Is The Iraqi Dinar Worthless Paper Or Maker Of Millionaires? - Forbes Magazine 2011 - Opinion Piece

Below is an "opinion piece" written in July 2011 by Forbes Magazine contributor, Robert Green, CPA. Following it, is a postscript to his original article. I have also included the link for the "comments section".


Is The Iraqi Dinar Worthless Paper Or Maker Of Millionaires?



Jul. 27 2011 - 8:40 am | 1,498 views | 0 recommendations | 1 comment


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?

LINK TO RESPONSES IN REGARDS TO THIS ARTICLE: (former site member Duckyboy, was the first to comment)
http://www.forbes.com/sites/greatspeculations/2011/07/27/is-the-iraqi-dinar-worthless-paper-or-maker-of-millionaires/#comments_header

Postscript. After reading several good comments on this blog exposing the buy Iraqi Dinar get rich quick scheme as a scam, I want to make it very clear that I also believe it’s a scam. My intent for the original blog was to answer tax questions about holding physical currency as an investment, not to drill down into the Iraqi Dinar scheme. I may do just that in a follow-up post soon. -R.G.

http://www.forbes.com/sites/greatspeculations/2011/07/27/is-the-iraqi-dinar-worthless-paper-or-maker-of-millionaires/#undefined

right now the dinar is worthless but in the future in will have value how much is anyones guess. for most people holding smll amounts you will not be millionaires but for others yes. an example if ten cents you will hve to have ten mil for a mil us but after taxes you still would not be a millionaire but on the flip side you investment of a mil for 800 dollars and get a 100 thousand dollars i will take any day of the week

IMO whenever I here talk about the dinar being a scam i cant help and think about how wrong that statement is.First being that if it were to become a scam then a few major well known banks are going to be in a hurting situation,secondly the US at one time also was sporting bills in the 500,1000,10,000 and larger denoms because it was also new and worthless.In my veiw the only way this could become a scam with no repercussions for the sellers would be to get Iraq to go back into a civil war and destroy it back to the days of 2003.Hold fast as eventually this thing will pop back

Im a naysayer. I think its close to 99% chance that its a lie.......It was a bush plan and bush is just a plain ole bad guy. He has no interest in either being responsible or accountable. He has no interest in the well being of anyone and his family is the global elite. As much as people do not believe this, just do a bit of homework. When people realize just how bad the US gov is, then the rest of the pieces will fall into place. There is no right or left, only the perception of one. The goal is the empowerment of the global elite. No more no less....Our only chance is for greed to set in, but I dont see it. They have all the $ they need. The globalist agenda(complete control) is their only interest. and they are well on their way. Remember GBush sr......a new world order......"and we will succeed"...They tell us whats up...people are just to lost to believe it.....such a shame.....our children will suffer.....

I would think a scam is not being able to get your money back.. At least you can cash out somewhere right now... always have been able to .. There is a RD or a lop possibility that could occur but you have to listen to yourself and determine what "you" believe .. Everything else besides faith in God - there's no need to worry. No one will know until it happens anyway.

the only ones who know for sure are our famous gurus

Lol

nothing i didn't already know<<<>>>TLF

We must remember, not everyone holding dinar is a veteran dinarian. There are newbies all the time that need to see all sides of the box.

lso this is one persons opinion and i believe he also owns investment busisness