"STATUS OF RV" BY MNT GOAT, 2 JULY

STATUS OF THE RV

First, I need to apologize for the later newsletter. I was waiting for some news from the CBI in a call -back conference call to give to you in this newsletter. But it did not happen. My contact did not get back to me yet. So, I am now publishing the newsletter with the news I do have for you. 

Parliament is now on recess until after Eid holiday. When they come back the focus is said to be all about two issues. How to solve the budget deficit without borrowing money and to get the Oil and Gas law passed and implements.

Remember I have been saying all a long that these intel gurus who keep telling  you the Oil and Gas law is “all done” are not correct. Yes, under the constitution for Iraq this must be completed and has been at a stand still and disputed since 2005. Seems now there is a new ignited will to get it done. Is this energy coming because they know it is required and they will not get back their currency unless they do get a referendum (law) passed? Just asking….. 😊

Remember the federal general budget is based on methods of financing the budget in Iraqi dinars in exchange for oil revenues in foreign currency mostly, as oil revenues constitute reserves. The CBI does not want to just use the reserves to fund a deficit. They also think borrowing is a bad idea too. So what do they do? We already witnessed the fight to significantly reduce the budget deficit. Some of that fight was to lower Kurdistan’s share…not going to work…. So now there is a new plan to pay for the deficit after the budget is passed, they are not specifically telling us the entire plan, but we can see it does NOT include printing more money to cover it or borrowing from the IMF.  

I quote from today’s article- The economic expert, Ahmed Saddam, said today, Saturday, the dangers of currency printing to cover the budget deficit – “there is no economic feasibility in printing the currency to cover the budget expenses for the reason that the increase or printing of the currency will raise the level of the monetary mass and thus will cause significant inflation.

The Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed the strength of the quantitative and price monetary policy tools in managing public liquidity, while identifying factors for stabilizing the purchasing power of the Iraqi dinar. Yes, they still have a “black market” parallel rate of about 1450 running against the CBI “official” rate of 1320. I fully believe the CBI intends to move to very close to 1000 or lower as the official rate prior to the reinstatement. They will have to reduce it one more time in order to get to the 1:1 rate they are talking about. How can they do this without this next move then?

So, in my last couple newsletters I detailed to you how the in-country RV would work and how the Reinstatement out side the country would work. I showed you the calculations I use. Don’t let any of these intel gurus lie to you and tell you the dinar rv’d at a ridiculous high rate in Iraq. This is so impossible and I showed you why. Also do not let anyone tell you the RV occurred and we are “just waiting for it to come to the US”. This also is just so impossible and ridiculous you should shoot these gurus for even telling you this…lol..lol..lol.. 😊. Come’on where is the common sense even… Just shows you their overall ignorance of not just the happenings in Iraq but also how the international monetary system works. I don’t whether to laugh or cry over some of this bullshit.

So, this is our RV status for now. Today I will be calling my contact in Iraq CBI and getting the full scoop, I hope, on why we have not seen the reinstatement and project to delete the zeros as they told me it would occur this week sometime. I will be asking if it is the Oil and Gas law holding it up or what? But something is holding it up, obviously.