8-14-2012

B repeats his triangulation "risk management" strategy.  Invest in the dinar (risky and overstated potential), ISX (probably safer but still considerable risk), and Warka (essentially an insolvent institution).  Gotta love it! 

B talks about Iraq becoming the #2 oil producer in OPEC.  While that's true, it's important to remember that the #1 oil producer is Saudi Arabia and their currency is valued at about 27 cents with a total money supply of about 1 trillion riyals and a GDP about five times that of Iraq's.  And of course their country is more stable and their economy is more diversified than Iraq's.  But let's just assume for the sake of argument that Iraq and SA are equally stable and diverse.  Iraq is currently backing 70 trillion dinar in their M2 100% with their foreign currency reserves of about $60 billion.  ($60 bl / 70 tl = $.000857 which is the current official value).  Saudi's monetary base is about $270 billion.  To have an equal monetary base with a valuation of $.86 Iraq would need to reduce their M2 money supply from 70 trillion to about 314 billion, a reduction of over 99%.  And of course with Iraq's GDP being 20% of Saudi's the reduction would need to be even greater.  So maybe you can see now why some of us question the RV math of people like B.         

B talks about "these guys who say it's a scam every damn day".  I assume I'm included in that group, although I have never referred to the dinar investment as a scam.  I have called the idea that the dinar will increase in value 1000,000% a scam, but since I started blogging on the dinar I have consistently stated that the possibility exists to make a profit of 100-200%, but that you have to weigh that against the considerable risks involved.  Once I became aware of the risks and realistic potential I reduced my position by over 98%. 

B goes on to talk about these guys who backtracked and are inconsistent.  I don't know if he's including me in that group but I'm going to assume that he is.  The problem here is not inconsistency on my part.  I would say it's poor reading comprehension on B's part.  I have consistently said that progress is being made in Iraq, but that progress and economic growth don't automatically translate into an increase in the value of the dinar.  I've consistently stated the true potential and true risks.  I've consistently stated the possibility of a lop which is after all what "deleting the zeros" means.  I have also consistently stated that the dinar's value could go up, although it can't RV to 86 cents or more like B is saying.  Nothing has changed there either.  I'd put my consistency up against B's any day.  In the time I've been researching him he's gone from "it's a 100% sure thing" to "we don't know what they'll do".  He's gone from "$.86 to the euro" to "it could come out at 6 cents".  He's gone from "it's like owning a lottery ticket" to "If you're prepared to jump out of the window because you didn't make money off this investment and you're gonna throw a little fit and all that stuff, you should have never been in this investment in the first place." 

B says about his critics "it's over ... it's just over".  Puzzling why he keeps talking about us if that's the case?



http://www.youtube.com/watch?v=p1BqAdfsf8M&feature=plcp

http://dinardouchebags.blogspot.com/2012/02/breitling-catalog.html

http://dinardouchebags.blogspot.com/2011/10/breitling-busted.html