Thread: Iraq/Dinar News Before Febuary 12th, 2006

Originally Posted by TEXASGIRL

And when the yen was revaled, the day before the government had said it wasn't going to happen but it did. So there is ALWAYS hope!!!!!!!!

Thanks for the post, you really know your history. Back in the day when the king coined the currency of the realm, it was gold and silver. When the useless king couldn't satisy his greed with taxes, he diluted the coinage by adding junk metals to the 'currency of' the realm. Toward the end of his deceitful effort there was so little of the precious metal put in the coinage, it is referred to by coin collectors as "billon" - mostly junk metal 'sprayed' with gold/silver.

After our President Alexander Hamilton got rid of the insidious 'central bank' ideology and put us back on honest money - gold and silver, we, the US, had honest money - money that had real value and that could not be whipped up by some magical system. This system worked like a swiss watch for years and years. At that time, your dollar bill had been originally issued to someone in exchange for as much gold/silver. Restated, you could take your "Federal Reserve" note and go to a federal reserve bank and demand your gold/silver in exchange for the "federal reserve note", note conoting the idea of an iou, which it was.

In the '30's, our "illustrious socialist/statist president", fdr, outlawed private ownership of gold and took the US off of the gold backed dollar. Restated, Americans holding "federal reserve notes", 'you cannot have your gold back, we are going to keep it'. This they did, and boy did fdr and his people have fun with this idea. If you think about it, with technological efficiencies, a larger population, and more products, a dollar would have become more valuable every day, heck every ten minutes. Alas, such is not only not the case, it is the opposite of reality. This is because of our "federal reserve" and central banking system.

In "our" benevolance, we through the CPA, have blessed the Iraqis with this same system - it would be interesting to know who, if anyone, owns the CBI. In the US, the "federal reserve" is a privately owned company, Goldman Sachs is a significant stockholder (one of either 300 or 600, I have forgotten). When our "federal reserve" wants to print a dollar, the US treasury first issues a t-bill/t-note, read iou. That is why it is funny when people talk about the national "debt". There is no debt. This is smoke. If the US "national debt" were paid off, there would be zero currency in circulation - the whole thing is a ruse.

Regarding your point of the 'next day' scenario, you could be dead on. I believe this because the money in Iraq is backed by the same nothing that our USD is backed by. It is backed solely by what people can buy with it. If Iraqi oil were suddenly traded in Dinars instead of Dollars, the Dinar would absolutely explode overnight to unbelievable levels in value.

Please excuse this diatribe (hopefully not seen as a rant), but the bottom line is that the outcome (next day reval) you suggest, is sooooo much more likely than not, because of the 'central bank' 'federal reserve' type system that has been employed in Iraq, than it would be in the GCC "unified currency" wherein, gold backing is still being considered as a componant.

Scott Paye

You may of missed this update.

Originally Posted by Inscrutable

Speaker Dr. Mahmoud al-Mashhadani who chaired today's session ordered all journalists out of the parliament hall.Thursday's session, the last before a month recess, was expected also to vote on the proposed 2007 national budget.

Originally Posted by Cdn Scrooge

Here is another article about the passing of the budget and this one is a little easier to read.....


Voices of Iraq: Parliament-Session-Update 1

BT10:04 PM -2007 -كتب: saleem في يوم الخميس, 08 فبراير,


Parliament-Session-Update 1
Parliament passes 2007 national budget
By Santa Michael
Baghdad, Feb 8, (VOI)- Iraq's Parliament approved on Thursday a ID 42,640,000 million (USD 32,200 million) FY 2007 budget.
The budget approval was delayed for almost two weeks for differences among major blocs over two issues, the financial appropriations for the three presidencies and allocations for Iraq's Kurdistan region's guards (peshmerga).
The parliament passed the 2007 budget in Thursday's session with majority after an agreement was reached to move five percent of the total financial appropriations to the parliament presidency office.
Earlier, the parliament speaker today's ordered a private session to give the defense minister, who was present at the session, a chance to answer lawmaker's enquiries openly.
Some legislators asked the Speaker to declare a private session so that the defense minister could answer all enquiries without harming any classified information that he might be mentioning during the session.
Speaker Dr. Mahmoud al-Mashhadani who chaired today's session ordered all journalists out of the parliament hall.
Thursday's session, the last before a month recess, was expected also to vote on the proposed 2007 national budget

Parliament-Session-Update 1 :: Aswat al Iraq :: Aswat al Iraq


The way I read this is that the budget is for 42 trillion, 640 billion NID (42,640,000 million) which is equal to 32.2 billion USD (32,200 million) so I don't see where there is a reval in this budget. 42.64 trillion NID = 32.2 billion USD. Therefore 1USD = 1324.3 NID (42,640,000,000,000 divided by 32,200,000,000). However, that being said the 1324.3 rate does not reflect the current rate of 1288 as per the CBI website. My feeling is that the budget was finalized last December when the rate was around that level and they are not worrying about adjusting it to pinpoint the actual values. That means that the budget will have to be re-calculated as the value of the dinar changes. At any rate I don't see the infamous "1260" or "1000" rates reflected here. Also interesting that the original estimate of the budget was 42 billion USD and now it's 32 billion. Looks like they did some trimming and coincidentally the 2006 budget was around 30 billion USD.

I see both good and bad in that. To me it means that the rate can be adjusted slowly or in one big adjustment. The budget will not dictate the rate. Actually, that is the way it should be as the CBI is the one that sets the rate and they are distinct and separate from parliament. Now the big question is when will the CBI adjust the rate and to what level. And for that I haven't been able to find a crystal ball that is clear enough. All the ones I have been able to find are clouded by a lot of smoke.

Interview: Kurdish diplomat to DC Qubad Talabani
Ben Lando & Krishnadec Calamur
UPI
February 6, 2007


WASHINGTON -- An Iraqi oil and gas council could mitigate the concerns of sparring factions over legislation to develop the country's energy reserves, the top Kurdish representative in Washington says.

But Qubad Talabani, representative of the Kurdistan Regional Government (KRS) to the US, warns that the northern region has finished compromising on the energy issue.

"We have made considerable concessions in this process ... What has got to come back now is a guarantee that regions will receive their fair share, and regions will have the final say over management and contracts of any future oil deals," Talabani, son of Jalal Talabani, Iraq's president, said Friday, speaking from his Washington office.

Talabani also said the Kurdish north, largely autonomous since 1991, and relatively free of violence, has been deprived by the central government in Baghdad of fuel and electricity it deserves.

Negotiations over the hydrocarbons law have been officially taking place since last year, but are stuck on a few major points of disagreement between the Kurds and the central government, rooted in mistrust fomented by decades of violence.

Talabani said the council would be "intergovernmental," made up of regional and central government representatives and experts in areas like finance and banking.

"The council will make recommendations or comments on decisions made by the regions," he said. "A region should have final say over a region's development. We can't have the central government veto the decisions we make."

"The council will be not just advisory, but also a mechanism that distributes revenues. It won't have the power to block regional decisions. I doubt it will be a loophole-free system ... but they are leaving it to common sense and, worryingly, to goodwill."

Kurdish officials say their reserves, near 50 billion barrels - about 43 percent of Iraq's total, and another 11 billion, would be added if voters in Kirkuk decide in a controversial referendum scheduled by year's end to become part of the KRG.

Shiites control oil in the south, leaving Sunnis, a minority group empowered during Saddam Hussein's regime, with few resources. Oil sales fund 96 percent of the country's budget, so access to oil revenue is not a small concern.

The Kurds want 17 percent of revenue, down from the 20 percent they first wanted, and more than the 13 percent the KRG was initially offered. No agreement has been reached on the revenue-sharing law. Talabani said when it is reached, the council will ensure the measure is followed, not altered at the whims of any Baghdad minister.

The hydrocarbons law is also stuck on who has control over all new or future development. The KRG argues the 2005 constitution puts all current oil development under Baghdad's control, and the rest to the regions.

The KRG has signed development deals with private companies, which Iraqi oil minister Hussein Al Shahristani has said will not be honored.

Talabani said the national hydrocarbons law should set the parameters for such deals, but noted the regions should be negotiating and signing them. And any qualms about them would be brought before the intergovernmental council.

"For too long the country has failed in its oil policy," Talabani said of the history of central control. "Gone are the days we will be taken hostage by anyone."

Talabani said the hydrocarbons law can be changed in the future, after it is implemented and the loopholes and errors are realized.

"We've got to start somewhere and kick start the process," he said.

A deal on these issues, along with a much better security situation, are seen as necessary for Iraq to obtain the necessary investment in the hydrocarbon sector. The US is leaning hard on Iraq to pass the hydrocarbon law; it is a marker US President George W. Bush has set to define success.

"It doesn't require American pressure," Talabani said of the law. "It can't be said we're lagging. We won't bend on this issue. We value our friendship with the Americans, but any attempt to force concessions will fail," Talabani said.

And for the success Kurdistan has seen, Talabani says both Baghdad and Washington are not doing their part.

"Of the $21 billion spent on Iraq, 3 percent has been given to KRG and has been spent mainly on civil society, not infrastructure programs. We get three hours of electricity. Our people are bemused by this. It's a cause of much frustration."

Talabani said the KRG's plans to increase its electricity generating capacity have been stifled, and blames Baghdad for the current shortage of transportation, cooking, and heating fuels.

"It's huge. We're in winter. People need fuel for heat. Vehicles are parked for hours, days sometimes, to get gas. What people are saying is: 'Why didn't we have this problem during Saddam's days?'" Talabani said. "How can this government in Baghdad be treating us worse?"

He accused Baghdad of creating the situation as leverage over the Kurds during negotiations. "We're afraid the instability of Iraq could jeopardize the stability of the Kurdistan region. We think the US has neglected the region," Talabani said.

"We won't break away from Iraq, but we can't guarantee that Iraq won't break away from us."


Interview: Kurdish diplomat to DC Qubad Talabani - Business - Middle East Times

Originally Posted by TEXASGIRL

And when the yen was revaled, the day before the government had said it wasn't going to happen but it did. So there is ALWAYS hope!!!!!!!!

Originally Posted by Inscrutable

Speaker Dr. Mahmoud al-Mashhadani who chaired today's session ordered all journalists out of the parliament hall.Thursday's session, the last before a month recess, was expected also to vote on the proposed 2007 national budget.

Its called Black-Out Media.

Originally Posted by Bubba Dinar

MOF will enter the Bidding for IQD to pay for all the Projects now that the Budget is approved!!

Thanks Bubba Dinar, Much Appreciated!!!!

Now that the budget is approved, When will the bidding start ? I hope so soon.

Well talk about gibberish...be nice to know what this is all about!

Economic : banks accounted for the Iraqi government and its

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For these reasons and in view of the importance of the role of the private bank j in the next stage, which will witness the beginning steps Alas For overall economic loomed concerned give a Mam banks and private banks government to play its role in this reform, which requires, first, financial reform and criticism Oh synchronized so that they could play their role through :

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2. Moving the development sectors inactive and move better e Economic all its forms.
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* Rafidain Bank

Translated version of http://www.alsabaah.com/

Cheers!
DayDream

Originally Posted by Cdn Scrooge

I agree. I read that they are staying past the 10th until all required legislation is passed. Don't forget also that there is supposed to be some kind of public presentation of the HCL on the 10th. I would think that it will have to be passed by then.

I'm hoping that this weekend will bring us some really good news.

I believe you are correct. As of 9 PM bagdad time security was still in place for the officials in the meetings. This was 6 hours ago our time, so this Info may be stale, but yes they are still meeting. Sorry thats all I have at this moment. Will post when I have more.

Gloribee

Originally Posted by TEXASGIRL

And when the yen was revaled, the day before the government had said it wasn't going to happen but it did. So there is ALWAYS hope!!!!!!!!

Or the 'Yuan' even.

Yen = Japan.

Originally Posted by Gloribee

I believe you are correct. As of 9 PM bagdad time security was still in place for the officials in the meetings. This was 6 hours ago our time, so this Info may be stale, but yes they are still meeting. Sorry thats all I have at this moment. Will post when I have more.

Gloribee

Maybe they decided to stay and pass the HCL so they can start their vacation. The only thing that seems to work with them is make them pass something to get one of their 20 holidays. No wonder these people live in the stone ages.