Dave Schmidt’s Gold Heist

dave-schmidtIt was recently brought to my attention that Dave Schmidt, the former Washington state senator turned dinar guru, has a photo of a gold vault on his website where he says:
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“… we are moving into the new “Golden Age” where the world’s gold will be released for a shift and change to our planet and our world.  Dave has countless photos of this gold that is beyond most people’s comprehension.  This gold has been kept hidden from the public for thousands of years and is kept in custody by “keepers” at various locations around the world.”
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The photo accompanying the text is presumably one of those hidden gold locations that he mentioned, but it turns out that it’s actually a vault in the UK that was used as a dining hall during WWII. Seems Davie heisted the photo from a UK news site.  (Thanks to RamblerNash at Dinar Daily for pointing this out to me.)  The first photo below is a screenshot from Dave’s site, and the second photo is from a UK news article about the London vault.

Dave Schmidt gold

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Can you say “busted”?  Now, Dave might claim that he never stated that this photo was from the secret stash, but I think the implication is obvious.  Anybody reading his site and seeing that photo is going to assume that this is supposed to be a photo of one of those secret vaults.  But I’ll tell ya what Dave … shows us the real photos along with some evidence that this gold exists and I’ll drop the matter.  Introduce us to this nameless, faceless “ambassador” you’ve been talking to about the Dragon Family’s gold, along with some evidence that the Dragon Family actually exists and I’ll remove this post.  For that matter, make one prediction about something … ANYTHING … that proves that you actually have any information worth listening to and I’ll humbly apologize for all of the “nasty” things I’ve said about you.  In the meantime, you remain on my Schmidt list.

See this page for gold photos

 

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Who Do You Trust?

On Tuesday May 17 a caller asked Trusts Unlimited conference call host Jim George a few questions about hard currency scams like the dinar, dong, rupiah, and zim.  His responses were very telling.

First, Jim claims that his company contracted currency exchanges with a consortium in Kuwait.  He offered no explanation as to how that would have taken place or evidence that it occurred at all.  When pressed on the issue he claimed to have bought Kuwaiti dinars for 10-15 cents (again, no explanation was provided as to how he did that) and later exchanged them for the official value of about $3.40.  If everything else he said on the call sounded legit that might make this story a bit more believable.  Unfortunately it didn’t.

Jim George

Jim George

When asked about the demonetized and completely worthless Zimbabwe dollar he claimed that it would be a great payout if the zim was reintroduced into circulation in Zimbabwe.  The caller asked him if any demonetized currency in history had ever been restored and he admitted that he didn’t know of one, and that’s why he only holds a small position.  It gets worse from there.
When asked about the dong he suggested that China wants the dong revaluation to take place.  Again, no evidence of that.  This is one of those guru “forum facts” that is offered frequently on these calls with absolutely zero substantiation from any legitimate news or business publication.  The fact is Vietnam’s policy for the dong for several years has been a gradual devaluation to strengthen their position in exporting (see chart here), and that has worked quite well for them.  Their GDP has tripled over the past 10-12 years.
Next, Jim states that he also owns rupiah, the currency of Indonesia.  Currently the rupiah’s value is about $.000075, less that 1/10 of the dinar’s value.  Jim’s rationale for owning it is that Indonesia is in “that same general area”.  Huh?  That’s your criteria, that’s it’s near Vietnam?  Why not own the currencies of Thailand, Singapore, or Malaysia?  I think I know why.  There aren’t enough zeros on those currencies.

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.

After that, the caller asks Jim about the dinar being a scam.  Jim’s response is that he feels that the sovereign nation-state of Iraq is going to survive, and in order for them to survive they need to have a viable currency.  He doesn’t define “viable” for us, but the implication is obvious.  The fact is, many countries are doing quite well with a currency that holds a low value compared to the US dollar.  I already mentioned Vietnam, but I could also mention South Korea (15th largest economy in the world) whose currency is valued about the same as Iraq’s.  China is the world’s second largest economy and their currency is worth about 15 cents.  Japan is the world’s third largest economy and the yen is worth about a penny.  Any suggestion that Iraq’s economy is being held back by their currency’s value is hogwash and unsupported by any real facts.  Iraq’s economy is being held back by Iraq.  Sectarian division, a history of war and tyranny, a terrorist organization occupying roughly a third of their country, a poor infrastructure, an economy based 90% on oil revenues with little diversity, and widespread political corruption are much more to blame than the value of the currency.
When the caller then asks Jim how the situation in Iraq is similar to what happened in Kuwait, stating that the Kuwaiti situation occurred in a total of about six months (and Iraq was liberated over twelve years ago), Jim states that from the time the Iraqis invaded Kuwait until they were kicked out was about 18 months.  According to Wikipedia the caller was much closer on this one.  It lasted from 2 August 1990 – 28 February 1991, or 6 months, 3 weeks and 5 days.  In Jim’s response he claims that the two situations were similar in that both countries were invaded.  (Kuwait was invaded by Iraq over a border dispute and the invading forces were removed six months later.  Iraq was invaded by a coalition based on Saddam Hussein’s unwillingness to honor his agreement to submit to inspections, and coalition forces remained for eight years and are still there today as advisors.)  How that is relevant I have no idea.  He then says that the IMF de-pegged Iraq’s currency and then devalued it.  Actually, the dinar’s value declined in the 1980s to the point that the zeros were added.  Shabibi himself stated this when he was in Washington in 2011 (start at 5 minutes in).  All you have to do is go to the CBI website and go to the history page and you’ll see that the dinar was valued at 3000 to the dollar as far back as 1995, eight years before Saddam was overthrown.  The IMF had nothing to do with devaluing the dinar.
Jim then claims that the US holds 4 trillion dinar (again, no evidence).  The caller then informs Jim that court documents show that the US isn’t holding dinar (not for investment purposes anyway … that was in point 15 page 5 in the DOJ document regarding the dinar fraud case against the BH Group back in 2013).  Jim recounts the story of a secret agreement from the Bush era.  (Bush has been gone for over seven years, guy.  And this agreement was supposedly from 2003!  Come on!!!)
Jim then states that the petrodollar is disappearing, and Iraq is the one place where you still have to buy oil in US dollars.  In fact, very few nations have attempted to venture away from the petrodollar system.  Iraq is the rule, not the exception to the rule.
The misinformation and/or disinformation provided in this call (Jim also talked about prosperity packages and claimed that we’re moving toward asset backed currencies) should be sufficient to stop any prospective client dead in their tracks, but this is hardly the only trust procurement company spreading such manure.  They all do it.  A few weeks ago I wrote about Adam Montana and Frank Buck doing this back in 2010, and it’s been going on ever since.  Maybe it’s time we turned our attention away from the revaluation scammers and instead focused on the “buy our stuff before the RV” guys.  Yeah, I think we probably should.
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Trust Issues

I must admit I have trust issues. At times it can be a real problem, especially when dealing with an investment like the Iraqi dinar. I am not the only one who has these issues. It seems that many in the community has the very same trust issues that I have.

I have a pretty good wall of defense. I weigh everything people say and place it against my world view to see if it will hold up. My world view is based on the education I received and my personal research. At this stage in my life there is a pretty strong defense mechanism in place, but it is not without its vulnerabilities.

When someone comes to me and says that they are a Christian that slightly lowers my defenses, and I trust them more than I should. If they quote scripture I lower my defenses even more. If they pray then I trust them more. If they do all three things then I have a really big tendency to completely trust them, and my defense mechanism is totally shut down. And that my friend is my issue!

There is a common bond between Christians that people who are not of faith can’t understand. Sometimes that bond serves to remove all our defenses and the so-called Christian person gains complete trust. I think this is one reason that the bible makes a comparison of Christians to sheep. As believers in Christ we tend to totally trust other Christians without verifying anything they say.

This can have tragic results. I have learned the hard way that you don’t automatically trust someone just because they have a fish on their business card. In fact those people should be held to an even higher standard, but I can’t help it. I always find myself giving Christians the benefit of the doubt. I tend to equate my trust in God with my trust in fellow Christians such as myself. It is more of a reflex than anything else. We as Christians do this on a subconscious level and we rise to defend other Christians as a result. If you are not a Christian than you cannot even begin to understand this type of behavior. It is as though you are defending a close family member like a brother or a sister.

But the bible warns us of explicit trust in other people that we don’t even know. Mathew chapter 7 says

15“Beware of false prophets who come disguised as harmless sheep but are really vicious wolves. 16You can identify them by their fruit, that is, by the way they act. Can you pick grapes from thornbushes, or figs from thistles? 17A good tree produces good fruit, and a bad tree produces bad fruit. 18A good tree can’t produce bad fruit, and a bad tree can’t produce good fruit. 19So every tree that does not produce good fruit is chopped down and thrown into the fire. 20Yes, just as you can identify a tree by its fruit, so you can identify people by their actions. NIV version

So you see we are supposed to judge people by what they do not what they say. There are people who pretend to be Christians in an effort to gain the trust of other Christians. They may be a wolf wearing a disguise that is designed to get you to lower your defenses. Then they can move in for the kill. We are to observe their actions. We will know who they are by what they do, not what they say. A wolf does not walk like a sheep even though he may be disguised as one.

As I have been a part of the dinar community for the past 4 years I have observed many gurus who claim to be Christians. These guys quote scripture and pray but in the end they are not being truthful about their background or who they are. They pretend in order to get you to accept their latest line of Bull! They make money off of conning Christians into buying dinar. They keep these Christians on the hook as long as they can. they quote scripture, pray, and may even bring up bible prophecy from time to time. They are full of deceit and lies. There is no truth in them.

Matt 9:36 When he saw the crowds, he had compassion on them because they were confused and helpless, like sheep without a shepherd. NIV

That is exactly what the dinar community is! All these wolves (GURUS) who are hungry and all these sheep who are dinner. But we wind up defending certain wolves because they look like a sheep! But watch them. They don’t act like sheep! If it does not walk like a sheep than Brother Chances are that is not a sheep!

Matt 10:16 Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves. KJV

To be wise means to have understanding of people and situations, To have keen and unusual discernment, and a capacity for sound judgment in dealing with people and situations. Harmless may mean to be harmless in effect or intention. Inoffensive means to be giving no provocation. Doves are not called the birds of peace for no reason. Don’t get these instructions backward! You want to get this in the right order. Use discernment of the situation first. Then operate in grace and forgiveness. Pray for those wolves in the dinar forums dressed up like sheep. A dove is not necessarily the sharpest knife in the drawer if you know what I mean.

Use discernment, warn other sheep, but do no harm!

James 3:1 Not many of you should become teachers, my fellow believers, because you know that we who teach will be judged more strictly.

I wish I had thought of this scripture before I started this stupid dinar blog! To be honest that is why I brought Iraq Currency Watch Back after it was shut down. It was out of the fear of what I had done in ignorance and the judgment that awaited me for those actions. The wrong things I believed and taught about the dinar would be my undoing. That is why I will fight to get the truth out there. That is why I brought this blog back.

If a wolf is teaching something that he knows is not true than God will judge him more harshly than a wolf operating in ignorance. If someone believes the dinar will revalue and they teach others they will be held to a higher standard. This is why you are to be harmless as a dove. These people are already in enough trouble! Yes they need to be exposed. But they need to repent even more than that!

So if you see someone who claims to be a Christian and they say things that are false. If it is pretty obvious that they made these things up, then chances are this person is a wolf in sheep’s clothing looking to make a meal of you. Remember to use discernment regarding situations and with people you meet, Use discernment when you read articles from Christians in the dinar community. but most of all remember this one important thing. Trust is never freely given. It is earned!

My new motto is verify before you take action. Do this regardless of any feelings to willfully trust anyone.

This is it for me

There is a difference in lying and being misinformed. When someone says something that is not true it can fall into one of those two categories. In the past there have been many rumors that are passed on in the dinar communities which are simply not true. For the most part they gain momentum and before long they are accepted as fact. This misinformation comes from a lack of understanding about how money really works.

That being said I will say for the first 2 years of this investment I was grossly misinformed. I believed in this investment because of the misinformation and my opinion of how money works. My misinformation has been copied and pasted into other forums because it promoted hope. Now that I have learned the truth I have an obligation to set the record straight. Back when I believed in this investment I was getting thousands of hits on this blog. This is something I never expected. Now that my view has changed and the hope of making money is gone the hits are single and double digits. Not much traffic to really speak of these days.

Even so there were reasons to keep this blog going. The first one is to set the record straight, the second one is because of the readers who purchased dinar because of my views, and the third is because my old posts are copied and pasted everywhere. I wanted to cover all the reasons why I first purchased the dinar. All of these reasons were based on misinformation. I did not research as much as I should have before I purchased the dinar. The subject of money was so vast that it took me 2 years to get a basic understanding of how economics work. This blog is vast and there is a lot of reading involved. So in this post I will present my evidence that support my conclusions using all the links and articles on my sites. This will be a condensed version. So let’s look at all the misinformation. This article is more or less a summary of this entire blog.

1. The first article The Truth About The Dinar covers how I got involved with this whole thing and how this blog started.

2. The Truth About The Dinar part 2 . In this article I expose the truth that the lower denominations were not printed as of yet in July of 2011. Since I was involved I have always heard that they have the lower denominations. I also expose the fact that there was never a Kuwaiti revalue. There was a Kuwaiti redenomination, but never a revalue. My source for this was the vast assortment of news articles from 1991 regarding Kuwait and the invasion. The other source for this is the central bank of Kuwait itself. Their website will expose this rumor for what it is.

3. Where Do We Go From Here covers how the dinar gets here in the U.S. It covers the SOFA (status of Forces Agreement) with Iraq and shows how soldiers were not allowed to bring back dinar with them. It covers the way this currency flows. This is only one stream of flow but I believe it to be one of the major ones.

4. Where Do We Go From Here part 2 covers the redenomination process and a few other opinions from people regarding why the dinar is a scam. It covers the history of the rise of this global economic machine.

5. The Conclusion To The Matter covers other links from other people who feel as I do. I really don’t know any of these guys but they do make some valid arguments. We also cover why the dinar will not be an internationally traded currency

6. The Conclusion To The Matter part 2 is a rebuttal to an article I wrote called “The Iraqi Dinar Will Revalue Here’s Why” Basically I am arguing with myself and my conclusions were all wrong back when I wrote that piece and this is an attempt to correct it. This is the number one article that can be found in most forums.

7. The Dinar Will Not Be A Reserve Currency. This gives an overview of money and the laws that have backed it throughout the years. It talks about why the dinar cannot be a reserve.

8. How The Dinar Works. This article covers the fact the Iraqi dinar is not used to sell oil and it will not be used to sell oil. It goes on to outline the petro-dollar system. It also talks about how the dinar is not being used to rebuild Iraq. Revenue from oil being sold in U.S. dollars is being used to rebuild Iraq. I have another article on another blog that talks about Iraq’s history regarding oil and recaps everything that happened in Iraq since the 70’s. This article is called The Role That Oil Plays For Iraq and the Petro Dollar System. This article goes into much more detail about this.

9. Lies Deceit and Denial covers and exposes the truth about executive order 13303. This order does not protect dinar investors like we were led to believe. It also exposes the fact that the Government does not have trillions of dinar stockpiled for a revalue. It also covers a court case between the government and the BH Group. The government is prosecuting the BH group based on their statement in the indictment which claims there will be no RV and Iraq plans on redenominating their currency. A link to the indictment is available.

They have their first conviction look here. Read more about the charges here

So all the reasons that I purchased dinar in the first place are covered in all these posts. Every article has qualified links that present the truth. Truth is different from opinion. Truth is based upon facts. You are entitled to your own opinion, but you are not entitled to your own facts. You can believe anything you want and have various views on anything based on any facts you find. The dinar will not revalue that is a truthful fact not an opinion. The indictment against the BH group declares this.

Now I made my case. At this point do what you feel is right for you regarding this investment. The links in these articles will help you to do your own research. Don’t take my word for anything. Look at the links that led me to this conclusion. It is my plan that this will be my last post regarding this investment. My plans now are to move on to other things. I do not have plans to follow or track this investment any longer. My plan now is to move on and watch this whole thing fade into obscurity taking with me all the hard lessons I have learned from this investment. Yes there is a difference between misinformation and lying. It has been my objective to deal with all the misinformation that trapped me in this investment in the first place.

Eventually I will end this dinar chapter of my life I may even take this blog down once Iraq goes into a redenomination process. I would like for this to be my last post. Let me apologize now to the 5 people who read this blog. It use to be thousands, but I think people are tired of reading about this. That is fine because It has been time for me to disconnect for a while. Now it is on to other things.