Thanks GeorgeH. For sending to Dinar Recaps
UU4092 – “Spring is Time for Change” by Mnt Goat
Spring is here as Bavaria gets its first dose of warmer weather this past week. Snow begins to melt and I look forward to climbing the mountains and enjoying those long hikes and scenic views once again.
This year is a bit different though as my young girls are growing fast and they too now anticipate and tell me how they look forward to those warm summer days of hiking around the Alps with me.
This delights my heart and I secretly cried for joy as I know this will be a life long connection and passion for them too as it has been for me.
Once again it is coming of time to begin planning for our village maypole (or Maibaum) celebration. This is Mein Hubby’s main job now to organize. This celebration comes on 1st May in Bavaria and is a day for the local folklore group and schuhplatters to dress in their finest costumes.
We gather all the villagers together to celebrate this important annual occasion. Our village maypole is uniquely decorated with ribbons, wreaths or signs denoting our present and past local craftsmen’s guilds.
Soon it is time for the brass band to tune up and accompany the dancers well into the night. We have a small local brewery in our village and they brew a lovely traditional dark “Maibock“ beer especially for the occasion.
Our village has a club known as the “Burschenverein” that is akin to Young Future Farmer’s associations in USA?
Long before the 1st May the young men of the Burschenverein go out to the woods to choose a tall straight pine tree that is then felled and hidden away for safe keeping.
Our village does not cut a fresh tree each year, but will renew the maypole only every five years. But Burschenverein is responsible for keeping our recent pole fresh and clean so this is a chore for taking it down to do.
This will happen in these coming weeks. So when we then walk past the platz and see no standing pole we all know spring fest is near and anticipate the early May celebration.
Many ask me why do I tell of these celebrations from this country? First I share in my news letters to friends from northern Germany where they do not celebrate the same, as you see not all of Germany is the same and Bavarians are different.
Next I share with all you dinariams friends from Europe and USA as these are special days in our family and we do not take life for granted. Also there is so much fun and gifts we have in life, simple fun and gifts but you only have to reach out and take them for they are yours.
We do not need high-tech and complicated lives, electronic games, arcades, texting and smart cell phones to enjoy the blessing God has bestowed upon us on this earth. The blessings are for God’s to give to us not these corporate giants.
So let us all settle down, relax and review what has happened this last week. Maybe we can clear up some confusion once again coming out of the “peanut gallery”.
Can we still see a possible window of opportunity for the RV this coming week? I will also attempt to answer many of the questions emailed to me.
You might want to read my news letter from 3/17 if you have not done so already. It will help to better understand what I am about to tell you today.
Today is Saturday March 21th and yes there is still no Iraq currency reinstatement announced to the world. But to all HAPPY SPRING anyhow for I believe that as sure as the snow is slowly melting in Bavaria this currency rollout is occurring before our eyes in Iraq…..lol….lol…..
Did mnt goat say the RV rollout has begun?
Yes I did and this should not be new news to you since I did talk about this in my last news letter. So once again in this news letter I am telling you this slow roll out continues. The major obstacle is ISIS as it is slowing down the rollout more than was in the original plan. But be assured it is occurring.
Some very ignorant dinarians (and I do not use this term lightly) are still writing posts and talking about the IQD rate coming out at the provisional or program rate (around 1166). This is of course foolish and I would have hoped by now at least my readers would know better?
Do we all understand why it could not possible come out on the international exchanges (and this is what we are concerned about) at this very low rate?
I will use a very simple, almost infantile explanation. I hope now you will understand since this seems to be the only one some of you can understand. First we know for a fact that Iraq is already paying out on Qi cards the adjusted rate of $3.91. This is a converted rate from their 1166 program rate to USD.
I always talk in terms of USD conversion since this is still the underlying basis for all currency values like it or not. Also many of you readers are based in USA and will be converted to USD on exchange.
Second if the rate was to come out so low, do you not think the hedge funds and money managers would come in and gobble up trillions worth literally within hours? Of course they would and drive up the value very quickly in doing so.
But where is the initial advantages to the CBI in doing so? Where is your common sense? Iraq would literally have given away their treasures for less than a penny on the dollar.
Like selling a Bently for the price of an old Ford Escort then realizing late it was worth more. Do you understand? This is just not reality!
There are those that fuss and say…but the IMF announced that the IQD will come out par with the USD.
No –this is not what the IMF said. What the IMF said is the IQD would come out at least equal to the value of $1.00 USD. This was referring to what I said above in that they gauge all currencies using the USD as the baseline. The IMF needed a stable currency. They would not RV until it could be valued at least to $1.00. This is all they were saying.
Then in being questioned by the news media in 2010, Dr Shabibi even said the dinar could sustain a value up to $16.00. Why would he say announce this to the world if he intended to come out with initial value of 1166 or 40 cents or even $1.00 ?
Can we please put this one to rest ? The rate upon going international is going to be way over $3.00 ($3.91+).
More news this week
Once again this past Thursday out pops an article telling us that “Iraq's Kurdistan region receives “dues” budget long-awaited Baghdad KRG received in the semi-autonomous northern Iraq, $ 420 million of the budget dues of Baghdad “.
Remember this is a translation form Arabic to English.
So what is this money? I thought we just read in the news last week that Kurdistan was all paid up on any money owed for back payments on oil revenue?
Yes - they were paid but the oil spigot is open and they are producing in upwards of almost twice what they are announcing in the news. I know this for a fact and it is not hard to know since in Kurdistan it is public information. Iraq is floating in oil and floating in revenues. They are RICH !
There is no debt, no deficit ! This money now recently paid was for the 17% due (as it simply says in article “due”) which means “due” for payment on HCL agreement.
These articles will continue as they keep pumping and selling the oil. This is all terrific news and confirms to us once again that HCL is in fact implemented and underway.
The GOI is no longer holding back the revenues or limited payments to 10% or less as in the past under the Maliki administration.
Remember when Kurdistan in the past even shut off the pumps and then diverted oil pipeline to Turkey to avoid Baghdad and control their oil? This aggression towards Baghdad is over and relations have normalized.
So why do they keep telling us this in the news (about a deficit)?
This is simply a diversion tactic being used. The GOI is pretending to the international community that they must go out a borrow funds to meet their budget, as outlined. This simply is not true as they are presenting it.
Yes they do have a liquidity issue in the local banks. This issue stems from the lack of confidence in the banks and the reluctance of the citizens to deposit their funds in them. Do you know how banking works and why banks are important to any successful economy?
Banks are important because they take long term deposits and invest the money.
Some of the investment proceeds go back to the depositor (minimal amount) and some goes towards lending to new investors and entrepreneurs.
The depositors gets a place to park his money and keep it safe, the bank get the funds to help fund a growing economy.
This is what the CBI has meant all along when they claim lack of liquidity in the banks, meaning lack of these deposits to meet the minimum amounts of funds a bank must hold to meet the banking requirements to even be a bank. This forces the banks to market and go out and chase would-be depositors.
So this week out pops yet again another article about the finance committee and its constant concerns about the citizens and their mistrust with the banks-
“Parliamentary Finance Committee confirmed on Thursday that the task of maintaining the citizens' deposits in banks are especially civil CBI functions, noting that bound to support banks in Iraq Committee”.
Said committee member Najiba Najib for "tomorrow Press", "Some people today are reluctant to deposit their money in banks, whether civil or government due to lack of confidence in them, because of a past event or happening right now in a number of banks, which have affected the reputation of other banks, but this does not mean The banking cabin in Iraq is good or untrustworthy,
"pointing out that" a large number of Iraqi private banks participated effectively in building Iraq's economy and supported the development plans. "
She added that "instill confidence among citizens about Iraqi banks as well as for maintaining the financial deposits are from the central bank, which today is trying to push bank deposit protection law to the Council of Ministers tasks and then to the House of Representatives for the legislation,
as well as that of his mission is to monitor banks and ways of dealing with customers depositors a task imposed upon to preserve the depositors' money. "
Comments may be made ata the end of Part 2 Thank You