Revaluing the dinar... someone please help me grasp this

[TomFraser]

Recently someone told me that the best investment I can make is to purchase 1000 US dollars worth of Iraqi dinars, and wait for them to be revalued, at which point they will be worth almost as much as the USD, multiplying my initial 1000 by 1000 when I sold my newly revalued dinars.

I have several problems with this concept, and any research I attempt leads me to websites explaining why this is good, and advertising sites to trade dinars on. I cannot find a single nonbiased website.

The first problem I have is that how can you revalue something that has no value to back it up. If everyone has millions of dinars that are worthless, how can you all the sudden say they are worth more now, everyone lower your prices? This would not work as all of the sudden everyone could afford anything and would lead to another collapse.

The next problem I have is if I purchase 1000 US dollars of dinars, and they are revalued, allowing me to sell my dinars for 1000000 US dollars wouldn't the market be flooded with dinars causing them to become worthless?

Anyone who can back either side up with legitimate research please help me out...

EDIT: one example of a site trading dinars is:

http://www.dinartrade.com/

Which leads to more problems for me. First being how can I trust I am getting a real dinar (because who the hell knows what a real one is), and who is setting the exchange rate, as I have found rates from 1000 dinars to 1 USD to 1500 dinars to 1 USD, so is someone just picking them at random, and mass producing paper to sell?

 

[SupraMario]

Its a big fucking scam...don't do it.

 

[TomFraser]

Its a big fucking scam...don't do it.

lol, I'd rather take my money and waste it in vegas... but I want to formulate good arguments against people doing it, and cannot find anything to back up my feelings stated above.

 

[Cz.]

Well if you look at a more succesful country it can make sense.
Take Japan, back in the 1970s the exchange rate was something like 350 yen to 1 US dollar, after WW2 it was probably similar to Iraq's current exhange rate. If you had a stock of yen from back then you would have a ton of money now seeing as yen is now at around 100=$1 US now.
When you take into account that Japan's economy exploded and it took several decades to do that, Iraq becomes a pretty poor investment. Do you honestly think that they're going to have money that is worth anything as long as they don't even make a blip on the economic chart?

They aren't going to "revalue" the money, even if the Iraqi government was to do that (by pegging it to the US dollar like China does), their economy has no clout and everyone else in the world would ignore it.

Now that I think about it, even if you had bought a ton of yen after WW2, you probably wouldn't have made that much money seeing as inflation would have ruined a static money investement over such a long period

In other words, don't waste your time/money.

 

[TomFraser]

Do you honestly think that they're going to have money that is worth anything as long as they don't even make a blip on the economic chart?

They aren't going to "revalue" the money, even if the Iraqi government was to do that (by pegging it to the US dollar like China does), their economy has no clout and everyone else in the world would ignore it.

I'm with you and agree with you, but for arguments sake, is it possible for Iraq's economy to grow exponentially when oil is tapped, and is being sold properly? Would this take too long?

 

[SupraMario]

I'm with you and agree with you, but for arguments sake, is it possible for Iraq's economy to grow exponentially when oil is tapped, and is being sold properly? Would this take too long?

No, because it will never go anywhere, the oil will still be bought with USD and Euro. So it won't be worth it, hell most wells are owned by foreign companies anyways.

 

[Cz.]

Look at all the other countries in the Middle East, Saudia Arabia has the largest oil reserves. Besides oil, these countries have nothing in terms of economics.