Post Written By Nadita - Brought From Dinar Daily
Oil, Dinar and Dollar - My Opinion ONLY
First of all, this is strictly my opinion based on the news and rumors I have read and heard. My simple mind puts them all together and create a picture of Iraq and dinar that could be completely wrong and different than your pictures. So, be kind to my simple mind J
I have come to conclusion that Iraq could have not done an RV prior to June 2014. Even though, I believe there were moments that we could have the RV but Maliki and his goons were busy making their pocket fat than caring more about the people.
They have siphoned all they can to enrich themselves. Maliki is sweating bullets right now, watching how Abadi is moving at lightning speed cleaning the office from top to bottom.
The three musketeers (Abadi, Jabouri, Massoum) and their new cabinet have done superb job in the last few months to bring Iraq to the new frontier and that is world economy.
These new breed of Iraqi leaders have heart for their people, want betterment for everyone, uniting tribes under one flag – different but one and of course, they know what they have as far as natural resources. I believe Garden of Eden is Iraq and that is another discussion J
I hope and pray we will have the leaders like the three musketeers in 2016 who have heart for America and her people and for betterment of all of us.
Iraq is about to emerge like a butterfly and I don’t think they are taking 30 day vacation as it is reported. Why..? because the news are getting better today.
They are working behind the scenes to bring the baby to the new frontier before the year ends. Oil and budget agreement just approved between GOI and KRG but there are a few things to tweak before they emerge J
I have watched the crude oil since March. I have seen it going up from $80/barrel to $115/barrel in June. It has been going down ever since and today at $71/barrel. I have read once that petrodollar is at $35/barrel. The price of oil in 2003/2004 ranged between $35-$40 per barrel and dinar was $3.22.
I have watched an interview of Saudi prince in October about oil price dropping down. At the interview, oil price was $85/barrel. He was asked what he was going to do. He said he wouldn’t do anything until OPEC meeting in November. A week later, Saudi slashed the oil price to $75/barrel.
Saudi lowered the oil price again to $70/barrel a week ahead of OPEC meeting for which coincidentally when Iraq is about to present its budget to the parliament.
If oil price is at $115/barrel as in June and dinar rv’s at $3.50. All these countries who are holding paper for petrodollar will double dip and it will siphon Iraq of its riches. I don’t care how much they have in their ground, things do run out and they will be working for free.
Why double dip? Well for one, the oil price is higher than pre-Saddam era meaning whoever holding the paper for $35/barrel is getting a very good price as oil price at $115.
The difference is $80/barrel.. that’s a lot of profit. If they reinstate or revalue dinar at $3.50 which I think it’s the rate negotiated for government, then dinar will have more purchasing power than USD.
I also read that our dinar will be exchanged and kept in UST vault to be used for petrodollar.
Now that’s double dipping in my opinion, you are getting the profit from dinar and also oil. I bet there is a new negotiation between Iraq and US about dinar rate and petrodollar and now add to the midst, ISIS.
Remember UN meeting in NY in October..? that is while Iraq was trying to seat Minister of Defense and Minister of Interior. The UN meeting was attended by Pres. Massoum. I read Abadi declined an invitation by Saudi to attend a Middle East meeting in Dubai because he got too much to do.
Suddenly, he was on his way to NY to meet with Pres. Obama. After the meeting, he gave interview to CNN and slammed Obama in the interview. He was not happy. Well.. we didn’t know what the meeting was about but we could only draw our opinion.
Saudi/OPEC sliced the price of oil to $70/barrel because of two things :
1) America has been producing more oil and will be self sufficient in a few years but it also costs more to produce oil in US than Saudi/OPEC,
2) As Iraq is emerging and also producing oil, Saudi knows competitor is entering the arena and who knows how much Iraq has been selling their oil under sanctions.. my opinion.. petrodollar price.
I personally have hard time believing the rate will be over $3 but if it does, I will be a happier camper. I also think Iraq has 2 different rates. Budget rate which is the real value of dinar.
A sucker rate for us and Iraqi people, hopefully it comes at $1 if less.. I will be happy too. Why one dollar? Because they have been saying they want dinar to par with dollar.
That means the exchange rate will be 1 dollar = 1 dinar or close enough. The funny thing is USD has gotten stronger in the last couple months and now at $.88 which is only 12 more cents to a dollar.
Oil price has been dropping and it could reach $50/barrel. The rate will rise up to the budget rate as the market dictates and how long it will take, no one knows.
Iraq also has a pattern. They like to do things on Saturday. We are watching October playing before our eyes. They didn’t vote for the budget but will revise and approve within 10 days.
As we can see they have been working behind the scene. Just today news comes out that GOI and KRG approve the oil and budget. Abadi is going to Brussels today to meet with NATO about ISIS and other things J that are not published in agenda.
On top of this, US Dept of State congratulated Iraq on this agreement today.. this sounds like daddy’s approval for the yellow brick road.
We have 10 days to see what Iraq will pull out of the hat. I think oil will hover around $65-70 to facilitate RV. Once dinar rvs, oil could slide down further to $50 to make it closer to petrodollar rate and dinar will stabilize and daddy can profit but not to siphon Iraq.
After all, it’s about oil, dollar and dinar J don’t forget oil = black gold = currency J Again… this is my opinion only
P.S : I also learned there is no intel 100% correct because of insider trading. The most intel will give you about 80% and we need to decipher the clues.
Like I always say J I learn not to throw the baby with the bath water J I can expand the theory more but wondering if it’s necessary. I think we are very close Nadita