[oogie] 3) From Helios1: Just wondering, if Scooter would address how core inflation is determined and if he has found that the core inflation percentages posted by the CBI to be lacking other essential defining criteria and therefore are not reflecting the accurate core inflation percentages?
[Scooter-EG] Great question and let me get the definition from the recent financial indicators here's why this is key because back in 2006 – 2007 the terror groups were just shredding that economy and core inflation started to diverge from headline inflation and nobody understood why
[Scooter-EG] well for one reason they really didn't do a good job of defining those parameters because one includes oil consumption and usage in the CPI and the other indicator doesn't
Read More Link On Right
[Scooter-EG] I don't think the CBI's completely up to date with all their indicators let me get You a link to the GDDS and Iraq and that tells you all the parameters and when you look at them you'll notice that when compared to US or an advanced economy they are lacking some serious data
[Scooter-EG] That link will show you what the short term priorities are for the CBI Just thought that would help now back to the last part of the question one of the things that Iraq cannot do ever ever ever again is loose track of the USD circulation inside the country because when they do loose control and times become heavilly inflationary
[Scooter-EG] what will the citizens do to combat inflation they'll go back to using the USD to purchase all their goods and services so to answer your question I think the CBI is lacking some serious indicators absolutely YEs
[Scooter-EG] However, they are also undergoing and deploying some heavy duty transactional systems that will automatically record much of the needed economic data that will get them up to speed with the world community ok next question
[oogie] 4) from pops5022: What would the results be on the typical person on the streets of Iraq if a RV comes to be at 1 to 1 or higher? How would it affect inflation or would it? Can the country stand a change so dramatic? Would it take away the dependence on using USD.
[Scooter-EG] WOW great questions hmmmm how to answer that one first let me say this nobody -- and I mean no one except a handful of people know what's going to happen with that said to answer your first part of the question my answer is It depends Here's why I say that
[Scooter-EG] How prepared is the government and businesses for that dramatic shift transactions all over the place the merchants must be prepared for that kind of sudden shift Now on to Inflation In my opinion, and my opinion only If the CPI is in line and the merchants are as well it won't have a dramatic shift in inflation
[Scooter-EG] this is why I think it's going to be a concurrently deployed HYBRID solution and it will be done over a course of 24 - 36 months sorry 12 - 36 months they might make some type of announcement in 2013 but to deploy something that big will take a lot of coordination and take a longer period to complete
[Scooter-EG] Perhaps I'm incorrect but that is a great question and thank you pops for asking it next
[oogie] next question:
[oogie] 5) from lightingcslt: scooter please break this article down for us ty
[Scooter-EG] BAGHDAD / JD / .. Announced that the Finance Committee for its parliamentary transfer of banking and fiscal problems that has plagued Iraq to the U.S. Congress. A member of the Committee and the representative of a coalition of state law Haitham Jubouri's / JD / The "throw the last, which brought together the Commission with a delegation from the U.S. Treasury Department and the U.S. embassy in Baghdad discussed the problems of the banking system and taxation in Iraq, in addition to the multiplicity of revenues and implementation of Almoisma of Iraq." The Jubouri "The delegation, cut us a promise to transfer these problems to the Treasury Committee in Congress, in addition to the U.S. Treasury."
"The delegation stressed after the transfer of these problems will determine for us after a common agenda," includes workshops, seminars, and conferences, whether in Washington or Baghdad to develop the work of the Finance Committee of parliament and staff as consultants, as well as creating cadres of full development
[Scooter-EG] of the budget preparation. "And between a member Finance Committee and parliamentary deputy, a coalition of state law "that Iraq needs to workshops and training sessions and meetings continue to take advantage of the experience of U.S. banking and Maya."
The decision of the Finance Committee and the representative of the Iraqi List, Ahmed electrodes received on Tuesday (06/05/2012) at the headquarters of the Commission and a delegation from the U.S. Treasury Department and the U.S. embassy in Baghdad.
During the meeting, discussion of the general frameworks for financial management and areas of future cooperation between the parties. / Finished / Nazik Mohammed
[Scooter-EG] ok -- give me a second What ?
[oogie] no problem scooter
[Scooter-EG] they aer going to transfer their problems to US congress How in the world will they do that hmmmm let me read the rest hmmmm ok Well let me tell you all this US AID
[Scooter-EG] they currently have been working in conjunction with the Iraqi Finance committee and CBI for the last 9 years it was one of the first things they did it's called the Tijara project https://tijara-iraq.com/
[Scooter-EG] In essense the US has been writing their business cases for years
so for them to say they are going to parlay all their problems to us well they need to take the responsibility and do the rest on their own perhaps I'm wrong but the need to show they can accomplish some basic task on their own without help just my opinion ok next
[oogie] ok ty
[oogie] 6) from tlm724: Scooter, is there a "requirement" for Iraq to have a convertible currency prior to being released from chapter 7 by UNSC ? Would you also be kind enough to explain to us what a convertible currency is ? Thank you
[Scooter-EG] hmmmm well let me ask you this question are they making trades today with the IQD I mean transactions from one bank to another and the answer is Yes they are they are purchasing products right now using IQD with neighbor now with that said
[Scooter-EG] it's a bit difficult when you are using the same tools that the rest of the world is using so to say a convertible currency ] hmmmm I can convert mine right now however it's they aren't ready for the world stage -- in my opinion to answer the other part of that question yes
[Scooter-EG] it's a requirement to have a currency which is convertible ] and a lot of that is based on the faith and belief that currency holds value here's an example during the days of Saddam and the US were going at it the Kurds were using Swiss Dinar notes for their trading now here's the phenomena
[Scooter-EG] even though that currency wasn't backed by any government at the time the currencies value increased Why did that occur because of simple faith and belief that that note held a value
[Scooter-EG] that story was written and documented by the BIS Bank of International Settlement That is the Central Bank of all Central Banks worldwide nevertheless I think it's a good example ok -- last question
[oogie] 7) another from helios1 : Does Iraq need to have the valuation of their money changed/increased prior to accession to the WTO? If so, does this also mean that they would need to RV their money regardless of what we've all heard rumored re the requirements for them to be out of Ch 7 before they may RV (can RV without release from Ch 7)?
[Scooter-EG] thanks for the question helios1 because that's another good one
[Scooter-EG] Iraq can determine the value of their currency to whatever value they want' and at anytime the IMF may not approve the world bank may not approve but they can assign a value if they choose now with that said NO
[Scooter-EG] Iraq doesn't need to RV their currency in order to join the WTO What they do need to occur in order to play on the world stage is to get out from under the Chpt 7 protection IMO CHPT 7 will need to be completetly removed before joining the WTO – IMO I wouldn't listen to any rumors I haven't found one that's been correct ok
[oogie] wow ty scooter-eg
[Scooter-EG] Thank you so much and I apologize for the lateness
[oogie] no problem scooter
[player46] Scooter-EG .. TY for your time once again..
[Scooter-EG] I sincerely hope these discussions help everybody
[oogie] we really appreciate your time
[DogzNova] great way to end it.. .. No rumors