Between April 2003 and June 2004, $12 billion in U.S. currency was shipped by the United States of America to Iraq to stabilize the Iraqi economy. Billions were said to be stolen, but this is not why I am writing about this today.
I am writing this to show how the Iraqi money supply (M2) can be manipulated by the use of a dual currency economy.
At the current 2003-2004 exchange rate of 1477 dinars to every $1 USD those $12 billion USD was equal at that time to 17 trillion 724 billion dinar. Or over half of what Iraq shows as their current money supply now, according to what these Iraqi reporters are reporting in their articles today.
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This money was not just given to Iraq, it was already their money via frozen assets recovered by the US after the fall of Saddam. Furthermore, this money was never taken out of the Iraqi economy even after the NEW IQD was printed and exchanged for the OLD IQD.
To this day, Iraq is running their local economy on two currencies, the Iraqi dinar (IQD) and the US dollars. So it just makes sense that their money supply is also made up of both currencies but yet the only number that is ever talked about by the CBIand the GOI is in trillions of dinars.
We know that the USD is an official Iraqi currency because one of the measures thatthe CBI has taken to control money laundering is to limit the Iraqi citizen to $5,000USD per month. This in itself tells me that the Iraqi citizens are using the USD as local currency alongside the Iraqi dinar on a daily basis.
We also know this by the many articles that state the Iraqi’s would rather use the USD because the IQD is so worn-out in a lot of provinces. The locals in these provinces state that the CBI says they will replace the damaged currency but they also state that they have not as of yet.
This dual currency economy allows the CBI to adjust the money supply by the USD at well, meaning that they could insert electronically USD into the M2 and reduce the same M2 figures by IQD at the same time.
I believe this is why a few articles over the last few days are referring to a new program of Petrodollars.
We also know that the plan is to reduce the IQD from trillions to billions in circulation so I will end with this thought. What IF the real number in the M2 in IQD is now in the billions and the balance is in USD?
This is possible because most everything except for salaries is being transacted in USD?
The CBI really only needs to make sure that there is enough IQD circulating back into the local banks to purchase the USD through the daily auctions.
At the time of currency reform all the CBI would need to do is announce the new rate according to the real figures of the IQD in circulation and then announce the de-dollarization of the country.
I could be completely wrong in my opinion on this but it is amazing that the CBI doesn’t differentiate between the two currencies in their accounting.
Book: Global Financial Warriors International Finance by Dr. Taylor
Billions Over Baghdad
Billions Over Baghdad Video