Douchie for June 24-30

I started doing this blog in September of last year to address the crap that was being spewed by pumpers and gurus in the dinar community.  Since then the BS has only intensified if anything.  Speculated rates are going higher and higher, not based on anything substantive but likely just to draw traffic.  You would think that after years of useless intel, baseless rumors, unrealistic predictions .... etc. leaders in the dinar community would have had enough and would have taken a stand against it but unfortunately very few have.

Last Friday night there was a conference call where several very informed dinarians discussed the issues of liquidity and the Kuwait "RV" in a very honest and eye opening manner.  Proteus, the leader of the revalue.us dinar hub hosted the call, accompanied by his right hand man Patriot.  Other panelists included Conrad, Scooter, Enoch8, Marcus Curtis, TenMillion, Chuckles, and Russell.  The gist of the conversation is that Iraq is not obligated to exchange US dollars for dinars outside of their country, which leaves that task to secondary institutions like banks and currency dealers.  Since very few banks are even dealing with the dinar any more that leaves only the currency dealers as a means for investors to exchange dinars for dollars.  If the dealers aren't able to get in to Iraq in the event of a redenomination people who hold dinar could very well be stuck with truly worthless currency.  This is a subject I feel needed to be addressed.  After all, as long as the IQD is not internationally recognized it really doesn't matter what it's valued at.  If it goes up to $10 but you can't spend it or exchange it for dollars what good is it? 

I applaud these guys for having the gonads to take on this topic, but there were a few out there who weren't quite as thrilled to hear the subject addressed.  Breitling, Dan and Tony from PTR, and the Gatekeepers all responded with criticism, ridicule, and outright animosity.  It seems odd to me that with all of the hype and nonsense prevalent in the dinar community these people chose a conference call about a legitimate concern to express their outrage over.  Where's the outrage over Okie's weekly RV announcement?  Where's the outrage over all of the lies and rumours designed to promote dinar sales and traffic to dinar sites?  Where's the outrage over the obvious fraud that this blog has exposed to the dinar community?  Why save your venom for people trying to have an honest discussion about a very relevant topic?  I suspect that the answer lies somewhere in the fact that the pumpers don't pose any threat to anybody's bottom line.

Here's the document they were referencing.  Articles 32 was the focus of the discussion, which says among other things:

1. The CBI shall have the exclusive right to issue banknotes and coins intended for circulation in Iraq. Banknotes issued under this Article shall be the first charge on the assets of the CBI. The CBI shall make appropriate arrangements for the issue of its banknotes and coins for circulation in Iraq. Banknotes and coins issued by the CBI and intended for circulation in Iraq are not: promissory Notes, Bills of Exchange, or any other type of commercial document under the applicable commercial law, and the CBI is obligated to honor them only as provided for in this Law.

Like many statements involved in this investment this is open to interpretation.  What was discussed in the call was the implications of a literal interpretation. 

The Gatekeepers chimed in on Sunday with an hour and a half filibuster from Vic1 (who referred to The Call Squad as The Shit Squad) and great economic analysis from Joey (who admitted that she didn't even listen to the call) calling Patriot a jackass and saying to him "... you disgust me."  The reason for her contempt for Patriot?  Apparently she's upset because he had the audacity to question many of the things that were presumed to be true about this investment but upon further analysis turned out to be unsupported by the facts.  She stated that he told her if there wasn't an RV by August 2011 he was going to take a break from the dinar.  What a concept!  They also seemed upset over a joke Patriot made about people slitting their wrists after listening to the discussion of the potential pitfalls of owning IQD.  I'm baffled as to how a questionable joke about bringing people back to reality is the greater sin than the constant fantasy feeding that goes on with most of these guys, GK included.

Also on Sunday Breitling responded in a knee-jerk fashion calling it "amateur hour".  He later removed that video but not before somebody snagged a copy of it and uploaded it to YouTube. 

Then on Monday he posted a replacement video where he claims that all participants in this conference call are still invested in the dinar and still believe in it.  Not true.  Marcus Curtis has announced on his forum that he has sold ALL of his dinar!  Chuckles sold most of his, too and has little confidence in it.  And Patriot says that he no longer believes in a big RV.  Breitling then goes on to say that there's no other side of the coin.  (A one sided coin?)  "Iraq is selling their currency internationally.  Countries have dinar in their foreign currency reserves.  END OF STORY!!!"  blah blah blah .....  No documentation was offered to support those claims, of course.

Dan from PTR responded on Monday with his usual stupidity claiming that the statement on the CBI website was referring to the old Saddam dinars.  Actually the CBI wasn't even around prior to the overthrow of Saddam.  Dan said he was offended because these guys disrespected all of the "real research" that he and his team do.  So Scooter, Marcus Curtis, Enoch8 ... etc. don't do real research but Dan and Tony do?  LOL!!!  I dare say every participant on that call knows more about this investment than Dan and Tony combined.  Then Dan says that the guys in the conference call said you won't be able to cash in without going to Iraq.  What they actually said was that it's a possibility that investors should take into consideration.  (33 minutes into the revalue.us call Patriot states that they're not saying it will play out that way, but you have to be prepared for anything.)  Then he went on to talk about the Kuwaiti RV (which never happened), saying that liquidity was a problem back then so Bush and Cheney set it up to where we won't have the same problem with this RV.  

Frank Bell from Dinar Banker stated in a message left for Proteus that the information presented in the call was essentially correct, although some of it could have been misconstrued.  He even stated that in a subsequent call with The Gatekeepers.  The point being raised isn't that Iraq is going to refuse to honor their currency or that they're going to pick and choose whose dinars they will redeem for dollars.  The point was that if Iraq redenominates and the banks don't accept dinar and it becomes problematic for dealers to provide an exchange service for dinar investors, there is no obligation on the part of Iraq to come over here and provide that service.  The dinar is not an internationally recognized currency and might not be for many years.  John Jagerson addressed the issue of liquidity in his videos three years ago, and now many are beginning to understand why.  Right now you can sell your dinar on ebay or sell it back to a dealer, but after the redenomination process begins what options will you have?  That's the question. 

Whether you agree or disagree with the opinions expressed in the revalue.us conference call the proper response would have been an equally honest and informative discussion of the issue rather than a regurgitation of forum facts and unsupportable assumptions based on pumper hype.  For their failure to do so the above parties (Gatekeepers, Breitling, Dan and Tony from PTR) are granted the first ever gang Douchie.