So over the weekend we hear about a big upcoming meeting to be held this week in Badgdad between the council on ministers (Abadi’s cabinet) and the Kurds. So what’s up with this?
So now it looks like Abadi’s Council of Ministers held an extraordinary meeting either on Sunday (yesterday) or Monday (today) to discuss the budget and the salaries of the Kurdistan region. They want to hold this meeting before Tuesday when Abadi will convene the regular session of the Council, "adding that" it is possible to hold a special meeting on budget and other issues. The Kurdish delegation arrived in Baghdad on Saturday to begin the meeting so I know it is taking place as scheduled. They will discuss with Abadi the outstanding issues between the government and the region.
Exactly what are they discussing?
Update on the Currency Reform Project
As you may have heard, and it is true, many of the provinces have gone ahead and began rolling out the lower denoms to the public. How can this be, since the plan is to coincide this event with the international rollout and revaluation?
Well….. I have to tell you for certain the process is messed up. Many of the provinces are now using various rates. Some are using $3.71, some $3.21 and other $4+ rate. The Qi cards in the past have also been loaded with various other rates too according to the programs paid out. It is very confusing for me even to figure it all out never mind the Iraq people. Some provinces are also still using the larger three zero notes for their currency. Yes – it is a mess.
So now the finance committee is complaining and wants a hearing on this topic to find out exactly what has happened to the original plan and how to correct it and standardize all the provinces. This is one of the 27 reforms they must address. This demand for the hearing comes on the tail of a recent announcement by the CBI that they are about distribute the new coins and the newly reprinted $10,000 dinar notes.
We know they have tried this in the past and without a revaluation, the coins are worth more in the precious metal than they are in face value. Thus the black market sucked them up and melted them down for bullion. Soon no more coins could be found in circulation. Which brings them to where they are today. It simply does not work without a revaluation. Now that the lower demoms are also in circulation it is almost imperative to also have these coins also in circulation to conduct the day to day transactions in the public.
The CBI also announced recently they want to delay the “project to delete the zeroes” indefinitely. This means they would allow the continued use of the three zeroes notes and not completely convert over to the lower denominations (the permanent currency) until some time in the later future years. This of course is going to create an even larger mess for their monetary policy. One they may never recover from.
So the pressure is enormous to continue and complete the currency reform projects. So why do they not do it? What has been the holdup?
As I have said in many of my past news letters the USA holds the final key to letting the rollout process of the revaluation complete to its final stage. They control the software. So far they have been reluctant to allow this to take place and are stalling the process until they get what they want out of Iraq. We all now know what this is. It is a sense of stability and more than that it is the protection of the petro-dollar.
They are assuring this by mandating that HCL and Article 140 be fully implemented along with the other parts of the Erbil agreement and do it now. This guarantees to the USA that the US Dollar will continue to be used as the media of exchange to purchase oil from Iraq. They are now moving onto Syria to also ensure this is the case in the future and eventually are hopeful to protect the petro-dollar throughout the Middle East.
So for now it is all about finding ways to blackmail Iraq into fully implementing their economic and financial policies previously agreed to in earlier years. It is nothing now more than living up to past agreements between the USA and Iraq.
Is this a bad thing to do? I am not bringing you this news to tell you another conspiracy story but to bring you the truth so you, as a dinar holder, can know what is going on behind the scenes and why. That is all. You do want to know why it is taking so darn long to RV…don’t you?
So take it or leave it. I for one, do not want to see the USD crash and so maybe this could be good thing to do for Iraq and the western world. Iraq, on the other hand, likes it’s newly found sovereignty and wants to decide on it own how to negotiate the selling of its own resources, namely oil. I think we may see a quick turnaround on this topic very quickly if we see the HCL and Article 140 get fully implemented soon. This may be the week from what I am hearing.
One more note to think about- Why would the CBI postpone indefinitely the project to delete the zeros? Are they doing this to use it merely as leverage and are sending a message to the USA? There is definitely something going now. A battle between the USA and Iraq on this topic. Now that Maliki is no longer in power will Abadi pursue the better course of action for the USA and the petro-dollar? I mentioned the meeting this week with the Kurds on this topic for a reason. These issues need to be addressed and I believe if the Kurds go along with the plan we could see some RV results very quickly.
Pay attention to the coming articles on this topic.
Update on the Ongoing 2014 Budget Saga
The government is seeking to re-send the bill to the federal financial budget in 2014 to the House of Representatives. It will include only a budget for a period of three months for approval, pointing out that they would have to delay much of the investment budget to the year 2015. They are wanting to send this to parliament this week.
So today’s news may not be spectacular but it is again very encouraging.
So where is the RV as many were told once again this was going to happen over the weekend. Gee Whiz….As I said many times to follow the formation of the government and the implementation of the reforms (formulated to set the government) and you can follow the timing of the RV.
The implementation of these reforms will bring the level of stability they are requiring in the new Iraq government. Many of the new reform are actually from the 2010 Erbil agreement and are just now resurfacing. They must be implemented to go forward with the plan USA has for Iraq, sovereignty or no sovereignty.
We continue to wait once again for the controversial ministers to be seated. Too bad the security minister now is also once again being disputed. This now includes the Defense and Security ministers – 2 of the key ministerial positions. I am told there is very good possibility this could happen in next week’s sessions in parliament along with possibly the budget being voted on. I think the 2014 budget if being held hostage until these ministers are seated. We could see the budget implementation very quickly once all the ministers are fully seated (no longer any proxy ministers).
Remember also what Maliki did in the last election. The PTB are not going to go down this same road again and will ensure the government is truly fully formed and functional this time. The list of the Erbil agreements in the new Unity Government Reform list must also be addressed prior to any RV.
Then when can we expect the RV?
All I will say is what I have been saying all along we wait for a formal (global) announcement to the public that the Iraq government is now fully formed and seated.
I want to emphasize once again this final announcement of the IQD going international will not happen until the USA feels the country of Iraq and its government is stable, non-sectarian and is a functional government. This is has been the plan all along. They may have wavered a bit on how the plan was implemented but the overall plan guidelines have not changed.
I hope now after reading my last two posts- that of today and of 9/16 that you are beginning to truly understand the concept of what is meant by enough “stability”. I also hope you can now understand the difference between political, economic and military stability and how these can all relate to an overall increased stability in Iraq and thus lead to the final goal we all watch for – the final rollout of their currency to the international community.
Peace and Luv To Ya All,