"Dinar Recaps has never taken one penny from any Dinar Dealer for any direct advertising or any other reason."
http://www.dinarrecaps.com/1/post/2013/08/message-and-disclaimer-from-dinar-recaps.html
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.
http://www.websiteoutlook.com/www.thegetteam.com
Dinar Detectives also doesn't sell dinar but it looks like they're making about $31 a day and are worth about $23,000.
http://www.websiteoutlook.com/www.dinardetectives.com
Dinar Vets doesn't sell dinar but apparently they make about $40 a day and the site is valued at nearly $30,000. The revenues there took a significant hit after the owner was exposed as a fraud.
http://www.websiteoutlook.com/www.dinarvets.com
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.
http://www.websiteoutlook.com/www.theiraqidinar.com
Dinar Guru also doesn't sell dinar but Website Outlook says that their revenues are about $117 a day and the site is worth about $85,000.
http://www.websiteoutlook.com/www.dinarguru.com
And finally, Dinar Recaps doesn't sell dinar but their estimated income according to Website Outlook is about $225 a day with a website value estimated around $164,000.
http://www.websiteoutlook.com/www.dinarrecaps.com
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.
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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.
http://www.websiteoutlook.com/www.thegetteam.com
Dinar Detectives also doesn't sell dinar but it looks like they're making about $31 a day and are worth about $23,000.
http://www.websiteoutlook.com/www.dinardetectives.com
Dinar Vets doesn't sell dinar but apparently they make about $40 a day and the site is valued at nearly $30,000. The revenues there took a significant hit after the owner was exposed as a fraud.
http://www.websiteoutlook.com/www.dinarvets.com
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.
http://www.websiteoutlook.com/www.theiraqidinar.com
Dinar Guru also doesn't sell dinar but Website Outlook says that their revenues are about $117 a day and the site is worth about $85,000.
http://www.websiteoutlook.com/www.dinarguru.com
And finally, Dinar Recaps doesn't sell dinar but their estimated income according to Website Outlook is about $225 a day with a website value estimated around $164,000.
http://www.websiteoutlook.com/www.dinarrecaps.com
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.
I really think when it comes to The Iraqi Dinar you have one of the best most informed sites on the web. Keep up the excellent honest work.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteGood info, Sam. Don't forget the slimy lawyers and "financial planners" that troll these sites looking for referrals. That's the whole reason some of these sites do conference calls. They introduce "wealth planning experts" to set up worthless trusts and international business corporations for the imaginary millionaires. I wouldn't be surprised if there were agreements between these sites and those firms for each referral or lead that gets generated off of these calls. There's no doubt these decepticons make oodles of money pumping the lie of an RV or worldwide global reset.
ReplyDeleteNot to mention all of the personal information probably sold as leads to the next scam enterprise looking for gullible "investors".
ReplyDeleteThe whole dinar setup is based around deception and profiting from people's ignorance.
Just read an article last week that said they would wait until after their elections to "delete 3 zeros". Election are next March I think. I think they will also wait until the beginning of a year to lop. So that means Jan 2015 at the earliest. That's if they can get a Gov seated by then. Last time they had elections didn't it take a year to figure things out.
DeleteThe scammers have at least a year and half to keep this crap going.
So how much does your site make? Just wondering. And do you donate it all to a charity? I've read this site a few time but not in depth. And since you are posting there earnings, how 'bout yours.
ReplyDeleteHow many hits do you think this site gets compared to those others.
DeleteI also don't think I've seen Sam pushing any financial services or private memberships here. He doesn't even have any cool T-shirts or coffee mugs for sale.
There's an idea Sam. Make up a few Dinar=Scam t-shirts. I'd buy one and wear it. I could only hope to be confronted by a typical dinaraholic armed only with the knowledge he/she has learned on dinar sites.
This site is not built on dragging people along to some non-existing pot of gold.
DeleteI know a fair amount about Internet marketing, and Id bet he makes a few hundred dollars a month off of the ads you see on the sides. Good for him; hopefully he buys something nice with it, and I bet he sleeps real well at night knowing that he's helping turn some people away from a definite scam...
Wendy, I've made enough to recoup what I lost on the dinar. Maybe a little more. But I'm certainly not pulling in $200 a day, and I don't post "rumours" that are actually lies in order to generate traffic. And for the record, I didn't post anybody's earnings. I post an estimate of their ad revenues according to Website Outlook, which is all public information.
DeleteDave - My traffic recently is the highest it's ever been. I think I'm going to start doing some of those things. Why not?
DeleteNina - Thanks for the kind words, but your estimate is tad high. Hopefully not for long, though.
To a certain extent, the dinar mania is analagous to the California gold rush in the 1840's and 50's. Only about 1 out of every 1,000 prospectors found enough gold to make a living. The real wealth was made by the owners of the hardware stores, brothels, and liveries. When asked, I'll guarantee you the hardware store owner never told a prospector that there wasn't gold in the hills. His answer was always "That's what people say." or "That's what I hear." He was smart enough to know that he had to perpetuate the story whether it was true or not. The dinar site operators are just the modern day version of the head pimp of the whorehouse. The difference, of course, is that the modern day dinar prospector has a 0 out of 1,000 chance of striking it rich.
ReplyDeleteIts great to see all the bickering over at DinarRecaps. All of a sudden, many people are concerned that the "gurus" are providing false information. I truly believe that DinarDouchbags has something to do with it. I hope the word spreads even more; I think you're really on to something here!
ReplyDeleteThere is no question in my mind that the scam is driven by a mix of internet marketing techniques and strategies, all designed to capitalize on the greed and desperation of novice currency speculators.
DeleteHere is kaperoni and Enorste latest..........
ReplyDeleteEnorrste made a post tonight on this topic. He having an economics degree brings a better perspective I think...To answer your question, it looks like bonds play a big roll as well in raising the value.
KAP called me today, 3 times (!), to get me to chime in here. So here goes.
When I first read this short article I was somewhat disappointed because I felt that it might be dealing with the ages-long problem of the falling value of the dinar against the dollar. You all might recall that I picked one of the previous articles apart and said that it didn't refer to an RV or even a free float, but instead only of CONTROL of the currency rate.
Then I decided to follow KAP's totally prescient advice (that's a compliment!) and follow up with some research from the IMF. Here is what I found, thanks to KAP:
"By buying or selling bonds, bills, and other financial instruments in the open market, a central bank can expand or contract the amount of reserves in the banking system and can ultimately influence the country's money supply. When the central bank sells such instruments it absorbs money from the system. Conversely, when it buys it injects money into the system. This method of trading in the market to control the money supply is called open market operations."
This is directly from the IMF. Now we have the CBI stating that they will move to "open market operations." They are, clearly, referring to the very quote above in terms of meaning. What does that mean for us? Here comes the good news, folks.
You all may recall that I had a debate with Din************.com in which they said, unequivocally, that it would be impossible for Iraq to reduce the money supply. Well, guess what? The IMF has shown conclusively that "open market operations" clearly will allow the CBI to reduce the money supply. All they have to do is sell bonds!
Now, it gets better, because we know from many months ago that the CBI stated that their plan was to reduce the money supply, right? But we have always thought that the only way they could do that was to buy back the large denoms, right? NOW we see that the means to buy back the large denoms is to sell bonds. People will buy bonds with large denominated dinars. The CBI will destroy them. Therefore there will be no "coersion" as the Douchbags thought. It will be, quite simply, OPEN MARKET OPERATIONS! Duh!
They will be able to reduce the money supply by creating "debt" out of thin air, namely through selling bonds. The US has been doing this for over a generation. Iraq HAS NO DEBT, so their is very little risk for them in doing this, right?
The bottom line is that the CBI is announcing that they are about to follow the IMF "open market operations" program to a "T."
What does that mean? It means that they will begin to reduce the money supply! And what does that mean? It means that the VALUE of the remaining money will RISE. And what is the goal? Clearly stated, it is to get the dinar up in value BEFORE next June.
Now, you have to start somewhere before you get to BEFORE June, right? I think this article is saying that they are about to start. That means "free float." Sorry, Douchebags, but you lose and we win!
You all may recall that I had a debate with Din************.com in which they said, unequivocally, that it would be impossible for Iraq to reduce the money supply.
DeleteNo, we didn't say it would be impossible to reduce it. Money supplies go up and down all the time. What was stated was that it was impossible to reduce it enough to RV 1000 times the current value. Only a lop would allow them to reduce the money supply enough to have a currency valued at $.86.
Well, guess what? The IMF has shown conclusively that "open market operations" clearly will allow the CBI to reduce the money supply. All they have to do is sell bonds!
But the CBI didn't say that they will reduce the money supply by selling bonds. They said that they would do it by redenominating.
Now, it gets better, because we know from many months ago that the CBI stated that their plan was to reduce the money supply, right?
Right. By redenominating.
But we have always thought that the only way they could do that was to buy back the large denoms, right?
Wrong. They would do it by replacing the IQD with a new currency just like they told us repeatedly.
NOW we see that the means to buy back the large denoms is to sell bonds. People will buy bonds with large denominated dinars. The CBI will destroy them. Therefore there will be no "coersion" as the Douchbags thought. It will be, quite simply, OPEN MARKET OPERATIONS! Duh!
They will be able to reduce the money supply by creating "debt" out of thin air, namely through selling bonds. The US has been doing this for over a generation. Iraq HAS NO DEBT, so their is very little risk for them in doing this, right?
The bottom line is that the CBI is announcing that they are about to follow the IMF "open market operations" program to a "T."
What does that mean? It means that they will begin to reduce the money supply! And what does that mean? It means that the VALUE of the remaining money will RISE. And what is the goal? Clearly stated, it is to get the dinar up in value BEFORE next June.
Now, you have to start somewhere before you get to BEFORE June, right? I think this article is saying that they are about to start. That means "free float." Sorry, Douchebags, but you lose and we win!
Tell ya what Steve. If the IQD increases in value by so much as 20% by the end of the year I'll buy you a bottle of Russian Standard Gold vodka. If it's up 50% by June of 2014 (without a lop) I'll buy you two bottles, award myself a Douchie, and never blog about the dinar again. Their stated policy is exchange rate stability, not revaluation or appreciation. They've been following that policy for 4 1/2 years and there's absolutely no reason to believe that they will change that policy for the foreseeable future.
He thinks selling bonds reduces the money supply? Ha! What happens when those bonds mature? People that buy bonds expect to be paid back at some point. That money comes from somewhere. Countries borrow money fund budget deficits not to reduce their money supply (it's the same reason everyone borrows money). In fact, borrowing money doesn't reduce the money supply one bit. Borrowing money and NOT paying it back is the only thing that reduces the money supply. Is Steve suggesting that Iraq intends to borrow a bunch of money and never it pay it back so some speculators in the US can make a bunch of money? It's laughable. Economics degree? Hardly? This is economics 101 and he clearly doesn't even understand that. The guy is a complete and total fraud. I wish he'd come back on here and debate it with us. I guess he'd rather debate us through his forum of ignoramuses.
DeleteThis clown still thinks there's something significant or different about the "large denomination" notes. There isn't. It doesn't matter if someone has one 25,000 dinar note or five hundred 50 dinar notes. He still has 25,000 dinar! The denominations of the notes don't matter. It doesn't matter if he has one 25,000 dinar note or a bank statement that shows he has 25,000 dinar on deposit. He still has 25,000 dinar! It all has the exact same value. It reminds me of that old SNL commercial that touted a bank that was the best at making change! If you had a 5 dollar bill and wanted to turn it into 20 quarters or 50 dimes, they were the bank for you! If you had 2 quarters and wanted to turn them into 2 dimes, 5 nickels and 5 pennies, they were the bank for you. There are a million different ways to accumulate 80 trillion dinar. But, at the end of the day, it's still 80 trillion dinar. The only possible way to eliminate 99% of dinar without a redenomination, which is what Enorsste claims Iraq intends to do, is to steal or confiscate bank notes and bank notes and provide NOTHING in return. Issuing debt doesn't do it. Increasing bank reserve requirements doesn't do it. Replacing worn out and damaged notes doesn't do it. Only confiscation and theft does it. And that, of course, is utterly absurd. Perhaps he got his economic's "degree" from the writers on SNL. That would explain a lot.
Delete"Enorrste made a post tonight on this topic. He having an economics degree brings a better perspective I think"
DeleteLOL. One only has to read through Enorrste / Steve's chronic delusions on this previous topic to see the true reality of his "qualifications". Aside from claiming to have a degree in economics, whilst obviously not knowing the difference between money supply & inflation (or public vs private money), he also claimed to be a "professional licensed forex trader", yet repeatedly didn't even know what an ordinary trading "pip" is and got his maths on that completely wrong by a factor of 1,000x...
In fact, I'm willing to bet Enorrste's "economic degree" comes from the same black hole certain other pumpers "military service" did... It's like claiming to be a surgeon then asking "what's a scalpel?" or insisting the larynx is part of the kneecap. If you had a surgeon like that with such a gaping mismatch between proclaimed qualification and even basic medical knowledge, there is only one sane thing to do - Run - Run like the wind...
Open Market Operations do not increase or reduce debt, they just move it around. You see, central banks in open market operations buy or sell already existing bonds/debt, not newly issued bonds. In the US, the Treasury creates and sells new issue bonds and the Fed is prohibited by law from buying new issue treasury obligations. When the Fed buys bonds, ON THE OPEN MARKET, it creates new money to do so, which does not affect the debt but does increase the money supply. When the Fed intends to decrease the money supply, it sells bonds ON THE OPEN MARKET and the money it receives is removed from the money supply, reducing it. But, as these transactions are all buying and or selling from private sources bonds that already exist, they have no effect upon the debt. The Treasury still has to pay interest on the debt, they just pay it to the Federal Reserve Bank of New York instead of Aunt Martha who has savings bonds in her pin box in the closet... When the money supply is decreased buy the Fed buying in open market operations, interest rates tend to rise because money is in shorter supply and bond yields rise because the supply of bonds decreases. This reduces inflation and is good for the rich because their accumulated wealth loses less value, while its bad for the poor, because the dollar they borrowed owes more interest and is paid back at nearer the par value it was borrowed at. Inflation is GOOD for net borrowers, because the dollar I pay you back in a few years is only worth what 96 cents was when I borrowed it, and conversely it's bad for the net lenders because inflation erodes the value of my accumulated wealth.
DeleteSorry, I got off on one of my "don't bash the Fed" rants, I used to work there and I get kind of teary eyed about it sometimes...(and my Doctoral Dissertation was on Central Banking) but the point is, Iraq is taking oil revenues in dollars, converting them to dinar at the CBI and injecting the new dinar into their economy as increases in M2 which allows them to increase the aggregate value of their money supply while keeping the per dinar value stable. Over time this is a very good way for them to improve their economy because the total value of their money supply, and a boatload of things that are derivative from it, increase, while the value of the dinar remains the same versus other currencies. In other words, increases in the overall value of Iraq's economy are factored into the country by the mechanism of increases in money supply which keeps the individual Dinar at the same value. As long as the increase in the money supply is nearly equal to the increase in net input value (oil revenues minus the cost of running the country, more or less, trust me, its very complicated in details) inflation is managed. In theory, inflation should equal the imbalance between what new money is created and what new wealth is created. In Iraq, wealth created is for all practical purposes oil revenue, the rest is mostly taxes and tariffs collected and a few other piddling things, and internal taxation in Iraq is piddling in itself. All the GURU talk about how Iraq HAS to increase the value because of all the money they make selling oil is in a left handed way true, it's just that they are increasing the value of the total of ALL DINAR, by increasing money supply, and doing it in a way that keeps each SINGLE DINAR at the same or nearly same relative value. They're just showing that they are in fact economic simpletons when they say things like that.
"Enorrste made a post tonight on this topic. He having an economics degree brings a better perspective I think."
ReplyDeleteIf Enorrste has an economics degree, then he either got it out of a cracker jack box or he has suffered severe brain damage since acquiring it. No one with any kind of legitimate economics degree and an IQ over 80 could say some of the ignorant nonsense I've seen come out of him.
"You all may recall that I had a debate with Din************.com in which they said, unequivocally, that it would be impossible for Iraq to reduce the money supply."
It's not impossible to reduce the money supply. By a few percent, here and there. It's even happened once or twice, IIRC, if you look at the month by month CBI financial statements. It is, however, COMPLETELY impossible to reduce it by the 99.9% (other than lopping) that it requires to propel the value of the dinar up to a dollar, though. Far more than that percentage is in the hands of dinar holders in the US alone. Even if they got rid of every single dinar in Iraq they still couldn't reduce it by that much. And, of course, then they'd be giving away all their currency value to foreign currency speculators. So not only is it impossible even if they wanted to do it, they would never want to do it because it makes NO SENSE. Every dinar they remove from Iraq in order to transfer its value to the remaining dinar, transfers wealth from Iraq to foreign currency speculators. Why would they want to do that? They wouldn't. Only an idiot would think they would.
"NOW we see that the means to buy back the large denoms is to sell bonds. People will buy bonds with large denominated dinars. The CBI will destroy them."
This is the kind of idiocy that I would expect a reasonably intelligent 12 year old to see right through. Iraq has an 80 trillion M2 worth about 80 billion USD (keeping the numbers simple here, they're obviously not exact). They sell 40 billion (USD) worth of bonds to Iraqis for 40 trillion dinar. They destroy the 40 trillion dinar. Great, now they can RV to a whopping 1/5th of a cent. What happens when the Iraqis want to cash in their bonds? They can't pay them the dinar they owe them because:
1. They destroyed it and
2. If they did, the money supply goes right back to where it was, which means the dinars value drops right back to where it was.
"Now, you have to start somewhere before you get to BEFORE June, right? I think this article is saying that they are about to start. That means "free float." Sorry, Douchebags, but you lose and we win!"
Counting your chickens before they've hatched, eh? Sorry, but you're laughably mistaken. I know this, for a fact, because I understand economics. You don't understand economics, so you bumble around in the dark saying things that anyone with a real knowledge of economics (or even a decent amount of common sense and an IQ over about 95) finds hilariously ignorant.
Tell me, is Kap really a pizza boy? I heard rumors that he was, but haven't seen it confirmed anywhere. Regardless of what he does for a living, it's blatantly obvious that he's either extraordinarily ignorant and not very bright, or a lying scammer, or maybe just a sad little man that needs to mislead people in order to feel important.
Lol. Another spewrew with an economics degree. Are you sure this wasn't Ennorste writing this fairytale?
ReplyDeleteThe M2 of Iraq is worth around 75 billion USD. That's about typical of an economy and country of Iraq's size. Now the economics major spewrews are going to tell us that a vast majority of that M2 is going to be "removed" from circulation so that the dinar value can increase? Whatever. Please someone show me one time these economic majors have been right about anything. If they truely had degrees in economics then they would know that RVs are fantasy and all that exists in economics are slights increases and decreases in currency values. Anything more would certainly cause runaway inflation.
yes dinarck, it was enorste. if you read the beginning of my post, it stated so.
DeleteI am sure you guys have also ben reading that poppy3 characters rv callings as well, he is always so perplexed on why it didn't rv as he says. what a complete moron! he says a few prayers to people then they forget all about all his previous lies and he is on to more lies and his so called connections in dc and Iraq and imf and wherever else he claims to have them obviously are full of it and so is he. BGG has to keep him around to keep the sheeple going on a prayer! LOL.....prayers have nothing to do with a revaluation of any currency.LOL
Hahaha.....Yeah J.....I see it now. I guess as soon as I read Kraperoni I started losing intrest in any substance in the following statements. Lol. I should have know Steve would try to find a way to explain how an impossible event is actually likely to his victims. Selling bonds. ROFLMAO.....countries do it all the time and there currency values never skyrocket by 1000s of percent. I guess that's irrelevant to to sheep though.
ReplyDeleteWhat happened to Steve's "theory" that Iraqis will be forced to exchange their Dinar for USD so that Iraq could RV? Now all of a sudden Iraqis are going to be standing in line to buy bonds with their 25,000 notes? Hahaha. Lucky for Steve there are plenty out there who are foolish enough to believe this dribble.
Our old buddy Adam is going a lot more lying than usual lately. Maybe he bought a new boat and sucker, I mean VIP, subscriptions are down?
ReplyDelete"Then Saddam was taken out for crimes against humanity - I don't think anyone will argue that point, he was a horrible man - and the country fell into chaos, the value of the dinar plunged to a dismal rate, and the Iraqi people LOST a great amount of wealth basically overnight."
Uh, no, Adam. If you'd taken even five minutes to read the CBIs website you'd have known that the value of the dinar was in the toilet. Direct quote from the CBI, with link: "Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars."
http://www.cbi.iq/index.php?pid=History
It didn't happen overnight. And it didn't happen when Saddam was removed from power. It happened (as the CBI states on that page) from 1991 on.
Which begs the question, what is Adam doing here?
A. Lying?
B. So completely ignorant and lazy he hasn't even taken 5 minutes to read the CBIs website?
C. Has read the CBIs website, but is so stupid that he can't comprehend basic things like dates and exchange rates?
Which begs another question. Are any (or all) of these things illegal to do, regarding an "investment" in order to enrich yourself? Pretty sure A is. And regardless of whether or not B and C are, would Adam be able to convince a judge that he was simultaneously holding himself out there as an authority on the dinar whilst being either B or C and not A? Doubt it.
"if it is possible for that value to be LOST in the blink of an eye, based on the world's lost faith in Iraq... then I contend it is reasonable that the same wealth could be REGAINED in a blink of an eye as well"
Uh, no again. As we've already PROVEN, it wasn't lost in the blink of an eye. It wasn't really "lost" at all, merely distributed amongst trillions of more dinar. Iraqs currency value in the 80s was measured in the billions (USD value), just like it is now. Same value (approximately, of course). No loss.
"I know that might sound overly simple, but it literally IS that simple. If the CBI says they will pay .10 for the Dinar, then it's worth .10. If they say they will pay $2 for it - the rate is $2."
Sure, if they say they will pay $2 for (and actually follow up and DO pay $2 for it) then that's what it's worth. Until 80 billion USD worth is cashed out, then guess what it's worth? ZERO. Nothing. Nada. Zip. So 40 billion dinar gets cashed out at $2 per, and the remaining 79.96 trillion dinar are now worth absolutely nothing. Good plan, Adam. We should hook you up with Bernanke and you can work some of your financial wizardry on the USD and then we can all live in mansions and driver Maseratis. I'd consider this lying as well, because how could anyone be this stupid?
I really think a lot of gurus are planning on claiming ignorance/stupidity if/when they get indicted for fraud. "I didn't know judge, I don't know much about currencies, plus I'm pretty stupid to boot" isn't gonna fly when you're holding weekly chats/conference calls/etc and charging people for your "intel", future investment advice, etc. Didn't seem to work for the BHG boys.
That is an important point, and relates to what I was saying above. It's not the value of a single dinar that is the measure of a country's standing, it is the value of the aggregate supply of dinar.... and as you say, 1000 dinar at 1166 is the same as 1 dinar at 1.17. CBI can indeed value the dinar at whatever they want, but they CANNOT just wish the aggregate value of the money supply by 3 zeros.... the total value of the money supply only increases/decreases by the creation of new wealth, and for now, the CBI is translating that increase by issuing new money at a rate that approximates the net proceeds of the oil revenue. That is why in the last few years we have seen the reserves held by CBI increase at the same rate as the money supply, because in the end, since they back every dinar with hard currency, the reserves are the money supply, and the dinar (notes and held in accounts, electronic, etc..) is just the physical presence represented by it. If they want to increase the rate, all they have to do is keep accumulating oil revenue but stop creating new money, and then let the currency float. The increased per dinar backing would lead to market forces increasing the per dinar value. Of course, since they have pegged it to the dollar, they cannot let it float. (and honestly, if they let it float right now, the numbers tend to point to it dropping in value to about 1200-1250 which is pretty near the black market value)
DeleteWWW.imf.org. country report no. 13/217 dated July 2013
ReplyDeletePublic information, downloadable. NO mention of a " revalue". Exchange rates would increase as oil production increases.
Main policy recommendations: The authorities need to be proactive in addressing medium-term challenges and risks by: (a) ensuring fiscal sustainability and building fiscal buffers to address volatility in oil revenues; (b) stepping up the liberalization of the foreign exchange market; (c) continuing the prudent management of reserves held by the Central Bank of Iraq and the Development Fund for Iraq; (d) deepening the reform of the financial sector, including the creation of a level playing-field for private banks; and (e) accelerating structural reform to promote private sector growth and employment creation.
ReplyDeleteCan anyone define " liberalization" as used in the context above, directly forwarded from the IMF Consultatiion report for the country of Iraq. No.13/217?
I’m no economist, but I did stay at a holiday inn express last night.
DeleteI’m sure John Jagerson can explain this better, but I think the “liberalization of the foreign exchange market” simply refers to making it easier for inflows and outflows of foreign currency. It would make it easier for foreigners to do business in Iraq with their currency. It would allow Iraqis to exchange their currency for foreign currencies to do business elsewhere. An easing in the regulations regarding exchange of foreign currency.
I’ll tell you this. Whatever the super economist Ennorste is saying. It’s B.S.
One thing for sure. It has absolutely nothing to with revaluing the exchange rate some ridiculous amount.
A friend called me the other day telling me I should invest in the dinar. My "currency investment" knowledge is nil so I did a little research. Appears to me that all this hoopla is a scam. Looks like they are all waiting....waiting....tomorrow...tomorrow...next week...next week...LOL. I'll believe it when I see it. Not investing one red cent.
DeleteI have a few $10,000.00 Peso notes from before the Peso revaluation years back....any body want to buy them?...LOL