Recently a woman named Marisol Luna who claims to be an international economist has been posting on Dinar Recaps and other sites. Among other observations, she said “While Kuwait was invaded by Saddam he took his currencies out and its value plunged from almost $4.00 dollars per Kuwait Dinar to .05 cents as much. Free from Saddam and regaining control and opening again National Bank of Kuwait honoring the currency at original value of $3.64+. About three months later they issue the new Kuwait Dinar and everyone was happy. New millionaires were born with this process.”
I’ve repeatedly debunked this myth of the millionaire-making Kuwaiti RV. You couldn’t buy Kuwaiti dinar from any bank at anything less than the official value of $3 + … EVER!!! And even if you were fortunate (?) enough to be in the Arab world during Desert Storm, in order to buy enough Kuwaiti dinar at 5 cents on the black market to make a million dollars you would have needed to have about $15,000 in cash that you were willing to gamble on the currency of a country under Saddam’s control with the Iraqi dinar as the official currency. If you bought at a dime it would require $30,000 cash. At 15 cents $45,000 ….. etc. To date not one person has provided evidence of anybody making millions on the Kuwaiti dinar during Desert Storm. I’m sure some people made a few thousand here and there, but millions? Rubbish!
Of course her pro-RV post was met with unanimous approval and praise at Dinar Recaps since “negative” posts and critical thinking are not allowed. They are allowed here, however. Ms. Luna’s lengthy explanation of why Iraq would RV was basically a textbook example of a guru taking perfectly legit IMF documents and twisting everything about necessary reforms to mean they’re gonna RV and make us rich! Here’s a good example:
Paragraph 8 “Developing a stronger financial sector development will require moving away from the current model in which weak state-owned banks dominate the financial sector and enjoy favorable treatment vis-a-vis private banks. A solid banking system that can support growth and employment will require the full financial and operational restructuring of state-owned banks and creating a level playing field for both private and public banks.
IT MEANS AND I CONCLUDE: IRAQ REQUIRES MORE THAN OIL, GOLD AND MONEY. IT’S OFFICERS AT CBI REQUIRE GOOD FAITH FOR THE COMMERCE, THE INDIVIDUALS AND EVERYONE. REQUIRE MOVING FROM THE MONOPOLISTIC BANK GAMES TO AN OPEN TRUSTWORTHY INTERNATINAL BANK STATUS ONLY TO BE OBTAINED WITH A REVALUATION OF THE CURRENCY TO BENEFIT EVERY LEVEL OF ECONOMY THERE AND OUT OF IRAQ. IT WILL REQUIRE NO MOREEXCUSES FROM CBI AS YOU WILL SEE ON THE LAST EVIDENCE TO BE PRESENTED.
I looked around and didn’t find anything on Ms. Luna other than her Facebook and Twitter pages which included no economics credentials. About that time somebody emailed me this link.
I guess the reason I didn’t find it is because I wasn’t searching in Spanish. If you are fluent in Spanish you won’t need a translator, but I’m not so I ran it through Google Translator and the gist of this is that a consumer protection site in Puerto Rico investigated Ms. Luna and wasn’t too impressed to say the least. So much for that.
Folks, no legit economist, investment adviser, or currency expert is going to endorse the dinar investment. They’d be the laughing stock of their chosen profession. When you hear somebody claiming to be one of the above and they’re touting the incredible potential of the IQD you know right away that something’s amiss.
UPDATE!!! Thanks to Brian who provided the link to this chart. I think my readers are the smartest people in the dinar world. In case you don’t know, “fils” are divisions of the Kuwaiti dinar into thousandths. What this chart shows basically is that the Kuwaiti dinar’s official value from 1986-2008 was $3.25 – $3.70. ($1/.307 – $1/.270)