Douchie for May 6-12

This week's Douchie goes to Freeway Bill for saying:

5-9-2012   There is no document written and distributed by any bank that causes the validity of this investment to be in question... NONE! 

Really?  NONE?  How about this statement from Wells Fargo:

“Some investors are curious about the Iraqi currency as a potential investment. Expectations for the currency to significantly gain in value against the dollar repeatedly have been disappointed since its introduction in 2004. Considering the illiquidity and fraud risk, Wells Fargo Bank has no plans to trade in the Iraqi currency, and considering that Iraq remains a dangerous place with an uncertain future, we strongly advise investors against taking the risk of buying Iraqi dinar as an investment.”

http://www.theiqdteam.com/uploads/3/5/3/7/3537881/internationalmarketsweekly.pdf

Do the words "illiquidity" and "fraud" mean anything to you, Bill? 

This is from the BOA website:

"Bank of America, N.A. does not buy or sell Iraqi Dinar (IQD) banknotes, and currently has no plans to offer this service in the future. You may have read on the Internet or heard from friends that Bank of America, N.A. buys and sells Iraqi Dinar banknotes, or has plans to offer this service. This information is not correct.  We urge you to seek the advice of a competent, professional investment advisor before making an investment. You should treat with extreme caution any investment schemes you read about on the Internet, in chat rooms, or hear about from friends or acquaintances."

https://www4.bankofamerica.com/foreigncurrency/index.action?template=faqs#exchange_iraqi_dinar


Then there's this from the state of Washington Department of Financial Institutions:

"The Washington State Department of Financial Institutions is warning consumers about potential scams regarding Iraqi Dinar currency exchange services. While foreign exchange scams are not new, the sudden popularity with the Dinar and resulting consumer complaints to our banking partners is concerning."

http://www.dfi.wa.gov/consumers/alerts/iraqi-dinar-scams.htm

Okay, technically that's not a bank but a banking oversight organization, but the point is still valid.  But perhaps the most compelling statement issued by a bank that brings this investment into question came from the Central Bank of Iraq itself:

"According to a report from Al Sumaria News, Iraq’s Central Bank announced on Thursday that it is planning to delete the zeros from its currency, the Iraqi dinar."

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

In case you didn't know, "delete the zeros" in the world of economics has always meant "redenomination".  In the dinar world it's called a lop, and if they do that investors lose money on the spread and quite possibly lose everything if they're not able to exhcange their dinars for the new dinar or USD.  I'd say that qualifies as  "bringing the validity of this investment into question", wouldn't you?

Here's a memo from 5th 3rd Bank issued over a year ago:

"Effective Immediately, Fifth Third Bank will no longer offer the Iraqi Dinar currency for sale. Fifth Third offers foreign cash banknotes for the convenience of our customers who travel abroad. The bank does not intend for the service to be used as an investment vehicle. The increased demand for this currency due to rumors and speculation has made it difficult for us to manage within the parameters of the program’s intent, which is to provide currency for the travel needs of our customers. Due to the sourcing and customer service challenges this has caused, we are recommending customers in need of the Dinar make use of local currency exchange at their destination. All other currencies we offer will continue to be bought and sold as usual. We will continue to evaluate the Dinar as needed."

http://exchangetidbits.com/archives/2011/04/fifth-third-bank-notice-for-stopping-sales-of-dinar/


But apart from the actual memorandums issued for bank customers, the actions of the banks say it all.  One by one they've quit dealing with the dinar.  The gurus wanted us to believe it was because they knew the RV was imminent and they didn't want to let their dinars go, but that doesn't really explain why they won't buy them either does it?  I don't know about you, but if I'm having trouble finding a bank that will buy back my dinar I'm gonna question the validity of this investment. 

 I don't know why you guys make statements like this that are so easily disproven.  Maybe it's because you and your followers don't know how to use Google.  Or maybe you think nobody will bother to verify your "intel".  Or maybe you're just a douche.

.