My goal is to properly inform you why we are where we are at with the speculative investment called the Iraqi Dinar. Also it may be an eye opener to many on how governments do what they do. So here it goes. To tell the full story, I would have to write a book, so I will try to condense as much as possible to bring the main points to life.
Understand my writings are my view from all that I have gathered and I am sure any who are mentioned will deny at any moment this is or could be the truth.
During the term George Bush, Sr. was president, I will say a group of people who have more power than any one government saw the way our country was going to be financially in the next ten to twenty years. ....
Due to the way we allowed financing to be done, the way mortgages were done it would cause our monetary system to fail in years to come.
It would cause millions to be without jobs, to lose their homes, allow millions to be in a position not be able to feed their families. Sound familiar? That time frame they saw back then that would be was from five years ago to our present time.
They saw back then that we were going down a path where we would be spending more than we could pay. United States as we know it would self destruct. From this, they had to do something that could change the course of events, otherwise, we would financially destroy ourselves.
If it wasn't for what they did, we would have. But what they did, will change the course of events just temporarily, until a more permanent fix could be implemented. The more permanent fix was and is a one world currency. But not to get ahead of myself, let me tell the story as I know it.
In order to fix a to be broken financial country, they needed to "use" a country that had all of the right "perks" that could be basically crushed and rebuilt, which would cause a new currency to be developed and then revalued. From this, the monies profited from this could fix the debt that would soon swallow the country if not corrected.
So, they saw that Iraq had all the "perks" needed to be the "fix". But how to get Iraq in a position to where this could happen.
Well, this group that I mentioned earlier that has more power than any one country government, paid Saddam Hussein to invade Kuwait. This provided the opportunity to go in Kuwait and drive Iraq out.
Having Iraq invade Kuwait, provided the event to oust Iraq from Kuwait which meant Kuwait needed a new currency and then revalue their currency.
This in turn, caused the United States to have a large surplus during the Clinton administration as the profits obtained from Kuwait revaluing their currency.
How that happened is when Iraq invaded Kuwait, they took their currency. So when we came into Kuwait, we had the UN devalue the Kuwait currency so Iraq could not buy weapons with it. Once, Iraq was removed from Kuwait, we had the UN create a new currency and re-implement the previous value to it.
The United States took Kuwait dinar as payment before the revaluation. When it revalued, the US made a huge profit causing a surplus for our country during the Clinton administration.
Now that is what happened that led to us invading Iraq later stating they had "weapons of Mass Destruction", which many found out later was never there. It was a term used for US to gain access to invade Iraq, so the same scenario could take place once again like it did in Kuwait so the US could make a huge profit and cure the deficit we created.
The big difference is it also provided us with a new allie in the Arab world that sat right next to Iran. In addition it allowed us the position to create a democratic Arab nation that in time would replicate itself throughout the Arab nations. We see this happening now in Yemen, Libya, and other Arab countries. But the main reason as all already know is it gives us a stronghold on the oil situation in the Arab community.
But back to the story.
Once we invaded Iraq, overthrew Saddam and freed Iraq from its dictator, we now had to rebuild Iraq. Like Kuwait, but drastically different. Why? Kuwait was already established as a democratic country. All that was needed there was to re-establish their dinar value after creating a new currency.
With Iraq, it had to be rebuilt from scratch.
We had to assist them to form a government through electoral process. We had to rebuild their electrical and water grids. Had to rebuild their roads and highways. Not to mention their oil pipelines and pumping stations.
Unfortunately, there was some drawbacks that was not foreseen such as no one in Iraq could trust each other for hundreds of years. So to create a government where the people of Iraq could trust took many years, and to this day is still not completely functional as you can see with the continuous feuding between blocs as Maliki and Allawi.
Both think they should be the Prime Minister and both think their way is the only way. It took over 9 months for Iraq to have a semi-functioning government that could start passing laws. And to this day, by their constitution, every law to be passed must be read three times in Parliament, allow any Parliament member to tear it apart before it can be passed by all before it is a law.
So the rebuilding took much longer than did Kuwait. Kuwait, 3 years verses Iraq 11 years and still going.
So when we invaded Iraq, we did the same thing as have the UN devalue the Iraq currency to zero, invaded, ousted the dictator, then printed a new currency, and now we are in the process of re-valuing the currency.
This is the part that makes you and me money. When the new currency was printed in 2003, the US spent $500 billion dollars to print new Iraq dinars, when printed, we took some of the new dinars as repayment for the $500 billion spent.
This was in the amount of many trillion dinars which is tucked away waiting on revalue. When Iraq re-values its currency, many feel it should be closely aligned with Kuwait which is at around $3.64 to 1 Kuwait Dinar.
When this happens, US will say ok Iraq, I have all these trillions of Iraq Dinars I want to cash out. There will be more than enough to pay off our national debt if it is chosen to be used that way. In addition, the more than 4 million US citizens that will cash out their dinar, will create millions of jobs that those who are now wealthy will end employment.
Businesses will prosper due to millions buying things. Real Estate will prosper, banks will prosper and IRS will prosper. All will benefit from this.
But, during the process of this being about us, things changed. Different countries who modeled our way of doing things also started tanking and before the Iraq Dinar could re-value it was stopped and the purpose for Iraq re-valuing had to be changed from a US fix to a global fix, which is where we are now.
At this point we have over 140 countries needing the Iraq Dinar to be the fix.
The global financial situation continues to grow into a gigantic world overhaul, which many presume was the purpose from the beginning. Hence, the one world currency which is still yet to be a threat by those same group that are more powerful than any one country.
So today, we have Iraq finalizing the Erbil (governmental power sharing agreement) which will be the immediate fix for the HCL (hydrocarbon law, which divides the profits of oil revenue to the different states of Iraq) as well as will complete the passing of the law of the 2012 Parliament Budget. What is important about the 2012 Parliament Budget being passed is the re-value is in this budget.
Now that you have been updated as to how the events took place to make this happen, lets go into why it will happen.
During Saddam's reign he created a massive debt to many countries. Owing $ billions of dollars to many. Once we got him out of power and started rebuilding Iraq, we had to get these countries to not go after the profits Iraq would make on their oil.
Understanding that Iraq has the 3rd largest oil reserve in the world, and soon to be the leader in oil reserves. Saudi Arabia is 1st and Canada is 2nd. I know, you are surprised that Canada is 2nd. I was too.
Anyways, to get the countries that Saddam owed to not come after the oil profits, we as in the UN (United Nations) and IMF (International Monetary Fund) froze Iraq Oil Profits and kept the countries that Saddam owed from gaining access to it.
Eventually we worked out with them that to trade in exchange for Iraq Dinar that was now worthless if they would forgive Iraq of their debt to them. Well, eighty percent forgave the debt owed to them completely in trade of a present worthless new Iraq Dinar and the other twenty percent forgave over eighty percent of the debt owed to them in exchange for the new worthless Iraq Dinar. Makes you go hmmmmm.
Now we have many countries around the world holding the new Iraq Currency that presently is worthless. Why would they go for this? Well, they know that in time, it will be worth what it used to be $3.22 per dinar or more somewhere down the road.
So, we have many countries that will not allow this to fail because they are holding a lot of Iraq's new currency.
We have a country (Iraq) that is pulling more gold out of their ground per day than they are pumping oil out. Which was just found a couple of months ago, right under the streets of Baghdad. Funny thing is, they was trying to fix their rain water run off when they discovered this. Now, they already had well over 500 thousand tons of gold in storage. So we know they have massive amounts of oil, natural gas, and gold.
They also have the most fertile ground for agriculture along the Euphrates river. At one time, Iraq was the number one producer of grain in the Arab nations, and will be again. So Iraq has the ability to cover the re-valuation of the Dinar just in assets alone but that is not how they will cover the re-evaluation. Let me explain the process, when the Iraq Dinar re-values and we cash out our dinars.
Here is the cash out process. (IMO)
When Iraq re-values their currency they will have to set a rate of exchange for it. They will do this through their "Federal Reserve" they call the Central Bank of Iraq (CBI), their website is www.cbi.iq .
Once this rate is set, we go to our local bank, probably one of the main four of either Chase, Bank of America, Wells Fargo or Citibank (the same banks that right now say they will not cash out Iraq Dinars, because, they say its not a tradable currency at present).
They, will most likely want to give you a little less than what the CBI states the value is and this is called a spread, which is a percentage or profit margin the bank will make to do the exchange for you (unless you group up with other dinarians and bring the bank an amount that will make them go WOW, lol). I'll explain more later on this.
But lets say for example their spread is 1%. What this does for the bank is the amount of cash, that you make from this exchange, that goes into their bank, will be used in a term called fractional banking. This means that they can now loan money out, ten times, what you put in the bank. So it gives the bank money to make money (Fractional Banking).
The bank will take your Iraq Dinars, give you money in your account, then send the Iraq Dinars to the United States Treasury (UST). The UST will give the bank the money either virtually or wire transfer the amount the CBI rate is. The UST now either sends Iraq the dinars or tells Iraq, they have this much Iraq Dinar, and in turn Iraq will give USA oil credits at $35 a barrel of oil (This has already been agreed upon and is in the records).
Now the USA can either take this $35 a barrel of oil and use it here or it can resell it for $100 a barrel or more to other countries. If they sell it, they just tell Iraq send 200,000 barrels of our oil to Germany for example.
Now, you have been paid, the bank has been paid and UST has been paid. Iraq cost to get a barrel of crude oil out of the ground is around $13. So, Iraq now has made a profit of each barrel of USA sold oil of $12.
In essence, it does not cost Iraq anything to cover the cost of the re-value (RV). Actually they made money by re-valuing their currency!
If this does not drop your lower jaw then I don't think nothing will.
A well executed plan to not only fix USA's debt problem, cover many other countries debt problem but also, place us in a position in the Arab Nation where we can indirectly control the western hemisphere, as well as get rid of the remaining countries dictators which will bring peace to the world all in one swoop!
Got to applaud ole Senior Bush and boys for a plan of a lifetime. And through all of this, you gained wealth.
Now after reading this, you understand why I invested in this 7 years ago.
OK, so there you have my rendition of what took place as to why the Iraq Dinar MUST revalue.
Always remember to STAY GROUNDED............GO RV................. Workinman......