Buying Iraqi currency.

[MGKrebs]

Not having a head for this sort of thing, what is the deal with buying Iraqi currency? Good for the Iraqis? Taking advantage of them? Scam?


http://www.betoniraq.com/

[Inland]

1. Clearly they are hoping for some speculative profit

Iraqi dinars are only good to buy things in Iraq, or trade for other currencies.

So unless you are going to Iraq, you don't want dinars. In fact, if you are going to Iraq, you want dollars---since dollars are the defacto currency, one reason why dinars are cheap. There's nothing backing them.

I suppose the point is that the dinar is so worthless, it's got nowhere to go but up relative to dollars, so you can repurchase more dollars in a year. But I would put it in the stock market.

Shares of United are still going for three or four bucks even though it's a certain bet the shares whill be zeroed out and made worthless in the bankruptcy. People speculate.

[TheFarseer]

2. great, so we can prop up their economy

just like our artificial economy is being propped up with massive borrowing.