This page was recently brought to my attention and I was asked to address it. I’ve already debunked many of the points made in it, but for the sake of convenience I’ll repeat myself as necessary in this post. The article’s text is regular black, the pumper’s text is in red, and my comments are in bold black.
U.S. Congressman Bennie Thompson: “Don’t Buy Iraqi Currency” ~ Contrary To U.S. Executive Order 13303 & Iraq Coalition Provisional Authority Order 39. Hmmm?
The state’s 2nd District congressman released a statement Monday saying his office had received numerous complaints from constituents who had purchased Iraqi dinars and couldn’t use them or exchange them for other legal tender.
He directed anyone who has purchased Iraqi dinars to contact the U.S. Commodity Futures Trading Commission to file a complaint or issue a tip at 1-866-366-2382 .
The dinar is not traded on any legitimate foreign exchange and is worth a fraction of a dollar.
A federal grand jury last money indicted three men from the Toledo, Ohio, area for their roles in the operation of a $23 million fraud scheme involving the sale of Iraqi dinar currency and two nonexistent hedge funds.
Investors lost about $23.8 million from dinar sales, according to the indictment.
So explain how fraud is correlated to Executive Order 13303 & Iraq’s Coalition Provisional Authority Order 39. Both Laws were originated in 2003-4 by The United States & Iraq authorities and promoted to allow and encourage Americans to own the IQD in support of the war efforts and to build wealth when Iraq got back on their feet.
This is addressed in the DOJ’s dinar fraud indictment of Brad Huebner and Rudolph Coenen. They claimed that EO13303 gives us the right to own dinar, and yet there is nothing in that order that refers to the dinar or any other currency. It’s an executive order protecting the development fund for Iraq. The argument here isn’t with loppers or anti-gurus. It’s with the DOJ.
http://www.justice.gov/usao/ohn/programs/vw/Huebner/Huebner_Indictment.pdf (page 5)
The above article talks about a U.S. congressman advising his constituents not to buy dinar. Although that issue is somewhat ignored I’ll comment on it. For several years I have heard repeatedly from gurus that most politicians own dinar, and yet not one name has ever been offered as evidence to support that claim. Well now we have a congressman who apparently doesn’t own it and doesn’t want to see poor people in his home state of Mississippi throwing their money away on this scam. Let’s see the opposition produce an article naming a congressman who says he’s keen on the dinar. Not gonna happen.
Back in 2004, President George W. Bush put a law into effect allowing anyone to invest in the Iraqi currency, known as Dinars. When the US went to war with Iraq, the Iraqi Dinar, their currency was taken off the World Monetary Exchange until their sovereignty would be given back to the Iraqi’s.
What is it that allows American citizens to invest in Iraq?
Presidential Order 13303: Allows US Citizens to invest in the new Iraq. Under E.O. 13303 COUPLED WITH The Coalition Provisional Authority Order 39, a US Citizen has the same rights to investments as an Iraqi citizen.
CPA 39: Foreign Investment Also Known As The Bremer Order.
The order on foreign investment in Iraq includes five elements: (1) Privatization of state-owned enterprises; (2) 100 percent foreign ownership of businesses in all sectors except oil and mineral extraction, banks, and insurance companies (the latter two are addressed in a separate order); (3) “national treatment” of foreign firms; (4) unrestricted, tax-flee remittance of all funds associated with the investment, including, but not limited to, profits; and (5) forty-year ownership licenses which have the option of being renewed.
Search through CPA order #39 and you won’t find the words “dinar” or “currency” anywhere in it. Again, neither EO13303 or CPA 39 have anything to do with speculators buying dinar.
The U.S. Government is the Largest Holder of Iraqi Dinar Outside of Iraq
The U.S. Treasury does not officially list the Iraqi dinar as part of the country’s forex reserves. Exactly how many dinars were traded is not mentioned, but it does make reference to “billions of U.S. dollars” traded to Iraq.
Experts speculate the U.S. government received nearly 4 trillion Iraqi dinars at an exchange rate of 4,000 dinar to 1 USD. If this is even close to true — and the UN allows Iraq to revalue their currency up to 1 USD: one Iraqi dinar — the U.S. government would stand to profit in trillions… as would anyone else who speculated on the dinar over the years. (1)
This is also addressed in the indictment. The US Treasury does not hold any dinar for investment purposes, and only has enough dinar to handle daily transactions. These unnamed “experts” need to consult the DOJ. The link they provide is to an opinion piece written by a guy who promotes gold mining stocks, not to an official government document or a respected financial publication like the Wall Street Journal, Investor’s Business Daily, or Forbes.
Remember Iraq does NOT have to pump its oil out of the ground to receive “present day” wealth for it. They can simply leave the oil in the ground and write promissory notes aka; ‘derivatives’ against the un-pumped asset. Like The U.S., they need only to crank up the digital fractional printing press which is irrespective of the physical ‘supply’ M0 of the IQD.
Monkey feathers! No pegged currency in the world backs their currency that way. Derivatives are contracts for business transactions, they’re not a means of providing value for currencies. Iraq backs their currency like every other oil based economy in that region backs theirs – with their foreign currency reserves.
Remember The Bush Administrations Statement About “the war will pay for itself”? It came from Paul Wolfowitz.
“There is a lot of money to pay for this that doesn’t have to be US taxpayer money and it starts with the assets of the Iraqi people. We are talking about a country that can really finance its own reconstruction and relatively soon.”
Deputy Secretary of Defense
testifying before the defense subcommittee
of the House Appropriations Committee
March 27, 2003
It’s humorous to me that they make this claim about what Bush said, and then offer a quote from Wolfowitz that says nothing of the kind. Wolfowitz didn’t say that the war would pay for itself. He was referring to the cost of reconstruction which is estimated at $60 billion, not the cost of the entire war which is closer to $1 trillion. Read through these quotes from Richard Perle, Ari Fleischer, Donald Rumsfeld, and Wolfowitz and you’ll see that all of them are referring to the former, not the latter.
The fact is Iraq is already contributing to the cost of reconstruction to the tune of about $5 billion a year, without this mythical revaluation.
http://www.foreign.senate.gov/hearings/hearing/?id=a421f9a1-5056-a032-52ae-3e2b956077c2 (start watching the video at about 1:32:00 in).
Iraq announced that they removed 70% of the money supply.
During 2008 Oil Windfall To Iraq.
The central bank’s aggressive policies spends $1 billion to $1.5 billion every month in oil revenue to buy Iraqi dinars on the open market, said Mudher M. Salih Kasim, senior adviser to the bank. This is the main lever for controlling consumer prices, said Kasim…
By STEPHEN FARRELL and RICHARD A. OPPEL Jr. Published: June 21, 2008 Page 3
Pravda ~ Is The United States Prepared?: While Iraq Buys Back Currency Off The Streets & Retires It ~ The FED Is Smothering America In Newly Printed Funny Money!
This is another common misconception/lie told to dinar investors. Conspiracy nut websites aside, the auctions don’t reduce the money supply as the financials on the CBI website clearly show a growing money supply. If they were reducing the money supply the financials would indicate that instead. The auctions are simply a mechanism to control inflation and maintain exchange rate stability inside of Iraq. Because Iraq uses US dollars as well as dinars, the CBI needs to keep a proper balance between the two. If there are too many dinars in circulation they pull some out to strenthen the value, and if there’s too many dollars they pull some of them out.
As for the 70% reduction in the money supply, that is taken from a misinterpretation of an article in 2010 that said that Iraq had reduced excess liquidity by 70%, and excess liquidity has nothing to do with the money supply. It’s the amount held by banks beyond which they are required to hold. Iraq moved that money out of the banks and into various projects to stimulate the non-oil sectors of their economy.
Jim Cramer’s Perspective On Iraq’s Dinar In 2009
Anybody who thinks Jim Cramer is a guy to take investment advice from should have their head examined. This is a guy who was saying to buy AOL right before the dotcom bubble burst in 2000. Cramer is an entertainer first and foremost. He is to investing what Liberace was to classical piano. That said, let’s remember that this video was done in 2009 before the investment world started paying attention to the dinar scam.
Yesterday The United Nation’s Security Council Made This Very Important Statement!
The United Nation’s Council would welcome in the draft resolution’s preambular part aka; [PREPARATORY STATEMENT] both Iraq and Kuwait’s efforts to advance regional stability, and “all the positive steps that have been taken by the Government of Iraq to fulfill resolution 833 of 1993″ related to the border between the two neighbouring countries.
THE MOST TANGIBLE WRITTEN STATEMENT THAT THE IMPORTANCE OF THE IQD TO BE RESTORED TO PRE 1990 INTERNATIONAL STANDING, TO DATE, HAS BEEN MADE BY THE UNITED NATION’S SECURITY COUNCIL ON JUNE 26, 2013.
The United Nation’s Security Council would recognize that the situation existing now in Iraq is “significantly different” from when the Saddam regime invaded Kuwait in August 1990, and the “importance of Iraq achieving international standing EQUAL” to that which it held prior to that date. Then The IQD Was $3.22 to $1 USD.
Most hit & run sites on the Internet claim Iraqi Dinar scams are made by boasting the exact same thing THAT The United Nation’s Security Council just stated above about how important it is to Iraq In ACHIEVING [Pre 1990 International Standing].
In their attempt to discredit the Dinars ~ they state that The IQDs are sold on misleading hype.
A) They state;
Many dinar dealers refer to the value of the Iraqi dinar prior to the 1990 Kuwaiti invasion (1 dinar = $3+ US Dollars) as evidence that the potential for the dinar is theoretically unlimited.
The United Nations Security Council Just Said The Exact Same Thing Above!!
B) They state;
They don’t mention that the pre-1990 dinar has been demonetized (worthless) and that its value was arbitrarily set by an autocratic regime led by Saddam Hussein.
This is an incoherent ad hoc statement towards Pre 1990 International Standing. The Dinar became worthless due to war , due to being attacked by The U.S. Nothing else in the financial world can change the fact that Pre 1990 IQD was $3.22 PERIOD!
C) They state;
Following the embargo, the ability for the Iraqi government to manage its currency’s value collapsed and it spent the next 10 years at 2,000 – 3, 500 dinars to the U.S. Dollar.
Again another unlink-able incoherent ad hoc statement towards Pre 1990 International Standing. The Dinar became worthless due to war , due to being attacked by The U.S. Nothing else in the financial world can change the fact that Pre 1990 IQD was $3.22 to $1 USD PERIOD!
These [ Dump Sites/ Hit & Run Sites ] are unbelievably incoherent! Especially, when they try to discredit common knowledge about Iraq’s Return to Pre-1990 Dinars as Hype! Nothing could be a truer statement by a dealer than to state ‘EQUAL’ to Pre-1990 and when supported by The United Nation’s Security Council’s statement that this is the goal when then affirmed again within the “draft resolution’s preambular part”.
Tell the Anti-Dinar Scam Propagandists to think first.
Timing and upon what for IQD release? Stay Tuned!
No link was provided, and I couldn’t find the UNSC quote above. The closeset that I could come was this statement from 2010. Nowhere in the statement is a $3.22 rate mentioned so I would assume that the pumper took some liberties with the truth in their post. Shocking, huh? The UNSC was just saying that Iraq is no longer run by a dangerous maniac hell-bent on aggression, obtaining WMD, and destabilizing the region. They are a new country and are making an effort to rejoin the civilized world, and should be welcomed as such rather than subject to ongoing sanctions. That in no way suggests a 300,000+% revaluation of their currency.
The dinar wasn’t “devalued” by war. Devaluation is done by a nation’s central bank as a monetary policy, just like revaluations are. The dinar’s value declined from depreciation due to Saddam’s reckless leadership in the 1980’s war with Iran and the 1990 invasion of Kuwait which led to Desert Storm and the subsequent sanctions. This isn’t just my opinion. This was stated by (then) CBI governor Shabibi when he spoke in Washington in 2011, and is supported by the historical account found on the CBI’s website which states that the exchange rate was 3000 dinar to the US dollar in 1995. The circumstances that led to its decline really aren’t the issue, however. Once a currency’s value has depreciated there is only one way to restore it without destroying the economy – redenomination! That’s why Shabibi and the CBI have been informing the world of their intent to replace the IQD ever since they got inflation under control in 2008.
Yes, the value of the old Saddam dinar was $3.22 some 30 years ago, but then 30 years ago the US dollar had more purchasing power as well. That was then, and this is now. The IQD has never been worth as much as 1/10 of a penny, and nothing else in the financial world can change that fact.