Real Banker's Point of View

[Amos9:13]

Been a while since I posted on here .  Knew we'd have to see Chapter 7 released until a potential RV could take place so glad to be back!  As some of you may remember, I am a real banker (branch manager II/branch officer) of a local community bank that does have some banks in other states as well.  I want to again knock down any myths and debunk any crazy talk that hypes up newbies and some veterans alike, while giving my 2c on what I feel (as a banker/business man) what might happen on this ride.  I do have a bachelor's degree in organizational management (so I've had courses in economics and financial management). I am currently pursuing my Master's degree in business.  I've worked in banking for ten years, my job responsibilities that pertain to this investment include lending, financial management, and being in the know of what the fed is doing i.e. interest rate changes, etc.  I even recently did a paper on the IQD and why I think Iraq is the next gold mine.  As most people do, they giggle...but if you have researched well enough like I had...that giggle turns into a *hand on chin* moment as to say...hmmmm...maybe there is something to this. 

 

                                            Bank Rumors

 

1. "I see the amount on the green scren!"  While many financial institutions do use a "dos" system...it is very hard to see what you are looking at.  There are several codings that may look like "rates."  I can assure you know one "looks over or sees from a distance" a rate.  Unless you know what you are looking at (an employee) and you are right on top of it...you can't tell what you are looking at.

2. "I have inside sources from the bank!"  Trust me...the banks don't know anything.  WE get our information from the FED regarding interest rates, etc.  I don't think the FED would leak information on a rate change until the day it happens.

3. "The manager pulled me inside his office!"  While I do have a very few customers who are invested and love to talk to them....I'd never "pull someone in my office" to sale the dinar.  Right now it's not recognizable so most banks don't deal with it.  Now are some bankers going to talk to you about future potential investment opportunities?  Sure!  Most banks need deposit growth so they don't have to borrow money from the fed to lend money to their customers...less expensive to have deposits on hand.

4.  The notorious delarue machines!!!!  I actually have a coin counter and currency counter from Delarue.  Most banks do have these....do you know how long it would take to count a 20K deposit without these machines!!!!  They do have security check abilities...not sure on the dinar...but we also have blacklights to verify money orders and currency.  So while the myth of these delarue machines being a "great thing" are half true...it has no merit towards the dinar Rv'ing.  The one story did have some merit previously where the man said the dinar can be verified thru a currency book.  While we don't have one of foreign currencies here.....I do have one for the US id's and old/new currency denoms.  I'm sure international banks do have these...so that part is true...but you could just look that up on the net. 

5. "Bankers are in the know!"  I've actually sat down with my SVP to see if he knew of this investment.  Him and some others don't think it's going to go anywhere.  So to say bankers are in the know isn't true.  He's very high up and has worked in banking for 50 years....if he doesn't know....then I doubt others do around the state here anyways which he's friends with quite a few higher ups.  I will say that there are some bankers though that do feel something is coming out of it.  Just depends on the person, but bankers don't know anything more than you do as far as "intel" goes.

 

                                                                   From a Banker/business man perspective on IQD

 

I am blessed enough to work around business every day.  I know how business works.  If you look at the IQD as a business deal, then it's easy enough to see we're going to get something out of this deal.  I do believe that Iraq had a business plan that they've had help with from the UN, USA, and potentially China.  The articles referring to Iraq wanting to be the number one in the Middle east, have the highest oil exports, etc. is a clear indication of a "business plan". 

So what does this have to do with us?  This business plan?  Simple...money.  Let me explain why...energy is something every country needs.  We've tried solar energy (too costly, not enough titanium), water (not everywhere), coal (also a natural resource and can be costly to dig up), so that leads us with oil.  I hear the argument "Iraq can't depend on oil alone."  While I do agree partially with this statement, I do have to disagree that oil can't make up for several commodities.  Look around you....the world we knew it 10,15,20 years ago is gone.  Countries have went from being thousands of miles away to being in your backyard (internet, skype, cell phones).  The world is the economy now, not US vs China, or GB vs Germany.  If one fails....we all fail.  Nations are starting to realize that if they aren't part of the mix...they and their people suffer.  The economy has become global...so Iraq is the best target for oil (especially after they are westernized!!!!, easier to deal with).  So slowly we are seeing dictators overthrown, nations coming out of third world nations and joining the modernizing world (india/brazil) and guess what?  They are going to need oil...what does that mean?  DEMAND DEMAND DEMAND....Supply/Demand curve anyone?  As the world continues to grow...Iraq will be supplying more oil....(look at the article about pipeline to jordan, look at exxon deal article).  What does this mean for our investment is the main question right?

[SgtFuryUSCZ]

***///

 

Not an "investment"...

 

Currency Speculation.

 

Thanks for your input, though.

[Amos9:13]

Here is what the world economy plays into Iraq....

 

-Nations will come into Iraq (WE are there, China is there, Russia coming (see airport)) increase economic stronghold

-Companies will come...look at Citibank!!! They spend a trillion to come in.  Guys let me tell you...a bank doesn't come in unless they expect to make money.  They don't make money unless they lend...who would they be lending to right now? Exactly!!! They are EXPECTING Iraq to become a power house.

-The world needs Iraq's economy to become stronger, this could be used to swap out a reserve currency used as IQD.  The facts are the USD is not what it use to be (and will decline sharply), and the Euro is failing...who's next?  China?  No, they cheat and will never increase their rate...they'd lose business.\

-Iraq has nowhere to go but up...while I do believe they have 33 trillion in dinar...I don't believe that it is all "working currency".  I believe they will "have it listed" until they go international (WTO) tradeable...then they will cut their losses.  Do I think it's a smokescreen...no not necessarily...I think right now they are "needing it there because they have no choice"...which is one reason they are using US dollars.  While they are in transition they have to hold onto the currency.  I don't even think they know how much they will need (waiting on float for dinar).

-I do feel they will allow it to free float...works in our favor anyways.  As fast as Iraq's ecnomy is spooling up...the value should increase moderately. 

 

 

***Bottom line...do I think we'll be overnight millionaires...maybe not...did we make a great investment...oh yeah.  While it maybe a while (2-3 years) before they get to that 1.00 mark....it's worth it.  Chapter 7 was the cake coming out of the oven, HCL will be the confetti, WTO will be the icing, rate change will be the cake cutter.  Hang in there...remember this is BUSINESS!  All are in it to make money, but timing is key.  God is good, have faith and believe he is working in YOUR favo!

Iraq is an investment Sgt.  Companies are investing their "time and money" this will in turn enrich Iraq's economy.  There is also stock that you can invest in Iraq (which there was an article referring to Bloomberg).  Also the interest rates you get at Warka are MUCH better than anything you can get in the states.  Right now banks are paying around .75 (5 yr cd) due to the Fed...not wanting consumers to save money (spend for velocity).  So yeah...it is AN INVESTMENT depending on how you play your cards.  Some do all 3....currency, stock, warka.

[Bunk]

  Thank you Mr Corzine...

[sxsess]

Good post Amos..

[Gut Feelings]

Always like it when someone posts something that makes sense.  This guy makes sense!

[SgtFuryUSCZ]

***///

 

The IQD we hold awaiting currency exchange is

a speculation that it will be worth more when we do.

 

If you INVEST in companies INVESTING in Iraq, that's an INVESTMENT.

***///

 

wow... y'know what...? 

 

We really don't give a hang what ya'll wanna call it anymore.

Suit yerselves......

 

but if it's an INVESTMENT to you - and you make a bundle,

be sure to report it to the IRS as such.

[magawatt]

Will we be able to use Citibank for Iraqi savings accounts, i. e. directly depositing our dinars in a US Citibank branch to an Iraqi Citibank account?

Thanks.

[lotsaleftpedal]

Good real world information and perspective.

 

Thanks.

[Sweet baby dinar]

Sounds good, I hope all banks get the delarue machine to make it easier for the masses who are gonna cash out, once this baby goes to the moon

[yaker]

Amos,

 

Thanks for your input!  I agree with you. If/when it RVs it won't be at $2.50 or $3.41 as some Guru's think. I think it will be less the $1.00 and then over time it will get to $1.00 or much more.

 

But before it RVs I thinks there is alot to be done and therefore I think we are a couple of months away.

[Amos9:13]

Will we be able to use Citibank for Iraqi savings accounts, i. e. directly depositing our dinars in a US Citibank branch to an Iraqi Citibank account?

Thanks.


Read more: http://dinarvets.com/forums/index.php?/topic/153141-real-bankers-point-of-view/#ixzz2XttJvpoj

 

 

 

***Since Citibank is a national bank I'd say yes.  There hasn't been an "american" bank in Iraq yet so this will be quite interesting.  To me this was almost as good as the Ch7 news...if banks are coming in to lend money it either means....A. they expect the citizens to eventually have the ability to pay back loans (very good news, RV )......and also B (they expect more companies to start up, come in from America needing lending...also good news...enriching the economy of Iraq which leads to stronger currency)....both work in our favor...

[supergirl]

Thanks @Amos.  Good stuff. Don't be a stranger ....

[stealthwarrior]

Thank you for the info brother.

[jsilveira66]

Thanx for the intelligent input, that is very satisfying

[txdinargirl]

Here is what the world economy plays into Iraq....

 

-Nations will come into Iraq (WE are there, China is there, Russia coming (see airport)) increase economic stronghold

-Companies will come...look at Citibank!!! They spend a trillion to come in.  Guys let me tell you...a bank doesn't come in unless they expect to make money.  They don't make money unless they lend...who would they be lending to right now? Exactly!!! They are EXPECTING Iraq to become a power house.

-The world needs Iraq's economy to become stronger, this could be used to swap out a reserve currency used as IQD.  The facts are the USD is not what it use to be (and will decline sharply), and the Euro is failing...who's next?  China?  No, they cheat and will never increase their rate...they'd lose business.\

-Iraq has nowhere to go but up...while I do believe they have 33 trillion in dinar...I don't believe that it is all "working currency".  I believe they will "have it listed" until they go international (WTO) tradeable...then they will cut their losses.  Do I think it's a smokescreen...no not necessarily...I think right now they are "needing it there because they have no choice"...which is one reason they are using US dollars.  While they are in transition they have to hold onto the currency.  I don't even think they know how much they will need (waiting on float for dinar).

-I do feel they will allow it to free float...works in our favor anyways.  As fast as Iraq's ecnomy is spooling up...the value should increase moderately. 

 

 

***Bottom line...do I think we'll be overnight millionaires...maybe not...did we make a great investment...oh yeah.  While it maybe a while (2-3 years) before they get to that 1.00 mark....it's worth it.  Chapter 7 was the cake coming out of the oven, HCL will be the confetti, WTO will be the icing, rate change will be the cake cutter.  Hang in there...remember this is BUSINESS!  All are in it to make money, but timing is key.  God is good, have faith and believe he is working in YOUR favo!

Iraq is an investment Sgt.  Companies are investing their "time and money" this will in turn enrich Iraq's economy.  There is also stock that you can invest in Iraq (which there was an article referring to Bloomberg).  Also the interest rates you get at Warka are MUCH better than anything you can get in the states.  Right now banks are paying around .75 (5 yr cd) due to the Fed...not wanting consumers to save money (spend for velocity).  So yeah...it is AN INVESTMENT depending on how you play your cards.  Some do all 3....currency, stock, warka.

 

I was using Citibank just last night as an example of why I think that the rv will actually take place. I can't see any bank getting involved unless they're going to make money. I'm glad to hear a banker who works in the business confirm what I was thinking.

 

As for being overnight millionaires, if it rv'd at some ridiculous amount and I was suddenly a millionaire, I wouldn't feel that I was an overnight millionaire. I've been waiting patiently!

[SgtFuryUSCZ]

***///

 

We reiterate: 

 

if you sign ANY document at the bank when you go to exchange your IQD which

states that YOU acknowledge it as an INVESTMENT rather than a simple currency exchange,

you will be hammered by the IRS.

 

Look, we liked the guy's article.  Thanked him for it....

 

But didn't want any of you getting hooked into signing the document the IRS & the Bank would LOVE you

to sign stating it was an investment on your part !

[Amos9:13]

Banks do not "report if you are sending in for investment/etc".  Banks report interest earned on interest bearing accounts, interest expense on loans outstanding, and also (CTR's) which can be researched on the internet.  You can technically trade in dinars with your bank (for a fee...ours is 15.00) and once the bank gets the funds from the other country...it will then be direct deposited to your account.  The bank does not report on this.  It's up to you and your CPA to get your taxes done correctly.  The bank takes no responsibility in what you do with the money you've received unless it's earning interest which therefore the interest will be reported.  If you don't report to the IRS that you had capital gains that year...then you are playing risky games.  The IRS can audit you at anytime and will submit a submit a subpoena to the bank in which the bank then has to release your information (statements etc) once a judge signs.  We all know they are all listening in on us...so do the right thing...get a CPA and go over your information...pay the taxes!  Even if they don't deserve 1c at least you are free from them fining you! 

[umbertino]

Quote

As for being overnight millionaires, if it rv'd at some ridiculous amount and I was suddenly a millionaire, I wouldn't feel that I was an overnight millionaire. I've been waiting patiently!

End Quote

 I know.... Tell me about it (9 years)......

 

[hame55]

Banks do not "report if you are sending in for investment/etc".  Banks report interest earned on interest bearing accounts, interest expense on loans outstanding, and also (CTR's) which can be researched on the internet.  You can technically trade in dinars with your bank (for a fee...ours is 15.00) and once the bank gets the funds from the other country...it will then be direct deposited to your account.  The bank does not report on this.  It's up to you and your CPA to get your taxes done correctly.  The bank takes no responsibility in what you do with the money you've received unless it's earning interest which therefore the interest will be reported.  If you don't report to the IRS that you had capital gains that year...then you are playing risky games.  The IRS can audit you at anytime and will submit a submit a subpoena to the bank in which the bank then has to release your information (statements etc) once a judge signs.  We all know they are all listening in on us...so do the right thing...get a CPA and go over your information...pay the taxes!  Even if they don't deserve 1c at least you are free from them fining you! 

Amos- Thanks so much for your time!

Question - this is a simple currency exchange.  I have made others, such as dollars to Euros. Why would I have to pay taxes on an IQD exchange to dollars?

[wc41]

Quote

As for being overnight millionaires, if it rv'd at some ridiculous amount and I was suddenly a millionaire, I wouldn't feel that I was an overnight millionaire. I've been waiting patiently!

End Quote

 I know.... Tell me about it (9 years)......

Yup 8 years for me!

[tkeaton]

***///

 

Not an "investment"...

 

Currency Speculation.

 

Thanks for your input, though

 

 

Wow Sgt.! someone negged you for saying this? Jeeze..........  +1

[Amos9:13]

From what a CPA told myself (I'm not a CPA, bankers and accountants work hand in hand...but I don't know their side of the tax field).  Any gain over 200.00 is suppose to be reported to the IRS.  Even though it's just a currency exchange (basically), you still made a gain for that particular year.  There are also long term gains (which might qualify) and others but I'm not a tax attorney or a CPA.  When Iraq's currency eventually drops off the peg and revalues, I'd talk to a tax accountant before doing ANYTHING with the money.  Also even though the investment might be over for you from Iraq's standpoint...don't forget to invest in other things such as Gold, Silver, other currencies.  I believe your "tax bracket" will also play a part. 

[rambo12354]

Amos- Thanks so much for your time!

Question - this is a simple currency exchange.  I have made others, such as dollars to Euros. Why would I have to pay taxes on an IQD exchange to dollars?

IMO, I think you pay on your capital gains only. just saying!

[millionaire in training]

Amos,

Thank you for your story. Its great to hear the truth about whats really happening behind closed doors in banks.  

I too worked in banking many years ago and we never got word on anything that was about to take place until it was a sure thing.