I don’t think it’s a coincidence that the Iraqi dinar features the ancient Tower of Babel. The monument symbolizes how people can hear different languages, when the message is essentially the same.

The Iraqi dinar is still being sold to thousands of unwitting buyers. The country is still in trouble politically and economically. The currency keeps losing value to the dollar. It is not traded on any legitimate foreign exchange.
Yet it’s still being hawked as the latest get-rich-quick scheme. Hopeful buyers keep accumulating the paper, believing the oft-told tale that the Iraqi government will somehow revalue the currency in their favor, so they keep buying more of the questionable notes. There’s a better chance of finding Aladdin’s flying carpet in your local Home Depot HD +1.92% or some day seeing Facebook FB +1.4% priced as high as Google GOOG +1.75%.


Last week, the dinar’s value plunged even more against the dollar: from 1,200 to 1,300. This development shows that the dinar’s dropping value represents hyper-inflation in the troubled country, which has been beset by more than 500 deaths due to sectarian violence in recent months.

Where does this leave you if you’re a dinar investor? It means you’re holding paper that’s worth increasingly less. If one was to consider it an asset — one that’s untraded and not listed on any real exchange — it would be like owning a rusting, undriveable car sitting in your driveway.

Last week, Adil Abdul-Mahdi, the former Iraqi vice president who resigned from his post, harshly criticized the current government’s economic policy (as reported by Al-Monitor Iraq Pulse):
“The high demand for the US dollar that we have seen for months has been widening the gap between supply and demand, at about $60 million-$70 million per day. A black market has emerged, in addition to two different exchange rates with a difference of 8%-10%.”

Why would Iraqis prefer dollars? Because their own currency is worth less and less, so their purchasing power diminishes. That’s not only the curse of inflation, it’s a sign of an unstable economy and lack of confidence.

If you’re an investor in dinars, it would be essential to find out what the market is for selling the currency (before you buy it, which is not recommended). In a healthy market, there’s an active exchange on both sides of the trade. There are now several dealers on the Internet willing to sell you dinars, but what will they charge to buy back the currency? My educated guess is that you won’t be able to get what you paid for them — ever.

I realize that you can probably buy hundreds of thousands of dinars for relatively few dollars. But you shouldn’t expect a payday. There’s no relationship between the value of the currency now and future appreciation. These notes may continue to devalue and the Iraqi economy and political state will suffer more strife. There’s no reason that you should share in their economic misery.
http://www.forbes.com/sites/johnwasik/2013/05/28/dinar-deception-driven-by-false-hopes/

i do not believe everything he says but most probably depending on how much dinar you hold after taxes most will not be a millionaire and also the value it comes out which i do not see it very high on purpose

Did u look at this guys picture,Im thinking Moron

he advertises if you have more then a half million invest with him

I think this was posted previously, but regardless, this clown definitely has a dog in this hunt. I didn't find anything to indicate he is selling himself as an investment adviser, although I would not be surprised if he has a list of well-to-do clients who pay him handsomely, but he is very much in the business of selling his "expertise" to companies like Bloomberg, Morningstar and WSJ, so he would definitely toe the party line and would never advise investment in something advisers could not make a commission on ...

Ahhhh,,,,,,I couldnt find anything in the article that was untrue....His motives are unclear, but hey...The very fact that Iraq does not have a viable currency is bizarre.....and.....makes no sense....which means we do not have all the facts....And by the way, this country has way more violence than Iraq,(15000 murders a year) has a more corrupt gov, and a higher % of its population in jails( about 5%) which by the way, I think, is tops in the world.....

Never said anything was untrue, it does not have to be it's all about what you say and don't say and the words you choose to say it ... for instance:

Yet it’s still being hawked as the latest get-rich-quick scheme. Hopeful buyers keep accumulating the paper, believing the oft-told tale that the Iraqi government will somehow revalue the currency in their favor, so they keep buying more of the questionable notes.

You could as well say, "Yet it is still being talked about as the latest speculative investment, with a potential to make investors rich, if they are correct in believing the Iraqi government will significantly increase the value. Some are so confident that they continue to purchase the notes even in light of the current issues within Iraq."

Both state the same facts, yet one is decidedly negative while the other is more neutral trending toward the positive. You are correct nothing is untrue, however I would say his motives are pretty clear. He has every reason to knock the dinar as a potential investment and zero reasons to support it.

The bottom line for me is that the dinar is a GBush supported currency. He made it possible for us to purchase it. http://reclaimdemocracy.org/executive-order-13303/....Nothing GBush has ever done was for the enhancement of the American people. 9/11 was a lie and its really not debateable. The're too many facts backing this up. If this had been a viable currency it should have been given value a long time ago. But hey, Ive been wrong before.....And.......here is a bit of info that makes me look foolish.....

http://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

topspin2: Your figures would indicate to me that WE THE PEOPLE need to get busy and get rid of the "crooks in government and straighten out our country."

I for one am not impressed with the figures stated. It abhors me to have to agree with them, however there are measures that can be taken. 1) Put back the 13th Bill of Right i.e.: NO lawyer/attorney/legelise may serve in an legislative body (there is a direct conflict of interest when considering that the government is made up of Administrative/Judicial/Legislative branches. I would also suggest that those who run for any Administrative office also NOT be of the legal profession, for that too would pose a conflict of interest. I firmly believe that primary cause of the United States failures is due to the fact that the Judicial branch has taken over ALL of the branches of our government and therefore they a)make the laws, b) administer the laws and c) enforce the laws. Now how can that be a proper form of FREE government?

In reality the legal people make the laws to enable the legal people to make money from those laws and also to bend them to their own profiteering ways. Then the administration ensures that these laws be upheld by appointing the "proper" counsel (attorney general) and riding herd on said laws. And then the enforcement team ensures that we cow tow and knuckle under to these very same laws that were designed to profit one group and one group only. Yep, we have a FREE and proper government don't we? Time for a change.

If you don't think so think of the scandals that have befallen our government the last several months. How totally embarrassing in one sense and how utterly appalling in that our own government is spying on our freedom of speech as well as other constitutionally given rights and freedoms.

AND WE comment and think other countries are BAD? Maybe we that live in a GLASS HOUSE should withhold our stone? Should this investment pay off any time within the future I would forward the proposition that we use some of this "blessing" and straighten out our government and get rid of what ails us. Personal opinion freely given.

It is common belief between many of the people I know, most of whom are brilliant minds, that its too late for us to do anything. Short of an army of alien dogooders, were done.....

I'll take mine with an order of fries, coleslaw, and make my burgers still moving, please- It's NOT that bad- We're all still drawing air, ain't we? I'll go down drinking my last cold beer, so, what the he-l-l do I care? One person can't stop all the problems facing us, it will take ALL of us- What the he-l-l are we waiting for? Let's All go to D.C. and throw the Bum out on his arss, they do what we say, NOT the other way around- If he ain't doing the job he was 'illegally' ushered into office to do, then He's FIRED, plain and simple, and the same with the rest of those dumb 'f's--And I won't take NO for an answer-

13th Amendment AK? That had to do with slavery. Section 9 does say:

No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.

This is the closest I can recall or find ... and it's not talking about lawyers ... not that I disagree with your opinion, but ....

i agree a lot with topspin...too late

Hey terbs.....I coming with you.....and Im bringing the beer.....We can make major news, and they may even have a false flag event in our honor.....

Ah try the bill of rights. you will fimd only twelve.

Topspin, yeah, a mercy killing in our honor [JK}- As long as They let us finish our beer, first, then, we can kick arss 'til we can't kick it no more- Seriously, we people NEED to go to D.C., and weed those bastids out, BIG TIME-

Sorry AK but nothing there about lawyers ... kings yes, but not lawyers. Of course back then they were actually productive members of society Like John Adams, Alexander Hamilton, Gouverneur Morris, Roger Sherman, and about 35 others. Oh, and let us not forget Abe Lincoln some four score odd years later.

How the mighty have fallen ....

Well, since I was referring to the state of the PRESENT union I will have to admit that the "old guard" were rather outstanding citizens. The "new guard" however doesn't quite make it.

I was hoping to make a 13th Bill of Rights since they seem to have lasted where the Amendments seem to be able to be repealed. I don't hate lawyers, I merely stated that it seems odd that we have these problems and there is obviously a conflict of interest. The three tier system was to be a check and balance and I can't for the life of me see how that can be with 1 profession (makes nodifference which) having sway within all three branches. Conflicting at best - criminal at worst.

Then we get to the judicial side of it and the "plea bargain." Don't seem to see where that was part of the beginning of the system since it called for a trial by jury of ones peers. Nowhere did I see where a Judge and a couple of attorneys could decide by using the barter system. Sounds lazy and unprofessional to me. Either the charge is righteous and provable or it isn't. Charge the person with the proper crime NOT make a barter to whatever crime the person will submit to being tried for. Heck, let's try O for treason and plea bargain him out of office for any felony he will submit to being tried for -- SAME THING!!

There is nothing special about the Bill of Rights, except perhaps the wisdom of the drafters. It is simply a term applied to the first 10 Amendments to the Constitution.

Amendment I
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Amendment II

A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

Amendment III

No Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.

Amendment IV

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Amendment V

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

Amendment VI

In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

Amendment VII

In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.

Amendment VIII

Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

Amendment IX

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment X

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.