CBI Currency Auction 12/1/2010

[Doc31]

Currency Auctions

Announcement No. (1786)

The latest daily currency auction was held in the Central Bank of Iraq on the 1-DEC-2010.

The results were as follows:

DetailsNotesNumber of banks16

Auction price selling dinar / US$1170

Auction price buying dinar / US$-----

Amount sold at auction price (US$)153,384,000

Amount purchased at Auction price (US$)-----

Total offers for buying (US$)153,384,000

Total offers for selling (US$)-----

Exchange rates

Dollar's exchange rates / in Baghdad markets

Spot Oil~$86.08 ... up off nearly 2% downward trend yesterday ... the big up that we are looking for?

Spot Gold $1390.90 waaaaaaaaaaaaaaaay up

Zero Cash Day 37 of an unprecedented streak on good volume with 16 of 19 banks participating

Now, a couple of points.

I've seen several variations of one article and another couple of articles posted here on DV with an Iraqi's name ... Mohammed Saleh/Salih on them who claims to be an advisor for the CBI. I've not found anything that verifies this ... only his word ... at best he is a consultant of some shape or form and when he speaks out we have no idea if he is presently working for the CBI ... OR WHETHER HE EVER HAS ... and so I caution you. Indeed Hammer911 picked up on an article today that was 180 degrees from an article where Salih was quoted the previous day. I call him the "chicken little" of Iraq ... he finds the media and spews some drivel ... remember when we got LOP heavy articles back at the beginning of 2010? ... a great deal of those were Salih ... 1 - 24 hrs later Shabibi would come out and say, "no, of course not".

Recap 1) guy with no juice comes out and talks LOP or some other drivel 2) everyone panics 3) a guy WITH the juice comes out and says "uh-uh"! Can we agree to mark any article with this guy being quoted as "SUSPECT" ?

Okay, next ... something has been troubling me and I need to right it ... I'm unsure how this individual phrased it but the jist of it was that I was all for not paying taxes on this blessing. I'm not sure what I've ever said/written that would lead someone to believe that ... but I would like to retract any such statement. I am very pro asset protection ... perhaps that's where they assumed that if I was one ... I was the other.

Now ... I forget which Justice it was that wrote the opinion (O.W. Holmes?) that "avoidance of taxation" was legal and our right (?) ... however the implication/flip side was that "evasion" is NOT! I haven't spoken to a single person that wouldn't pay long term capital gains on their investment/speculation/ or whatever you may be calling it. And I believe that that is the issue.

1) tax attornies/accountants have been arguing about how this will be treated since I started reading here (prior to joining)

2) I've not heard anyone speak to how Obamacare windfall/other taxes that were tacked onto the monstrous bill will (or won't) define the purchase/acquisition/holding of IQD.

3) "Bush tax cuts extended Doc, you don't have to worry about it" ...

QUESTION: do the Bush tax cuts DEFINE this purchase of IQD i.e. is it speculation, investing, windfall or what? OR does Obamacare define it? I know that several folks have tried to explain this at length ... but have you noticed? ... they don't agree!

Here's the train wreck that I envision ... individual cashs "out" (not in) and immediately sends 15% to IRS because they've held the IQD 366+ days and in good faith they are getting the "tax thing" out of the way. They later file behind it only to be audited and find out that they owe another 28% or so plus penalties and interest. Hey, you gave them the exact number of IQD and increase (some would call profit) that you received. Game ... set ... match!

Now, again, I've not met a single person who wouldn't pay 15% LTCG tax and most handle 35% STCG tax pretty well if that is the end of it. The question is ... Is it the end of it?

Again, let me reiterate ... I am very pro "asset protection" ... I am also very pro tax avoidance (good advice from a tax professional ... structuring, etc) ... I am NOT pro tax evasion!

In other words ... pay the taxes that you owe ... invest wisely ... then go live your life without looking over your shoulder.

I've taken too much of your time ... my apologies ... housekeeping don't ya' know!?

Peace

Doc31

[inheritance]

Thanks Doc! I for one really appreciate your work. GOD BLESS MY FRIEND!

[robo5288]

Doc: Great Post as always. For months I have relied on you to provide the auction information that I look for. Really appreciate that. Regarding taxes, I would like to reference my interpretation of tax aviodance vs. tax evasion. In Kansas, we have a toll road (Kansas turnpike). If I choose to use the toll road and drive through the toll booth without paying for the usage, I am evading the tax. If I find another route to take and avoid the toll road, I am avoiding the tax. IMO, it is that simple. Once again, thanx for all you do.

[ROACH]

Avoidance...good word.

I totally agree.

Thanks for all you do.

[sdaniels0608]

Thanks doc have a great day and keep us posted

God bless us all

Go RV!!!

Shane

[DaveH]

Thank you for the daily update Doc, great news. Your efforts are deeply appreciated.

[terr]

Thanks for keeping us up to date, you are appreciated. :

[vanommen]

Thanks Doc31 - I appreciate good advice and this good advice. I hope that a consensus statement will be issued by the IRS in regard to short term investment of the IQD. I also hope that they do not try to change the tax structure post RV and try to collect more as they have in some other instances.

[xxxgator]

B)Good Post Doc.

[candt1022]

]Thanks Doc. I'm a newbie but have been following the site for some time. Your common sense "words of wisdom" are appreciated. Keep'em coming! Again, Thanks

[jmo74789]

hey doc you still think an rv before the end of the yr?

[Freedom Biz]

Thanks for your daily updates, Doc31. We are under no obligation to pay more tax than the law requires. Unfortunately, the tax code is so complex that the average person cannot afford the professional advice to navigate their way through all the provisions for legally reducing the amount of tax they owe. When we get an RV, pay for the best advice you can get so you pay the least amount of tax allowed by the laws as they are written. A penny saved is a penny earned.

[Snatcher]

Here's a tax bracket program that might help some.... http://www.moneychimp.com/features/capgain.htm

[rick_jb]

Thanks for the post, Doc I appreciate all your insight.

[Doug A]

Thanks Doc for the update. You do not need to apoligize for anything you have said. I look on here and look forward to reading your posts because you have some sence about you and do not spew needless chatter all about. When someone posts have a nice day you are going to have someone else saying you are now trying to predict the weather. Some people just either don't get it, don't try to get it or don't care if they get it. Thanks again for your posts.

Doug A

[Doc31]

Oil is up about 3% from this morning.

Gold is running in a $5 channel presently averaging $1390

Yes, this is good for us ... bad at the pump!

[Uncle Barkie]

As stated Doc ... you need not apoligize as you always been upfront and honest with all of us. Stay true to yourself and enjoy life my friend!

Uncle Barkie

[Doc31]

Wow ... oil $87.35 presently ... up $1.25

[paj1985]

Wow ... oil $87.35 presently ... up $1.25

perfect storm weather....lets do it

[Doc31]

perfect storm weather....lets do it

I don't know ... smells like it to me!

[ECSxFenrir]

Thanks Doc for your contribution! I do have a question though. I definitely believe the zero cash days have some significance.

After the post from Franks convo with Ali, who I believed said the zero cash days dont amount to anything. I don't buy that but what do you think?

[edavis]

Thanks Doc...excellent post

Edited December 2, 2010 by edavis