When the Iraqi dinar investment scam began shortly after the IQD was introduced in late 2003, the anticipated revaluation was peanuts compared to what people were predicting five years later or more. A dime was about all that most hoped for, but a few bold souls dared to argue for an RV to the value of Saudi Arabia’s currency at a little under 30 cents.
When the articles on “deleting three zeros” began to appear in 2009, the dinar dealers and dinar pumpers were in a tight spot. How do we keep selling dinar when Iraq is talking about doing a redenomination? The solution they came up with was devious but effective. They would tell dinarians that “deleting three zeros” doesn’t mean redenomination. It means that the three zero notes will be “deleted” (or removed) from circulation. All the references to removing three zeros were referring to the larger denominations of 1K, 5K, 10K, and 25K notes that would be withdrawn from circulation after the RV. (They somehow overlooked the fact that the 10K note actually has four zeros rather than three, but nobody seemed to notice.) The new bills that they introduce will be lower denominations of 1, 5, 10, 20 … etc. just like the US dollar. It also means that they will remove three zeros from the value of $.00086, which will produce a new value of 86 cents, again in a revaluation rather than a redenomination.
Although this explanation didn’t fly with some nervous dinarians, the vast majority seemed to embrace the idea, and the thought of experiencing a 100,000% increase instead of a measly 10,000% sent dinar sales into overdrive, increasing exponentially in 2010 and 2011 as a result. Dinar dealers and pumpers were thrilled, and they decided that since this scheme worked so well with the dinar, they might as well use it for other currencies.
$100 Tr. Zimbabwean dollar note
In the spring of 2010 Breitling, Frank26 and others started hyping the potential of profiting from a revaluation of the Vietnamese dong. Whereas the dinar only had three zeros in its value of $.00086, the dong had four in its value of $.000053. If they can remove three zeros from the dinar, why can’t they remove four from the dong? Easy money, right? But was there any news or financial article that made a revaluation seem likely? Not at all. It was all rumors based on the fact that some currency dealer’s supplier wasn’t able to come up with any product one month. Surely the shortage was due to a pending revaluation, right? Wrong. The dong has steadily lost value since 2010 as part of Vietnam’s policy of building their exports by devaluing their currency. But that hasn’t stopped dealers from selling it, pumpers from pumping it, or speculators from buying it. Eventually this same concept made its way to other currencies with a lot of zeros in the value, such as the Indonesian rupiah, the Iranian rial, and the Zimbabwean dollar (which hasn’t even been a currency since it was completely demonetized a year ago.)
There was absolutely no basis for expecting any of these currencies to significantly increase in value, so the pumpers borrowed a line from the world of conspiracy theories. “We’re going to have a global currency reset!” Supposedly the world’s currency system was going to be drastically restructured with a return to asset backed currencies accompanied by the termination of the Federal Reserve. The only assets that have ever backed currency are gold and silver, but the pumpers couldn’t say that we’re going back to the gold standard because the US has more gold than any other country, so they created this catch phrase of “asset backed currency” instead. This allows for Iraq and other poor countries that have a wealth of natural resources to experience tremendous revaluations, thus bringing them and those who hold their currencies instant riches.
This went over great with the Ron Paul “gold is the only real money” crowd, the “they’re coming for our guns” anti-government crowd, and the “shape shifting reptilians from outer space” crowd. It also played well in the inexperienced and uneducated church circles where people believe that Iraq is going to rebuild Babylon as part of bible prophecy.
Marcus and I were both loosely associated with this group for a short time, until we began to do true and honest research. In time we both came to see through all of this nonsense and realized that we had an obligation to inform and warn people about this massive hard currency scam. Nobody’s going to get rich from a revaluation of the dinar, dong, rupiah, rial, or Zim. Nobody’s going to get rich from any global currency reset because it won’t happen. The Federal Reserve isn’t going away any time soon. The dollar is not on the verge of collapse. The sooner people wake up and accept reality the better.
It seems clear that the pitch from people peddling hard currencies is that the more zeros they have on them, the greater the potential payoff. Why don’t you ever hear any of these guys pushing the Russian ruble ($.015 – third largest oil producing nation), the Mexican peso ($.055 – the tenth largest oil producer in the world), the Brazilian real ($.286 – the ninth largest oil producer), or the Saudi riyal ($.27 – the second largest)? There simply aren’t enough zeros on their currencies to sell anybody on the idea of getting rich quick from a revaluation. Instead, they offer the Iraqi dinar at $.00086, or the rupiah with one more zero than the dinar, or the dong at $.000045, or the zim at ….. well actually it has no value but you can buy a 100 trillion note for about $70 online.
These currencies have a lot of zeros because their countries had a lot of problems, and no country with a lot of zeros on their currency has ever revalued those zeros away. They can only be removed through a redenomination, and when that happens speculators holding that currency overseas risk losing every penny they spent.
Iranian Rial – $.000032
Vietnamese Dong – $.000044
Belarusian Ruble $.000050 – Redenominated in July 2016 to $.50
Indonesian Rupiah $.000076
Laotian Kip $.00012
Paraguayan Guarani $.00018
Guinean Franc $.000136
Cambodian Riel $.000244
Colombian Peso $.00034
Mongolian Tughrik $.000443
Tanzanian Shilling $.00046
Iraqi Dinar $.00085
S. Korean Won $.00090
Chilean Peso $.00152
Somali Shilling $.00173
Costa Rican Colon $.00182
Hungarian Forint $.00365
Sri Lankan Rupee $.00689
Icelandic Krona $.00855
Nepalese Rupee $.00935
Pakistani Rupee $.00955
Kenyan Shilling $.00985