What if it was possible for you to retire today, with millions of dollars in your pocket? What if I told you there was no work involved? What if I told you that all you have to do is buy some foreign currency and wait for it to go up in value? Would you do it? Would you first do a tremendous amount of research to make sure it was a legit opportunity? Unfortunately, many people are jumping at the chance to make money but are not taking the time to research.
By: Nick Giammarino
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IQD Scam or A Great Way To Become Wealthy?
This attitude has led many to invest their hard-earned money into the Iraqi dinar. Story after story, featuring people from around the world, show how easy it has been for sellers of dinar to hook people in with promises of great riches. People like Phil Lloyd of England, who simply stumbled upon the Iraqi dinar while doing a Google search for something else.[1] It sounds easy. Simply buy some Iraqi dinar, wait for it to revalue, and then ride off into the sunset with millions of dollars. So, is it a good investment? Are there about to be a lot of millionaires due to the Iraqi dinar? The answer can be found in looking at Iraq and its current situation, and doing some simple research into currency valuation.
Iraq has been a part of the world’s conversation, especially as it relates to the invasion and aftermath, for many years. It would be hard to meet someone who was not familiar with events that have taken place in Iraq over the past 10 years. The American news has slowed down its’ coverage of Iraq in the past 2 years but the country is still facing significant challenges. The stability of the nation has been and is continuing to be challenged by numerous factors.
In the 10 years since Saddam Hussein was removed from power, problems are still very evident throughout Iraq.
While the government has survived and new officials have been elected, not many people would call Iraq stable. Sectarian violence is common, with continued bombings in the capital city of Baghdad, as well as other cities. In addition to this, the Islamic State is creating havoc and causing problems many on the world stage are just now beginning to recognize. And, these new challenges are severe enough that military involvement has continued in an attempt to stop the violence. On top of these problems, Iraq faces financial issues that are not even close to being solved. Iraq has massive debt and a tremendous amount of currency in circulation. If the Iraqi dinar is revalued as those selling it claim, Iraq would have more cash in circulation than the United States.[2]
For those looking at purchasing dinar, these issues and problems should be at the forefront of any research on the subject, as a nation’s stability is important in currency valuation. Of course, anyone selling Iraqi dinar is going to paint a rosy picture and attempt to make these problems seem insignificant and easily fixable. But, even the news stories and media coverage do not paint the full picture of what is taking place in the country. Even before the overthrow of Saddam Hussein, the value of the Iraqi dinar was not accurately portrayed. The Hussein regime had set the dinar-dollar rate at 3-1, but it had never been tested on the open market.[3] There is no indication, now that it is on the open market, that it will ever return to that level.
The Iraq War and the current rebuilding effort has allowed those encouraging investment in the Iraqi dinar to point to an Iraqi neighbor as evidence of what is to come. Sellers of the Iraqi Dinar often point to the rise in value of the Kuwaiti dinar after the 1991 Gulf War as an example of what is going to happen to the Iraqi dinar.[4] As anyone can see anytime they turn on the news, Kuwait and Iraq have very little in common besides where they are located. Kuwait is a stable country with a high-functioning government, little circulating currency and a robust economy.[5] Kuwait’s dinar recovered quickly because the Kuwaiti economy recovered quickly.[6] Remember, the Iraqi invasion overthrew a dictator that had been in place for years and replaced it with a representative government. This transition will take time and adds another layer to the differences between Iraq and Kuwait.
Even with the reality that Kuwait recovered fast from the Iraqi invasion in 1991, the recovery did not produce instant millionaires as those pushing the Iraqi dinar promise. In fact, the process of recovery for the Kuwaiti dinar is something those invested in the Iraqi dinar should play close attention. Following the first Gulf War, old Kuwaiti dinars could be exchanged for new ones on a one-to-one rate for a couple of months, then the old dinars become invalid.[7] Did you catch that? The currency was not revalued, it was simply removed from circulation in favor of a new currency. The new official exchange rate was 3.47 American dollars for one new Kuwaiti dinar.[8] So, if the same thing were to happen now in Iraq, which is highly unlikely given the differences discussed above, millionaires would not be crawling out of the woodwork. This is a strong point that should be discussed anytime someone suggests the Iraqi dinar investment is not a scam.
This reality, along with the constant stream of bad news out of Iraq, has not stopped the rumors however. They are rampant on the internet, including many falsehoods that are misleading to the average consumer. For example, many of these ‘dealers’ contend that Executive Order 13303, issued by President George W. Bush, related to the buying and selling of Iraqi dinar and its value. This gives their scam an official tone and allows them to mention an official government document.
Unfortunately this is either an inaccurate reading of the executive order or an outright lie. The truth of what Executive Order 13303 says can be seen by taking a quick glance at the actual text of the executive order. Executive Order 13303 has absolutely nothing to do with the Iraqi dinar or its value; it was a directive to help support and protect the Development Fund of Iraq as the country worked through the rebuilding process.[9] The executive order provided legal protection and the backing of the United States to make sure the Development Fund was able to continue the work during rebuilding.[10] Within this context, oil companies and other entities involved in the reconstruction would be backed by the United States government in the event of legal action during their time in Iraq.[11]
It is truly sad to see so many people getting taken advantage of because it is not hard to find any of this information, nor is it hard to prove wrong many of the claims found on websites selling Iraqi dinar. ‘Get rich quick’ schemes are nothing new, and the draw is understandable. Who wouldn’t want to be rich beyond their wildest dreams? Unfortunately, this is exactly what the scammers prey on and exploit. They continue to say the revaluation is right around the corner, just hang on for another day, another week, another year.[12] Every news story out of Iraq, every action by the government, is spun to look like things are turning in the direction of revaluation.[13]
Revaluation is not right around the corner. Since the Iraqi dinar people are so keen on using Kuwait as an example, perhaps they should spend a little more time reading what actually happened there, as we have mentioned above. To understand how ludicrous the claims are think about this…if the Iraqi dinar revalued to become equal value with the dollar that would be an increase in value of over 100,000%.[14] This promised revaluation has been promised for over 10 years, and we are still waiting. And unfortunately for those invested, the lies keep coming and the days keep passing by without any movement. Every conference call, every email blast tells the same story.
None of the facts we have discussed are ever mentioned and with all the excitement from those knee-deep in the scam, a few other things are forgotten as well. Consumers are not told that Iraqi dinars can only be redeemed in Iraq, as most established currency exchange houses and banking institutions cannot convert the Iraqi dinar to U.S. dollars.[15] If you do not believe me simply call your bank and ask them if they exchange Iraqi dinar. So, if you want to make any money from your dinar, you can sell your dinar back to one of the dealers for a fraction of the price you paid, or you can fly to Iraq and exchange them for dollars. It is really a no win situation for those who have purchased large numbers of Iraqi dinar.
How do these people get away with selling something that is so obviously a scam? For one, they do not have to be licensed by the Treasury Department because the dinar is marked as a collectible.[16] This keeps them from the prying eyes of the federal government and allows them to charge pretty much whatever they want. If the Iraqi dinar was ever tradable on the currency exchange markets, this would change and the Treasury Department would begin to monitor and regulate the transactions. Something tells me these sellers know that and understand that they are safe from that regulation for a little while longer.
One has to wonder if those committing the scam, those people actually selling the dinar to customers, truly believe what they are saying. Bradford Huebner, who has been convicted of fraud and money laundering, claimed that one day the dinar would be revalued and make his clients money.[17] Was he just continuing the game or did he really believe the Iraqi dinar would revalue? Of course it is hard to say since we don’t know what someone is really thinking but it does pose a valid question. Perhaps the reason these sellers of Iraqi dinar keep the scam going is because they really believe it themselves. Perhaps they are simply riding the wave as long as they can before it comes crashing on their heads. Either way, thousands of people are being ripped off and losing lots and lots of money. The key in all of this is to pay attention, do your research, and stick with reputable financial companies when pursuing investment opportunities. Keep checking out DinarRVnews.net for updates on my investigations.
[1]Betting Millions on Iraqi Money http://abcnews.go.com/US/story?id=2448772&page=1&singlePage=true
[2]Ugly Truth about the Iraqi Dinar – http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[3]Betting Millions on Iraqi Money http://abcnews.go.com/US/story?id=2448772&page=1&singlePage=true
[4]Betting Millions on Iraqi Money http://abcnews.go.com/US/story?id=2448772&page=1&singlePage=true
[5]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[6]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[7]http://www.nytimes.com/1991/03/25/world/after-the-war-no-electricity-but-kuwait-reopens-its-banks.html
[8]http://www.nytimes.com/1991/03/25/world/after-the-war-no-electricity-but-kuwait-reopens-its-banks.html
[9]http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/print/20030522-15.html
[10]http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/print/20030522-15.html
[11]http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/print/20030522-15.html
[12]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[13]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[14]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[15]http://www.dfi.wa.gov/consumer/alerts/iraqi-dinar-scams#.VLi7uUfF9s4
[16]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
[17]http://skeptoid.com/blog/2014/02/10/the-ugly-truth-about-the-iraqi-dinar/
wdrb.com – Iraqi Dinar Scam article TNT Tony Dinar Guru