Borrowing against Dinar

Hi BGG -

I heard you recently on a conference call mention that you wanted to find some time to research and offer us suggestions for plans after the RV.

I follow the dinar community closely and am puzzled that no one has brought up the idea of borrowing against our dinar instead of cashing in.

By borrowing against our dinar we do not create a taxable event and we get the benefit of any upward float of the dinar.

I have of course googled this subject and have come up empty handed. I googled foreign currency loans etc.

Its possible that it will be as easy as walking into our bank and asking for a loan, but I havent read that anywhere.

I spoke with a friend about this and he mentioned that he would prefer to use SKR's, safe keeping receipts, instead of giving his dinar to a bank as a collateral directly.

I would welcome any ideas or thoughts you may have on this subject

Thanks

Julia

Julia,

My recollection is you can't borrow using a currency as collateral - I may well be wrong.

Thanks

BGG

Have you considered using a promissory note. I have IQD in a Roth IRA. I plan on cashing out the IQD, which would not be taxable b/c it is in an IRA, deposit the funds in an IRA with a bank, and use a promissory note to access the value of the IRA. I will still make money on the IRA, the bank will make money from the note and the value of money deposited. I will set it up so that the note becomes due once I am 60 yrs old, so I can take tax free distributions from the IRA. That being said, You might be able to deposit the IQD with a bank while not converting them and doing the same sort of thing, let the bank hold the IQD and give you a note which is not taxable earnings since it is basically a loan, though not amortized. More like a balloon payment at the end.