Cosmic Consciousness GCR silently on the move!!!
Sqwatchy January 23, 2015 at 7:16am DXY: 95.1
LEB > Sqwatchy January 23, 2015 at 7:47am 95.28
Sqwatchy > EURO 1.1167 AND IN FREE FALL! CLOSER TO PARITY...EVERY MINUTE
MacMandeere January 23, 2015 at 8:05am
Prime Minister Dr. Haider Abadi meet with Mr. Klaus Schwab, founder of the World Economic Forum
met Mr. Prime Minister, Dr. Haider Abadi Friday with Mr. Klaus Schwab, founder of the Economic Forum Global Executive boss.
During the meeting, which was held on the sidelines of the Davos Economic Forum in Switzerland discuss the economic situation in Iraq and the world and ways to enter international companies to invest in Iraq.
They also touched on Iraq is rich in wealth but is currently living a financial crisis as a result of lower oil prices in addition to what Iraq faces of A security challenge is to fight against the terrorist organization Daash which requires to move forward in the development of the Iraqi economy.
Information Office of the Prime Minister January 23, 2015
Peaches1: A VISION OF IRAQ, Davos World Economic Forum (Friday, 0410 EST) – Speakers: PM Haïdar Abadi, Charlie Rose CBS anchor, Klaus Schwab, Founder, Exec. Chairman, World Economic Forum http://www.weforum.org/sessions/summary/vision-iraq
Topic: “You cannot tailor-make the situations in life but you can tailor-make the attitudes to fit those situations.” ~Zig Ziglar
oilmanmitch » January 23rd, 2015, 7:18 am 94.87 @ 5:20 AM CST !!
sigshome » January 23rd, 2015, 8:15 am Dollar 95.12 @ 7:15 est
torch123 » January 23rd, 2015, 8:36 am Reminder:
Abadi live from Davos. 4:10 PM today.
Bandit : US Dollar 94.72 and still climbing. Exciting times!
Pray the IQD Dinar grows in value next.
Pappa-J: BANDIT., REMEMBER THE DINAR IS PEGGED TO THE DOLLAR… ERGO DOLLAR GOES UP SO DOES THE DINAR YEP GOOD FOR US INVESTORS BUT BETTER FOR US GOV.
REMEMBER WHAT 41 SAID ---WHEN THIS IS OVER THE WAR IN IRAQ WILL NOT HAVE COST US ANYTHING ( MONETARILY) LOOKS LIKE THE PLAN IS WORKING ITSELF OUT DOES IT NOT?
F26 AND TEAMS HAVE TAUGHT ONE TO ONE VALUE----- NOT QUITE WORKING OUT LIKE MOST HAVE THOUGHT !
IMO GCR IS IN FULL SWING NOT A CURRENCY WAR AS THE MEDIA TALKS OF INSTEAD--- THE PLAN--- IS WHAT THEY SHOULD LOOK FOR AND HOW IT WORKS!
BAC DOC AND OTHERS ARE SPEAKING TO THIS ISSUE ON A DAILY BASIS.----PARITY---- KEEP THE MARKET FROM FIGHTING AGAINST ITSELF ALL NEED TO RIDE IN SAME ROLLER COASTER CAR ---UP AND DOWN TOGETHER.
IMO TERMINAL IN SIGHT!!!!!! PJ
K-Boom: GOLD - BACKED ZIMBABWE DOLLAR ON THE WAY, 21 JAN
Wednesday, January 21, 2015
NEWS RECAP: GOLD - BACKED ZIMBABWE DOLLAR ON THE WAY, 21 JAN
Gold-backed Zimbabwe dollar on the way
RESERVE Bank Governor Gideon Gono’s proposal this week for the introduction of a gold-backed Zimbabwe dollar is an idea whose time has come. If implemented properly, the gold-backed local currency will resolve the liquidity crisis currently ravaging the sanctions-hit economy.
In light of the global financial crisis and sanctions, Zimbabwe is
effectively barred from accessing any meaningful lines of credit and the liquidity crisis will persist if the domestic capital market is not re-activated with the introduction of a local currency backed by a precious metal.
There is no shortage of reasons for the collapse of the Zimbabwe dollar, but it is now universally agreed that quasi-fiscal activities by the central bank and excessive printing of money accelerated the demise of the local currency.
But the country has started to generate meaningful revenues with the
Zimbabwe Revenue Authority regularly surpassing revenue collection targets.
Previously, the government had been forced to print money to finance
everything. This is no longer necessary given the economic recovery and the discovery of diamonds.
The revenue from diamonds can be used to build the six months import cover and stock up gold reserves to support the Zimbabwe dollar as proposed by the governor.
The gold-backed currency is anchored on the premise that the central bank holds a large amount of gold (or other precious metal) in relation to the paper money that they issue. That means if the country doesn’t have any gold Reserves, no money can be issued.
This effectively eliminates the normal inflationary pressure that comes from a fiat money system referring to money that has value only because of government regulation or law.
Zimbabwe has systematically been excluded from the international credit system, specifically because of the Zimbabwe Democracy and Economic Recovery Act (Zidera) passed by the United States in 2001. The Act makes it illegal for any US national or entity to transact with certain companies or individuals in Zimbabwe.
This affects various institutions such as the World Bank, IMF, International Finance Corporation and African Development Bank where US representatives cannot vote in favour of any credit to Zimbabwe. This creates a huge political risk premium which makes international banks hesitant to grant lines of credit to Zimbabwe and Zimbabwean institutions.
This situation effectively blocks these institutions from doing any
meaningful business with Zimbabwe as the country’s political risk is
magnified. This lack of access to international credit markets has become very clear throughout the economy with banks failing to grant any medium to long-term loans. This is partly causing the mini-financial crisis rocking Zimbabwe’s banks as they fail to access reasonably-priced funding.
It is widely-reported that banks are lending at 40 to 60% per annum which is way too high an interest rate to give to a legitimate business transaction.
This has created a very high default risk and forced banks to avoid lending. This illiquidity needs to be addressed through the introduction of a gold-backed currency.
A modern currency is basically paper money backed by the country’s revenue generation capacity and assets.
The United States is the largest holder of gold reserves. How much of this is still in Fort Knox physically and not just on paper is another question as much gold is loaned out. In essence, the US has sold a lot of its gold into the market through gold leasing even though it still shows up on the federal reserve’s books as an asset (accounts receivable).
This partly explains why the US dollar is still the world’s reserve currency since the US holds the largest amounts of gold even though its exact quantity remains a subject of speculation.
In foreign exchange, no major currency is considered to be as safe andstable as the Swiss Franc. The country’s centuries-long policy of political neutrality, as well as the fact that 40% of its currency reserves were previously backed by the precious metal, contribute to the Swiss’s image as “liquid gold”. The proposed gold-backed Zimbabwe dollar can in fact be based on the same model.
Canada and Australia possess large reserves of precious metals and both countries have very strong, well-developed mining sectors. Australia is the world’s third largest exporter of gold with mining accounting directly for approximately 8,5% of its GDP. Canada is the world’s third largest producer of gold.
These two countries have strong economies and currencies. Whilst Zimbabwe has huge gold and other mineral reserves, these have been properly leveraged out to create liquidity in the country’s economy. There is need for Zimbabwe to move away from total dependency on a foreign currency whose economy has nothing in common with Zimbabwe’s.
The economy and industry is currently reportedly operating at approximately 45-50% capacity. This is significantly higher than the 10-20% capacity utilisation before the introduction of multiple currencies in 2009. Now the multiple currencies have achieved their intended purpose which was to stabilise the economy.
The next phase, which is growth, requires the use of
a softer currency which closely mirrors the country’s macro and micro economic conditions and the US dollar can be used in its traditional sense as a foreign currency but not to permanently replace the Zimbabwe dollar.
BabyBear1895: ZIMBABWE GOLD BACKED CURRENCY 2015
Telescope News) COLOGNE- President Robert Mugabe’s administration, is reportedly sittings on wads of a new Zimbabwe currency to be backed by a gold standard, which can be issued at a moment’s notice as a home grown panacea to manage a dwindling economy, The Telescope News, has been told.
The idea for the gold-backed currency was first discussed in private, between Mugabe and fallen Libyan leader Muammar Gaddafi, on the side-lines of the inauguration of South African leader Jacob Zuma, in Pretoria in 2009, according to senior government officials.
Gaddafi wanted a common gold currency for the whole African continent, while Mugabe had proposed that it was better for the African Union (AU) member states to introduce the gold standard money individually, before announcing one common currency at a later stage so as to throw international financial players into confusion.
Disclosures of the top secret, come at a time when finance minister, Patrick Chinamasa has been defending the country’s use of a multi-currency regime since 2008, as a tactical strategy to contain “the enemy” because he cannot “devalue his own currency”.
Harare officially uses a currency basket, which includes: The Botswana pula, the British pound, the euro, the South African rand and the US dollar as the citizenry monetary options, following the collapse of the Zimbabwe dollar due to mismanagement of the economy by Zanu PF. Early this year the RBZ added four new currencies, as legal tender namely: the Australian dollar, the Chinese yuan, the Indian rupee and the Japanese yen.
Dispite concerns that introduction of the new currency alone, without addressing the supply side of the economy, characterised by company closures, will fuel a new wave of inflation, Mugabe appears determined to rid the country of what his backers are calling “Western monetary imperialism”.
This reporter, wrote about Zanu PF’s threats to return the local dollar last year in a London based online publication, whose report brought to light Mugabe’s intention to railroad a new currency as early as June 2015.
Economic analysts yesterday said, the idea of introducing new money prematurely was detrimental to the health of the economy, which has somewhat stabilised owing to the use of the multi-currency regime.
They point out to growth and external competitiveness challenges, which Zanu PF’s economic blueprint ZimAsset fails to address, as indicated by the economy’s low trend growth and poor foreign direct investment levels, declining share in world exports, coupled by high current account deficits, and an external debt now topping US$8 billion.
An economic adviser to the central bank also said government does not have the adequate resources such as money, facilities and logistics to introduce a new currency in the middle of growing political tensions.
“The budget for the project in foreign currency terms is simply beyond the state’s resource capabilities,” she said.
The new printed currency, which is said to be warehoused at various high security locations in the capital, including Fidelity Printers and Refiners in Msasa comes in bank note denominations of $2; $5; $10; $20 ; $50 ; $100 and $200 according to Reserve Bank of Zimbabwe (RBZ), International banking sources. Fidelity Printers and Refiners, is a subsidiary of the central bank, and the largest security and commercial printing company in Zimbabwe, which also specializes in buying gold.
A coin regime of 1cent; 5cents; 10c; 20c; and 50c reportedly accompanies the new notes.
“The new money is already in the country, but I cannot disclose to you where it was printed, because that was done abroad,” said the RBZ staffer. “We have many security locations in Harare where the new Zimbabwe dollar is being kept for security reasons. Once the president authorizes it’s issuance, it will be in circulation within 24hours after the central bank governor makes a public announcement to that effect. The only reason the new currency is being withheld, is to do with national security. There was an intelligence briefing made to President Mugabe, about the dangers of removing the multi-currency regime without careful planning, as there was a likelihood of a mass revolt in protest of the Zimbabwe dollar, which many locals do not want to see especially at this moment.”
Further intelligence information, on the matter shows that the new currency, if not introduced by June 2015, has a strong possibility of being launched under an Emmerson Mnangagwa presidential administration, which government insiders say could be in office by 2016.
“Mugabe might be forced to stick to the multi-currency regime, although he really wants this new money out next year. However, it is certain that the Zimbabwe dollar will be back for good, whether we like it or not no later than 2016 under a Mnangagwa presidency. It is now being speculated in official circles that Mugabe has decided to retire, and that Mnangagwa will finish his term until 2018.”
Mnangagwa is currently acting president, until mid-January 2015, when Mugabe returns from his Asian annual holidays.
The Telescope News, has gathered from other sources, that government has licensed a Chinese company, to be the new printer of the Zimbabwe dollar, with technology from the firm expected to be acquired by Fidelity Printers, in the long run, to enable Harare to print it’s own money matching international standards and security features.
In the past the local dollar has been printed in Britain, Germany and Canada.
As early as 2008, Zimbabwe used to print her currency at German company Giesecke & Devrient. However the firm bowed down to pressure from rights groups over Mugabe’s government human rights violations and abuses, and decided to stop doing business with Harare the same year. German chancellor, Angela Merkel, had initially said Giesecke & Devrient’s Zimbabwe contract was a private matter. However her foreign minister at the time and currently, Frank-Walter Steinmeier, ordered the company to halt deliveries according to the Wall Street Journal.