The climate is progressing quickly into Winter wonderland here in Bavaria. Already some tourist flock into the area for early skiing and so the season begins. Just because we can’t see all the snow from the valley towns below does not mean it is not there high in the mountains.
You only have to take one of the many Bahns and you will see. It is a different world in the Alpine valleys but we knew these days were coming since we saw all the signs that this would be an excellent season of snow and cold this year.
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 last news letter of 11/7 as this news letter is a continuation of this news.
Today is Friday 11/14 and Iraq is making great progress in their new government. The major emphasis this week appears to be the continued effort for “full” Erbil Agreement implementation.
Remember the Erbil Agreement? I have mentioned this many, many times already in my news letters. This was the agreement signed in 2010 to help unify Iraq and list the necessary reforms and laws so they could join the rest of the world as a civilized society and a financial powerhouse. There is also a Unification Conference scheduled shortly. I believe this is the same meeting with ideas from the former president Talibani, now taking shape. Do you rememeber those days when we were promised this meeting would happen and then it would be followed with ...... financial reform....We can't forget these past events since they are significant and are part of implementing the long term plan. They might not have happened on schedule but they will occur.
We know also the holdup has been the Maliki syndrome (the last 8 years of nothing). He promised to implement this agreement as part of the compromise and negotiations to form the government in 2010 and seat him as the prime minister.
So now Abadi is pushing forward in a rapid pace to implement all these reforms and laws. This is still the plan and it has not changed. The USA and UN has said they are not going to allow Iraq into this civilized society unless they abide by its rules. With wealth comes responsibility. The fear is this- if Iraq does not implement these reforms then there is a very good chance they would only squander their new wealth anyhow (maybe with more terrorism) and those PTB who assisted them would not get the expected payoff they are planning on and need. We, as currency investors, would not get our payoff either.
What does full Erbil Agreement implementation mean?
Well the best way I can explain this is to have you go back and re-read a past news letter of mine where I spelled out the Erbil Agreement provisions for you. Are we now witnessing all of these provisions being implemented slowly but surely. We can check, check and double check-off all the items as done, almost done or going before parliament. This is a very exciting time for Iraq and us.
Let’s look at just some of this week’s progress:
-The oil and gas law has its first reading and the second reading is expected for this weekend. Abadi has agreed to the 150 thousand barrels of oil per day, as the needed revenue to fund the projects going forward. The Kurds and other provinces agreed that this is a doable and a practical target. This in itself is huge ! Finally they agree. This means they now have the basis for a budget. The two are so closely interconnected.
-We read article after article on the provisional governments (part of the decentralization of power effort) and how they are structuring representatives for the Federation Council and even designating provincial oil ministers into the Council to support it. WOW again!
-the banks now have the coins as the auctions prevailed. The lower denoms have been ready for distribution for months now.
-another round of Qi card payments coming up this week. How will they fund them this time around?
This will be a continuing nagging pain in the neck without a budget. Can’t have a budget unless you know what to base it off of (projected revenues) and they now have this. But it takes time to pump oil and bring it to market to make money materialize. So just how do they intent to fund this next go around of government funded payments?
This is billions of dollars.
-Judicial reforms law going to parliament this coming week for review and fine tuning. Might even see a first reading. This will be the final nail on the coffin for Maliki.
-now fully capable of trading on NAZDAQ international exchange
-announcement this week Iraq intends to “fully” implement the Tariff law beginning in 2015. Why have they not already fully implemented these tariffs? I explained this in detail out to you many months ago. The payment system is an automated system run by the IMF. The IMF automatically bills the country of origin, then the revenues are forwarded to the WTO. Funds for IMF cut are taken out, the rest goes to country of origin.
This system is plugged into the international currency exchange markets to give up to the minute exchange rates. This is how payments are determined. Since the IQD is not yet on the needed exchanges this system will not yet work. We are talking billions of annual revenue to Iraq. The tariffs are also part of the economic reforms promised by the government.
So today I send you an update of the latest news I am hearing. It is just where we want to be at this time. In fact there is an excellent window of opportunity to see the RV in the coming days, not weeks. As I have said in my previous news letter, we are in a sweet spot right now to literally see this RV in the coming days ahead. This is by far the best place I have ever seen this investment in the 10 years I have been following it.
In the past I talked about an Oct 31st target for completion of this RV process being missed by Iraq then about a new mid November target being established. Well…. we are here. It is mid November already. So let us see how this plays out.
Unfortunately I do not see Iraq as being fully ready. This is my opinion but what is my criteria may be overly demanding criteria. Who really knows. I do know that Erbil Agreement is not yet fully implemented. But then again Iraq is in a state of financial crisis.
I am hearing Iraq needs money desperately and they need it now. The RV could help in this situation. The Finance Committee of parliament has asked the CBI this week once as to why the continued delay in the project to delete the zeros. There is enormous pressure from all sectors to complete article 8 of the UN charter and get this currency back international and to a reasonable, current asset backed value.
Please do not get discouraged when some “intel guru” tell you this RV is going to happen everyday and it does not happen. This is hype. Instead concentrate on the positive events you know as factual. Look at the progress of the government and the new bright attitudes and agenda they are pushing. Then look over to the international side and see how the plans are shaping up to get them international. Then one last item is the necessity to be international and how it is so inter-connected with the entire program.
I assure you the rate will be equal to or greater than the pre-war value. The exchange will be easy and you will be happy. There will be no “rush” on the banks since the USA has over 365,000,000 people and it is projected less than 5,000,000 hold dinar. Out of that amount only about 30-50,000 are actively engaged in the news. So what we can expect at the banks is business as normal. So with over thousands of banks exchanging when the time comes, how do you see a jam up at the banks? I do not understand? Who is pumping you with this? Who is creating this “fear” factor and for what reason? What is their true intent and motive?
As I described in my opening paragraph in today’s news letter about the hidden Winter wonderland high in the Alps this same rational thinking too applies to the situation in Iraq and what progress we can see from the outside. Just because you can not see or know about to appreciate all the significant progress Iraq is making daily, does not mean it is not happening. Just because you do not know or understand the plan being carried out by the PTB to “safely” bring Iraq into the modern financial sector does not mean someone is not watching over the plan and implementing it. We know about the set backs. We witnessed Maliki and his goons and how he nearly destroyed Iraq. We witnessed recent ISIS actions of terrorism. We know that Iran had plans to make Iraq a puppet state. For each of these items we have seen failure.
Iraq is resilient and it will succeed mainly because of the enormous support from the PTB and the fact that this entire effort did not just happen. It was a well thought out plan since the early 90’s to take control of the Middle East region. Control over these vast oil supplies means power and power means wealth.
Throughout history it has always been the ambitions of wealthy nations to seek yet more avenues of wealth. Seems they get to a point and must use their existing wealth to gain military strength then the conquests begin. After all why have such big armies and navies if not for conquest? This Middle East effort is yet another conquest. A modern conquest but a conquest nonetheless. The future story lines will write of a nation born from the ashes of a revolutionary war to break off from existing powers and in a short period took its turn as the conquering hero. Remember though and be prepared…all conquering heroes eventually fall as nations rise and fall throughout history.
History will tell the story and I hope they will tell it accurately.
Maybe the plan may have wavered a bit over the years, but the final outcome will remain the same. A stable Middle East using Iraq as the platform country progressing outwardly.
We must take all this into account these past events and let the country now re-adjust and move forward once again. This all takes time.
I do know this – Iraq is now poised for something BIG? I see an explosion of revenue coming shortly. I know for a fact they can not continue on an 1166 rate much longer without self destructing. The PTB will simply not let this happen.
Then when can we expect the RV?
I believe we are in a rare opportunity and window like never before. In the coming days we should expect the RV.
Peace and Luv To Ya All,