[tlm724] I have made an observation I'd like to share with you all, this morning BondLady found us an opinion article I'd like to show you and then bring in an article from July 30th 2013 to make a comparison. here are the highlights from this mornings art and the link
Iraq is looking to foreign investment to $ 32 billion 8/9/2013
exit Iraq from Chapter VII must have a positive impact on the price of exchange rate of the dinar against other currencies
[tlm724] MUST have a positive impact
the magnitude of pumping dinar in exchange for revenue limited foreign currency that led to the deterioration of the exchange rate against the dollar
Read More Link On Right
[tlm724] Yes they make a lot of money BUT the consequences of that action is that they created a dinar that is not worth much
it is now up to 1160 dinars to the dollar.
In attempt by the government to improve the level of the Iraqi currency, intends to delete the three zeroes are priced exchange rate 1.16 dinars to the dollar, and will cost the replacement process the state budget the amount of 172 billion dinars, or the equivalent of about $ 150 million,
and the government is preparing to perform this step, the adoption of "new dinar," which asks system from the central bank to raise the value of gradual and down to be equal to the dollar.
[tlm724] Saying the GOI wants the dinar at a level that befits their new status after removal from Chapter 7. "the government is preparing to perform this step"
Preparing to perform "the adoption of "new dinar," and asking the CBI to raise the value gradually, whats to say the CBI hasn't been doing that all along, I'll come back to explain that in a minute
Can the Iraqi economy, despite its financial strength and solvency, achieve social stability in light of the continuing lack of security and political stability? ...
And can reassure investors and attract them to contribute to the country's development projects promote and protect the national currency deterioration and return to the previous value the days of Saddam Hussein? ..
[tlm724] This quote raises two questions... Can Iraq do this in spite of the circumstances in the country ? Can their tremendous progress and wealth push this currency reform and added value to the "new dinar" go forward now ?
Let me show you a portion of the other article I spoke about
Finance Committee: more than 188 trillion dinars budget in 2016 30/07/2013
[tlm724] The gist of this article is that they are preparing three years budgets ahead of schedule which in it's self is amazing lol :
BAGHDAD / JD / .. announced the Finance Committee in the House of Representatives that the 2016 budget will be more than 188 trillion dinars.
Committee member said Magda al-Tamimi told the reporter / JD / within the Committee prepared for the budgets of Iraq strategy for the years 2014, 2015 and 2016
[tlm724] but the interesting thing is this quote :
"And alerted Tamimi that calculating the exchange rate of the dollar will be increased by 1.16 dinars, pointing out that the Commission had not received the report of a central location around the dinar exchange rate against the dollar, prompting the Commission to adopt the exchange rate on previous years and such a thing is not permitted at all."
[tlm724] The Finance Committee is saying that the CBI "central location" has not given them the tools (numbers, rate) to do an accurate calculation !
That they are having to use $1.16 to calculate from and that rate is "the exchange rate on previous years and such a thing is not permitted at all."
The common denominator in both these articles is the exchange rate of $1.16.
Right there it is saying hey that's not a good number ! Before release from chapter 7 I would have read that article and believed that the $1.16 was referring to oil projections BUT today I am seeing it differently.
That is a very specific reference to the "exchange rate" of the dinar. Have the tides changed ? Are these two articles showing us that the exchange rate will be above $1.16 ??
Could we be looking for more then that ? Now I am not talking $4.00 here lol but the time's are different now in Iraq and IMO these are showing us more of what the plan is.
Why would Iraq all of a sudden want to project and calculate their budgets 3 years in advance ? If we think logically about the economics of preparing a budget it makes sense IMO.
Wouldn't it seem logical that if the IMF gave Iraq a road map to work from that the budget calculations would be included ? Did we (the US) not send representatives from the Treasury Department to Iraq to help with the budget (s) ??
Has the CBI been increasing the value of the current dinar to reach a level acceptable for the "new dinar" talked about above to come out well above the dollar mark ? IMO they have...
I seem to have left you with more questions then answers but my intention was to get you to consider the whole picture. Things are happening and if we pay close attention we can almost see what they are doing ! Thanks