Thread: Iraq/Dinar News. 09/05 to 01/14/07

[QUOTE=tiffany]Well folks...I've called around to a few of the BIG CPA's in my area...and have gotten a few opinions! ARRGGH!

One said that if I exchange foreign currency and deposit it into a bank account, then I am responsible for whatever the bank states on the 1099 form that they send me at the end of the year...meaning any interest made on the accounts. (REALLY LIKE THIS OPINION! lol! )



how do u do that so ur telling me if i exchange my dinar and put it in the bank right away at the end of the year instead of taxing all of the dinar they only can tax the intrest i get off it?????

Interesting,

Yes, it is amazing how many different opinions we here from these so called professionals, but in my experience, as long as you claim it as income you will be safe regardless. It is when you do not claim it that you have to worry. LOL

Seriously, there are many strategies we can use to insulate ourselves from paying more than we have to, but not exchanging it all out at once is the first and most important thing I recommend. As we will all want to eliminate our debts as a first goal, and purchase a few luxuries would be in line, so this is where it gets interesting.

Capital gains are different depending on short or long term, so it is always better to exchange out at a limit per year based on what you actually need, not all of your dinar. There are many other strategies to use to limit your tax obligations, and investing your dinar directly is only one strategy which will avoid initial excessive tax liability, so slow down folks, we will all help in contributing the best strategies.

Good luck to all, Mike

I visited Bank of America branch manager also... she told me.. when it pegs they will check the bills physically... give credit for the current exchange rate and post to our acct and will clear by midnight.. Then the bills are sent to their Currency location and checked for authenticity...(takes 1-2 days) if theres no problem they won't contact us.. if there is a problem then they contact... I asked how could they give us credit in our acct. if there is a chance the currency checkers say theres a problem.. she said because we are a current customer it is a courtesy to put it in our accts and "they" take that risk... I mentioned we have a black lite and have checked it ourselves and she said they do also... so taking the step to check each bill with the light in her presence will also go along way in establishing its authenticity...If we use this
procedure.. we will start with a few bills at a time to test the system... But I am still trying to find a bank that has the De La Rue machine for on the spot check... just want to know all options..

Originally Posted by sholmes21

how do u do that so ur telling me if i exchange my dinar and put it in the bank right away at the end of the year instead of taxing all of the dinar they only can tax the intrest i get off it?????

What is meant by this is lets say you cash in after January 1st 07. Well your Taxes are not do until April 15th 08. So what My father would do is put the taxes do on the cash cashed in at Jan. in a % bearing account until lets say April 15th 08 and file for a exstention.

Then pay his taxes from the 07 year & do the same for the % he earned on the Taxes. Bottom line he earned on the Taxes so he has to pay Taxes on the Taxes he earned from. Get it.

Originally Posted by ezcash

I visited Bank of America branch manager also... she told me.. when it pegs they will check the bills physically... give credit for the current exchange rate and post to our acct and will clear by midnight.. Then the bills are sent to their Currency location and checked for authenticity...(takes 1-2 days) if theres no problem they won't contact us.. if there is a problem then they contact... I asked how could they give us credit in our acct. if there is a chance the currency checkers say theres a problem.. she said because we are a current customer it is a courtesy to put it in our accts and "they" take that risk... I mentioned we have a black lite and have checked it ourselves and she said they do also... so taking the step to check each bill with the light in her presence will also go along way in establishing its authenticity...If we use this
procedure.. we will start with a few bills at a time to test the system... But I am still trying to find a bank that has the De La Rue machine for on the spot check... just want to know all options..

Good point. It is like a cashers check getting cashed at your bank. They will credit your account yes. But it still takes up to 14 days for that Cashers Check to clear the Bank. If it doesnt clear the Bank do to counterfit Cashers Check then your account will be debited the amount of the Cashers Checks orginal amount. I know this for a fact. I have cashed a counterfit Cashers Check before. RodneyEwalt can bouch for this. It Happens.

Originally Posted by abbey56

Hi,

For those that live in the U.K. and bank with Nat West, I happened to be in there this afternoon and ask re security if they had safe deposit boxes as i wished to make my dinars safe in the future having exchanged one third on revalue, they said that they would hold any sealed packages for a cost of £10.00 per year.

I would also like to bring up a valid point about Sare Deposit Boxes at your Bank. They are pretected against anyone except the IRS. If you owe taxes from the past and they freeze your assets, this includes your Safe Deposit Box. It has happen to a family freind of ours in the past. Best advise pay your taxes. And you will have no problems. Or avoid them the leagal way.

Originally Posted by neno

What is meant by this is lets say you cash in after January 1st 07. Well your Taxes are not do until April 15th 08. So what My father would do is put the taxes do on the cash cashed in at Jan. in a % bearing account until lets say April 15th 08 and file for a exstention.

Then pay his taxes from the 07 year & do the same for the % he earned on the Taxes. Bottom line he earned on the Taxes so he has to pay Taxes on the Taxes he earned from. Get it.

Don't forget that you must make quarterly estimated tax payments for large realized capital gains or you may end up with a hefty penalty at tax time!!

Originally Posted by Offshore-Wealth.com

Interesting,

Yes, it is amazing how many different opinions we here from these so called professionals, but in my experience, as long as you claim it as income you will be safe regardless. It is when you do not claim it that you have to worry. LOL

Seriously, there are many strategies we can use to insulate ourselves from paying more than we have to, but not exchanging it all out at once is the first and most important thing I recommend. As we will all want to eliminate our debts as a first goal, and purchase a few luxuries would be in line, so this is where it gets interesting.

Capital gains are different depending on short or long term, so it is always better to exchange out at a limit per year based on what you actually need, not all of your dinar. There are many other strategies to use to limit your tax obligations, and investing your dinar directly is only one strategy which will avoid initial excessive tax liability, so slow down folks, we will all help in contributing the best strategies.

Good luck to all, Mike

Best Advice yet. Mike is "BacK In The Saddle Again". Everyone that wants the most for their Dinar experience should listen right here to this guy. He has been there and done that. Not to take credit from anyone else of experience. But this is the best approach. Just Get out of debt and use the stadegy.

Make it last. Remember this is just the first revalue coming up. And their Goal is back to 3:1 plus. This Thread might just keep growing for the next 4 years. Might need some more BandWith thow.

7/21/2006 8:00:00 AM

To: National and International Desk, Opinion Editors

Contact: James Crum of the Iraq Project and Contracting Office, 703-696-5158

WASHINGTON, July 21 /U.S. Newswire/ -- Following is an op-ed by James Crum, director of the Iraq Project and Contracting Office:

Prior to Saddam Hussein's oppressive regime, Iraq was the second richest country in the Persian Gulf region. However, after 30 years of willful neglect and treasury-draining regional wars, Iraq's once modern infrastructure lay in ruin.

For the past three years solid progress has been made to rebuild Iraq's critical infrastructure. All of Iraq's industrial sectors -- oil, water, electrical power, education, agriculture, buildings and facilities, and security -- have benefited from the United States' investment in their economic revitalization and reconstruction. There have been setbacks along the way caused by corruption and terrorism, but the major problem for stabilizing public services in Iraq has been the decrepit state of the infrastructure that resulted from three decades of neglect by Saddam Hussein.

The oil industry is now producing above 2002 levels. Substantial investments have been made in the entire oil infrastructure system to help provide long-term stability, such as improvements to oil wells, pipelines, and oil-refinement facilities. U.S. assistance has significantly improved water and sewage services for Iraqis. In April 2003, when the U.S. Army Corps of Engineers hit the ground, it was clear that many of the country's water treatment plants were in serious disrepair and that many Iraqis received water that was contaminated or inadequately treated. Since that time, completed U.S projects have increased potable water availability to an estimated 4.2 million additional residents and an estimated 5.1 million additional people have access to sewage treatment. These numbers will continue to grow as more water treatment facilities become operational.

U.S. projects have added or restored some 2,700 Megawatts of electrical generation capacity to Iraq's electrical grid. Peak electricity generation in Iraq is currently around 4,900 megawatts compared to an average of 4,300 in 2002. In the pre- war period, Baghdad received a greater share of electricity at the expense of the rest of the country. Power is more equitably distributed today, and on average Iraqis outside of Baghdad receive more hours of power than before the war. The residents around the country are receiving 12 to 14 hours of electricity, and those in and around Baghdad are receiving up to 8 hours of electrical power during the summer's high demand period.

More significantly, hundreds of thousands of Iraqi schoolchildren are now attending new and refurbished schools while learning through a revamped curriculum. Hundreds of law enforcement and border police facilities have been built. The new Iraqi Army is also being trained in an equally new environment.

One of the key elements that enables Iraq to stand on its own is a strong and growing workforce. Since our arrival in 2003, there have been 30,000 new businesses created -- many of these are small businesses and micro-enterprises. This is wonderful. The industry with the fastest job growth is the agricultural sector, particularly date palms and wheat, which have become Iraq's largest export crops.

The leaders of the Iraq reconstruction effort are often asked by the media "Are we making a difference in the life of the average Iraqi?" Without a doubt the answer is yes, but the average Iraqi on the street still risks his life or his family's wellbeing to say so. The proof is in their actions: Iraqi mothers and fathers are sending their children to new schools, they are enjoying clean water and better sanitation in the streets, they are demanding air conditioners and other appliances (making it difficult for power generation and distribution improvements to keep up). Iraqis are enjoying the widespread use of cell phones and can now call an ambulance or police car in many areas when they need emergency services. But most important, they have a government, democratically elected and beginning to act as a legislative body.

Another frequent question is how corruption and terrorism affect the rebuilding effort. Corruption was fed and bred throughout the Saddam era, resulting in a work and social climate that was rife with poor operating practices. This climate has begun to change as a result of the anti-corruption commissions, both in and out of their government, and the commission on public integrity.

In sum, the numbers of completed projects throughout Iraq -- including large and complex oil, water, and electrical plants -- has been truly staggering. More than 3,500 projects have been started; more than 2,800 of these have been completed and the remainder under construction.

This rebuilding program is an effort to build a foundation for freedom for the Iraqis. The original goal was not to rebuild their whole society, but rather to provide a fresh start for them to continue to build upon. The future is in their hands.

James Crum, P. E. Director of the Iraq Project and Contracting Office / Washington, D.C. ASA(ALT) Department of the Army

http://releases.usnewswire.com/GetRelease.asp?id=69588

Pretty good read taken from another forum.

Play this fun and exciting game!!! You ?slot? Iraq into the place where you think the REAL VALUE of the IQD should be once security is in place!!!
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Information Links:
Some GDP figures were culled from this link other sources will estimate higher or lower GDPs for each country: http://www.nationmaster.com/graph-T/eco_gdp
http://www.energyinst.org.uk/education/natural/3.htm
http://www.oanda.com/convert/classic (All currency values were checked Pre Israel Hezbollah war.)
https://www.cia.gov/cia/publications...ook/index.html

Kuwait: 1 KDinar = 3.4 USD
Land Mass: 17,818 square kilometers
Population: 2.274 million
Government Type: Constitutional monarchy (stable)
GDP: $48 billion (2006 est.)
Assets: 13,300 oil reserves in million tonnes. Runs 2.0 million barrels per day (mbd) capacity is 2.5 mbd. Ships oil and refinined material.
Agriculture and livestock do not play a significant role in the economy of Kuwait as it is a very arid nation with a shortage of fresh water.
OPEC Member

Bahrain: 1 Bahrain Dinars = 2.7 USD
Land Mass: 711.9 square kilometers (among 36 islands)
Population: 700,000
Government Type: Monarchy (stable)
GDP: $13.01 billion (2006 est.)
Assets: Dwindling oil reserves but now has a thriving oil refinary industry. Is a model of modern developement in the Middle East. Has a strong tourism economy.

Oman: 1 ORial = 2.6 USD
Land Mass: 300,000 square kilometers
Population: 2,533,389
Government Type: Monarchy (stable)
GDP: $38.09 billion (2006 est.)
Assets: 700 oil reserves in million tonnes.
Major exports include petroleum, reexports, fish, metals, textiles. Very limited natural fresh water resources.

Jordan: 1 JDinar = 1.4 USD
Land Mass: 92,300 sq km
Population: 5,759,732
Government Type: Constitutional Monarchy (stable)
GDP: $25.5 billion (2006 est.)
Assets: Limited fresh water resources. Natural resources include phosphates, potash, shale oil.

Turkey: 1 New Lira = .74 USD
Land Mass:780,580 sq km
Population: 69,660,559
Government Type: Republican Parliamentary Democracy (stable)
GDP: $508.7 billion (2006 est.)
Assets: Coal, iron ore, copper, chromium, antimony, mercury, gold, barite, borate, celestite (strontium), emery, feldspar, limestone, magnesite, marble, perlite, pumice, pyrites (sulfur), clay, arable land, hydropower

Libya: 1 (LYD) = .73 USD
Land Mass: 1,759,540 sq km
Population: 5,765,563
Government Type: Military Dictatorship (stable)
GDP: $37.48 billion (2006 est.)
Assets: 1/4 GDP is from oil. Petroleum, iron and steel, food processing, textiles, handicrafts, cement, wheat, barley, olives, dates, citrus, vegetables, peanuts, soybeans; cattle. 3,900 oil reserves in million tonnes.
OPEC Member

Saudi Arabia: 1 SARiyal = .27 USD
Land Mass: 1,960,582 sq km
Population: 26,417,599
Government Type: Monarchy (stable)
GDP: $310.2 billion (2006 est.)
Assets: 35,700 oil reserves in million tonnes. Natural resources include petroleum, natural gas, iron ore, gold, copper. Severe lack of fresh water resources an extremely arid environment.
OPEC Member

Qatar: 1 QRiyal = .27 USD
Land Mass: 11,437 sq km
Population: 863,051
Government Type: Traditional Monarchy (stable)
GDP: $19.49 billion (2006 est.)
Assets: Significant Oil and Natural Gas reserves third largest in the World. Limited natural fresh water resources are increasing dependence on large-scale desalination facilities.
OPEC Member

UAE: 1 Dirham = .27 USD
Land Mass: 82,880 sq km
Population: 2,563,212
Government Type: Federation (stabe)
GDP: $63.67 billion (2006 est.)
Assets: Petrolium, Natural Gas. 2.5 million bbl/day A vital transit point for world crude oil. Lack of natural freshwater resources compensated by desalination plants; 12,700 oil reserves in million tonnes.
OPEC Member

Israel: 1 New Shekel = .22 USD
Land Mass: 20,770 sq km
Population: 6,276,883
Government Type: Parliamentary Democracy (stable)
GDP: $129 billion (2006 est.)
Assets:timber, potash, copper ore, natural gas, phosphate rock, magnesium bromide, clays, sand

Egypt: 1 EPound = .17 USD
Land Mass: 1,001,450 sq km
Population: 77,505,756
Government Type: Republic (stable)
GDP: $316.3 billion (2006 est.)
Assets: Crude oil and petroleum products, cotton, textiles, metal products, chemicals. Strained water sources mostly the Nile River regions.

Afghanistan: 1 Afghanis = .023 USD
Land Mass: 647,500 sq km
Population: 29,928,987 (July 2006 est.)
Government Type: Islamic republic (semi-stable)
GDP: $21.5 billion (2006 est.)
Assets: Land locked one of the lowest standard of living levels in the World. Poppy and opium cultivation may be equal to 1/3 of the national GDP. Fruits and nuts, handwoven carpets, wool, cotton, hides and pelts, precious and semi-precious gems. Oil pipeline being built through Afghanistan.

India: 1 IRupees = .023 USD
Land Mass: 3,287,590 sq km
Population: 1,080,264,388 (July 2006 est.)
Government Type: Federal Republic (stable)
GDP: $3.319 trillion (2006 est.)
Assets: Textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures, software. 800 oil reserves in million tonnes.

Syria: 1 SYP = .019 USD
Land Mass: 185,180 sq km
Population: 18,448,752
Government Type: Republic under military regime since March 1963 (stable)
GDP: $60.44 billion (2006 est.)
Assets: Petroleum, textiles, food processing, beverages, tobacco, phosphate rock mining. Agriculture. Water assets but may be pressured by large population growths.

Pakistan: 1 PRupee = .017 USD
Land Mass: 803,940 sq km
Population: 162,419,946
Government Type: Federal Republic (semi-stable)
GDP: $347.3 billion (2006 est.)
Assets: Cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs, textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp.

Yemen: 1 YER = .005 USD
Land Mass: 527,970 sq km
Population: 21,456,188 (July 2006 est.)
Government Type: Republic
GDP: $19.37 billion (2006 est.)
Assets: Petroleum, fish, rock salt, marble; small deposits of coal, gold, lead, nickel, and copper; fertile soil in west, grain, fruits, vegetables, pulses, qat, coffee, cotton; dairy products, livestock (sheep, goats, cattle, camels), poultry; fish, very limited natural fresh water resources; inadequate supplies of potable water; overgrazing; soil erosion; desertification

Sudan: 1SDinar = .004 USD
Land Mass: 2,505,810 sq km
Population: 40,187,486 (July 2006 est.)
Government Type: Authoritarian Regime (unstable)
GDP: $76.19 billion (2006 est.)
Assets: Petroleum; small reserves of iron ore, copper, chromium ore, zinc, tungsten, mica, silver, gold, hydropower, cotton, groundnuts (peanuts), sorghum, millet, wheat, gum arabic, sugarcane, cassava (tapioca), mangos, papaya, bananas, sweet potatoes, sesame; sheep, livestock.

Lebanon: 1 LPound = .0007 USD
Land Mass: 10,400 sq km
Population: 3,826,018 (July 2006 est.)
Government Type: Republic (semi-stable)
GDP: $18.83 billion (2006 est.)
Assets: Banking, food processing, jewelry, cement, textiles, mineral and chemical products, wood and furniture products, oil refining, metal fabricating.
Citrus, grapes, tomatoes, apples, vegetables, potatoes, olives, tobacco; sheep, goats

Iraq: 1 IDinar = .0007 USD
Land Mass: 437,072 sq km
Population: 26,074,906
Government Type: The Iraqi Interim Government (IG) was appointed on 1 June 2004. Interim Government Constitutional Parlimentary (Federated) Democracy. (semi-stable)
GDP: In 2004, the Iraqi GDP was $25.5 billion. 2005 projections were $29.3 billion. $54.4 billion gdp (2006 est.)
Assets: Petroleum, natural gas, phosphates, sulfur, large agricultural potentia (wheat, barley, rice, vegetables, dates, cotton; cattle, sheep, poultry). 13,400 oil reserves in million tonnes. 10% of potential reserves have been explored. IMF projections 2 to 2.5 mbpd for 2005-2006.
Before U.S.-led forces defeated Saddam Hussein, whose government also heavily subsidized gas prices for consumers, average annual oil production in Iraq was 2.5 million barrels per day. Iraq has large water sources many were dammed up and drained by the dictatorship of Saddam Hussein.
OPEC Member

Iran: 1 IRial = .0001 USD
Land Mass: 1.648 million sq km
Population: 68,017,860 (July 2006 est.)
Government Type: Theocratic Republic (semi-stable)
GDP: 516.7 billion (2006 est.)
Assets: Petroleum, petrochemicals, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), metal fabrication, armaments, wheat, rice, other grains, sugar beets, fruits, nuts, cotton; dairy products, wool; caviar. 12,000 oil reserves in million tonnes.
OPEC Member