I snipped these facts from a CNN business article on Iraq’s economy from 2002 prior to the liberation. It is a quick reminder of the oil producing ability and resource availability of Iraq. I thought it might reinforce the view of a valuable dinar. Mods move article if need you feel the need.

Prior to the invasion of Kuwait Iraq produced 3.5 million barrels of crude per day [1990]. Therefore with Foreign investment and upgrading Iraq already has the existing ability to produce at that former level, which is 1.5 bpd over its current production.

Most interestingly to me the article declares in 2002 Iraq had 3 trillion dollars in provable reserves. At today’s prices that’s 6 trillion dollars of reserves not including the believed $12 trillion of additional oil reserves [Yep people were aware of the unspoken reserves back in 2002] not including natural gas reserves. The stored value of these oil reserves alone can be used much like the stored value of gold can be used to support a currency’s value.

Potentially 18-Trillion dollars in value at current market rates exist in oil alone[anyone here believe the price of crude is ever going to fall as the global industries become more thirsty for this economic life blood?]

Therefore I can see no reason why Iraq cannot support a dinar value that exceeds a dollar US regardless of how many dinar are in circulation. When you consider that in fact the Iraqi dinar can back its currency with the largest store of a commodity that the entire world needs, well to me it’s unarguable.

Plus as a side note remember also that all Middle Eastern currencies using the 1000 fil monetary system are valued at over a 1.40 USD. Iraq uses that same system.

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Iraq economy shrinking, despite oil

By Geoff HiscockCNN Asia Business Editor(CNN)

--Iraq is sitting on oil reserves worth more than $3 trillion, but the country's economy is going backwards in 2002, the latest data shows. –[based on $30.00/barrel oil]

A decade of economic sanctions against Saddam Hussein's regime since the 1991 Gulf War has left Iraq's oil-producing infrastructure in poor shape, according to U.S. government estimates.As well, observers say Saddam has chosen to spend money on rebuilding his military strength, rather than attempting to diversify the economy away from oil or increase social capital.The U.N. oil-for-food program has delivered some relief, as did increased oil production and prices in the mid-1990s.But a downturn in oil prices in early 2001 and the new political dynamic after the September 11 terror attacks in the United States changed that.Iraq was subsequently named by U.S. President George W. Bush as part of an "axis of evil", along with North Korea and Iran.One consequence has been a sharp decline in oil imports by U.S. oil companies, and increased nervousness in some countries about trade ties with Iraq.

U.N. sanctions

Iraq also has 220 billion barrels of probable and possible resources, plus 110 trillion cubic feet of natural gas. –[ here we see the admission they already knew about the other possible reserves]--The problem for Iraq is that because of the U.N. sanctions, it can't sell all the oil it is capable of producing.According to the U.S. Department of Energy, Iraq's average daily output last year was 2.45 million barrels a day, with about 2 million barrels a day legally exported under the U.N. program and the rest used domestically.The Middle East Economic Survey this week says Iraq's production so far this year has been less than 2 million barrels a day, after an April-June slump. Output picked up again in July.Hussein announced in early April that Iraq was stopping oil exports for 30 days to protest Israel's action against the Palestinians.Industry experts believe Iraq is now capable of producing about 2.8 million barrels a day -- substantially down on the figure of 3.5 million it achieved in July 1990, a month before it invaded Kuwait.

Find this article at: CNN.com - Iraq economy shrinking, despite oil - August 23, 2002