(Thank you George for emailing this so Dinar Recaps can post it.)
Edition: UU6908 Dated: March 11, 2016 Title: “The Progress Continues”
Today I bring you again the news of the two main paths being worked on by Iraq. The financial and the political paths. These paths will merge shortly as they need to very soon. The protestors in the streets are not going to allow this stagnation to continue much longer I can assure you of this. Once the cabinet is reformed then they will strongly move on to demands for justice to these high level officials next. These protestors will not end.
I have developed a new window which I feel may be our next earliest shot at an RV timeframe. Of course, as usual, Iraq never finishes anything on time so this window may move but let’s see how everything goes in the next 4-5 weeks before we jump off the bridge of despair.
By the way I just wanted to mention that Iraq now has full electricity in ALL the provinces (shut off in Mosul) and this is the first time since the military bombed out the power grid in 2003. WOW!
Today is Friday March 11th 2016. Still no RV. Sorry! No banks stories today or rumors about high rates or info about exchanging…sorry!
Update: Iraqi Economy
We hear that the CBI plans to launch a “national” bond drive and not use the international banks to broker them. Why have they decided launch these bonds this way, this time?
What we do know is the CBI is slowly depleting its reserves in balance of payments for importing goods into Iraq. They need capital and so I believe this is an effort to raise the funds. But the key here I need to emphasize is they are taking the money out of their economy and not attempting to get it from international investors.
Let’s dig deeper,,,,Why are they doing it this way since aren’t they once again experiencing a liquidity problem. at the banks? They just told us they are. Seems this move might be counter productive?
I believe that at this point in time (being so close to the RV) they need to suck up as much currency out of circulation as possible. Did you note the date to begin the effort (mid March)? Buying bonds would facilitate this effort. However just how successful will be these bonds since how much money can the average citizen spare to purchase these bonds? Will this drive just flop like the other bonds drives?
THE CENTRAL BANK PLANS TO LAUNCH A NATIONAL BONDS IN FIVE CATEGORIES OF THE MIDDLE OF THIS MONTH
March 9, 2016
Our economy / Baghdad
CBI, Wednesday, announced his intention to launch a national bonds in five categories of the middle of this month, adding that her annual interest rate of 6%, between that can be used as collateral for loans to financial facilities.
The bank said in a statement the agency of our economy News received a copy of that "will launch national bonds (nominal) on behalf of the Ministry of Finance in nominal terms and as of the middle of this month, March 15 and ends on 15 April next year," adding that "Asdarih will offer five categories include (100,000 and 250,000, and 500,000 and 1,000,000 and 5,000,000). "
The bank said that "the value of these funds to be raised will reach 1.5 trillion dinars," noting that "the sale will be at a discount and will be 6% interest per annum and is payable by the Ministry of Finance in March, 142,018."
The bank added that "can citizens and banks all provide purchase orders to the Central Bank directly," pointing out that "he can use those bonds as collateral for loans and facilities or any transactions require collateral, can also be traded on the Iraq Stock Exchange, buying and selling and be deductible the public and private banks. "
IRAN, IRAQ AGREE ON OIL MARKET
TEHRAN, Mar. 09 (MNA) –
Deputy oil minister said Iran and Iraq have agreed to develop a more coordinate approach in the global market.
Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia made the remarks on the sidelines of a meeting between Iran’s Oil Minister Bijan Zanganeh and Iraqi Deputy Minister for Gas Refineries at the Ministry of Oil Fayaz Hassan.
Zamaninia described the five major areas of negotiations between the two countries’ oil officials announcing that Iran will launch gas exports to Iraq in March.
“The session marked the first meeting with an Iraqi delegation following the nuclear deal with the 5+1,” added the official stressing that no major problems existed for the implementation of signed MOUs between Iran and Iraq.
He went on to note that “the two sides conferred on cooperation in three Iran-Iraq joint oil fields while the negotiations will continue in this regard.”
“Iran has voiced readiness to deliver a gas shipment to the neighboring country at the borders,” underlined the official expressing hope that the Iraqi side will be ready to receive the cargo since 20 kilometers of the pipeline in their territory is still under construction.
Zamaninia further stressed that the construction of Basra-Abadan crude oil and products pipeline was also dealt with at the meeting; “with regard to educational operation, a detailed instruction set has been prepared by four companies of Oil Ministry which will be given to Iraqis."
The official also announced the formation of a joint committee between the two countries adding “the representative of National Iranian Oil Company (NIOC) in Iraq will be the Iranian president of the Committee while Iraq will introduce its own representative.”
Deputy oil minister also confirmed that “some talks have been conducted on technical collaborations for renewal of Iraqi refineries which will be undertaken by Iranian private companies.”
RESTART THE NATIONAL ELECTRICITY SYSTEM IN FULL
Twilight News / Ministry of Electricity announced on Wednesday that all the engineering and technical staffs and retaining the other was able to re-run the entire national electricity system, feeding the capital Baghdad and the provinces all electrical energy midnight last night.
A spokesman for the Ministry of Electricity Musab teacher, said he "has re-run the system in record time did not exceed ten hours after the alert all the cadres of the ministry in the work and the headquarters of the district sites, to repair the technical viewer and restore electrical power separated and operation of the generating units in production plants in all governorates of the country's transmission lines."
He said the "development of the national electricity system is now stable and processing power in Baghdad and the provinces between 20 to 24 hours."
(Say what? 20 to 24 hours of electricity a day(anywhere in Iraq)??? It took someone very powerful to pull this one off(no-one like loosing electricity for any amount of time).)
OPEC PRODUCERS' MEETING IN THIS MARCH 20 TO RAISE THE PRICE OF OIL TO $ 50
Tomorrow Press / Follow - up: Producers Organization "OPEC" seeks to lift crude prices to $ 50 a barrel by freezing production levels.
The Minister of Nigerian oil, Emmanuel Ebi Katcheko, the main OPEC members plan to meet with other producers of oil in Russia on March 20th to conduct new talks on a freeze on oil production levels.
The news agency (Bloomberg News) for the Nigerian minister, as saying that there will be "sharp movements in prices , " after the meeting he noted that " the Saudis and the Russians everyone will return to the negotiating table." He said the oil minister Nigeria, the producers in general are seeking to raise the price of crude to $ 50 a barrel.
Personally I would gladly pay $6 a gallon for petro if I knew it would get us this RV….lol…lol…
Update: 45 Day Deadline for Technocratic Gov’t
I Quote from the article below –“Sadr, heir to a Shi'ite clerical dynasty persecuted under dictator Saddam Hussein, said on Feb. 12 that Abadi had 45 days to deliver on his pledge of a technocrat cabinet or face a no-confidence vote in parliament”.
That brings us to March 28th ,just 17 days from now, to complete these needed reforms to a technocratic cabinet.
Remember once this cabinet is formed it should bring about the rest of the needed laws we are needing and things should move quickly from that point forward. But this is only one path, the political side path (as I described there were 2 paths being followed). The other path if the financial path of currency reform and we have seen just recently three huge articles telling us about the currency reform. This is reassurance that they are working on it and deciding on the next move. When will it occur? I have given a new window that I felt was very plausible of mid March to mid April for the lower denominations to be launched. If you have been reading my analysis of the situation of these two distinct, yet merging paths of progress, you know how I am justifying this timeframe. If you haven’t already ready my 3/5, 3/7 and 3/9 news letters please go back and read them. They are giving some compelling evidence that this RV is not too far away.
Next I need to explain to everyone why this change in Abadi’s cabinet of ministers is so important to us and also why it is so controversial to many prior officials in Iraq. I have gotten a lot of questions on this topic. So let me cover them now.
We have all heard about the all the corruption. So this is the main driving force since most of the existing ministers are being indicted for crimes. According to new laws they can not serve in the government anymore anyhow. So this is one of the driving forces behind this change too.
Secondly, in the past the constitution called for a quota system (which is a slotted number % of Sunnis, Shiites and Kurds in the government positions). From the start, this quota system this was an effort to avoid sectarianism and create peace in Iraq and a check and balance. In the past they filled these positions based on the need to fill the quota rather then on experience and skill level to do the job (technocrat).
Thirdly, they agreed to give the Shiite the main presidential position, namely the prime minister and this, in my opinion up to now has been the major mistake, since we all know about the Shiite, Iranian influence in Iraq and the Maliki syndrome. I my eyes the prime minister position if the main position of power and must have a responsible person in charge. Did they not know about the background of Nori al-Maliki when they decided to give him his first term in office. They based on his progress of the first they support a second term? Really? Something right from the start sounded very fishy and it feels like CIA to me. Also the fact that the USA backed fully Maliki too did not help and only magnified his power.
So the old quota system encouraged yet more corruption, sectarianism and incompetence and simply did not work and was abused. Legislation was stalled, contracts were falsified to get allocations for projects never started, and efforts to marginalize the Sunni and Kurds continued. We all know the results all too well. This all was not the original intent of the quota system. It was apparent something had to change if Iraq was to flourish and become a whole democracy. So how can the foreign policy of the USA be so bad to let this all happen?
So now, as usual, they have to clean up the mess…sad isn’t it?
Right from the beginning of Abadi’s new government in 2014 he laid down the law on his chosen ministers. Remember he was on a tight deadline to form the government and had to quickly set it up. So careful selections in all ministries did not and could not take place. But he did warn everyone (we read many articles on this in 2014) that he was giving notice that he would review their performance in the coming year and make some changes as needed. So late last year, around October, he declared more reforms and he would select a technocratic cabinet rather than based on quotas. Since he himself was a Shiite and came from the Dowa party, the Sunnis and Kurds wondered if he was once again planning to marginalize them and take these positions from them and fill them with Shiites. So it has taken him almost 4 months now to put his plan into action.
So over these last recent days we witnessed Abadi meeting with the Kurds and all the main religious leaders to explain to them just what he planned to do. He just now did this due to pressure from the Sadr movement. So Sadr did all of us a huge favor. I think we may have been waiting yet another 4 months if it was not for the Sadr pressure. Why is it now March already and Abadi plans for this cabinet change were done in October? Why so long?
Abadi told them he was more concerned about getting qualified leaders in the positions more than filling quotas. He did promise to maintain the 20% quota with the Kurds and so they were happy.
Meanwhile we know that the cleric Moqtada al – Sadr had given the Abad government a hard date that they needed the reforms accomplished before moving demonstrations into the green zone. He is tired of all talk and very little action. So this is good for us since it puts pressure on Abadi to move quickly.
I am telling you all this because we need this cabinet change and changes in parliament desperately since they can’t get these final legislation passed in parliament within the current situation and need to have more decision making based on experience rather that prejudice sectarianism agendas. To get our RV we need these laws completed, especially the General Amnesty and other bills done. We need some kind of pressure from somewhere to kick this government into action to move.
Trust me when I say this – The PTB WILL NOT put this kind of wealth, that will come from a global traded currency, back in the hands of bandits that will plunder this wealth as they need to see the average citizen also get payment based on the UN mandate in their plan for democracy (oil royalties) and long term sustainability in the region (UN plan for underdeveloped countries). I presented this link to the plan to you in previous news letters. (LINK)
I know this was a long explanation to get to the point, but I am trying to educate all of you and not just give you a date and a rate. This is my goal in providing these news letters and so of course they are going to be long. I want you to understand just how foolish it is when some so called intel “guru” is telling you it is going to RV any day/ anytime now. They can not back up what they say and give you foolish, unreasonable and illogical reasons why they feel this way. This is just not true and we all should now truly know what is going on so you can challenge these people more and more on their Q & A sessions. From all this you can decide actually when we can expect to see the RV and see the reasons why it has not yet occurred. Folks it is not rocket science!