Thread: Iraq/Dinar News until 5/23/07 Midnight CST

This was posted today on the IMF website today; it's about Iran, inflation, and monetary policy but I thought it might lend some insight on IMF views for our knowledgeable ones to apply to Iraq:

http://www.imf.org/external/pubs/ft/wp/2007/wp07119.pdf

Originally Posted by Bubba Dinar

The HCL means Nothing!! The HCL is an Invention of the Big Oil Companies and the Iraqis's will never pass it. Contracts can be signed and Oil Exploration can go on without the HCL...

Exactly,

I agree, just look at the Kurd's to see what real leadership is all about. They didn't let all this BS cloud their economics picture, and I see the same thing happening in Baghdad behind the scenes, much of what we will not hear about in public for months. Just like with us, we take the calculated risk to invest in Iraq, and so will everyone else in the end which will push the economy forward with or without HCL.

It will all be done eventually, so all we have to do is wait for the lottery drawing and hold onto our winning tickets and make sure they are tucked away safely. After seeing the dog and pony show CBI has demonstrated by reaching the 1260 mark, all is good, this shows stability, and this is what the world was waiting on before investing. Once cabinet is reshuffled, and hopefully more Kurd's are in place, we will see restoration of dinars value shortly thereafter.

Good luck and health to all, Mike

Interesting highlights from the article:

The main results can be summarized as follows:
• A long-term relationship exists between the price level and money, its rate of return, real
output, and the exchange rate. Money has a prominent role in determining the
equilibrium price level.
• Money growth drives inflation even in the short-run, with lags of up to four quarters.
Moreover, possibly owing to extensive administrative controls on prices, the adjustment
to equilibrium takes time, with a half life of about four quarters.
• There is no evidence of a structural change in the relationship between money and
inflation. The decline in inflation experienced up until recently is fully predicted by the
model, and can be explained almost entirely by the lagged impact of the past
deceleration in M1 growth.
• The decline in inflation is unlikely to continue. The model predicts that the recent
acceleration of money growth is likely to be reflected in higher inflation after a few
quarters.

Originally Posted by Offshore-Wealth.com

Exactly,

But what I saw has no excuse, and in my opinion, are unforgivable. I'm no Saint, but that was just plain rude, crude and lude behavior. There are many grey areas we must all monitor, but come on, this person was so far over the line I wanted to reach through cyberspace and set him straight the old fashion way. By the way, I did not ban anyone, but this turkey disserved to be banned, and I never said that about anyone before.

Good luck and health to all, Mike

good point what ever happened to personal responiblity besides how would this kid know anything about us or sgs this should not be aloud under any excuse!!!!

Interesting,

For those who can watch Charlie Rose on TV, he just had an interesting show where three Iraqi jounalists were guests and they talked about everything, and I heard more good than bad, and some very interesting insight from those who I would trust more than any of our journalists. lol

Good luck and health to all, MIke

what station would he be on dtv??

Exerpts from the conclusion:

This paper shows that the problems encountered in adhering to the monetary targets Iran has not been meeting its objectives are the
main reasons for the persistence of double-digit inflation in Iran. This conclusion is supported
by the finding of a long-run relationship between the price level, money, output, the rate of
return on money, and the exchange rate.
...
These results suggest that controlling money growth(Iran continues to dump more money into its economy) is key to the success of the disinflation
effort in Iran. The stability of the relationship between money and inflation also seems to
indicate that money growth can be a useful intermediate target. The challenge, however, seems
to be how to achieve that target. The history of systematic underperformance vis-à-vis the
monetary targets calls for improving the coordination of fiscal policy with monetary policy and
clearly subordinating exchange rate objectives to achieving the inflation targets.
http://www.imf.org/external/pubs/ft/wp/2007/wp07119.pdf

Originally Posted by duck2000

what station would he be on dtv??

It was on Public Television Station, PBS, or the Sesame Street Station. (g)

Good luck and health to all, Mike

Originally Posted by Offshore-Wealth.com

Exactly,

I agree, just look at the Kurd's to see what real leadership is all about. They didn't let all this BS cloud their economics picture, and I see the same thing happening in Baghdad behind the scenes, much of what we will not hear about in public for months. Just like with us, we take the calculated risk to invest in Iraq, and so will everyone else in the end which will push the economy forward with or without HCL.

It will all be done eventually, so all we have to do is wait for the lottery drawing and hold onto our winning tickets and make sure they are tucked away safely. After seeing the dog and pony show CBI has demonstrated by reaching the 1260 mark, all is good, this shows stability, and this is what the world was waiting on before investing. Once cabinet is reshuffled, and hopefully more Kurd's are in place, we will see restoration of dinars value shortly thereafter.

Good luck and health to all, Mike

ok mike,so the fact that we see the rate at 1260 is a good sign that things are moving up?could you explain a little more detail what you mean..PLEASE!!!
Thanks,Sarah!!

Originally Posted by PAn8tv

Even if it still takes another year or two, so what, what you reap in the end will be that much sweeter. There are many in my close circle that I would like to financially help now and that is my only regret that the reval won't come sooner instead of later.

I agree there have been many things that have been accomplished and that patience will pay off. I hope my family will benefit from this because I don't think I will, it's unlikely I will be alive for more 2 years. Health stuff. Sorry for bringing my depressed state to this thread. I will shut up now.