And now to the week's other douchebaggery. With Ramadan now being the excuse for no big RV the gurus were kind of kicking back this week, so there wasn't as much BS as usual. Still there were a few conference calls that served up plenty of nonsense to try to keep the pump alive. This week's runner-up Douchie goes to TonyTNT and Gary from PTR. (Dan is on vacation.) They did a "no bull" conference call where among other things they said:
- The RV is already in the system and there are economic factors that will trigger the activation, and as they are pushing they are doing recalculations with whatever those factors are, and as soon as it hits a lot of bank people are expecting to go into action (Gary) Whoever designed this system should be fired. The RV has been hung up in this system for over a year now.
- The only way it can be a lop for us is if it's a lop for Iraq, which it can not be. The lower denominations they showed with coins two weeks ago prove they won't lop. (Tony) Iraq will need lower denominations whether they get to $.86 through a revaluation (which isn't possible) or a lop.
- Lots of bankers were retiring last summer because they expected the RV, but it has been held up. (It should have happened by now.) Many people are going to quit their jobs after the RV because they won't want to work for their measly salaries after becoming multi-millionaires. That's why the banks are putting out memos about this because they don't want to lose all of their employees. (Tony) Perhaps. Or perhaps they just got tired of scammers getting people all pumped up about buying dinar from them.
- Every country holds dinar in their reserves. (Tony) I must have missed that document.
- It's all done. The only thing we're waiting for is for things to calm down enough in the middle east. (Tony) And of course things are always volatile in the middle east so you've just provided yourselves with ample wiggle room when nothing happens. By the way, didn't Gary just tell us that economic factors were the holdup as it winds its way through the system? You guys need to compare notes.
- PTR has sources who talk to people in the US Treasury, the BIS, and the IMF. (Gary) Of course they do! What kind of gurus would they be if they didn't?
This week's winner is WangDang. On Sunday WD did a conference call where he said:
"Right now .... the most accurate number I can find is 37 trillion. That's chump change .... They had 27 trillion in circulation when their currency was worth $3.21 .... so 37 trillion is not a leap ... these people are filthy lowdown rich"
"The actual amount that's in circulation ... he's (Shabibi) not concerned with that ... he's got that covered with gold and oil .... that 37 trillion is a drop in the bucket to these people's wealth ... he can afford it or he wouldn't have printed it" (50 min. in)
Now if Iraq had 27 trillion in circulation at $3.21 that means they had a monetary base of almost $87 trillion which most economists would tell you is more than the wealth of the entire planet. If you'll do a bit of research I believe you'll find that Iraq's GDP has never been higher than it is now at around $120 billion. Would it make sense for a country with an economy of that size to have a monetary base 725 times larger? ($87 trillion/$120 billion) I believe the figure back then was more like 27 billion dinar at $3.21. I would give WD the benefit of the doubt that he just said trillion when he meant billion except for the fact that he said 37 trillion wasn't a leap.
Then about 91 minutes into the same call he was explaining the "delete three zeros" articles to a caller named Dave when he said:
"A lop can never occur because first of all this country is too financially wealthy and they're too resource wealthy .... so they would never be able to justify a lop"
I think most people would consider Russia to be wealthy in resources, and they're certainly wealthier than Iraq financially. The only country that produces more oil than Russia is Saudi Arabia. The only countries with more billionaires than Russia are the US and China. Russia's GDP is about $1.5 trillion compared to Iraq's at about $120 billion. And guess what, WD? Russia lopped their currency in 1998. Lopping isn't determined by wealth in resources or finances or anything else. It's determined by whether or not a country wants to leave their currency in a hyperinflated condition or redenominate to make cash transactions easier. That's it.
"Iraq has not lost a penny ... we took their value from them ... they didn't have some catastrophic financial event happen in their country where their money went to zero... the United States went and petitioned the IMF and the UN and said 'please ... please turn off the value to these people's currency because if we make war against their government right now ... of Saddam Hussein ... and he has $3.21 on his table ... he can buy weapons around us, over us, under us, through us ... and he will continue to kill a large number of our soldiers .... they granted what we wanted ... they took the Iraqi dinar from $3.21 to zero."
I think most people would consider war a catastrophic event. But in addition to that Iraq experienced sanctions and the overprinting of their currency that caused hyperinflation. At the end of the conversation Dave asked WD about taxes and his response was "I'm not a tax person". It always amuses me when these gurus refuse to take tax questions because you should always consult a tax professional with your tax questions, but for some reason they feel qualified to tell people all about currency speculation. Dude, you're not a currency guy either. You're not an investment professional either. You're just a guy with a mic repeating crap that you've read and heard from other dinar people who aren't professionals either.
There's so much misinformation coming from this guy that it's stunning. First of all, "deleting the zeros" clearly means a redenomination or "lop". It's been done dozens of times over the past century to big countries, little countries, rich countries, poor countries .... doesn't matter. Currencies depreciate for a number of reasons, and when they decline in value as the dinar has they're problematic for cash transactions. That's why countries redenominate.
WangDang didn't provide one link to support what he said. Dave, if you're reading this please click on my links. I never expect anybody to believe what I say just because I'm such an honest guy. I expect you to question what I tell you and read the information for yourself. Your 25K dinar note won't be worth less than it is now until it is demonetized at the end of the alloted time frame for exchanging the old currency, but it will be replaced by a 25 note with the same value from a new dinar series. At the current exchange rate both will have a value of about $21.50. And no, it won't be worth $75,000 because Iraq isn't going to revalue to $3 any more than I'm going to marry Kim Kardashian, although I like my chances better.
Once again we have the blind guru leading the blind novice currency investor into the ditch. Maybe WangDang believes the tripe that his sources are feeding him, or maybe he's just making it up. Either way people are getting hurt, and for that he's this week's Douchie winner for the first time. If he keeps this up I'm sure it won't be the last.