Millionday Roundtable 2/18/15 Part 2
Welcome to dinarupdates.com for Roundtable with Millionday!
hunch: an invested friend just called and asked me two questions which I am having a hard time putting into words for him...hope you can help. He is hung up on the deletion of zeros and how foreign investors are protected with our 25,000 notes. Also if the USA is aware of this coming to fruition in the near future, why are they still allowing dinar sales? wouldn't they want to stop the bleeding now?
Millionday: THE REMOVAL OF THE THREE ZERO IS WHAT THEY CALL THE CURRENCY IN COUNTRY AND IS ACTUALLY A REDENOMINATION
IRAQ HAS PUT REGULATIONS FOR THE PURCHASE OF DINAR AND MINIMIZED THE AMOUNT ALLOWED
I HAVE SOMETHING INTERESTING THAT WAS WRITTEN --- ON WHAT THE US WOULD GAIN -- HOLD ONE SEC
Millionday: THIS IS FROM FORBES MAG
Millionday: Dozens of people have signed up for tax consultations with me over the years looking for a windfall profit on the U.S. government revaluation of the Iraqi dinars back into U.S. dollars. In other words, these were people holding dinars who were hoping they could exchange them for dollars again.
Most dinar investors are current and ex-military, warzone contractors and now speculators. A cottage industry of promoters has sprung up on the Internet promising dinar “get rich” schemes.
Many have invested, say, $5,000 and they hope to make millions. I’ve always thought it was a scam, as it sounded too good to be true.
Millionday: These people ask me about their potential large tax bills. Most hope for long-term capital gains tax rates, currently up to 15 percent. I have to give them the bad news: holding physical currency is considered ordinary gain or loss in Section 988 (foreign currency transactions).
Unlike forex traders, who don’t hold physical currency and don’t take or make delivery, they can’t file a capital gains election to opt out of Section 988 and into short- and long-term capital gains treatment.
Millionday: NOTE -- OBVIOUSLY HE DOES TAXES
Millionday: That means no lower 60/40 futures tax rate either (Section 1256). At least, it’s not considered a personal loss which otherwise can’t be deducted, as is the case when a person returns from a vacation and exchanges his left over currency from that trip. Investors in dinars can deduct ordinary losses in Section 988, but few expect a loss
Millionday: NOTE -- HE IS EXPLAINING WHAT HE SEES AS THE REASONING FOR THIS BEING ALLOWED AND HOW TAX WISE THIS WILL WORK OUT
Millionday: Our current situation begs the question: Did the Bush administration plan on, and is the Obama administration still considering, paying for part or all of the Iraq war by collecting taxes from the revaluation of the dinar?
If this scheme has any resemblance of reality, it could be an interesting revenue raiser for the government, and I know the government is hunting for revenue raisers and closing of tax loopholes.
Millionday: Maybe the story here is just that it’s a scam. But, if rumors in the marketplace are true, and the dinar does revalue and allow conversion for most to pre-war levels, what are the ramifications for the government, Iraq, the military, investors and taxpayers? Also, what’s holding up the revaluation? Can Iraq handle it?
It does sound like a happy ending which makes me suspicious. How much tax revenue do U.S., state and local governments stand to collect? How many former and current military personnel and contractors stand to become millionaires overnight?
Millionday: SO THIS WAS WRITTEN AND PRINTED IN FORBES -- HIS REASONING BEHIND THE US ALLOWING THIS IS THAT THE TAXES FROM THIS ARE HUGE HUGE –
AND THAT ALL WILL BE SURPRISED WHEN THEY PAY 40 TO 60 % IN TAXES ALONE AND THAT THE GOV IS NEEDING THAT MONIES --- CALLED A REVENUE RAISER
Millionday: MAKE SENSE HUTCH ?
hunch: completely....as a Canadian I'm not sure of the tax implications but it makes sense for the US. thank you so much MD for your time.
cookie: When was this written?
Millionday: END OF 2011
Millionday: SEE I AM WILLING TO PAY WHATEVER TAXES
Millionday: MAKE SURE AND PAY ALL OF YOUR TAXES --- NO MATTER WHAT THEY ARE -- PAY IT IN FULL
Millionday: THIS WAS WRITTEN IN 2011 -- WHAT THE TAXES ARE IS NOT THE POINT -- THE POINT IS THAT THIS MAY BE HAPPENING FOR THE TAX MONEY WHATEVER IT SHALL BE -- SEE A PROFESSIONAL
allinxpress Millionday: To the people that tell me its a scam, or not true I ask them this: Then what will Iraq do? The answer cant be Nothing, because they are too rich. I know u agree correct?
Millionday: TO DEVELOP INTO THE GLOBAL MARKET THEY NEED TO FOLLOW ALL INTERNATIONAL COMPLIANCE -- THEY WILL NOT JUST SIT THERE AND NOT EXPAND INTO TRADE -- NOT IMO
Millionday: BUT MY OPINION DOES NOT MATTER -- IRAQ HAS ANNOUNCED MANY TIMES THEY are MOVING TO A MARKET ECONOMY -- THEY ARE OBVIOUSLY REFORMING AS WELL
OPA: I still believe we will get 3 to 4 times our investment not 3,000 to 4,000 times it .Believe me I hope I am wrong and I am wrong a lot just ask my wife LOL This is if the dinar goes to between $3.00 and $4.00
Millionday: SMILE -- NO ONE KNOWS THE RATE OR DATE AT THIS POINT
Millionday: HOWEVER IRAQ HAD MADE IT CLEAR THAT THEY ARE ENTERING THE COUNTRY INTO THE GLOBAL MARKET AND WE HAVE FOLLOWED FOR YEARS THE LAWS THEY ARE PUTTING INTO PLACE –
IT IS OBVIOUS THAT THEY ARE TALKING ABOUT ALL REFORMS
kathi: I do have a Iraqi news article from yesterday that said that the budget was passed(we know that) but said that the budget got published in that gazette. I don't know what to think of this so thought to ask you.
Millionday: THANK YOU KATHI -- LETS SEE IT
Millionday: HERE WE GO WITH THAT REPORT
Millionday: The results of the discussions that took place between the governments of howler and Baghdad that the federal government is not able now to pay the necessary portion of the Kurdistan Region's budget, according to the budget in 2015 due to the financial crisis and lack of liquidity.
On this issue, said Dr. Ahmed Mahjoub Iraqi Parliament Speaker adviser in a statement to the official website of the Kurdistan Democratic Party today:
"The visit of Mr. Nechirvan Barzani, president of the government of Kurdistan to Baghdad job at such a critical juncture and delicate that Iraq is going through, and we need more dialogues in order to get rid of the problems experienced by the political process and Allkaat encountered lately and that these dialogues will have a big impact and actor at the level of the unification of the national ranks. "
Millionday: NOTE -- THE MEETINGS HAVE A HUGE IMPACT ON UNIFICATION OF THE GOV OF KURDISTAN AND IRAQ FEDERAL ---
THEY ARE STATING HERE THAT THEY ARE NOT ABLE TO PAY THE BUDGETED AMOUNT TO KURDISTAN ---
Millionday: NOTE -- THERE IS A REPORT OUT THAT OF COURSE SAYS THIS IS NOT TRUE
Millionday: He restricted: "The Iraqi Council of Representatives for his part led what it which approving the budget and sent to the Presidency of the Republic and published in the Official Gazette, and thus the Iraqi government is obliged to provide liquidity, and able to get liquidity from the central bank or any other entity,
it is important is Today is obliged to provide this liquidity in Baghdad of the federal government and the Kurdistan Regional Government because there are constitutional obligations and legal obligations on the province and the federal government fulfill them,
and we hope that this visit will be a good omen for all the problems that have occurred in the previous phase between the federal government and the Kurdistan Regional Government.
Millionday: NOTE -- THEY ARE SAYING HERE THAT IT IS PUBLISHED IN THE GAZETTE AND THAT THE FEDERAL GOV IS CONSTITUTIONALLY OBLIGED TO PAY THE KURDS THEIR PORTION OF WHAT IS IN THE BUDGET
Millionday: well said the leadership of the Dawa Party on the Keywords in a statement to the official website of the Kurdistan Democratic Party today:
"The lack of liquidity is a general problem in the country and Statheraly disbursements and laws that provide social protection or provide additional expenses that you give the government,
and all Tllk resources and expenditures will be reduced dramatically and this needs to be solidarity everybody and the lack of liquidity to the Federal Government does not mean depriving the budget of Kurdistan / 2015 / province takes its share, but within the possibilities and the limits of what is in the budget. "
Millionday: SO THEY ARE SAYING THAT THE WHOLE COUNTRY IS SUFFERING AND THE WAY TO MAKE THIS UP IS NOT TO NOT PAY THE KURDS AND KEEP THE FUNDS -- ALL OF THE COUNTRY IS WITHOUT FUNDS AND LIQUIDITY
Millionday: He Keywords: "The Iraqi government claimed that the work on the provision of adequate resources through oil or through investment or through procedures with the Central Bank or the other,
because the budget has given the government's options in this direction, even if they could borrow, but now steps going thoughtful It is not obliged to borrow, and we hope that it is not up to it, because there will be improved by getting reports in reality oil and prices. "
Millionday: SO THIS IS SAYING -- IT DOESNT MATTER HOW THE COUNTRY AS A WHOLE PAYS ALL TO ALL AREAS -- EVEN IF THEY BORROW --- BUT THE KURDS HAVE TO BE PAID ACCORDING TO THE BUDGET AND ALL PROVINCES ETC
Bentley: Not to stir the pot on something we obviously do not have an answer for yet...but why would we assume there is going to be any tax on a Currency Exchange.
Will they begin taxing every world currency exchange, every day? No matter how big or small? There is usually a "buy-sell" rate but never has been a "tax" on exchanging.
Wouldn't they have to write a law qualifying what is a "currency investment" at what point is a tax applicable (how much of an increase) conversely...can you write off a decrease?
There would be tons of red tape if they decide to get into taxing currency. It would make more sense to me if they were speaking of the "spread" relating to what Gov't rate is vs what our rate will be. I can see that being 40% or more
Bentley: Sorry, I had that question before your latest report...
Millionday: I UNDERSTAND THAT THIS IS A BIG QUESTION -- THE PROBLEM IS -- I AM NOT A TAX PROFESSIONAL AND YOU HAVE TO SEE ONE LEGALLY TO GET THOSE ANSWERS –
I DONT KNOW AND WISH I COULD GIVE YOU THE ANSWER BUT IT IS ILLEGAL TO PRETEND YOU CAN GIVE ADVICE WHEN YOU ARE NOT AN OFFICIAL TAX PROFESSIONAL
Millionday: BUT BENTLY -- I UNDERSTAND YOUR QUESTIONS ON THIS -- SMILE
kathi: When this article said that the budget was published in the gazette, this isn't true, right since we should be able to see it in the gazette by now.
Millionday: THE GAZETTE IS WHAT AN ONLINE SITE IS CALLED BUT THIS IS STATING THE LAW BOOK IN IRAQ CALLED THE GAZETTE ---
THE THING IS THAT ONE REPORT SAYS IT IS PRINTED AND ONE SAYS IT ISNT -- SO WE WILL SEE WHAT WE HAVE TONIGHT ---
THE REPORTS I HAVE SAY THAT IRAQ GOV NEEDS TO PAY THE KURDS BUDGETED AMOUNT AND THE LACK OF LIQUIDITY IS NOT TRUE -- NOW THAT I HAVE IN MULTIPLE PLACES
allinxpress Millionday: If the lack of liquidity is NOT true, then why wont the GOI pay the Kurds?
August: Are the reports true, that the budget has been published to the Gazette and there is now an official investigation?
Millionday: AUGUST -- I HAVE READ THAT THE KURDS WANT THEIR FUNDS AND THAT THE LACK OF LIQUIDITY IS NOT A REASON THEY WILL ACCEPT
Millionday: ALLIN -- BECAUSE THEY ARE LACKING FUNDS IN THE WHOLE COUNTRY AND THE IRAQIS WOULD LIKE (PER REPORTS) TO USE THE MONEY IN THEIR OWN AREAS -- AND ARE CLAIMING THEY DONT HAVE ENOUGH
Millionday: THIS WILL NOT GO OVER WELL AND WILL BE ADDRESSED IM SURE -- WE WILL HAVE MORE NEWS ON THIS
CoolChic: If there is liquidity, then they don't need to rv?
Millionday: NO THE LIQUIDITY MEANS THAT THEY HAVE ENOUGH TO BEGIN THEIR OWN DEVELOPMENT THROUGH LOANS CONTRACTS ETC
August: My understanding is that the budget has been printed in the Gazette, which means that it's funded, but it hasn't been opened because of a lack of liquidity, therefore, there is an official investigation. You're saying we don't have enough ink yet until tonight. Is this correct, and thanks for clarity.
Millionday: I AM SAYING THAT THEY ARE ARGUING ABOUT IT IN THE MEDIA -- WE WILL WAIT AND SEE WHAT WE SEE IN MORE NEWS
Millionday: IF THIS IS WHAT THE PROBLEM IS IT WILL BE ALL OVER THE NEWS
lucybxo: I feel that this is all very positive pressure and a good thing. In theory, when the Kurds use their voice, they are speaking for us, too. All great if you ask me. Do you agree? and THANK YOU FOR ALL YOU DO and for your PATIENCE. Exciting times !
Millionday: I AGREE -- THEY ARE PUTTING PRESSURE ON NOW SO THAT THE IRAQI FEDERAL GOV MOVES FORWARD -- THE THING IS THAT THEY ARE EXPECTED BY ALL CONTRACTORS AND ALL INVESTORS TO MOVE FORWARD ---
crank7: Alawi is agreeing w/ this "lacking in funds?" RE: Paying Kurds??
Millionday: I DONT KNOW WHAT ALLAWI IS SAYING AT THIS POINT
crank7: He is one of the Presidents........
Millionday: I AGREE THAT ALLAWI IS PROBABLY IN MANY MEETINGS AND NEWS WILL BE OUT WITH HIS COMMENTS TO THIS
Millionday: HE HAS NOT RELEASED A STATEMENT HOWEVER NOT ONE THAT I HAVE SEEN
Millionday: THE PICTURE SHOWS A FROWN LOL
Papatom: His fries were cold!
Bentley: It would seem that with all the trouble in the North with ISIS, it would be a smart thing to pay the Kurds. They would then have good reason to clean house up there. They are quite capable fighters and could secure the Syrian border.
Millionday: GOOD POINT -- THEY NEED TO HAVE FUNDS FOR THEIR TROOPS -- THIS MEETING IS ABOUT ALL DEVELOPMENT AND I DONT SEE IT AS A PROBLEM -- I SEE IT AS A UNIFIED GOV AND THE MEETING THAT SHOULD HAPPEN
Millionday: IT SHOULD COME OUT TO BE A GREAT MEETING -- WE HAVE NO REASON TO THINK THAT IT IS NOT -- THEY HAVE BEEN RUSHING FORWARD WITH ALL THEY HAVE –
AND SIGNING CONTRACTS AND RUSHING WITH ALL THEY HAVE TO DO –
THEY ARE PREPARING FOR THE NATIONAL RECONCILIATION CONFERENCE AS WELL –
SO WE WILL SEE WHAT THEY COME OUT WITH IN THE PRESS STATEMENT THAT SHOULD FOLLOW THIS MEETING
Kountryway: Have you seen where Iraq has granted Pakistan 5,000 visas a month for visiting Holy Sites (tourism beginning?)
Millionday: I HAVE NOT SEEN THAT BUT HAVE SEEN THEY ARE HAVING A MEETING TO DECIDE ON THE COST OF THE VISAS AND THEN NO ANSWER CAME OUT
Millionday: IT SEEMS LIKE WE ARE WAITING ON RESOLVE FOR ALOT OF THINGS
Millionday: WE WILL SEE EVERYONE TONIGHT AT 730 EST AT NEWSTIME