UU2199 Pivotal Week for Iraq
Today I wanted to drop in and give you an update on the ongoing news about the election process and the RV since I expect this week to be a pivotal week for the country of Iraq. . .
I encourage everyone to go back and please, please read my last 3 news letters dated 6/1. 6/4 and 6/6. The information in these news letters is very important as it leads up to what I am about to tell you.
Sometimes I read the comments given from my news letters and I can tell the reader has not taken the time to read my past news letters or follow the latest news I present. I can sense the frustration but it is up to you to take the time and effort if you truly want to know how this RV is unfolding right in front of our noses.
I am about to tell you what I believe is the current plan. The implementation process of the plan has changed many times but the overall plan has remained basically the same since 2008 in its inception. .
The IQD revaluation we have all been waiting for is within our sights.
I am hearing even more news of movement in a direction of completing the project to restructure the currency. In the CBI there have been articles talking about the immediate need to readily make the in-country revalued currency readily available to the rest of the international community.
I am first going to present some background information in order to drive home my point of substantiating that we are in fact in the final weeks prior to seeing the IQD going international with the revalued rate. I believe all these events are linked together and are just part of the implementation of the plan to kick start the Iraq government and its economy. We are about to see this economy go CRAZY !
Recent Qi Card Changes
Iraq's two biggest state-owned banks, Rafidain Bank and Rasheed Bank, together with the Iraqi Electronic Payment System (IEPS) have established a company called International Smart Card, which have developed a national credit card called 'Qi Card'. The card is issued since 2008. After less than two years of the initial launch of the Qi card solution, they have hit 1.6 million cardholder with the potential to issue 2 million cards by the end of 2010, issuing about 100,000 card monthly is a testament to the huge success of the Qi card solution. Parallel to this will be the expansion into retail stores through a network of points of sales of about 30,000 units by 2015.
The Qi card is similar to other credit cards recognized worldwide with essential difference that the smart card deals with balances without direct contact with the server which is called (offline) to facilitate business in regions of no good telecommunication networks .
So what happened last week with the Qi Cards?
I am telling you all this about the cards in order to first clarify some intel given out about these cards. I want to say that these cards are not new and the event of having them does not necessarily mean the RV is about to happen, as we have seen it did not happen. So no hype on this old news.
The recent significance however is that they are now loading these cards for those who are traveling abroad and for those Iraqi citizens already living in foreign countries. They are issuing them to these citizens for this purpose. So how will they be able to use these cards abroad without an international rate in this manner?
Iraq Stock Exchange (ISX)
Before the 2003 invasion of Iraq, the ISX was called the Baghdad Stock Exchange and was operated by the Iraqi Ministry of Finance. Now it is a self-regulated organization similar to the New York Stock Exchange, owned by the 50 or so member brokerages.
The current Iraq Stock Exchange was incorporated and began operations in June 2004
Beginning in 2004 trading was with pen and paper. Buyers shouted at or called into their brokers, who stood near their whiteboards that listed each company's share buy and sell price. That changed in February 2009, when for the first time since it was launched in the mid-1990s, the Iraq Stock Exchange announced that it would have a computerized system to show the movement of shares.
The ISX opened to foreign investors on August 2, 2007. The market is dominated by a handful of wealthy Iraqis, many of whom live outside the country and call in their orders by phone to brokers.
On April 19, 2009, the ISX switched to electronic trading. Currently, only five companies are available for electronic trading, but more will be added over the next few months.
Now they plan to fully rollout the last phase of the ISX and this phase includes the complete international implementation. Soon the exchange will be accessible to all major global trading platforms. This is planned for July 1st of this year.
June 3 and 4 Judicial Meeting
On June 3 and 4, 2014 The Iraq Federal Judicial Authority and the Embassy of United States of America held a meeting of the Iraq-U.S. Joint Coordination Committee (JCC) on Judicial and Law Enforcement Cooperation in Baghdad. The main topic discussed among other topics included the results from the April 30 election results and the tampering within the voting process and the 800+ appeals submitted. So why have this meeting now at this time?
This meeting comes on the heals of the eve of the announcement of the final election results by the judiciary to the world. One of the reasons for postponing the announcements from the June 1st date to the June 10th date was to allow time to have this meeting and discuss the current plans for the direction of the April elections.
It was important to have this meeting since the USA had plans (or a plot) to allow Maliki to serve a 3rd term and to do this they would have to manipulate the election results within the judiciary’s final ratification.
However resulting from this meeting the plot now has changed. The changes come from pressure from the National Alliance and evidence from the 800+ appeals submitted.
I mentioned this meeting because I am trying to tie all these events together for you to show these meetings are not just happened but are all connected to the current events in Iraq now playing out to substantiate the election results about to be announced.
Recent CBI Announcements
This past week there were statements made by Turki (acting governor of the CBI) stating that the CBI will start the lifting of the 3 zeros and they will be ready for the ISX to start trading internationally on their opening day of July 1st.
Can they postpone this?
I do not believe they can since other plans rely on this action. I also believe they must begin the process of going international with their currency days in advance of that date to be ready.
Tying it all Together
Now having said all this, let us evaluate this background information in conjunction with what I have said in my 6/6 news letter about the election results I said strongly that I believe the USA will not let the currency go international until Iraq election process is completed and they have a stable, working government. This must play out to completion for the RV to be announced.
Did they perhaps schedule the July 1st date for the ISX rollout in conjunction with the election process? Do they have a timeframe in mind that they are driving towards so as to have a stable government to meet the requirements of the USA and also then rollout the currency international in close proximity?
Yes and yes again to all of these questions.I believe this is the plan.
Don’t you think that the USA has told them of their requirement for a stable government? I believe the USA has played a major role in assisting and coaching them on how to play the election politics and to unite the blocs so that this “stability” of the government could have a very strong chance of becoming a reality in the timeframe they need it..
The timelines I have given in my past two news letters line up nicely with the July 1st timeline and as I also said the go-ahead for the international rollout could happen at anytime during these final days of putting this new Iraq government together.
Remember too that tomorrow, Tuesday June10th is a pivotal day for Iraq. What we hear from the judiciary branch on the ratified results will be the determining factor on which way this process will conclude.
Will it be a long drawn out process like in the 2010 elections or a quick resolution?
I am betting on a very quick conclusion, almost like they will go through the formalities because they have to. I believe all the important positions have already been decided on.
From June 10th to mid July we are in the absolute best window ever to see the international announcement of the revalued IQD currency.
Once Parliament is seated
I believe once all the election stuff is completed, the new parliament will get right down to business and go to work. The first task on hand will be passing the 2014 budget and they will open it. The other tasks at hand will be to pass and announce this other set of economic reforms we have been waiting on so long. At this time the currency will have already been announced international.
Worries about Nori Al-Maliki
I want to reiterate that Maliki is leaving come June 14th. He is now worried about what will happen to him after his mandate as Prime Minister expires. Also at this time his immunity protection also expires. The UN International Police (Interpol) also has opened many of the files on his corruption (as handed to them by political leaders of Iraq and the USA) and he is almost certain to be indicted for crimes against humanity and terrorism. This should be interesting to see how it all plays out in the coming months.
My fear now is what violence will Maliki instigate in his time remaining or what calling card will he leave behind in the wake of his final days.
We have been thinking that he would probably not leave gracefully or a peacefully legacy and we are seeing that this is all playing out as predicted. The news about the violence in Anbar and Fallugah is not encouraging and is know to be instigated by Maliki and his goons.
In today’s news letter I am giving you some timelines. Why?
I have devoted past news letter to these timelines because I want all of us to be watchful for the completion of these events tied to these timelines.
I believe fully that seeing the announcement of the IQD revaluation is now tied to these events.
I believe the RV could happen as any stage of the process after June 10th but I am saying it is most likely to happen just before or just after the announcement of the newly formed government’s completion and before the expected July 1st ISX rollout.
We are now absolutely in the best window ever to see the international rollout of the IQD revaluation.
We have just entered one of the most exciting weeks ever for Iraq and for this speculative investment of the IQD.
The IQD rate will be high when it comes out and it will climb very quickly.
The projections for the IFX this week and the amount of CBI reserves (and gold) is an indicator of this.
Iraq has met all necessary Basel III requirements and beyond for valuation of a very, very high rate as an asset backed currency.