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The Status of Our Warka Accounts ~ A Depositor’s Opinion


phlip
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After spending 3 years living in Iraq and 12-1/2 years speculating in the Iraqi Dinar I’d like to share some personal observations on the status of our Warka Accounts:

·       There is a shortage of cash in Iraq

·       Iraqi citizens can withdraw only a percentage of their savings balances

·       All 30 private banks in Iraq, including Warka, are strapped for cash

·       The IMF under the current SBA may first have to approve of CBI international banking practices before the CBI is allowed to sell GOI Bonds or CD’s to the private sector.

·       Warka can’t sell CD’s to account holders until the CBI is allowed to sell CD’s to Warka.

·       With its peg to the dollar, the CBI is artificially keeping the exchange rate higher than it should be @ 1182 dinar per dollar. 

·       Warka gave most foreign account holders about 1175 dinar per dollar when accounts were first opened by foreign speculators.

·       Even with the dinar’s (0.006%) loss in value from 1175 to 1182, Warka clients are still earning a positive rate of interest on savings accounts (on paper).

·       As of at least 2/26/17, there’s a new error message waiting for you if you attempt to use the Online Banking link on Warka’s Home page

 

 

Warka Accounts versus Fed dominated US Banks Accounts

If you think banking with Warka is scary, you might want to read this article with regard to your own US bank accounts:

 

Could the Banksters Grab Your Bank Deposits?

http://jonathanturley.org/2013/03/31/could-the-banksters-grab-your-bank-deposits/   

 

The above article explains that most of us do not realize that when we deposit money in a bank, it becomes the property of the bank and we become unsecured creditors of the bank!

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the banks’, and we become unsecured creditors holding IOUs or promises to pay.

Even though the current USD fiat currency is nothing more than IOU’s or promises to pay notes from the Federal Reserve Bank, at least you can still pay your mortgage with them. Of course, the same is true of the Canadian dollar, the British pound, the Australian dollar and the Euro ~ just to name a few.

 

As everyone knows by now over 100 banks a year have failed across the USA since the Barry Bailout scheme went into effect in 2008.

If your local bank failed and went into bankruptcy and you as an “unsecured creditor” got only bank stocks as compensation, could you pay for goods and services with a failed bank’s stock certificates? I doubt it.

You’d also find very few buyers if you just wanted to get rid of the stocks.

 

Here’s hoping that Warka Bank takes a different view of depositors and that Islamic law requiring 100% honesty in financial and banking matters has influenced the legalities enough in Iraq to put depositors like us in priority positions of payback instead of the other way round; especially if Warka should ever actually fail.

As it stands now, it looks like we have a better chance of recovering our money from Warka than from our own home banks ~ should either one ever actually fail.

The interest earned is certainly better at Warka.

 

Here is a link to another article similar to the one above:

 

Think your bank deposits will always be 100% guaranteed by the FDIC? Think again.

http://americablog.com/2013/04/fdic-uk-nz-deposit-confiscation.html

 

The good ole USA gets more and more third worldly every day!!

 

Finally, these 2 articles help make me still feel OK about Iraq in general and about our Warka Accounts specifically:

 

How Some Investors are taking the Long View of Iraq

http://www.cnbc.com/2016/12/11/how-some-investors-are-taking-the-long-view-of-iraq-despite-war.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=104157911&yptr=yahoo

 

Iraq signs UN Transparency Convention  

http://www.iraq-businessnews.com/2017/02/17/iraq-signs-un-transparency-convention/

 

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Excellent synopsis phlip.  If we are fortunate enough to survive the change in value with all of our zeros intact, my main concern is will Warka be in good enough shape, soon enough to allow withdrawals?  We'll have to cover US federal taxes on the interest paid.  Now, I'm covering that myself, but it's immaterial on my return....Would love to just leave it there and pull interest once a year.

Anyone have any thoughts on this subject?

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Phlip,

 

Thanks for your service and your many great posts on DV.  I am in agreement with you in total on your post.  

The World Banking system is broken beyond repair.  Changes will have to be made and will be made sooner than later because it isn't getting any better.
 
There will be new lines drawn in the Middle East and I believe a number of new order will emerge.  I see the once unthinkable alliances of Israel and Saudi Arabia, Turkey, Jordan, Iraq, Egypt, Kuwait and perhaps others emerging.  Iran is hated and feared more than Israel so this is a common enemy and Israel carries the biggest stick.  
 
I see currency parity coming to the middle east.  How can Kuwait have a $3.50+ rate??....SA at 27 cents and Iraq being worthless....?????...
 
The garden of Eden is in Iraq, as is Babel.  Iraq will rise again and they will rise with the help of the US and yes with the help of Israel IMO.  
 
Iraq is working hard to emerge into the world of business and finance and Warka Bank is a blemish that I doubt they will allow to tarnish that effort.  
 
Iraq will not let a small private bank with a sorted past history and questionable ownership tarnish their reputation for past, present in the big picture and especially future investors. 
 
Warka is a drop in the bucket in the big picture and I believe the CBI will make all investments whole again before closing Warka in the future.  The Al Bunia family, like so many other Iraqi's seem to lean towards corruption and theft and they, like others, will face some hard times. 
 
I can't see Iraq allowing the foreign investors and Foreign Military individuals who were involved with Warka to be screwed.  They might as well just close the doors to the future if they do IMO..... because it would send a poor message to a world of investors looking to become involved in the future of Iraq.
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If the account is in your name???  Not sure I understand the question.  Several in the OSI section opened up Warka accounts using their IBC.....that process was more expensive because it was a corporation.....I believe it was about $358 USD vs. $108....The IBC Warka funding was eligible for the gifting or, transfer of ownership concept.....

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3 hours ago, md11fr8dawg said:

No Coors, the account is in my name and I did not have my IBC when I opened it. So my question was can I now draft a gifting letter stating that I am gifting the dinar in that Warka account gifting it to my now formed IBC?

Thanks for clarification....I posted to you in OSI

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