(Thank you George for emailing this to Dinar Recaps.)
UU4321 – “The Pressure is Building?” by Mnt Goat
Holidays are over and Meine Kinder are back in school this week. It was a nice season of joy, goodwill and prayers. I wish everyone else also enjoyed it. Here now in Bavaria we are geared up for winter sports in the snow and many are now taking mini holidays from the north and surrounding countries. Business is good !
Today I wanted to give everyone a very brief news letter ! I hope everyone also read my last news letters dated 12/31 (LINK) since this is a continuation of this ongoing saga of getting this 2015 budget bill passed thus showing us the way to the RV event.
If you are one of my readers skipping to read only the Summary section I highly recommend you DO NOT and take the time to read the entire news. There is so much valuable information in the content of my news letter and you will be missing so much if you read only the summary. Sometimes it is not so much what I say but how I say it. It is difficult to put emotions sometimes in writing but I try. This is important to note. This may be the reason why these same readers always have the questions and fill up my inbox. These questions can easily be answered if you only read my entire news letters. This is why I take the time to write them. So as a compromise I too will attempt to make the news letters shorter.
Okay – can we all please do that going forward? I will not be doing anymore “spoon feeding”.
So we all should know that the first reading of the 2015 budget was completed on Dec 25th and at this time it was announced that the second reading and voting would take place on Jan 7th . Originally Haji Ahmad, from the finance committee, said it would take until Jan 20th to get it all straightened out but they moved the date up to Jan 7th. Why? We have been all waiting in anticipation.
Well today is Jan 5th already and Iraq said yesterday (Sunday 1/4) they are still on target to hold this session of parliament for tomorrow, on Jan 7th . This is only 2 days from now. Will something go wrong?
The plan is still to conduct the second reading and vote during this same session. They are also still saying they plan to fully implement the budget at this time as it will be posted in the gazette. The budget will be retroactive to Jan 1st when it does come out.
Will they push it out again and how far in January dare they push this out again? Seems they already used up all their trump cards and aces in their hand. The international investment community is getting excited.
Remember too what I have told you as to the reason this final date keeps getting pushed out. There is actually nothing more to do with the budget. It is all about the USA wanted more out of Iraq until the final rollout of the currency will happen. It is pure interference and manipulation of Iraqi politics. Some good some foolishness. When will it all end?
There was a very confusing article on this topic that came out on Sunday and so I wanted to clarify for everyone the situation has not changed.
Remember also it is the parliamentary finance budget committee that puts together the budget with input from the ministers (Abadi’s cabinet of ministers) and not the CBI. The CBI is just a bank thus called the Central Bank of Iraq. They do not formulate the budget or have anything to do with it prior to it being passed by the house. However the CBI, being the keeper of the Iraq funds, will request dispensing of the funds to the Iraq banks where it will be dispersed to the contractors as approved in the budget and contracts written by the ministers. The clincher is literally hundreds of large contracts are pending and many effective Jan 1st.
There has to be a full accountability and transparency of funds going forward. Abadi has made this very clear. So do not be surprised if once the budget is passed it is a day or so until we hear about any funds being dispersed and full implementation. We may see the RV prior to this.
Now some really excellent news –
Also on Sunday 1/4 news from the finance committee was reported that the GOI has approved the second payment of $1,300,000,000,000 dinars to the Kurdistan region as part of the oil revenue sharing for late December and the month of January. Why is this such great news?
It confirms that the 2015 budget is all but a done deal. It proves that HCL is a done deal. They agreed not send any money the Kurds without this 2015 budget being opened if they gear the payment off the budget figures and its payment schedule. In other words a confirmation to us who are following this saga that it is about to end.
I am also hearing they worked out a deal on how to handle holding the last administration (Maliki and his goons) accountable for their acts of corruption and crimes against humanity. I am still waiting to hear just what the deal was as it is being kept secret for now. They now have the go ahead with the Amnesty Law and this is good since it was one of the issues blocking the RV last week by the USA (as I explained to you in my 12/31 (LINK) news letter).
Also I want to mention something very important and also amazing. I was wondering why the Provincial Council or Federation Council was not taking a more active role in their part of the government. We should have seen some articles or heard some news from Iraq on their progress and meetings. But nothing. So I decided to snoop around. What I found out is we have not been hearing much because the article in their constitution, that guarantees the decentralization of the government, by forming the Provincial Council, was challenged by the Maliki government. He wanted to appeal this provision in the constitution. The good news is I found out that the appeal was in fact now overturned in the federal courts on around Dec 30th. So this matter is now settled and nothing is standing in the way of full implementation. Why is this important? It is important because this too was required by the USA and has been a matter of contention in holding up the RV. Seems
we are slowly finding out about these matters.
Bear in mind too that it is a new month and so the CBI (at the request of the GOI) has to load up the Qi cards once again with government social program funding to pay for such items as pensions, welfare, food program, retirement, unemployment, military pay, etc…Where will they get the funding from this time?
Some of the funding to run the government and pay the military will of course have first priority since ISIS fighting is not yet over. It is under control and gearing down but not yet done. We know Kurdistan just sold a ton of oil this last week as we can see Kurdistan’s cut of 17% announced in articles, as I mentioned the amount above. There is also an extra 3% now added on for payment for the Pershmerga military services rendered against ISIS. I also know for a fact that the Pershmerga forces are now going to be part of the central government’s national military forces and just not exclusively for Kurdistan. This is huge since it shows us the national unity being formed between Kurdistan and Iraq. This is exactly what we wanted to happen and required by the USA.
So there are some funds available to pay these bills but not all they need. This is why once again we are reading articles about Iraq reaching out to the IMF and the United Arab Emirates for borrowing. Seems this is now a habit at the beginning of each month.
We even saw some articles about Kuwait offering to defer a war reparation payment knowing the situation. This shows cooperation between the two countries something also very significant. I believe Kuwait has done this because they know they will gain much more in the long run working side by side with the new Iraqi government instead of pressuring them. So all in all we know that money is still very tight right now. These are all the signs.
We also read articles months ago that they planned to fully implement the Tariff Law and this too is on hold until the revaluation is done. It is now Jan 5th already and still no Tariff revenue? This is billions of much needed revenue missed. The Tariff Law was completed and in the gazette over a year ago. Remember the UN also is going to greatly benefit from these Tariffs since they will get their cut as they manage their fees. So they want it implemented too.
Last week too, parliament once again asked the finance committee where the heck is the completion of the deletion of the 3 zeros project? They said we need a global currency by Jan 1st. So where is it?
I don’t forget this stuff and store it in the back of my mind whenever I hear it. Later you have to use it all to connect the dots to assist you in figuring out just where Iraq stands with it all and what their next move will be.
It is all coming to a finally soon like a balloon inflating too much and then popping. It can only take so much air and then it pops. If the USA does not let up soon and let Iraq RV go global with their currency this may all fall apart and we have one huge mess. Is the USA going to let this Iraq project in the middle east fall apart? DR Shabibi has warned them already that it is overdue to come forward with the RV to regain the confidence of the financial markets. No more delays !
Is the USA listening?
Sounds to me like an RV would really help them? What do you think?
Then when can we expect the RV?
I don’t know about you but I see an excellent window of opportunity opening up from Thurs 1/8– Sunday 1/11 for an RV. Probably out best window yet.
Will the USA stop the RV if and when announced by Iraq at this time? I do not know what I do not know. We will see what happens in the coming days. This could be a very interesting week. Stay tuned I will try to bring you want I know later in the week.
Peace and Luv To Ya All,