I saw a quote from Kaperoni on Dinar Guru that mystified me, then a friend of mine posted the same quote on my Dinar Facebook page stating what I felt about it, that it made no sense and he questioned Kaperoni's reasoning. I know that Kaperoni seems to be respected here and BGG even welcomes him to join our chats and to sometimes share his perspective on articles. I also know that these other websites (Dinar Recaps, Dinar Guru) tend to take people's comments out of context and leave out important pieces of quotes, turning them into "sound bites." For that reason I re-post what I saw below, asking the community here, especially BGG and the MODs if they would help explain what Kaperoni means by this (Kaperoni, if you see this yourself and can tell us, that would be great!). For all intents and purposes, it looks as if Kaperoni is saying that when the RV happens we dinar investors won't have anywhere to turn to cash in because banks won't want to touch the IQD, even after it is RV'd and dealers won't know what to do with it, either. It's a strange statement since everything we've heard from all sources up until now have stated that when the RV happens, the Iraqi Dinar will cease being just an "exotic" currency and will become and internationally recognized one that can be traded as other like the Kuwaiti Dinar are traded today. Perhaps not all banks will handle it at that point, but we had been reassured that banks that currently work with foreign currencies will indeed handle the IQD after the RV. If that is so, what is the point of this Kaperoni quote? If that is not true and Kaperoni is revealing to us something we need to know, what will our options be as investors to cash in our dinars in his scenario? Here is the quote in question:
7-23-2012 Newshound Guru Kaperoni Just so you know, the dinar will not be on Forex. Its an exotic currency and the plan is for it to be bought/sold amongst central banks on an "institutional level". This process will be handled by a "Equity Fund" or similar type ECM (Equity Capital Market). All will be disclosed publicly in Sept- IMO. The impact is going to be watching how this plays out. Cash in, whom, and how is still not fully known. Banks are probably not going to be involved on an end user (us) level as they do not want to take the risk or deal with validation/authentication of dinar. Most of the dinar dealers as well have no idea of this plan and will be effected once the RV occurs.
BGG, MODs, others, please reply and assist with this. Thank you!
Kaperoni says, according to this post, that it is "the plan" to do this with the currency, limiting it to central banks (thereby leaving us investors out in the cold?) My question is, how can they do this? As I have said to others, the Iraqi Dinar is a CURRENCY, as the US Dollar is a currency. When it is revalued, it will be an international currency. It will raise the value of the dinar in Iraq and worldwide. To suggest that "only" central banks will be allowed to trade it once it RVs, isn't that as ridiculous as the gurus who claim the "tier system" or the "one rate in Iraq, another rate everywhere else" nonsense? From what I understand, when a currency's value changes it affects that currency everywhere and cannot be limited to any particular area or group. A redenomination would mean that this currency loses its value when another comes into use, but most say this is not a possibility, based on statements out of the CBI itself. Saying that this is "the plan" makes it sound like a conspiracy outside of articles and news, a hush-hush secret plan that is only known by people in certain circles and available only by intel. Is that what this is, or are there articles to back up such a statement? I do not mean to be a pain in the neck about this, but statements such as these are potentially as demoralizing to the Iraqi investor as the LOP theory itself. It is just as bad to say that when the time comes we won't be able to cash in because of special rules as it is to say that they'd lop off the zeros and leave us with currency that is worth about the same as what we originally paid for.
Last edited by DinarGroupie; 07-24-2012 at 01:32 PM.
Kap is saying that the CBI will require banks to sign onto and be part of an "Equity Corporation"
and that they will have a contract wih the CBI.
So Wells Fargo may or may not choose to sign up.
Chase may or may not choose to sign up. He did NOT say that it would be limited to Central Banks.
Anyone who signs up will have a contract..
will be required to verify the dinar they take in,
and will be responsible for any countrfeit they take in.
They will most likely be required t have a De La Rue machine...
though Kap siad he can't say that for sure.
Kap further stated that this system WILL be very advantageous to us Dinarians...
as Central Banks around the world bid the price up..
he says it will NOT be on Forex.
He did say many Dealers MAY or may not be allowed to participate.
He asserts that there will be no contract signed until September 15th...
but expects that then we will see a flurry of activity.
Really .. you should read Kaps entire chat.. not just a sound bite off of the
joke of a site - Dinar Guru.
Anyone else who read the chat - please post your own appraisel of what the man said. Please.
Last edited by BlueyesinLevis; 07-26-2012 at 12:20 AM.
From Kaps site.
By BOB, the site administrator-
I am going to chime in and defend Kap.
1. International currency exchange rate spreads vary now from 2-8% for currencies that are proven. If a bank looked at the dinar, which is an exotic currency, the spread surely would be substantial.
2. The dinar will not be on Forex or any other public exchange. It must free float for that to happen. And from Kap's own chats, the CBI has stated they will control the pricing of the dinar. That is a managed float. Therefore, Forex is out. And as well, shoot holes in all the rumor gurus who constantly talk about Forex.
3. If the dinar is going to Central Banks, the industry would need a Market Maker for this to occur. If Kap is correct, and I think he is, this Market Maker will dictate the rules.
4. Repatriation of currency through substantial business dealings is often different then consumer exchanges. In this case, it is clear the rules and processes will become more laxed as time passes. If you expect a quick cash out, you will more than likely will have limited options.
I think what Kap is trying to do here is open everyone's eyes a bit. Because we appear close to something happening, it is time to explore the reality of what is about to come next.
Last edited by BlueyesinLevis; 07-26-2012 at 12:39 AM.
Seems like to me all DinarGroupie asked was if someone could shed some light on what Kap was talking about in his chat.
Now I read the chat and I am wondering where this new found information is coming from, as it seems to me to be a 180 degree from much of what Kap has said in the past? Now I know this is my first post here but I have been following this for years now, I honestly am wondering why this is the first time Kap has brought this up? Are there any articles or press releases by the CBI/Dr. Shabibi that back up this theory? I personally have never run across any in the time I have been invested and trying to follow the news and events taking place in this investment. If this is a sound theory as to a possible Post-RV process as to what will happen then there should be supporting data to back it up. All many people would like is to see supporting information not just go off of what someones opinion is, thus why many people have come to enjoy what BBG and other similar people have to say on the "Dinar" matter.
misterdc, you caught what I was saying perfectly. I wanted clarification of what Kap meant, and I too noticed that it is something he has never said before. For that matter, I don't believe even BGG or Poppy3 have either. In fact, Poppy3, please correct me if I misquote you and you are reading this too, but I seemed to notice that Poppy3 came out pretty strongly opposed to the notion of this not being on Forex, which means it isn't only the "goofy" gurus that believe otherwise, but wise men whom we trust right here in this forum who hold a different opinion than Kap's. BlueyesinLevis, I hadn't been able to read Kap's whole statement because I don't belong to his forum, so the best I had to work off of is what came out in Dinar Guru, and I had already admitted that what they wrote was probably just a "sound bite." Still, if Kap was saying that banks and dealers were probably not going to cash in the currency after the RV (which is what the quote said), and it was being kept to the central banks, how in the world are we investors supposed to cash ours in? Even you admitted, sir, that it may not be "easy" for us to do so. I agree that we should not run out and be the first to cash in. All kinds of people suggest that too. It's better to see how it plays out the first day or two and learn from the mistakes of others. On the other hand, some of us have needs that need to be met sooner rather than later, and cannot afford to wait too long, so I hope there is at least some avenue to cash in some dinars, even if just enough to tide us over for a bit. I think it is a question that several of us wanted to know the answer to, and we have every right to ask it. Especially, like misterdc said, what does Kap have to back up these kind of statements? We're not supposed to believe the others who tell us about blinking screens and flying 747s, and rightly so. This goes for others who make claims that are out of the ordinary, at least in my mind. I think others feel as I do too. These last statements are not directed to misterdc (thank you for what you said, sir!) but to BlueyesinLevis whom I have nothing but respect for, I want to say, just explaining my position on this.
As far as cash out/exchange...
if it is the way Kap says...
it might be pretty expensive at first (bank spread)
and then with time it will become more familiar and run of the mill
the Central Banks around the world will step up demand..
the rate will rise... which will cover the bank ( Exchange) spread
it will become .... more"lax" .... the way Bob put it.
But hey.. Who knows? It is just one more of many theories at this point.
IF.. big IF.. it works out to be like Kap says..
understanding it is a key to
-staying calm as it happens.
-working the program to the best of our abilities.
-maximizing the return on the investment.