Iraq an economic Study

OHhhh.. not familiar with all the dinar sites.

Ok... however, would that be reducing the amount of dinar that much? When you have a large percentage in poverty, how will that work in - country to reduce the currency?

Didn't I read that this process involved auctions and bonds?

Well, the poor don't generally have the larger denominations anyway, so it's the folks with 25K notes stuffed in their mattresses that this would be targeting. Once they do economic reform and float the rate, people are going to be more willing to use banks, and more willing to invest in things other than cash. I guess it could just be a flop, but Iraqis are selling tons of dinars for dollars every day. I would assume, if they are willing to sell for dollars, they would be willing to sell for dinar-denominated bonds, especially if the economy starts growing as it will once economic reform, and market diversification, takes hold.

Last Edited by Revbo™ on 08/21/2013 11:22 AM

I get that ReV... but this process is supposed to be for keeping the exchange rate level. I don't get this guys big revelation - that's all.

It's not really that big of a revelation. It's just something that went along with the "Open Monetary Policy" article I posted. Buying and selling bonds is how most central banks control the value of their currencies. When they want to increase the value, they sell bonds to lower money supply. When they want to lower the value, they buy bonds and increase the money supply, like our Fed is doing now with QE3 through MBS purchases. Ordinarily, they try to keep values in a fairly stable range, but that doesn't mean they can't just go all-in on selling bonds and sucking in money supply. The issue is, how much have they gotten in already through the auctions. If they have gotten as much as I think they have, they won't need to sell many bonds, except to larger holders of IQD to get the last few larger in-country notes out of circulation. We're not talking about 30 trillion dinars here. More like 2-5 trillion is my guess.

Here's a little bank story I came across this morning from a guy I who doesn't post this kind of stuff...

Quadkidd1:
I too have a contact at WF and although I don't know this guy very well he says that his mother works for the US govt and her role is in the banking sector and the purpose of her job is the efforts of , the US and Iraq and the coordination of the banking between the US and Iraq. He IS on board with the RV theory and holds IQD. That's about all I will say but I did sit down face to face with him and discussed the above. Is it all true ???? Well all I can say is what I am stating is true and as far as his information... I hope so too!

Good point re: bonds from Aloha Alex on DA:

Profits from bonds are tax-free, which is why some very wealthy Americans use them to pay all their taxes, so inessence, never having to pay taxes. One of the tricks the rich use to stay rich. A good financial planner will know which ones to invest in.

It's interesting to me how this thing has evolved, and how I've evolved since I got involved in it. In the early days, for me, and I think for most of Dinarland (and it's still that way for most of Dinarland), this whole thing was shrouded in mystery and intrigue, and it was seemingly based on the idea that they were breaking all the traditional rules of economics to get this done. As it turns out, all Iraq needs to make this thing happen is economic reform, market capitalism, and an open monetary policy, three things that are in any Econ 101 Macro textbook.

Last Edited by Revbo™ on 08/21/2013 12:25 PM

Well all I can say is what I am stating is true and as far as his information... I hope so too!

He didn't give any information!!!

Thanks for the lesson! ;)

Are you still thinking an RV or just the float?

Maybe this will help a bit more with your questions on Enorrste's comments from earlier. Someone asked him basically the same question. I think his response is similar to mine, but he may shed a little more light.


Enorrste:
I don't believe anything can be said about Iraq's position regarding international acceptance of the dinar from this article. What CAN be deduced is that they are planning for the value to rise. Whether that happens before, during, or after international recognition of the currency cannot be deduced from this article. However, it makes sense to think that it would coincide with international recognition of the dinar.

Next, it is easy to make a blanket assumption that "Iraqis are poor and can't afford to buy bonds." On what would you base that assumption? As in all economies there are some who have a lot of money, and those are always the people who are bond buyers. The same will occur in Iraq. It is also probably true that those are the ones who are still holding on to large denom notes, since they can afford them. In short, I see no problem at all with the CBI offering to sell bonds. Clearly they are in a better position than you or I am in determining whether there is a potential market, right?

[mort] 12:10 pm wed got info from my guy that 2 days ago there were 100 countries run through with no problem, now the rest are run through ok but there are #7 countries who are not happy with their rate and want it changed, but now all rates are in the banks and on the screens and just waiting for the US treasury to push the button, Christine LaGarde has had it with this whole process taking forever for it to happen. She said the #7 countries will stay as is and they will just have to deal with it. She said if the US treasury Doesn't press the button today the IMF will step in and press the button for them-they want this done!!

I find it harder and harder to argue with Kaperoni and Enorrste that they will just float it from where it is, just because that's how it's done. I see all the downsides of a free float from 1166, but SWFG proved, a long time ago, that there has never been an appreciation shock of more than, I think, about 50% overnight. We would be looking for 100,000%, or better, which would break all the rules of traditional economics. I believe they can get to where they want to be using traditional economics, so I don't believe they are going to break those rules. I could be way off, and they come out at 86 cents just as sort of an IPO rate, since IQD is so grossly undervalued at the moment, but if Kap's right, the gap up on the first day would get it close to there anyway, so it doesn't even really matter.

Yep, its really quite simple. What gives value to currency, when it is not artificially pegged. When has pegged it and for what reason. Are those reasons still valid, if not why does the peg still exist. It would appear that most of the reasons for a peg are no longer in existence, and as for what creates value in a particular species of money, I think gold, oil and reserves speak for themselves. The peg and who holds the key would seem to be the pertinent question. The rest as far as I can see is just fluff.

Having said all that the power lies in removing the peg and those that hold its removal.

Time to think post RV. Here is some good info from some other folks.

Eagle!. Be sure to run this by a good tax attorney or your fiscal team if you have one. Hope it helps.

Put funds into NIB accounts (non interest bearing backed by UST). 1) IQD 2) VND

WELLS FARGO is offering us an account equal to the TAG ACCOUNTS that were created under Dodd-Frank in this account funds WILL NOT SUFFER DE-VALUATION .. and WON'T TAKE A LOSS IN THEIR VALUE

Put the moneys from dinars exchange into a bank that is thoroughly and totally Basel III compliant:

- Zero balance - Non-Interest bearing account

It is an account they WILL CREATE FOR YOU. If you talk with your banker or your private banker, they will set this up for you

They will probably want to SET IT UP AS A BUSINESS ACCOUNT, rather than a personal account. That's the language they have used with me (Eagle1) as I've spoken to them about it.

And what they want to do is attach it to our Trust accounts. That's how they want to attach them (the TAG accounts). ZERO BALANCE ACCOUNT & NON-INTEREST BEARING. (Tag accounts) is a short-term proposition until ready to diversify funds (purchase property, metals, brokerage account, purchase short-term T-Bills or US Treasury Bonds. T-Bills are sold by the bank in 30-day increments, 60-day increments, 90 day increments. You can buy them at whatever length you want to. So if you got $10million from your exchange, after you have exchanged your dinar.. you can go buy 60-day or 90-day treasury bills (treasury bonds), that will expire and pay out at the end of that.

Having the zero balance account, and having the non-interest bearing

.. if you got $10 million USD , or $50 million usd in that account, Wells Fargo WILL PROTECT IT BY DISTRIBUTION. CDARS is a distribution system where the funds are distributed across numerous accounts, and across numerous finance entities, FOR THE SAKE OF PROTECTION. And I believe that that is what WF intends to do. The alternative to it is to have U.S.Treasuries.

You can purchase your own US treasuries. WF or any bank will sell you US treasuries, and you can use those, you can use your USD, even the funds that you would get, if you EXCHANGED DONG, or RUPIAH.

You can use those dollars to purchase treasuries AND PROTECT THE MONEY = just as though it were in a tag account.

Set up a sweep (cash) account (no risky investments are in it). For a couple (2 beneficiars (PODs) the account is insured up to 1.5 million. FDIC covers up tp 250k. DIF (better) covers over 250k. WF SPIC coverage best.

Joint accounts (i.e., multiple owners) — Cash sweep deposits are insured for up to $1 million in the case of two owners — plus an additional $250,000 for each additional owner.

Trust/transfer-on-death (TOD) accounts — Cash sweep deposits are insured for up to $750,000 in the case of one owner/one beneficiary — with additional insurance coverage for each additional owner/beneficiary combination (e.g., with two owners and two beneficiaries, the total is $1.5 million).

WF current Bank Deposit Sweep Program places no more than $250,000 at each of the second and third affiliate banks for a total of $750,000 for individual accounts (higher for joint and trust/transfer-on- death (TOD) accounts depending on the number of owners/beneficiaries).

Deposit solutions The Private Bank also offers you a number of premium deposit services to provide convenience, flexibility and control. All of our deposit accounts come with: [link to www.wellsfargo.com (secure)]

•No monthly service fees
•The Private Bank debit card
•Free Wells Fargo checks
•Increased ATM withdrawal limits
•The Wells Fargo Private Banking PMA® Package

Want Black credit card and NO bank or spread fees - ever

Put 50% for taxes into short term (30 day T-Bills) or tax free municipal bond mutual funds and generate a monthly "tax free" income until you need to pay taxes.

Obtain (30 -40) CCC [Clean, Clear Funds of Non-Criminal Origin Certificate] signed by the bank [link to www.fourwinds10.net]

Put aside a ____% into Brokerage Account (generals64.info) "commodity exchange" 11% fee/tax only if you are in the general's group.

Set up a MCA (foreign multi currency account and hold a percentage in other currencies (Canadian Dollar, Aussie Dollar, British Pound, Yuan/Hong Kong, Swiss Francs) A multi-currency account is simply a bank account, with a single account number, in which you can hold balances in various different currencies.

Purchase property and metals

Set aside ? mil for Annuities which provide monthly income for 20 -30 years

Set up Charitable Trust account to save principal which will be passed onto beneficiaries

CXI website. www.ceifx.com/index.php

THE QUESTIONS:

WHAT TYPE OF BANK ACCOUNTS DO YOU HAVE AVAILABLE?
Put funds into NIB accounts (non interest bearing backed by UST). 1) IQD 2) VND

Set up a sweep (cash) account (no risky investments are in it). For a couple (2 beneficiars (PODs) the account is insured up to 1.5 million. FDIC covers up tp 250k. DIF (better) covers over 250k. WF SPIC coverage best

T-BILLS .. or US Treasury bonds. T-Bills are sold by the bank in 30-day increments, 60-day increments, 90 day increments. You can buy them at whatever length you want to. So if you got $10million from your exchange, after you have exchanged your dinar.. you can go buy 60-day or 90-day treasury bills (treasury bonds), that will expire and pay out at the end of that.

And here, I've been thinking they were re-inventing the wheel. They're not re-inventing it. They're just building it out of 24 carat gold.

Ohhh . . . that is some good advice right there! Buying US T-bills . . .

Iraqi bonds, AC. Not American. They have almost no debt at the moment, so they should be able to sell quite a few.

Last Edited by Revbo™ on 08/21/2013 01:31 PM

Adams chat was light and happy [link to dinarvets.com]

Anything the US, bonds and treasuries I want not part of, and when you speak of FDIC, do you really think they could cover a major banking failure, they are broke now. No perhaps these Ideas would have been good at a differ time Alex, but not now.

I would rather arrange for a large purchase of bullion to be made at the time of trade in and take it home with me. As far as cashing in do it for lawful money, it then is untaxable.

Banks now consider depositors, as investors and hence you can loose it all in a bank failure, learn from cypress. Would be terrible to have a cash in one week and to be broke the next. No thanks, its gold or tangible goods for me, prearranged purchases at the time of cash in.

Oh, they're not getting my dinars for any junk bond, but that's not to say they won't get plenty.

Agree with everything you have to say there, ts. My only question is about lawful money. I've seen you mention it before and haven't really looked into it, but are you talking about Treasury Notes? If so, where do I get those? They were only allowed to print, like, $100m, or so, a year, and they stopped even doing that about 30 years ago if I'm not mistaken, and replaced them completely with FRNs. Assuming it's true that I wouldn't have to pay taxes on that, and I feel like I'd be in for quite a fight with the IRS, how are they gonna find enough Treasury Notes to pay more than a few dinarians?

Last Edited by Revbo™ on 08/21/2013 02:00 PM

Incidentally, we should really all be for the float. If that's the case, and I'm betting it is by not buying any more dinar or reserves until the Econ Reform shows up on Parliament's agenda, I get to jump right in the minute it goes at 1166 and buy as much as I can afford. That way, I'm not locking up money that I need right now by stuffing in the mattress. I think I mentioned it before, but that's probably why Forbes, WealthDaily, etc are not dinar fans. They can't trade it and make money on it today. I'm sure their tune will change as soon as dinars become tradeable.

You go to the bank and ask to exchange for lawful money?

Hey Revbo, here is a thread I started on lawful money a few years back, before my for ever ban. lol enjoy

Thread: Pay No Taxes legally -End the FED -synopsis page 8-Why are waiting for someone to do it for us like Ron paul

Page 1 has a good synopsis I added later after the vids were not longer working. I did post new links to the vids later, but not sure if they are working now as I can't update the thread anymore do to my bannishment.

Last Edited by talkstory on 08/21/2013 02:17 PM

I am scared to click on it! lol

Thought you might have an easy response for us here.

That sounds an awful lot like a Wesley Snipes argument, man. I'm just gonna pay the damn tax and enjoy early retirement and avoid the protracted fight with Uncle Sam. Unless he wants more than 40%. Any more than that and it's going into a nice, tight roll up my backside and off to Uruguay.

Last Edited by Revbo™ on 08/21/2013 02:55 PM

So, now we're gonna have another base over there. Hope and Change! Woohoo!


Terrorist organization يتموضع the Iraqis and infect humans, oil and political situation

BAGHDAD - Nizar Hatem revealed Iraqi sources and informed that Iraq and the United States putting the finishing touches on completion of an agreement between the two requires the establishment of a U.S. military base in Iraq. According to the same sources, the U.S. military base, will contribute to addressing the organizations «base» by growing activity in parts of Iraq, while showing that the security services and the Iraqi military's inability to cope with the escalation of this activity and the expansion of terrorist operations. According to experts, the number of members of al-Qaeda in Iraq, as between 2007 and 2008 at the height of terrorist attacks against U.S. and Iraqi forces by about 5 thousand element, most of them non-Iraqis now reached to about 20 thousand, mostly Iraqis, so that became al-Qaida in Iraq locally.According to Iraqi sources, who spoke for Qabas, the Iraqi Prime Minister Nuri al-Maliki, who feel the government is concerned about the growing al-Qaeda operations and the seriousness of the security situation, dispatched to Washington and security delegation politically senior, featuring political adviser Tariq Najim Abdullah, a leader of the Dawa Party, which belongs to al-Maliki, and the Minister of National Security Faleh Fayad in addition to Foreign Minister Hoshyar Zebari that already exists in the U.S. capital. will discuss the Iraqi delegation with U.S. officials «activate the strategic agreement between the two countries , including the security aspect at the heart »according to the expression of Iraqi sources, which pointed out that the focus on« the establishment of a U.S. base enhanced aircraft without a pilot, and special devices detect terrorists and track, in addition to training Iraqi cadres of the system security ». Taking move sparked employed by Maliki's government surprise and puzzlement, where justified أوساطها that the threat of al-Qaeda has become a degree of risk threatening Iraq, which did not find about it only to bring American power back to the territory. Responding to a question about the fate of «immunity», which Washington had requested the troops that remain in Iraq and rejected Baghdad two years ago, withdrew those forces in full at the time, said Iraqi sources said the situation is different now, and that American power would be granted immunity «Valdharorh تبيحها». parallel modes of security and political mover confusedly on the Iraqi arena, surprising some of the information available to the Qabas sources concerned, and that the number of elements of al-Qaeda is on the rise steadily and, surprisingly, calls alert to the risk of more bloody and violent. Sources pointed out that the number of al-Qaeda members during 2007 and 2008 did not exceed five thousand element of Arab nationalities, while the number at present about 20 thousand a majority Iraqis. this growing attributed more than one source on the Academy telephone interview Qabas shipping sectarian cause, too, in what looks like a commonality between members of al-Qaeda and followers of the former regime, including military officers and intelligence caliber military and intelligence. 35 bombing of the tube Oil In other words, al-Qaeda in Iraq has become locally and began elements taking royalties from the citizens in the province of Mosul over the threat, while the exposure tube Iraqi oil stretching from Kirkuk to Banias to 53 suicide within two months, Valonbob passes in rough terrain there by al-Qaeda elements, so that can not be the Peshmerga forces of the Kurdistan region of control in order to ensure the protection of the tube that caused Anfjarath successive decline in exports of Iraqi oil. Baghdadi يشاكس Zawahiri and because of the increased scope of regulation Pat feels its leader, known as Abu Bakr al-Baghdadi ability to rebel against the rest of the squad organizational of the base, but Even Ayman al-Zawahiri, who is leader first for this organization.While Zawahri was called to the work of these formations all the plantings geographic face him Baghdadi message is the first of its kind in the address which he considered directing the latter is not true, announcing at the same time the need to do what he described as « State of Iraq and the Levant Islamic ». «victory» and the diversion of arms At this point, exclusively, according to some Iraqi sources that some of the weapons up to the Syrian opposition had begun Front victory sends varieties, including al-Qaeda in Iraq. Based on these data disturbing are the Iraqi government feel , more than ever, the seriousness of the security situation, as called for Prime Minister Nuri al-Maliki to send the leader of the Dawa Party and the political advisor Tariq Najim Abdullah, the Minister of National Security Faleh al-Fayad, to Washington, in parallel with the visit of Foreign Minister Hoshyar Zebari and his meeting with senior officials Americans to look at the the possibility of activating the strategic agreement between the two countries, including the security aspect at the core as well as preparing for Maliki's visit to Washington next month. U.S. base to meet the base of the information that was nominated for a meeting envoys of al-Maliki possible establishment of a U.S. base enhanced aircraft without a pilot, and special devices to detect and track terrorists, In addition to training Iraqi cadres of the system security. With Insiders pointed to the response of the American side to this request, adding that U.S. forces can not be استقدامه&#157​5; to the Iraqi arena without being given Baghdad full immunity, a point of contention that had emerged between the two sides, where America was developed Multi immunity is a prerequisite for the survival of some of its troops ahead of the withdrawal, while the rejection of the Iraqi side of this condition, Vagaflt U.S. troops are due to land in full. necessary may allow immunity and here highlights the vital question, whether the threat of al-Qaeda is on the degree of risk did not find Iraq about it only to bring American power granted immunity?

[link to www.alrafidayn.com]

Looks like the budget for 2014 people are pushing to get the agreement done!

Members of Finance Committee demand Baghdad, Erbil resolve differences prior to settling 2014 budget and election issues Posted: August 21, 2013 in Iraqi Dinar/Politics

Read more: [link to dinarvets.com]

Wow! That would be, like, 10 months early for them.

Here's something from July 28, where the IMF calls for economic reform and improvement to the exact issues they are discussing at IIEC's forum this week. Considering CoM passed Econ Reform last week, and that was only two weeks after they got this statement from IMF, I'd say we should see it on Parliament's agenda pretty soon.



IMF stresses the need for the adoption of Iraq’s economic reform process and the broad

The head of the IMF mission to Iraq Carlo Sdrallweg, that Iraq needs to formulate structural economic reform agenda and widespread, and it needs to follow up the implementation of that agenda with all its contents.

Allweg said at a press conference during his visit to Iraq, said that “Iraq upon the implementation of a lot of work in the field of public finance, and improving the management of the budget, and most importantly, to be in the area of improving growth and poverty reduction as well.”

He added that “the importance of upgrading the quality of spending, and this can be achieved, in the first place, by eliminating waste, and direct expenses to the poor more,” noting that “Iraq’s need to focus on increasing the level of provision of electric power, and the restructuring of state-owned companies owned of the state, and streamline regulations to help ensure its focus on helping the private sector rather than impose restrictions on it. “

The President of the International Monetary Fund (IMF) mission on the need to revive agriculture, including the reform of the public distribution system, which contributed to the decline in domestic agricultural production through large food imports. “

[link to DON'T_USE-THIS]

Here's a Financial Times article from October of last year.

[link to www.ft.com]

Can't post any of the article due to their copyright rules, but they list several things that need to be completed as part of banking reform, and it's pretty much done...

1. Rafaidin and Rasheed banks restructured. Done as of a couple months ago.

2. Dramatic fluctuations in the exchange rate. Soon to be addressed by CBI's new mechanism.

3. Telecom IPOs need to be done. Done.

4. International banks need to move in. Chase, BoA, Standard Chartered are in.


It also mentions private banks have to be able to lend to and accept deposits/handle transactions from the government and government-owned companies, and only the state-owned banks have a government guarantee, which should be addressed by the Econ Reform package.

A lot has happened in Iraq since FT put this out a year ago. We barely notice it because we watch it every day and it seems to move so slowly, but I think this is a good reminder of how far we've come in a little less than a year.

Last Edited by Revbo™ on 08/21/2013 03:48 PM