3-11-13 SocalDinar: Iraqi Politician Attacks Central Bank Corruption. "The controversial Iraqi Sunni politician Ahmed al-Alwani, who is president of the Economic Commission in the Iraqi parliament, ridiculed the notion that if Anbar province gains autonomy, its economy will be weak because the province lacks essential economic resources. He said that large Iraqi provinces can attract a lot of investment.
(Continued....) Alwani believes that “some political parties are giving cover to some private banks in Iraq to withdraw foreign currency from the Central Bank with false documents. I will not deny this charge, even for figures who are with me in the Iraqiya List, but I do not have the documentation to prove it.”
Alwani said that “some political figures are definitely implicated with a number of private banks in the auction. The proof is that these figures have valuable accounts and real-estate properties outside Iraq.
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We received information from a number of countries indicating the existence of real-estate properties and bank accounts for a number of Iraqi officials and politicians, but I do not have documents to condemn a particular person, whether it be the Iraqi prime minister or anyone else. But when I identify those persons, I will not hesitate to announce it.”
(Continued....) Alwani said that “some lawmakers are not experts in following up on economic matters. They said that the Central Bank has lost millions of dollars since Abdul Basit Turki succeeded Shabibi. We believe that Turki is an honest professional, as attested by his friends and foes alike, and those who say otherwise are trying to make gains by pressuring the Central Bank.” LINK
3-11-13 Darin: A lot of the oil sales are being funneled into the economy. The budget basically shows that, whether it be money into basic services such as education, infrastructure, or health services.
Their government at this moment seems to have too many restrictions from foreign countries which may be good or bad depending on how you view it. The KRG region is booming as they have allowed foreign investors in with open arms. They're easier to deal with while Bahgdad is a different story.
I think I recall that foreign companies can not own land in Iraq, but it is different in terms of the Kurdistan region. Look at the differences between those two areas and tell me which one you think is booming at the moment.
But, why is it possibly good or bad? Restricting foreign investment to certain levels such as preventing foreign land ownership may help boost a private sector.
The private sector may be gradually improving, but the gradual improvements wouldn't happen really at all if foreign companies swooped in and offered their goods/services and ran away with the profits.
It seems like a catch/22 situation, as foreign investment can act as a boost to the private sector, but the foreign investors won't step in until the economy seems stable enough to be seen as profitable.
It would be hard to deem black gold as a resource to back a currency. Simply because the black gold is sold in dollars on the market. One of the things that helps the dollar maintain such a high value is how it is needed to buy oil. If oil was sold in other currencies as well, our dollar would take a significant dive.
The natural resources however, are an asset and they do also drive income into the country. Whether it be crude oil, natural gas, precious metals, precious minerals, and agricultural, they all will drive value into the country when it is exported.
3-11-13 JayLee202: There are 2 articles that surfaced today witch (in my opinion) confirms why the IQD has not RV'd as of yet. Any currency is just what it is if it doesn't have anything supporting it. The word "Currency" means current. To be current, it has to stay moving as flow. This is why the USD has no value today.
Because it's no longer money, it's money has became currency since the Nixon Administration took it off the gold standard in the early 1970s. The ERISA Act was created because people could no longer retire and their employer take care of them. The ERISA Act is the reason why we have 401K today, making you accountable for contributing to your own retirement.
Here's info on ERISA: http://www.dol.gov/c.../comp-erisa.htm
Now let's look at the IQD. Nothing is backing the currency right now. Even if the economy was backing it, it would not be worth anything still because the economy has declined and is not up to standard to move the currency value upward. No economy increase, no RV.
The Iraq economy will not incline without production of oil and the growth of private businesses. Of course there are other things that needs to be passed first such as the HCL Law etc which we'll see how that starts out on the 19th. But regardless what's voted on, keep your eye on not just the meetings but the incline of the economy itself because then and only then will we see the incline in the IQD Exchange rate. So here's two articles which leads to my speculation.
Developing Iraq’s economy requires revitalizing private sector, businessmen. Link
UN Rep Kubler: Development of private sector in Iraq, a common goal for the Iraqi government and the UN. Link
So for those who are claiming an over night RV at 3,4,5 dollars is Hog squash (In My Opinion). Don't get me wrong, I would love a high rate but being honest, I don't see that happening for a while. So sit back and hold tight my fellow dinarians.
We will be in the right place soon. If that's called a free float then oh well, I wouldn't think negative about a float either because it could be a very fast float. Who knows? Time will tell.
If you mve money into Iraq without anything to back it, you still have just currency with no value. You can't back currency with currency. You need something tangible with great value backing it. In other words, you cannot back and RV with currency. That's just money law. Much Love.
3-11-13 4aprofit: IMO...They will always do the opposite of what they tell us, as per any benefit for us....forget all the logical theories and negative articles to a point...watch the trillions that are moving into Iraq that they don't tell us about.. follow the money and you will do better than following the rhetoric.
All currencies are fiat. That means nothing backs them besides the credit rating. Currencies are backed by goods and services. If you have nothing for sale then your currency is worthless.
Iraq has the resources to back up and do anything it wants to do with it's currency, it's just when, and that is due to when they are allowed to do this. This is no different in comparison than why the U.S. Dollar is still standing, while some economists and monetary experts have stated that the U.S. Dollar in reality is only worth .03 cents as per some extensive studies but the U.S. Dollar sure goes further than that doesn't it...(sometimes NOT..lol).
But for how long can the U.S. Dollar continue like this with "no real value" either? Who knows...so who is in control of that fiasco? On another note, could something re-prop up the U.S. Dollar again? It gets too deep...some use their brain and get the idea...some dont...some hold dinars and other currencies...some don't...get the hint? It's just a game in reality. One big monetary shell game.
Here's one to ponder...why did it take almost 5 U.S. Dollars in the 30's and 40's...to buy 1 Iraqi Dinar...and this was when the U.S. had more of a gold backing with a strong U.S. Dollar, and Iraq was not doing much back then like today..and oil was probably only 1 or 2 bucks per barrel...I could go on and on and on...
but there is just too many questions, anomalies, mysteries, truths & fictions, or whatever one wants to call them..as per all of this...IMO..just either ignore the investment, or if you don't like it, and your in it, just dump it and run, or get in and ride and/or hang on until the end.
The way I see it...they have had 10 years to have already beaten dinar holders and haven't yet...now trillions of infrastructure and oil developments have moved in...so, if they want to go forward, wouldn't it make more sense to have a currency that would back all of the investments...no different in contrasts to if the U.S.Dollar fell to a nickel or the price of the Dinar tomorrow...who would touch us?...And we aren't doing anything here, but Iraq is!