(Thank you George for emailing this to Recaps.)
UU3033 – “Just How Close Are We?” by Mnt Goat
Just returned from a week long wonderful winter vacation in the USA. This year Meine Kinder wanted to come to visit USA and see Disneyland. It was a fun filled trip. I was amazed on how it has changed and enlarged since I was a kinder. As you know I am originally an American citizen and so is Meine Hubby. So we met relatives in Florida and visited with them too on this trip. Of course for Meine Hubby and I were in it mostly for the warmer climate and not so much the Micky Mouse stuff……lol…..
Let us review what has happened this last past period and in this ongoing saga of the revaluation of the Iraqi dinar. Please read the past news letter dated 2/20 (LINK) to better understand this news of today.
Today is already Wednesday March 4th and still no RV. Why?
What we do know is we recently witnessed the posting of the completed budget in the gazette and were told two weeks ago that payments to the provinces, based on the stated amounts in the budget, would begin last week. These payments would support the needed projects and programs in support of the needed “agreed to” reforms to unite Iraq.
Did this happen as they told us?
Yes the funding did begin, but as I mentioned to you in my previous news letters, the funding would be very limited unless the economic reforms are completed and in particular the currency reform. So yes- the payments to the provinces have begun and there is now extreme pressure to complete the process so the funding can continue. We are talking about $119 trillion dinars (at 1166 rate) or $119 billion dinars at a new rate ($3.22+). Not a simple process. I personally believe Iraq would have holding off any payments has it not been for extreme pressure for the provinces, especially Kurdistan, to pay their bills.
Remember there is nothing and I say again NOTHING that the CBI, the government of Iraq or the Finance Committee is saying right now that tells us DIRECTLY that they intent to revalue their currency. But let’s use our common sense on this one.
So what is Mnt Goat saying? Is she nuts?
No I am not crazy but I want you all to put this situation into perspective. So let me be very clear now in this news letter. This is not meant to be a gloomy news letter since I do believe this revaluation is just around the bend. It has to be and if you know anything about this investment and have been reading my ongoing news letters you know why.
Of course we all want a revaluation of the IQD now. After all this is what this news letter is all about – to inform you of the progress of this process. But the issue we should be paying most attention to is the new banking practices and all the financial “stuff” going on to set up to make Iraq international and moving into the 21st century in the area. Just look at all that has come out in the news over these last couple months in this area of concern. They are indirectly indicating to us something much more about to happen. Something huge, very huge! If you were the CBI would you not want to take this opportunity to push out a higher rate and get off the PROGRAM rate of your currency if you were to go international? So calm down and relax. I believe this is all about to come very soon. But how to I know this for a fact? BECAUSE I TAKE IT UPON MYSELF TO READ THE ARTICLES AND THE NEWS FROM IRAQ ITSELF !
What did just recently happen?
-Tariffs implemented as of March 1st – How? ;
-New Tax Laws went into effect March 1st – How? ;
-All back pay for military paid out March 1st – How? ;
-Kurdistan paid share of oil revenues retroactive to a 1st 2014 ;
-Federation Council power sharing now fully implemented and part of the legislative process (more decentralization of the govt –thus movement away from any potential dictatorship tendency) ;
-The transfer of centralized ministry powers to the de-centralized provincial governments is now underway and a long term weekly plan is outlined and underway;
-Project to disperse lower denoms at the local banks began (but unfortunately was cut short due to terrorism once again)
Iraq for all practical purposes is now international (in technical terms only). But yet they can’t fully enter the World Trade Organization (WTO) without a tradable currency. We have witnessed the buildup for this effort too. They also can not properly do business with the international community without an international currency at a fair market rate. But why not just use the 1166 rate? It is stable now for over 10 years. Because it does not reflect the TRUE market rate of the countries assets of the new Basil III requirements all have agreed to. Also the provisional or “program” rate was never, never meant to be permanent. The plan was just not designed this way. The plan has called for a permanent “reinstatement” of their currency eventually. I know for fact they intended this already to be accomplished by now and it is well overdue.
Since the last 8 years of the Maliki government was not exactly pro- democracy (an understatement) Iraq now has to make up time and push these democratic principles and non-sectarian efforts forward. Since the sectarianism was wide spread the level of trust in any government headed by a Shuite administration (the prime minister according the Iraqi constitution MUST go to a Shuite). So Abadi and his cabinet are not to be trusted lightly and must constantly prove themselves. The fact that the prior prime minister, responsible for this mess in the first place, is also still around and is now a part of this new government. This worries many. This a major obstacle in the trust factor.
For many this may seem a plausible forgone conclusion that there will be an increase in the value of the Iraqi dinar but for those who truly know the grand scheme of the plan (from the start) we do not have to keep asking this question as to whether they plan to bring back their currency to at least a pre-war plus equity value. We instead KNOW for certainty this is the plan and we believe they are now undertaking this last step in the process but first they need the following to see this to the final conclusion:
- stability both political and on the streets
- necessary laws to backup the 2014 budget (National Guard law second reading this week, full Amnesty still under debate, need the Accountability and Justice law)
- full implementation of the constitution (already done)
Some say their will never be stability on the streets of Iraq and the secs will always be fighting. I say to some degree you are correct in thinking this but they are not searching for a level of total peace between these tribes. I believe they need a level of relative peace so that they can function as a nation and to guarantee that investors will not lose out in the long run, should they come to Iraq and do business. It is that simple !
The head of the National Reconciliation Commission in the House of Representatives, Hisham al-Suhail in an exclusive interview with "tomorrow", said that "national reconciliation project still ranges in place and there are no practical steps towards the activation and development among members of society," pointing out that he "met with President Fuad Masum in the previous period to activate national reconciliation, accountability and justice
In my opinion is that we will not see any final steps towards the activation of a new currency until national reconciliation can happen and this will never happen unless Maliki and his goons are out of the picture. I keep trying to tell myself this is not the case but over and over again Maliki is determined to breakdown any efforts of peace and reconciliation with his propaganda machine and local militia groups. He gets away with this too since his is one of the vice presidents.
Link to Part 2