Well the news continues to be encouraging this week. I really enjoy the fact that the bulk of the articles that have been scrutinized by Med in great detail are centered around the core components of Shabbi the economy and global interaction of the dinar based on facts and projections. My favorite comments by Med were:
· THIS THING IS IN AN INCUBATOR and AND IS READY TO HATCH ANY MOMENT
· SHABIBI DID SAY IT THIS WEEK THEY NEED TO REVALUE HIS EXACT WORDS OR THE ECNOMY WILL FAIL AND THE DINAR WILL DEVALUE
· FOLLOW THE ONE PERSON WHO HAS SHOWN RESTRAINT AND HAS NOT GIVEN THE MULTIPLE REASONS OR MISINFORMATIONTHAT IS SHABIBI
Given the majority state owned banking infrastructure, it is interesting to note that the global economic currency issues led by the IMF and World Bank have met a resistance if you will from Iraq to participate or engage the international community in a more timely fashion.
We all by now have seen modern political money and banking functions evolve as a key mechanism in Iraq. As the global community is trending toward global economic distress, Iraq has embraced an insidious expansion of debt, which has and will generated economic activity by pledging their natural resources and betting on expected outcomes.
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Before project Iraq was even considered a player in the scheme of things, there has been one basic economic methodology deployed globally that has shown its strategy time and time again. Within the framework of the Hegelian dialectic process, the same ingredients that define the cycle of Problem - Reaction – Solution continue to abound. High level financial crisis has always invoked a state of war or conflict and deployed the usual resolution process.
I can’t help but reflect on Iraq and its Central Bank and how the basic law of just weights/measures allowed centralized economic activity in a state/banking environment to solely determine how much money (credit) to create, for whom, and at what cost. Natural resources such as oil gold or silver, augmented by their own labor, do not appear to any longer determine the money supply. Now we are seeing Shabibi at the CBI create new money and credit mechanisms out of thin air with fiat money! Has there been stated or defined any other types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money? Will they ever produce a representative money or fiduciary money that will be tied to or backed by non depleting tangible reserves?
As we are seeing the devaluation of currencies worldwide and revaluation of the monetary systems trending in many countries, the Iraqi government has mapped out the plan to begin the exploration and exploitation of its various raw materials for sake of rebuilding the Iraqi economy. And this development will also become the reason to increase the value of Iraqi dinar.
Deep economic retrenchment and greater economic polarization between the classes will probably be consistent through this period until they prune the zeros and the managed rate is replaced by a functional rate that gives them the best bang for their dinar. Otherwise this week was more upbeat in my opinion. Thanks to all who contribute