12-26-12 BlueDog (*********): I will be happy to answer your question. While the GOI and everything and everyone in Iraq appears more corrupt, greedy and historically inept than our own U.S. Government --- please let us not forget that it was not that long ago in the Bush/Cheney invasion era that the UNSC sanctioned Iraq and therefore took their currency off the world markets. I doubt I have to remind you of the value of one dinar to one USD prior to that time.
There is also little doubt Iraq is one of the richest natural asset countries on earth --- oil, natural gas, gold, diamonds, etc. While the sectarian and religious factions in Iraq argue over power, greed, corruption, control, and everything else -- please remember this has been an ongoing problem for many centuries there.
Also remember the ruling elite are similar to the 1%'ers in our own country in that we have to seriously question their true concern or regard for the 99% of the population. The elite are already wealthy and secure for life.
The incentive to act quickly on behalf of the very people they "rule" may be lacking. But back to the currency and asset issue: regardless of how long it takes to revalue the IQD in whatever way they elect, there can be little argument the IQD does not have the actual asset wealth to back the currency (which the USD does not have) and if Iraq wishes to rebuild the country.
To become a member of the WTO and be an elite member of the Arab world they will have to meet the UNSC requirements to be removed from Chapter 7 sanctions and then be ascended back to the WTO and while all of this is occurring Iraq MUST reacquire a currency which is accepted by the world exchanges and has a value to support their budgets and rebuild the infrastructure of the torn country. That new value might arguably be at or near the value of the IQD/USD.
The "evidence" for a global reset is the intuitive, known reality that the world financial system is broken. 600 trillion USD of toxic credit default swaps marked back to original cost by the Obama/NASB slight of hand accounting rules last year allowed the banks to survive temporarily ---- but these toix assets are still owned by the banks and lenders and will have to be dealt with in some way to avoid the world financial total collapse.
Fact is....there are NO FACTS that we will ever be told until such time as the global currency reset occurs. I am a professional currency trader and I do get to read a lot of institutional material --- and I can assure you Wall Street cares nothing about Main Street and the 1% care nothing (most of them) about the 99%.
BUT ----- if the global financial system has a systemic failure, even the super rich will find themselves in a desperate situation along with all of us. Whatever currency they hold will devalue as the financial system implodes.
Our UST has more than 16 trillion USD debt. Our Federal Reserve Board (after the recent GAO audit revealed) has more than 16 trillion "fiat money" loaned out to U.S. and foreign entities --- which on the Fed balance sheet is a LIABILITY in reality because it cannot and will not ever be repaid.
I have NO affiliation with any currency dealer or IQD broker or sales entity. We trade currencies and the S&P futures market heavily each day for our own accounts --- not attached to any Wall Street firm. My personal group of 3 traders own about 100 mil IQD -- so that must suggest I think we have a good shot at this.
From what I ave been told China has a huge vested interest in the IQD and also has quietly bought many of the banks in Vietnam. Vietnam is an agricultural country that is slowly growing in GDP and their VND is presumed to be a vital part of the global reset.
Here is the essence of all of this. Because Iraq is the ONLY country with the required asset base to tolerate a serious currency revaluation back to pre 2003 levels it becomes necessary for the IQD to be the main currency in any global reset.
Some debts will be "forgiven" and many will be repaid. IF we do not have a leveling playing field event ---- none of this will matter to any country. Most central banks and wealthy investors do own the IQD and VND --- I am told. When the U.S. and the UNSC and the IMF finally apply enough pressure on Iraq -- we will see the RV occur. Not before.
China, Japan, the UK, the EU, the U.S. are ALL in serious financial strife now. Even the Russian Federation has serious problems. And we all know about Greece, Italy, Portugal, Spain, etc. etc. They are hanging on from loans from the ECB and the WB and the IMF. By the way, you know the UST has for years been the main funding component of the UN and the IMF.
No disrespect here, but none of these talking heads and spin doctors know anything about the inner workings of the world financial system. It is complex and controlled far beyond imagination. BUT I would ask you this: DO YOU TRULY BELIEVE THE WORLD POWERS ARE GOING TO ALLOW THE ENTIRE GLOBAL FINANCIAL SYSTEM TO FAIL ?
Almost all of the world currencies are FIAT money backed by nothing more than faith, hope and past performance. The 600 trillion toxic, worthless derivatives have in one giant step pretty much wiped out decades of hard work. There is not enough money in the entire solar system to retire that much debt.
SO ------ we either accept the notion that the world financial governing bodies (primarily the U.S.) are working toward a solution ------ or we are left with the notion that we will eventually face an entire world monetary collapse. IF they are working toward a solution that suggests a heretofore unique global event in which currencies and debts and all playing fields MUST be resolved and we begin a new world monetary order.
Despite all the sword rattling and left wing nonsense put out by the media --- the U.S is still the world's strongest, most feared, and most respected nation. We are the world leader and we will be the catalyst for survival monetarily.
DATE & RATE ------ I wish I knew. NO ONE KNOWS right now --- but it is being worked on every week as best we can without another outright invasion of Iraq and toss Maliki in the trash can. Remember, we put Maliki in power and backed him.
Now we are realizing that was a mistake. But we have to live with it until Obama decides what he will do eventually. Barack Obama (whether we like him or not) is THE MOST SINGLE POWERFUL POLITICAL PERSON in the world.
Just ONE of our nuclear carriers from the 5th fleet could eliminate Iran in 72 hours. They know this. Why do you think we have not been hearing much from Iran in the news lately? Despite military budget cutbacks ---- we have by far the most advanced technilogically military in the world. Russia, China, Iran ---- they know this.
I guess we have said enough. I and my group are with you in wanting this mess to end as soon as humanly possible. Of course we do. When Iraq feels sufficient pressure from us and the UN and the IMF ------ it will happen. I would personally like to see Iraq under limited sanctions from the U.S. again ---- but that is unlikely. Iraq owes the U.S. and the IMF many billions USD.
And we still have frozen at the Fed Reserve Bank of NY more than 800 bil USD belonging to Iraq which were frozen under Bush/Cheney. Anyone who wishes to ask a specific, reasonable question can email me personally through The Trade Desk at firstname.lastname@example.org
Privacy is of their serious concern. I realize well this has been a frustrating, long overdue event. We are all annoyed and agitated by the never ending delays and excuses. But we are dealing with a 5000 year old culture and unless you have spent time there it is difficult to understand their thinking and behavior.
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