Q & A
Question: ashleypikes, Jack Bowra, John Tanner
Mountain Goat, appreciate your analysis. Just one thing has left me and other quite confused it seems “To gauge success, they must get through multiple months of payroll”
So government salaries will delay an RV for months.
I’m struggling to understand this brand new scenario that was injected today.
Salutations.
Answer: Mnt Goat
Thanks everyone for your question on this topic of gauging for success of the electronic payroll mandatory rollout in Iraq starting in early July. There is no short answer to this question. Remember this is an ongoing RV saga and it may take to 2026 or even longer., but I doubt it. Who the hell knows for sure. But if you have been paying attention you can see that with stability and security and everything else, there is a very high probability this will not go past the summer. What scares me the most is Iran and a war with Iran.
So let me explain in more detail to clarify. First let me refer you to an article that just came out titled” “AFTER 19 DAYS, A FINANCIAL SHIFT DIRECTLY AFFECTS IRAQIS’ POCKETS.” You might want to first read it then follow up on my explanation below. The article is really informative but it is geared towards the average citizen and is more of a motivating article and “last call” to go get your bank account or else? Later the CBI will say we gave you 2 years to do it. Don’t blame us your pay is delayed.
By the way the comment about this being a “brand new scenario that was injected today” did not make any sense to me. The CBI has been trying many methods for years to get this money into the banks. I presented to you all these articles over the years. Did you read them and pay attention? I also have described to you the Dr Shabibi plan over and over again. I even have a separate link in my blog explaining the process. But comments like this only tell me you look at this as an obstacle (because you want the RV now) rather than good news and allowing the CBI, if successful, to move ahead to the next stage of the plan. I keep telling you there are NO SHORTCUTS to the currency reform process!!!!!!
This above article does not talk about the impact this will have on the RV process, Dr Shabibi’s plan of 2011. That’s the part I want to emphasize now but remember it all interconnected anyhow. So, if the CBI can get these hoards of cash into the banks this will drive the economy by providing money to loan out for various projects, new homes, cars, new startups, etc.. It will fund the economy. If you study macroeconomics you will find that you need a flow of capital for a healthy economy, which they don’t now have. Without a good economy they can’t prove that they can sustain a rate (around $4+) that is planned/projected/wanted for the new Forex rate. Next, this new rate on Forex also will be in a basket supporting other currencies in the basket, normally trading partners. So, sustainability is very important.
The less obvious impact on the RV is that the CBI can’t have all this cash suddenly coming out of the closets when they revalue in-country 1:1 and then do the currency change out to the newer lower denominations. This would cause massive inflation as there would be too much money in the monetary mass, too many millionaires. So, besides liquidity in the banks they are worried about post-RV inflation. Inflation right now in Iraq is the lowest in the middle east at only 1%. Remember I keep telling about this inflation monitoring process afterwards when they do go 1:1 but before they go to Forex. Did you forget?
This brings us to realize that getting these stashes of cash will happen in a couple ways:
1.For those that haven’t yet set up bank accounts (still about 55% of population) are usually the ones that don’t trust the bank the most, right? That is the CBI assumption. These are the ones that most likely also have the large stashes of cash outside the bank, right? But there will be others too who are just lazy and wait till the last minute. They have until July 1st. Still 90% of the people are on the govt payroll in one way or another either salary, pension, social security, etc. etc. So, when their gov’t pay can’t be paid to them because they did not yet get a bank account, what will happen? The CBI (not me) said they estimate they will use this stashed money to live off of in the meantime until their request for an account goes through. How long will it take to deplete their at-home stashes? For these types of people I am told there will not be any rush to get the accounts done, since they want to take time for them to use up their money at home first to pay their bills. This may take a couple of payroll cycles or more. I am not saying it will, only they plan for the worst. It all depends how quickly the money flows back into the banks. I am sure the CBI has some level of percentage that is acceptable.
2.A second ploy the CBI will use, as DR Shabibi used, is to offer incentives like offering discounted gold, larger returns on saving accounts or special long-term bond purchases. Yes, anyway to get this cash into the banks. For all we know this may only take a week or maybe more than 2 months. Who knows….
😊 I hope this helped.
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We must stay vigilant in our prayers. God is on our side and has said he will bring peace to the middle east too. There are a lot of moving pieces and things could happen suddenly. Remember that the govt and the CBI are on our side and want this RV as much as we do. But it is an uphill battle for Iraq, one they are slowly overcoming.
Now, all my readers can take this news as encouraging or negative. I can’t help the way you THINK. But for me it is all good and moving ahead. Our main focus now should be on Iran and what happens with the U.S. Also watch July inside Iraq and if they can resolve this long-standing liquidity issue.
But let’s not lose sight of all the events happening in the U.S. and how important the are too. What do the modern prophets tell us is coming?
Telling you the TRUTH, you do want to know the TRUTH?
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/