#Iraqi Dinar money laundry

[dinaritexch]

Iraqi Dinar Manipulation – Used in Speculation and Fraud Since the Iraq War (2003–Present)

Introduction

Since the Iraq War in 2003, the Iraqi Dinar has been the subject of significant fraud and scams and conducted a lot of speculative business. This currency has been sold as people’s ticket to freedom; a tool for accumulating financial wealth across the globe. But behind all the glamorous image exists hidden and lies antithetical objective, such as deception, misrepresentation, control. This article looks into causes of Iraqi Dinar speculation, how the manipulation process works, and the truth about investing in it.

The Rise of Dinar Speculation

Hype and Promises

In the wake of the 2003 Iraq war and the collapse of the Saddam Hussein government, a new wave of excitement to invest in some parts of the world was sparked among some factions in the investment community. The large oil reserves in Iraq, combined with the prospect of a stable, rebuilt government, encouraged many to invest in the Iraqi Dinar as a fundamentally undervalued currency that would soar and become one of the most valuable foreign currencies within the following year. There were stories doing rounds of social-economic Mississippians who stood to gain fortunes of anything over a few thousand dollars, with the possibility of the Dinar being ‘revalued.’

With this, currency dealers and promoters began to promote the Dinar as a ‘one-time wealth in a lifetime opportunity.’ They appealed to the concept of getting rich quickly, the big bang theory, and comparison to the realignment that occurred with the German Mark in the aftermath of World War II or Kuwait Dinar, post the Gulf War. These stories turned into the basis of various get-rich schemes, and the media and discussion boards continued the celebration of new wealth.

Post-War Economic Instability

But what was on the ground in Iraq was a far cry from this. This war created many problems to the economy of the nation. Transport and communications networks crumbled down, political governance was a far cry and graft became synonymous with many tiers of governance. Inflation rates hit through the roofs, and this was the Central Bank of Iraq’s nightmare in a bid to stabilize the Dinar, given the continuing conflict and foreign occupation.

Nevertheless, the story of an impending revaluation did not disappear at all. It is for this reason that the speculation can be attributed to both a deliberate manipulation by some investors and actual lack of knowledge by others. Few understood the various economic indicators needed to ensure meaningful stability and appreciate the currency. Instead, investors relied on the story that sellers told, especially the one about Iraq’s oil revenues, though they failed to reveal that Iraq’s economy was in  terrible state.

These two dimensions produced the illusion of more than what was actually present economically and the actual economic situations, ignoring the speculation. People invested in the Dinar out of mere expectation instead of rational decision-making, and many bought foreign currency from unscrupulous dealers who overcharged the legal limit.

Mechanisms of Manipulation

Misleading Marketing Tactics

Many people promoting Iraqi Dinar speculation used more advanced and complex but deceptive strategies to lure possible investors. Having raised expectations based upon often false stories concerning the government’s intentions to revalue the currency, they were able to spread this false story, serving their own agenda of their private and personal ends. These claims were often expressed in a manner that invoked specific knowledge, such as using formal terms such as “global currency reset” or “RV,” that is revaluation. Promotional items were to appeal to the psyche of the human mind, and such things as the ‘limited edition’ or ‘before you know it, the offer will soon be closed.’ Such tactics also did not only create a speculative rush for the currency but also ensured that the currency was from being affordable to the real market value it commanded.

Scammers indeed used fake documents such as legal documents from well-established banks or genuine government recommendations to support the fraud. Such materials were normally fakes, and targeted people who could not afford proper identification of genuine and counterfeits.

Exploiting Trust

Many of the scams involved the element of trust in regards to the Dinar. The attackers often chose the populations who would easily fall for their authority or take a word from a professional in the financial field without questioning it. High risk clients for such a scheme worked well; especially the retirement age client who is always on the lookout for ways to generate extra cash.

The fraudsters learned roles such as professional financial advisers or those people who claimed to have firsthand information regarding the forthcoming Iraqi economic strategies. They backed their claims with fake success stories from the likes of people who obviously had made handsome profits. Many of these testimonials contained concrete and realistic components to increase their credibility: stories and photos with the ‘before and after’ effect.

Other exploitation of trust was achieved through community engagement strategies. Community builders conduct webinars, post on forums, or even create the nucleus of an online community that investors in Dinar trust with their money. In the groups, people with different views were silenced, and persons who doubted the reasoning were expelled. This environment of reinforcement made it even more difficult for participants to see the wrongdoing in the schemes.

Fraudulent Practices

The Role of Currency Dealers

Currency dealers were instrumental in(feeding/building) the speculative bubble regarding the USD asset known as the Iraqi Dinar. Such actors usually disguised themselves as real financial companies with websites and ad campaigns to increase the circle of victims. Realizing that there was no legal bar on currency trade across borders and thus no legislation to regulate such trade, they oversold the Dinar at grossly inflated rates that often charged 20 percent or more as a premium to the actual exchange value of the currency. Dealers were counting on the thought that the Dinar’s value was to skyrocket soon through unsubstantiated rumors of insiders and fake timetables for the revaluation of the dinar.

A few others involved even more ‘extra services’ like secure storage for the Dinars they had bought or even guaranteeing that they would buy back the Dinars at a certain rate and this went a long way in putting the whole concept over as real and legitimate. In point of fact, such promises were but an illusion since buyers were unable to resell the currency at the higher prices they offered for the same.

Pyramid and Ponzi Schemes

The fraudsters learned roles such as professional financial advisers or those people who claimed to have firsthand information regarding the forthcoming Iraqi economic strategies. They backed their claims with fake success stories from the likes of people who obviously had made handsome profits. Many of these testimonials contained concrete and realistic components to increase their credibility: stories and photos with the ‘before and after’ effect.

Other exploitation of trust was achieved through community engagement strategies. Community builders conduct webinars, post on forums, or even create the nucleus of an online community that investors in Dinar trust with their money. In the groups, people with different views were silenced, and persons who doubted the reasoning were expelled. This environment of reinforcement made it even more difficult for participants to see the wrongdoing in the schemes.

Influence of Online Platforms

Currency dealers were instrumental in(feeding/building) the speculative bubble regarding the USD asset known as the Iraqi Dinar. Such actors usually disguised themselves as real financial companies with websites and ad campaigns to increase the circle of victims. Realizing that there was no legal bar on currency trade across borders and thus no legislation to regulate such trade, they oversold the Dinar at grossly inflated rates that often charged 20 percent or more as a premium to the actual exchange value of the currency. Dealers were counting on the thought that the Dinar’s value was to skyrocket soon through unsubstantiated rumors of insiders and fake timetables for the revaluation of the dinar.

Social Media’s Role

A few others involved even more ‘extra services’ like secure storage for the Dinars they had bought or even guaranteeing that they would buy back the Dinars at a certain rate and this went a long way in putting the whole concept over as real and legitimate. In point of fact, such promises were but an illusion since buyers were unable to resell the currency at the higher prices they offered for the same.

Healing bubbles that are built within these platforms reinforce the hype. These echo chambers are not ideal for opinions or critical analysis and discussions within the group where dissenting opinions are quelled, promoting speculative attitudes prominent within the setup. For instance, comments that dismiss the possibility of the Dinar speculation are often removed, and the skeptics themselves may be barred from posting to the forum.

Forums and Groups

The most serious viral breeders of a community-generated false narrative are current web-based discussion boards and newsgroups. Reddit and investment forums for specific sectors provide special topic subreddits dedicated to the Iraqi Dinar alone. They post fake success stories that include details of how a little money invested in currency will make them become a millionaire.

Such stories tend to be compounded by rumours of some ‘inside information’ or such other mere assertions that are frequently tied to some governmental policies. Whether they are true or fake, the satisfaction they portray makes new investors trust that they can invest their money successfully. The structure of these forums adopts that of a support group in that the participants encourage each other to invest.

Viral Campaigns and Manipulative Strategies

Other gimmicks also used in viral marketing have also been aimed at tricking unsuspecting people into the given links. Bright pictures, attractive titles, and crisp videos make it possible to believe that keeping Iraqi Dinars means making much money. Such campaigns are often so themed as to use calls to action such as ‘Your secret opportunity’ or ‘Get this insider tip before everyone else does.’

The Spread of False Information

More often than not, what is being shared on these trees is either stale or misleading. For example, debates on revaluation use economic statistics or political occurrences that are still not valid for the market. Mostly, these inaccuracies are never corrected, hence entertaining the myths that surround the Dinar to the public.

Consequences of Online Manipulation

Nonetheless, the influence of online platforms is not confined to mere speculation. This influences tangible choices: people lose a sizable amount of money in the currency without knowing its risks. Furthermore, the echo chamber effect reinforces the spread of fake news and kills any possibility of potential investors researching the truth about the company.

This means while promoters of Iraqi Dinar speculation have been active on the internet making an issue that might otherwise have been a regional one, a global one. For many, the lesson here is clear: caution and rationality are among the valuable assets when it comes to dealing with different types of uncertain investments.

Legal and Regulatory Concerns

Actions Taken by Authorities

Legal authorities have arrested con artists specializing in counterfeit money and have created campaigns that warn investors of the scams. However, the enforcement remains a problem because, unlike a Ponzi scheme, these scams are international in nature.

Legal Loopholes

The lack of sound international regulations and the issues of jurisdictions have helped fraudsters continue operating.

Realities of the Iraqi Dinar

Understanding Currency Valuation

Most novice traders never know the basics of currency appraisals. Prices of commodities, inflation rates, and most of the policies that are made by the government affect the value of a particular currency. Under this condition, the revaluation of the Iraqi Dinar still remains unfeasible.

Iraqi Government’s Stance

This case the Iraqi government has time and again gone on the offense and warned the public against speculative activities on the currency. Those in power make a point of stating that they do not have any plans of engaging in hostile revaluations and investors should ignore anyone who tells them otherwise.

Economic Impact on Iraq

Internal Challenges

Bulls have shifted focus away from real areas of concern in Iraq’s economy. The obsession with Dinar speculation takes the focus from more pressing problems such as joblessness and the reconstruction of the physical environment.

Global Perception

The ‘reforming’ of the Iraqi Dinar has brought Iraq terror into the sphere of global legitimacy and damaged Iraq’s reputation to an extent that has made it difficult for the country to attract legitimate foreign investment.

Lessons for Investors

Importance of Due Diligence

Accomplished investors must be informed, patient, and have good judgment for themselves and the community to avoid such schemes. One must identify and check potential reliability of the sources used and another – evaluate the possible hazards of currency fluctuations.

Understanding Currency Investments

Profiting from currencies is always a gamble and the same applies to the Iraqi Dinar in this case. It falls upon investors to differentiate between speculation and investment where, instead of relying on cheerleading, key economic statistics are used.

The Future of the Iraqi Dinar

Is Revaluation Possible?

Most economists do not expect a large revaluation of the Dinar in the nearest future. It is prohibitive by factors such as political instability and high inflation rates that are characteristic of Iraq’s economy.

The Way Forward

The opportunity to make significant changes is required to stabilize the currency in Iraq. Better governance, encouraging investment, combating fraud and embezzlement are the prima facie for rebuilding confidence in the Dinar.

Conclusion

Modern people can learn a lot from the examples given, especially from the story of the manipulation of the Iraqi Dinar. This application stresses adherence to necessary caution and knowledge, as well as economic facts and findings. That is why the exotic concept of gaining enormous amounts of money in a short time due to successful speculation on the Dinar is much more dangerous than beneficial. To invest in such ventures, particularly new ones, requires both eyes open and a lot of caution to avoid being caught in hype.

Source:- Dinarit

[kathryngadberry-blog]

Bitcoin As Money Debate

Chances are you’ve heard a lot about Bitcoin (BTC) in the last few weeks.This digital cryptocurrency peaked at an all time high price of $4,923 on September 1, 2017 (1 *Tumblr doesn’t allow for superscript on sources). This is an indication of more participants and interest in the Bitcoin market, many of whom are asking the question ‘is this real money?’ I will attempt to lay out the case for both positive and negative responses to the question, but ultimately, the reader must make up his or her own mind on the issue.

Before answering the question ‘is Bitcoin money?’, there must be a general agreement on the definition of money. According to Merriam Webster’s definition, money is : something generally accepted as a medium of exchange, a measure of value, or a means of payment (2). Here are the factors that we must consider:

Side #1: Bitcoin is Money

Bitcoin meets many, if not all, of the requirements of being money.  It successfully performs as a medium of exchange, store of value and unit of account; all characteristics required as functions of money.

It can be said, in general, money is anything used to settle a debt. Throughout history this includes different types of shells, metal coins, paper notes, and even unusual items like cigarettes, canned fish, or tide laundry detergent (3-5). Even though it is not yet widely used in economic transactions, Bitcoin is a sufficient medium of exchange especially in the digital age. Money is a social function and has proven over time that it can be a tool that takes many different forms, as long as it helps facilitate the diversification of assets and economic benefit of producers and consumers alike.

Bitcoin also acts as a legitimate store of value. It holds certain qualities that optimize the usage of money. Electronic money is portable, durable and fungible (it all looks the same). Bitcoin itself is currently divisible by up to 8 decimal places, easily recognizable, and limited to a supply of 21 million, released by an algorithm up until the year 2140. Bitcoin users will want to save it and not spend it since it is inherently non-inflationary. Deflationary theories are the only real threat to the viability to BTC as a store of value. Deflation, a reduction in the price level of goods and services, is a risk for all monetary systems. An important difference is that Bitcoin is an asset and not a debt in the popular fractional reserve banking system. This is the opposite of fiat currencies because Bitcoins only deflate in value when the Bitcoin Economy is growing (6).

As a Unit of Account, Bitcoin aligns with how our economic world is currently operating. The numbers that are written down in your bank statements are not the physical transaction of notes, but a snapshot of your ongoing financial records. The bank has a liability for your money in your bank account; it’s not actually there. A majority of transactions now happen electronically. Our society is even trending towards discontinuing the use of cash. In the article New Monetary Economics Revisited by David Cronin (7), a senior Economist with the Central bank of Ireland, he explains a study that found the demand for small-denominations US dollar note and return of old paper notes to the Fed have fallen steadily since 1980, suggesting it is not longer used in payment activity. The government, bank or credit card company’s monetary guarantee is essentially backed by nothing.The use case of the Iraqi Swiss Dinar in the 1990s is proof that zero-commodity or government backed currency can still be a sustainable economic tool (8).The US Dollar has not been backed by gold since the 1970s. Personally, I look at my Bank of America app on my phone, and see the line items posting values that go in and out as I spend money through Venmo or with my credit and debit cards. This is a reflection of how most people are currently managing their individual and business finances today.

Side #2: Bitcoin is not Money

Bitcoin is not real money, in a practical sense because it is not generally accepted as a measure of value, too insecure for storing funds, not regulated by a legal institution, as well as not backed by a tangible commodity.

One of the major functions of money is to act as a measure of value. The price volatility leaves members of the market uncertain how the value of a good or service in Bitcoin might fluctuate day to day. The current economy does not sell houses, cars or groceries in terms of Bitcoins. In theory, it might meet this function of money, but in reality, price instability and lack of market adoption are both reasons why Bitcoin is not used as an adequate measure of value at the present time (9).  

Another reason is that, at its present state, the Bitcoin economy is not safe for all users. The technology itself might be solid, but many of the platforms, exchanges and ICOs out there now are riddled with bugs, hacking and theft opportunities, and get rich quick schemes. No one should invest anything in Bitcoin or other cryptocurrencies that the are not willing to lose until the  security of these sites and companies has evolved. This fact echoes the first point of not being generally agreed upon by society as money.

In the Origin of Money, Carl Menger writes that money can exist without regulation, but is perfected through it (10). Much of the future uncertainty that lies with Bitcoin is around government regulation. There is speculation about how a crackdown or ruling that deems the cryptocurrency illegal will affect value and continuation of Bitcoin. Certain groups argue that it is still in development and we won’t know until the technology has had more time to mature. It may be too soon to make a definite claim until it is fully evolved. The grey area of sovereign regulation could decide whether or not Bitcoin is money without permission from the users.

In the United States, the Federal Reserve has control over the money supply and does not recognize Bitcoin as an actual currency (11). Bitcoin is not backed by any government, bank or credit card company. These are institutions we currently depend on for price stability, credit, loans, insurance, and storing our wealth. If your BTC gets lost or stolen, no one is going to refund you or bail out your business.  Many people agree that the trust we afford our governments, banks, and credit card companies is safer than trusting a relatively new network of decentralized computers. Currency, acting as a subset of money, is a system of money in general use in a particular country; otherwise known as cash, bills, notes or legal tender. And legally, Bitcoin does not meet this criteria.

No one in the scientific, history, or economics community can pinpoint the first civilization that created the concept of money. Although, it will be the responsibility of our current generation to define its evolution.

Sources

www.coinbase.com

https://www.merriam-webster.com/dictionary/money

Radford, R.A. “The Economic Organisation of a P.O.W Camp”. Price Theory and Its Applications (1945): p8-10.

Durden, Tyler. “Prisoners Explain Why A Pack Of Mackerel Is The Gold Standard Of Currencies in America’s Prisons” (March 6, 2017): p1-16.

Associated Press. Anderson, Mae; Dobnik, Verena; Vergakis, Brock; Nuckols, Ben. “The Tide Theft Phenomenon Is So Bad Store Are Attaching Anti-Theft Tags To Detergent Bottles”. Business Insider (March 14, 2107): p1-3.

https://en.bitcoin.it/wiki/Deflationary_spiral

Cronin, David. “The New Monetary Economics Revisited”. Cato Journal, Vol 32. No.3 (2012): p586-587.

Grinberg, Reuben. “Bitcoin:An Innovative Alternative Digital Currency”. Hastings Science & Technology Law Journal (November 11, 2011): p173-175.

Dr. Evans, Charles. Money and Banking: Class Lecture 1. University of Nicosia. (2017)

Menger, Carl. “On the Origin of Money”. Economic Journal, Vol. 2 (1892): p239-255.

Brito, Jerry; Castillo, Andrea. “Bitcoin: A Primer for Policymakers”. Mercatus Center at George Mason University (May 3, 2016): p41-66.