Is The Iraqi Dinar Worthless Paper Or Maker Of Millionaires?

Is The Iraqi Dinar Worthless Paper Or Maker Of Millionaires?
Jul. 27 2011 - 8:40 am | 0 views | 0 recommendations | 0 comments
posted by ROBERT A. GREEN, CPA

50 dinars, what's it worth?
Dozens of people have signed up for tax consultations with me over the years looking for a windfall profit on the U.S. government revaluation of the Iraqi dinars back into U.S. dollars. In other words, these were people holding dinars who were hoping they could exchange them for dollars again.

Most dinar investors are current and ex-military, warzone contractors and now speculators. A cottage industry of promoters has sprung up on the Internet promising dinar “get rich” schemes. Many have invested, say, $5,000 and they hope to make millions. I’ve always thought it was a scam, as it sounded too good to be true.

These people ask me about their potential large tax bills. Most hope for long-term capital gains tax rates, currently up to 15 percent. I have to give them the bad news: holding physical currency is considered ordinary gain or loss in Section 988 (foreign currency transactions). Unlike forex traders, who don’t hold physical currency and don’t take or make delivery, they can’t file a capital gains election to opt out of Section 988 and into short- and long-term capital gains treatment.

That means no lower 60/40 futures tax rate either (Section 1256). At least, it’s not considered a personal loss which otherwise can’t be deducted, as is the case when a person returns from a vacation and exchanges his left over currency from that trip. Investors in dinars can deduct ordinary losses in Section 988, but few expect a loss.

Lords of Finance: The Bankers Who Broke the World by Liaquat Ahamed is about how the four leading central bankers from the U.S., U.K., France and Germany navigated in and out of WWI and financed recoveries and German reparations. These central bankers went off and on the gold and new dollar standards by manipulating their exchange and interest rates and much more. This is how money and power (military and otherwise) go hand in hand.

Our current situation begs the question: Did the Bush administration plan on, and is the Obama administration still considering, paying for part or all of the Iraq war by collecting taxes from the revaluation of the dinar?

If this scheme has any resemblance of reality, it could be an interesting revenue raiser for the government, and I know the government is hunting for revenue raisers and closing of tax loopholes.

Maybe the story here is just that it’s a scam. But, if rumors in the marketplace are true, and the dinar does revalue and allow conversion for most to pre-war levels, what are the ramifications for the government, Iraq, the military, investors and taxpayers? Also, what’s holding up the revaluation? Can Iraq handle it?

It does sound like a happy ending which makes me suspicious. How much tax revenue do U.S., state and local governments stand to collect? How many former and current military personnel and contractors stand to become millionaires overnight?
http://blogs.forbes.com/greatspeculations/2011/07/27/is-the-iraqi-dinar-worthless-paper-or-maker-of-millionaires/

Thanks, nice article....[list][*]

What a ridiculous article by an uniformed CPA author!!! Is this man aware of the many IRS special rulings on the tax implications of the Dinar holdings that are for investment purposes rather than simple currency exchanges when traveling in foreign countries? Has this man actually talked with IRS officials and U.S. Treasury agents, or seasoned bankers, who have prepared to cash out our Dinar investments? His speculations are either totally absurd, or he is acting as a "misinformation" pawn of the government.

There are so many legal and factual errors in his article that I just don't know where to begin without writing a complete thesis on his erroneous claims! First of all, our valid investment in Dinar is legal, was designed by the authors of THE PLAN (George W and others), is not a scam, is backed by the currency traders which are approved and sanctioned by the government. Secondly, our Dinar investment has been validated by our knowledge from the bankers, the senators, the congressmen, the current and former Presidents, the Presidential Order 13303, the IRS, the US Treasury, the various intel givers, the Iraq government, other Middle Eastern governments, the IMF, the UN, the WTO, the World Bank, the World Court, the Paris Club, etc., and the Iraqis themselves. Did I leave anyone out? Thirdly, we have already had several IRS rulings on our investment that there will be a 15% CAPITAL GAINS TAX, and that THIS IS NOT ORDINARY INCOME!! Finally, we know in our spirit, by the Holy Spirit, that this investment is right, is good, and is the largest transfer of wealth in history ever! I am so glad that someone told me about it, aren't you!?!

Oh, yes, and this yahoo author, Robert Green, is ignorant of the above facts!! PLEASE . . . . give me a break. Someone needs to educate this poor guy! :queen:

The point is... Publicizing thit event.

Alchemist wrote:The point is... Publicizing thit event.

BUT... is this what we REALLY want... publicity???

As for me... NO.... I am trying to keep this as close to the vest as possible so as to not have "long lost relatives and friends" coming out of the woodwork, woodpiles, etc., etc., etc. I definitely plan to share the blessing with my family, my church, and various other ministries that I am involved in, but I don't want to be stalked by "crazies"... so to speak...

As has been posted on these, and other forums as well... keep your investment to yourself for your own security. There are plenty of folks out there who would love nothing more than to take it from you, by hook, or by crook... BE SMART EVERYONE, please...

Dr. Linda wrote:What a ridiculous article by an uniformed CPA author!!! :queen:

GOOD! The more misinformation put out there to the general public, the better!

Dr. Linda wrote:What a ridiculous article by an uniformed CPA author!!! Is this man aware of the many IRS special rulings on the tax implications of the Dinar holdings that are for investment purposes rather than simple currency exchanges when traveling in foreign countries? Has this man actually talked with IRS officials and U.S. Treasury agents, or seasoned bankers, who have prepared to cash out our Dinar investments? His speculations are either totally absurd, or he is acting as a "misinformation" pawn of the government.

There are so many legal and factual errors in his article that I just don't know where to begin without writing a complete thesis on his erroneous claims! First of all, our valid investment in Dinar is legal, was designed by the authors of THE PLAN (George W and others), is not a scam, is backed by the currency traders which are approved and sanctioned by the government. Secondly, our Dinar investment has been validated by our knowledge from the bankers, the senators, the congressmen, the current and former Presidents, the Presidential Order 13303, the IRS, the US Treasury, the various intel givers, the Iraq government, other Middle Eastern governments, the IMF, the UN, the WTO, the World Bank, the World Court, the Paris Club, etc., and the Iraqis themselves. Did I leave anyone out? Thirdly, we have already had several IRS rulings on our investment that there will be a 15% CAPITAL GAINS TAX, and that THIS IS NOT ORDINARY INCOME!! Finally, we know in our spirit, by the Holy Spirit, that this investment is right, is good, and is the largest transfer of wealth in history ever! I am so glad that someone told me about it, aren't you!?!

Oh, yes, and this yahoo author, Robert Green, is ignorant of the above facts!! PLEASE . . . . give me a break. Someone needs to educate this poor guy! :queen:

I agree (& my CPA agrees) with you 100%---- well stated. You are correct on EVERY point!

And as far as publicizing this event per Alchemist -- wrong! I agree with az-tex! I cannot believe how stupid some of the comments are regarding the "vocalizing" of this investment. Some people, I guess, just cannot stay out of the "lime-light", no matter how ridiculus they look to everyone that sees or hears them. Grab your boots, Man! ! !

tport wrote:

Dr. Linda wrote:What a ridiculous article by an uniformed CPA author!!! Is this man aware of the many IRS special rulings on the tax implications of the Dinar holdings that are for investment purposes rather than simple currency exchanges when traveling in foreign countries? Has this man actually talked with IRS officials and U.S. Treasury agents, or seasoned bankers, who have prepared to cash out our Dinar investments? His speculations are either totally absurd, or he is acting as a "misinformation" pawn of the government.

There are so many legal and factual errors in his article that I just don't know where to begin without writing a complete thesis on his erroneous claims! First of all, our valid investment in Dinar is legal, was designed by the authors of THE PLAN (George W and others), is not a scam, is backed by the currency traders which are approved and sanctioned by the government. Secondly, our Dinar investment has been validated by our knowledge from the bankers, the senators, the congressmen, the current and former Presidents, the Presidential Order 13303, the IRS, the US Treasury, the various intel givers, the Iraq government, other Middle Eastern governments, the IMF, the UN, the WTO, the World Bank, the World Court, the Paris Club, etc., and the Iraqis themselves. Did I leave anyone out? Thirdly, we have already had several IRS rulings on our investment that there will be a 15% CAPITAL GAINS TAX, and that THIS IS NOT ORDINARY INCOME!! Finally, we know in our spirit, by the Holy Spirit, that this investment is right, is good, and is the largest transfer of wealth in history ever! I am so glad that someone told me about it, aren't you!?!

Oh, yes, and this yahoo author, Robert Green, is ignorant of the above facts!! PLEASE . . . . give me a break. Someone needs to educate this poor guy! :queen:

I agree (& my CPA agrees) with you 100%---- well stated. You are correct on EVERY point!

And as far as publicizing this event per Alchemist -- wrong! I agree with az-tex! I cannot believe how stupid some of the comments are regarding the "vocalizing" of this investment. Some people, I guess, just cannot stay out of the "lime-light", no matter how ridiculus they look to everyone that sees or hears them. Grab your boots, Man! ! !

I never gave an opinion as to this being good to publicize. It is noteworthy if this info hits mainstream, especially with a possible delay through Ramadan. I am thankful of the effort to find and post relevant info to our forum by our members. I have not developed an opinion as to it being bad or good, publicizing the IQD. I think that it is important to observe all info pertaining to this issue. I apologize if I stated something that caused anybody to misunderstand me.

I have yet to see any rulings about the Dinar and capital gains from the IRS. If such is available, they should be presented for all to see. My CPA and tax attorney both say ordinary income as well as many on these forums. It would be great to be otherwise but until there is physical proof I'll stick with what I know.

This is form a person who commented on this article...nice read.

This History lesson is intended to educate people that want to learn the truth behind what will be the largest single financial event of our time…. the pending Revaluation of the Iraqi Dinar, the currency of Iraq. The ramifications of this event will change world This History lesson is what’s known as, The Plan, the most brilliant example of International Finance based on Fossil Fuels, Currency and Politics the world has ever seen and it was orchestrated primarily by former Vice President Dick Cheney, former Chairman of Halliburton, the leading Oil Services Company in the world AND Key Members of the Federal Reserve. For those of you that don’t know, The FED is its’ own independent corporation owned by some of the wealthiest families in the World. The US Congress has no say in its internal or external policies! The FED helps maintain economic stability in the world through a network of Central banks!
By the end of this you’ll fully understand what the FED and the US Government have been doing behind the scenes for the last decade in Iraq and what’s about to come to fruition for the US as the leader of the Coalition forces that freed Iraq from the tyranny of Saddam Hussein. You’ll recall, Iraq, under Sadam, went on a rampage in the early 90’s and invaded his neighbor, Kuwait where they pillaged and then burned the oil wells on the way out as the US chased him back to Iraq under President Bush Sr. The United Nations then severely punished Iraq by putting economic sanctions on the Country that helped devastate their economy driving their currency, the Dinar, from a value of $3.22 per Dinar to the current low of 1/10th of a penny! This is what I call the “Ultimate Paradox”, where you have potentially the richest country in the world with a currency that is basically worthless! Because of Sadam’s actions in Kuwait and the brutality he was showing against the Kurds in northern Iraq, the US was forced to make a political, military and humanitarian move to extricate him from power. Those were the altruistic reasons that were given by our Government but the real reasons were to protect our supply of oil and make huge profits, as we are currently economic & political hostages addicted to oil.
This is where Chaney, Bush and leaders of The Fed came up with The Plan, a brilliant strategy, as you’ll learn, involving Oil, Currency and Politics that was a way for us to get back into Iraq and protect our oil interests, create trillions of dollars of profits and try to have the Iraqi Government become a Democracy and bring political stability to the region without seeming to be American Imperialists!
Chaney created a tremendous amount of fear that there was a possibility Sadam had Weapons of Mass Destruction and the US had to get back into Iraq quickly with military force and put an end to his regime. The US took this plan to the United Nations and got approval for an invasion into Iraq to stop this maniacal leader! The next thing you saw was on CNN with bombs bursting over Baghdad while the US invaded Iraq! Within a few days, we had control of the Country and had chased the Iraqi Army and Sadam underground. The rest is history, as Hollywood even showed you its rendition of The Plan in the recent movie, The Green Zone, starring Matt Damon.
You see…. they never found any WMD’s but when the US got back into Iraq we started spreading the seeds of Democracy in a Country that goes back centuries in the Bible known as Babylon and is the origin of the Garden of Eden. This country has always been violently split by three religious tribes: The Shiites, the largest of the 3 tribes, the Sunnis and Kurds that have never been able to get along. However, within 2 short years the first “democratic election” was held under US supervision and 83% of these tribes finally agreed on one thing and that was, freedom! They all risked their lives by sticking their index finger in an ink well marking themselves as a voter…..think of the magnitude of that statement!
On March 7th 2010, Iraq held its second election, this time without much US Intervention and once again over 80% of the people voted showing their thirst for freedom. After earning the un-profound distinction of being the longest interim Government in History the Parliament is now in full session and finally named Nurial Maliki, former Prime Minister, as the new PM after he had lost the popular vote back in March to his Sunni Competitor, Allawi. In the true spirit of a Coalition Government, Allawi, accepted the powerful position of President of the newly formed National Council. Maliki’s power has significantly been reduced from his last regime. Alawi will also have a veto power over any of Maliki’s proposals, which is a huge compromise and probably the reason the Kurds went along with keeping Maliki in the now somewhat “figure-head” PM position. The final details of this new democracy are finally being ironed out!

This past December the United Nations Security Council lifted the Chapter VII trade restrictions that Iraq has been under for many years that will now allow them to have Commerce with the outside world. Ladies and gentleman, this is major progress in a macro Economic event that is evolving before our very eyes!
It took nine months of “political persuasion” to form the Government, which was an absolute pre-requisite before a Revaluation of the Currency could become a reality! The Budget is in the final process of approval…However, the missing major factor is…the rate! In my opinion, the rate has been decided based on the intrinsic values of their natural resources and the amount of Dinar in circulation. It also has been approved by the CBI, IMF and the FED so now it’s a matter of getting all the “talking heads” together to decide when to pull the trigger. All you have to know is that the RV is imminent! It literally could happen in the next few days or in the next few months but it will happen and when it happens, it will affect all 4 corners of the world
There’s much Intel coming out of Iraq on a daily basis… some based on true facts and much on pure “smoke” but there’s no way that the pending Revaluation can be kept quiet as there’s just too much co-ordination and things to accomplish on multiple fronts before the “blessing” becomes a reality. However, one thing for sure is that a Democratic Iraq without economic sanctions can start constructing the infrastructure of the next international economic “super power”! As the world’s fastest emerging economy gets rolling it’ll help put an end to the world wide recession! Consider there are now over 4000 Contracts already in place from billions to millions that are ready to start! Do you think they’ll be paid with a Dinar valued at 1/10th of a Penny?
Back in December of 2009 Iraq invited the top Oil Companies of the world to come in and bid on the oil drilling rights. Long story short, Iraq received hundreds of millions from the “bid process” and then the oil companies were awarded contracts from a low bid of $1.15 a barrel to a high of $4 a barrel in various areas throughout Iraq. This means at the current price of $95 per barrel, Iraq will receive between $91 and $93.85 per barrel while the oil companies put in the infrastructure, drill the wells and lay the transmission pipelines to the ports! Iraq will benefit greatly as the price of oil escalates going forward as many countries currently hold Dinars and will become customers for decades!
It’s important to now understand who controls the outstanding Iraqi Dinars, which some estimate at 26 trillion. Actually, various countries, including the US, UK, China, Russia, etc and Central Banks around the world control approximately 55% of the total outstanding Dinars with the US is estimated to have 3.7 trillion in its coffers in D.C.! Iraq has 42% for their own internal economy while only about 3% are in the hands of speculators like us! There is much at stake here with oil and the Dinar and that is the value of the US Dollar! The FED controls the Central Banks around the World and is NOT about to give up control of the Dollar and the Dinar is their vehicle to maintain that control!
If you look at the other Gulf countries they all have thriving economies based on their oil production that has allowed them to construct magnificent architectural oasis’ in the middle of deserts. Only Iraq and Iran have been stuck in the Stone Age primarily because of their religious and political differences that have paralyzed them. The FED and US Government already know that Iran will self destruct as Iraq becomes an economic power house!
Just the development of Iraq’s basic infrastructure is enough commercial activity to give the world the “economic shot of penicillin” to lead us out of a recession and strengthen the US Dollar. Again, the Fed will not let the Euro or any other currency harm the Dollar. Imagine the economic boost just from all the individuals that’ll start spending their new found wealth!
We investors have been patiently waiting for the RV of the Iraqi Dinar. Kuwait had their own RV back in the 90’s when their Dinar went from 10 cents to over $3.30 per Dinar. Just two months ago the Kuwaiti Dinar had a Revaluation out of the clear blue as it RV’d to $3.58. This could be a major hint on the pending rate of the Iraqi Dinar as Kuwait has always said they did not want the Iraqi Dinar to be one penny than theirs!

The Revaluation of the Iraqi Dinar will happen on its own time frame as it is a macro economic event that has tremendous consequences that will affect the entire world

I can agree that the use of the word SCAM does not fir this investment, as some folks have already doubled their money, BUT,

Dr. Linda, you statement "we have already had several IRS rulings on our investment that there will be a 15% CAPITAL GAINS TAX, and that THIS IS NOT ORDINARY INCOME!!"

I have asked in different forums, different times as to where are these rulings. I have found no one, to ever produce one, tlak about, dicuss, but actually have one, not yet, or working on it is what I have read.

My long time cpa researched it and put it plainly, one year and one day, long term Cap Gains, less than that ordinary income. Now he could be wrong, but we need to see it in a IRS ruling to protect ourselves.

Now is good
Rantings from north of sixty

This came directly from the IRS in a post a month ago...hope it helps...

1. The first question of number one on most of our lists which concerned just how are we to be taxed on our currency transaction. He mentioned (2) publication that he would be using to answer this question. Pub 525 and Pub 550. His first question to me was did I purchase the foreign currency using a futures contract and then also mentioned 1256 contracts. I said no contracts. I then went on to explain exactly how I purchased my foreign currency, that it was sent to me from a foreign currency dealer here in the United States via Federal Express and I paid for it using a money order. He said if my gains were less than $200 then I would not owe any taxes. I said it will be over $200 gain. He then said you will be taxed as capital gains. I asked him what the tax rate would be ? He asked me when did I purchase the currency and I told him. In my case I have held my currency for well over a year. I told him I had been told that it could possibly be regular income ? His reply was no - Capital Gains. I asked him what publication and paragraph would I use ? He lead me to Pub 525 on the internet and page 33 of that publication then had me find Foreign Currency Transactions.

I asked him so what is that Pub 550 you had mentioned ? He said that is if you purchased your currency using a futures contract. I said I did not do anything like that. He said then you will file this transaction on Schedule D - Capital Gains and Losses.

Ducky....that was a VERY NICE summary of reality as I see it also....


I say GO Dinar by Monday !!!???

tom3215

tonytthor,

Thank you,

I will send your post along. I have some olde than a year, sme not, and sme friends less than a year, But at the way this is going along, they could all be older than a year by the time it rv's.

Who knows?

Again thanks,

Now is good
North of sixty

IRS Pub. 525 page 33


Foreign currency transactions.

If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.


Short and simple, rare of the IRS,

Now is Good
North of sixty

Thanks Duckyboy! Very interesting read!