Adam's Rate

[magawatt]

I'm thinking that demand for Dinars will skyrocket after RV. What will change the exchange rate after the RV? Will it be demand or only by action of the CBI? Will there be an E-black Market?. Will the CBI be selling dinars at auction for a 1000 times that they just bought them for?

[redsand]

CBI is a smart "group"...they definitly have a plan to make a lot of money off of us.

[Sun Devil]

Anyone who has a hard time accepting a dime really needs to get their head out of their ass. At a penny I'll be laughing all the way to the bank.

Tell me why this guy got a negative from someone??? What good is a "reputation rating" if it can be so skewed by an honest post getting a negative??

I'll give you a +1 back.

[bigcity Bob]

IF ADAMS PREDICTION IS RIGHT, AND THE AVERAGE INVESTOR HAS 1 MILLION DINAR, THEN THE DREAM OF WEALTH S DOWN THE DRAIN.

MAYBE PAY OFF A FEW BILLS , BUT NO ONE WILL RETIRE ON 100K,,..

[N2DEEP]

just give me something but i highly doubt they will come out at .10 cents more up to par with the dollar.

[Bobbydee]

It is the best example in my opinion on how Irag will pay for this RV. Well done Adam! This is what we as investors should look for and not all the craziness being posted about higher rates. I have always believed it would come out low and float up. Thanks for the excellent explanation. +. God Bless Semper Fi

[speculatorsRIDE]

Why does everyone assume that Iraq has to revalue at an exchange rate above a dollar to get Iraqi's to stop using the US Dollar? Currently Iraq has a dual currency regime, with the U.S. dollar enjoying legal tender status. Iraqi GOI can pass a law stating that the US Dollar is no longer legal tender in Iraq and require citizens to exchange US Dollars for IQD at the current rate of 1170IQD to $1. Problem solved and Iraq would then be dedollarized and they wouldn't have to change their exchange rate to do it.

Think about it. When was the last time you payed for anything in the US using anything other then the US Dollar?

Edited October 27, 2011 by speculatorsRIDE

[jas428]

Why does everyone assume that Iraq has to revalue at an exchange rate above a dollar to get Iraqi's to stop using the US Dollar? Currently Iraq has a dual currency regime, with the U.S. dollar enjoying legal tender status. Iraqi GOI can pass a law stating that the US Dollar is no longer legal tender in Iraq and require citizens to exchange US Dollars for IQD at the current rate of 1170IQD to $1. Problem solved and Iraq would then be dedollarized and they wouldn't have to change their exchange rate to do it.

Think about it. When was the last time you payed for anything in the US using anything other then the US Dollar?

I agree. There are ways to de-dollarize that have absolutely nothing to do with RV-ing the IQD. And also, de-dollarization can still occur with an increasing rate over time. Noone ever said they had to stop using the dollar overnight; this too will be a long process.

[IchDien]

Why does everyone assume that Iraq has to revalue at an exchange rate above a dollar to get Iraqi's to stop using the US Dollar? Currently Iraq has a dual currency regime, with the U.S. dollar enjoying legal tender status. Iraqi GOI can pass a law stating that the US Dollar is no longer legal tender in Iraq and require citizens to exchange US Dollars for IQD at the current rate of 1170IQD to $1. Problem solved and Iraq would then be dedollarized and they wouldn't have to change their exchange rate to do it.

Think about it. When was the last time you payed for anything in the US using anything other then the US Dollar?

Perhaps you should think this out a bit further....say they did as you suggest....do you think stability would result? I doubt it. More likely to happen is that the country's citizens would revolt because it would mean that suddenly the money they were paid in USD is now worth nearly nothing. Common sense dictates that the GOI and CBI would want a smooth transition from USD to IQD, not a sudden uproar and civil revolt.

[zaborniake]

Tell me why this guy got a negative from someone??? What good is a "reputation rating" if it can be so skewed by an honest post getting a negative??

I'll give you a +1 back.

Thanks.

[TFK]

First, Adam forgets here that the CBI has already said they will be deleting three zeros, from the value, meaning dinars move to 87 cents, which makes his 10 cent theory wrong automatically.

Second, Adam is likely right in that the initial value is likely to increase over time, CBI has already said they will increase the value to the highest in the Middle East over two years, but he's wrong in repeated RVs because the GOI would have to redo everything each time. Seeing how hard it is in the first RV, repeated RVs are ridiculous to believe.

Third, an initial spread of 25% is ridiculous and has never occurred anywhere else, why would it here?

Fourth, every place registered in the USA that is currently advertising $150 flat cash-in fee and no percentage spread fee would be charged and sued for false advertising if they then started charging a spread fee. Since multiple vetted sources selling dinars that are registered with the US Treasury are quoting the same fee structure, it is very likely they will hold to their rates. They are a business after all, unlike Iraq (which is NOT A BUSINESS but a country).

Fifth, let's say you get 1 mill dinar...

1,000,000 * 87 cents = $813,232.50 (let's say $800,000)

8000,000 * 35% (top income tax rate) = $280,000 (your tax bill - thank your IRS)

$520,000 = your profits on 87 cent RV and with a LOP (as being defined as the deletion of three zeros from the VALUE of the currency, as stated by the CBI)

+1 if you like your potential profits!

Sixth; there is an in country rv and we loose everything. I hope that never happens but it is still one of the possibilities.

The dinar dealers can't promise us anything. They've said these things to get you to buy from them! Some people are fortunate enough to have banks near them that sell at the CBI rate plus a small spread.

They (Iraq), don't "have" to do anything to continue raising the value, other than raise it! And raise it again if they feel like it! It's there wealth that backs the currency and with a huge, ever growing reserve and all the commodities, they'll do great and we'll get rich if we stay invested!

Once you have a nice stack of cash to invest, you can make tidy profits from it. That's why most of us struggle, we never have the $200k to play with in the first place. You've got to make the money work for you.

There is no way that we will see these high rv rates everyone keeps talking about. At a dime, we'll take home a handsome return and turn it into the millions we dream of through re-investment!

[learning all i can]

well, I'm tickled more about his positivity(or should I say, his excitement) of before thanksgiving than I am about his rate.......I can live with the .10....just get'er'done.......A big 'ol turkey on my table for my family and knowing what comes next means the world to me......

[FOUNDIT]

Why does nobody talk about the Dinar the cbi holds.There Dinar RV'S AS WELL.And i guarantee you they have more then anyone.Just a thought.

[KrispyKreme]

It has been said a thousand times. NO ONE = means NO ONE knows.

With all of the news about Iraq lately = maybe it is one more chance for some to make a little more money - before more sell and new investors stop coming.

Maybe it is time for a new pool of newbies.

OR

Maybe it is going to happen.

[umbertino]

Quote

Regardless, .10 won’t buy the beach house, but it’s still a heck of a return.

End Quote

That depends on how many Dinars one holds... Surely some will be able to buy that beach house also with a 0.10 rate.

I am not greedy. I just want 50 cents or better.

At 10 cents I'll be happy... At 30 cents I'll be ecstatic.... At 50 cents I'll be speechless..........Anything higher than that will be a super-perfect bliss.

Just because Adam owns a site, it doesn't make his rate "prediction" any more or less likely than anyone else's. I'm hoping for any RV rate that prevents a straight RD.

That's the whole point.

Quote

but Shabibi also said he could sustain an RV at $12...so...that'd be sweet too!

End Qoute

That would be one of those cases where we could afford a castration of zeros and still make a 1,200% profit ( 12 times our Capital, minus commissions, fees, etc.)... But It's totally unrealistic imho.

Edited October 27, 2011 by umbertino

[rope]

Well.......the .10 number does put a damper on the "dream list". Always tried to keep myself grounded to reality. And yes, we will still get a large return on our investment. But, with the spread, taxes it will decrease the pay off debt list as well. Don't get me wrong, anything made on this will be a blessing and more than we had without it. But life does have a way of messing with the plans. Not too sure about the job future-could be out of one next year-never know.....like some others here-this was a once in a life time chance to get ahead......not just score another "investment". Please, no speeches on you make your own way.........hold some back.....invest......

Well, I'm trying to stay with my own theory: closer to .85-$1. There will be a timeline to force us to cash all in......And their future will be rocky.....We shall have to wait and see

There...I feel better. Thanks for listening!

Rope

[littlefeet]

Regardless, .10 won’t buy the beach house, but it’s still a heck of a return.

[speculatorsRIDE]

Perhaps you should think this out a bit further....say they did as you suggest....do you think stability would result? I doubt it. More likely to happen is that the country's citizens would revolt because it would mean that suddenly the money they were paid in USD is now worth nearly nothing. Common sense dictates that the GOI and CBI would want a smooth transition from USD to IQD, not a sudden uproar and civil revolt.

Perhaps it is you that should rethink this. The Iraqi citizens would lose nothing at all. They would exchange their US Dollars for IQD at the current exchange rate of 1170 to 1. Iraq has plenty of currency to supply their citizens with IQD and remove the US Dollar from circulation. Remember they have 30 trillion IQD currently printed.

1170 IQD and 1 US Dollar have the same purchasing power. Every US Dollar they pull from the streets into the CBI would be added to their foreign currency reserves and then could be used to support a revalue. This is a good thing.

A couple other points to ponder. The removal of US troops from Iraq will allow a revalue of the IQD. We want our ground troops out as soon as possible and the war declared over. Secondly, we built a 700 million dollar embassy in Iraq for a reason. We are there in country and will be from here going forward. That will not change.

More food for thought. What if the CBI places the 25 and 100 dinar coins back in circulation and revalues to 585 IQD to $1? That would double the purchasing power of the dinar. Think the Iraqi's would revolt while their turning in their USD at 2 to 1 what it was worth the day before? How many investors would sell off at a return of double their money? Meanwhile, other investors would be buying in. CBI making money on both transactions. See anything is possible. In speculation you need to be prepared for any outcome. This is a long term investment.

[Dinariana]

AlI have to say is that this scenario that Adam presents occurred to me a couple months or so ago, and I wrote it out to my dinar friend and put it here on this site twice, and got no response.

It's the only way I can see them affording an RV, and it's the only reasonably decent answer to the lopsters and naysayers who in general have the most logical arguments.

[smee2]

Well, I don't want a beach house. But I do want to make enough on the RV to buy, or build (most likely build) a wheelchiar accessible home. I am heading in that direction and want to have a home I can get around in when I am stuck most of the time in a chair. It isn't a question of if, but when. Rather like the Rv. Fortunately I have invested in the dinar to an extent where even if it were to RV at a dime I could build the house I want, provided the government doesn't want to take the lions share.

I have sort of given up on the RV happening any time soon. It just keeps being put off, and speculated on and guru'd to death and hasn't happened yet. And most of what people say has to happen does and then it still doesn't RV. So, I am just going to sit here and enjoy the forum and not worry about date or rate. More to life than getting all tied up in the "need" associated with an investment. There are not guarantees in life, or in investments. So ... wait and see.

smee2

[artg]

that $1.17 sounds logic to me make it worth a little more than the u.s. dollar to wean the iraqis off our dollar more buying power for them ....also a cheap buy back for them on the way to $3.22 down the road jmo

[Hawaii 50]

Remember Adam is a very cautious regarding what he will post as far as rates and dates. He is just playing it safe I respect that. But Iraq has stated many times that they could support a 1-1 rate. I think it will be at least 0.86 to 1.20 . The country wants to limit the amount of debt they have and Adam is right the CBI is smart and will not just Dump the country into more debt to be made up at a later time. So whatever the good graces bless us with we should be thankful.

[design interrupted]

Anyone who has a hard time accepting a dime really needs to get their head out of their ass. At a penny I'll be laughing all the way to the bank.

Zabs,

I've always loved your straight forward approach.

Cut through the crap and get straight to the point!