Today the weather is not so very nice here in southern Bavaria. We have some rain and it is cool. I can begin to see some color change already in the leaves in the mountains. Fall is very near and I can feel it.
Big changes are about to happen. I can feel it in the wind.
I am afraid this post may be a bit longer than usual so I hope you don't fall asleep..lol... But I felt that at this point in time when most are getting discouraged I needed to again point out some history lessons to you.
After all the future is full of the past! I hope this helps.
I know that in the past Iraq has had several revaluations in the month of September so this seems to be an excellent month for them for this purpose. But I also have to tell you I know for a fact that the USA has been trying desperately to get this revaluation done and out to the public for exchange as quickly as they can.
There are many reasons for this and its called Global Reset.
But why is this so important and why now? Remember no global reset without this revaluation of the Iraq dinar. This currency is the base currency for the rest. It is all linked together.
Read More Link on Right
Any other currencies such as VND, IDR, WON etc,, will be rebalanced in relation to the rest of the currencies too but are just nornal revaluations (even though some might go a bit higher than normal).
You can take these into any bank any time and exchange as you would any currency left over from you european vacation or foreign trips.
Did you hear me...no rush, no 30 day time period. Do not put these funds from exchange in the same accounts used for Iraq dinar exchange funds. Keep them all separate. It is important.
So why is this revaluation so important?
What does being a base currency mean exactly?
First let me address why the IQD revaluation is important
You have to know some facts in order to understand what is happening here now. Going back to 2010. When Iraq announced it finally formed its government (the term GOI) we as investors began celebrating too because we thought the RV was very close at hand.
This was a benchmark we knew would bring us our cash. But what happened? Why did it not RV in 2010?
It did not RV is 2010 for a couple main reasons:
1) Maliki decided he was not going to play along and be part of the process, instead he decided to take on dictatorship attitude. He refused to carry out agreements made that would share his power and actually complete the government. Instead of having an actuall completed gov't he seated over 3,000 positions at proxy positions.
These were not appointments, elected officials that were reviewed and approved by the parliament, which makes them legal. So instead he basically stacked the deck in his political favor so he had allies all around him to support him, gain strength and do his dirty work for his future dictatorship plans. Yes he had some plans for Iraq but not what everyone thought....
2) In 2008 the USA experienced the economic impact of the mortgage crisis. Bad securities (backed by bad mortgage contracts) sold by the federal reserve to back our national debt. It took until 2010 to come up with some scheme and a way to try to resolve this crisis.
All kinds of money was dumped into the banks to keep the liquidity and from them going insolvent (broke). This seemed to be a temporary solution since the money flowed out as soon as it was loaned to them.
We all heard about this on the news. So where did all this money go? This did not work so a new plan was needed. This was now a global financial issue not isolated to the US banks.
3) new banking laws and structures were necessary in Iraq so they could operate with the international community in the future and this would take time to put into place.
4) There was also the issue about sanctions being lifted as a requirement for an RV and the question is still uncertain for many. Would and could Iraq have RV's without getting out of Chapter 7 sanctions? Coupled with the Maliki game playing at the time it was very doubtful. Negotiations also with Kuwait were ongoing and not yet settled. No way!
So in reality in 2010 there never was going to be an RV, there was no plan for it and it was just a lot of hype and misunderstanding on the part of the "intel providers" at the time. This too is when many of the intel providers began their conferance calls and continue to this day. But most importantly this is when many of you first invested.
So the plan to solve this now global economic problem was to seed large sums of Iraq dinar in the 3 zero notes of provisional currency in any bank that needed funds to meet the new liquidity requirements of the banking laws.
The problems with this strategy were:
a) this Iraq currency was almost now worthless - so how could it help?
b) if you are having liquidlity issues now due to the economic collapse - how do you pay for the dinar to be used as seed?
As evidenced in many mainsteam news articles and financial news media we saw over the next 2 years 2011 - 2012 large sums of money (in the billions) being transferred around to different developed countries throughout the world. The USA too seeded much of the Iraq dinar especially in its reserve currency stockpiles.
But the USA did not seed much in its banks like the other countries and there was a reason for that. Instead in the USA the banks expected to take in large sums of the dinar from depositors and convert to actual banks deposits on their balance sheets. This is actually better than having dinar reserves for liquidity.
So who is going to exchange all this dinar to dollars and deposit it in the banks or in investments? It is you and me that is who.
We will make these seeds grow! So you see why this revaluaton and the dinar is so important for the USA.
Now lets look at the other countries too. So what happens to them when the dinar revalues? They too benefit since all their bank reserves get a huge boost in value overnight and thus bring them into liguidity requirements.
They are now just on standby. The world awaits this IQD revaluation. Suddenly they (the IMF) will literally create all this wealth out of nothing..and I mean nothing. But the important part to remember is it is not really out of nothing since the new world order global Basel II laws say all currency now has to be asset backed.
So the confidence level will be high that the currency values assigned actually have something tangible assets backing them.
Remember that paper currency is just an I.O.U. We forget this fact since we take it for granted and use it so freely each day. Do you know what an IOU is? An IOU (literally I-Owe-You) says that you owe me this amount of tangible asset ON DEMAND.
You can create your own IOU simply by writing on a piece of paper what you promise to give the bearer of the paper in the future and sign it. A checking account check too is a personal IOU. Some people do it in poker games to back their chips..lol... It is illegal not to make good on an IOU.
The government prints formal money for this purpose. It keeps commerce going and gives the general public a means to do the daily transactions with others instead of lugging around tangible assets all day long.
Printed money makes it easy. It is getting now even easier since we are going to eletronic banking where actual paper currency is not used anymore. This is tricky and opens itself up to a another whole set of fraudulant and bad practices.
This I believe will be the ultimate failure in the banking systems in the future if not tightly controlled. Remember what they are doing in this global reset is a huge bandaid and is not the final solution.
They hope it will lead to stability and with that confidence will build once again and money will flow like before. It will take time but business will never be as usual since banking rules have changed.
Oh wait a second....didn't the USA have banking rules and regulations in place as a result of the great depression. What happened to all this regulation?
Yes the USA did but many of the laws have since been watered down and/or appealed for the benefit of the very wealthy. We have seen this through the many administrations over the years.
Is this all croocked? Yes it is and this too is part of the problem.
Funny how everyone ranks on Obama for trying to turn the clock back. Not that I am or am not an Obama supporter. There must be a reason why so many high ranking Republicans do not want to go along with his policies.
The global community (the operative word is global) however did not have such stringent laws and rules in place. With globalization (you should be familiar with this term by now) money must now flow freely across borders.
The whole financial climate changed since the 1930's and it was time for a new set of major global reforms and banking laws. There was Basel one and this helped but now it was necessary for even more to tighten the rules with Basel two. The big question is - will this be enough in the long term? Read on...
Using the IQD as the base currency for Reval-
If you were in charge of coming up with one currency that could be used to gauge most developed nations currencies values what would you use? In the past it was the US dollar. It was stable and confidence was high that it was backed by something of value. After all was the USA not the riches country in the world?
This in itself was part of the problem not the solution. So they had to find something else for base currencies. Today they have many base currencies so the dependnecy on one nations economy does not bring the entire global structure to its knees.
Personally I would use a currency that has real solid value and is easily backed by gold or another asset with very high liguidity (can turn to cash very quickly). The Iraq dinar was picked as one with its potential for large much needed quantities of oil (black gold) and other natural exploitation (gold, silver, boxite, phosporous, etc..).