Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content


  • Posts

  • Joined

  • Last visited

Miningstocksguy's Achievements


Newbie (1/14)



  1. I am not an economist but I cannot see the logic in the statement below. In this example, it states that after the re-denomination a loaf of bread that once costs 2,000 dinar now can be purchased with 2 dinar. At the current value of the dinar (1170 to one US dollar) a loaf of bread that costs 2,000 dinar to buy costs about $1.70 US. If after the re-denomination the loaf of bread (that still costs $1.70 US) can now be purchased for only 2 dinar, that means that 2 dinar has the same value as $1.70 US. In this example the dinar has revalued to about $.86 US to one dinar. That is a number I have heard quite often! I cannot see any other way to explain how 2 dinar can have the same purchasing power as 2,000 dinar without a revaluation. If the US lopped the zeros off the $100 bill and stated that the $1 bill now has the same purchasing power as the $100 bill, that would mean that the $1 bill has increased 100 times in value. I could then fill my gas tank in my car for about 50 cents. If the larger notes are taken out of circulation and the lower denomination notes are released without the dinar revaluing, then an Iraqi would have to fork over 2,000 one dinar bills, 200 ten dinar bills, or 200 one hundred dinar bills to buy a loaf of bread that currently costs 2,000 dinar. This would not accomplish what the CBI has stated below. Their main goal is to ease cash transactions and not make them 100 times worse! If you look at the quote below that is being discussed, it states "That would mean that the 1,000 IQD (pre-redomination) and 1dinar (post-redenomination) would both be worth the same amount in US Dollars." At its current value at 1170 to one US dollar, 1,000 dinar is worth about $.86 US. If after the re-denomination one dinar note now has the same value in US dollars as 1,000 dinar once did, then the one dinar note is now worth $.86. "In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars. Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of January 2011 and no further announcements have been made. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." Everything you stated is true except for the part where you said "to ease transactions and use LESS cash. If they lop 3 zeroes then 2,000 dinars would be 2 Dinars. The loaf of bread will cost 2 dinars, right? 2,000 IQD Loaf of Bread = 2 1,000 Dinar Notes (today) 2 IQD Loaf of Bread = 2 1 Dinar Notes (after redenom) Still takes 2 notes... And yes this theory will apply to everything in Iraq, including big ticket items.
  2. Hello Everyone, I am with all of you! While my wife is convinced this is all a scam (just doing a Google search will convince you of that!), and I surely hope this all happens by June 30, 2011, I firmly believe that the revalue of the dinar WILL HAPPEN. We just do not know when and for how much. What I continually tell my wife is that it does not make sense that a country with one of the largest oil reserves in the world has a currency worth 1/10 of a penny. That to me is an indisputable fact! The US devalued the currency in 2003 with the full intention of it being revalued once a secure, sustainable Iraqi government was in place. We are almost there! I was listening to Brietling's blog today and he was asked the question as to when Iraq would no longer be able to sustain their current rate of spending without a revaluation of the dinar. Brietling did not know the answer to that question but promised to research it. At some point the money loaned to Iraq by the IMF will run out, and oil revenue alone will not be enough to operate the country and pay all the contracts they have signed and continue to sign. At some point they will have to revalue the dinar to remain solvent. Most likely they will wait until the very last minute to do this! I often speculate that the RV will be deliberately held back until after June 30 to shake out a lot of the speculators, and once most of them "throw in the towel" they will RV. Perhaps that is a paranoid point of view but I do think it is possible. Either that or as Adam suggests, the initial RV will come in low and those us that are desperate will gladly cash in a 10 cents, and then they will RV higher in a few months and we will want to hang ourselves. What a great ride we are on! Have a great night!
  3. Hello Eagle, Those are great suggestions! I have been investing in silver for awhile now and am confident as you are that it will continue to rise in value since it is in short supply and has been been suppressed for so long. Have you considered converting some of your dinar directly to silver? Ali at Dinar Trade will convert dinar to gold, silver, foreign currency, etc. I am curious why you would convert dinar to cash and then buy silver, verses converting some dinar to cash and some to silver. I have to admit I do not understand the tax implications of dinar>cash>silver verses dinar>silver>cash down the road. The big question here is if you hold the silver for more than a year after converting the dinar to silver, if it is just subject to capital gains taxes verses ordinary income (35% tax rate) like our dinar to us dollar transaction will be. Since the Bush tax cuts have been extended until 2012 it seems we could convert dinar to silver in 2011, hold it for a year, and then sell some and just pay 15% maximum capital gains tax. Any thoughts on this? Thanks for your wisdom!
  4. I also found this discussion quite interesting and agree with all the points being made. My thought process is that it is often wise to go against the first impulse, which for many is to cash in as soon as possible. This is most likely what the CBI, most international banks, and likely our government are counting on us doing. I wonder what surprises the IRS has for us if we rush to cash in! Adam has indicated that we may first receive a somewhat low rate at first (or a cash in rate that is much lower than the actual RV rate), many will rush to cash in, and then it will go up significantly after the first few months or so. So if the rate does come in low or the spread is too high I am not going to rush to cash it, and may just cash in enough to pay off my credit cards, etc., and then wait a few months to see what happens. I am seriously considering converting my dinars into a good amount of gold and silver. They are at historic highs, but I think they have a long way to go. Silver in particular is still very low compared to gold, and unlike gold, silver is an industrial metal that is being increasingly used in electronics, medicines, and lots of other uses. Silver used in these applications is not recycled like gold since it is used in such small quantities. Many see a shortage of silver in the future and a much higher rate. It would take a lot for gold to double, but it is much easier to believe silver could go to $60 an ounce, particularly if the dollar does lose value as many predict. As more people turn to silver as the "poor man's gold" and supplies remain tight, I think silver is in for a nice run over the next few years. I have been investing in silver for a few years now and have seen it go from $13 to $30 just over the last year or so, so I think $60 silver is very possible. If the rate comes in pretty high (over a dollar would work for me!) then I will cash in some and convert some to gold and silver. If my understanding is correct that will defer paying taxes as you will only have to pay taxes when the gold/silver converted to dollars. Is that correct? I am also considering converting some dinar to the Chinese yuan, as most everyone agrees the yuan is artificially low. I don't see the yuan dropping as much as I see the dollar dropping, and it looks like things are moving to include the Chinese yuan into the SDR basket of currencies. It is very possible that the yuan and the dinar will be the two top currencies in the SDR basket. I read an article from a currency expert that alluded to this, and news coming out of the IMF seems to indicate China is moving this way. I see the yuan going up against the dollar, so this might be a good way to hedge our investment. Does anyone have any thoughts on converting some dinar to the yuan as part of a tax avoidance/asset protection strategy?
  5. Hello Fellow Newbie! I am fairly new at this myself but know from my research that and are legitimate sites to purchase Dinar. I bought my Dinar through Dinar Trade and found them to be very reliable, with prompt communication and prompt shipment. You only want to purchase Dinar from a site that is certified by the U.S. Treasury. They use De La Rue machines that guarantee the currency is real. I also recommend that you buy uncirculated Dinar. As far as banks go, my co-worker and fellow Dinar investor found that he could buy Dinar through BB&T and Fifth/Third Bank at much better rates than the online sites. I am not sure of any other banks that sell Dinar. Can anyone else recommend some websites or banks? Also, make sure you keep the receipts/certificate of authenticity you receive when you buy the Dinar as you can not cash it in without these - you have to be able to prove you purchased your Dinar through a legal source. I have my Dinar and all receipts in a safety deposit box. I hope this helps!
  6. Hello Everyone, I am a "newbie" to the Dinar, but have invested and done pretty well in mining stocks for the last 10 years. The key to making a good profit is patience! I recently read Adam's Cash In guide and he is of the opinion that even if it does RV at a high rate, there will be a mad rush to cash in with very few avenues to do so. He speculates that there may be a big spread and that the TBI may offer to buy at 10 cents even if it RVs at a dollar. He says that the foolish will grab the 10 cents and run, and the TBI will make huge profits on the Dinar. He says the wise will hold onto the Dinar longer until they can get a much higher cash in rate - this may take a couple of days or weeks. I joined the VIP as Adam promises that by being a VIP member we will get the best cash in rate - I hope that works out! I do have a question for all you experienced members as I am having a hard time following the logic in this. If the Dinar does RV at only 10 cents, and you are confident it will go up, why would you cash in your dinar, pay 35% or more in taxes, and then re-invest the remaining 65% or so balance in buying more Dinar? You would end up owning 35% less Dinar then if you just held on to it. I could see cashing in some to take care of the bills and maybe even half or more for security and sanity's sake, but if you are convinced the Dinar is going higher why not just hang on to a good portion of your Dinar and wait for it to go up? I am new and I am probably missing something here, so please don't beat me up too badly!
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.