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Iraqi Dinar Buzz Updates

drox (Plan B): DV 6/24/11 12:17PM
2011-07-05 12:51:45

I wrote this 2 days ago when the article below 1st came out. Before everything went to Heck and a Hand Grenade. It may no longer be valid but a couple of my friends told me to post it anyway. Its long but I think worth the read. Take care…drox.


Have any of you considered this article below may mean something entirely different? I have said to watch for the articles containing 100,000 Dinar notes amongst the numerous 3 zero ones, for nearly a year. You see, Saleh likes to mix in the 3 zero articles in bunches and sends us all in a tizzy whenever he does, right? Saleh is the front man for the CBI. His job is to orchestrate the greatest marketing medium known to mankind on behalf of the CBI. No, no…not Multiple Level Marketing you Rudy fans. GOSSIP! Nothing travels at such velocity as gossip. That’s why his articles always start off with “the appearance of…”. He makes each article and event!

You see, I believe they methodically use the 3 zero lop articles to set up the GOI and particularly Maliki into believing that a redenomination is what they (the CBI) want. Propositionally, I think they want something else. Plan B. By law, the CBI must present their proposal to the Council of Ministers and Parliament even though they are an independent and transparent body. It is my belief that the (CBI) wants to act disappointed that the GOI will refuse a redenomination and will choose a pre-conceived Plan B instead. AKA…the 2nd option. Could it be what Shabs wanted all along? A mis-direction? You see… they know Maliki is a greedy, conniving, control hungry, manipulating scoundrel that wants to keep his people poor, in fear, and needy so that he can be the dictator he dreams of being. The dictator handbook for dishonorable and wayward souls 1st chapter states: People follow power when they are most desperate.

Shabs knows that Maliki wanted to take the CBI foreign currency reserves to pay for the budget deficits and some other costs. Maliki announced this publicly and Shabs said absolutely not to the Parliament and really to the world. He said the CBI is a transparent and independent body from the GOI. He said that if you need the money so bad then the GOI could effectively borrow from the private reserve accounts at the private banks. But Maliki wanted no part of that. He wanted to take money not borrow money. He wanted to put the currency even further behind the 8ball. Why would anyone want to do that if they intended to RV a currency? That would take away the vital support mechanism that props the currency up in the first place. The answer is Maliki has ZERO intentions of bringing wealth to his countrymen. Why else has he kept them in the dark (literally)? This is important. I have noticed numerous things Shabs does to get what he wants fully knowing how the BS politics will play themselves out. In some ways, Shabs runs the country through these end-around decisions. Maliki ends up being the dog on the leash. He thinks he has all the power out front but really Shabs is tugging on the leash showing him where to go.

Part of my theory is that the best thing Iraq could do would be to NOT lop/RD even though that would probably make the most sense on the surface to the CBI. It would be the easiest fix to get rid of the ridiculous money supply and would make the currency credible and would ease the use of cash transactions. Problem is… I believe it limits their future currency exchange growth potential. Here’s why: If it lops, it might someday grow to $3. Big whoop in the long haul, a 3times increase. Certainly helpful to Iraqi’s and we could make a nice little 300% profit. But then what? As Iraq develops into the major economy of the Middle East and “The Hub”, does the future exchange rate keep growing to $10, $20, etc over the years? Not likely… IMO.

So… that leaves them with the problem right now of way too much money supply and a minuscule exchange rate that lacks POP. 1170iqd to $1 doesn’t exactly scream out “Look at us World we are players now” does it? So…let’s find another way. If you haven’t guessed, I do not believe that the “Ghost fils” exist at all. Ghost fils are the lower denominations rumored in existence. I also think that the notion of removing 3 zeros from the notes is a kind of a silly notion without a re-denomination attached to it. That is something gurus manifested to cover past erroneous predictions and to make sense of the barrage of 3 zero re-denomination articles over the years. It got carried forward to present day and has been repeated sooo much and sooo often that it is believed as truth. (Notice my so’s had 3 zeros?) If you believe it… frankly I don’t blame you. It is the only way to make sense of the crazy RV numbers people have led you to believe. I mean no disrespect to you by saying that, you may be right and we certainly all hope you are! I simply ask you to remove yourself from that mindset for a minute and consider a new possibility or paradigm.

I believe this article below is saying they are considering the 100,000 notes. They are offering up an “off the cuff” plan B scenario for Maliki and the GOI so they have 2 options to present in front of them. Either Re-denomination or maintain the existing currency but add a 100,000 note to it to assist in day to day cash transactions. The GOI is in a budget cash crunch. Creating a whole new currency would be very expensive and confusing when the people are already poor and confused. They would have to develop a whole new currency with the Kurdish language on it as the constitution mandates. If they introduce the 100,000 notes, that will effectively tell us that they will not LOP and will kick that can down the road. That is what we all want right? No lop and the ability for the currency to go up. This will buy time for Maliki to eventually get booted out because of his obstruction and so that the GOI can finally kick start this economy and get some things done. Shabs has done his part. He has the banking industry improving daily. He has kept inflation down and is getting the banks to lend money. He is working on the money supply problem by increasing private bank reserves amongst other things. He has built up the CBI reserves magically.

So…Plan B is the introduction of the 100,000 iqd notes. It would cancel or postpone a redenomination. It would ease cash transactions in the marketplace by helping the Iraqi carry less cash. It would be cheaper to introduce 1 denomination then all of them. It will buy the CBI time to find a way to decrease the money supply substantially. It will buy the GOI time to pass laws, improve security and infrastructure, and most importantly promote employment through a massive job creation focus. It will buy time to address corruption. All of these things are necessary for a more stable environment to support a significant increase to the exchange rate. All of the citizens must be able to participate in a RV and not just the top 1/3rd ot the population. Otherwise it will fail.

Thus, I am not saying RV crazy anytime soon. I am laying out a road map that in time will allow this investment to move up considerably. The situation in Iraq must be able to support an RV. Important steps need to fall into place. My hope is they intend to get near the Saudi’s. I believe that the HCL has everything to do with the release of a true RV. It is vital. The political sectarian divide isn’t working. If you create a dividend system in Iraq for lets say 25% of the oil revenue. It will be distributed to regional and local governments and onto each citizen. This provides power to the people and a sense of ownership. It takes the enticement of power right out of the politician’s hands. This is the only way Iraq will have a government that works democratically in my opinion. A peaceful Iraq is an economic force to be reckoned with. When the people have a share in the wealth then those people will insure its success and growth. They will shun the detractor/corrupters because they have a vested share now. This will provide a huge credibility to Iraq internationally. The exchange rate will inevitably go up as foreign investment and foreign currencies pile into the country. In time I think the GCC will beg for Iraq to be a member and could be the nugget Shabs is looking at. That would save the expense of a redenomination wouldn’t it? In the meantime, Iraq and Saudi Arabia will become friendly competitors trying to best one another. Your investment in Dinar could turn into a true lucrative opportunity. Below is my take on the CBI restructuring of currency article. I edited it with strike throughs and my interpretation of my bridge words in parenthesis in red.

Feel free to respectfully crush my theory now! In the meantime I will work on another post as to the why and how it needs to be this way. Be well. (drox)

The Central Bank of Iraq, Wednesday, that he decided to restructure the local currency in order to develop(assist) the payment system in the country.

The appearance of Mohammed Saleh told the Kurdish news agency (Rn) that “the Central Bank of Iraq has decided to start implementing a strategic and long-term specializes (plan) in the restructuring of the local currency for thedevelopment (assistance) of the payments system in Iraq.”

He added that “the central bank will raise the level of the local currency and the development of new currencies up approach to (to compete with) U.S. $ 100 ( Remember: $100 = 100,000iqd notes roughly), which would address the economic gap in the system of financial payments in the country.”

He continued that “the project to (of) restructuring of the local currency, which started gradually need(s) to (the) support (of) the government and parliament (so)that it will hold purchasing power compared Palmdjulat (to other) economy(ies).”

He expressed (to) the IMF in August / August, his support of the Iraqi economy in the event of having a number of economic measures including the privatization of banks and raise three zeroes from the currency local and honoring debt and compensation is the responsibility of Iraq.

The Iraqi government has denied conducting any change (to) in the local currency this year to reduce inflation.

The local currency of Iraq has passed in the history of change(d)s to several (times), most recently in 2004 when the former Governing Council replace currency of the previous symbol of the former regime.

The main tasks of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies, and management of reserves of foreign currency, and the issuance of currency management, as well as the organization of the banking sector.