Professor Frank Gunter publishes a new paper commissioned as part of a series by IBBC's advisory council on the challenges of de-dollarisation for Iraq.
The Advisory Council members and IBBC members have actively contributed to the paper in the past 4 months. It will be presented online on the 18th June in a webinar and in person at the Spring Conference on 2nd July."
Professor Gunter shows an analysis on the drivers inside the market that impact the Iraqi Dinar exchange rate and how to close the gap between the Parallel Market and Official Rate of the Iraqi Dinar.
The Iraq Britain Business Council (IBBC) has been working closely with Iraq to help assess and meet the needs of the Iraqi private sector. These assessments inside this research paper will go a long way towards the implementation of meeting the needs of Iraq's private citizens through a determination of an exchange rate that can do so.
Practical policy initiatives are mentioned in this paper to carry forward new monetary policies. They are not calling this project a white paper, but it sure does have all the hallmarks of one.
These new measures are inclusive of budgetary needs for the Iraqi people. One of the items on the CBI website presented today are instructions on home loans. A mortgage is calculated with the inclusivity of an exchange rate to support it.
It is clear that the Iraqi Dinar is moving towards a credit valuation adjustment that can support the needs of their people and Government.
How Will Iraq Finance The Revaluation: The Pay Off
An example.
First off, I’ll use the exchange of a 50,000 IQD (Iraqi Dinar) note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD (US Dollar) and IQD (Iraqi Dinar), considering the current global economic environment, Iraq’s gold reserves, numerous trade deals, and its financial independence from the fiat USD.
What You Will Receive:
If you were to cash in your 50,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $49,000 credited to your bank account.
Keep in mind you will more than likely be able to wave many bank fees. So do not worry about that.
What Your Bank Will Receive:
Your bank will receive a $50,000 credit to its account with the US Treasury. They will also be able to add the $1,000 profit to their “capital account.”
Ultimately, the bank wins because they are able to gain $10,000 in lending power under the 10% “Fractional Banking” model.
What the US Treasury Will Receive:
First off, the US Treasury will receive $17,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $32,500 USD (i.e., $50,000 out – $17,500 in).
Again this is only an example using what people assume about taxes based on the current system they are familiar with. We know bills have been passed that makes precious metals non-taxable. I want you all to read this with that in mind.
Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $32,500 to $20,000.
Gold Reserves and Economic Stability:
Iraq’s substantial gold reserves, estimated at around 96 tons, provide significant economic stability and backing for their currency. This gold reserve bolsters confidence in the dinar and supports the revaluation process.
Trade Deals and Debt Status:
Iraq has established numerous trade agreements with countries such as China, India, and members of the European Union, boosting their economic resilience. Additionally, having paid off their international debts, Iraq’s financial position is more robust, making the revaluation more feasible.
In 2022, Iraq and China finalized multiple oil agreements, including a significant 25-year deal for the Mansuriya field. These deals enhance Iraq’s oil export capacity and strengthen economic ties between the two countries.
India also remains a major trade partner, with substantial imports of Iraqi crude oil. In 2022, Iraq exported $38.8 billion worth of crude oil to India, reinforcing the strategic energy partnership between the two countries.
Iraq has maintained strong trade relations with Turkey, with significant exports of hydrocarbons. The ongoing collaboration includes investments in infrastructure and trade facilitation.
Iraq has bolstered its trade relationship with the UAE, focusing on imports of refined petroleum, broadcasting equipment, and cars. In 2022, the UAE was one of Iraq’s largest import partners, contributing $21.2 billion to Iraq’s trade volume.
Iraq has sought to enhance trade relations with Jordan and Egypt. One notable initiative is the planned highway between Baghdad and Cairo via Amman, aimed at boosting regional trade and cooperation.
Moving Away from Fiat USD:
By reducing its reliance on the fiat USD and engaging in bilateral trade agreements using local currencies and gold-backed transactions, Iraq enhances its economic sovereignty. This shift supports the stability and strength of the IQD in the international market.
Oil Now Enters the Picture:
At some point, a Treasury-appointed agent orders $62,500 worth of oil from Iraq. Payment will consist of a $62,500 transfer from the Treasury’s foreign currency reserve IQD account to the Iraq oil payment account at the CBI (Central Bank of Iraq) in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties.
How The CBI Recaptures The Money:
The $62,500 order is filled with 1,250 barrels of oil based on the spot price on the date of the sale (for this example, we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? They have negotiated production agreements for approximately $2 USD/barrel. From that price, $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.50, the other oil field partners have to pay the Iraq government a profit tax of $.53 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.97 USD. (i.e., $2 – .50 – .53)
What does all that mean? It costs Iraq $1,212.50 to bring back a 50,000 IQD note! Can they afford that? I think so! So, instead of paying out $62,500 for a 50,000 IQD note, they only pay $1,212.50! That doesn’t add to the money supply much at all, does it? They receive their IQD back and place it in the CBI, or destroy it.
Summary of Economic Impact:
The transaction is completed with the US Treasury exchanging foreign reserve credits which are equal to $62,500 USD (which had a net acquisition cost of $20,000 USD for the US) for 1,250 barrels of oil (which has a TOTAL COST to produce of $1,212.50 USD for Iraq).
More completely explained, and simply put, it costs Iraq $1,212.50 USD from their foreign currency reserve accounts to redeem the value of 50,000 IQD, which goes into their operating accounts. At the same time, the US got $62,500 worth of oil for a net cost of $20,000. This is how the plan for Iraq to RV at 1 IQD = 1 USD is made possible, with the variable being the political element.
Other Factors that Strengthen Iraq’s Position and Ability to RV:
1. **Gold Reserves**: With approximately 96 tons of gold reserves, Iraq has a strong foundation to support its currency revaluation.
2. **Debt-Free Status**: Iraq has paid off its international debts, providing financial stability and credibility.
3. **Increased Oil Production**: Iraq plans to increase oil production from 2+ million barrels/day to 10 million barrels/day, significantly boosting revenues.
4. **Diversified Trade Deals**: Iraq’s numerous trade agreements with various countries enhance its economic resilience and reduce dependency on any single market.
5. **Reduced Reliance on Fiat USD**: By moving away from the fiat USD, Iraq enhances its economic sovereignty and stability.
Conclusion:
This comprehensive plan showcases how Iraq can afford to revalue its currency, benefiting all parties involved. The robust economic strategies, supported by significant gold reserves, trade agreements, and a shift away from fiat USD, make the revaluation not only feasible but also beneficial for the global economy.
In this scenario, EVERYONE WINS, and the IQD is gradually taken back into the CBI, eventually destroyed, leaving a manageable money supply behind. This process creates substantial wealth, supporting global economic regeneration and stability.
I can tell people skimmed through this based on the comments. This is a general hypothetical scenario assuming based on the current understanding of societal norms that people will by default exert their own interpretation upon out of sheer skeptical based on what they already assume about the IRS and currency exchanges.
Regardless of what I have been posting about regarding taxes and precious metals. I have on a repeated basis shown you all the federal buildings that have been closed since 2020.
Which included the Federal Reserve and the IRS building. We know we based on precious metals alone that taxes will be something omitted out of the entire process for private individuals which would be us.
I have shown you 45 states 22 of which are challenging the Federal Reserve who have made gold & silver tax free for purchase and capital gains. I wrote this post for the 99%. We are somewhere in the 5%. Not everyone is privy to this info on this page. So I have to post certain things just in case they attempt to write this info off as too out there because I am talking about people making millions of dollars without having to pay Uncle Sam 1 cent.
Judy Note:In my opinion it appeared that regulations for the Global Currency Reset were finalized on Wed. 29 May 2024. Tiers 1 and 2 have been funded, while Bond Holders have not. Tier 3 was apparently under Non Disclosure Agreements so they may already have liquidity. Tier4b (Us, the Internet Group) could be notified for exchange appointments any time from now to Tues. 4 June, with a final D Day of Thurs. 6 June. The Tier4b exchange/ bond redemption process was hoped to be finished by Sat. 15 June and if not, there was a back wall date of Thurs. 4 July when it was believed that the GCR would be announced to the General Public.
Fri. 31 May 2024 Wolverine: “It’s been a very emotional day. I will be having a very special live call. We are just inches away from getting that opera out for you guys. We are finally nearly there. My last call is Fri. 31 May 8:30 pm EST.”
Fri. 31 May 2024 MarkZ: Bond people have not yet been paid.
Everything on the new QFS either relates to gold, or it is backed by a precious metal. These new digital standard protocols will be the mechanism by which money is moved going forward. The future of money is in gold. Everything the world touches going forward will be because of a metal asset that enables it to do so.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Happy Friday Night….Hope everyone finds a way to have a little fun this weekend
Member: Another weekend almost here still zip!
Member: can someone pull the frigging bandaid off already?
MZ: Steve Forbes sat down with Ron Paul and they talked about the new gold standard today on the Liberty report. Guest was Phillip Patrick from Birch Gold. This was a fantastic one talking about How do we switch” What does it look like? Are we preparing ect……?They are talking about the need and the transition for a gold standard.
MZ: It’s encouraging that many are talking about this. Denmark says they are preparing for a Gold Standard…..As are BRICS countries. The world is going commodity backed now….It’s just a matter of time.
MZ: The world is preparing: “India Cenbank moves 100 tons of gold from UK to domestic vaults” This story has been shared all over the place. They do not trust the west.
MZ: “Sergei Lantrov –BRICS group is ready to welcome representatives from different economic and political systems” This is important. He says” Countries who want to join BRICS should be familiar with the principals of sovereign equality of states” In other words – you and I are sovereign….our money is sovereign and it’s based on assets.
MZ: RV related news has been quiet today as expected. I don’t expect any big news until late Sunday into mid day on Tuesday . But, I am very much expecting a quiet weekend.
Member: per TNT Tony, vote on the Iraq budget Monday, 3PM their time
Member: Iraq about done .. Gaza about done ... Ukraine about done ... US about done .... we gotta be close to done ..
Member: Got word from platform, saying that they are hearing that Monday will be liberation of funds. In Reno
Mark : I got a short bank story tonight. This is from central N. Carolina. Popped into a branch to do other banking ans while there I asked the person “Are you ready for currency exchanges? Are you trained for it? They said we are not trained but we know about it. Then another officer came in and was asked Are you aware of the currency exchanges and when higher ups train you – will you be ready? And the reply was “yes” They know its coming.
Member: Mark is it possible that Tier 4 redemption center banks are trained and ready ahead of those Tier 5 general public banks that perhaps aren't yet trained??
MZ: Makes sense to me
Member: what happens if all doesn't go at the same time, will we be notified again for the late ones???
MZ: Yes.
Member: Remember- 6/9/24 Ends the contract between Saudi Arabia and USA for purchasing oil with only USA money. This contract will NOT BE RENEWED
Member: We appreciate your info Markr. Hopefully Dinar hits this weekend
Member: Hoping June is our month…..sigh.
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THANK YOU, MARK AND COMM FAMILY!! WE WILL SEE ALL OF YOU AT 9:45 AM EST TOMORROW, UNLESS SOMETHING HAPPENS, FOR ANOTHER GREAT PODCAST... CBD GURU CREW FOR THE FIRST 45 MINUTES, THEN THE NEWS!!
Parliamentary Oil: The region’s violation prevented the approval of the oil and gas law
The Parliamentary Oil, Gas and Normal Assets Panel affirmed that there were legitimate infringement committed by the Kurdistan locale that forestalled the endorsement of the Oil and Gas Regulation.
Board part MP Kazem Al-Touki told , “The oil and gas regulation doesn’t experience the ill effects of specialized obstructions, however the principal snag to its endorsement in the Place of Agents is the Kurdistan area.”
He added, “The district has issues in regards to certain focuses connected with the pace of derivation of sums for each barrel of oil delivered in Kurdistan, notwithstanding the way that the territorial government has had contracts since the 1990s with organizations to separate oil disregarding the law.”
That’s what he expressed “the area disregarded the regulations by contracting with organizations to separate oil at significant expenses, not at all like what’s going on in other governorates, and these organizations ought to be rethought as far as agreements and monetary expenses for removing oil.”
