article from bloomberg.....??????

[gjones713]

this is my first post and I came across this article on Bloombergs web site. Even thou it is dated Oct 2010

Japan Investors Duped Into Buying Iraqi Dinar as U.S. Withdraws

By Masatsugu Horie - Oct 26, 2010 5:38 AM GMT+0300

Japanese consumers are being warned about an investment scam promoting the purchase of the Iraqi dinar on predictions the currency will surge in value as U.S. combat troops withdraw from the country.

A man in western Japan spent 2 million yen ($25,000) to buy 500,000 Iraqi dinar ($428) after a caller recommended buying the currency because it was expected to gain as much as 30-fold, the National Consumer Affairs Center said on its website. The man, whose attempts to get a refund were unsuccessful, was among more than 200 people who bought the currency, the posting said.

“In most cases, the exchange rate is extremely bad,” Ryota Kato, a spokesman for the center, said yesterday by telephone. “And you wouldn’t be able to exchange the dinar back into yen because currently no Japanese bank will accept it.”

The Central Bank of Iraq exchanges 1,170 dinar for 1 U.S. dollar, according to its website, a rate that has been in place since early 2009. An Iraq government spokesman said in April the country has no plans to stop linking its currency to the dollar.

Kato said the center received 368 inquires about Iraqi dinar in the nine months ended September, compared with four for all of last year. Among the 202 people who said they purchased the currency, the average investment was 3.5 million yen.

“One person spent 20 million yen buying dinar,” said Kato, adding that the elderly have been targeted. Consumers are also advised to take precautions if asked to buy the Sudanese pound, he said.

“Our organization can’t judge whether these transactions are fraudulent, but you should be very careful when you deal with currencies that have low liquidity,” Kato said. “We’re still getting many inquiries.”

To contact the reporter on this story: Masatsugu Horie in Osaka

[Rayzur]

I am confused about the confusion. Let me see if I am tracking here.

1) If someone sold you dinar with the promise that it would increase exponentially just by virtue of it being dinar, then yes….that is a scam. The dinar as current dinar has been at a fairly stable rate of 1:1178 for over a year or so. You will not make a fortune trying to buy it low and sell it high at its present value.

So if someone or some article tells you it’s a scam as you will not make money on the dinar in its current value/state……. They are correct. AND it is also correct that has nothing whatsoever the profit margin that comes with the currency being revalued or re-indexed..

I doubt anyone on this forum bought dinar with the understanding they would make money as a currency exchanger.…..or that they would make exponential money from this investment through speculative demand versus supply and the rising cost of this currency over time (600.00 in 2004 for what is now selling for 1200.00).

Most bought dinar as an investment on speculation that it will revalue. While the word speculation is in both scenarios, do not confuse the rising cost of dinar to be the same as the dinar revaluing.

Therefore it is completely false logic to take a speculative demand and supply cost increase and apply that reasoning to this investment as currency that will revalue (or reindex). The former is not the sum total of the speculation. The profit from the speculation comes with it’s revalue…..

2) To my way of thinking, a teller at the bank telling me that they do not trade in IQD means nothing other than they looked at their sheet, it did not have IQD on it, therefore they do not trade it. Why would they think it odd, why would they even question it….. I would guess very few of them sit in front of their computers researching the geopolitical currency climate of the middle east. Apart from that, many of the tellers weren’t even born or were conscious when the Kuwaiti reindex happened…. And those that were around like the majority of those in the US, probably missed it entirely. They have no index against which to measure what is happening…. Hell we don’t have that. It is unprecedented in the way it’s unfolding. No one has been down this path,… so in some ways, it makes no sense to ask questions like we know what the answers mean. We don’t. not entirely….and hooking it to simple logic will probably make for more disappointment and confusion.

I would guess that the majority of the time a teller informs you that the bank does not buy IQD, it means the teller is not invested in the IQD, has no idea why you even have it, and when checking on their currency sheet, they do not see it (along with a slew of other currencies they don’t trade). If it’s not on the trade sheet, it would make sense they would tell you there are no plans to trade it…. Because, they don’t have info or memo to the contrary… and why should anything about that currency change? Its not been in their bank for the span of most their careers. Why would they have reason to expect it to be different?

3) The logic of most negative statements against the dinar is either a retread, or has been overcome by events dating it. We are treading unknown waters in the progression of this event. We can apply disconnected logic in hopes we have some idea of what will happen when. But the fact that more time has passed then you hoped, or guessed, or believed it would take…. does not mean there is anything wrong with this investment. It has nothing to do with the investment being good or bad. It just means you want something to happen sooner than it has.

4) My experience in high level government suggests we have no idea what is going on. So many things change in a matter of seconds on so many levels… and then you bring in the needs of other members and agencies and governments and agendas….. I would guess it likely that a large part of the intel we have heard over the past few months, could have likely been true. All of it (okay except for RV dates). And even some of these dates may have been correct, and something completely out of left field commanded by a key player turns it totally upside down….Yeah, some of it rings of total poo…..some of it absolutely debunked. Yet, even if it contradicted something stated just the day before. I have seen it happen. I have experienced it…. sometimes only hours after something completely opposite was announced….. and I was the head of the damn agency…. The more players, the more money involved, the more scrutiny focused upon the decisions, the more governments or factions requiring agenda attention, the more likely the RV process will take twists and turns that take on a life of its own…

And still it will RV/RI. It will happen. It may not look like what you think it should. And it will progress on a path all its own, apart from your needs. And it remains a great investment, that will one day evolve into a wonderful profit for those invested.

My 6 cents for the day…..

God Bless……

[smee2]

Old news ... HOWEVER ... worth commenting on again.

Same thing happened here in Canada, BC, leading to warnings issued to bank customers through the fraud division of one of our Canadian Banks.

It is not the investment that is being called a fraud. It is the method people are using to sell the dinar.

Boiler room tacktics .... they call YOU, not you calling them. They pick on older folks, and in the case of the Canadian Bank I mentioned they took as their targets people who lived so rurally they had no local bank branch, and couldn't do certain security checks.

The idea was that this "investment counsellor" calls you, tells you about dinar, offers to sell to you, just mail him a cheque, and when it clears they send you the dinar.

Where the fraud comes in is that they either don't send you the dinar, or send you dinar that turn out to be fake, or the old ones, or otherwise not what they said and certainly not going to be worth more than what you use to line the bird cage. Also, no refund if requested. If you used a credit card you have the credit card company to go to bat for you and you can claim you didn't get what you ordered and they will reverse it most times. But with a cheque? Can't get any reversal there.

Anyway, it is an ongoing problem and seems to hit certain areas, one after another, where the fraudsters have accumulated enough targets to "work" the area. Japan was one. Before that there was a place in Britain, near the border with Wales I believe. We have our own bank customer targets here in BC as I mentioned.

So this is NOT a massive world wide event. It is something that is to be expected in any place where there is money to be made, and people wanting to make more with their "investment capital" like their retirement funds and stuff like that. It hits the newspapers when the problem is large enough, or significant enough, that a police force, or bank, or security provider considers that publicity will at the very least warn people and cut down the volume of incidents.

It is again a matter of being careful and knowing what you are doing. I remember reading in one case I believe somewhere in Europe, people were being offered dinar by phone call, older people, and told outright not to discuss this "investment" with family or friends. Of course they didn't want anyone to advise against this. And sometimes, let's face it, folks facing retirement today with provisions made decades ago, and often just not having enough, are looking for an alternative to going back to work or having to sell the house or move in with the kids.

Anyway, that is my comment on your query about the article. Good spot and keep reading. Just don't take this as a life and death of the dinar investment thing, okay?

smee2

[nackers]

Thanks for posting

[FlaDinar]

This story was in DD tidbits Oct 25, 2010... old news. Isnt it funny how someone joins this forum just to try to rip a whole in peoples faith in this investment and when they are finished stirring the stink... they disappear into the night. Not a first post of hello the reason I am here or glad to be a part of... or anything else constructive. First post right out of the box is to either tear down a person, an investment, a theory or a community. I think if you did some investigation you would probably find MANY of these posters are the same person or persons. Well....thanks newbie... now if you are truely here to be a part of this community, lets here something positive like...I dont know... maybe.... are You invested and why did you come to this forum for a start.

[gjones713]

This story was in DD tidbits Oct 25, 2010... old news. Isnt it funny how someone joins this forum just to try to rip a whole in peoples faith in this investment and when they are finished stirring the stink... they disappear into the night. Not a first post of hello the reason I am here or glad to be a part of... or anything else constructive. First post right out of the box is to either tear down a person, an investment, a theory or a community. I think if you did some investigation you would probably find MANY of these posters are the same person or persons. Well....thanks newbie... now if you are truely here to be a part of this community, lets here something positive like...I dont know... maybe.... are You invested and why did you come to this forum for a start.

I by no means am trying to "rip a whole". Hell I'm buying the IQD myself. The only thing is that I am just starting and I was doing my own research so I can be sure that what I am doing is a good investment on my part. When I came across this article it confused me and the only reason why I posted it was because I thought maybe somebody here could explain it to me. Especially since it was posted on Bloomberg's website. Are they not a credited organization that millions of investors follow?

If I have insulted anybody I'm sorry I didn't want to come off that way. I just want to make sure that I am not being taken to the bank. So if you can't help me or be able to discredit this article then so be it, I guess I came to the wrong place for answers. I am in no way here to cause problems. Hell I want to make money just like the rest of you.

[Mongo]

This story was in DD tidbits Oct 25, 2010... old news. Isnt it funny how someone joins this forum just to try to rip a whole in peoples faith in this investment and when they are finished stirring the stink... they disappear into the night. Not a first post of hello the reason I am here or glad to be a part of... or anything else constructive. First post right out of the box is to either tear down a person, an investment, a theory or a community. I think if you did some investigation you would probably find MANY of these posters are the same person or persons. Well....thanks newbie... now if you are truely here to be a part of this community, lets here something positive like...I dont know... maybe.... are You invested and why did you come to this forum for a start.

We all know it's old news But don't flame one of my favorite country music singers

[pleasantvalleySunday]

yes, this may be an old article - and Japan's economy has tanked further since this was written ... lot's of news articles on this google search:

http://news.google.com/news/search?aq=4&pz=1&cf=all&ned=us&hl=en&q=japanese+economy&oq=Japanese

[tommyboy]

A man in western Japan spent 2 million yen ($25,000) to buy 500,000 Iraqi dinar ($428) after a caller recommended buying the currency because it was expected to gain as much as 30-fold, the National Consumer Affairs Center said on its website. The man, whose attempts to get a refund were unsuccessful, was among more than 200 people who bought the currency, the posting said.

Now that's a helluva rate, $25K for 500K dinar. I'll sell all mine at that rate right now. Might be sorry later though.