Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by Inscrutable

Can of coke. 1000 dinars. sandwich 1500 dinars. Full cafe prepared dinner 4000-5000 dinar, includes beverage.

This is from a lady I chat with who is Iraqi.

Well, if this is true then the dinar would be over valued as a can of coke = 50 cents that means the dinars actual value should be 2000 IQD = 1 USD
If you value a can of coke at $1.00 as it is in some larger U.S. cities then the dinar should be valued at 1 usd = 1000 IQD.

What we really need to look at are several items such as big mac, Coke, Pepsi, Whopper, KFC, Nikes, Ipod, so we can get a feel for actual values in Iraq vs. US.

I have a question for wm.knowles.

I am not experienced in the complex economy.

At this moment the CBI is pulling out money from circulation and that is good.
We see a small increase in exchange rate and it would reduce inflation.

There is 76% inflation right now.

I know it is difficult but do you have an opion to what level the Dinar must rise to curb the inflation and increase the purchasing power, I think this is not possible with 1:1000?

We also read today that there will be a 60% raise in salary. From experience in 2003/2004 this have lead to extra inflation over a longer period. I also read 2 articles about it, that it is a short-term solution only but will lead to inflation on the mid-term/long-term.

Is this article BS to prevent further speculation (as we also have read about the auction) or could they do this if the Dinar is revalued?

I appreciate your opinion on this!

Originally Posted by Ranger III

While I agree with most of what you say, I don't quite follow the underpinning to your treatise, which as I understand it, is that an r/v will not work as well under Maliki as it would under a new and stronger leader. This may be true to a certain extent, but if you were Maliki wouldn't you try an r/v?

Military force has failed miserably, religious leadership has failed even more
miserably, new political action since May and June has shown a few glimmers of hope - but Iraq's leaders have yet to try a serious jolt of financial/economic medicine such as an r/v could possibly administer. The Kurds are leading the way here. Their real estate values are rising significantly; their economic activity is improving quickly; their unemployment rate is down; and they are even talking about tourism for God's sakes.

An r/v could jump start the whole ecomony, reduce unemployment in a big way (which I think is the key to moderating the sectarian violence) and
make Maliki look like a hero.

I know Maliki can't order an r/v by himself, but he still has a lot of power.
And if he knows what's good for him and his country, he'll find a way to make it happen soon.

Exxon, Shell, Chase, BP, HSBC, Bank of America and others are chomping at the bit to get into Iraq. All they need is the enactment of the FIL and Hydro-Carbon Law, and they will be streaming over the border.

Iraq's leaders are fiddling while their country is burning. Install an r/v, followed immediately by enactment of the FIL and Hydrocarbon Law, and
just sit back and watch Adam Smith lead the country into prosperity.

I am in no way disagreeing with a r/v improving Iraq's situation. My point is that Maliki's govt seems so weak and unstabil that the powers that be ( NWO ) might want to wait until things improve on the ground. Just think for a minute of the unthinkable, If the terrorists/radicals win the battle for Iraq and there is a r/v to the tune of lets say 1.47 = 1 dinar, then with that kind of money and the world's largest natural resources at their disposal, what kind of damage could they wreak?? How many WMDs could they buy, how many future terrorists could they train and equip etc.? IMO One thing for sure is no nation on the face of the earth wants Iraq to fall into radical hands (except the radicals of course). I am not saying for sure it is going to happen this way, but I do see some logic behind them waiting until either Maliki has his ephiphany and does the right things right away, or they install his replacement. This isn't what I want, but unfortunately I think it is worth considering.

worf

ps If I were Maliki I would have r/v'd months ago. Only the Lord knows why he has let the carnage, suffering, and mayhem to continue. I agree it only makes sense to sign the various legal documents for foreign investment, stop the death squads r/v the currency and get out of the way as the locomotive of 21st century investment shifts into high gear!!!! If he would of r/v'd months ago, he wouldn't be in near the dire circumstances he finds himself in currently and the rebuilding of Iraq would have already started in full swing. IMO

76% inflation is "only" 6.333% per month. Crazy as it sounds, the inflation rate in Israel when a colleague moved from there in the early 80s was 40% per month! I never heard that Israel was poor and people were starving. There's always more than one factor involved in economic situations.

Originally Posted by greatstuff

76% inflation is "only" 6.333% per month. Crazy as it sounds, the inflation rate in Israel when a colleague moved from there in the early 80s was 40% per month! I never heard that Israel was poor and people were starving. There's always more than one factor involved in economic situations.

I am not so sure the 76% is annualized for everything. I remember reading some articles that mentioned electriciy, kerosene, gasoline etc. doubling in a short amount of time. With the winter coming up, they had better hurry up and do something (like r/v now!!! ) IMO

worf

Originally Posted by Mike5200

I think what indman01 was getting at is what is the price of a Big Mac in Bagdad.

ok, 5796 dinar if you don't super size............

Originally Posted by Original Spiderman

Suz,
I agree, we and Iraq are sitting on more potential than can be discribed, but this thing is far beyond what we consider normal rational. I know we will eventually get there, but in general these folks have a whole different perspective on the world. Many would make a prided based descission, which are ususally what we consider crazy (suicide bombing), than to forgive, move on, florish and prosper. I have many close friends in Kuwait and Iraq, and if you ever discuss things like world politics and religion with them, you would think they were living on another planet. They are convinced that the world is conspiring against them and underneath every rock is a Israelly, plotting to get them. Even folks that have better sense even sympathize with some martyres. I mean they think that Hitler has been resurrected in jewish form. Thus many don't trust enough to forgive and except peace. The iraqi government is stuck in the middle; attempting to do what maybe impossible. They have to balance between the western perspective on what is right and cultural norms that have been in place for a millinium. Sadam was a madman, but that's what kept the vulcano from erupting. Shucks, it took us 200+ years to make the progress we have achieved in the US, and we still have a ways to go. Iraq is try to do it in 3 years? I really hope that things get better, and I think a sizable reval would help but the mindset is so deeply embedded and the propaganda is so pervasive, it's going to take some doing.
SGS you are my Rah Rah Momma . Your optimism keeps me centered. Please keep up the great job!

Exactly correct,

That is what most people miss, the mindset in Iraq and region is beyond our comprehension from the west. That is why we are now hearing what a disaster it was to go into Iraq, for just like in Viet Nam, the U.S. failed to try and understand the unique belief system which is so opposite ours. We value life, they value death, you cannot use traditional war to win this battle, this is not possible as we all now see.

Always nice to see opinions of those who are in region and I appreciated your excellent perspective on why we are seeing what we are. It is almost impossible to see the U.S. winning as Bush would like to phrase it, no one wins in a religious war, it just goes on and on forever, just as it has in many other countries, so forget more troops, this is not the answer. As we are now seeing, opinions are shifting to the more reality side of issue, get out is the solution we are now hearing with democrats in control of house and senate. Now we hear Charlie introducing draft again, now that is going to shake up people real fast.

As I see it talking to my contacts, there is only one solution, and it is not what the west or neighbors want to hear, but it is the only way it will work. You need seperation, for just as you stated, these people never forgive, nor do the forget, so seperation of sects is only solution. Yes, you have the same consitution, the same laws, shared oil wealth, etc., but it is time to get real and institute regions where people have a choice which side of the road they want to live and work on. This is what the people in Iraq want, I know the Kurd's do, and the shiites do, so it is the Suni power which is why Baghdad is such a disaster, as Tony Blair let slip out the other day. The first thing that should be done is payoff everyone on the first installment from oil, and hang the carrot out there that if anyone is caught supporting killing and bombings. they and there families lose this oil share income. Money talks, always has always will, so give everyone enough to move to wherever they want, and then warn each faction to honor their borders, and the majority of problems and killing will end.

Good luck to all, Mike

Originally Posted by greatstuff

76% inflation is "only" 6.333% per month. Crazy as it sounds, the inflation rate in Israel when a colleague moved from there in the early 80s was 40% per month! I never heard that Israel was poor and people were starving. There's always more than one factor involved in economic situations.

Maybe it was. But you are comparing Iraq of now with the Israel of the 80's.

I think that is comparing an apple with an orange.

Poverty is 60% right now (maybe more). If nothing will be done this country is total poor.

You are right there are always more factors involved. The factors of Israel were I think certainly different than the factors of Iraq right now!

Did we know about last Monday?

Officials from donor countries met in September, for the first time, then representatives of 75 countries and international organization met once again last Monday at the United Nations to discuss the draft Charter and plans to ensure the provision of aid.

American Treasury: the donor countries will meet in December | Iraq Updates

The Commission agreed to amend the Constitution to work

(Voice of Iraq) - 11-20-2006
This issue was sent to a friend

The Commission agreed to amend the Constitution to work

Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

Sami military member of the Committee on the amendment of the constitution, the Iraqi united Iraqi coalition that the committee held its second meeting today, Monday, which was agreed to by the work of the Committee during the next period.

He added in a statement to the News Agency (Voices of Iraq) Independent that it had been agreed during the meeting on the classification of constitutional issues that will be covered by the amendment into three sections, "The first and most important is the political issues include the regions and the distribution of wealth and nationalism."

The second section with respect to language and modifications to the terms and vocabulary and corrections. The third section is supplementary section, which examines issues not contained in the Constitution.
He pointed out that the Military Committee agreed on the allocation of the first month of work to receive the observations of academics and civil society organizations, in the light of the ideas presented will be formed subcommittees to discuss those ideas and perceptions.
He said that the third meeting of the Commission will be held on 29 this month.

A meeting was held today under the chairmanship of Dr. Hammam Hammoudi Chairman of the Committee and in the presence of most of its members.
The Committee will review the terms of the Constitution of contention for a compromise formulas, which are supposed to end by lifting its report to the Parliament, four months after the first meeting, which was held on the 15th of the month of November November And a committee was set up to amend the Constitution during its first meeting of its presidential through consensus among its members, has been selected as Sheikh Humam Hamudi (coalition consolidated), Chairman of the Committee, All of Dr. Iyad al-Samarra'i (Accord Front), and Dr. Fouad Massoum (Kurdistan Alliance) as Vice-President.

The parliament of Iraq in late September last agreement between the main parliamentary blocs provides for the formation of a committee to reconsider the clauses of the Constitution currently in force in the country.
The resolve issues where compromise and not vote.

The agreement stipulated that the number of members of the 27-member, coalition common share of (12) members, The existing five Kurdish members, and compatibility four, two members of the Iraqi list, and one member of the list of national dialogue, The member representing each of the components of the Iraqi society and the Turkomen and other Almsehun and Alaizidion.
The Committee will make the necessary adjustments to the number of controversial articles of the Constitution, where Article (142) of the Constitution to be amended some of its articles in the first four months of the commission's first meeting.

However, Humam Hammoudi Chairman of the Committee, following the first meeting of the Committee that the Committee's work is four months. As planned, However, in view of the holiday Parliament, which will affect the work of the Committee. The length of time it will take approximately six months, starting from today (15 this month) and ending in mid-May of next year 2007. " U p

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