The government has been underwater so long, it has gills…
But despite their desperate condition, the Feds still have a few tricks up their sleeve that will allow them to keep “kicking the can” down the road.
One of the gimmicks they’ve cooked up to stave the wolves off is becoming more and more evident: Iraqi Dinar Revaluation.
The dinar collapsed after the United States invaded Iraq and toppled Saddam. Prior to U.S. invasion, the Iraqi currency was trading over USD3 to one Iraqi dinar on the strength of the country’s massive oil industry.
After the collapse, the dinar was trading significantly lower. At one point, a single dollar purchased one thousand Iraqi dinar.
Speculators began to take positions in 2004 hoping someday, the dinar would recover and the UN economic sanctions would be lifted, allowing the currency to be revalued. Since then, there has been much speculation regarding how and when that would occur.
But here’s the really interesting part…
The U.S. Government is the Largest Holder of Iraqi Dinar Outside of Iraq
Does that really come as a surprise?
The U.S. Treasury does not officially list the Iraqi dinar as part of the country’s forex reserves.
New Iraqi Dinar
However, the Treasure does say it did an initial currency swap with Iraq to fund their government and Ministries…
Exactly how many dinars were traded is not mentioned, but it does make reference to “billions of U.S. dollars” traded to Iraq.
About two months ago, Iraqi dinars could no longer be purchased; the recent Dodd Frank bill appears to have legislation related to the revaluation of a foreign currency and preventing mass hysteria.
From what I have been able to gather, it sounds like this plan was originally put together by George Bush, Dick Cheney, Alan Greenspan, and others years ago as a way for the U.S. government to be repaid (read: get kickbacks) for their efforts in Iraq.
Experts speculate the U.S. government received nearly 4 trillion Iraqi dinars at an exchange rate of 4,000 dinar to USD1.
If this is even close to true — and the UN allows Iraq to revalue their currency up to USD1: one Iraqi dinar — the U.S. government would stand to profit in trillions… as would anyone else who speculated on the dinar over the years.
Bush’s statement, “This is a war that will pay for itself,” will be true 10 times over.
Check out how the House of Saud got taken for $267 billion of their own crude oil.