(Thank you Love's Love post at PD - LONG)
The Call Squad
August 7, 2011
Patriot, Joey, Vic, Tim, Scott, Steve, Diana, Deb, Pam, Yukon
Patriot describes a variety of missions, objectives, style, sources, and intentions of the squad that can be heard at the beginning of every call replayed on the website:. See very interesting free documents and downloads often referred to on calls, for your edification. Especially look for our ‘Freedom From Intel’. This is an official document which is the Unclassified US State Dept. report called ‘The Iraq Project’. It has been theblueprint for rebuilding Iraq written in 2002. They are still following this plan very specifically, so there is no need for rumors or high placed contacts with so-called intelligence. This is the plan and we help you analyze the news media reporting the steps as they are completed.
The Call Squad broadcasts: Sunday thru Thursday, 8pm to Midnight EST, even after the RV
Or call for Replays of every night’s calls: 760-569-7699, pin 637255# or Backup 194924#
Patriot: It’s been full of info this weekend since the last call Thursday. We’re seeing a lot of new names posting information with little or no credible history of Dinar expertise or connections.
Read More button on right
oey: Always good news
Draft Policies Council Law Close To Completion
Baghdad, Aug. 7 (AKnews) – President Jalal Talabani will submit the draft law for the National Council of Strategic Policies (NCSP) to parliament for approval within the next 48 hours, his office announced today.
The leaders of the political blocs agreed last week to establish the new council – part of a bid to withdraw some of the powers of the Prime Minister and distribute decision-making across the political spectrum – without further delay.
Presidential office chief Naseer al-Ani told AKnews that the preparation of the draft law is close to completion.
In October 2010, the Iraqi -Kurdistan Region's President, Massoud Barzani, launched an initiative, the Erbil agreement, by which all Iraqi political leaders agreed to form a national-partnership government thus bringing to an end a 9-month political impasse over the country’s three key executive seats of power.
Under the Erbil agreement, Maliki and Iraqi President Jalal Talabani – a Kurd – were to retain their offices for a second term, and al-Iraqiya List leader Ayad Allawi, who secured a narrow majority of votes in the elections, would head a new executive body called the National Council for Strategic Policies (NCSP) as an attempt to maintain balance.
The council is expected to be responsible for drafting internal, foreign, economic and security policies, as well as forming strategies for managing the country’s natural resources and energy.
Since the new government was formed in December last year however, the al-Iraqiya List has repeatedly accused Maliki, whose list only overcame Allawi’s by controversially forming a super-bloc, the National Coalition (NC), with the Sadrist Current following the elections, of not abiding to the terms of the Erbil agreement.
With the NCSP not formed more than seven months after the Erbil accord was signed, Iraqiya leaders repeatedly threatened to withdraw from the partnership government and accused Maliki of monopolizing power and failing to implement all terms of the deal.
In an attempt to broker peace between the feuding political blocs once more, President Talabani brought the leaders of the political factions together recently in his Baghdad home for a series of talks intended to resolve the outstanding points of contention between them.
Reported by Haider Ibrahim, RN/KA/AKnews
Joey explains: So in the next 48 hours they will make and announce a new law….taking some of the power from Maliki and distribute throughout the coalition GOI. Allawi is now the president of the Strategic Policy Council and he is expected to draft internal reforms and strategies to conduct the good management of Iraq’s resources, the wealth of the nation. So it’s interesting that they are now defining what Allawi’s position will be, his objectives. It also implies about how some in parliament are not happy with Maliki’s constant monopoly of power.
Joey: Quotes from a similar article, but never says the title:
That talks about how they met in Talabani’s house; the mechanism for the survival of US forces to remain as trainers. It also reiterated Mr. Ashurs article from late last week…that the meeting in Talabani’s home was fruitful and brought a close of views, that the blocs of the coalition GOI are now in confirmation on the state of activation in the importance of political consensus and agreement of Erbil ….and of what was agreed upon for the National Partnership, which was the most important truce in the announcement of Erbil.
Joey: Sounds like it’s pretty well done? Right?
Patriot: yea, when you hear words like ‘Implemented’ and ‘Testing Phase of the Execution’, they’re rolling this out in small baby steps; little sound-bites that the public and world can chew and swallow…and we all know that this was all pretty much done on June 30 with need for an amendment which was done on July 9th at President Talabani’s home, with witnesses that the Erbil was signed. We’re trying to translate that, we don’t know if the signatures were signed on the 9th, or if witnesses saw documents that may have been signed before the 9th….they’re in the implementation stage, this is all good stuff pointing in the right direction. That does not mean any of us can predict the date of the RV or rate. We’ve seen the Aug to Aug deadline of responsibility put out by IMF to Iraq. (Please go to the website to review past audio recordings or transcripts for explicit details on these developments)
And we’ve also heard hint of a salary or pay raise to occur approximately 3 days after the RV, have we heard or found any more about that yet?
Joey: I personally haven’t found anything else that mentioned that the salaries may go up in September, other than something mentioned by ‘Studley’, but we’re trying to find more corroboration and until that is found, we should not assume.
Joey reads an article: The CBI’s Plan For Reducing Its Iraqi Dinar
The oil wealth and progress of the proceeds of abundant, secure the cover of the national currency with the Iraqi dinar has become one of the strongest currencies in the Middle East.
The central bank has the distribution of foreign exchange reserves in a basket of currencies like the dollar and the pound sterling and the Japanese yen as well as its reserve of gold so that the cover of the Iraqi dinar remains strong, regardless of fluctuations in the currency market.
Until the early eighties was the Iraqi dinar equivalent of more than three dollars U.S., but the damage to the Iraqi economy since the invasion of Kuwait at this time 21 years ago and subsequent wars and international sanctions, ensured all firing runaway inflation destroyed the value of the Iraqi dinar so that the price now spent more than a thousand dinars to the dollar.
Coupled with the erosion of the value of the currency and banking financial difficulties; the administrative and accounting are still different, especially in trade and handle daily cash.
Faced with this situation since the central bank decided early in 2010 a plan to drop three zeros from the Iraqi currency nominal and pave the way for a gradual procedure that preserves the purchasing power and prevent the exposure of the Iraqi market to the economic turmoil hurt consumers.
Radio Free Iraq adviser met with the Central Bank of the appearance of Mohammed Saleh, who reviewed the falling value of the Iraqi dinar, referring to the deletion of zeros is part of a project to reform the management of the national currency.
The Chancellor said Mohammed Saleh, the burden posed by the mass cash payment system, as reflected in the revenue budget figures, for example, trillions. Mohammed Saleh pointed out that the draft dropping zeros from Iraqi dinar is based on optimistic forecasts the prospects for the development of the Iraqi economy in the coming period.
He revealed the central bank adviser said the bank plans to return to the coin because of their preferences on paper currency, especially from small groups that are not worth the trouble worth dealing with.
Mohammed Saleh refused to set a date to launch new dinar, saying that the management reform of the national currency a strategic project, but stressed that the central bank will be within a month of the implementation of an integrated plan to the Cabinet the last word in this regard.
Expert in the Ministry of Finance, Crescent Miller predicted that the result in the deletion of zeros from lower inflation, noting that countries such as Turkey and Brazil prior to Iraq in this area.
Miller noted the characteristics of the new currency trading is expected after this procedure, including the adoption of the three languages are Arabic, Kurdish and English, only the symbols of civilization and to prevent the use of pictures of any official.
The expert in the Ministry of Finance on the conviction that the process of replacing the currency will be smooth, especially as the old currency will remain in circulation alongside the new currency of time to allow a gradual withdrawal of steps does not affect the daily exchanges.
Economic analyst, Basil Jamil Antoine ruled economy is affected by changing money, but called for an awareness campaign to prepare public opinion and to the logistical procedures in financial institutions involved.
One benefit of the consumer citizen is expected to result directly delete the zeros of the possibility of using vending machines that are still unknown in Iraq because of the technical and practical difficulties in the mobilization of these ATMs in Iraqi dinars now.
Contributed to the file via Radio Free Iraq in Baghdad, Khalid Waleed
Joey: That’s a pretty thorough and conclusive article that says a whole lot! That is very positive!
Deb reads: Iraq Planning To Trim Three Zeros From Currency
Iraq: 14 hours, 34 minutes ago
Deputy Governor of Iraq's central bank Mudher Kasim has revealed plans to re-denominate its dinar currency by removing three zeros off the nominal value of bank notes to simplify financial transactions, Reuters has reported. The new currency is expected to be used in the market in three years and it would have no impact on inflation, he said. 'This will facilitate the payments system ... instead of carrying a lot of money, we will carry less. This is an important reform,' Kasim told the news service.
Patriot: Responds that it really emphasizes that the lower denominations will be the future of the Iraq economy though it may take some time for that to be fully transitioned; that is good, nothing abrupt.
LONGER VERSION: same title
Iraq plans to delete the three zeroes from the currency
Source: BAGHDAD (Reuters) Date: August 7, 2011
Deputy Governor of the Central Bank of Iraq the appearance of Qasim, yesterday, said that Iraq intends to amend the categories of its currency (the dinar), by deleting three zeros, in order to facilitate financial transactions.
He said he expects to use the categories of the new currency in the market in three years, and not to affect inflation, pointing out that the goal is to facilitate the payment system.
Qassem added that the planning and preparation stage has been completed, and that the proposal will be submitted to the government next month, and that it will use the coins for the first time, and it will require the approval of Parliament as well.
The Central Bank of Iraq began last year, to discuss amending the categories of the dinar, which has the highest category of 25 thousand dinars, worth about $ 21.
It is noteworthy that a large part of the payments being in cash in Iraq, because of the evolution of the banking system, which is complained of by investors, adding that Iraq's economy, which is still subject to a high degree of central planning, is suffering the administrative and procedural complexities.
Deb: I’ve received a lot of emails asking why are they talking about 3 years?
Patriot: In three years, the new currency about to be released will be the ONLY or EXCLUSIVE currency in circulation. It should be clarified, that they will be coexistent with both low and high denominations.
Joey: This will facilitate the payment system, that they will carry less money, is a good indication, that they will be able to stop carrying the
Deb: ….the proposal will be submitted next month and they will use the coins and higher categories and this will be happening because the investors complain …red tape, beauacracy, and transactions still being carried out in cash.
Joey: This is very positive, Shabibi confirming again they will coexist and they will gradually remove the older large denominations.
Patriot: This also buries the rumor we will have a handful of days to cash out. We had been hearing two years, now three. This totally takes that fear rumor of 30 days or whatever to exchange the large denoms we hold.
Pam: This also EMPHASIZES our instructions and suggestion that people should take their time, even to do nothing until we find out the rules of this transaction, to look at all the tax issues, etc. There is no hurry.
Patriot: You cannot redo or start over or resubmit for a mistake with the IRS, no second chances are exist.
Patriot: Only 15% of the citizens have bank accounts, and 85% are doubtful of the bank from experience with Saddam era. They have little or no electronic banking experience or trust; no checkbook or credit cards.
Deb reads another Article about the Ration Cards:
Committee On Economics: A System (one basket) To The Ration Card Will Be Implemented Next Month
On: Sat 08/06/2011 8:47
Baghdad (news). Committee announced that the economy and the investment that the parliamentary system (one basket) to the ration card will be implemented next month.
A member of the Committee on Economy and parliamentary deputy / coalition in Iraq / Nahida Daini told the reporter Agency (news) on Saturday: "After discussions with the minister of trade was agreed to apply the basket one of the items of the ration card next month, noting that the committee demanded the withdrawal of the amounts provided by the citizen to the agent and to reduce the greed and the exploitation of some agents.
She said Dani: "The Committee submitted a proposal to the Council of Ministers to withdraw the amounts of the ration card of the citizen and to the large number of complaints from citizens, (interpreted) there are more than (59) A and agent, mostly they take (3000) dinars for each substance, knowing that the state's share of the individual is (250) dinars. "
She Daini in an earlier statement (the news) that there are comfortable with a popular proposal for the ration card (the basket one) in most provinces of Iraq, as well as we are assured that the quality is imported from the first class, whether by the provincial or the Ministry of Trade or some of the companies . / End / 12. t. M
Patriot: Ration Cards will be implemented next month, going to the poorest of the poor, 26% of the welfare type status or class here in the US that gets so much credit for staples. Apparently agents are scamming these innocent, possibly uneducated people, where they were being taken advantage of. They are spending a lot of time cleaning up the scammers and their corruption.
Deb: Shell Oil Company fed a lot of people today, trying to earn good will.
Patriot: Profiteering, abuse of citizens, old ways of doing things are really being cracked down the past couple months. They’re taking control of the business environment, preparing for the wealth to arrive.
Joey reads another article: About the Port of Faw, which shares the Port of Basra with Kuwait, in that same area
Economist's - The Most Important Port Of Faw, Joints Economic Advancement Project Future Returns
From Going Global; BAGHDAD - Hussein Farhan
Stressed the economic expert Hassan al-Asadi the importance of working to establish a port of Faw, for his prominent role in the recycling of Iraq's economic growth, as it enjoys the advantages of the site serves the global trade, where the geographical location on the globe.
He said in an interview (Citizen) The decision-makers did not realize the movement of the world rapidly and that great opportunities will not be repeated easily and that the world and minds actors where you can find dozens of alternative solutions, indicating we want to offer ideas and visions for the project free economic zone of the FAO (or the so-called port Faw).
All the observations and ideas that will be based primarily on the seriousness and extent of absorption of the decision-makers of the importance of this project and serious desire in its implementation and that the private returns of this project is not immediate, but returns are returns for the future.
He pointed out that the conditions since 1985 (date of submission of the proposal for the first time) and up to the year 2011, a period amounted to twenty-six-year-old got the many changes, both with regard to the port of Hong Kong, which was proposed project is a replacement or economic zone in the Persian Gulf and the establishment of a number of modern ports that use advanced techniques, it has become necessary to review the economic feasibility studies for the project to make sure that what was feasible in the eighties and nineties of the last century is still viable after three decades already. Iraq and the Port of Faw ~ The planning mechanisms adopted by the world's developed countries for this project since the eighties
He pointed out that the proposed project with the cost of a large excess of (20) billion dollars to all the paragraphs and stages and the best formulas for its implementation is put forward as a global investment group.
The international investors with great potential, which covers such a project can not invest in such a project were not what they have a clear vision and accurate for the project and expected results.
To achieve this, we must assign offices of engineering experience and the freedom and economic Feasibility studies are detailed in all the paragraphs of the project with the economic analysis of a comprehensive returns expected economic both from the main port, which will be Mrdodath complex include the transit trade from Europe via Iraq, and what is the expected size of this trade and Mrdodadtha is economic in both directions up and down.
And export of crude oil from production sites in Iraq to the ports of the world.
As well as the export of oil products from refineries expected to sites created in the free zone to the ports of the world.
And export of liquid gas in both directions to the sea and land ports of the world and the liquid gas installations in the free zone.
And export of petrochemicals in both directions to the sea and land ports of the world. And petrochemical complexes are expected created in the free zone.
And determine the industrial zone in the free zone and the types of industries that will be the (light medium, heavy) as well as identifying the business district in the free zone and the types of services required of their stores and roofs and surfaces exposed, etc.. He continued: In addition to the preparation of studies for the establishment of the railway line from the FAO to the Turkish border, or update a comprehensive line of rail current and stations and areas of trade in which so that it can achieve the loads required of it and velocities high required to study the possibility of electrification of the railway line in the five years subsequent to increase the speed lines, as well as preparation of studies for the establishment of Highway Baghdad, the Turkish border, a project a basic and essential as you can not rely on traffic routes which do not exceed the current axle load them (9) tons were maintained in earnest more than (25) years, the time dependent loads central European roads (11-13 tons).
The truck-based load central (11-13 tons) will be an ideal way for the destruction of Iraqi roads with axle load (9) tons in record time and became the establishment of Highway, which is designed to carry axial (13) tons, an essential part of the project. And increased al-Asadi said after the completion of these studies, the State law in the project as a national project strategically for the benefit of the national economy and enact the law on foundations that will reach its economic studies, feasibility studies, engineering studies and marine, which must confirm that the reasons, objectives and expected results of previous studies is still on and confirmed It is possible to reach new studies to the development of proposals for a revised basic idea of the project.
He suggested that the law (Add all the contents of legal materials) ratio, which will participate with the Iraqi government (if it was necessary for the government to participate in proportion to to cover the cost of infrastructure facilities in the project and to have an influential voice in the management of the project).
And the formation of the implementation of the project and the Ministry of powers (if not a special ministry to the project) will be more important than half of the existing ministries.
And includes the formation of the Project Board, which will be attended by investors participating in the project and involved government representatives.
It brings together a number of configurations with sub-specialized administrative and legal formations and the formation of a special research studies and specialized committees what you see at the time of the configurations necessary for the body.
Are displayed as the topic of investment to declare an international in all countries of the world's major with the invitations directly to the senior international investors, with the work program of propaganda and wide through the Ministry of Foreign Affairs and our embassies abroad and Mlhakaatna commercial publication of the notice in the local newspapers of the countries where they are located.
In addition to the importance of holding a special conference called by a number of international investors with the cadres of engineering, economic freedom and to present the project and its features and facilities provided by and expected results.
Joey summarizes key points: They’re going to spend 20 Billion USD on this and they’ve been planning for 30 years, so now that the money is foreseeable, they have to go back to review the plans and the technology to determine if the old plans are modern enough, or can be retrofitted with the latest and greatest port shipping technology, crane mechanics and computer software for optimization of time and labor. This is world class, in fact they refer to this as The World’s Port
Joey comments: When Zebari was taking a team to Kuwait, they were not fighting about the rights to build the port, but they were looking at technical strategies to optimize this port for both countries. Everybody knows how important this is for both sides; they’ve been studying the feasibility with some of the biggest experts in the world, and large investors for the joint venture.
Scott says Joey’s port article relates to this article, he reads: Kuwait Affirms Keenness ON Good Ties With Iraq
Politics 8/7/2011 5:53:00 PM
Foreign Ministry Undersecretary Khaled Al-Jarallah
KUWAIT, Aug 7 (KUNA) -- Kuwait is keen on maintaining good neighborliness ties with Iraq and clarifying all facts related to the Mubarak Al-Kabeer Port venture, the Foreign Ministry affirmed on Sunday.
Khaled Al-Jarallah, the ministry undersecretary, in a statement to journalists after a presentation about the phases of the mega project, said it was held in reaction to the "media commotion" about the project, which would not serve the distinctive ties between the State of Kuwait "and the brothers in Iraq on the basis of our keenness on maintaining good neighborliness relations with the brothers in Iraq and clarifying matters to them." Kuwaiti officials have presented the diplomats in the country with technical explanation on various aspects of the project related to its location, its prospected effects on navigation, the environment, in addition to some related economic aspects, Al-Jarallah stated.
He indicated that the Kuwaiti-Iraqi commission meeting, on May 28, during which the Kuwaiti side explained to the Iraqi counterparts some dimensions of the major venture, and a field inspection of the project location by the Iraqis resulted in clarifying the situation in the eyes of the Iraqis.
He indicated at the Iraqis' desire to send in a delegation of technicians to gather further information and facts related to the venture, expressing readiness to cooperate with the visitors and inform them about any issues they may inquire about.
"We are certain that when we meet the Iraqi brothers and explain details of the project, we will able to fold this chapter and close this file," the senior foreign ministry official added.
Both Kuwait and Iraq need ports in the region, he said, noting that Kuwait needs to build such a port as much as the Iraqis need Faw Port. "We have taken the stance on the basis of an approach for integration, and not competition, with our brothers in Iraq," he pointed out.
Reacting to Iraq's warning that it would resort to the United Nations in case Kuwait proceeded with the execution of the venture, the ministry undersecretary said, "We have a long path ahead of referring the issue to the United Nations," stressing that this file could be folded through diplomatic dialogue, understanding and transparency.
He denied existence of intransigence on the Iraqi side on the issue, but added that the Iraqis were seeking certain answers, affirming the readiness to do so on the basis of good neighborliness relations and shifting these ties "from a dark to a bright phase." Al-Jarallah re-affirmed that the venture would neither affect the navigation, nor the waters in the region.
He ruled out resorting to the "military option," as raised by some quarters in Iraq, however, he stressed that Kuwait was ready for all the options.
About reports that the Iraqis would not do business with the planned Kuwaiti port, Al-Jarallah noted that such a desire was expressed before the Iraqis were given accurate information about the venture. "Boycotting the port will not serve the interests of Iraq and Kuwait," he added.
The official indicated at the necessity of cooperation between the authorities at the Iraqi and Kuwaiti harbors in the region, and cautioned that "such a negative approach would not serve development in the region." On the issues of dealing with the Syrian ambassador in light of the events in his country, he said that dealing with the diplomat is governed with well-known treaties.
Asked about intention to take legal action against those who have threatened the Syrian ambassador, he emphasized that the authorities would act on the basis of relevant laws.
On prospected action by the GCC toward the events in Syria, Al-Jarallah said he could not speak for sure regarding such an eventual action. (end) hrz.abd.rk
Scott comments: This is basically stating what Joey just read about the ports but this is the Kuwaiti perspective from the Kuwaiti News Agency. Both countries, and the world need ports in this region; I like the ‘we’ve taken the point of integration, not competition with our brothers from Iraq.’
Joey: It’s good to hear them use the word, ‘brother’ after all they’ve been thru. There’s no fighting here; it was decided long ago. I don’t know where everyone gets info that they are not out of chapter 7? They want to do business with each other; they know how good it’s going to get for both nations of people. Kuwait’s economy is faltering too, they would never do anything to disrupt the future they see within their grasp that will come in and out of that bay.
Pam: Not just the energy resources but all the goods, the agriculture products, other industries that will develop also. Joey agrees.
Scott states “What Starts Here Has Ripple Effects Around The World”
Scott reads: Downgrade Panic Sets In
Middle East stock markets plunge on US downgrade
August 7, 2011 By Financial Bin Leave a Comment
Ahram Online: The effects of the US debt crisis began to spread on Sunday with Middle Eastern financial markets plunging following the downgrade of the US’s long time AAA credit rating to AA+ by Standard’s and Poor late last week.
Investors rushed to trade their stocks under increasing global financial pressures as exchanges across the region reopened after the weekend.
Egypt: EGX30 — the Egyptian Bourse benchmark — dropped over 4 per cent, bringing its year-to-date losses to more than 32 per cent. The exchange finished trading down 4.17 per cent.
Dubai: In early trading, the Dubai Financial Market’s index plunged more than 5 per cent before rebounding slightly, its losses dampened to 4.4 per cent by closing.
Dubai’s leading real estate and world’s tallest tower developer, Emaar Properties, slumped 5.26 per cent.
Shares in Emirati construction giant Arabtec Holding also saw a 6.29 per cent drop.
Saudi Arabia: Following an early plunge of 5.46 per cent, Saudi Arabia managed to balances it losses with its benchmark index closing up a tiny 0.08 per cent.
The plunge in Saudi markets was balanced by shares in the petrochemical and banking sectors. The former declined 0.26 per cent, led by an identical fall for industry giant Saudi Basic Industries Corp (SABIC).
The banking index increased 0.27 per cent owing to gains of 1.1 per cent by the Kingdom’s well-established Al-Rajhi Bank.
Israel: is tumbling 6 per cent during pre-opening trade, the Tel Aviv Stock Exchange decided to delay the week’s first session opening by an hour in fear of a further plunge of the Israel’s benchmark stock index.
The 6.04 per cent drop of the TA-25 index is said to be its lowest in almost three years.
Scott reads another: What Saudi Economists Say
Confirmed that the global economy threatened to collapse .. And the dollar is no longer a safe haven
Experts call quickly revalue the riyal and the diversification of Saudi investments
Sunday, 07 September 1432 - August 7, 2011 m
World markets await record losses
Dubai - Arab. Net
Saudi economists emphasized that the world lost a dollar as a safe haven assuring dealt with over the decades as well as gold in the event of any economic turmoil, and after agencies cut credit ratings mark the public debt of the United States yesterday.
Economists said that the positive results achieved by the Saudi riyal and the national economy over the decades by its association with the dollar is no longer available today, calling for the rapid re-evaluation of the riyal exchange rate, and proceed immediately in the distribution of Saudi investments in more than a basket rather than in one basket is a basket of America "worn".
They pointed out in speaking to a business daily newspaper, that global markets await record losses on the impact of the growing risks of dealing with America's debt.
United States lost its credit rating high AAA by credit rating agency "Standard & Poor's" yesterday to modify the unprecedented development of the largest economy in the world, which deprived the United States from the higher grade for the first time in its history, citing the dangers of a political front of bets budget deficit . And announced, "Standard & Poor's" in a statement, they lowered one degree sign U.S. public debt from AAA to the highest degree at all, to AA +.
Economists said that there re-evaluation of comprehensive risk proceeded investors from around the world to do it was the two procedures are essential, first out of the market and the second change and investment destinations, which is expected to result in a decline in global stock markets for at least 10% in the days and months ahead After losing in the last days of 4.5%, along with dollar weakness and a change in the centers of power between the world's currencies, falling oil prices.
They added, "U.S. Treasury bonds are considered a reference for granted, they are standard for the cost of money and guarantee a tool commonly used in many transactions and a refuge for investors in troubled times."
In this regard, said economic and Saudi banker - who preferred anonymity - that the circles of investment and economic development initiated by the reduction of classification, since the deliberations of the United States to raise the ceiling to take their reserves and to review the credit risk from America to Britain to China, Japan and most international economies.
And the Saudi banking that the dollar will suffer erosion of its market value in the long run, especially under the pressure of U.S. debt large, amounting to around $ 14 trillion, which is not likely ever to help austerity measures or reduction of expenditures on mitigation of its impact on the U.S. economy, which means that the empire of U.S. monetary collapse.
The dollar and gold
"The light of the dollar and gold for decades a source of security for investors and today with the growing weakness of the dollar and the inability of everyone to rely on gold, as well as initiate Europe in dealing with the crisis seriously, what could bring the euro to a good area, the change in the centers of power exchange, especially with the growing strength of Liwan, yen, pound sterling will address the next phase of the global economy. "
The Saudi banking that, at the local level, the positive results achieved by the Saudi riyal and the national economy over the decades by its association with the dollar is no longer available today, calling for a rapid re-evaluation of the riyal exchange rate, and proceed immediately in the distribution of Saudi investments in more than a basket rather than in one basket is a basket of America "worn".
On his part, Fahad Al-Saif, head of investment banking at the bank HSBC, that the map of credit ratings in the world will see for the first time in its history, substantial changes, pointing out that the last action agency Standard & Poor's no surprise that this action will raise the cost of capital for banks and investors who deal with bonds America.
He said, "there will be an additional cost of capital, especially when applying the Basel standards 3, this means that Saudi Arabia and the local economy and the Saudi banks-bearing bonds, the U.S. will have to pay the cost of additional capital."
And the sword that the diversification of investment assets is now a duty and an option not a must, noting that China and Japan and developing countries had already started to diversify their assets away from dollar investment to reduce the size of the risk.
He added, "It has become necessary to the Saudi investor to diversify his investments, whether in currency or in the U.S. economy because the issue of America's declaration of non-financial solvency have become an improbable, there was smuggling of capital, but the question Almtorah Where to? Europe experience, if the destination potential is the developing countries growing GDP growth rates which are good. "
On the other hand put Suhail pheasant, a financial analyst in the global markets, the issue of falling oil prices and collapse as the leading risks to the Saudi economy due to the turmoil that hit the U.S. economy, pointing out that during the past few days, the dollar lost 13% of its value because of the deliberations of America on the debt and reduce the classification.
And between the rider that what is happening now hit the world's disorder, severe because the United States for the first time in its history no longer has the ability to continue to spend record as Europe began to reduce its expenses, which means that the global economy moving closer to a recession and there are indications that including the decline in U.S. gross domestic product and industrial and other indicators.
"The most dangerous point that America can no longer over-issued low-interest bonds, as in the past, funding will be more difficult and may have to raise interest rates and this is another problem."
The financial analyst in the global markets that the first effects on the Saudi economy will be in oil prices and the possibility that the Kingdom recorded a deficit in the budget because of it, but he does not expect significant impacts on the exchange rate of the dollar or to reach the stage of America's inability to pay its bonds.
The United States has maintained the highest rating Standard & Poor's "AAA" since the founding of this agency in 1941. And remains in the other two largest rating agencies, Moody's is the oldest (established in 1917) and Fitch Ritingz.
The Business Bank Goldman Sachs recently that the probability of impact on a large market, has examined the potential consequences. And is expected to sign forced to reduce U.S. investors to reassess the overall risk.
Scott: Obviously there are some translation issues here, but all the economies are connected. We’ve been talking the past couple weeks about this being a global economy and is interconnected, interdependent. Today, Oil is down under $83 dpb, a week or so was over $100 dpb. Meanwhile, our own stock market is down over 10% in the past two weeks. It fell over 512 point plunge on Thursday and futures today are already down 300 pts with the Asian Market just opening for Monday’s trades as we speak here tonight. This is a tidal wave, the Asian markets are already down more than 2.5% after 50 minutes. So we have a large down swing in the global economy. Many are talking about a potential trigger event, relative to our IQD RV. We don’t know if there is such a term or situation that exists, but …..we do know we can read these articles and see how it affects a nation’s bottom line, and we can see that oil has dropped 20% in last week, so that’s taking a huge cut out of the Iraqi economy when calculating barrel price adjustments at current Iraqi production of oil now reaching 2.8 Million barrels per day. This is significant impact on the Iraqi economy. Additionally, to watch the other Mid-East stock markets drop 4-6%. This is big. In the US when the market drops more than 5% they shut down trading in the NYSE to cool off, and let the emotions relax for a while. These things are significant to our investment in currency, which has value based on the economy. So if an economy of a currency declines, then the value of that currency will follow.
… This is where the facts end. Speculators ask: “will they use the RV to reboot and save the world economy by playing the Ace they have ‘in the hole’; or will they wait and see if it will stabilize on its own, then RV the IQD and other planned currencies in several supposed baskets?” It’s also going to be interesting to watch oil prices in the next few days as a possible indicator of this process. The implications are far reaching. I’m anxious to hear your opinions about the timing and placement of currency RVs relative to the global news the powers release!
Joey reads a similar report with a positive view: US Credit Downgrade
The World’s Financial Condition, Will The World Be Calm
Joey paraphrases: It discusses the US downgrade and Mideast markets, though some say the rate change will not be as bad as initially thought. It mentions that Moody’s and Fitch rating agencies have remained AAA on their US Rating, and reminds that there is not anywhere on the planet that is any better than the US and the world will still come to the US and the USD as a safe and secure place to invest.
They say the world’s Central Banks will be the last line of defense in a global crisis situation. Also, The United Arab Emirates said today that they will keep their currency pegged to the USD even after S&P downgraded their rating, and that the US Economy will recover. Oman’s treasury said they will not be changing anything relative to the US Economy. All Gulf States except Kuwait tie their fortunes to the greenback and stake their fortunes closely to the strength of the US and it’s currency. Gulf States are also major investors in US Treasuries, saying “ we are tied to the dollar, and we will keep it.” “We don’t see the dollar collapse because the problem is not just in the US economy”, Said Mr.????? , Deputy Executive Director of the UAE Central Bank Treasury Department.
( For further clarity and emphatic intonation listen to this audio recording– 760-569-7699 pin 194924# )
Joey: It’s a rough year for everybody, so will it force people’s hands, you never know? I know the 2012 budget is being decided now by GOI and they are basing their oil price based on the fact that they will pump 2.2 million barrels per day and they believe the oil price will be $86 dpb for that year’s budget. So I don’t know if they know something nobody else does or what?
Patriot: The point about $86 dpb will be a valid price if the global economy turns around and industry starts demanding again. Oil is oil. These prices are falling not because it’s less valuable, but because the demand is falling. Transportation of goods for fuel demand is down with this economic downturn, because all industries are down, not producing and consuming as much need for energy. This is as much from the global slowdown, including China and India, which are our rivals currently for oil, and will grow in competition. Maybe they know something we don’t with $86 dpb, but I don’t know if we ever see $50 dpb of oil again. Shabibi and others must know something.
Scott: The G20 and G7 this morning saying what are we doing early this morning; yet, on the other hand, we have the second wealthiest man on the planet, Warren Buffet says S&P is all wet, he would give the USA a Quadruple rating, …..and the USD index is up from $73 to $75 so the signals are mixed signals and a very confusing market right now.
Tim reads a related article contradicting the negative:
Tim states: Buffet Says USA Still AAA Rated to Him
Multibillionaire Warren Buffett Denounced Standard & Poor’s Downgrading Of The U.S. Credit Rating.
“I don’t get it. It doesn’t make sense. In Omaha, the U.S. is still triple-A rated,” Buffett told Fox Business Network. “And if there were a quadruple-A, I’d give it to the U.S.”
The United States doesn’t deserve the downgrade, said the 80-year-old Buffett, chairman and chief executive officer of Omaha, Neb.-based Berkshire Hathaway Inc. (BRK/A).
And Buffett doesn’t expect the downgrade to make any difference globally.
Buffett also told Bloomberg News that Standard & Poor’s erred when it lowered the U.S. credit rating and reiterated his view that the economy will avoid its second recession in three years.
The downgrade followed the biggest weekly selloff in U.S. stocks in 32 months, with the S&P 500 slumping 7.2 percent to its lowest level since November.
“Financial markets create their own dynamics, but I don’t think we’re facing a double dip recession,” Buffett told Bloomberg. “Clearly what stock markets do have is an effect on confidence, and this selloff can create a lack of confidence.”
© Moneynews. All rights reserved.
Patriot: We know markets are emotionally driven. It’s ironic that S&P could be so arrogant to give the US a credit downgrade when they are the same S&P rating agency that said the US Financial Derivatives were safe and OK, which was the snowball that caused the avalanche to the 2008 financial crisis meltdown.
Scott: Email, asking questions about the Arabic language use of ‘this month’ and ‘next month’ which gets mixed use
Deb: Ration Card article….items of the ration card will be implemented NEXT MONTH…
Joey: Thinks it means they will begin now and to be completed ‘By Next Month’.
Diana reads article: G20 Holds Emergency Conference Call
Khaleej Times Online > BUSINESS (AFP)
7 August 2011, 6:17 PM
The Group of 20 major economies held an emergency conference call Sunday to discuss possible coordinated action to minimize market volatility, a South Korean official said.
The call came after Standard & Poor’s cut the US credit rating for the first time in history Friday, saying America’s politicians had been increasingly unable to get to grips with its massive fiscal deficit and debt load.
South Korean officials said G20 deputy finance ministers participated in the teleconference early Sunday.
“Serious discussions” are continuing as the G20 seeks to contain market disruption from Standard & Poor’s move and Europe’s debt woes, Vice Finance Minister Yim Jong-Yong said.
But he said the current issues would not lead to another global economic crisis, after talks with policymakers from the Bank of Korea and financial regulatory bodies.
G20 states agreed to consider issuing a joint pledge to make efforts to soothe the global financial market, an unnamed finance ministry official told Yonhap news agency.
“Although it’s not confirmed, (the countries) are reviewing issuing a joint statement before Asian financial markets open,” the official was quoted as saying.
At the conference, the United States highlighted the fact that two other key credit rating agencies vowed to keep their US ratings unchanged, he said.
Earlier deputy finance minister Choi Jong-Ku said South Korea’s confidence in US Treasuries had not changed despite S&P’s move.
“There will be no change in South Korea’s foreign exchange reserves policy,” he told Dow Jones Newswires.
South Korea keeps only a small portion of its reserves in US Treasuries. US Treasury department data showed South Korea had around $29.2 million in US debt holdings at the end of February.
At the end of July South Korea had a total of $311.03 billion in foreign reserves, the seventh largest in the world.
Seoul officials have acknowledged that South Korea’s economy and financial markets will feel short-term effects stemming from heightened external uncertainties.
Vic: In my opinion, and my opinion only, this shows the flex and power of the US. I don’t care about the rating no matter what rate it is, even if a negative A; I look at the broad picture. The first country to RV this year was Venezuela and they actually
de-valued their currency. Venezuela, who deals trade mostly with China and funded much of the widening of the Panama Canal so the big oil tankers can cut through, to get much cheaper than OPEC oil to China. Then I step up and ask, who is President of OPEC now? Iran! And I ask who have we heard that intends to RV or LOP zeros from their currency about four different times this year? Iran! And who won’t play fair with World Laws or allow the UN or USA inspectors to come in and investigate their nuclear arsenal that they buy with USD? Iran! They say they don’t need to do business with us and that it’s none of our business what Iran decides to do with our technology. Oh, OK, It’s none of our business, huh? We ask, “what are you selling your OPEC oil for, petrodollars?
Why is it that seven months ago I tried to buy Iranian Rial from Tehran, and there was no Iraqi Dinars in Tehran? What was the reason that there are no IQD in Iran?
Remember me distinctively telling you Patriot, when I told you about my best friend, who is involved in a different business, whose father was involved with Adman Kashougi years ago, and who said we should be thrilled that the US Treasury is in Iraq, because what have we heard lately? The IQD dinar in Iraq are so worn out that there are possibilities for counterfeiting to occur. Because you cannot tell a counterfeit paper from such worn out, torn and faded real currency. So, what does this tell me? What should a little guy like me who was born in Iran but grew up in America, be thinking? It tells me that at $86 dpb of oil, Iraq can make enough to meet their budget without a deficit. And at that price, Iran and Venezuela cannot short the supply of oil by refusing to produce enough, which drives the price up to over $100 dpb as they gloat that the world and the Americans will still buy at that high a price. Well ya’ know what, ladies and gentlemen, this is the USA, at it’s best, flexing it’s muscle, telling Iran, not Iraq, not Saudi Arabia, because it takes .27 cents to make one Saudi Arabian Rial; who also is a next door neighbor of Iraq and Kuwait, who are spending so much money together agreeing on the Ports Projects. How much money is being put out, now all the sudden Saudi is ready to RV also, saying “it’s high time for us to RV our money too”. Why are we all of the sudden seeing so many of the Middle Eastern countries deciding to back the USD? Why all the sudden do we have several countries backing the USD. The only country that’s always been a trouble maker in the region is Iran. We’re flexing Iran right out of the marketplace. And all the need to cover the shortcomings right now has been given to Iraq. Libya’s market has been shut off of Libyan oil production and is now Iraq’s market to fill. What is this telling us? This is telling us just how smart the United States is. I love USA for being so smart to out maneuver their enemies, and we’re taking profit, and we are the strongest most powerful nation on earth, we are putting Iran in complete check , It’s high time baby! Is there anybody that doesn’t wan to join us? No problem, man, we’ll just put you on an island and see how long you can last. Go Venezuela! Go Iran! Go North Korea! Go on this little island and see how well you can produce. All you can produce, you can go ahead and use for yourself, because you know what, we’re not takers anymore! See what happens to your economy. So folks this is not gloom and doom. We’re taking profits, which is normal, it’s happened many times before. And this is the USA showing it is the most powerful country in the world, and the USD is truly the most powerful currency in the world, the World’s Currency Reserve. I’m an optimist and I love the US for putting Iran in Check Mate. And like I told Mr. Kazim Suleymania last week to pack his tent and go back to Tehran, high time baby, the US is not playing around. They won’t let us in as UN requires to look at their Nuclear Project, and they’re using USD to build that illegal activity. 99% of the USD that Iran gets for oil in OPEC, goes to invest in their nuclear reaction and centrifuges. If they don’t want to abide by the rules, then they cannot have nuclear power; now we have them completely surrounded, now the squeeze is on. Believe me, they know the island they are living on. Like we say, let the information play out, this is the greatest American show of power going on right now. Nobody is leaving the USD, I don’t care how low it goes, it don’t work that way; the UAE says they are not leaving the USD, Saudi, and S Korea, and many more are staying with the USD. And this is Vic’s two fils for the day, thanks
Scott: Gold reached a new all time high ,up $40 today , to a new all time high 1689.70. Silver at $40.09
Patriot: Usually when Gold goes up, the dollar is falling, but both went up today, and oil is going down, hmmm , very interesting. This is contrary to what most experts would have told you
Scott: Actually the USD just fell a bout a .30 cents, but has gone up for the day by about a buck and a half.
Patriot: About two weeks ago, the dollar fell and the yen did too, but the Swiss Franc dropped the most against the KWD, as I’ve heard people talking about going to Swiss Franc. It must just be the leveling power of this new basket, with some gold included to level out the prices.
Joey: states that Iraq is one of the best places for businesses to invest and thrive amid this turmoil. Despite the continuing dangers, the rebuilding of the country could prove to be one of the biggest global investment opportunities to arise in the last half-century.
Joey reads: Iraq reopens for business
By Josie Ensor
9:00PM BST 06 Aug 2011
On July 15, Harlow International, a British construction company, held a ribbon-cutting ceremony for the re-opening of the famous Al-Rasheed Hotel in Baghdad’s Green Zone.
The hotel, renovated with the help of a $65m budget, was made famous in the 1991 Gulf War as a base for television reporters and later became a favoured home of businessmen and diplomats alike.
But at the same time, just a matter of miles away, two car bombs killed seven people and an American soldier was shot dead by gunmen who had opened fire at an army headquarters.
Iraq “remains an extraordinarily dangerous place to work”, Stuart Bowen, the US Special Inspector General for Iraq Reconstruction, admitted in a recent report, adding that the country is less safe than it was a year ago due to unabated corruption and violence.
Unsurprisingly, when investors think of Iraq, they most probably think of risk. After two decades of conflict, to outsiders, the Middle Eastern country is perhaps not the most hospitable place to do business. But in reality, the rebuilding of Iraq – and the by-products that will spring from that process – could yet prove to be one of the biggest global investment opportunities to arise in the last half-century.
As it stands, Iraq rates as one of the worst places in the world to do business, languishing at 166th out of 183 countries, according to a World Bank report.
For starting a business it ranks even lower, at 174th. That hasn’t stopped a flurry of British businesses doing just that, however. In late June, retailer Mothercare announced its decision to launch its first shop in the country in Arbil, the capital of semi-autonomous Kurdistan in the north. And just two weeks ago, UK-based Afren made a £360m investment in proven oil fields – its first in the country.
Robin Ord-Smith, UK Trade and Investment’s (UKTI) Iraq director, says he is contacted by 10 to 15 British companies every week asking for advice on how to make the move, while for Kurdistan – which enjoys greater stability – the number of enquiries can be double that.
Could it be that Iraq is firmly open for business again? For some of the more hardy investors in the oil and energy sector, the truth is that it was never really closed.
UK oil major BP started drilling in Iraq in 1927 while the country was under British mandate, and only stopped when the domestic government’s 1972 nationalisation of oil pushed out Western oil companies. Iraqi unions vowed at the time to never again allow foreign companies take control of their most important economic resource.
But just four years after the 2003 invasion, the reformed Iraqi government reopened the oil sector to foreign investors, and in 2008 Baghdad signed its first petroleum deal with China’s National Petroleum Corporation and opened the way for British groups.
Since coalition forces announced a winding down of operations in Iraq, many more UK oil firms have widened competition. Last month, oil explorer Afren announced it was making a “strategic entry” into Kurdistan’s Barda Rash field, marking the group’s first major acquisition outside its specialist area of Nigeria.
Galib Virani, associate director, said Afren chose to strike while the iron is hot: “The deal would not be here for too much longer... It’s a relationship deal, we’ve got a good relationship with the government and an early-mover advantage.”
Joining the oil rush, Dublin-headquartered oil and gas firm Petroceltic also stepped investment up a gear last month after buying a 20pc share in two giant exploration blocks in Iraq.
As the country with the third-largest oil reserves in the world, Iraq’s economy is dominated by the oil industry, which traditionally provides more than 90pc of foreign exchange earnings.
The foreign investment law passed shortly after the 2003 invasion now permits 100pc foreign ownership of businesses in all sectors except oil and mineral extraction. Foreign-owned retailing businesses must provide a $100,000 (£61,000) bond before conducting business in Iraq but, largely, the law tries to establish an equality between foreigners and Iraqis on all terms of commercial interaction.
As a result of the legislative reforms, foreign investment has grown from $3.87bn to $42.67bn in the past eight years. And with the government’s coffers swelling, Iraq’s planning minister, Ali Al-Shukri, is on record as saying he is looking to raise its 2012 investment budget to as much as $51bn.
Look outside the oil sector, however, and high operational risks continue to discourage all but the most daring investors. Those in pharmaceuticals who chose to live with the risks have been rewarded with a substantially higher health-care budget. Iraq spent $3.8bn on rebuilding its health-care sector last year, and the ministry of health is said to enjoy the third-largest government budget allocation.
GlaxoSmithKline (GSK) has been the leading British pharmaceutical supplier in Iraq for more than 20 years, and until now was almost exclusively supplying medicines and vaccines to the Iraqi ministry of health. As The Sunday Telegraph reports today , GSK has just signed one of its first deals with a private sector company to manufacture products in Iraq and plans to set up its first local business in the country since the invasion by year-end.
Mohammed Zafrullah, vice- president of GSK in the Gulf Near East, said: “Historically, 100pc of [Iraq’s health-care] products were sourced through the ministry of health, but since the fall of Saddam Hussein the department has taken steps to open up the private sector, which is great for companies like us who have the expertise.”
He said progress was slowed in the last four years by the security situation, but in the past 18 months he has seen a causal link between increasing stability and industry competition.
London-based pharmaceutical company Hikma, which saw sales in Iraq grow to $16m last year, agrees that the Iraqi health market is recovering, and it is keen to play a leading role in that recovery.
“Iraq has clearly been operating in a period of political turmoil for some time,” a spokesman said. “Nevertheless, it offers excellent growth opportunities. At the moment, the market is relatively unregulated, which has allowed for a high level of unauthorised products. We see this as an excellent opportunity. As stricter regulations come into force, we expect to benefit from this.”
GSK and Hikma are not the only ones to capitalise on the gap in the market. At a time when Mothercare is closing 110 of its shops in the UK, its decision to open one in Arbil may seem to come at an odd time. But the baby goods retailer, which has teamed up with long-time Middle East franchise partner Alshaya, is no stranger to the region – its first branch opened in Kuwait in 1984.
A Mothercare spokesman said it would not enter into a country unless there was a good opportunity for growth. “We are going into the northern region in Kurdistan because it is the most peaceful part of the country and there’s a real need for retailers like ours, but there are no plans to go into Baghdad or any more challenging environments,” he said.
“We choose to move to countries like Iraq, but only with franchise partners as they have the contacts and the local knowledge and know how the system works. We capitalise on their expertise and so cut down on some of the bureaucracy.”
John Drake, risk consultant with UK-based security firm AKE Intelligence, says it is no surprise Mothercare has moved to Kurdistan.
“I would be shocked if they had chosen somewhere like Baghdad, but Arbil is a logical place to branch out,” he said.
“Iraq’s a very import-reliant country now – a lot of their factories, which were once heavily subsidised, are now redundant. So there is definitely potential for the retail sector to move in, but it’s a risk and logistically difficult. With small outlets they don’t have high turnover and so may not be worth the risk, whereas larger sectors, like the oil and gas sector, they have more buying power for the necessary security measures. For many retailers, doing business in Iraq is still a long way away. For firms that brave it, they will own a big slice of the industry there.”
But behind the success story lies a counter-narrative, one that reminds us the war has not quite yet been won. The security situation can at times be as fragile as the country’s economy. Figures compiled by AKE Intelligence show a spike in the number of attacks over the past three months.
Over that period, it was not unusual for some of Iraq’s major cities to see up to four suicide attacks in a single day, by insurgents unhappy at the perceived slow rate of the withdrawal of troops. Since the start of the US-led invasion, a mix of militias, foreign fighters and all-Iraqi groups have launched attacks on foreign troops and the post-Saddam government, fighting for self-determination and sovereignty in Iraq.
But the recent return of a more traditional civil airline industry has also gone some way to help improve consumer confidence. In 2009, only six foreign commercial airlines operated in Iraq, whereas today that figure is around 28.
AKE’s Drake, who regularly visits Baghdad for work, said that for the first time in years businesses are holding meetings not just in the international Green Zone, but in the traditionally less safe Red Zone as well.
Part of the revival in UK interest in the region may be the result of a visit in April 2009, when UKTI organised the first official British trade mission to Baghdad and Basra for more than 20 years, with representatives from 23 major British companies. Despite this apparent renaissance however, British companies have been seen to be slow to get in on the investment opportunities in Iraq, even lagging behind countries that opposed the war, such as France.
Last year, French companies accounted for 9.9pc of the foreign commercial activity in Iraq, compared with 2.8pc for British companies, according to Dunia Frontier Consultants, which specialises in emerging markets.
Chris Frost, founder board member of the Iraq Britain Business Council and a partner at PricewaterhouseCoopers, says he senses a frustration among Iraqis that the UK hasn’t woken up to the wealth of opportunities. “When I speak to people in Iraq they are very keen to be able to buy the kind of products they are buying directly from British companies,” he said.
“At the moment, there are a lot of goods they buy that are made in Britain that they are buying through intermediaries in the Middle East who are essentially acting as agents. They would far rather that British companies came and sold the products directly, particularly in relation to luxury goods.”
The Foreign Office is trying hard to encourage British businesses to make the leap. The British Ambassador to Iraq, Michael Aron, says the investment environment remains challenging, but supporting British businesses in Iraq is a priority for this Government.
“Opportunities to invest in Iraq are growing fast and British companies are becoming increasingly prominent here. We will continue to do what we can to help them succeed,” he said.
Risk analyst Drake says British firms could well become the biggest benefactor in the country’s boom time. “Iraqis do a lot of business face-to-face, so if you’re going to be successful there they have got to know who they are dealing with. On that basis I think British companies have the potential to do much better than the Chinese ones for example.
“They would rather do business with a British company because of the historical links between the two. They know we made a mistake invading, but they also already know our weaknesses and failings, unlike China, which is the frightening unknown.”
Ord-Smith of UKTI agrees: “It is a very exciting time to be in this job in this market. Iraqis tell us they have great respect for British companies, the quality of their goods and services, and would like to see more enter the market. So would I.”
But Iraq is not a place where businesses can expect to reap instant rewards. Experts question how long it might take for the country to return to pre-invasion growth levels – some suggest it could take as long as a generation – but Ord-Smith believes it’s a matter of when, not if, the Iraqi market takes off.
And with the level of growth in Iraq one of the highest in the world – the International Monetary Fund estimates the country will grow at a rate of 12.5pc this year – he may well be right. Largely driven by high energy prices, nominal gross domestic product is expected by the IMF to reach $108bn, a new record, with inflation remaining in relative check at a steady 5pc.
All spoken to agree that the most important thing a business can do at this stage in Iraq is to lay down the foundations sooner rather than later, as it will be those “early adopters” who establish a reputation in the country during the tough times that will be seen as friends of Iraq when the going gets good, leading to rich dividends further down the line.
Joey: What I wanted to read to you about this was, that Iraq is a very reliant country now, and people of Iraq are very keen to buy British products…and here is the best sentence…..the IMF estimates the country’s economy will grow 12.5% GDP this year, to reach 108Billion… You need to be face to face with Iraq ASAP, the dividends will payoff very soon, for those that didn’t wait.
Pam: You always bring the best articles.
Joey: They’re bringing it out. I imagine this time in Iraq is like the US back in the 1800’s when Europe must have been reading about the new world in the USA, the OK land rush with the ‘sooners’, and with the 1849 gold rush breaking news and the opening of the west. They had to step up to the plate, to swing for a home run. You have to break some eggs to make an omelet. Now is the time, before the chance is gobbled up.
Pam: Today’s Iraq Business News article, they are suspending some of the contracts with companies that are not submitting paperwork from 2010…..they are trying to be very legitimate and proper. They are holding everyone accountable, even foreign firms and nations are being suspended from a license to do business, just like the corrupt thieves, before the wealth of an RV arrives. The list of the companies is here.
Scott: People question if IQD is a good investment? They’re talking 12.5% growth and we haven’t even had a budget in over 800 days. And we hope for 2% growth in USA. Comparing Iraq to USA, people would be crazy to not invest in Iraq, comparatively. They talk jokingly of trading Geithner for Shabibi. Geithner announced that as soon as the debt ceiling issue was decided, he would retire, and it sounds like since the markets started falling, somebody convinced him to stay.
Deb: talked about an article that Geithner may be trying to slip away into retirement.
August 7, 2011
Geithner Says He Will Stay At The US Treasury
Washington, Timothy Geithner has told President Barack Obama that he will remain on the job as Treasury secretary, ending speculation he would leave the administration.
The Treasury Department released a statement Sunday saying Geithner had informed the president of his decision to remain in the administration.
Deb implies: This article corresponds or relates to a video of Geithner in an unflattering intoxicated state that we will exclude here, but for those wish to search, Google!
Patriot: Wants to clear up that last Thursday night somebody posted that Patriot called the RV. He asks if anyone heard him say anything like that on last Thursday?
Joey: Remembers him saying that they would be talking about this in the Mosque
Tim: Got a call about 15 minutes after Joey read the late breaking news
Patriot: We have no control over what people do, and we have to talk about our armor relative to what people might be saying about or calls, with their insanity or poor hearing or whatever. We do believe the RV is eminent, but nobody knows the date or rate, and until it happens, there is none. IMO, Shabibi is not going to fill in the ‘X’ value until he knows the ‘Y’ value which is the entire global situation, around the USD. It’s a logical, reasonable conclusion that Shabibi is that smart, and will not let the wheels fly off of his buggy after working so hard on this over 5 years ago, and nobody could have predicted who would be in political power positions, where the dollar value and US debt would be, and so if it means he should wait a few more days to see what shakes out and where a current bottom might be as it starts to rebound, that would par for his course of making very deliberately planned and strategically sound moves…to protect his country and our investment in his country’s currency.
Patriot asks for additional comments before concluding the news portion of the broadcast?
All appear to agree with those final statements.
Break before Q & A with Louis Armstrong’s: What A Wonderful World. Ooooooh Yea!
Patriot: Talks about people who are relatively new names posting some wildly fluctuating supposed information. Apparently, the dinar community is again, tied up in knots and back on the roller coaster. He just wants to help people so tonight’s extra commentary is to discuss how to get off the wild ride of insanity and stress, and to learn how to quit petting the snake.
Scott: My mom told me when I started dating that, “No Means No” …laughingly says I learned the same with the Dinar world. Tell the ‘intel GuGu’s’ NO MORE, and mean it
Diana: Is trying to inquire, and so it helps to know we are in a very good investment, and that helps make me secure. We will get notified.
Joey: An old saying, “Fool me once, shame on you; Fool me twice, shame on me”. I just cannot understand how people can be wrong 149 times, and yet they will go right back and listen some more for the 150th time the very next day. Joey just refused to go back. Shame on me if I waste my time
Patriot: …yes, making sure your plan is able to be executed, is more important than listening to rumors and false intel. Patriot had a banker friend who shared the IQD investment, and waited 3 weeks, and finally bought because of the trusted value of the banker friend. Then started listening to some calls, and started formulating plans, and stopped riding the roller coaster of contradicted information and too many flip flops of people he could no longer justify following. I decided I could not control rate or date, but could control the energy of being ready to activate a smart plan, based on rules that arise soon after the new RV rate goes live. Don’t try to guess, or assume. Be ready with contingency plans to adapt according to the rules that clarify and the options we have available to us. Have 3-4 different hypothetical scenarios to follow depending on the rules. What would you have done if you never heard of the word, ‘Dinar’? And for those of us who have a group of 20 or 50 people, you must have a lot of calls and emails daily, so whether you are a Gugu or an oracle, you may be in a tough position, because in your heart of hearts you know you don’t know, and all you can do is to pass on somebody else’s false information…. Talking about reserves, mortgage money being used for wild gambles on the next week’s expected RV.
Scott: Questions in the mailbag…paraphrases several, finding themselves in the rock and hard place, the place I go to verify my facts at the call squad, but we can’t ask questions from other Gugu’s feeding them some flavor of Kook Aid.
Patriot: Demand from whatever that source is that they give you an explanation, or a source to verify. This is why we arrived at this point, that we don’t want to be drawn into the vortex of rumor mill swirling….and get into The Iraq Project verified by news releases. Become the rock in your community, get out of the intel loop being flushed through our community and be careful what you say. This is how we handle it. Use facts that still need to be filtered and discerned and deciphered from smoke and mirrors.
Scott: Another question: Where is the nearest Dinarian Meeting, like AA?
Patriot: The nearest Dinarian meeting is here at the Call Squad Sunday thru Thursday. Patriot goes on and tells stories of people who think they have connections of connections of connections and the telephone games gets played, in so many ways.
Diana: When I started questioning the intel providers, about where we can find the same evidence, they get insulted and downright nasty, that’s a cue to realize that there are problems if one cannot ask questions. See the Red Flag! Don’t lead your community into the swamp.
Patriot: Like earlier tonight, Scott corrected my misquote of the 15% bank account average in Iraq, forget my fragile ego, I want people to have the most accurate info. We welcome correction and questions.
Scott: From my own perspective, I was so thankful for the hypers and pumpers in the Dinar Community, when I bought my first 100,000 IQD, I may not have bought more, which I’m glad that I did. Also, Post RV, when I’m cashing in more than I ever would have bought, had they not been overly excited, I’m going to be thankful for that they were excited, that got me excited too. Yea, I had discipline to refrain from using my mortgage money, but as an eternal optimist, seeking the good in situations, my investment holdings are much bigger because of the pumpers, and I am thankful.
Deb: Suggests those getting frustrated to step away, clear your head, relax, and you will still hear about the RV when it occurs if you’re not looking every minute.
The call continues, the transcript stops