Eagle1968 : Good Morning Family & Blessings to everyone.....If someone can help this simple Cajun understand Id appreciate it.
Last night on the call Nova said I believe these were his words " don't use new currency to buy dinosaurs". Im hoping not to misquote him.
My reason is this...simply put what will the be the best way of paying bills once the rv goes live? It seems to me you would have to exchange dinar for dollars to pay your bills. I think this is what was meant, but Im really not sure.
Just trying to understand all of this & do what is right...Nova or anyone, thanks for your help
BulldogFord65 : If I may weigh in on Nova's comments with my personal opinion, my understanding of what Nova said last night is to take care how much we exchange into USD.
I believe we all know what the people we keep sending to Washington are doing with our USD -- they are driving the actual value out of it with reckless printing, artificial interest rates, dangerous monetary policies, addiction to spending on credit and suffocating debt.
The USD is a fiat currency, the actual value is far less than the exchange rate. Do we see anything to indicate this behavior will change?
Even if we the people clean house and exchange our government, we will still have a sick USD that will need time to recover. In this way, the USD is a dinosaur.
Global conditions are becoming increasingly adverse to the USD, and without systemic change and decades of discipline, the USD may become extinct.
So, is the USD a good investment? We each need to evaluate our individual circumstances, consult with our financial professionals and take it to our Father in Heaven in prayer.
To put it in an example, if I have $10,000 to invest in a business venture, would it be wise to invest in a company that makes VCR's or a company that makes DVD players?
While most of us probably have a VCR in our homes, we all know they are becoming extinct. Think vinyl record, 8-track tape, cassette tape.... We all have USD's, but that does not automatically make the USD a wise investment for the future.
If I may share a personal perspective, I am not thinking about "exchanging" my currency -- I am thinking about what am I "buying" with my currency. While this may be splitting hairs, when I think of exchanging, it's a conversion, one currency for another.
When I think of a purchase -- for what am I giving up my currency -- my thoughts shift. Absolutely I will buy USD's with my IQD to become debt free. Our banks settle in USD, I must pay in USD. However, beyond what I need to become debt free, how much more USD do I really want to buy?
If I believe that the IQD will increase in value or remain stable in value over the coming months or years, and I believe the USD will decline in value, why would I purchase USD?
Would it not make sense to hold the IQD or diversify into other currencies whose value is increasing, or at least remaining stable with actual rate that reflects its asset backing? Why would I want to buy more USD than I need to pay off my debts and have a reasonable amount for daily expenses and emergency?
If you have 500,000 IQD and you only need to buy 50,000 IQD-worth of USD to be debt free and have a reasonable bank account for daily expenses, why spend the remaining 450,000 IQD buying USD?
Why buy something that is declining in value? Why invest in a dinosaur? I believe this is the question that we each need to consider.
Our personal circumstances are different, and our strategies will need to fit our personal needs, but before using all of our IQD to buy USD, we need to give serious thought.
If you have 6 months left on your mortgage or car payment, does it make sense to keep paying out of your salary and save that IQD as it climbs in value? Maybe so. If you are one house payment away from defaulting, does it make sense to buy USD and pay off your mortgage, probably so.
We each just need to think carefully about what are we giving up, buying, exchanging our IQD for, and it is the best use of our investment long term. BulldogFord65
wonlady : Thank you, Bulldogford for that answer! I do have another question which is related.......So if we are going to purchase property with our RV, can we just use enough dinar for the purchase?
Instead of exchanging dinar for USD, we just take enough dinar in to cover the purchase and exchange" it for the purchase of the property? Hope I am saying this right..think that would work?
BulldogFord65: Hi Winlady! Not to be evasive, however that's something you should consult about with a financial professional. We can exchange or purchase USD any time for anything, it's the for what, when and how that need consideration, IMO.
Recalling something else Nova said last night, (paraphrasing) it's not always good to do business debt free. I deal with this in my job every day, our company uses loans to preserve our cash liquidity and capital.
In our personal finances, it may make sense to take out a loan to purchase property if the interest (cost of money) is less than the anticipated increase in the IQD or other investment -- save the asset that is increasing in value at a higher rate than the cost of money (interest) on a loan.
At times it's cheaper to use the bank's money than our own money, as long as we're not over-extending ourselves. I am sure there a more than a few financial professionals out there groaning over my explanation!!! Please jump in -- a financial expert I am NOT!!!!
There are other considerations aside from the currency exchange aspect that are just as important, if not more important: whether to purchase land or other things in your name, or is it better to set up a corporation, trust or other vehicle which actually owns the property or asset?
It's not just the currency we will need to protect, but also our personal liability. For example, if you are familiar with Robert Kyosaki of "Rich Dad, Poor Dad" fame, long story short, he manages his wealth through corporations, and when someone sued him, he declared bankruptcy of the corporation that was sued, however none of Kyosaki's personal assets (house, cars, etc) were touched.
He personally is not bankrupt, only the corporation. You can read a bit about it here:
When considering purchasing anything, IMO it's wise to consider not only what currency to use, but what vehicles or instruments will avoid the most taxation, limit personal liability, protect personal identity, and preserve the most valuable segments of our investment.
(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.)