How the US plans to make trillions with the Iraqi Dinar

[horns]

* The Revaluation of the Iraqi Dinar – How the U.S. Plans to Make Trillions

July 8th, 2011 05:18 pm • Posted in NEWS (Iraq & World Currency)

By Greg McCoach

Friday, July 8th, 2011

U.S. national debt

will exceed $14.5 trillion by the end of the summer.

The government has been

underwater so long, it has gills…

But despite their desperate condition,

the Feds still have a few tricks up their sleeve that will allow them to keep

“kicking the can” down the road.

One of the gimmicks they’ve cooked up to

stave the wolves off is becoming more and more evident: The revaluation of the

Iraqi dinar.

The dinar collapsed after the United States invaded Iraq and

toppled Saddam. Prior to U.S. invasion, the Iraqi currency was trading over USD3

to one Iraqi dinar on the strength of the country’s massive oil

industry.

After the collapse, the dinar was trading significantly lower. At

one point, a single dollar purchased one thousand Iraqi dinar.

Speculators

began to take positions in 2004 hoping someday, the dinar would recover and the

UN economic sanctions would be lifted, allowing the currency to be revalued.

Since then, there has been much speculation regarding how and when that would

occur.

But here’s the really interesting part…

The U.S.

Government is the Largest Holder of Iraqi Dinar Outside of Iraq

Does that

really come as a surprise?

The U.S. Treasury does not officially list the

Iraqi dinar as part of the country’s forex reserves.

New Iraqi

Dinar

see detail of 50 dinar bill

However, the Treasure does

say it did an initial currency swap with Iraq to fund their government and

Ministries…

Exactly how many dinars were traded is not mentioned, but it

does make reference to “billions of U.S. dollars” traded to

Iraq.

About two months ago, Iraqi dinars could no longer be

purchased; the recent Dodd Frank bill appears to have legislation related to the

revaluation of a foreign currency and preventing mass hysteria.

From

what I have been able to gather, it sounds like this plan was originally put

together by George Bush, **** Cheney, Alan Greenspan, and others years ago as a

way for the U.S. government to be repaid (read: get kickbacks) for their efforts

in Iraq.

Experts speculate the U.S. government received nearly 4 trillion

Iraqi dinars at an exchange rate of 4,000 dinar to USD1.

If this is

even close to true — and the UN allows Iraq to revalue their currency up to

USD1: one Iraqi dinar — the U.S. government would stand to profit in

trillions… as would anyone else who speculated on the dinar over the

years.

Bush’s statement, “This is a war that will pay for itself,” will be

true 10 times over.

Check out how the House of Saud got taken for $267

billion of their own crude oil.

Speculating on these matters,

however, is essentially useless. There is little to nothing that can be done to

change it now.

Rather, our attention should be focused on what we can do to

protect ourselves and establish security for the future before the house of

cards finally topples.

And I maintain the best place for investors right now

is portfolio positions in physical precious metals, quality mining and mineral

exploration stocks, and more recently, cash.

I typically don’t keep a lot of

cash in my trading accounts. But I think it’s important to keep a little cash in

your portfolios right now, because I believe we will see some exceptional buying

opportunities within the junior mining sector in the next six to eight

weeks.

Significant Buying Opportunity Coming in Junior Mining Stocks

There

is still a very limited market for junior mining stocks among large financial

institutions as seasonal traders have left for the summer — and the retail

market still hasn’t figured it out yet.

The junior mining sector, despite the

high metals prices across the board, is getting very little attention from

mainstream investors. This will cause even the best companies to weaken as the

summer months slumber along.

You can clearly see this in the TSX Venture,

which comprises about 50% junior mining companies:

From the recent high

of over 3,400, we are now below 2,000. I believe we may test the 1,700 level

before we begin to solidify toward the end of summer.

But these next six

weeks or so will provide us with some great opportunities to look for real value

within our market.

The only thing that will buck this downward trend in the

coming weeks is individual junior mining companies that announce exceptional

news, such as great drill results or a press release of a joint-venture

agreement, merger and/or acquisition news.

In general, it looks like the

balance of the summer will be tough overall for our junior mining

shares.

Junior mining stocks — particularly junior gold stocks — have been

underperforming their respective metals.

In the past 18 months, gold prices

have increased over 35%, yet gold equities have had difficulty keeping

up.

CIBC Analyst Barry Cooper recently wrote, “The net result is that gold

companies can now be purchased for about their intrinsic value for the spot

price of bullion.”

This lag in junior gold stocks, as well as in the overall

junior mining stock market, will carve out a beautiful buying opportunity for

investors to take a position at historically low prices compared to

bullion.

When all is said and done, I believe 2011 will be another banner

year for precious metals and their respective mining and exploration

shares.

Good Investing,

Greg McCoach

Analyst, Wealth

Daily

Investment Director, Mining Speculator and Insider Alert

LINK