(Thank you George for emailing this to Dinar Recaps.)
UU6830 –"WOW!!!! – So Many Golden Nuggets" by Mnt Goat
So far we are seeing many things on path for a late Dec 2015 or early 2016 RV window of opportunity. There is a very strong indication for this window. I am not saying it WILL RV because the environment in Iraq could change as it did in 2012. It is very dynamic. We base this on FACTS not on some secret source whispering intel in my ear……lol…..
The so called intel “gurus” had absolutely NO sound evidence or FACTS to back up to allow you to believe this RV would or could have happened so far. I am talking about FACTS and not some DC contact or some “secret” sources from Iraq or calls made to banks in other countries.
In my past news letters I asked everyone to be on the look out for certain events. These events would be our golden nuggets we have been waiting for.
I have said that only when you see these events (golden nuggets) could there be a strong indication of an upcoming RV window of opportunity. Such signs as news of launching the new 50k or 100k notes, articles about increasing the value of the dinar, distributing the lower denominations and coins, news of going international, deleting the zeros, putting the currency on a float, etc.
News leaks from Iraq are simply too easy with modern technology. There was no way there would ever be an RV and have come out of the blue all of a sudden, as many intel gurus have led you to believe would and could happen. The news media is always going to give some hint of a pending RV.
Also Iraq simply is not going to just trigger an RV without doing all the needed preparation for it. If you know what to look for you can see the path they are taking through this preparation. Normal people not already invested and watching would miss and overlook this data. Not us though since many of us now know what to look for and to watch closely.
Today is Tuesday November 10th. All is looking very good ! Just do many GOLDEN NUGGETS I had to come out with a news letter today to show you my amazement and excitement. NEVER before since 2012 have we seen such discussion and events unfolding to indicate an RV is just on the horizon.
We are now into the second week of November already and we see this movement to get the budget completed and maybe even in the next couple weeks. At least we ready Abadi and Jubouri has a meeting and Abadi stressed to Jubouri the need to push parliament. Then we read that today parliament plans to do the first reading on the 2016 budget. Amazing isn’t it?
In my last news letter I talked about helping you sort out some of the “balls” that Iraq is juggling right now. If you know these projects or programs ( refer to them as the juggling balls) they are working on, then it is much easier to read the articles and know what they are talking about. Right now this is the pulse of Iraq. I have also tried to give you a brief update on each of these items from the news over the weekend and so far this week. I hope this was helpful to everyone.
One of these so called “balls” they are juggling is the currency reform. I will talk more on this in today’s news letter.
So what pops out at us recently on the currency reform project?
Many GOLDEN NUGGETs. Wow! - So many nuggets just recently on the currency reform. We hear the economist once again having a debate over an aspect of currency reform. Last week it was about the issue of a “fixed” vs “float” now its about the effects on the continuance of the “project to delete the zeros”. Why now all of a sudden?
Another GOLDEN NUGGET - The article below is about the project to delete the zeros and is amazing as they already told us last spring they would think about continuing the project to delete the zeros once again in early 2016. So we are getting close to this timeframe and once again we see them setting this up for a future timeframe. The good news they are discussing it again along with other items very pertinent to the RV and they are all goodies we expect and should expect right about now to see. The timing is perfect.
Are these economists writing these article to help the general public understand what is about to happen? I believe they are.
I will quote from the article – “He Ghalibi that the deletion of zeros does not entitle monetary institutions and the Central Bank as the authority responsible for the release to print more money and pumped into the economy, but he restricted including existing cash in the replacement process”.
So what I believe they are saying in the part that I quoted from this article is this. They are telling us that to delete the zeroes would mean decreasing the money supply thus how do you maintain a level money supply then? The economists then goes on to tell us it DOES NOT mean the CBI will go print more three zero notes but rather the plan it to replace the three zero notes with newer notes already ready. (there is a plan in place)
I quote again from the article – “As long as the purchasing power, the demand for the currency does not change, as well as the money supply does not change”
So what they also go to tell us is they do not want the purchasing power to decrease with the replacement notes as they want at least the same equivalent if not higher purchasing power. What they are afraid of most is getting into a case of hyperinflation with much less purchasing power by having too much currency in circulation from the replacement currency. They are advising the CBI to be careful.
DELETE THE ZEROS OF ENCOURAGING THE FLOW OF FUNDS TOWARDS THE INSIDE
BAGHDAD - Imad Emirate
Confirmed an academic economist and an expert on the process of deleting the zeros are not economic impacts him in the cash value of the currency but is a procedure for re-grading and changed.
Said Dr. Abdul-Hussein Jalil Ghalibi from the Faculty of Management and Economics at the University of Kufa, that the spillover which can feel about in the long run it will encourage the investors' capital flow towards the inside of the expectation of low inflation, returned this thing that depends on the government's ability in establishing the ultimate effect of the deletion of zeros.
He noted that changing the currency and delete the zeros of which is just a re-calibration or calibrator does not mean never lifted value The addition of zeros is not a reduction of the value of the currency, and that changing the currency does not exist has a real economic impact because the change will not increase the gross domestic product, which is the standard which is used to measure the production of goods and services in the country.
He said Ghalibi: The change of the currency does not affect productivity because factors governed by major resources, technology and institutions are not affected by the currency change, explaining that this change does not affect the purchasing power of money because the strength of the currency comes from increased demand in exchange for the money supply. As long as the purchasing power, the demand for the currency does not change does not change, as well as the money supply does not change.
He Ghalibi that the deletion of zeros does not entitle monetary institutions and the Central Bank as the authority responsible for the release to print more money and pumped into the economy, but he restricted including existing cash in the replacement process. He went on saying: either the external sector, the position will not also be affected, because the price of exports will continue to be the same without changing the payments spent on imports are not affected because foreign exchange is disbursement of foreign exchange for the local currency, which remains unchanged because the purchasing power of the currency does not change.
It was concluded d. Ghalibi that the direct economic impact on the micro and macro economy would be zero, as the demand and supply of goods and services does not change, as well as the investment of net government spending and balance of payments and consumption will not infect any change.
He either money markets are no other economic effect can be felt on the variables. The prices of assets remains selected in the first and secondary markets but it goes down to reflect the new structure after deletion of zeros.
He concluded d. Ghalibi to the nominal value of the money used to acquire assets will be adjusted in the light of this, and that the ultimate effect would be zero making and trading and commercial value, indicators and other market market capitalization subject to the same mechanism by deleting the same zeros.
He reiterated that the effect is direct and which can palpation over the long term will encourage the flow of capital towards the inside and that foreign investors will put more confidence in the investment climate, which will improve with time in the country. The rush to put their money in the local financial markets awaiting returns largest departing from the basic assumption centered on low inflation and improved macroeconomic policies, and this also depends on the possibilities of the government in establishing the ultimate effect in the long run.
Next another GOLDEN NUGGET. I got to tell you I did not intend to do a news letter today but since the golden nuggets of news just kept flowing in I knew something was up.
Link to PART 2