What can we investors do to help the RV situation?
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. You do want the RV don’t you? Pray for Iraq and also 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. Remember you can say the Rosary daily or use the prayers and links I provided from the Auxilium Christianorum for your prayers. Folks your prayers so far ARE WORKING and God has heard your cries. Just look at all the progress made just since December 2022 when Iraq announced they were finally entirely out of Chapter VII. And now the spigot is wide open the final issues preventing the reinstatement are being dealt with one by one. Can you see it too. I am trying my best to help you see it.
We don’t’ need this foolishness of this everyday / any day garbage intel. You think this is all just coincidental? God’s Hand is at work here. He has given Iraq his anointed leader Al-Sundani to help in this work. Even I have to sit back in amazement of what he has accomplished so far. Pray for him and all his success. It is June already and this month is proving to be a very significant month again. But my contact in the CBI told me there is a very high probability that we would see the currency swap out in this month of June and so we watch and wait. I will get more news tomorrow when I make my call to Iraq.
Iraq 06/24/2024 The Budget Department of the Ministry of Finance called on all ministries, governorates, and entities not affiliated with a ministry, to send their authorized representatives for the purpose of receiving estimates of current expenditures, revenues, and investment projects for the current year, approved by the House of Representatives, and this is the first time that general budget tables have been approved and not a law.
Budget, where the government set a general budget for three years (2023, 2024, 2025).
There has been much talk among specialists about the budget deficit, which some have estimated at 25 percent, while the government seems confident in its calculations and is constantly calling for reassurance.
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Saleh, on specific mechanisms to fill the supposed deficit.
Saleh told Al-Sabah: “There are various objective factors that public finances depend on in the event of a real emergency deficit during the remaining six months of spending of the current fiscal year, which is known as limited resort to short-term loans or bridge loans in the terminology.”
He explained, “The general budget law in force allows borrowing with treasury bonds or transfers from the internal banking market, in addition to controlling operational spending priorities, which is what is called financial discipline, which tends towards preferring some necessary operational expenses over others according to priorities,” indicating that “this comes To provide sufficient financing for the committed urban projects without faltering or stopping.”
Saleh noted that “the policy of financial discipline adopted by the fiscal policy has become more restrictive in collecting government revenues and in accordance with strict oversight characterized by speed and precision,” and stated that “it is no secret that there are funds that were not spent from the previous fiscal year’s budget and were recycled, which provides a facilitating, compensatory climate.” In the flow of cash revenues, especially in meeting part of the basic and development spending needs in the current year’s budget.”
He pointed out, "Despite the above, oil markets are still in booming demand and their prices are higher at a rate of change of (positive 15 percent) than what is planned for the price of a barrel of crude oil in Federal Budget Law No. 13 of 2023 (the tripartite budget), which is $70 per barrel." “One,” he stressed, “this in itself is a positive element in covering necessary spending, and leads to a continuous reduction in the hypothetical or planned deficit gap.”
In this context, economic affairs researcher, Nabil Jabbar Al-Tamimi, stated that the ceiling on government spending and revenues is restricted, expecting that public spending will not exceed the available amounts.
Al-Tamimi told “Al-Sabah”: “The general budget is numbers, tables, and hypothetical estimates for revenues and spending, and in general, the government has set a high ceiling for revenues and spending, and indicated that a large deficit could occur in the issue of revenues to cover spending.” He added, “The government has put in place a set of plans.” To cover the budget deficit, including borrowing and selling bonds.
He continued, "The government will not spend more than the expected revenues and will not be able to implement the budget in full technically and financially, and spending at the end of the year will not exceed 150 trillion dinars." He stressed that "this number is the amount of revenue achieved with a small deficit," indicating that "the government will not You can implement the budget in full and will remain hostage to the funds collected, which will be spent according to the available ceiling.”
Before I dive into any information concerning opening a trust or trust administration, remember that I am just telling you what I plan to do and not giving any advice whatsoever. I am not an attorney, a trust or tax attorney. I am not a certified financial advisor nor any of these like professional disciplines. For my personal use, I have done extensive research on trusts but even with this I will still consult a trust attorney to set up the trust and to help me manage it. Having some knowledge of trusts only helps me talk intelligently to the legal professionals and understand somewhat of what they tell me.
There are two kinds of trusts that I will be using. They include the Simple Trust and the Complex Segregated Assets Trust. I will be using both of them based on the type of asset I wish to put in the trust and what I intend to so with the asset. In some cases the asset is money and in other cases it is property or cars. I have already written a Living Will Trust for the ease of transfer of property upon our deaths.
A key note is to remember you DO NOT have to have a trust to exchange your dinar at the bank or any currency for that matter.
You can visit my TRUST WORKSHOP in my blog for more information on trusts. This information is just an overview and familiarization with terms used in working with trusts. You should always contact a specialized trust attorney to select and develop a trust that is right for your personal objectives as to how to protect and handle your assets.
WILL YOU BE TAXED ON YOUR EXCHANGE OF CURRENCY?
This is another one of those questions that keeps popping up. I will tell you I have researched this also and there are two sources I can reference to help get some information on this area of concern. You are welcome to go read the information for yourself and then determine for yourself. If I were you I would definitely take this information to a tax attorney for guidance and maybe call the IRS yourself to get a definite answer. For now, it is still skeptical what the taxes will be and how they will be handled on the Iraqi dinar exchange. We have not gotten any definite ruling by the IRS nor will we probably get one. If in doubt, be ready to file and pay taxes.
If the value of foreign currency changes from when you acquire it to when you dispose of it (e.g., converting it back to U.S. dollars), you may have a gain or loss. Generally, gains on appreciated currency are taxable at ordinary income rates, not as capital gains.
THE “VACATION” EXCEPTION
This exception is a good starting point, since it applies to many people. If you hold a foreign currency for personal purposes, such as returned from a vacation trip or business trip and have left over foreign currency you did not use while abroad, and you incur a loss of any amount, or your gain is less than $200, there is no tax due on the gain or a deduction for the loss.
How does this vacation exception apply to the Iraq dinar exchange?
Some issues to think about and bring to your tax attorney.
Your gain will be much more than the $200 exception in most cases
You are not returning from a vacation or business trip
Do we consider this exchange from an investment or a casual exchange from a hobby or trip since we did buy large sums of it and held on to it for so long?
Are there any “special” exceptions to taxes based on State Dept policy towards Iraq and currency exchanges? See below link. Scroll down to Section 6. This might be what we are looking for.
