JUPITERGIRL FOUND @ www.dinarvets.com 10-3-11 FULL THREAD SO FAR/OPINIONS
Posted Today, 10:24 AM
Consider this question: "Who pays for the RV?"
Then this: "How will CBI cover $30 Trillion to cover 30 Trillion IQD at even $1.00?"
It is apparent to me, that it is the GOI, who holds the ability to authorize, the 'Bills of Exchange', that will monetize the People's Wealth...... meaning the Asset Wealth of the Nation of Iraq, that belongs to the People of Iraq, not the Central Bank.
Central Bank does not have the authority to monetize non liquid assets, because they are not the elected Representatives of the People. GOI is.
Factoid: CBI does not have the ability to monetize $30 Trillion worth of what is under the ground in Iraq, to cover the approximately 30 Trillion IQD at even $1.00, without the GOI authorizing such 'Bills of Exchange', to cover the costs.
Think of it like this..... who is going to pay you $1 Million US for your 1 Million Dinars? That does not come from thin air. Even the US is not going to just print that into existence, without holding an asset of equal or greater value.
In this case, my guess would be, that all of what we cash in for USD in the US, for example, would be covered by such 'Bills of Exchange', that are backed by the GOI, which are not 'In Circulation' currency, hence relieving the 'Liability' from the CBI.
CBI CANNOT act alone on this. Without the Elected Representation of what belongs to the People, the Central Bank does not have that power. The Government bears that obligation and responsibility, NOT CBI. CBI has the power to implement policy, at the pleasure of the GOI, and the People of Iraq.
Independent Agency operates and exists, only by the will of the People's Representation.
That is GOI and only GOI. Bankers are not elected, so have no authority but what is granted by the Government.
Iraq can cover the RV..... but not CBI. The bank's job is to handle the transactions and implement functional plans. Only GOI can approve the plan. In fact, it was GOI, namely the Economics Commision of 2007, who are a GOI Committee of Parliament, who charged the CBI, to draft the proposal to begin with.
It started with Parliamentary Committee.... and that is who will approve it.
Read More Link on Right
Be careful who you speak badly about. You never know who your best advocates are.
CBI has consistently spoken of redenomination and I am sure if it was left up to them, that is all it would be. The GOI and the Economists of the GOI, are the ones who are protecting you from the lop. They are the ones that are saying, redenomination will not solve anything. That means they are basically saying...... a LOP wont change anything. GOI is your best advocate here. Get a clue.
Great observations, Duck.
This is what I meant, last year when I said, "This is going to get really bumpy at or near the end of this ride."
Hold the faith.... Hold the line..... Stand Strong.
he is right on the money IMO actually the corruption will more than likely benefit us ALL and protect us from a LOP. Remember an RV doesnt have to be approved its the RD that has to and has yet to be approved by parliament so shabbs had to set the RD back till 2013, they need to raise the value plain and simple this is all my opinion but makes sense remember this is Iraq and if they have a lot of dinar stashed then it wont LOP. The corruption is rampant over there and im guessing many politicians have lots of dinar stored away.
Thank you Jupiter Girl and Enoch. This is good information and reminder as to what it takes to get done.
A "bill of exchange" is just a sort of check. They are rarely used and do not produce funds out of thin air. The only way Iraq could fund the 30T of exchange (let alone ongoing import) liability is to borrow from the US and the EU. I really doubt the world is going to lend Iraq 30T dollars, firstly as the rest of the world doesn't have it to loan. Secondly given that all of the oil in the ground at todays prices is only valued at around half that much. There is no way Iraq could even pay the principle back let alone the interest as well, and of course Iraq needs its oil revenue to build not just to pay back loans that were taken out to make foreign investors wealthy. This is pure BS.
I don't think this guy knows what he is talking about concerning the powers of the CBI. The CBI has the CBI Law link on its website, and why would it provide that link if it wasn't a valid law? The CBI Law gives the CBI the power to do all the things he said the CBI can not do.
Enoch is a very smart individual.. I look foward to his rebuttal on your remark.
CBI may hold a LOT of leverage, but, they do rely on each other. I am sure one side can easily delay the other if one side is not abiding.
Ive read a Redenomination has to go through parliament and get approved so therefore the CBI does not have a say till its passed the CBI is not running the country the GOI is.
I think this makes sense. Even if the CBI has the authority to issue a new currency, the implementation of that will extend into areas the CBI does not have control over. For example in other country's RDs they have required prices to be listed in both currencies during the RD period (2 years say), but it seems unlikely that the CBI has the power to compel business to do that. Also there will be expenditures for police services or military to go out to the more remote places to offer exchange services that the CBI would not have the authority to order.
I referred to this a while ago. Remember when the salaries of all the PMs and such were cut up 80%. Does anyone think they would allow thier pay to be cut by 80% if there wasn't a big raise in value of thier money?
It's coming cooked.... we just don't know exactly when! Boy am I getting hungry for some pink piggy bbq!
TO EASYRIDER: Read the CBI Law, it doesn't say that. The CBI only has to Notify Pariliment, it doesn't need approval.
Section 1, Article 2 - Pages 8 & 9
Section 1, Article 4-1.F
Section 1, Article 4-4
Section 7 - Page 23
Section 7, Article 32
Section 7, Article 33-4
Section 7, Article 36
Indeed, note particularly article 36 about the CBI being allowed to require the redemption of banknotes or coins for "equivalent" amonts of other banknotes or coins. I'm still not sure about the other ancillary factors I mentioned, but the basic RD does not appear to need approval (though for political purposes Shabibi might want to get a consensus anyway).