DrDinar Blog

Germany lopped zeros from their banknotes after world war II in what was a devaluation of their currency after loosing the war. We will refer to this as a ‘bad’ lop.

Vietnam revalued their currency decades after the Vietnam War, will Iraq take decades? I don’t know, do you? I’m guessing they won’t only because of the nature of Iraqi trade; Oil.

What is a good lop?

Well, let is be clear that a devaluation is not a function of a revaluation. Having one cancels out the other.

The Iraqi Government for years has ‘quietly’ talked about the possibility of putting their currency on the world market, a revaluation.

I recall hearing a top official of the Iraqi Government say that ‘timing is crucial’ for the revaluation and if it were done too soon it would be bad for one reason or another. Iraq wants to revaluate at the proper time so that they can potentially double within a day or two AFTER the revaluation similar to Kuwait.

Sorry I got sidetracked there, what is a good lop? Right now the Iraqi currency has banknotes like the 25,000 note, a 10,000 note, 5000, 1000, 500, 250, and 50. The first 3, the largest notes, have many zeros. If an Iraqi buys a pair of shoes with only 500’s they would need to have a wad of cash big enough to choke a goat. That is one reason for a good zero lop. But what happens to your 25,000 notes with a ‘good’ lop?….

What happens when a stock on wall street ‘lops zeros’ so to speak. I once bought AIG stock just after the september 2008 stock market crash. Well, AIG lopped a zero or two off the stock value but my stock got ‘pro rated’ and I didn’t actually loose anything at all except for the old perceived value of owning hundreds of shares, I now owned about 20 shares, but, they had the same value in total, as before.

Now why would Iraq want to have a good lop? Well, I’m only speculating here but maybe Iraq would like their non ‘inflated looking’ banknotes back. If, and this is only in theory, if, the dinar was lopped of 3 decimal places, 3 zeros on the 25,000 note then it will be a 25 note. Almost the same value as the US dollar as of today, before a revaluation. According to my good lop theory your old notes will be worth the same thing as the new notes, for at least some amount of ‘trade in’ time; Or there may be no trade in time. With the old Saddam notes, there was a trade in time before they became of no value in Central Bank of Iraq.

As always, only invest what you can afford to loose. That said, enjoy your investing experience.

I have always been against the ‘bad lop’ and I still am. There is so much stuff on the Internet about an evil bad lop, and every time I see someone it always seems to be written by someone who has never written about the dinar before. Some freelance writer, a critic.

You may need to cash in for the new notes to avoid a loss, worst case scenario. That, is my opinion. And I have never called myself a financial adviser. I have, called myself of a critic of a dinar critics, a reporter, and I am a dinar investor. But I only invest what I can afford to loose and have said this for years. If you are looking for ways to lower the risk of accessing the opportunity than that is where my expertise comes in.

For example, doing a wire transfer without getting ripped off during the wire procedure itself. Who you are wiring too, that is a whole other story. If you are aware of the risk of Dinar and accept that, then, I can recommend the dealers who have the best reputations, that, I can do for you. Reducing the risk of access procedures. If you want to sell your dinar now, I can help you with that too. Anyone want to sell? I will buy it ; ) Please sell your dinar if you feel you have invested more than you can afford to loose. I’m no cheerleader, wrong site.

Ali from DinarTrade.com will buy your dinar now if you want to sell. And, he’s the only dealer I recommend now because I like his business ethics. Sell your dinar now and you will most likely get what you paid, or a little less depending on when you bought.

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Written by Darren Chabluk for http://DrDinar.com
This article may be reprinted online or offline as
long as the link remains hyper-linked online.
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This one is pretty self explanatory, Pepsi Cola is a big hit in Iraq probably because it is a big hit everywhere else and they are in fact bottling in Iraq.

Go to my 2011 list of DrDinar stock picks and you will see Baghdad Soft Drinks Company about half way down page 3 of the report.

DrDinar’s Iraq Stock Picks 2011 PDF

You may very well know about this investment opportunity already as this company is not new, but, it is worth sharing the information again.

Darren Chabluk

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Should the U.S. Intervene in Iraq?

The protests in Iraq have been growing. Iraqi citizens are demanding more from their government – more jobs and better public services. Although the protests have not become more violent, there are some concerns about the stability of Iraq. The question that will have to be addressed is, what role does the United States have in Iraq now?

The U.S. has invested heavily in Iraq both financially and militarily. It is in their best interest for Iraq to become a stable country. However, it is also in America’s best interest for Iraq to become an independent country. President Obama has stuck to his time line in removing all troops by the end of the year – there are about 50,000 non combat American troops in Iraq right now. If these protests continue to increase in fervor and become violent, should the United States step in?

If the U.S. does step in to stop protests, it would undermine and discredit Iraqi citizens’ demands. In addition, it would also suggest that Iraq is not ready to be an independent country. The U.S. could also be viewed as stepping over their bounds, further hampering any progress it has made in building a positive relationship with the Iraqi people. This is the last thing that the U.S. needs. For the sake of a healthier long term relationship with Iraq, the U.S. should not be actively involved in the current situation in Iraq.

This is an opportunity for Iraq to show that it can be independent and a way for the U.S. to show trust. While this situation is a cause for concern, the short term benefit of forced order does not outweigh the potential of a long term solution that benefits Iraq as a whole, America and the Iraqi dinar. The potential is for Iraq to improve upon its political process and its services for its citizens. By in turn, this will restore confidence in Iraqi politics, which would be a huge accomplishment. Iraqi citizens will also see the power of democracy through their ability to demand more out of their government through peaceful protests. For too long, Iraqi citizens have been neglected by their own government. They are being heard now and it appears that the government is listening. For the sake of Iraq’s future, the government better be listening.

On the side of the Iraqi dinar, a hands off approach by the U.S. could potentially lead to a positive rebound in the value of the dinar. Iraq handling this situation on its own would be a coming of age event. This is what the dinar needs. While Iraq still needs more stability in the region, it must go through these difficult times to prove its resilience. The strength and stability of Iraq is directly tied to the strength and stability of the dinar. The more advances Iraq makes on its own, the better position the dinar will be to be a strong currency. For the sake of Iraq and the dinar, the U.S. should allow Iraq to resolve these protests on its own – barring any extreme circumstances.

Guest post by Daniel Carlson, a dinar specialist at Dinar Profits

Oil Rich Iraqi Dinar 2011

Some say opportunity knocks only once, other say it knocks all the time. But whatever suits you best, you have got to be ready when it comes. Many people became rich not because of mere chance but because of what they did when the chance came at their very footsteps. While the aftermath of any war is undoubtedly woeful, it could also be a source of wealth for many. In particular, it could create an amazing money-making opportunity.

A lot of our older generation folks missed out on becoming millionaires when they did not purchase Deutsche Marks when World War II caused the currency to plunge in value. Many people missed the opportunity to become millionaires when they did not purchase the Russian Ruble following the Cold War. And in the 90s a lot of people missed out the chance to become millionaires when they did not purchase Dinar in Kuwait at the time of Operation Desert Storm when it hit rock bottom.

Thank heavens, another opportunity to get rich is within our midst now. Yes you got it right; there is actually a great chance that you could become a millionaire in a nick of time by buying currencies at its low rate and waiting for it to revaluate.

It is widely assumed that the very same history of the Deutche Mark, Russian Ruble, and Kuwaiti Dinar will repeat itself in the mold of the Iraqi Dinar. Under Presidential Order 13303, US Citizens are now allowed to invest in the New Iraqi Dinar – extending the same rights to investment as that of an Iraqi citizen. Other investment alternatives such as Stocks, Currency, Bonds, Business and Real Estate in Iraq are also made possible under this order.

While a lot of people have pessimistic views on the future of Iraq, there are many things that you might want to know about the country and its potential for a phenomenal economic turn-around. In the following paragraphs, I will explain why investing in the new Iraqi Dinar proves to be an opportunity that you wouldn’t want to miss, not in your whole lifetime.

Iraq is a tremendously wealthy nation considering its vast oil resources and potential Gross Domestic Product. It is argued that Iraq has the second largest oil natural gas reserves in the world, second only to Saudi Arabia. Its oil is among the world’s undemanding oil to drill and refine making cost production relatively low compared to other oil producers. This implies that the profit margins on their oil production are among the highest in the world.

Despite the damage suffered from a ruthless regime of Saddam Hussein and troubled history of conflicts and violence, Iraq is on the threshold to full recovery and economic stability. The involvement of the United States and other allies is a strong indication that Iraq will not be left to decay into a state of instability. No Western or Middle Eastern nation is going to watch on the sideline while Iraqi’s vast oil deposits and riches succumb lamentably under the control of a rouge country or mutiny.

Because Iraq is a strategic country in the Middle East with incredible potential wealth, it is in the best interest of goodwill nations, as well as in the best interest of the entire world for Iraq to be successful economically and politically. Wise leaders of our world understand that stability and enhanced productivity can curb the occurrence of insurgencies. And to achieve that, the quality of life of Iraqis must be ensured.

Iraqi people are a proud race and would want nothing less than to return to being a major player in the Middle East. And with the current positive developments, everything seems to be pointing towards a healthier, more vibrant economy. It is still too early to draw conclusions about Iraq’s rise to economic freedom. However, many experts would tell you that within the next few months, maybe a year or two, the change would be inevitable.

The history of the oil-rich Iraqi displays strong potential for growth. At one time, the Iraq’s currency was worth over 3000 times what it is currently worth today ($3.2 = 1 Iraqi Dinar). If the Iraq money were to reach a value equivalent to its historical rate of $3.20 US dollars per Iraqi Dinar, the value of an approximate $1000 US dollar of Iraq currencyinvestment for 1 million Iraq money would be worth $3,200,000 US Dollars. Let’s just say the value of the Iraq currency will increase only to that of the lowest valued currency in the mainstream Middle East (or $0.26 = 1 Iraqi Dinar), that would still mean that your $1,000 would be worth $260,000. Either way, it is a big win-win situation for investors like you!

To support this theory, the currency has steadily increased in value since the 2003 invasion. This is an indication that Iraq is well on its way to a recovering economy as well as an increase in exchange its rich natural resources.

Another compelling reason surrounding the value increase of this currency is the current spending of the United States Government in the rebuilding efforts of Iraq. It seems to suggest that the US is expecting a substantial boon in the near future that will cover government spending and debts.

It is quite safe to speculate that the risk for the Iraq money to decrease in value is very minimal. As a matter of fact, history and logic would tell us that it will be the other way around. Investing would be worth investigating.

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Written by Reo Torregosa for http://DrDinar.com/blog
This article may be resprinted online or offline as long
as this box remains and hyperlinked online.
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The risk of the Dinar investment is not nearly what it was 6 years ago. There is not need to worry about Iraq becoming independent with in State security to secure the country and gain strength from the spirit of independence.

U.S. Troops Will Leave Iraq in 2011

5 Big Dinar Tips For 2011

If you are like me you are in for the long haul for the Iraqi Dinar investment. Do you find yourself in a constant position of not being where you want to be with your dinar? Maybe you don’t have enouph of the NID banknotes, or possibly you feel you have too much, or just tired of waiting. Well, here are some big tips to help you to enjoy the process of waiting while working towards your goals.

1. Diversify Your Investment

Assuming that Iraqi dinar makes up a total of about 5% to 20% of your total investments, where am I getting these numbers from? 10% of your total investments may be aggressive investments, is a good rule of thumb. And yes, the country of Iraq still needs to be referred to as an aggressive investing opportunity because of the politics involved with the current situation in Iraq.

If all you have is Iraq Dinar for your entire investments, then you need to put some money into something else like Gold or some other opportunity, even cash! You may even diversify your Iraq Dinar investment itself. There are several Iraq related stocks, bonds, and the dinar currency itself.

2. Invest only what you can afford to loose

If you have been in this game for a while you have heard this before, don’t buy more dinar than you can afford to loose. Why? Well, it’s just the nature of the beast. Dinars are not considered a safe investment, so, don’t put all your eggs in one basket! Keep in mind, higher risk opportunities come with them the chance for strong returns on investment, and the worst is over as far as Iraq’s unrest is concerned.

3. Don’t take advice from the broke and busted

Are you going to call your plumber for advice when you got a toothache? No! Then why would you ask your relative who drives a pinto for investing advice with the dinar?

4. Decisions

Have you ever heard that people who have a hard time making decisions also rarely stick to the decisions they do make? Well, you ideally want to be one of the people who make plenty of decisions and stick to them. This mentality is common among the dinar investors who have stuck it out over the years. If you are new to Iraq money just keep in mind the worst is over so stay in the game. What is a true decision? Committing to achieve a certain result and cutting yourself off from any other possibility.

5. Plug into a mastermind

Dinar has been on eBay for the better half of a decade now, and there are many Iraq blogs, dinar forums, you name it. There are even a handful of live calls that you can plug into like the one we as a community do from time to time here at DrDinar. Can you think of a better way to learn more about your Iraq dinar than to talk to other Dinar investors who have the same concerns as you? Stay plugged into a positive mastermind that gets past the gimmicks for some real dinar feedback to weather the storm of waiting.

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Written by Darren Chabluk for http://DrDinar.com/blog
This article may be reproduced online or offline as long as
this box remains and is hyperlinked online.
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By SAM DAGHER

BAGHDAD—Prime Minister Nouri al-Maliki said his government would tackle logistical and other obstacles facing international oil firms working in Iraq, saying his country desperately needs to boost oil revenues to meet its massive infrastructure-investment needs.

In his first interview since the Parliament confirmed his new cabinet this month, Mr. Maliki acknowledged that oil companies have been facing delays in getting necessary equipment into Iraq because of backlogs at the airport and the main border entry points in the southern oil hub of Basra.

But he said he was getting involved to resolve the issues, which oil executives have been complaining about for months.
[IRAQOIL]

Mr. Maliki, whose previous government opened the way to the current spate of foreign-led, oil-field redevelopment work centered in southern Iraq, said his new government would be equally welcoming to international petroleum firms. “We have no restrictions on their entry. We want them,” Mr. Maliki said, referring to foreign oil companies and oil-services firms. “We need speed. We need money.”

While Iraq is home to one of the world’s richest deposits of oil, it has struggled to fully exploit that wealth over years of war, sanctions and underinvestment. Iraqi oil production has been stuck at some 2.5 million barrels a day, about its level before the 2003 U.S.-led invasion.

Baghdad aims to lift output to 12 million barrels a day in less than a decade, and last year, Mr. Maliki’s government green-lighted a handful of international consortia to boost output at some of the country’s biggest fields. But companies at work in the south are already complaining about big bottlenecks—including capacity limitations at a big Iraqi port near Basra, and bureaucratic red tape that slows the import of equipment and issuance of visas to staff members.

Mr. Maliki said he was meeting this week with senior security officials to tackle logistical bottlenecks and find other ways for firms to bring in equipment.

Oil sales account for more than 90% of Iraq’s revenues. Mr. Maliki said Iraq needed to plug an expected 14.3 trillion dinar (about $12.2 billion) gap in next year’s 93 trillion dinar budget. He predicted that the country’s cash-flow problems would ease by September when one of four new floating oil-export terminals currently under construction in Basra would become operational.
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* Iraq Wants the U.S. Out

Mr. Maliki said the four new terminals would handle 3.6 million barrels a day in all, more than doubling Iraq’s export capacity.

Separately, he said work would start soon on an agreement to build an oil pipeline from Northern Iraq to the Syrian port city of Baniyas. The new line would be able to pump 2.6 million barrels a day when finished.

The prime minister also said a fresh batch of proposed amendments to Iraq’s investment law would better protect foreign investors and spur interest in several sectors, including housing.

Mr. Maliki said he was determined to shield the country’s oil sector, and foreign investors, from political interference, including from partners in his own government.

Mr. Maliki cobbled together an unwieldy coalition of politicians, some of whom have been publicly skeptical of a foreign role in the oil sector. He promised to fire offending ministers. “The government will have a single message,” he said. “Whoever has a different message should leave the government and join the opposition.”

He dismissed a recent fatwa, or religious edict, by anti-American cleric Moqtada al-Sadr prohibiting his followers from working with foreign oil companies, calling the edict a “mere opinion.”

Mr. Sadr’s political movement, which did well in March parliamentary polls, played a decisive role in helping Mr. Maliki win a second term. The movement won eight ministries in Mr. Maliki’s new 45-member cabinet. “What kind of Islam prohibits this?” said Mr. Maliki. “These are not security or occupation companies,” he added. “These are oil companies that have come in accordance to open tenders and won oil contracts, and they are most welcome.”
— Hassan Hafidh in Amman, Jordan, contributed to this article.
Courtesy of the Wall Street Journal

I want to wish you and your family health and happiness this holiday season.

We are going to have some great calls in 2011! Hope to talk to you soon on one of our upcoming live calls, stay posted.

Darren Chabluk

Global Capital Launches Iraq Focused Fund
by Seth Fraser, Reporter, December 6, 2010

Global Capital Investments is launching an Iraq-focused maiden fund to capitalize on the country’s stabilizing economy.

Chicago-based Kenneth Kuhn, a managing director and longtime currency trader of the Iraqi dinar, began the fund in November to provide better access to Iraq’s financial markets.

The fund primarily invests in listed equities on the Iraq Stock Exchange and has already selected about 44 of the 93 stocks on the ISX, according to Reuters.

Attractive reasons to invest in Iraq, according to Kuhn, include a dropping interest rate, rising exports, a stabilizing dinar and minimal national debt.

“The fund uses a long strategy in a diversified portfolio with an emphasis on the banking sector,” Kuhn told HedgeFund.net. “Our single largest holding is in Dar es Salaam bank which is 70% owned by HSBC.”

In addition to the banking sector, Kuhn sees vast potential in oil reserves, as well as the agriculture sector which is recovering from the oil-for-food scandal.

“Currently Iraq is a market at an historic bottom with the resources to rebuild,” he said.

The Iraq focused fund is still in its fundraising stages with a target of $10 million.

The minimum investment is $100,000 and the fee structure is 2% and 20%.

“It is the first fund of our firm and we hope to grow other sister companies,” said Kuhn.

Global Capital was co-founded by Abraham Merchant and Kenneth Kuhn in 2010 and is headquartered out of Illinois.

This article may be viewed at:
Global Capital Launches Iraq Focused Fund
by Seth Fraser, Reporter

As of now, there is not an international exchange rate that dictates the value of the New Iraqi Dinar. The currency came out in 2003 and people who have bought the Dinar with Dollars have helped double the Dinar’s value. The current value is based off current program exchange rate determined by the IMF and the Central Bank of Iraq. If you want to buy the currency, you cannot go to a bank and get it. You need to use the services of registered money brokers to buy the New Dinar and exchange it for the currency you like when the international exchange rate is set.

Hold a Stake in Iraq’s Success

Consider this: prior to the Gulf War, you needed $3,200,000 to buy 1 million Iraqi Dinars. However, today you can buy the same number of Iraqi Dinars for $1,199.

Did you know that the US has invested over $ 200 billion for the future of Iraq so far and committed to investing much more in the future? Due to this, speculators are buying the New Dinar up in billions. Currently, you can buy close to 100,000 New Iraqi Dinars for $100. They have the world’s third largest identified oil reserve and with the new government, they have been tapping into it. A number of oil companies are expressing interest in the Iraqi oil reserves too, and it won’t be long before the Iraqi Dinars will be worth a lot more.

Even in the midst of all the chaos and political uncertainty, the Iraqi dinar has managed to appreciate by 25% (since 2003) and forecasters predict continued appreciation. With confidence in the currency, stability and growth are sure to follow shortly and it is definitely a good idea to be a part of it!

To learn more information on the Iraq Dinar or the Dinar exchange rate, visit DinarBanker.com. Dinar Banker is a fully-registered U.S. company and has thousands of satisfied customers around the world.

For more information on the Iraqi Dinar, including the latest revaluation, exchange rate, economic, and political news, please visit http://www.DinarBanker.com

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