STATUS OF THE RV
It is May already and so where is the RV? Yes, all you TNT jerks and other idiot intel gurus. Where is the RV that your “secret contacts” promised from your 4 letter agencies? Talk about filling your heads with garbage. Oh, what’s on the bank screens today… lol…. lol… ? Oh…. this weekend? Oh…. by the end of January, February, March, April and now May? Oh… but you said it had to happen by the end of each of these months?
When are you idiots going to wise up and realize they are playing you all for fools. Yes, FOOLS! Enough said I wasted enough key strokes on my PC today to prove my point.
Please, please stop this madness of following the Iraqi budget schedule approval. Yes, just more of the same old idiot guru talk. You already chased this tail each year for the last 10 years. When are you going to realize that it is not the budget that is important. When will you stop chasing these ridiculous events to bring you nowhere in a hurry? And now you are at it again? I have mentioned this more times than I want to count. Yes, it’s like a dog chasing its tail. But even if you catch it what pain it will bring……
Let’s concentrate on some real news…Okay?
Iraq has requested that a United Nations assistance mission (UNAMI) set up after the 2003 U.S.-led invasion of the country end its work by the end of 2025, saying it was no longer needed because Iraq had made significant progress towards stability. Could it be that the rich and powerful are going to let Iraq finally be a true sovereign country and not just on paper? Are they letting go of the apron strings. What ways will they find now to keep the goose laying those golden eggs. I wonder…. It is just yet another sign to us that the freedom for Iraq is finally coming to reality. Another stop in the journey down the choo choo tracks and the final stop we all await – the reinstatement.
Also in the new we hear from the economic expert, Safwan Qusay, revealed the leakage of travelers’ dollars to the parallel market.
Qusay said {to Al-Furat News}, and I quote – “The current policy of the Central Bank of Iraq is towards auditing the cash dollar, which was marred by many failures in the first periods, especially its leakage through travelers to the irregular market, and this issue needs a new and clear mechanism.”
But this currency auction mechanism is not going to be the CBI responsibility any longer, as the CBI already set future policy and it will be the responsibility of the private and state-owned banks to supply these dollars to travelers. Think about it. No depletion of the CBI reserves to pay for the economy. Oh… my gosh what will the merchants do….. lol…lol..lol..
Let’s take a step back. Imagine yourself, in your own country. Do you go to a special currency auction to obtain foreign currency if you want to travel? Of course not. Instead, you go the local bank and the bank supplies the foreign currency from its foreign reserves. How do the banks get these foreign reserves? They get them from the balance of trade as payments for goods and services from foreign countries that you export / import from/to your country. They don’t tap into the national foreign reserves. So, this all makes sense if Iraq is truly making sincere moves away from this sanction mode of doing business with the outside world.
Then in the same news period of news we also heard that the CBI is still releasing more dollars into the currency auctions that is needed to run the economy. Why? Is this yet another one of those leaks of the dollars they keep talking about? We already know about the leak to travelers and how these dollars just end up on the parallel market and sold to the black market for profit and not used as intended. So now a second leak is exposed. I find it very hard to believe this is still ongoing but there must be a reason they are still allowing it.
The article in todays news stressed and I quote – “that these amounts sold are above Iraq’s consumer needs or the cash supply is above the level of cash demand” But what this economist in the article does not recognize and should recognize is that to limit the dollars only drives up the rate more as the demand and supply relationship will cause it. The CBI is using the release of more dollars as just one of their tools to help keep the rate down and manage it from exploding. Some economists still believe the rate of the dollar could rise to over 2000 from the 1450, which by the way is at least a steady rate and that too is an accomplishment. But the 1450 is 1320 and so there is still work to be done.
We read in my last Newsletter dated May 9th that France is going to help Iraq restructure its banking system and may also connect the Iraqi banks with French banks to supply dollars. This come at the heels of the need for Iraqi banks to make other arrangements for obtaining the dollar as the currency auctions will be ending in Iraq soon and the CBI will not be supplying dollars anymore to the economy, as they have since the embargo and sanctions. It is all changing, and it must change to get out of this sanction mode and move to real international banking practices.
So, in today’s news we also read that Jordan is stepping up to provide some relief of dollars to Iraqi banks. This is all good news.
Also on Saturday, the technical advisor to the Prime Minister, Muhammad Al-Daraji, announced the signing of an agreement between Iraq and Italy to finance industrial projects worth $700 million, while he confirmed the signing of memorandums of understanding to equip Iraq with (6) Italian factories for the private sector.
Okay so after reading all this above about controlling the price of the dollar…bla,,,bla,,,bla. What is the real cause of the dinar official rate competing with the parallel market rate? Is it the sole peg of the dinar to the dollar. Get it? If it wasn’t tied so closely to it, the problems may not exist. The CBI will NEVER, EVER resolve this issue of the parallel market vs the Official CBI rate unless Iraq de-pegs from the sole peg to the dollar and re-pegs to the future “basket” of currencies, they have planned.
Essentially, Iraq needs to spread the risk of the dinar to other countries, but in return the dinar is also supporting other countries with its flow of oil reserves of “black gold”. By having a more diversified Iraqi economy it can aslo allow for the expansion of this risk away from just oil so in times of “bear market” oil prices everything just doesn’t collapse, like it did over Covid and ISIS war. Also, by bringing in the private sector, there are hopes of transferring almost 90% of Iraq citizen socialist like government paid salaries and benefits from the GOI into the private sector. Then the GOI can better support it’s Federal level duties and needs like paying for infrastructure, security (military) and rebuilding/modernizing the nation from the war. Essentially on paper Iraq can almost already do just what I described, however what is still hindering this progress is the international currency as it needs these investors in the dinar. It needs to let the global free currency market drive the spread to make money off the dinar as it takes its ups and downs like any other global currency as an investment rather than the black-market shark profiteers inside Iraq. Either way billions are to be made off the dinar. It can be either out of the black market or the free foreign currency exchange market. When will they release the dinar to the world?
Finally for today’s news I want to point out again the efforts being undertaken by the CBI and the GOI Finance Committee in the banking reform sector. Many of these RV intel gurus out there on their fancy conference calls talk over and over again about the currency reform when they really should be talking about banking reform. This is the last of the Pillars of Financial Reforms for Iraq to address in detail. Of course, all of these sectors must work together to cover the needed Financial reforms and you can’t separate them (stock market, banking and Insurance). Over this last decade we have read many article about reforming each of these sectors. They all must work interconnective. However, this “banking” sector is at the heart of it all now. This is now where we need to put our concentration and energy in our study.
Remember it is the necessary reforms in “White Paper” that is ultimately going to get us the reinstatement. Not some new rate in the budget, some lie about waiting for someone from China signing off on the RV or bank screens. How silly and stupid! Following the currency reform is like a dog chasing its tail. Why do I say this?
I have said this tail chasing analogy many times already because the currency reform is actually just a by-product of the Financial Reforms. So in today’s Articles Section of the Newsletter I highly recommend everyone take a look at the article titled – “THEY PREFER TO PUT THEIR MONEY IN THEIR HOMES.. WHEN WILL THE BANKING SECTOR GAIN THE TRUST OF IRAQIS?” Don’t be fooled by the title as the article is really all about the reforms taking place in the banking sector and how to draw in and manage all this massive amount of capital outside the banking system. It is very informative and you can see what is really holding up the reinstatement and what is driving it and then remember what I told you above and you will clearly see the necessity for Iraq to get it right, and they will.
One last note is that Iraq is always much farther ahead than it seems in these articles, as they can read a bit gloomy at times like there is a ton more of work to be done. But in reality, they are much, much closer to accomplishing most of the goals to the Pillars of Financial Reform as we realize as needed to progress forward into the international arena and play ball with the big guys…. lol… lol… lol… 😊
Folks, it is coming and like a heavy steam train driving down the iron tracks we can’t stop it now. It is just a matter of time. Yes, we all wanted it yesterday and it has been a very long journey for most of us investors. But think where you can invest in something for 1/6 $0.006 of a penny and literally make $2-3 dollars from it overnight. Now add a million at 1/ 6 of a penny per and it gets daunting in the amount. So, I suggest that we all learn about this investment and stop chasing our tails. Instead buckle down, relax and just let Iraq finish up its final work as needed in the banking sector and the rest will just follow.
We must now buckle down and pray and pray like never before for the success of Al-Sudani and his agreements with Washington are implemented. Pray for the U.S. in that there are strong enough representatives in Congress and the Senate who will stand up and continue to fight to uphold the US Constitution and keep fighting this Washington corruption. Pray that that God’s Hand will intervene and save our great country.
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