Thanks Dinaridori for sending this to us today:
islandg1211 - A REVIEW OF GOLD-BACKED to FIAT to SDR - Simple explanations linked the Kirkuk and Mosul Agreement with Abadi's HCL statements.
Kurdistan Kurdistan, Iraq, and US agree on Mosul operation. Barzani's Mosul plan for liberation: Kurds have "five corridors to enter Mosul, Iraq has one."
All parties have come to an agreement. Barzani wants a "quick liberation of Mosul."
http://www.kurdistan24.net/en/news/266ff62c-6b69-4644-a6fc-c0a92520ca68/Kurdistan--Iraq-- and-US-agree-on-Mosul- operation-
1) Baghdad and Kurds Agree on Kirkuk
2) Barzani, Baghdad and US have "agreed" on the invasion of Mosul, and to "quickly get rid of ISIS in Mosul"
3) Abadi talks HCL
I enjoy bringing in news articles as a grouping to better understand a situation. These three news stories, two of which are agreements, one just some comments by the PM are interesting to combine.
Today's HCL article is of interest IMO because Abadi is pointing out that there does not need to be a new HCL law, but just AMENDING the old law. Good point Abadi, it will take less time to get it done and implemented.
The TIMING of Abadi's statement today, (as he kicks off his meetings with Obama and the UN), to me, is also of importance when looked in conjunction with today's article referencing the U.S./Iraq/Kurd meeting finalizing the agreement with Barzani on Mosul. IMO, that meeting didn't just cover the military plan for invasion of Mosul, but included post-Mosul plan - meaning the plan for Mosul's oil share for the Kurds. That's just my opinion, time will tell what the agreement is.
There can be no HCL, IMO, without an oil agreement with the Kurds over Mosul. Last month's agreement on Kirkuk was a requirement for the Article 140, and the HCL. But, Mosul's oil, and an agreement and/or censes of the population in the regions have to be determined before the implementation of the HCL.
The Kurds didn't want to invade Mosul without getting an agreement on Kirkuk and post-ISIS Mosul.
Today's agreement on the military plan for invasion of Mosul is very encouraging because, IMO, they covered for more in this discussion than just fighting ISIS, and have agreed upon post-liberation.
I have mentioned numerous times Barzani's interview with CNN last January were he was adamant that there would be no liberation battle in Mosul until there was a political agreement between Baghdad and Erbil, meaning he wouldn't fight until he got what he wanted, and without him, no one could retake Mosul. It's interesting to see these articles taken together along with last month's article on the the agreement over Kirkuk.
Combining these news stories, the progress becomes apparent:
1) Kurds and Iraq split 50/50 Kirkuk thus SETTLING ARTICLE 140 dispute
2) Plan to invade Mosul and QUICKLY GETTING RID OF ISIS
3) IMO, a post-Kurd-dominated CONTROL OF MOSUL AGREEMENT
4) Abadi pushing the passing and IMPLEMENTATION OF THE HCL to finally distribute oil revenues to the citizens.
islandg1211: CHINA JOINING THE SDR OCT. 1, 2016 - IMF'S PLAN FOR IRAQ, and MOSUL'S LIBERATION
I've always thought that the RV would happen end of April, June or September, based on quarterly accounting and historical RVs.
Last December when the IMF and WB and Pentagon made a huge commitment to Iraq and get rid of ISIS by the end of 2017, and move forward with their monetary reform. In the Spring, the UST mapped out an umbrella financial plan for Iraq that included loans, budget reforms, bond sales, credit rating, and "return to the international economy" and "moving towards acceptance of Article VIII."
Last week the IMF and WB met with the CBI and the Finance Committee to review Iraq's progress. They have said that they will meet again next month.
PM Abadi is meeting with Obama at the UN in NYC today. Mosul is set to be liberated. US and Iraq and Kurds are working out plan for post-liberation. UN working on plan for displaced people.
China SDR Basket:
October 1st is a significant date because China will be joining the SDR basket of currencies that include the Pound, Euro, Yen and USD with the IMF. What is "SDR?" It's Special Drawing Rights, which allows countries to draw from the IMF. This is a global currency with global control verses countries sovereign currencies. We all need to understand the significant of this "global currency reset," as the shift from USD dominance towards a global currency continues.
The issue isn't just that China's Yuan begins to take away "market share" from the USD, but that money itself is evolving. To put this into context, Look back at the history of money, where post WWII, the USD gold backed currency was decided by the banking families to be the world's dominate currency.
The Federal Reserve, owned by private banking families, loaned money at an interest rate to the U.S. Government backing every dollar with gold. However, after the U.S. spent money on the Korean War and Vietnam War, concern over the USD lead to calling in the dollar for actual gold. As gold reserves fell, President Nixon reacted by getting off the gold system and switching to a fiat currency.
Nixon had Saudi's oil and all oil sold and traded in USD, thus driving up demand for USD, and backing up the USD with Petrodollars. The U.S. just kept printing money and racking up debt. Saddam realized he had real assets, that oil itself is a currency, and threatened to stopped selling oil in USD. He wanted to take over his neighboring oil rich countries. Bush invaded Iraq. The U.S. plunged further and further into debt. 2008 hit and the world's economies have yet to recovered.
Russia and China and Iran are trading oil in their own currencies, thus breaking the monopoly of the USD petrodollar.
Will China's currency be backed by gold? Will the banks in Europe reach a tipping point of derivative debt? How long can the Euro hold together post Brexit, Greek debt, and possible other countries leaving the EU? How long can the U.S. just keep printing paper money? As the old fiat currencies become stressed by their debt, the new global basket of asset backed currencies begin to have more value.
Iraq potentially has value. It has more natural resources per sq foot than any other nation. It has gold, oil, natural gas, minerals, agriculture, and may finally be nearing a post war rebuilding phase if they reached political stability and security.
Clearly, the U.S. has poured billions of dollars and lives and years of commitment into Iraq. Under Obama's and Maliki's administration, it was all for naught, as Maliki stole billions and billions and let ISIS and never unified the country not got the needed laws passed. Abadi has been slow but steady in making some initial reforms. Hopefully, he will be able to continue forward, get rid of ISIS and the corruption. He certainly has the support of the international community.
So we watch as two significant events unfold: the liberation of Mosul resulting in security for Iraq, and China joining the IMF's SDR basket.
Remember, Shabibi's and Allak's statements that they will RV when the conditions are right, when there is "stability and security."
Security is in sight within the next few months. Stability is a never ending resistance within the GOI. Abadi is set to submit more names for "technocrat" Ministers, the Budget is getting ready, but all important laws are yet to be passed and Maliki is still an MP. Recovering the billions and billions of dollars would be a game changer for the CBI's reserves overnight.