KAPERONI: Unfortunately the GOI (Maliki) has been able little by little to get control over just about everything. With his new found influence on the CBI, he can control the purse strings on the budget allocations to various regions.
If someone opposes him, he can easily withhold funds. Same goes for tariffs or taxes. The more people complain, the more hardship he puts on them...one article said he did not want to give oil profits now to citizens. These are all tricks of the trade for a dictator.
That is why he opposes value to the dinar. If he gives the dinar value, and the people prosper, his authority diminishes. The ongoing issues with Kurdistan, political opposition, etc. it makes it easy for Maliki to justify.
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KAPERONI CONTINUES: Without getting too off topic, I am becoming concerned that if Maliki is allowed to continue, we could be in real trouble. According to Kirk (our political expert) Allawi's bloc (Iraqiya) appears to be splitting into 3 or 4 new groups. Which will make Maliki's State of Law coalition the single largest block and will be hard to surpass in the next elections.
In other words, despite Maliki's behavior, he may be in a position to stay as long as he wants.
There is a lot of good discussion from JRD, Joeg, Palladium and others. I for one want to remain optimistic that this float could start at anytime. But it is hard to believe that it could happen as long as Maliki is against it. He has won out each time the CBI tried to move forward.
A very good argument can be made that they need to raise the value soon if they want what they have worked for...a free market economy.
It is clear the banking sector needs cash for these projects, and without private investment, agriculture and manufacturing, etc will never take off at the levels expected. Does Maliki care? I don't know. He has the oil flowing now with increases in the near future.
If the US, UN, IMF, WB etc. don’t nip it in the butt now, Iraq may stay a one trick pony. So on that front I am hopeful there is enough momentum to move this forward to develop the economy before to much damage is done. One article today talked about the currency auctions.
That was a great article because these "auctions" were never intended to be long term. Simply the method used until the dinar has international convertibility. Maliki does not understand economics so he decision clearly show a lack of understanding.
As for the facilitator. Without saying to much, remember, Shabibi was still the Governor of the CBI when all this was arranged. Not that his departure alone hurt the plan, but the subsequent moves for control and recent statements by the CBI, I am sure has the facilitator as confused as you and I.