Addressing the hype surrounding the Iraqi dinar to prevent more people from being misled about this investment. We will be updating this blog periodically so please join to be notified about the updates.
Last year one of my readers named F8 provided a link to a dinar site called RolClub where a pumper named shotgunsusie was saying the RV was done and the rate would go live by Oct. 1, 2006. A subsequent post mentioned a target of $1.68 for the revalue. Another member named rentonrolr provided a link to the financials at the CBI website and said that $1.68 was impossible given the (at that time) money supply of 10 trillion dinar in circulation with an M2 of 17 trillion. He was banned shortly thereafter. It's amazing to read this from seven years ago and see how little has changed. Sure, the numbers are different. The money supply has grown, there are hundreds of gurus now, dozens of dinar forums, and the dinar has gone up in value about 20% (due to the crawling peg policy from Nov. 2006 - Jan. 2009 that allowed them to get inflation under control) rather than the 250,000% increase Susie was pumping. But the basic argument of whether Iraq can RV to an amount that would provide a windfall to dinar investors hasn't changed, and of course people who point out inconvenient facts are still called names and banned from dinar forums. Reading through this thread was a real eye-opener.
Well the fact is you don't have to sell dinar to make money on the dinar. You can make money by generating ad revenues based on traffic to your site. Search engines take into consideration a number of factors to determine search engine ranking and which results to display in which order. A site that draws a lot of traffic will show up ahead of a site that doesn't draw as much, but they usually have to have fresh content with matching keywords to appear in the results. That's why these forums allow (or perhaps manufacture) rumours despite the protests of their members. The rumours get them search engine results which translate into hits on their sites which means ad revenues.
Let's take a look at a few dinar sites that deal in rumours.
TerryK's site The Get Team doesn't sell dinar but according to Website Outlook, they pull in an estimated $28 a day and the site is worth over $20,000.
The Dinar Daddy site reportedly brings in almost $70 a day and is worth around $50,000. When I wrote about them two years ago they were estimated to be hauling in over $100,000 a year so they've apparently fallen on hard times as well. The owner in this case also sells dinar (or at least his wife does), but those figures aren't included here.
Keep in mind that these figures are only based on an automated assessment of ads and traffic and don't include things like VIP programs, wealth management plans, books, coffee cups, t-shirts .... etc. Nor do they include revenues from other sites owned by the same people who link to those sites. Nor do they include any alternative means of compensation from dinar dealers. So the next time you hear somebody say that they're not a pumper because they don't sell dinar, tell them about Website Outlook.
Well another month has come and gone without the RV, and yet for some reason dinar sales were up and dinar prices rebounded. I'm guessing it has to do with the increased expectation of an RV brought on by Iraq's release from UNSC sanctions, but as many of us have been pointing out there was no reason to conclude that the IQD was prevented from increasing in value with the sanctions in place and there's no reason to conclude that the IQD will increase now that they're removed. In other words all the Chapter 7 guru talk was nothing but hype. BS. Caca del toro.
As the excitement about the lifting of Chapter 7 and the potential of an RV grew, talk of cash in groups with the best negotiated rates increased. Everybody seems to have negotiated the best rate. How is that even possible? A word to the wise here .... don't fall for any of this pre-RV stuff. Seriously, do you listen to people tell you how to manage your newfound wealth just because you bought a lottery ticket? Do you buy trust programs? Do you sign up for any special investment plans or hedge funds? Or do you just decide not deal with all of that until after you win the lottery?
Folks, all of these people are out for themselves. None of them are just trying to help you dinar speculators prepare for life as a millionaire. They're just taking advantage of people who have already been duped on the RV and are presumed to be easy prey for other investment crap. The most baffling thing to me in all of this "group" talk is that the members at Dinar Vets are calling BS on it and yet many of them are paying $17/mo for VIP which includes the promise of the best negotiated cash in rates in the sales pitch. I can't see how Adam Montana has the moral high ground here. What am I missing?
My recent post "Don't Listen to Gurus" did surprisingly well as it prompted a discussion of the currency reform plan and currency valuation in general. My hits almost doubled over the past couple of weeks and I noticed that people were even talking about it in forums that won't allow a link to my blog. To those of you who participated in the debate I would like to express my appreciation for the way you conducted yourselves. For the most part the discussion was civil and focused on facts. Enorrste also likes to claim the moral highground and say things like "I am presenting you with facts and you're just insulting me and calling me names", so I wanted us to deny him that option as much as possible. To his credit Steve was at least willing to show up here and defend his views, unlike any of the others I've written about. And he didn't delete all of his comments like he did in his appearance last year, although I had it all saved just in case. ;-)
I think the main reason my readership is up is because people were typing the words "dinar gurus" into Google and my post "Don't Listen to Gurus" came up on the first page. I worked very hard to get the search engine ranking that I have so I'm glad to see it paying off now. For those of you who are new here, welcome! You won't find any rate and date predictions, secret intel, bank stories, boots on the ground nonsense here. Just the cold, hard, facts with documentation out the wazoo.
One article that people were excited about in July was the one talking about bringing the dinar back to its valuation of $3.33 or so from thirty years ago. First of all, this wasn't a policy statement. It was merely a desire expressed by unnamed experts inside of Iraq who went on to state that $1 is more realistic. And second, bringing the dinar back to nearly $1 has already been stated a hundred times in the currency reform plan where the IQD will be replaced in a redenomination by a new dinar worth $.86. So I don't really see anything new here. It's basically another lop article that gurus are trying to spin into proof of the RV.
TonyTNT, newly dismissed from his role as chief buffoon at PTR, launched his own site and conference call platform as he told everybody that the RV was occurring at the closing bell July 24. Listening to this douchebag in the first ten minutes or so you can hear him chuckling along with his "callers" at the obvious prevarications and fabrications being shoveled out to the gullible.
I received an email a few weeks ago that I thought I'd share. This kind of thing happens far more often than it should, and it's part of why I started this blog.
You may be wondering what my involvement in the Dinar thing is - I'm happy to say that I have invested exactly $0.00 in it, I found out about it through word of mouth. My ex-wife had been acting a little weird (for her) during the months of April and May, hinting around that she was about to come into a whole lot of money. She finally mentioned to me that she was invested in a business opportunity involving Wells Fargo Bank, but that she was in a non-disclosure agreement and could tell me no more. Then, around mid-June, she asked me if I and my parents would be willing to act as the executor of her estate in the event of something happening to her. My first thought was "What Estate? She owns basically nothing". Well, I really had to start prying after that and she eventually admitted to me that a friend of hers "gave" her a sum of 1 million Dinar, and also a similar sum of Vietnamese Dong and Indian Rupees. This was just before the Chapter 7 business flared up. She was expecting that 1 million Dinar to, in the next few days, suddenly be worth $1 million US dollars and then she would go down to Wells Fargo, cash in, and all would be wonderful - I'm sure you've heard similar things before. I asked her where she was getting her info and she mentioned several sites - Dinar Guru, Dinar Daddy, etc. She also has been talking about how wonderful and accurate OkieOilMan is with all his predictions. There for a while I was keeping a watch on the Dinar Guru site just for the entertainment value but it got stale pretty quick.
At this point, she has moved into a hotel after skipping out of the lease on her apartment, she abandoned all her furniture, she has about 2 months of unemployment support left, but any day now it's all going to turn around. It's scary to see how much she has swallowed the Guru BS and she isn't going to listen to me or anyone else who says anything different.
Well let me just say congrats on not getting duped, and good luck with the ex. You're not alone in this, I assure you.
And finally I would like to talk about the resurgence of violence in Iraq. July was the deadliest month in Iraq since 2008. Gurus are quick to point out how many murders the US has every year while insisting that things aren't so bad in Iraq, but this is a bogus comparison. The violence in Iraq is terrorism. It's not one-on-one inner city violence that poses no threat to stability. It's targeted violence to increase sectarian division, weaken the government, and discourage foreign investment in Iraq. And it's working, folks. As the article I quoted in June pointed out, companies are pulling out of Iraq For anybody to dismiss this as no threat to political and economic stability or the value of the currency is disingenuous at best. And no, the RV won't end it. That's another guru lie.
What we're witnessing is what dinar speculators signed up for. They took a chance on the dinar, hoping that things would turn around in Iraq which would somehow lead to significant gains in the value of the IQD. Well things are getting worse when it comes to stability. If they don't improve soon something will have to happen. Either Iraq gets things under control or the US sends troops back in until they do. The alternative is civil war, and a civil war in Iraq would defeat the whole purpose behind our effort to create a thriving democratic state in the region. It would leave a vacuum for anti-American forces to fill. Let's all hope for the best in Iraq, regardless of our position on the dinar. For the good of Iraq and for our own national security, this effort must succeed.