STATUS OF THE RV , PART. 2
The reason can be summed up in one word – CORRUPTION. Vietnam launders the US Dollar for China. They also play a vital role in providing sweat shops for cheap labor for China owned companies. By keeping the rate low they are able to out produce most developed countries. This is why mimicked/copied products made in China are so cheap. It is that simple.
Yes, another stupid currency policy in spite of common sense. If you really wanted to hurt China and Vietnam for money laundering and sweat shops, you could revalue the currency to their real nominal value. This would hurt China and they would back off of using Vietnam so much this capacity. But these IMF currency policies seem to be all backwards and seem to support yet more corruption rather than stopping it. Sound familiar like they did also in Iraq with the dollar and currency auctions. Go figure!!!
If you play around with the dollar you are penalized. The US dollar is still King and when you play around with the King’s pawns, you get hurt. So, what is now happening in Iraq? They too are playing around with the King dollar and if they can’t fix this corruption soon it might also be a long wait for them too. Heck, it’s already been 20 years……. On the flip side of all this I don’t think the IMF, Word Bank or the CBI want to wait that long and are working diligently to fix the situation in Iraq. Perhaps they may bundle the Vietnam Dong too with the Iraqi dinar and so them both at once? But this will only happen with a sound monetary policy that changes the thinking of putting all currencies on a fair and level playing field. The currencies must be “Asset Backed” for their valuations. The prophets say that this is coming and we should be patient.
I also want to remind everyone of the video in one of my last Newsletters dated 02/18 of Steve Forbes and his speech on controlling the value of currencies. He specifically stated that it is not about focusing on the economy (which the Obama/Biden plan calls for) but instead looking at the non-monetary and monetary inflation signals when managing a currency. This is why the CBI has repeatedly told us their number one main concern is controlling inflation and not building the economy.
The Obama/Biden foreign policy also does not consider the billions of dollars in the DFI fund and the gold reserves. This wealth is not in the ground waiting to be tapped but liquid capital like collateral for the Iraqi economy. Like they told us many times already they can almost cover all of the dinar in circulation by 150% backed by their reserves alone. Can any developed country in the world claim this?
Do you see a conflict on plans here of how to develop Iraq – the CBI policy versus US foreign policy? Actually, this is what the uphill battle is all about that I keep talking about. What gives the US so much power to decide how Iraq will conduct its business? This idea that if you grow the economy inside Iraq it will supply most of Iraq’s needs, thus put the burden of lessening imports, thus less global trade is necessary thus less dollars used, thus the dinar will go up since the demand for dollars goes down to pay for the imports. What a silly notion. We go back to what comes first the chicken or the egg. But his is the Obama/Biden plan for Iraq and how to raise the rate of the dinar over the dollar. Get it?