A new perspective to cashing out

[DinarSeeker]

I would like to open a new perspective to this investment that I have not seen yet mentioned. I think it may be one to ponder on as an investor over the short and long terms, pre and post Rv. I anxiously await results and end of the investment, as do we all but Iraq has skeletons in the closet and they certainly are not new to them, if anything, only the current movements of the last few months that we see regarding this investment are new to us all. It’s hard to shake old habits, greed, corruption and rest that follows it. The people of the Middle East will have no more of it.

The world powers are hedging all they have on this country. All in waiting, while the economics of the world degrade by the hour. Like a final countdown. The futures of the these troubled countries seem to rely on a single event of epic proportion for help. The writing is on the wall for a world bailout, and all eyes have turned towards the Middle East, and we wait. Iraq has had a lot to do to complete the circle needed for the jumpstart. And they have done a great job other than making us wait, and wait.

The success of our monetary transition in the near future depends on how well planning process was done. Each and every person involved in this will have to go through some kind of decision about cashing in. Lets’ face it, human beings are procrastinators by nature. So I will go as far as saying most of us have a mental plan to cash out but have done nothing yet. Some of us have not started yet, and some of us have already invested heavy into their plans, or their plans are already “in motion”. In my reading, one thought comes to my mind all the time and it has to do with allot of the gurus. They are guiding a lot of information to the dinar forums. People are reading and listening but today I question some of the judgment and that is the cash out immediately quote. Don’t look back, ever, and that is the end. You take the rate you get. Be happy with what you get. Yes, I will be even at .10cents.

Every guru has made many mistakes along the way. Although I do appreciate them and what they do, why are they saying this with such certainty given their track records. Which leads me to this statement, Why cash out right away? Your thinking my logic is off a little, hear me out. This is what it would eliminate today. Research, of how to defer taxes, eliminating taxes through ”tax planning”, offshore planning, trusts, financial planners, attorneys, etc. you get the point. Seems to me that everyone is trying to get their money out Iraq and protect it from the IRS. If the dollar tanks overnight, how much will your trust be worth? Worse than that is that money is not fluid anymore once in a trust and if it is, the IRS will be with you soon for their share of the proceeds. How about a bank holiday on that non-interest bearing account you specifically set up for your new found wealth. Now it’s inaccessible for you to get at. Or until it becomes unfrozen which could be a long time. How about gold or metals? Common sense tells me most everyone cashing out will reinvest some of their money into a metals portfolio of some kind, causing a surge in metal prices through demand, on an already overly hedged commodity. There is not enough gold out there to fill the paper sales, the market knows this, so it sells futures. What if everyone wanted their gold tommorrow. Will it balloon a false ceiling to this commodity. When the correction of gold takes place throughout the world from the currency realignments. The inflated ceiling from investors buying frenzy will recede, eventually. To what is the question, but look at the history of these metals. It has been around since mankind started and it has had great value many times before you and I came onto this earth. Eventually it will recede as demand dwindles. Are you planning on purchasing commodities or creating a stock portfolio during the frenzy?

I only say this as the IMF is calling for a new world currency, they announced their intentions April of 2010. They have had a long time to think about rolling out the” Bancor”, and the medium in which to do it.(Google Bancor if you are unfamiliar with it) So here is what I would like someone else to elaborate on. After the Rv, why not exchange your dinar for new dinar of lower denomination. You’ll get the new dinar rate and have that much more. It will cost you more to the dealer in which you make the transaction but now you have newly appreciated dinar that continues to appreciate possibly faster than any bank could offer. Change in what you need, when you need it. Pay your taxes as you change in. I just don’t see Iraq going anywhere soon with all the resources they sit on. Even if the Bancor is unveiled, the dinar will possibly be the new currency traded for oil along with the Bancor.

Implementing some of this thought process, here is what the benefits to this would or could be. Large wire transfers eliminated, reducing your transparency to the IRS and banks by eliminating the 104 form. Reduce or eliminating exposure to short and long term gains on a large sum. Falling into perhaps a smaller tax bracket. Market investment and demand will cause dinar appreciation; you can utilize that and cash in as needed to maximize your return. Immunity to bank holidays on the whole sum of your dinar. Only a small amount would be affected. All of your assets are liquid during a time of uncertainty of the US dollar. Give you more time to understand the economic dynamics and where to make the best decisions regarding your future. In my opinion, when the IMF rolls out the bancor, all banks globally will be affected economically good and bad, until global stability takes over.

Just my opinion, am I way off on this thinking? I’m not saying I am going to do this, just looking for another perspective on this angle. Approaching a year and a half into this investment and I have not seen any discussion on this topic. I’m still open minded about this investment but my patience is getting thin with these guys. I have no choice but to wait. In the meantime, I will keep my eye on DV

Go Rv, hopefully sooner than later!

[fnbplanet]

IMO, Much will depend on three things:

1. The political climate in the Middle East - if it turns into a Caliphate leaning, anti U.S./Israel bloodfest, I think we'll all take a dime RV and be done with them. As the GOI survives and prospers, dinarians will ride the wave.

2. What structure of "Float" - free float, we all jump at the first chance. Managed float, we all KNOW it will go UP, so no rush to cash in. Most likely, it will be put into a ME "basket" with their neighbors, with that basket eventually becoming the much dreamed of "petrodollar".

3. The initial RV rate - if it's low, I think a lot of people will hang on to some and watch how it rises, depending of course on 1 and 2 above. It's high-->Bye Bye.

Ideally, the political situation settles down, they go on a manged float of 2% every 3 months (8% a year!, compounded), and it's a medium high rate ($2-$3) with room to grow.

Edited February 14, 2011 by fnbplanet

[dmdebar]

Very interesting thoughts. Thanks for the insight.

[Miningstocksguy]

I also found this discussion quite interesting and agree with all the points being made. My thought process is that it is often wise to go against the first impulse, which for many is to cash in as soon as possible. This is most likely what the CBI, most international banks, and likely our government are counting on us doing. I wonder what surprises the IRS has for us if we rush to cash in!

Adam has indicated that we may first receive a somewhat low rate at first (or a cash in rate that is much lower than the actual RV rate), many will rush to cash in, and then it will go up significantly after the first few months or so. So if the rate does come in low or the spread is too high I am not going to rush to cash it, and may just cash in enough to pay off my credit cards, etc., and then wait a few months to see what happens.

I am seriously considering converting my dinars into a good amount of gold and silver. They are at historic highs, but I think they have a long way to go. Silver in particular is still very low compared to gold, and unlike gold, silver is an industrial metal that is being increasingly used in electronics, medicines, and lots of other uses. Silver used in these applications is not recycled like gold since it is used in such small quantities.

Many see a shortage of silver in the future and a much higher rate. It would take a lot for gold to double, but it is much easier to believe silver could go to $60 an ounce, particularly if the dollar does lose value as many predict. As more people turn to silver as the "poor man's gold" and supplies remain tight, I think silver is in for a nice run over the next few years. I have been investing in silver for a few years now and have seen it go from $13 to $30 just over the last year or so, so I think $60 silver is very possible.

If the rate comes in pretty high (over a dollar would work for me!) then I will cash in some and convert some to gold and silver. If my understanding is correct that will defer paying taxes as you will only have to pay taxes when the gold/silver converted to dollars. Is that correct?

I am also considering converting some dinar to the Chinese yuan, as most everyone agrees the yuan is artificially low. I don't see the yuan dropping as much as I see the dollar dropping, and it looks like things are moving to include the Chinese yuan into the SDR basket of currencies. It is very possible that the yuan and the dinar will be the two top currencies in the SDR basket. I read an article from a currency expert that alluded to this, and news coming out of the IMF seems to indicate China is moving this way. I see the yuan going up against the dollar, so this might be a good way to hedge our investment. Does anyone have any thoughts on converting some dinar to the yuan as part of a tax avoidance/asset protection strategy?