(Thank you George for sending this so Recaps can post it.)
UU6854 – “Very Informative News - All About Currency Reform” by Mnt Goat
It was a great weekend filled with much news. I can hardly believe all the good news and how it is explaining much of what we have talked about in the past. But now you are hearing it from their mouths not mine.
NO Hype, NO Rumors just the FACTS.
Today is Monday Januar 11th 2016 and yes we have entered the second week of the new year already and still no RV. I have a funny feeling that January is going to wiz by us.
Update: Currency Reform
Today I wanted to explain more confusion over the project to delete the zeros. It is hard to believe what people think has happened and the misconceptions out there, so now I have to explain and clarify.
First of all in March of 2015 it was not the CBI who said they gave the “green light” for the go ahead with the project to delete the zeros but the finance ministry. The CBI in return did nothing to reply and has kept very quite on their part. But we know it is not WHAT THE CBI SAYS anyhow that is as important as WHAT THE CBI DOES. So we wait and watch for action from them. We also wait for them to tell us the next step in the currency reform as they have told the Iraqi people they will guide them through the entire process step by step. They seem to be doing just that.
As beneficiaries of this information we too can listen in and see if it makes sense to us. Remember these articles are not meant for us as they are for the Iraqi people. We are only indirect beneficiaries of this information.
In my recent news letters I explained how the entire process is set to go down. I also explained the three “legal” (or mandated) means by which the CBI is allowed to launch a significant increase in the dinar value.
I also told you that progress going forward in this process is entirely in the hands of Iraq if they meet all their objectives and mandates by the UN and USA. They must have “full reconciliation which means a fully formed government, and fully implemented constitution. We have seen the procrastination on passing many of the needed laws necessary to accomplish these mandates. I told you why they are intentionally stalling.
So the only conspiracy (if you want to find one) is in Iraq for their procrastination and corruption in this matter. There is mitigating circumstances as to why they are holding back the RV. There is no boggy man in the USA or some three letter agency holding back the RV. But there are mechanisms to facilitate his process and Iraq must address these first prior to the RV.
So we sit and we await for the “official” word from the CBI to allow the distribution of the new lower denominations. But we know this will not happen until they pass all the needed laws to satisfy these mandates I described to you.
So what happens is the GOI does something to address a concern that needed to be addressed pior to the RV. Then they coordinate a meeting with the CBI to discuss going ahead. The CBI says are you ready? The GOI says yes but then the CBI says no later since they GOI is in fact not ready since they have not yet addressed all the concerns. Remember when I say CBI, I am also talking about the IMF and the experts and economists from GB and the USA helping them out. This is not a hopeless cycle since all the concerns are already identified but the GOI just wants to move forward quickly and can’t. Later in this news letter an article by an Iraqi economists is telling us just what these concerns are. So pay attention you just might learn something today….lol…lol…
We know that when they do launch the lower denominations this must first be accompanied with a significant increase in value and we are told it will be a 1:1 par value with the US dollar.
We also know that Iraq is trying to time other events too like paying out on HCL and the Pensions program with the launching of the lower denominations. All three of these events can mandate a significant increase in the dinar value but the GOI would rather feels it not wise to launch one without the others.
So there are many balls to juggle and it is all moving along. As time passes Iraq sneaks out new target windows to us. They do this indirectly and if we are smart we can put the pieces together. Right now they have told us the launching of the 50k notes HAS NOT officially taken place and was postponed until later in January / early February. In numerous earlier articles they told us that the launching of the 50k notes would “pave the way for the project to delete the zeros”. In my last news letter I fully explained to you what this meant.
I mentioned that between now and the end of the month we should begin to slowly see more rhetoric about the project to delete the zeros as we come closer to the timeframe. This rhetoric would gear up and be presented in many articles of which would contest again the process with advantages and disadvantages. Also they would once again begin to tell us (or Iraqi people) about the process.
We are witnessing all these things I described and January is moving forward. These are all very good signs to us that they do intend to commit to this timeframe they earlier told us. Unless this changes I am assuming this is the target.
Is Mnt Goat committing to an RV date?
NO! Absolutely not. I am simply giving you the FACTS and how they seem to be focusing on a timeframe.
This timeframe could change again as it has already from the early December timeframe I told you about last year in November. Back then they seemed to be on track for a Christmas or very early January timeframe. But they came right out in early December and flat out told us they were “postponing” this timeframe and moving it back to late January / early February. Remember?
So I am now presenting this article to all of you again.
I quote from the article – “The governor of the Central Bank on the Keywords during a press conference yesterday that "the Central Bank is facing different pressures." “
Is facing different pressures? What could this mean?
I told you what it means. They are not allowed to fully launch currency reform unless the GOI has completed the mandated laws and gives them a new “green light”. The CBI was held back last March when they were inadvertently given the “green light” by the finance ministry and so they are being cautious now not to fall into the same trap. The GOI wants the RV very badly and will try to maneuver/manipulate the CBI to get it.
Here is the article is below.
CENTRAL BANK “POSTPONED” THE LAUNCH OF THE 50 ALPHA UNTIL NEXT YEAR
Mohammed Hadi is heading the Iraqi Central Bank to postpone the launch of the 50th class thousand dinars for reasons organizational according to informed sources.
The central bank announced earlier this month issued a new banknote category fifty thousand dinars, attributing this to the completion of the Iraqi banknotes structure and the development of high-class value in the trading.
and told Informed sources from within the central bank correspondent "the world", said on Monday that "the central bank for the release of a class of 50 thousand dinars until early next year for special reasons the process of issuing new currency in the local market organization."
The sources added, that "the central had intended his staff the distribution of salaries for this month in the new currency, but the wait the decision came as a surprise to prevent that.
"The effects of the announcement of the new monetary Category sensation in economic circles, as counted specialists in financial affairs gateway to the heights chronic inflation and the beginning of a great weakness in the local currency value , while others say it will contribute to facilitating business transactions and pave the way for the process of deleting the zeros and the withdrawal of the small coins.
The governor of the Central Bank on the Keywords during a press conference yesterday that "the Central Bank is facing different pressures."
Keywords and added that "print currency fifty thousand dinars do not lead to inflation or raise prices, "pointing out that" the currency came against the currencies damaged that it was printed as well as to respond to the requests of the Iraqis in terms of trading and transfer money the fact that the recent currency category 25 thousand low compared to the existing monetary mass. "
Next I am presenting the article below. This article talks about how the government wants to increase the value of the dinar and they know the necessity to keep it strong. They are of course referring to the recent devaluation against the dollar that just happened.
CENTRAL BANK: THE DEVALUATION OF THE DINAR DETRIMENT OF THE CITIZEN AND NOT THE INTENTION FOR IT
Sunday stressed the Central Bank that the devaluation of the dinar would lead to damaging the purchasing power of the citizens. Pointing out, dinar exachange rate the lack of intent to amend the Iraqi the dinar exchange.
The bank said in a statement considered particulary after it has what is declared by the otherwise from any person or entity has no rate and that it has been iinstalled price in the budget agreement with the government and the International Monetary Fund (IMF).
That the Iraqi currency is strongly backed and there is no fear as the prime minister Haider al Abadi said earlier, there is no “manipulation conspiracy” as he pointed out to the existence of exchange rate of the dinar against the dollar influence the current situation.
Next I presenting an absolutely amazing article, a real juicy article, and a real charmer. Do I seem excited?
It is telling us so much. So let’s pick it apart and see if we can understand what this economist Raed al-Hashemi is trying to tell us.
First it is just the opinion of an economist and these economist are advisors to the prime minister but they do have his ear and he relies on their feedback.
Second he explains what Iraq needs to RV and I quote from the article – “the deletion of zeros from the local currency needs to be political, security and economic stability”
This so far should be nothing new to you since I have been talking about this stuff now for years. But he is reaffirming what I have been saying so now once again we can put this into our bag of “FACTS”.
Next he explains and I quote again – “economic environment you need to create a thoughtful to apply the deletion process through procedures and financial and banking decisions made by the financial authority in the country ".
So you see they also do need banking reforms and the banks to cooperate in the process to make it successful. We can see that in November some of the new 50k notes did sneak inadvertently out into circulation. Also in early December we witnessed some of the lower denominations also be loaned out to the public against the CBI policies. So he is telling us they must listen to the authorities in charge of this process and follow the process. This also created much confusion with many of these so called intel “gurus” who couldn’t figure out what was happening even after I came forward and trying to explain they still persisted in their madness that in fact it had RV’d. We all know it did not..
Next he asks if there is any benefit to raising the 3 zeros from the currency and he states – I quote – “The process of deletion of zeros is a necessary and important step comes as part of the need for the process of administrative reform of the coin contribute”
Then he asks if lifting of the zeroes will affect the economy and social stability and again I quote his opinion -
“Yes affect by reducing its currency and thus will lead to the feminine Iraqi economy and facilitate the Iraqi payments system process and raise the value of the currency at least partially slow, and will affect the process in the creation of a worker and myself technician can play a positive role in strengthening the Iraqi dinar”
So we all should relax now. We know this RV is coming. They just have to follow the process.
Next comes the really juicy news. Are you ready?
Next he actually sums up and tells us the “correct” mechanisms to which is to be used to raise the 3 zeros from the currency and he states – I quote again from the article-
“1) SELECTION OF THE APPROPRIATE TIMING at which the Iraqi economy (one-sided) in a state of stability and economic environment and to
2)needs to be PROCEDURES FOR FINANCIAL AND BANKING and the decisions taken by the Authority Finance in the country,
3)and the need to create a media and psychological community to accept such a decision by the INTENSIVE MEDIA CAMPAIGNS BEFORE PROCEEDING
4)with implementation, and the implementation of the resolution ON THE STAGES OF TIME and leeway enough fear of the events of confusion in the Iraqi market”
Did you read these? This is coming from one of the leading economists in Iraq. So we also heard from Dr Shabibi in a past article telling the GOI and they missed a great opportunity back in 2012-2013 to RV due to corruption. He too mentioned these same mechanisms in his article. Did you read that one from last summer?
Next the article talks about some of the CONCERNS OF THE ADOPTION OF THE PROCESS OF LIFTING THE ZEROS. This part of the article only again reinforces what I have been telling everyone. It is not as easy as just pulling the trigger. Many keep asking why does Iraq not just “pull the trigger” on the RV is they know they need it so much? This information today answers in part this question. There words not mine. I can tell you until I am blue in the face and many still doubt Mnt Goat. So here it is today in black and white. Their words not mine.
I quote from the article the many concerns–
“1) to a lot economists that the process of deleting three zeros will lead to chaos and confusion in the domestic market and the spread of the phenomenon of "monetary illusion" because there are "two currencies" old and new “
2) fear of occurrence of chaos in the Iraqi street and stand in a new queues at the gates banks to replace the current Iraqi banknotes with those of the new banknotes.
3) will contribute to the emergence of speculators on the black market, taking advantage of the chaos that will arise from the process of the currency switch.
4) are fears of counterfeiters and (mafias) money laundering and smugglers currency who will take advantage of the new situation in the "wash" the old Iraqi dinars counterfeit and replaced by new or
5)smuggling of genuine Iraqi dinars out of the country for the purposes of terrorism and organized crime, which will lead to lethality economic security of Iraq
Do you now know why the RV is being held up? Did I bring you enough FACTS to prove my points.
Link to PART 2