Next let us talk about the Customs and Tariffs law. According to sources in Iraq, parliamentary finance reveal activation of customs tariffs starting from Friday 01/01/2016. We wait to hear the results. So far we see that progress is very slow. We are getting bits and pieces of them trying to establish common boarder crossing procedures such as announcing today the launch of the ePassport and electronic gates at border crossing points in the country.
Next let us discuss two more very important laws that also must be passed or no RV. I have also told you many times about these two laws including 1) OIL AND GAS LAW (HCL) and 2) FEDERAL COUNCIL (FEDERATION COUNCIL).
So recently out pops this article that is telling us the current status of these laws. These laws are mandated by the UN and the USA and are part of “fully” implementing their constitution, which is needed prior to any RV.
Let’s talk about the Hydrogen Carbon Law (HCL)
First of all do many of you really know what the HCL is? I just told you what the acronym stands for but do you know what it means?
Remember that oil right now is 90% of the cash cow for Iraq. There is little diversification for revenues (future plans). This of course will change over the next 5 years since Iraq has learned their lesson over this latest economic crisis such as in the drop of oil prices. So how do they manage this precious commodity of oil?
The coalition forces were not stupid. They knew that when they help draw up the new constitution for Iraq they must put some provisions in it to mandate that oil revenues be used appropriately for the country as a whole and not scarped up by some powerful politicians, neighboring countries and used for personal wealth/gain.
Thus the new constitution included provisions allowing for sharing of the oil revenues which include: How the revenues will be collected, held and distributed? Who will make the oil deals (sell the oil) ? Who will pump it? How will the quotas be established? Mandated distribution of excess oil revenues must go to the people, much like they do in the USA Alaskan oil pipeline. After all if you have a democracy the wealth belongs to all the citizens. So how do they implement this oil and gas provisions in the constitution? This is the oil and gas law or so called the hydrogen carbon law (HCL).
So I presented just a brief outline of the issues in dealing with the Iraqi oil and creating fairness. I can assure you it is much more involved and so can you see why they are taking so much time. It is also very controversial.
But there is a more important part to HCL. This is the part you all really want to know about. Some say this part is the reason why HCL is being intentionally with held from the final gazette publication . What I am about to tell you is the connection between the RV and HCL. LISTEN CAREFULLY!
In the new constitution it specifies that the oil revenue sharing to the people will be equivelant to about $1.17 of US dollars. What does this mean?
This is the LEGAL EXCUSE for the CBI to jump the rate of the dinar up to and just over the par value with the US dollar. In fact it is a mandated excuse by the Iraqi constitution. Did you hear me? I told you many times that all of a sudden on day the CBI will pop out the new rate. This in one source that gives them the mandated legal right to do it. Certainly the rate is not going to float from where it is like many are following…how foolish! There are a couple other ways too and I will talk about them next. But the key is once they do pop out this new rate they must be prepared to sustain it and let the free markets drive it going forward. Are they ready? NO!
But what does this really mean?
It means that when they pass the HCL and president Masuam ratifies it we could see a change in the rate to meet this mandate. But this is only true when and if they decide to pay the oil shares to the people. They could still hold back longer if they wanted. But why would they? Maybe because they need a delay due to their economic situation? Anyhow…..
Now the other reason to that mandates a significant increase in the value of the dinar is the payment of on the long term government pensions. Again the constitution mandates that pensions will be paid out on an equivalent to $1.13 to the US dollar. These payments coincide with the launching of the new National Card (new SMART card). We have seen them struggling now for over a year attempting to get these cards completed. The delays were caused mostly due to ISIS occupying the regions. Now that they are being cleared will we see a completion of this effort? We are now hearing this may happen very soon as they now are distributing these cards to people in the areas just free of ISIS occupation. So this is the second way they are legally mandated/obligated to pop out an increase. Again I say they can hold if back due to the economic situation as long as they need to but certainly not forever.
But there is a third way too to legally allow the increase in the value of the dinar. This is through the launching of the lower denominations and the minted coins. This is the “official” process of the reintroducing of the permanent currency (going from post war isolation to international) through currency reform.
What do I believe will happen?
I believe all three events will happen consecutively started by the currency reform and then payments out on the National cards will be loaded with the new rate for Pensions and HCL funds. These will all occur simultaneously. This is the plan I am hearing from my Iraq government contact.
So if you are smart you can connect the dots here and see that they are trying to plan all these three events together since they do not want to payout HCL or Pensions money with the new rate unless they are ready to launch the lower denominations at the same time. Is it hard to understand?
You can’t mix apples with oranges and expect to get the same juice (results) so it is too with this process.
Think of it this way – How could you pay out $1.17 for HCL and manage the currency? How could this be done unless you had the lower denominations out. But remember too these payments are on the cards and the cards are debit cards to be used at the markets so no real cash is transacted unless you go to an ATM machine or the bank to get cash (hard currency). This is where it would get sticky and hard to manage without a paper currency in the lower denominations to back up these new rates.
Can you see the connection? Imagine taking your $25,000 note to the market place and it is now worth $25,000 x $1.17 = $29,250.00 USD. How would the merchant make change for you? They would need all these $25,000 notes exchanged first so the risk of using them in the market would be less. Remember too they would also need the adjust the prices down for inflation adjustment (now deflation) and so they would need the lower denoms to do this.
Certainly the CBI is NOT now floating the rate of the dinar as we can watch and see the CBI can not control the value of the dinar. So if you are watching it daily in expectations that it will float up to the needed rate just over one US dollar – good luck with that since it is a waist of your time. But then again those that do this do not know the process or listen to those that do. They are stubborn and will have it only their way which is the wrong way.
I know many of you are confused over the HCL since you heard from Iraq in the past it was passed many times already. So let me address this concern now.
All I can add to this is we must be careful on “what” legislative branch completed and where they were in their process of the law. We must pay attention to what the article is referring to when they say “passed”. I have warned everyone of this mistake in the past.
We must ask ourselves – Where is the law being passed? Was it in the council of ministers?. Was it passing in the Kurdistan parliament? Was it passing in the house of representatives - parliament ?
Remember these are three separate legislative entities and all must at some time “pass” the HCL through. But the final voting will be the GOI parliament and this is now what they are talking about. This is now what we need.
What the past news did tell us was the HCL was passed and completed in the Kurdistan parliament and then we witnessed the passing in the council of ministers. Just recently we read more on the amendments going through the Kudistan and the council of ministers again dealing with the Kirkuk oil issue (I talked about this many times).
So where do they stand today as I write this news letter? The HCL must officially go through the GOI and be voted on and passed by parliament. I believe the are stalling this for reasons I described above. According to my explanation above is that once they do pass the HCL in parliament of the GOI and implement it they must launch a significant increase in the rate of the dinar, as mandated. So can you see why they could stall this as long as the want until they are ready for some kind of RV. Places they can still stall it – taking the final vote, ratify it by president Masuam and then they must still publish it in the gazette. So three more hurdles to go…lol…lol…
There is no sound or logical basis to back up this claim that is all done and passed.
Today I present three very important articles on the HCL. You can see the timeline and sequence of what they are planning to do and how it will all play out. I have never seen so much pressure and enthusiasm before about getting HCL done. Why?
I have just told you why in my above explanation as they need to soon pop out the HCL money on the National cards to the people and coordinate this effort with the launching of the lower denominations with the project to delete the zeros.
So from this news letter you now know the three ways they can significantly increase the rate of the dinar and how they need to coordinate all these 3 events carefully as not to foul it up.
So remember this going forward and apply it to what you read and hear
So thinking about this we are told they intend to continue the project to delete the zeros in late January / early February 2016. Can you now see the urgency to getting 1) the National Cards done 2) HCL done 3) getting whatever they need to do to complete the National Reconciliation (the needed laws). All of these events will bring the power needed to significantly increase the value of the Iraqi dinar. Can you see why I am so excited and so should you. The only question is can they do it on time? I believe strongly this is their new target.
I quote from the articles below - "Iraqi news agency", that "all outstanding problems between the Kurdistan Alliance and other alliances have been resolved once and for all, but the oil and gas law, which is still pending until the moment."
So what is the timeline for the vote on the HCL?
Again I quote from the articles below – “A member of the Commission on oil and energy parliamentary, beauty Panthers, Sunday, continuing disagreements political blocs legislation on oil and gas law, expected arrival at the Parliament of the government DURING THE MONTH” (meaning the month of January 2016).
So we wait and watch as this month is going to be another pivotal month for Iraq. I suspect that if we don’t get the RV in January and we have to move into February we will be soo do damn close to the start up of the currency reform again that the hairs will be standing up on our necks in anticipation….lol….lol…
But do yourselves a favor….please do not tune into these so called “gurus” conference calls that do not give you any real news. Spend your time instead doing your own research and re-reading the articles. You will be much better off and with less anxiety when the RV does not happen tomorrow as these people claim it will. Just remember too the law of Karma – “what goes around, comes around”. There is no escaping this principle as the universe works in strange ways to right the injustices.
KURDISH LAWMAKER: THE NEED FOR LEGAL APPROVAL OF OIL AND GAS AND THE FEDERAL COUNCIL OF THE YEAR
Deputy for the coalition of Kurdish blocs stressed the need to pass the House of Representatives legal oil and gas and the Federal Council during the current year 2016.
Said Abdul Bari Zebari told all of Iraq news, "THE APPROVAL OF OIL AND GAS LAW IN 2016 should be among the priorities of Parliament, as it will be a modern arena during the coming days, the fact that most of the problems arising because of him."
He said Zebari to "THERE ARE OTHER LAW JUST AS IMPORTANT AS OIL AND GAS LAW, THE FORMATION OF THE FEDERAL COUNCIL, because the constitution stipulated that formed during the first parliamentary session and we are now at the third session and the project remains unclear."
He stressed that "the Federal Council is the guarantee and the bumper of any law imposes a majority in the House of Representatives and is also a guarantee of blocks, components and Afez their rights, because he can now majority to impose any law you want to do, especially with the absence of a right of opinion for the Presidency.
"He was a member of the Commission on oil and energy parliamentary Razak Mahabs, expressed in 13 of October in 2015, for the determination of the committee drafting a new project for oil and gas in the event of the government delayed sending to the House of Representatives.
The Commission on oil and energy parliamentary, said in a 30 June 2015, the oil and gas law still hang at the government.
The oil and gas law of important laws , but he had previously introduced in the previous legislative session of Parliament, did not get the agreement passed.
It is said that the Federal Council Law also still hang not be approved
PARLIAMENTARY ENERGY: OIL AND GAS LAW WILL REACH PARLIAMENT THIS MONTH
Baghdad - INA / A member of the Commission on oil and energy parliamentary, beauty Panthers, Sunday, continuing disagreements political blocs legislation on oil and gas law, expected arrival at the Parliament of the government during the month.
Joker and said the "Iraqi news agency", that "all outstanding problems between the Kurdistan Alliance and other alliances have been resolved once and for all, but the oil and gas law, which is still pending until the moment."
He added that "there is substantial negotiations are in full swing in order to resolve the enactment of the law after receiving the Council of Ministers during this month."
He pointed out that "the enactment of the law will ensure the right of the provinces producing oil and gas in the coming budgets without entering discussions and speculations on the legislation."
THE COMPLETION OF THE OIL AGREEMENT PLUGGING THE BUDGET DEFICIT
BAGHDAD - Muhannad Abdul Wahab
Confirmed for the Oil and Energy Committee in the House of Representatives it is continuing to work to accomplish for the regulation of oil exports and imports generated by this wealth bills, stressing the need to oil exports increase in practice through the preparation and the creation of laws pertaining to this matter, to be presented for discussion at the Council House and voted on and then approved.
The Chairman of the Commission on oil and energy Ares Abdullah, the "morning": that "the Committee examined and discussed in their meetings laws referred to it projects, for the purpose of submission to the House of Representatives, to read a first reading, and to address the government on its position on the formula that you have sent in Previous laws to the Commission, and the formation of a sub-committee members, to determine the priorities of the laws referred to, such as the draft second amendment to the law on investment in the crude oil No. 64 filter for the year 2007, and the law exempting foreign companies and sub-contractors and foreign contractors in licensing rounds of fee contracts in the bill law ", adding that" The committee expressed its observations on the recent law.
said Abdullah," The Committee also discussed the draft law to determine the provinces producing and non-producing share, as expressed observations on the wording of a number of materials, particularly Article 3 of the law relating to the validity of the Council of Ministers reconsider the percentages granted to the provinces producing oil, as the Commission decided to agree on the abolition of this article, and voted to proceed introduced a draft law on the presidency of the Council with a view to legislation.
"He continued that" the Committee also discussed the topics finance the federal budget for 2015 and accruals oil companies operating in rounds licenses and Midland Refineries Company in the presence of the parliamentary finance committee. "
Statement of the oil agreement
He revealed Abdullah, for the issuance of the Commission statement on Baghdad and Erbil oil agreement, with the announcement that the Iraqi governorates outside the Kurdistan region will get the 83 percent of imports exporting oil region in the event of the success of the implementation of the agreement Alnafty.odaa Committee's statement, all parties and political blocs to ensure the success of this agreement in the best interest of the people, especially that this agreement will support the Iraqi economy and contribute to bridging the deficit in the general budget of the country through imports of oil Alakulaim.obin that "the supervisory role played by the committee was important to discuss the issue of lack of staff of the Ministry of Industry companies pay of being self-financing companies and unproductive now, where it was agreed to discuss the matter with the Finance Committee to reach a solution, and discuss the reasons for non-arrival of the product to the citizens in Anbar province and sell it on the black market or smuggled to Daash ".
Furthermore, said Chairman of the Oil and Energy Committee, to the host and Electricity Minister Qassim Fahdawi and officials in the ministry, came to discuss the ministry's plans for electricity production until the year 2020 and to activate the investment side in the sector and re-pricing of Alkahraba.oadav wages "as members of the Committee discussed ways to achieve reliance on alternative energies, and the factors that hinder the arrival of the oil product to Anbar province, where it was agreed to Overture Anbar Operations Command and other security agencies to make a list of the names of the liberated areas and finding safe ways to deliver these products.
"He noted the Chairman of the Commission on oil and energy to the host committee for the Oil Minister Adel Abdul-Mahdi and a number of general managers in the ministry, to discuss the recent oil understanding between the federal government and the Kurdistan Regional Government and discuss plans developed by the Ministry of Oil in regards to the production and export of crude oil for 2016, its future prospects and benefits companies within the licensing rounds.
Distribution of wealth
In turn, Deputy Chairman of the oil Bahadli, "The visits of the Commission to the Kurdistan region, discussed the oil policy in the region, and the willingness of the Ministry of Natural Resources to cooperate with the federal government to resolve all outstanding issues and agree on communication and coordination between the two sides and work on the convergence of views as part of the role Supervisory Committee.
"said Bahadli" morning ": that" it was agreed to a legal oil and gas, financial resources and the equitable distribution of the wealth of the Iraqi people and the concerted efforts to fight Daash approval, being the enemy of all, "revealing the conclusion of a memorandum of understanding between the Commission on oil and energy parliamentary and the Committee on Industry and energy and natural resources in the region's parliament, includes a number of principles and see, supervision and follow-up on the agreements between the federal and provincial government in the oil, power, gas and natural resources areas of agreements and work on sustainability and implementation and to identify the obstacles they face and to express an opinion to the convergence of views, pointing out that the note included the principle of joint cooperation to study the draft laws relating to oil and gas, energy, natural resources and other relevant laws under the Constitution.
Draw Bahadli that the committee visited the Maysan province, to attend a conference Exhibition and Conference Misan Second International Energy and Construction (science, technology and means of development and innovation), and visit one of the oil wells in the Halfaya field for the functioning of the said meeting field with a field project Halfaya Chinese company manager ( Petro China Halfaya) for the company's work mechanism and put the problems and constraints affecting the Amlha.obin "The committee met with French Ambassador Marc Baretti to Iraq, economic adviser at the embassy to discuss the situation in Iraq in the areas of security, economy and ways to develop relations and common interests to serve the two countries, especially in the oil and energy sector Coinciding with the decline in oil prices in the world markets
and lack of stability. "
Update: Currency Reform
We still await for the “official” word from the CBI to allow the distribution of the new lower denominations. We know 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.
This is NOT the RV but an inflation adjustment and only an incentive to “dedollarize” the economy and reverse the trend in demand from the US dollar to the Iraqi dinar thus increase the demand for the new lower denominations. This would thus allow Iraq to withdraw or “de-dollarize” their economy as they would suck up US dollars are replace them with the lower denominations. This would happen because the citizens would migrate towards the new dinar since it would be worth more than the dollar.
Do they need a very significant increase in order to do this?
NO! All they need in-country is a value to the new dinar to be just over a dollar to create this incentive.
Is this the RV we have been waiting for?
NO! – this move to a 1:1 par with the US dollar ($1.13, $1.17) is just an inflationary measure they will undertake. The full RV ($4.00+) we are waiting for will come later and will depend on how stable the economy is and how this whole process works out. It may take longer or it may be shorter.
Next I am presenting the article below to tell you not to panic over this news. Again this news is only a suggestion not an action.
This article talks about a proposal. It is only a PROPOSAL put on the table by parliament to try to find a way to pay the salaries since they are under such pressure to do so. Some news station got a hold of it and published an article on it. So relax.
I quote from the article – “"The central government has received proposals by some parliamentary bodies and a number of ministers, requires raising the value of the dollar to 200 thousand dinars per hundred dollars”
GOVERNMENT IS MOVING TOWARD RAISING THE VALUE OF THE DOLLAR TO 200 TO COVER THE SALARIES OF ITS EMPLOYEES
Tomorrow Press / Baghdad:
Heading the Iraqi government, during the current year to raise the value of the dollar against the Iraqi dinar to 200 thousand dinars for every $ 100, instead of 120 thousand dinars, including an attempt to cover employees' salaries.
A source in the Finance Committee of the House of Representatives, who declined to reveal his name, in an interview for "tomorrow Press", "The central government has received proposals by some parliamentary bodies and a number of ministers, requires raising the value of the dollar to 200 thousand dinars per hundred dollars, in order to fill The cover staff salaries, which have become the government unable to pay in light of the continuing decline of oil prices. "The source added that" the only aggrieved of this procedure is the employee, where the prices of goods will rise in full, as the Iraq imports simplest things from abroad because of the lack of local industries and the payment of such goods prices. "
Next I present to you an article about these gold coins, many of you have already heard about. So what does this article tell us and why is it important to the RV?
First they told us they were planning this effort back last January 2014 but postponed it. Why?
I believe they postponed this effort back then because they were not ready to move on the process of currency reform and move to the next step. I believe these coins will such in yet more of the 3 zero notes but more significantly will create some stability in the existing currency and help to push up its value overtime.
Second they have come right out and told us this move is related to currency reform since what is the mandate for the CBI?
I quote from the article itself – “the foundations of an independent Iraqi Central Bank as a bank under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies being sessions daily for buying and selling currencies.”
So they are up to something with these gold coins and there is much more than meets the eye…lol…let’s watch and see how all this plays out.
CENTRAL BANK OF IRAQ MINTED A 100 DINAR COIN(GOLD) WHICH WILL BE SOLD BY BANKS
Thursday January 7, 2016 15:09
Alsumaria News Baghdad Central Bank, Thursday called on banks to purchase gold coins gold, while noting the arrival of a coin 100 dinars, the price reached 720 thousand dinars.
The Bank said in a statement the Sumerian news copy, ' with a view to diversifying public savings and to ensure he receives 24 karat gold has partnered with an international company of 5000 minted a commemorative gold coin ', adding that ' coins are of class 100 dinars weighing 15 grams to eighty-fourth anniversary of the founding of the Iraqi Monetary Authority 1930, plus a 5000 JD 250 class coin weight 22 grams to mark the eighth anniversary of the founding of the Iraqi Central Bank in 1947.
The Bank said it received the first of these coins that weigh 15 gram ', stating that he ' will be offered for sale through banks that will define them.
He said that the bank was determined the sale price of banks on the basis of cost and out of Baghdad International Airport plus administrative Downloads 1% of the cost to be the price per minted from this category by 720 000 dinars. '
The Central Bank, in January 2014, its intention to sell gold different weights for those wishing to purchase it from the citizens, adding that he began contracting procedures for imported and then sold through the banking system.
And the foundations of an independent Iraqi Central Bank as a bank under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies being sessions daily for buying and selling currencies.
Iraq News Sources-Self Education
I have talked about all of you dinarians getting control of your own news and finding sources first hand to get all the news you need to know for yourselves. How can you trust these conference calls and info they distribute the to public?
Stop listening to these so called intel “gurus” and their conference calls who think they know it all and yet know very little of nothing of any value that you truly need to know.
Now I am giving you the links to some common online news sources s that you too can research for yourself. Good luck and happy reading!
Please copy these down or save this news letter.
Note: This is the last time I am going to publish these news sources.
Here is a very good translator engine if you need one. I do not recommend the google translator.
TAKE CONTROL OF YOUR OWN NEWS ABOUT YOUR INVESTMENT!
NO Hype, NO Rumors, just the FACTS !
Update: Fighting ISIS
IRAQI AIR FORCE AND COALITION AIRCRAFT CARRIED OUT SEVERAL RAIDS IN SALAH AL-DIN AND NINAWA
History of edits:: 2016/1/7 18:56 • 47 visits readable
Carried out the Iraqi air force and the international airline alliance raids targeted several hideouts and gatherings of terrorist gangs Daash in Salahuddin and Nineveh.
A statement from the Joint Special Operations Command, received by all of Iraq [where] a copy of it, that "the aircraft air force carried out strikes targeted a gathering of terrorist elements Daash in Samarra Island resulted in the killing of tens of terrorists and wounding others and destroying 12 wheel, according to the CIA and federal investigations Information in the Ministry of internal.
"The statement added that" coalition aircraft carried out an air strike targeted locations and concentrations of elements Daash terrorist in the district of Tal Afar, Sinjar and urban areas, based on the agency's knowledge.
"The statement continued, the raids resulted in the destruction of a number of the wheels and killed 15 terrorists and processing store an improvised explosive device in Alaaadih Pasha longitudinal area at the entrance of Tal Afar, Osafaran fully stored destruction and killing a number of terrorists.
"The strikes have killed a large number of terrorist Anasrdaash including Arabs citizenship and the destruction and burning of a number of Jlathm, in the urban area." addressed raids also a number of mined wheels in Village Tmarat and the Hranh, and resulted in the killing of nine terrorists and injuring seven others and destroy all the wheels.
In addition, the raids targeted a large gathering of terrorist elements Daash in hand Alkiroan- Blige south of Sinjar and 3 wheels bomb Cyril type resulted in the destruction mined wheels and killed 18 terrorists and injuring 9 others.
"As the raids targeted Crane and two leaders in the village of Mullah Daash Jassim of the district of Tall Afar were used to booby-trapping wheels and rocket manufacturing, where Alucran been destroyed completely and kill all the terrorists inside"
One more item today:
Let’s not forget to keep praying for the success of THESE IRAQI AND COALITION SOLDIERS. I believe their success is in part some of the acceleration of the process we are now witnessing.
“Lord, protect Abadi and all who stand with him in righteousness, the Iraq and Coalition Soldiers who are fighting the good fight against terrorism, that they would be shielded from the enemy and would be Victorious against them! We ask that the Victory comes swiftly and healing of the Iraqi peoples and all whom have been effected by these evil doers can begin!
We pray for the process of the currency reform, the full implementation of the Iraqi economy to full international status and the bringing of prosperity and wealth to its people“ Amen!
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,