PeoplesDinar Members Theory and Opinion on ""How is it possible to invest $1000.00 for a possible return of 3.4 million dollars?"
(Dinar Recaps Note:This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers. We are NOT sure if MasterDinar's math is correct below, but will post it for discussion in a friendly manner.)
FastDriver: Good afternoon fellow Pders. My wife asked me how we get paid after the rv and how does the bank or dinar dealer get reimbursed. I know this was covered over a year or so ago but I have forgotten. Can someone give me a refresher course on this.
One more thing I did some very rough calculations on the amount of money involved just with PDers.There are 27000 members in PD. If the average amount of dinar per member is 2 million @$3.00 RV-The total is $162 billion. Assuming a 20% long term tax rate. the net is: $129 billion. That is a lot of money to put back into the economy in one form or the other. Go RV, soon we all hopeThanks for the replies: Fast
MasterDinar: 162 billion dollars, now that is a lot of money to put back into the economy...but, it is also too low. You see the tax rate is not going to be 20 percent long term capital gain...it is going to be 39.5 percent top income rate for regular income. That means about twice as much and that is just the tax windfall our government will realize...or $258 billion. Add to that all the money that will be bandied about by those who buy new cars, homes, pay off loans, buying new business and just plain ole' investing in the markets and commodities...you are probably looking at on the low side about 1/2 of a trillion dollars. That is a real stimulus...not a pork barrel laden crony slush fund that in the past masqueraded as a stimulus.
MasterDinar: Since you asked and since it was me who originally posted it...I will repost below:
Read More Link on Right
Well to start with I have been in this investment for over 9 years now and I have read and heard a lot of rumors and stories surrounding investing in the Iraqi Dinar. One of the most common questions I get from skeptics is, "how is it even possible that you can invest $1000.00 and get a return of 3.4 million dollars?" It just isn't possible they say. At first blush most would be inclined to agree with them. TonyC another poster on this board and I have pontificated upon this question many times over the past year or so... By connecting some of the dots from the rumors and stories I have heard over the past 9 years we have come up with a scenario that accounts for many of the parties involved and it appears to be a win-win-win for everyone involved that when all the pieces fall together explains completely why the revaluation of the currency is not only feasible but necessary.
My only disclaimer is that all this is conjecture and I don't have any hard facts or links to back up the theory but since this is only theoretical it really isn't necessary to document each facet.
I am open to other's comments as I would like to tweak the theory as a means to explain the veracity and practicality of the investment to the skeptics I come in contact with.
Here is how I believe this investment becomes a win-win-win for all involved.
We begin with us the investor buying a quantity of dinar...let's say for practical purposes 1 million dinar in the hopes that it will eventually revalue...let's say at 3:1 so that it fits into our current predictions here at PD.
1. Okay so, we invest $1000.00 US to purchase our 1 million dinar. The RV takes place and after we jump up and down, hit the internet to see if our dream home is still available and put our order in for our new luxury Mercedes we start to think about cashing in our dinar notes. It is quite apparent at this early stage of the game that we have emerged a big winner in the dinar sweepstakes.
2. So, how do the banks make money...well, they will cash us all out for a small premium which while it may only be 1 - 3 percent on the millions they will be cashing out it will be basically 10 to 30 thousand dollars per million this is not chump change when you add up the many millions in dinar that will eventually be cashed in.
3. So, now the bank has sitting in its vaults millions of dinar notes that it has cashed in to its customers... Of course, this reserve of Dinar notes represents a cash value in US Dollars which the bank will recover once it moves its Dinar reserve out. Who will take the Dinar off their hands? Well, the US government, of course, the Central Bank or the Federal Reserve will exchange the dinar for US Dollars already in the float.
It will become a simple accounting entry akin to moving money from one account to another. So, now the US government has possession of these dinar notes and what is it that they will do with these millions, probably billions of dinar notes...well, years ago there was mention of the US signing an agreement with Iraq to purchase oil at about $30.00 a barrel providing that they paid for it with Iraqi dinars (this is the way that the Iraqi government will recover it currency)...certainly cheap when you consider that oil sells for approximately $90.00 per barrel.
However, you must keep in mind that it only cost the Iraqi government less than $10.00 a barrel to get it out of the ground and ready for shipping. So, the US government buys oil from Iraq at a discount which it is now free to either retail within the US or to sell to secondary markets at a profit. Additionally the US Government will receive a huge tax windfall from all the investors who turn in their dinar. At 39.6 percent it will be a huge, huge stimulus package that will dwarf Obama's original stimulus and Obama's son of stimulus packages of his first term.
And, we all know what government bureaucrats love to do most..."spend other people's money". They will have a boondoggle of revenue...so, it is clear that the US government and its elected officials will be big winners. Additionally, politically, the ruling party will have the benefit of an economy that will be energized by a million new millionaires who will be spending their newly acquired cash.
4. The Iraqi Government will also be a winning participant in this event in the following manner. A. Remember the US and probably Great Britain, Russian, Chinese governments, etc...are most likely all able to purchase oil at a discounted rate...however, it isn't like Iraq is giving it away for free...they will be making a profit from selling oil at a wholesale mark-up to the various governments which they have entered into contracts with and by doing so they will recover billions of their dinar that has been purchased by out of country investors.
They will now have the triple zero currency in their hands that they are pledged to remove from the streets of Iraq. They will then turn the triple zero dinar notes over to the Central Bank of Iraq who will then release the equivalent value of "new Iraqi currency" that has dropped the zeros thereby completing the cycle and maintaining the "new value" of their currency into the Iraqi population and marketplace. B. They will now have a currency that is both tradeable and respected in the international community making them a serious participant in the world's economy. C. They will be able to attract international companies to invest in projects within their country.
5. Now, the final piece of the puzzle, the Iraqi people. These people have truly suffered and are the most deserving of all to receive the blessing that the revaluation of their currency will produce. Iraqis will now see the value of their currency increase geometrically and their purchasing and selling power for goods and services become competitive with the strongest economies in the world. Their quality of live, per capita income, financial security, etc., will put them on par with all the top countries in the world.
I know this is a long post but given where we are in this investment I thought it a good idea to look at all the pieces and truly appreciate God's wonderful plan...
How He can take care of all of us and have everyone come out a winner in single event.
This would not work if everyone was winning...yet, it is often confusing when you try to fathom how a $1000.00 investment can suddenly become 3.4 million dollars without sending the entire system into catastrophe.
I think I have for the most part rationalized my way through most of the participants...if anyone has anything to add or correct please feel free as I would like to tweak the model to represent the correct inter-relationships of all the groups involved.