More from Jack

Jack -- January 10, 2014

POST 1

first of all, the Swiss Dinar was indeed redenominated at 1:150 rate in 2003-2004.

Secondly, even if Iraq didn’t instigate border controls, (best case for Dinar holders) and whilst you’re correct that MSB’s are prohibited from trying to pass off old notes (eg, selling Saddam / “Swiss” Dinar’s or old Turkish Lira’s as modern NID’s or New Turkish Lira), the US Govt cannot force an MSB to make a reverse trade of an obscure currency. That’s why Treasury Vault / Dinar Trade, etc, all have disclaimers that say “Treasury Vault reserves the right to reject any requested buy-back submitted by anyone for any reason.”

In fact, almost half the world’s 3rd-world currencies are not traded in US banks or MSB’s. Try buying Bulgarian Lev’s or Somali Shillings from Wells Fargo or Dinar Trade, etc. They aren’t listed, and the US Govt can’t force them to list. Banks & MSB’s can buy / sell and change acceptance of whatever currencies they want without coersion and do so based on supply & demand. The laws you describe encompass what they’re allowed to SELL (and the advice they’re allowed / not allowed to give when selling it) but FinCEN laws simply do not forcibly require any US MSB to buy back every bank-note they’ve ever sold in the past which could stretch decades (many don’t have anywhere near enough liquidity for that) within the space of 3 months, etc, especially if the MSB decides not to trade that currency anymore and removes it just before the redenomination.

Try going into BoA or WF or even Dinar Trade / Treasury Vault with a pocket full of Old Turkish Lira and “demand” they change them up for New Turkish Lira and see what they say. Even during the official Turkish redenomination changeover period, many banks were not interested and no US MSB was forced to trade them either way.

Thirdly, once Iraq redenominates and the 3 zeros get deleted, demand for new Dinar notes for “RV investing” from Westerners will plummet like a stone when it finally sinks in the “350,000% RV” was a scam and many MSB’s may well just decide to close up shop altogether. Something else all the “FinCEN” laws in the world cannot stop. There’s simply no law that says “you’ll be jailed for closing your own business”. The MSB owner could simply retire, cease trading and close the business (as many other businesses do every week). Many will probably do that just to avoid the mass of irate customers wondering where their “missing” $3.49m is. LOL.

There’s a whole host of things to think about post-redenomination that make it a little more complicated than your initial post suggests… To start with, a LOT of people involved in selling / pumping the RV are just plain going to disappear off the radar.
 

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POST 2



 All these moron guru’s do is falsely re-label every redenomination as an “RV” then hold that up as “proof” that Iraq will make them millionaires for no reason:-


- 1920′s Germany didn’t “RV”, they redenominated / lopped at the rate of 1 trillion Papiermark = 1 Rentenmark.


- Afghanistan didn’t “RV”, they redenominated / deleted 3 zeros / lopped (exactly as Iraq are planning) from 4300:1 to 4.3:1 in 2003


- Oil rich Venezuela (who have more than double the oil reserves Iraq has – 298bn Ven vs 140bn Iraq) redenominated / lopped from 2,150:1 to 2.15:1 in 2008.


- Next door Turkey redenominated / lopped 6 zeros from 1200000:1 to 1.2:1 in 2005.

- Kuwait didn’t “RV”. The KWD got frozen when Iraq invaded, then unfrozen when it left mere months later. Although there was a temporary black-market rate spike inside Kuwait (street value) from a small number of Kuwaiti’s panic buying $, the actual international rate or peg vs the $ didn’t change at all beyond the usual 1-2% fluctuation. Chart is in plain site here:-


http://upload.wikimedia.org/wikipedia/commons/2/2d/KWD_against_USD.PNG


- China has “RV’d” but then that’s what a normal “RV” looks like – a couple of percent there one year, a couple of percent there a few years later, etc.


- Iraq has also already “RV’d”. The move from 1170:1 to 1166:1 was an “RV”. Again that’s what a normal “RV” looks like – a couple of percent there one year, a couple of percent there another. No-one on the planet ever has or ever will “RV” by even 100%, let alone stupid +100,000% as it would just bankrupt their own Central Bank overnight by forcing them to find 1,000x more $ to back every currency unit in circulation, which they simply don’t have…


Iraq has 80bn in reserves and 85,122bn in Dinar. Until they lop 3 zeros and reduce money in circulation to just 85.1bn, a rate of under 1000:1 genuinely is the Dinar’s fair market value vs the Dollar…

You also don’t replace your banknotes or get a new currency code when you RV as RV’s don’t adjust the money supply or face value of notes, they just adjust how more expensive / cheaper it is to buy Foreign currency with each unit (and vice-versa). A change in banknotes with a different value and a new currency code = a redenomination every single time without exception.

The “RV Guru’s” really are full of it.


Anyway, busy few days ahead, so have a good weekend all.

Secondly, even if Iraq didn’t instigate border controls, (best case for Dinar holders) and whilst you’re correct that MSB’s are prohibited from trying to pass off old notes (eg, selling Saddam / “Swiss” Dinar’s or old Turkish Lira’s as modern NID’s or New Turkish Lira), the US Govt cannot force an MSB to make a reverse trade of an obscure currency. That’s why Treasury Vault / Dinar Trade, etc, all have disclaimers that say “Treasury Vault reserves the right to reject any requested buy-back submitted by anyone for any reason.”



In fact, almost half the world’s 3rd-world currencies are not traded in US banks or MSB’s. Try buying Bulgarian Lev’s or Somali Shillings from Wells Fargo or Dinar Trade, etc. They aren’t listed, and the US Govt can’t force them to list. Banks & MSB’s can buy / sell and change acceptance of whatever currencies they want without coersion and do so based on supply & demand. The laws you describe encompass what they’re allowed to SELL (and the advice they’re allowed / not allowed to give when selling it) but FinCEN laws simply do not forcibly require any US MSB to buy back every bank-note they’ve ever sold in the past which could stretch decades (many don’t have anywhere near enough liquidity for that) within the space of 3 months, etc, especially if the MSB decides not to trade that currency anymore and removes it just before the redenomination.



Try going into BoA or WF or even Dinar Trade / Treasury Vault with a pocket full of Old Turkish Lira and “demand” they change them up for New Turkish Lira and see what they say. Even during the official Turkish redenomination changeover period, many banks were not interested and no US MSB was forced to trade them either way.



Thirdly, once Iraq redenominates and the 3 zeros get deleted, demand for new Dinar notes for “RV investing” from Westerners will plummet like a stone when it finally sinks in the “350,000% RV” was a scam and many MSB’s may well just decide to close up shop altogether. Something else all the “FinCEN” laws in the world cannot stop. There’s simply no law that says “you’ll be jailed for closing your own business”. The MSB owner could simply retire, cease trading and close the business (as many other businesses do every week). Many will probably do that just to avoid the mass of irate customers wondering where their “missing” $3.49m is. LOL.


There’s a whole host of things to think about post-redenomination that make it a little more complicated than your initial post suggests… To start with, a LOT of people involved in selling / pumping the RV are just plain going to disappear off the radar.

What are your thoughts on his perspective?

I stopped reading after the first section because its false.. when turkey redenminated their currency there were ways to cash the Lira out and there were ways to do this IN THE USA... infact a simple search of the history of the Lira will tell you he is wrong.

So since he didn't start very well in my book then I decided to not waste time on the other stuff..

This investment is not a SCAM.. no matter what happens.. this Investment was a roll of the dice... GET YOUR FACTS STRAIGHT! If you are going to be a nay Sayer at least be better then the Guru's hopium.

He is being touted as basically a dinar genius on Baghdad Invest

I think I have heard the words Dinar Genius a few times... Many times that means... FALSE

Jack needs to go find some beans to plant

If Jack is such an expert, he would know that the FinCEN law (not laws) has to do with preventing money laundering. FinCEN Stands for Financial Crimes Enforcement Center. From their page:

FinCEN wrote:FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

As to where he states in the second part:

Jack wrote:Iraq has 80bn in reserves and 85,122bn in Dinar. Until they lop 3 zeros and reduce money in circulation to just 85.1bn, a rate of under 1000:1 genuinely is the Dinar’s fair market value vs the Dollar…

The US as a RESERVE currency has in the neighborhood of $146B in reserves against $1.24T in circulation. So clearly, a 1:1 ratio of currency to reserves is not required. That's why it's called fractional banking. 

I have to conclude that Jack don't know Jack!  

Kevin53 I like your style! ;-)

Ponee or any one ??? Stupid Q How do I find the chat room??? I was so bright in grade school they nicked name me 10 watt . There wasn't many as bright as me . LOL

Thanks Ponee; Dah the light was out till you help me find the new bulb

Me thinks jack loves to hear himself talk and likes all the attention he's gettin over at BI.