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  1. Just passing this on, I'm not the author. I found it helpful!!!!! I’ve created this post to explain just how an increase of the Iraqi Dinar against the US Dollar (the world’s currency standard) can be justified and created literally out of thin air. So many have bashed the Iraqi Dinar, not knowing WHY so many believe it will increase in value one day. Some have said it will provide an increase in the realm of 1000%+ return, others have said it will increase gradually, maybe by 20-40%, and continue to grow over time as Iraq’s economy develops a base through oil exports and other industries that will ultimately justify the currency’s value. Please know this is theory and conjecture I’m presenting here, but it comes from very knowledgeable economists who know what they are talking about. I’m simply passing along the logic and concept behind the claims of something major happening. If you think the official currency of Iraq is a scam, think again. The only ones scamming anyone are those who lie to get gain from others during the WAIT for something better than what the Dinar values offers at present, which happens to be 1,162 IQD for every $1 US Dollar. The reality is that the Dinar (IQD) isn’t going anywhere because it’s the official currency of a real country! Whether those in control of currency values in the world and over Iraq choose to increase the value of the I QD immediately (revaluation) or slowly (still a revaluation) isn’t the point of my writings. What IS important is there is a way to make it all happen, even in the ways speculators have aggressively stated. Enjoy the speculation! CONCEPT EXPLAINED: I’ll use the exchange of a 10,000 IQD note as my example of the scenario I’m presenting within this post. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread. WHAT YOU COULD RECEIVE: In this scenario, if you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account in exchange for the 10,000 Dinar note. WHAT YOUR BANK COULD RECEIVE: In this scenario, your bank would receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”. If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model. WHAT THE US TREASURY WOULD RECEIVE: In this scenario, the US Treasury would receive $3,950 in estimated taxes in the quarter after the exchange, because each Dinar holder would now be in the “rich” category for taxes and will enjoy the priviledge of the 39.5% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,050 USD (i.e. $10,000 out – $3,950 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,050 to $3,550. OIL NOW ENTERS THE PICTURE: At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the central bank (CBI) in a form otherwise known as Petrol-Dollars or Petrol-Dinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves. HOW IRAQ’S CENTRAL BANK “RECAPTURES” THE MONEY: The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example I’ll use a $50 USD spot price per barrel for explanation purposes only). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35) WHAT DOES ALL THIS MEAN? It cost Iraq $162.50 to bring back a 10,000 IQD note into the country, having purchased it back from someone outside the country (i.e. a bank, currency dealer, exchange counter, etc.)! Could they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they would only pay $162.50! That doesn’t add to the money supply much at all does it!? They receive their IQD back and place it in the CBI, or destroy it for the purpose of diminishing the amount of IQD available, thereby maintaining the currency’s value. The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq. More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000, not to mention the banks being bolstered with new reserves and the Federal Reserves being paid… no pun intended… all the way to the BANK! That’s how it was originally explained to me as to how it was planned for Iraq to revalue its currency at a 1 IQD for $1 USD rate, OR HIGHER, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions, other powers that be, etc.) The crazy thing about all this, is we aren’t even talking about the fact that Iraq originally SOLD the IQD sometime in the past to a dealer for $800+ dollars!!! That dealer than took it out of Iraq and to another country (mostly to the US), and sold it to you and me! So, the net, even after having purchased the dinars back in this scenario, is STILL a positive for Iraq all the way through! Iraq was able to start rebuilding their country NOW off speculators and dealers’ money before they were ready to handle a complete financial bank overhaul and launch their new financial system, involving all the central banking intricacies required. Thus, we see how the greatest redistribution of wealth in the history of the world is justified and can actually be understood! Are you suppose to know this? I don’t know, but this is how it was explained to me many years ago. That, my friends, is how money could be created out of thin air while eliminating concern over too much IQD hanging out there in circulation. Eliminate the notes… create wealth for less… many sins are forgiven! No rate… No date… Only confidence the country of Iraq will one day officially rise from the ashes and become one of the wealthiest countries in the world, leading us into a new millennium. I expect the exact way it will all be done will not be as many have explained it. We will, in my opinion, be lead through various hoops and challenges to get to that point (i.e. re-denomination, currency exchanges, timelines, etc.), but I believe it will make it there eventually. The question is… can or will you wait for Iraq to develop? Or… will you let the crazy prognosticators discourage you by listening to their claims it’s happening tomorrow at a massive, and really unbelievable, rate? If you do, you’re sure to eventually call it a scam because you’re disappointed it didn’t happen the way someone you don’t know and who’s information you have no way of verifying turns out to be wrong. The choice is yours to handle this speculation (make no mistake purchasing the Dinar is exactly that) professionally and responsibly. This is speculative, yet logical, and hopefully true! Fast, instantaneous, massive revalue… or a slow grow… either way Iraq won’t be ignored, and is coming on to the world stage.
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