Post From Dinar Updates - Emailed To Dinar Recaps
BGG: It is my strong belief something has to happen soon. There is a lot of stuff going on over the next 10-15 days.... the 50 class note, Maliki, trials, $$ shortages - very, very exciting times.
I have been careful as to not be “offending” those who are angered by any stirring of “hope or expectations”... at this point – I just don’t care what they think ANYMORE.
I have said all along – Iraq is (currently) more likely to be forced into some kind of currency reform / MR - whereas before it was more a "planned event"... exciting times. Do I care what the number?? Or exactly when?? No, I do not - just get things going already!!
Savannah: Amen BGG!!
TNvolunteer: They seem to think they are doing fine... As long as they can sell oil they seem to be staying afloat... Of course they could be getting a lot more for their oil...
BGG: if one simply does the math (regarding the budget) - they don't have enough money to stretch to the end of the year... Not by a long shot.
TNvolunteer: Right... Mr. White did a brilliant job of illustrating that IMO
BGG: add all the bailouts up together and it still doesn't get them where they need to be. They are off by BILLIONS.
TNvolunteer: But I would love to see their media or GOI acknowledge that... :)
diane1: With the tariffs due in early August, how can they ask their people to pay more for same items without giving their currency purchasing power?
BGG”": also take into account - none of the "bailouts" are guaranteed - at all. IMHO most are predicated on a more inclusive GOI - translated - "National Reconciliation"...
BGG: Their media and their GOI are speaking to "them"... not to us...
TNvolunteer: So there are strings attached... good... Have they had budgetary shortfalls before?
diane1: you are right there is too much happening right now , with these loans they are getting there must be some strings attached.
BGG: and think about this - it's taken "us" until just lately (watching this thing carefully) to finally figure out what the real numbers were...
TNvolunteer: True... The big picture is quite encouraging for certain...
BGG: what chance do you think the average Iraqi has of figuring out what the real numbers are - or even cares while they are scratching for their "daily bread"??
BGG: my point is - virtually no chance...
BGG: so their media and GOI going on and on about what is coming in is like one drunk talking to another...
BGG: none of it makes any sense and no one will remember a thing :)
TNvolunteer: Like you, I believe something has to give, and very soon... I am really really looking forward to seeing something to that effect.
diane1: the average iraq people are poverty level now asking to may poor, This festival with all these people coming, investors, countries, etc how are they funding this?
tman23: If citizens lose confidence in the national currency, they may begin to use foreign currencies, particularly those with greater prestige.
This may be both a psychological and an economic blow to the government: with widespread foreign currency substitution (or, more extremely, full dollarization), the central bank no longer controls the money supply, rendering it unable to provide lender of last resort functions !! ........
((( The statement is from a study on redenomination, introduction of removing zeros from currency )))
This is what I have been preaching with regards to the Kurdistan Region wanting to open its economy. The Kurds have been approved for international loans up to 5 billion usd.....
They could have "closed" on that deal "like yesterday" if they wanted to, their Parliment has approved and it only takes Barzani's signature. SO WHY THE DELAY ??
And you can bet that those loans will be delivered in Euro and USD......And they won't be exchanged at the CBI for IQD !!
TNvolunteer: so these loans they are being offered is just chumpchange compared to what they need to fulfill the budget...
BGG: it's not even close...
TNvolunteer: or even their ongoing operating expenses...
BGG: they even came out with OVER DOUBLE the number of bonds as was originally reported and it still is not even close...
larrykn: so then why do they keep putting it off, they must know its not enough and the only way out is to RV
BGG: went from 5 Bil (USD) to 11 Bil (USD) and they still aren't even close.
TNvolunteer: one thing is curious to me... If they have such a liquidity problem, where are these massive amounts of dinar coming from they the CBI is bringing in via auctions?
Craveman: When they created the budget did they think a shift in value would have happened by now ya think?
diane1: good point,
jarhead: they know the US will get their share and they don’t want that imo......but its inevitable
TNvolunteer: yes, larrykn, that is curious to me also.. so I guess, more than just one thing..:)
larrykn: that is why I asked earlier what will it take to get this done and why the delay, power play or what
TNvolunteer: I have to think that is one piece of the puzzle...
diane1: The US has to be paid not their fair share many of our soldiers have lost their lives to make this happen. We the USA needs to be reimbursed for expenses incurred fighting their fight.
DigiMan - You have the right to remain silent. Anything you say or do will be misinterpreted and then used against you in a court of law
Craveman: I agree.. too much seems methodical to think otherwise:)
TNvolunteer: and they don't appear to be eager to be coming up with a Plan B, so hopefully Plan A is still in effect if it was indeed part of the plan.
Craveman: Good point..sure hope so.. can't imagine they will let this much progress go
diane1: be patient my friend - it took 6 long years for me to get to this point. it took IRAQ OVER 2 DECADES, what's a few more weeks?
(11:01 AM)THE BLOG - Dinar Daily NEWS Blog - http://www.dinarupdates.com/blog/
TNvolunteer: Haha... I am trying hard to be patient... but it's hard to convince my vehicles, HVAC unit, and other inanimate objects that they need to hang on a little longer...
BGG: I have to think there is some political point we don't see from here - that is being handled.
BGG: or needs to be handled..
BGG: I don't see the CBI (directly) as the one with the liquidity issue... it's the GOI...
Cricket22: I hear ya! I am hanging in there too with faith this will happen very very soon.
BGG: and the one comforting thought (to me) about this whole 50k - 100k (class) is it doesn't do anything to solve the GOI's problem...
TNvolunteer: right... just trying to figure out who has so many dinar to trade for dollars... isn't it the banks?
BGG: unless - of course, the CBI has promised to buy all the bonds at a premium with the extra money they printed...
BGG: hinky - but possible...
BGG: however, that is such a long shot - I can't fathom it real...
TNvolunteer: Agreed, and yes it will be interesting to see what happens with the mysterious 50k-100k thing...
diane1: I know it is hard to be patient, it is coming we all come to this sight for encouragement prayers news and information, we are in a good place. Be Blessed that you are a part of this history.
BGG: and - even then - it only gets them half-way there.
BGG: so the GOI is still well short.
TNvolunteer: like Craveman said, I have to believe that the budget was created with the assumption that the IQD would have more value at some point...
BGG: I am thinking the same thing.
TNvolunteer: and since they don't seem to be carrying out any alternative plan, that must still be their mindset.
BGG: of course - so is mine - so God Speed Iraqi Monetary Reform!!
Cricket22: and TNvolunteer Great commentary here. TY :)
BGG: Thanks and YVW