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UU0406 - “ Formal Announcement is Coming”
I come to you today to give you a recent update on the election process and how this relates towards the international rollout of the IQD for Iraq.
Note: If you have not read my previous news letter from Wednesday 8/20, I encourage you to first read it. Today's news letter, as in all my news letters, is a continuation of the ongoing saga of the IQD RV process.
Today is Monday 08/25 and still no formal announcement of the fully formed and seated government of Iraq. Why?
Haider Al-Abadi, the prime minister, did schedule a news conference for today and all thought this would be the time of the announcement. We were all anxious to hear the news. The news conference was completed and let me tell you what was said and why.
The Kurdish team met with Abadi and Parliament Speaker Salim Jubouri on Saturday following meetings with the Shia-led National Alliance and President Fouad Massoum on Friday. All of the consultations have been positive, Balatayi said.
“We showed that we aren’t in a hurry to form the new government; we are more in a hurry to have our conditions met,” said Zana Rustay, another Kurdish negotiator.
The Kurdistan negotiators are making several demands of the new government, including implementing the hydrogen carbon law (HCL) sending the Kurdistan Regional Government (KRG) its share of Iraq’s oil revenue, Article 140 (formal announcement of the outcome of the disputed lands), arming the Peshmerga forces and settling disputes over oil in the Kurdistan Region.
“The Kurdish parties have agreed to ensure the Kurdish conditions are met first and then talking about the Kurdish posts in the Iraqi government because the Kurdish posts in the Iraqi government are secondary to the conditions Kurds have set. So this negotiating is taking longer than expected.
Personally I do not think they will wait for these conditions to be met since Abadi did give them his word and assurance that all these items would be addressed shortly but first they needed a new government in order to do so. So what makes me think this?
Now it is a matter of trust in dealing with the new faces of the GOI by all the blocs. They have already proven themselves since they did isolate Nori Al-Maliki and are moving forward with a new attitude for the government rid of Maliki, his goons and the sectarian (or prejudice) thinking, I feel this level of trust is high and all will continue in good fate.
Also on Friday, the Grand Ayatollah Ali al-Sistani spoke out and warned Iraqi parties not to set conditions for participating in the government. He said the cabinet should include leaders who represent all citizens and warned that "any demands and conditions could derail the forming of the new government."
This is all good news to me and tells me once again they are not going to wait to settle all these conditions prior to the announcement of their new government.
Another recent factor to consider:
"The Acting Defense Minister, Sadoun al-Jobouri, and some key security officials attended the last session to discuss the massacre of Speicher Camp in Tikrit,".
Security is still a huge concern and must be at a reasonable level prior to this economy taking off.
Iraq's Prime Minister-designate Haider al-Abadi said today (Monday) that talks on forming a new government were constructive and predicted a "clear vision" on a unified administration would emerge within the next two days.
Looks like they postponed the announcement again for a few more days. Why?
The Parliament delayed their session this morning until 2:30 PM today, so Dr. Jobouri President of the Parliament could meet the families of the Speicher Camp massacre. Dr. Abadi said the formation of the government was very positive, and would be finished and announced WITHIN 2 DAYS and I believe this is now our new window.
Earlier last week Abadi had stated the Iraq would make the formal announcement on Monday 8/25 today. This was delayed from the 8/11 date they originally gave us.
I will say again that I can only guess they must wait for some reason to conform to this new targeted announcement date. There is a reason for them to keep pushing it out.
Can it be that this date is being aligned with other announcements or other events too? Could they have been asked by the international community to wait? Could it be that they are moving so quickly in forming this new government they are getting ahead of themselves, ahead of a larger plan?
In my last news letter dated 8/23 I talked about how the USA and the IMF is going to deal with the recent derivatives defaulting issue in the banks. As you all should know this is a serious situation and since the banks would once again have to fork over very large sums (in the billions) to cover these losses. Yes – they are asking Uncle Sam for yet another bailout. No kidding!
Yet they have made recently record returns from investors and shareholders too. The USA taxpayers would never go along with another bailout of this magnitude since in the last bailout billions is still unaccounted for and thought to be massive corruption in this area (does it surprise you? ).
I have been told that in last week’s G20 summit meeting this was all ironed out and two options were given to the USA to resolve this issue. One option involves the USA being bailed out by the IMF for a portion while the banks absorb the rest.
The other option was for the USA to sink and default to investors. This would be devastating for the USA economy and would also effect the global financial sectors, something the IMF has been working so hard on to prevent another disaster of this magnitude since 2008.
I have heard the USA has chosen the lesser of the two evils. Since if they pick option one they will have to give up those UN voting rights that they have been pressured to do since earlier this year. Yes – this has been brought to the table once again and used as a bargaining chip by the IMF to get what all parties need. You will not find this in the mainstream news media since they decided to keep all this hush hush.
Now that this decision has been made this lessens any resistance the USA may have had to releasing the currency of Iraq and letting them finally join the international financial community. Could this have been why Iraq was told to hold off making their announcement of a formed government until all this can be ironed out? I believe it is part of the delay.
So today’s news is good news but not what we expected to hear.
What can we expect next?
So we now wait and see if they live up to their promised 2 day extension in making the announcement or will they postpone it again? They have already postponed it twice.
We are reading all the articles out of Iraq now concentrating on “trust” factors with Kurdistan and the new government. They want what was promised to them four years ago. They need the promised oil revenues now more than ever in their fighting with the Islamic militants.
They require getting their fare share as promised by the constitution and nothing else. They no longer trust the outgoing Maliki government and will not participate in the new government unless something is done to show good fate that this new government is not going to be like the old one. Can you blame them?
The Finance Ministry too has spoken out this late last week telling us that they do not intent to issue the new 10,000 coins since the metal on the new coin is worth more that its face value. Why then print the new coin unless you have future plans to significantly increase it’s value?
The money auctions were also held once again and if you look at the results this is telling us once again they can sustain the value of the dinar. It also tells us they are in desperate need to get the new government announced and back to business.
This business would include getting the 2014 budget approved and opened so they can spend it. It also tells me they desperately need a currency worth something so they can deal with the rest of the global economy.
This recent rice deal with India is just another example of the currency obstacle they encounter every time they attempt now to deal with another global nation in a transaction of this magnitude.
So having their currency go global and putting a fair international rate on is the tidy ribbon wrapped around this package of laws they are about to announce very soon. There is just so much for parliament to do and make up for the last 8 years as quickly as possible.
Also prior to June of this year the CBI recalled much of the lower denoms from the local banks throughout the “less safe” provinces of central and northern Iraq. Why did they do this?
They did this since they were warned of a pending infiltration by Islamic militants and terrorists.
The information warned of a desire to raid these banks knowing there were huge stockpiles of the new currency. We all know now about ISIS and how true this intel was.
We heard about the fruitless break-ins on many of the banks. Why would these extremists want this worthless currency? They realize how close Iraq is to going global. They know as we know this country is about to economically explode and they know its currency is soon to revalue.
The good news is the CBI is now contemplating redistributing this currency back to the banks. Why are they doing this? Could it be that they are preparing for some event…..lol….
So which will come first, the currency or the laws to which they need the new currency rate? The timing has to be perfect since both must be synchronized somewhat close together.
Then when can we expect the RV?
All I will say is what I have been saying all along we wait for a formal (global) announcement to the public that the Iraq government is now fully formed. Many of you asked me if a formal, public announcement is necessary and the answer is a big fat YES.
Hang on folks, the announcement is coming!
I do whole heartedly believe that the RV rollout will be completed just prior to or just after this announcement.