Where do we go from Here?
That is a good question. So what now? I would like to move on with my life. Eventually I would like to finish with the dinar all together. I feel a sense of obligation to my readers. I need to let them know exactly what to expect and exactly what I believe is about to unfold. I probably will only post about this a one more time. I will leave the site up as an archive so people have what they need to combat anyone telling lies to make a buck. You pumpers know who you are! Don’t come on this site thinking you can get away with it because you will be NUKED! Too many people have too much invested and too much to lose. I won’t stand for anyone pumping here. You will be exposed!!
People had a hard time believing I sold all of my dinar. In fact, I get asked all the time did you really do that? Now that is the most asked question followed by, How much did you have? Then its, how much money did you lose?
I do think it is a good idea to count the cost. What did I lose? I had a total of 3 million 650 thousand dinar. I paid 1070 per million. I sold it all for 900 per million. I sold it back to a dinar dealer. I lost a little over $500.00. I also lost two years of my life following this investment. I spent long hours away from my family. I just knew that any minute I would be rich. I was really gung-ho! This is probably why so many people find it hard to believe I sold everything.
What did I gain? While I did not make any money I gained a great deal of things. For one I gained an education about currency and how it works. I gained an education about economics that most people don’t have simply because they don’t care. People don’t venture to far away from their life to learn something about which they have no interest. It was the carrot dangling on the end of a dinar stick that caused me to learn what I know today. If it was not for the dinar, I would still be clueless about money and economics.
I gained a great deal of good friends. I found that for the most part people who have invested in this are really good people. They don’t know they are being scammed. They tend to be responsible and accountable. They tend to carry more of a burden in life and they tend to be very giving in nature. I made some great friends as a result of this.
I gained knowledge of the internet. I learned about blogging and websites and search engines and stuff I really did not want to know about. (thank you carrot on a dinar stick) I only learned that stuff to spread the word about the dinar. Now everything I have learned I can apply to my music. It will come in handy when I develop my music site. This was something I was going to do after the dinar revalued. Not a bad haul for 500 bucks. I returned to the life I had before the dinar. I appreciate it a whole lot more too! I am reminded of a line in the movie, Shaw Shank Redemption. Get busy living or get busy dying.
What is going on with the dinar?
To understand the answer to this question we got to talk about two things.
1. Government in turmoil,
We got to understand the power struggle going on in Iraq right now. We got to realize all the players and what they are after. I will cover this in the next post.
2. Follow the money,
Whenever you want to figure out why a politician, a government, or a social group does a certain thing you got to follow the financing. Who is providing the money and why. When you follow the money all kinds of answers and agendas come into view. So let’s follow the dinar in the rest of this post. How does the dinar get here to America?
Some people argue over whether or not it is illegal to own dinar. Some quote executive order 13303. Then there is this article.
Here is a small quote from this article.
“Iraqi Dinar and US Banks
The SOFA, or Status of Forces Agreement, was proposed in November 2008. The proposal is for the abolishment of the sale of the Iraqi Dinar by banks throughout the world, making the export of the Dinar illegal. The government of Iraq constantly notifies the banking institutions to stop the practice of selling the Iraqi currency.”
Even if this were true this agreement expired at the end of 2011 when all the troops were brought home. The question still remains if is it illegal like this article claims, how does the dinar get through customs? Back when I bought all of my dinar, I purchased it all from Dinar Trade. At that time you could still get dinar in some of the banks in my area. I went through dinar trade because they had the best rates.
Let’s go back and look at how things were set up when I bought my dinar. As far as I could tell most of the dinar coming to America came from the Bank of Ireland through a business they had set up called Foreign Currency Exchange.
The bank of Ireland got it from the Bank of Jordan. The bank of Jordan owns 49 percent of the National Bank of Iraq. (NBI) This was awarded to them after the invasion. Check out the Wiki Leaks document dated may 7th 2004.
2. (C) Ali K. Al-Husry, Chairman of the Board and CEO of the Export & Finance Bank (EFB), called on the Ambassador February 29 to detail a strategic partnership agreement EFB had signed January 4 with the National Bank of Iraq (NBI) whereby EFB acquired 49 percent of NBI’s paid up capital in return for USD 7.3 million. The agreement gave EFB management control of NBI, according to the bank’s proprietary chronology that Embassy is faxing to NEA/ARN (protect). Al-Husry said that the deal had been approved by the Central Bank of Iraq and also by the Central Bank of Jordan.
This is from 2003 and it explains the last Wiki Leaks Document.
2. (S) Marto made clear that in addition to issues regarding frozen Iraqi assets, he would like to discuss the status of the $1.4 billion in Central Bank of Jordan claims on the Iraqi Central Bank. He said that Jordan felt strongly that these claims were different from other government’s claims on Iraq and that they should not be lumped with other Iraqi government obligations dealt with by the Paris Club. In response to the question raised in para 4 of reftel, Marto confirmed that the Jordan National Bank, was heavily exposed to Iraqi trade and was in danger of financial collapse if its claims on Iraq were not covered.
Dinar flowed from the CBI to the Iraqi banks via the auctions, from NBI to Jordan, from Jordan to Ireland, From Ireland’s Foreign Currency Exchange to the banks and dealers in the US. The Dinar dealers had a network set up to move the currency. Some Sites hyped the currency to unsuspecting investors like you and me, and other sites sold the dinar. I believe these sites where working hand in hand with each other. More on that in a future post. Everyone is getting a cut. US dollars flowed from American citizens to the dealers, from the dealers to the bank of Jordan in most cases via Bank of Ireland, From the Bank of Jordan to the National Bank of Iraq, and from the NBI to the CBI Auctions where it was exchanged for dinar once again. Everyone gets their cut in this process
It is important to note that this is only one of the main paths dinar was brought to the US. By the year 2008 the Iraqi banks were doing great. All these US dollars were coming From American citizens. American Citizens were promised they would be made rich by the dinar dealers. The banks in Iraq were cleaning up. Check out this Wiki Leaks document. It is dated 2008
Fouad Mustafa, chairman of the Iraqi Private Banking Association and president Credit Bank of Iraq, told econoff on July 6 that private banks are growing and “doing well” in Iraq. In the past three years, the average capital of private banks in Iraq has grown from approximately USD 6 million to over USD 40 million.
The Credit Bank currently has about USD 500 million on its balance sheet and 10,000 customers. It adds new customers every month. All of its bank branches are connected electronically, allowing customers to deposit or withdraw funds from any branch.
By the time I heard about the dinar the banks were doing well, but Iraq’s progress had been slow. At that time Iraq ranked 152 out of 181 nations at the World Trade Center check out this wiki link. Here are a few observations
“NIL’s provisions should provide an open investment regime for foreign investors. However, the NIL does not permit foreign investors to own land, though they may lease (for 50 years, renewable). It also does not cover investments in the oil, banking and insurance sectors. (A copy of the National Investment Law can be obtained from the U.S. Department of Commerce Iraq Task Force website – http://www.export.gov/iraq/.)”
“Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes”.
“whether foreign investors will enjoy protection from expropriation that meets international standards will likely depend on domestic implementing legislation and/or future bilateral treaty obligations with investor states. The United States does not have a Bilateral Investment Treaty (BIT) with Iraq.”
“Article 27 of the NIL, which details the rights of Iraqis and foreigners with respect to Iraqi law, refers to dispute resolution. However, the absence of implementing regulation makes application of the law uncertain in practice”.
So by 2009 this was a well-oiled machine. Now we get to the Status Of Forces Agreement
Currency and foreign exchange
‘The United States Forces may not export Iraqi currency from Iraq, and shall take measures to ensure that members of the United States Forces, of the civilian component, and United States contractors and United States contractor employees do not export Iraqi currency from Iraq.”
This is part of what the first article posted was talking about. Dinar could only enter through the proper back door channels. It was only illegal to go outside the banking structure.
Something changed in May of 2011. Foreign Currency Exchanged was sold to Wells Fargo
09 May 2011
Bank of Ireland announces that it has agreed to sell its US based foreign currency business, Foreign Currency Exchange Corporation, Inc. (“FCE”) to Wells Fargo Bank N.A. (“Wells Fargo”).
This happens to be the same time Ali from Dinar trade closes up shop. This is also the same time the banks in my area stop selling dinar. When I sold my dinar a few weeks back none of the banks would exchange it. My brother down in Texas could not sell his dinar through any bank that had a foreign exchange service where he lived. He is in Dallas Texas. They knew of no currency place that would exchange it. Banks in my area that use to deal with it won’t even touch it now. No bank wants it. This to me was a big Red flag!
My options for getting rid of the dinar were now limited. I could sell it on eBay and try to break even, or I could sell it back to a dealer. I sold it back to safe dinar. I had my money in just a few days. They gave me 900 per million. Dealers need the dinar to sell to new people who are just learning about this investment. Dealers are still getting dinar from Jordan too. You can get dinar from Jordan. Look at this eBay auction
IRAQ NEW UNC IRAQI 50 DINARS X20 LOT 100,000 FREE SHIP 2000 PIECES
Item condition: Uncirculated
Ended: Apr 19, 201217:50:21 PDT
US $880.00 [ 0 bids ]
FREE Economy Shipping
Item location: JORDAN, Jordan
The dinar keeps coming in and the dealers buy it up and sell it to new investors. They also supply a sense of liquidity when somebody wants to get out. The US money now goes the other direction. It goes through Jordan, from there it goes to the NBI, from there it goes to the CBI auction and more dinars are sent out. Once again this is but one path. Shabibi released 6.5 trillion dinar in the month of March why? This is the way we wash the money, wash the money, wash the money!
Dinars come to the US and Dollars go to the Central Bank of Iraq! Everybody gets their cut in the process. The currency auctions buy more and more US dollars and the currency supply expands. It is important to note that this expansion is not a normal expansion due to the loan process or newly acquired debt. This is the base money supply expanding. This is much harder to contract and makes a Redenomination scenario much more plausible.
How will this all play out?
Please allow me to give you my opinion of the wiki Leaks documents I poured over. This is what I now think will happen. The currency supply will continue to expand because it keeps More US dollars coming into Iraq at a time when the dollar is getting scarce. Iraq will need to redenominate because of the supply. If they redenominate today they will take 69 trillion and make it about 69 billion dinars. Thus reducing the currency supply and raising the value. At the same time they will remove and delete the zeros!
When this happens people in the United States will not be able to go to the banks and trade in their dinar. At that time US citizens will have no legal recourse even on an international basis because of the lack of law. They will go to the dealers to try to trade out their dinar. The dealers will all be gone. They will close up shop and take their profits and cuts with them. They will be looking for the next con, or maybe they will just retire all together. The American people would have shipped anywhere from 500 million to 2 billion US dollars over to Iraq with no way to get it back. Once the transfer period expires and time runs out to trade in the new notes for the old Americans will be stuck holding a lot of worthless dinar paper.
And that is how the scam works! You will need to go to Iraq to trade in. the hard part will be getting through customs with a vast amount of dinar and getting to Iraq with no way to protect you or the dinar. Good luck with that.
I use to believe that the dinar itself is not a scam. There are just people running scams with a legitimate currency. After reading a ton of Wiki Leaks documents, I no longer believe that. I believe