Kuwait /Iraq 2 of 4
So Kuwait not only revalued their currency by candlelight, they did it under a dark sky filled with toxic fumes and a devastated economy!
Speaking of Kuwait's economy, Kuwait's inflation rate in 1991 rose ironically to 6.49% as a direct consequence of the invasion. Iraq's inflation rate has fallen to 3.90% today, partially as a consequence of the currency rate reduction in 2020.
The point is Kuwait's inflation rate in 1991 when they revalued was almost twice of what Iraq's inflation rate is today!
Even a first-year economic major knows that increasing purchasing power and decreasing the money notes numerically, is a mechanism that stimulates and grows the economy, NOT to control hyperinflation, so what Iraq is working towards is not a Lop, their inflation rate is controlled!
The general point I'm making is that KUWAIT revalued their currency in very unstable conditions socially, politically, environmentally, and economically. They needed to rebuild their country and understood the basic premise "you reestablish your currency FIRST, then rebuild your country".
However, I must concede there may be two powerful factors in the Iraqi efforts to Reinstate and Revalue their currency that Kuwait did not face.
1 A "Complex Global Currency Reset Effort" riding its back.
2. It was not strapped with a somewhat timid ideology of the US Administration. In 1991 the "get the money boys were in power in the US"
it truly makes a difference as to how obstacles are overcome in financial and political matters! No pun intended, just years of neutral observations. Idealism (analysis = paralysis) and $$$ money $$$ are strange bedfellows!
But all of that is just fourplay, let's take a look under the hood, shall we? Side by Side, because numbers historically speak truth to power and intent!
Fact: In 1990, before the first Gulf War, both the Kuwaiti Dinar and the Iraqi Dinar were both over $3 USD to 1 dinar, and had been for many years. Let's see where we are today, regarding the economy of the two countries and the numbers that matter in setting a countries REER (Real Effective Exchange Rate) !
~~~~~~~~~~~~~~
KUWAIT. Sept 4, 2024 IRAQ
Population: 4.95 million 44.5 million
Gold Reserves: 55.11 tonnes. 143.3 tonnes
Reserve Currency:42.3 Billion USD 115 Billion USD
GDP: 175.4 Billion. 265.89 Billion
GDP/Per cap: 307 Billion. 530.86 Billion
Inflation: 3.7% 3.9%
Gas Reserves: 63 trillion Cu Ft. 131 trillion Cu Ft
Oil Reserves: 102 Billion Barrels. 145 Billion Barrels
Oil Reserve Status: 4th in Opec/ 10th in World. 2nd in Opec/5th in World
Mineral & Other Resources: Fresh Water. Phosphates, Sulfur, Salt, Gypsum, Stone.
Benzynite, Agriculture.
KWD to USD (1 dinar = $3.54 usd) & IQD to USD (1 dinar = 0.001 or 1/10th Penny)
What's wrong with the above Numbers? To CLAIM OR DENY the Effort to RV/RI the Iraqi Dinar as a SCAM, is not only untrue it's Stunated Foolishness Level!
No comments:
Post a Comment