The other day one of our regs named DaveD brought to our attention a recent post by Roger Dorman, owner of the Dinar Daddy site and husband of Treasury Vault owner Angela Dorman. As I read through his thoughts I knew that this tosh had to be addressed. The words of George Bush Sr. came to mind. “This Shall Not Stand“. Below is Roger’s post followed by my rebuttal.
Why the Long Faces? Iraq Is On The Rise!
I’m posting this to address the absolute change in attitudes of so many following the Iraqi Dinar and its speculated-about revaluation. The feeling I get when reading what so many are saying about the IQD is so different than what I had two years ago. I’ll provide an example of the issue, problem, or situation I see, then I’ll give my thoughts about that particular issue and back it with a positive perspective. I’m hoping my thoughts shared here will help many gain perspective and retain resolve about the official currency of Iraq.
First off, it’s clear to me that the constant pumpers who’ve tirelessly shared their daily prognostications about the imminent revalue of the Dinar (my site’s perennial “Doozies” and “Rumors” dwellers) have really damaged the morale of their followers, and that of the reputation of Iraq’s legitimate currency. Here we are year after year and the same people continue to be wrong. Bad information naturally gives the Dinar a bad wrap.
My take on this? Well, despite incorrect information and false rumors, the fact remains the IQD has grown in value over the years. What was once valued at 4,000 IQD to 1 USD, is now valued at 1062 IQD to 1 USD. Iraq is only improving daily (Rome wasn’t built in a day, neither was the USA, and China is taking forever but growing nonetheless). So, are you really worried the IQD is a scam? Really?! The only scam happening in this speculative play is coming from those creating false hype and rumors in order to generate interest. Otherwise, sit back, relax, and enjoy the ride of Iraq being “raised from the ashes”.
Secondly, the misfortunes of the few have somehow been placed on the many. What I mean by this is that some well-known “gurus” and posters of information within the online Dinar-following world have occasionally dealt with public matters that in one way or another smeared the Iraqi Dinar by association. Many news outlets in the past have tried to tie them together just because of the common interest but the reality is that whatever their troubles were had NOTHING to do with the official currency of Iraq but with how they handled their business activities and the things they chose to involve themselves in.
My take on this? What transpired publicly with certain individuals had nothing to do with the legitimacy of the official currency of Iraq. Their personal actions, activities, charges, and concerns don’t impact Iraq in the least. I’m sad for all involved. Personal actions by individuals don’t immediately destroy the fact that the IQD has real value and can be liquidated by Dealers or utilized in Iraq. The Dinar currency itself is not a scam. How people present themselves, handle their business, or what they say for gain can be.
Thirdly, somehow speculation around the revaluation of the Dinar has somehow been tied to various timelines. Due to there being so many who’ve given a timeline for when Iraq will raise the value of its currency against that of the Dollar and other world currencies, many have disregarded the currency as a scam because timelines came and went with nothing to show for it.
My take on this? Rome wasn’t built in a day. Why would anyone know an exact time and day? Why would a potential increase in value of a currency that would instantaneously create trillions in wealth across the world be handled tritely in a way that so many would know about it? Why would they they rush the process? The answer… they wouldn’t! The date and time are no doubt in constant flux. There is no doubt a plan for Iraq that meets the needs of Iraq’s citizens. Even the money coming into Iraq from western speculators was thought out and allowed. Yes, each of you who holds Iraq’s Dinars is a part of a bigger plan. Things will happen, but in the time of Iraq and not before.
Bottom line… I believe the Iraqi Dinar will increase in value over time. Regardless of a re-denomination, revaluation, or gradual increase, I’m confident in my holdings. Its up to each of you to come to your own comfort level about what your timeline is, how much you hold, and what you’re willing to do about it. Just remember though, your timeline and threshold for waiting may or may not match that of Iraq and the rest of the world.
Go Understanding… Go Patience… Go Dinar!
Iraq is on the rise? Well, let’s just ignore the fact that 2013 was the most violent year in Iraq since 2008. Let’s overlook the fact that Ramadi and Fallujah recently came under the control of Al Queda. Let’s forget that over 900 people were killed in Iraq in January. Let’s dismiss the fact that Iraq is considered one of the most corrupt countries in the world. Let’s assume that the economy is growing at 10% or more every year. Let’s just pretend that the government is getting things done at a record pace, that all of the sects and political parties are getting along famously, and that everybody in the country is joining hands and singing Kum Bay Allah. That still doesn’t mean that the dinar is going to go up in value. Currencies aren’t stocks. They don’t go up in value just because the economy is growing. That’s just one of the many lies told to draw suckers into this investment scam.
So the sentiments of the dinar community have changed over the past two years, have they? Hmmmm … I wonder what could have contributed to that? Let’s see …… what happened two years ago, Roger? Could it be a certain blog was launched? Since January of 2012 the owner/guru of one of the most popular dinar forums was exposed as a fraud. A ton of information debunking pumper lies and revealing the truth about the dinar “investment” and the people promoting it has been made easily accessible to the dinar community. Also four dinar douchebags have been indicted and there have been two dinar fraud convictions. In addition to all of that there were about a thousand failed RV predictions from gurus featured frequently on sites like yours, and the dinar hasn’t even gone up 1% in value.
As for your Doozies, if you’re so concerned about the impact on morale caused by this nonsense why post it on your site? Could it be the traffic those lies rumours generate and the advertising dollars that they produce? The bad wrap [sic] isn’t just the result of the BS intel, though. It’s also the result of facts being presented to the dinar community that weren’t so readily available a couple of years ago. Facts like the growing money supply in the tens of trillions and the stated plan to demonetize the IQD upon redenomination. Facts like there was no RV in Kuwait or Germany, and the largest revaluation in history was 35% which would barely even cover the spread of buying dinar through a place like the Treasury Vault.* Hard to be upbeat after discovering those annoying little facts.
Speaking of misinformation, the IQD was never valued at 4000:1 Roger. That was the old Saddam dinar’s market value. The IQD was introduced at around 1500:1 and is currently at 1166:1, not 1062:1. The vast majority of the increase in value came as the CBI placed the IQD on a crawling peg exchange regime in a successful effort to bring down inflation, then they went back to their policy of stability which they’ve been on for five years now. The increase had nothing to do with economic growth, and the fact that the dinar community is getting educated about this is probably why many people are walking away from the dream of instant wealth from a fantasy RV. That fantasy is the scam, Roger. Nobody is going to get rich from a redenomination, and any gains from revaluation will likely be wiped out by markup and exchange fees because currencies don’t revalue enough to overcome the nearly 20% spread dealers are charging.
The “certain individuals” that got into trouble were charged with fraud, Roger. And part of the fraud charges were lying about the CBI’s currency reform plan which is a redenomination and not a revaluation. One of them lied about being a former VP at J.P. Morgan Chase, too. They also lied about the US Treasury holding trillions of dinar and EO13303 protecting dinar speculators. Sure, the dinar has value and the currency itself isn’t a scam. If you’re planning to visit the wonderful tourist spots of Iraq on your next vacation you might want to pick up some dinar so that you can make some purchases with it when you’re there. But you’re not going to get rich by holding dinars any more than you are going to get rich by holding Mexican pesos, and anybody who sells you dinar by telling you that is a scammer.
Timelines? Yeah, I guess some got discouraged because timelines passed with no RV. But come on. If a person truly believes that the dinar is destined to go from a tenth of a penny to a dollar in value wouldn’t they hold on regardless of failed timelines? I certainly would. Even if it took 20 years that’s a heck of a profit. (100,000% increase divided by 20 years = 5000% annual returns. Sweet, huh?) The bottom line is people are giving up because it doesn’t make sense and they eventually figure that out. It’s not about timelines. It’s about math. You can’t back 85 trillion dinar with $80 billion in foreign currency reserves and still have room to revalue enough to make people rich.
Trillions in wealth? See the paragraph above, Roger. The needs of the Iraqi citizens will be met with a currency that is easier to use in daily transactions, meaning fewer zeros. That will be accomplished by the proposed RD (lop). If the assumption here is that this RV will give the Iraqis wealth, that’s assinine. You don’t RV your country into wealth. Wealth comes from work, from progress, from education, and from stability. It doesn’t come by waving an economic magic wand.
The Iraqi dinar will not increase in value over time unless the CBI changes their policy of exchange rate stability (Annex 1 page 3), and there is currently no indication that they intend to do that prior to replacing the IQD.
Go Understanding… Go Common Sense … Go AWAY, Dinar Daddy!
–Sam I Am
* Currently one million dinar from The Treasury Vault costs $1010 (40 $25K notes). A 35% increase in the buyback price of $800 would be $1080, leaving a profit of $70 before shipping fees.