I come to you today to give you a quick update on the progress of the new government and how this relates towards the international rollout of the IQD for Iraq.
Today's news letter, as in all my news letters, is a continuation of the ongoing saga of the IQD RV process. Please refer back to my news letter of 9/13 (LINK) as this news letter is a continuation of this news.
Today is Tuesday 9/16 and this week Iraq needed to vote on the remaining 6 ministers that were placed as “proxy” ministers for the initial confirmation voting process by parliament last week. Again today we witnessed a vote on the permanent replacements for these ministers.
The House of Representatives ended its meeting held this afternoon after the non-approval (rejection) on candidates of the Ministries of Defense , Interior and Tourism as presented by Abadi.
So 3 of the 6 ministers are still not permanently seated. Two of these are critical ministers for Iraq and must be seated. Are we going to experience what we saw from the 2010 election all over again? Remember the minister of Defense, Security and the Interior remaining in proxy positions throughout the total 4 years of Mailiki’s GOI.
Parliament is scheduled to vote again on the replacement candidates in a couple days from now or next Thursday 9/18.
Budget Update –
Parliament was supposed to do a first reading for the proposed contingent budget for the remaining of the year 2014. It too did not happen today since the budget was not yet forwarded from the GOI to parliament in time for the session. I am telling you again as I have said this many times already – we will not see any finality in this next budget until the RV is completed and they have a new international rate to their currency. They will continue to still until that time.
Petro-Dollar Lives On
There is much talk too that the Petro-dollar is dead. How is this effecting the IQD RV? Will it ever die?
Many have been looking down the wrong rat holes for clues as to why this hold up on the revaluation of Iraq’s currency and bringing it back to an international status. One only has to look at the real reason why the USA invasion happened in the first place to understand when it will be restored.
I believe there is some significance to these statements about the dead petro-dollar however I want you to look at it this way too. First fact is that the USA is not going to lay down and give in that easily. Not when they took the lead in the coalition for 2 gulf wars and spent countless billions in the effort. Using USD for oil purchased creates a huge demand for the currency and inflates it’s value.
Remember there is no real tangible increase in assets backing it on an oil sale other than the forced use of it, thus artificially creating a demand for it, thus rising the value. Supply and Demand – simple macro economics. Do you remember this from your economic class? This in part has been shoring up the value of the USD and keeping a major crash from occurring since the USA seems to be overspending and constantly borrowing money to run its government. How long can this continue?
So the issue is not whether the Petro-dollar will go away. The real issue is how can they prevent the downfall of the Petro-dollar without crashing the USA economy?
This issue with Syria, Russians in Ukraine, now ISIS and the reason USA invaded Iraq in the first place is all about maintaining the Petro-dollar. It always was and will continue to be. Saddam and then Maliki did not support the Petro-dollar and wanted to trade oil for the country of origins own currency. We know Saddam was supported and placed in Iraq solely for this purpose by the USA. We read article after article of Maliki’s deals with Russia and India over oil purchases and how he too wanted to circumvent the Petro-dollar. This is why he too had to go. I will pose some questions for you to think about.
How did using USD for oil all begin? There is no logical reason as to why not to accept other foreign currencies for oil other than knowing a bit of history behind it. The currency standard of using the USD for purchasing oil was needed during the great depression. At this timeframe the USA was the most stable of all the countries and so the USD was agreed to by the world leaders to be used in place of gold as the medium of exchange. Kind of like an I.O.U.
So the USA was weaned on this artificial demand (like a mother's tit) for its currency and like a baby getting used to being fed, the USA got used to these added benefits on its currency. These demands soon became a dependency and hard to give this up, especially in hard times like the world’s economies are now experiencing.
The world's economies are changing. The transition to a world not dependent on the USD is hard to do. We are experiencing that right now. Will it ever happen in our lifetime?
This too is part of the contention as to the USA manipulating the currency revaluation process of the IQD and subjecting it to blackmail as reasons why it is being held from the global finanical community. Let me explain further.
This story can get complicated real fast and so I wanted to make this new letter today brief. I will try to explain in a compacted, less complicated version. The history of all this mess can be easily researched on the internet so I encourage everyone to do so to learn more about what is holding up the IQD revaluation. This is why the USA wants a “stable” government in Iraq. Stable for investors but also stable so that it will be able to partnership with the USA in these future oil exports. This is also part of the hidden agenda in the Iraqi HCL and to why the Maliki GOI would not fully implement it.
If nothing else remember this – G. W. Bush and Cheney came up with a plan to ensure long lasting wealth of the USA. It’s called “The Plan for the New Milllenium”. Go research it. It is on the internet for all to read. I am not discouraging this plan nor supporting it. I am simply informing you.
It is all predicated on controlling the oil resources of the middle east (thus the energy resources). With the advent of the fall of the Soviet Union they saw an unprecedented opportunity to gain full control of the energy resources of this planet. Remember the Soviet Union, as does the current Russia has far reaching ties with the middle eastern countries of Syria and Iran (an others). The theory behind their plan was the simple fact that if you control the oil you can control the global wealth of any nation dependent upon it. So essentially you control too their destiny. The golden rule of the survival of any civilization has always been and will always be based on the availability of the sources of energy necessary to run it. Now look at the sudden uprising of Russia. Why do you think they are all of a sudden causing so much confusion and chaos in the world? Read my lips – it’s about energy and how they do not want the USA to dominate in this area.
So if you want an underlying reason for the foundation for all the turmoil in the middle east it is all about the oil. It is oil wars plane and simple. Future history books will write about these days, as we are living them now. The transitionn days for the USD and global impact. Any revaluation of the IQD will be based on the USA having its way in the area and maintaining the Petro-dollar, at least for the present time. Do you get it now ?
Another piece to the puzzle I have just shown you. Are you listening?
At the conclusion of all my recent news letters I have repeated asked the question “Then when can we expect the RV”? I have told you and I am telling you again at the end of this news letter too. So let me paraphrase this another way for you.
So when can we expect the RV?
When the USA has assurance that the Petro-dollar is going to be used to exchange oil within Iraq without any interference from neighboring countries. Does this only apply to Iraq? YES and No - Yes but for Iraq as we are only concerned with their currency RV but No for other oil generating countries. Remember the middle east is not the only oil generating region in the world.
So you wanted to know who is holding up the RV? You tell me now since you now know what is going on in the minds of the PTB.
So today’s news is not very good news again. We wait once again for the controversial Defense and Interior ministers along with the other couple ministers to be seated.
We anxiously await ! yes - its a waiting game again.
After this is completed we will see what impact this has on the RV process. We are still being told they do plan to finally roll out the revalued rate to the international community at this time. We shall see.
I wish I could bring you some good news today. The news coming out of Iraq is very slim right now, as they struggle to get these last ministers seated. Remember they have already presented to the world that this was all completed.
Let us also not lose sight of the 27 demands as part of their Unity Plan now in progress. Many of these demands have a 1 month implementation timeline so we could see much progress by mid October in this area. A couple of these demands are 1) the full implementation of the HCL law and 2)another is the final settlement of the disputed oil rich provinces of Article 140. Go figure !
There is also news from my contact that the CBI is working closely with the banks to train their personnel on upcoming exchange practices. Also the news media in Iraq broadcasting that the currency reform is imminent so we have to ask ourselves what is going on. Something big seems to be brewing and is just beyond the horizon.
Then when can we expect the RV?
All I will say is what I have been saying all along we wait for a formal (global) announcement to the public that the Iraq government is now fully formed and seated. Many of you asked me if a formal, public announcement is necessary and the answer is a big fat YES.
I want to emphasize once again this final announcement of the IQD going international will not happen until the USA feels the Iraq government is stable, non-sectarian and is a functional government. This is has been the plan all along. They may have wavered a bit on how the plan was implemented but the overall plan guidelines have not changed.
Peace and Luv To Ya All,