(Thank you George for emailing this to Dinar Recaps.)
UU8677 - “It’s beginning to look a lot like Christmas!” by Mnt Goat
In Germany we have many favorite times for celebration. As you know one of the favorites was the Oktoberfest this fall. It was once again a lovely time this year. The opening day parade was spectacular and the beer……oh boy !!!!
So now we look forward to yet another great German tradition. This event is focused around the Christmas spirit. It is coming soon and it is called Christkindlesmarkt. Do you know what this is?
This period goes way back to 1400’s when it was traditional to give children gifts on December 6th , St. Nicolas’s Day. So you know Meine Kinger luv it.
Since then it had progressed into the squares and platz in Germany to become a delightful tradition. The enticing smells of mulled wine and rum punch, roasted almonds, gingerbread and (of course) bratwurst…. lol…..fill the air. And it’s not only tiny tots who will have their eyes all a-glow as the Christkind will open the holiday season.
This all happens the Friday before the first Sunday in Advent is the day it all begins. This is the official start of the Christmas holiday season in Germany. We are making plans now to hop on the train and head up to Nuremberg for a few days. Here we will visit the world-famous Nuremberg Christkindlesmarkt. This has become an annual holiday tradition for our family. Miene Kinder can hardly wait but I too along with Meine Hubby also enjoy being outdoors at night, sipping mulled wine and seeing all the lights and smells. It is a wonderful time of the year. Wish you all could join us this year !
But the real reason why I come to you today is to share my recent findings and give you an update on the progress of the economic reforms project and how this relates towards the international rollout of the IQD for Iraq.
Today's news letter, as in all my news letters, is a continuation of the ongoing saga of the IQD RV process. Please refer back to my last news letter of 10/29 (LINK) as this news letter is a continuation of this news.
Today is Friday 11/7 and Iraqi is making great progress in their new government. As I said previously the major items now of emphasis for Iraq government are:
1) expose the past 8 years of corruption and weed out those responsible for the corruption; (we see Maliki is about to face his maker…..lol….)
2) defeat ISIS and secure Iraq (build up the provincial and national security forces);
3) complete the economic reforms. I will talk about this last item mostly today since you are hearing so much more about the other two items lately in the general news media.
What - no budget on the agenda?
I have to say this 2014 budget issue is a done deal. I have already told you in a previous news letter how Iraq intends to use the 2014 budget. They are not going to formally announce a voting on the budget since much of the detailed project are being rolled over to 2015. Much of the intended money has been stolen and they are not going to brag about internal corruption from the Maliki administration. It would only be egg on their faces to since they allowed it to happen.
What money they have left (after Maliki raped the coffers now over 150 billion) they are using along with supplemental loans. Approx 80% of it is being used to fund the fighting with ISIS with the hope they will get continued military hardware, logistical and air support from the alliance forces. The other 20% is for domestic spending on critical functions to run the government. They do not want to resort to any more short term loans but they will resort to this step if necessary. Kuwait banks have offered funding and well as the IMF.
So why don’t they just RV and get all the money they need?
If it was so simple don’t you think they would have done the RV already? If they are not careful in how they reinstate their currency the process could blow up in their faces and make them worst off.
For instance we see them slowly rolling out reprinted, newer currency with even more up to date security features. These are more of the 3 zero notes. We all wonder why they are doing this. It seems counter productive since didn’t they just got through a massive program to collect as much 3 zero notes as possible? Is this not a deviation from their plan? Do they intend to prolong this RV forever? Absolutely not !
The CBI is doing this so when they recall the last of the 3 zero notes there will be a deadline to switch them over for the lower demons. This is much like they did when they switched over from the old Saddam Hussein notes. Remember they are just not going to give out FREE money to anyone. The citizens must come to the bank and switch out their present currency. After a said deadline (to be determined) the older, original 3 zero notes will no longer be legal currency in Iraq. Note I said “in Iraq” so don’t worry about the ones we hold as investors outside of Iraq. I will explain how they intend to handle these notes.
Why is the CBI being so fussy in rolling out the newer, more secure 3 zero notes?
They are doing this since they will be still using these 3 zero notes going forward for inter- banking and international transactions. They need the larger notes for these very, very large transactions in the future between countries. They actually never go away altogether. They must break this counterfeiting that is happening first. It is killing their economy and is a terrorist liability.
The average citizen however will not use them but if they had a couple (of the newer 3 zero notes) they would actually be legal tender but just not allowed on the streets and rejected by the banks after the said deadline.
So imagine if you were counterfeiting the dinar or had a large stash of maybe trillions of the original , older 3 zero notes. Now they are no longer legal tender to anyone. What would you do with them?
Well in the Middle East you may as well throw them away after the deadline. Anyone with very large stashes will be caught at the banks trying to exchange them since this is the only place you could switch them over to the newer, more secure 3 zero notes.
This is kind of like a trap for terrorists and counterfeitting rings they are setting who now have very large stashes (i.e. ISIS). This is also a well planned effort to flush out or disarm these dinar counterfeiting rings (much of which is coming from Iran). They must get this counterfeit currency under control prior to any RV. They must disarm any large stashes of dinar that can be used against Iraq by the terrorists. So far they have kept this effort in the background and I am not exposing anything that will hurt their effort since they are so far into the process already.
Also I want to remind you that all of our 3 zero notes that we now hold are also the older, original 3 zero notes. The CBI must collect these too and get them off the streets of foreign countries too or someday they might end up back in the Middle East in the hands of terrorists. They must do it very quickly once the RV rollout happens. They can’t do it now since we are not going to let go of our dinars without some incentive (like a revalued rate?). Can you now see why? I know for a fact there already have been many exchanges within the USA in this matter. I will not talk about the legality of these transactions since the IQD has not officially already revalued - or has it?
Some say it is perfectly legal since last spring Maliki did in fact officially reinstate his currency while he was still in power as the prime minister. Some also say he had no power to do it since only the CBI has control over the currency. Yes the GOI must approve any recommendation by the CBI (as an agreed to courtesy) but the official power lays within the CBI.
Will the IQD we hold outside of Iraq, be legal tender in Iraq? Actually after the RV if these older notes are brought back into Iraq from the EU or USA countries the answer is emphatically a big fat - NO! Airport security will probably confiscate them. The older, original IQD will only be legal tender outside of Iraq. This “legal immunity” will only last for a period of time before suspicions will arise if you try to exchange any very large quantity of this older currency. Many terrorist questions will arise at this time at the bank and you probably will be faced with Homeland security issues. So my advice is don’t wait in conducting your exchange when the time happens.
Link to Part 2