8-9-2012

B says we're trying to destroy him but his numbers keep going up.  Speaking only for myself I'm not out to destroy anybody or drive anybody's numbers down.  My focus since I began blogging on the dinar is to give people the facts.  That's why I provide links for nearly everything I say, unlike B.  As a result I've received very little hate mail, unlike B.  People understand that I'm not attacking anyone.  I'm presenting the facts and addressing the misrepresentation of the facts.  B says nobody likes me (even though he gets the hates mail instead of me).  That's not really my concern.  I didn't start blogging to win any popularity contests.  I blog to put out information.  A few people thank me from time to time and I appreciate that, but I'm going to say these things whether anybody reads or not.  The information needs to be made available.  When the dust settles and it's painfully obvious that nobody is going to get rich from owning dinar and hundreds of thousands of people were duped and lied to about what the CBI was saying, whose head will they be calling for?  Mine, or the gurus?

After about five minutes of giggling B says I'm lying and calls me "pumpkin".  I suppose that's better than any of the other names he's been calling me.  I have to say though, I'm not too comfortable with it.  Not to worry, though.  He soon returns to "shmuck" and "moron".

B says I admit that the dinar's value has gone up even though I insist that Iraq has never said that they would revalue.  Yes, they have raised the value in the past to fight inflation and they could very well raise the value in the future for a number of reasons.  That's why I still own dinar.  I'm speculating that it will go up.  Not 100,000% but hopefully enough to provide me with a good profit on my now meager position (less than 2% of what I once owned).  As I stated yesterday revaluations aren't announced ahead of time.  When the CBI says the value of the dinar is going to be raised they're referring to the new value after they redenominate (lop) from $.00086 to $.86 with new currency.  That's an increase in the value because of a redenomination but it's not a revaluation because there's no increase in purchasing power.  A revaluation would be if they increased the value of the existing currency to $.001 or so. 

Now if I'm not mistaken B has been saying for a couple of years that they will revalue to anywhere from $.86 to the euro which is now at about $1.22.  An RV of that magnitude is impossible of course.  If he's been saying instead that they're going to increase the value about 9% a year like they did from 2006-2009 then I apologize because I see that as very possible.  But I'm pretty sure that's not what he's been saying. 

B says that they don't have enough money in their foreign currency reserves to back 70 trillion dinar. Let's do the math. 70 trillion x $.00086 = $60.2 billion. Now, how much does Iraq have in their foreign currency reserves? WOW! It's a little over $60 billion!  How about that?

B says he doesn't know what I'm arguing with him about.  Let me try once again.  B says the CBI is saying they're going to revalue to around a dollar.  WRONG!  They've said that they will redenominate.  They've said that they will delete three zeros.  That would change the exchange rate from 1166 dinar per dollar to 1.16 dinar per dollar, and the value would go from $.00086 to $.86 but that increase would be reflected in the new dinar, not the dinar that investors are holding.  Nobody gets rich from a redenomination (except for dinar dealers and scammers who convince gullible investors that a currency can go up in value 100,000%).  They just exchange currency valued at $.00086 for currency valued at $.86.   1000 of the old for 1 of the new.  That's what Turkey, Russia, Romania, Zimbabwe, Brazil, and dozens of other countries have done.  Countries don't issue new currency for a revaluation because revaluations are typically adjustments of 2-5%, not 100,000% or more like B and other gurus are expecting. Every reference from the CBI about raising the value is in the context of redenomination.  Even if somebody uses the word "revalue" by mistake you can still see from the context that they're describing a lop. 

The reason I'm still holding (very little) dinar, along with a few others who understand that "delete the zeros" means "lop", is that we have our doubts about whether Iraq will actually follow through with what the CBI is saying they will do.  If they don't lop there's a good chance the value will increase in the next few years like it did from 2006-2009.  Nobody would get rich off of a slow growth policy but it would likely be a lot better than you could get in the stock market or a money market account, although admittedly the risk is considerably greater.  But let me say once again for B and all of his listeners - the CBI will never raise the value 1000 times from $.00086 to $.86 without a lop, nor have they been saying that they will.  If B says they have he's either confused or lying.  Again, every reference to an increase in the value was in the context of a redenomination.  They might bump the value up a few % from time to time and obviously I'm hoping they will, but they will not announce it just like they didn't announce it ahead of time when they increased it back in January or the numerous times they raised it from 2006-2009.  You don't announce revaluations.  You announce redenominations.  And that, B, is what we're arguing about.

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

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

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