Frank imparts to the SKs that before the spread between the banks in Iraq had dropped between 4% to 2%; it is the equivalent of what the banks offered last year; strike that; that reduced their interest rates; 2 years ago from 23% to 20% down to 17%; then from 17% to 14% and now down to 12% and will likely come down further to 10% or less. This 4% to 2% is for the banks. This is how they make their money through platforms and as we know now that those platforms have been established. And the profitability of these platforms has gone down with the profitability of Iraq’s banks? Yes, of course it has to be adjusted; it has to be lowered just as with the interest rates with the banks. They cannot give you these higher rates when they are about to give you a higher rate for the Iraqi Dinar. There is international status regarding Iraq all over the place; from their bonds going into sovereignty; to Shabibi himself saying we have the right to peg our dinar to the dollar; these are the doors that lead to international status. No one’s allowed to peg to the dollar unless…oh I see...
Be careful and do not give your dinar to anyone saying they will invest in Iraq for you !!!!!
Frank says, remember in the last week of last month, many of the pests were removed and complained. Don’t forget; the 1st – 7th, it’s really on the 7th that we need to see the rate to born; that’s when we believe that the IMF is going to be speaking with the GOI. Why not the CBI? On that day we believe that it will be born. From the 7th – 15th we are looking for the birth to be announced. Then on the 15th the UNSC can give Iraq Chapter 7. If not they will be moved over to next month and so will the tariffs on the 30th.
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Zachowski – believed we would see this in May and believes as Frank has been telling us that here in June we are in the “season of”. He’s at peace with it. He believes we are on the cusp of seeing this.
Jim1126 says yeah, we are here with all the articles; even though we have to take them with a grain of salt, but they have said much that amounts to something.
If article is about the GOI, lightly skim over it but don’t put much stock in it. If it’s from the CBI, IMF, UNSC, WTO, AoP, then pay much more attention to it.
Are the GOI articles an intentional diversion??? It sure appears that way.
Jim hypothesizes saying what if they are using all these soap opera articles as a diversion while they are actually meeting and having the National Conference during this time and ironing out things as we watch. The 7th isn’t far off. And all the while Maliki is rooting out a lot of the pests during this time.
Z surmises that with these 8 or 9 “preparatory” meetings of late they have accomplished much in them already in bits and pieces. Frank mentioned on Monday. A lot of talk in the articles saying they have been resolving the Irbil agreement.
There is so much smoke and mirrors going on in the articles. Who’s to say that these things aren’t done already? A lot of meetings in people’s homes and such; many things done, accomplished behind closed doors that we aren’t made aware of.
The IMF coming on the 7th seeming as a last call. The IMF and CBI are set.
Question to Eagle1 about Frank saying they might announce on a Sunday. We would have to wait until Tuesday to do anything. International transactions take place Tues – Thurs.
Z feels some form of sleight of hand going on. They have us watching their GOI drama, yet, accomplishing things that need to be done at the same time.
Inner Harmony hypothesizes they could announce at COB on a Thursday evening and this giving Shabibi enough time between Thurs – Tues to get things ready. Just an optional scenario.
Things really started happening back from Dec. of last year. The troops pulling out was a big start.
It seems that things, big things have shown to be occurring in the middle of the month from that point forward, but, these big things were initially expected to take place towards the end of each month.
We found out about the budget being ratified in early March having been placed in the Gazette earlier on. Approved and passed on 23rd of February. It was in the Gazette on the 25th of February; 2 weeks or 10 days later…IH says it was completed on March 16th and on March 19th there were people in Toledo who cashed out initially. 60 days after the PIP movement in Jan. Falling into the Muklah Shabibi spoke of.
Z says it appears this has become another 6 month process of doing what needs to be done. There are a lot of things that feel as though we are in that “season of” right now.
The meeting of the IMF and GOI was just announced recently. Jim says it just seems like this will be the final instructions given and accomplished; so then boom; they will be ready for the 15th. They can’t get to the 15th unless they have dotted all their “I’s” and crossed all their “T’s”.
Now, whether they would do this before the 15th, like this Sunday so then by then the rate would be active by Tuesday and have been active for two days before the 15th, that’s one scenario or do it at CoB on Thursday, that way they could show the UNSC they have done it, then they announce it after their holiday; because that weekend the 15th -17th is a holiday for them, Muhammed’s Assension, then they could announce the rate on Monday and cash out Tuesday.
IH mentions they would have to activate it prior to the 15th.
Z says it’s like big brother and little brother, do you pay little brother before he cleans your room or wait until after he cleans it? The way he looks at it with the UNSC. They likely want to see an international, tradable currency before they come knocking on their door.
Jim says, right, before they cut all their strings.
IH says she feels no later than Sunday for the announcement, along with Frank, because of what George Robinson said last year with regard to the summer months and the 1st of June, the first 10 days of June. So, Sunday is the 10th.
Z says it all seems to fall into the “season of now”.
Jim jumps off the call.
Memphis just has one comment was something IH mentioned about the pulling out of the troops, and large movements of money that started to take place. Memphis says it was originally scheduled for the end of Dec or first part of January but was put off and no one knew why.
The order of magnitude being that in the trillions which was pretty cool to see.
Memphis heard just last night from a source, that those monies were now, finally available today, Tuesday, for transfer, trading, and contracts.
Memphis senses that the early pulling out of the troops caused a delay in the happenings of this event.
Memphis qualifies that it was necessarily about O pulling them out but it was the leaders of Iraq forcing us to get them out and our public sentiment.
So all the occurrences during that time may well have led to a holding off on movement with monies but now they have finally been put through the systems and platforms in direct support of the RV per Delta.
Memphis says it just seems unfortunately that we are all waiting to the cake to be frosted. It’s frustrating to wait. We don’t know all that is going on over there. There is some truth in the articles but much of it is likely a diversion of sorts. Newshounds have affirmed that much of the articles are copied, pasted and rearranged; reused and regurgitated. We are just waiting for this to come to fruition.
IH says, that when she and Memphis speak he usually asks her what date or dates might she be focused on; she says that right now she can’t get past the 15th at this moment; which is the meeting with the UNSC.
If we don’t see that Iraq gets out from under Chapter 7 during that time, then we are looking at a delay. There isn’t much other conclusion.
We don’t know what it is but there must be some other issue or issues holding things up. The only thing that is holding Chapter 7 up is an RV of their currency.
Z says the other thing we have to keep in mind is the tariffs law being implemented on June 30th. If it must be delayed any further, they must pass a law again to push it farther down the road. Articles are telling us that they DO NOT intend to do this.
If they don’t RV, that will have serious repercussions on a great many people in the country because they don’t have power of purchase to match or out match these new tariff laws(taxes) on imported goods. Bear in mind they import 60% at this time.
Memphis refers back to an article that came out today; post 277 from WS
2nd article that speaks to the WTO. This gets Memphis excited he says. They were going to do this 3 months ago. It was a done deal. They were going to enact the tariffs because there is a momentum that can’t be stopped now.
Quote: A member of the Committee Haitham al-Jubouri told the Kurdish news agency (Rn) that "the application of tariff law is one of the elements of a state economic as a condition for entry into the World Trade Organization (WTO) and that from one of the conditions of application of the law of customs tariff as well as the protection of national products."
This is the Parliamentary Finance Minister Memphis has quoted many, many times. He spoke out twice today and what he said was very interesting to Memphis.
When they bring up the WTO, what they are doing they are talking about their motivation, that’s where we need to look.
What’s motivating these people to do anything? That’s why we need to look at what motivates them. This is what’s bringing about the tariff laws.
Those who cry out against it to delay it are being ignored and told no; it is not going to be delayed.
Memphis doesn’t see anywhere where the tariffs are going to be delayed any further.
When someone comes out to say hey we want this delayed; who comes out the same day and says, uh, sorry, we have no intentions of delaying this; it will occur as stipulated. It’s the Ministry of Finance. We need to pay attention to these articles.
Now, what else has the WTO told Iraq they need to do? About 10 days ago we got an article that illustrated again some of the conditions placed upon Iraq by the WTO to enter in the WTO. One of the conditions was to have an internationally tradable currency at least on par with the USD; not the first time we’ve heard this or seen this. To Memphis this means tradable on Forex.
They need the tariffs as well to fulfill the requirement for ascension to the WTO. Now do the tariffs mean that they have to RV, no; not necessarily. Technically they wouldn’t have to but it would be foolish by most.
The first sentence of this article speaks to the immediacy of their intentions;
Baghdad, June 5 (Rn) - The parliamentary Finance Committee on Tuesday it had sent two proposals to the Iraqi Ministry of Finance of the Federal Law on the application of the customs tariff at the time confirmed that the application of the law will equip Iraq to enter the World Trade Organization.
This doesn’t appear to speak of things down the road, but more on a “now” or “soon” time frame motivation.
Z mentions there are other countries stating they are working hard to help Iraq get out from under Chapter 7. This is all fine and dandy but it would all come to a vote at some point in time and many of these countries wouldn’t have enough votes to get them out of chapter 7. So, with what IH mentioned, they need an internationally recognizable and tradable currency prior to knocking on the door to being released from Chapter 7 by the USNC.
These same countries, especially Kuwait, are coming in also and setting up and doing business within Iraq more so now than ever.
IH says the only thing that Iraq has asked the world to give them in the past couple of years is assist them in getting into the WTO and out from under Chapter 7. These are the two main motivations that she sees. The play equal importance but also tie in with one another.
It’s her opinion that they cannot get into the WTO without being out from under Chapter 7.
A prerequisite to WTO ascension would be being released from Chapter 7. Memphis agrees. It makes sense.
Z asks Eagle1’s opinion is that looking at everything we have seen, he doesn’t see this going past the middle of the month. Z agrees as well. Their feet are in the fire and if they don’t do something their pant cuffs are going to light on fire too.
Eagle1 says they have been saying there are going to do it; all the articles coming out saying they are going to do this; for economic reasons, for curbing inflation, more reasons than you can shake a stick at. He goes on to say that the one huge thing we do know is that inflation is catching up with them and if they don’t act, they will be soon in a world of hurt.
Memphis mentions this ties in with the tariffs saying that if they enact the tariffs and do not revalue their currency it will force inflation even higher and will force Iraqis even more to purchase more USD and push dollarization even higher which pushes inflation higher. They mention in articles that this is a practice they want done away with like yesterday in their economy. They do not want the USD to be the preferred currency; they want it gone as soon as they can.
Z says there has been a lot of movement of monies that he’s seen in payments here and there.
Je’sus mentions the article that came out mentioning June 2013 they will have all of their debt accounted for and resolved.
IH says they were speaking about having their fund protected up until that time. Iraq has been told this will be the last extension to protect their funds. Iraq then went on to say they would be able to protect their funds fully by that time frame. IH goes on to say that if this is their plan, they need to do this soon so they can pay their debts and protect their funds.
Frank jumps in says bravo on a great job done to the SKs.
Frank shares that one of the WTO prerequisites is to have an internationally recognizable and tradable currency in order for them to be full member. The only way that’s going to happen is for them to be accepted as part of the world economic community. This is why that Frank always says with great confidence the UNSC, which is the USA, will not give them the keys to their shackles, the final part of chapter 7, until they raise the value of their currency; because that is one of the prerequisites to enter the WTO, which also is the USA. Do you see the catch 22? We are in control. We will not allow them to do anything until they know what they are doing with their currency.
The other thing and more importantly, is that inflation is killing them right now and they know it.
Frank mentions about it being asked “what if they move the tariffs?” Frank says the only way they will move the tariffs is if they do not accomplish everything the AoP needs them to before the 15th.
Yes, we are looking at the 1st – 7th but it’s really the 7th when the IMF comes to talk, not to the CBI but the GOI, why? It’s closure. We are looking for them to say it is done, they are ready to go. Everything thinks they are in disarray, but they are ready says Frank. They’ve done a good job.
He thinks Maliki enjoyed all of these smoke screen tactics because it didn’t allow us to understand what was going on. The National Conference has been going on bit by bit; they don’t have to tell you that they did it or are done with it. This is their way of bringing in security and going about their business. It’s not the GOI, it’s a fraction of the GOI, and it’s only those that Frank now refers to as “pests” that are causing issues which are quickly dealt with and resolved.
Rumors spread like wild fire in today’s society and technology and cause problems.
Talibani and Maliki work together right now to resolve the border issues. Why? Because they are about to release the rate and they are going to need it for the tariffs on the 30th.
Now if it does work out; if they do get it accomplished; well then Frank will come back in two weeks.
If they don’t accomplish it; then Frank stays this month and we study what they do after the 30th because they will move the tariffs. That 4% to 2% is huge. You don’t give up money until the last nano-second. Frank likes it.
Memphis – Question asked on the forum regarding an article about Kobler going over to visit Kuwait could be to dot some “I’s and cross some “t’s”. Not sure if a direct correlation or impact to the RV. But Kuwait will benefit directly from Iraq’s RV. Could be some form of final assurances but not sure overall. Speculating there is likely some significance to Kobler’s visit with Kuwait.
Kuwait as we know a big player with Iraq and the IQD. Look at all the meetings between the two countries.
Frank jumps on again and says to look for Maliki to talk next. Shabibi is waiting for Maliki to say something.
Rick Price asks, tied to what we are saying and seeing what would we think about them suddenly celebrating this on this coming holiday with the Ascension of Muhammad??? Z says there is a definite possibility for that. Z thinks they would celebrate the release form Chapter 7 more so; but could be a 3 fold celebration of a revalue; chapter 7 release; and the holiday itself. All a plausibility; significant cause to celebrate. This is speculation at this point.
Eagle1 chimes in that if they do it on a Friday; from a practical stand point; Shabibi would announce before morning prayers or it would be announced in the evening.
Frank says they will never celebrate the RV, financial gains; but would go ballistic celebrating release from Chapter 7.
Eagle1 closes the call in prayer.
Je’sus thanks the SKs giving us all their thoughts on our investment.