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DINARESGURUS.BLOGSPOT.COM_________________ _______

Tuesday, December 15, 2015

BREITLING TIDBITS, 15 DEC

This is driving people nuts and I don’t know whythere was a change in the value of the dinar and people are trying to speculate what that means and what’s going on.
I’ve used this analogy before…what makes Special Forces elite and better than anybody else?  It’s their training. So whenever they have a task to accomplish they are not guessing. They have a plan a, b, c, d and e with multiple scenarios and multiple exit plans.
The reason I tell you this is that is exactly what Iraq is doing with its currency. That is the only reason the value changed this last week. It’s because they are testing the market.
But they are testing it at a very small level. Why are they doing that?  Because they don’t want to guess.  There should be a direct response on any type of movement of a currency…
It’s a test and nothing more. They want to see how the market reacts. That’s policy. The other question that’s kind of interesting is.

DINAR GURUS UPDATE, 15 DEC

12-15-2015  Newshound Guru Breitling  This is driving people nuts and I don't know why…there was a change in the value of the dinar and people are trying to speculate what that means and what's going on.   I've used this analogy before…what makes special forces elite and better than anybody else?  It's their training.  So whenever they have a task to accomplish they are not guessing.  They have a plan a, b, c, d and e with multiple scenarios and multiple exit plans.  The reason I tell you this is that is exactly what Iraq is doing with it's currency.  That is the only reason the value changed this last week.  It's because they are testing the market.  But they are testing it at a very small level.  Why are they doing that?  Because they don't want to guess.  There should be a direct response on any type of movement of a currency…It's a test and nothing more.  They want to see how the market reacts.  That's policy.   The other question that's kind of interesting is…[Post 1 of 2]

12-15-2015   Newshound Guru Millionday
   Article quote:  "the meeting presidencies Saturday evening in the presence of leaders of political blocs stressed the need to pass the oil agreement..."  THEY HAVE AGREED ON THE HCL.  DURING THIS WEEK THE HCL WILL BE VOTED IN FOLLOWING THE BUDGET VOTE...ACTUALLY EXPECTED ON THE 16TH IT MAY NOT BE SAME DAY BUT THEY STATED IT WILL BE THIS WEEK.

12-15-2015   Newshound Guru Kaperoni   The IMF will get the CBI to join the worlds money game sometime in 2016 and after that, supply and demand takes over...  It's hard to stay optimistic...But this will not fail. Hundreds of countries have signed agreements over the years to invest, and even more companies are committed to set up businesses. If you need an example just look to how busy the Kurdistan region was from 2005-2012 before the downturn and ISIS war. We must be patient and wait for it to happen. Let it come to us.  [post 3 of 3]

12-15-2015   Newshound Guru Kaperoni   So what we are seeing now is efforts to pass laws, banking compliance, etc. to create the environment for international investment. As a result, Investors and investment will come into Iraq, deposit funds through the Capital Account of the CBI and participate in Iraq's rebuilding, infrastructure and market economy. This will in fact create inflationary pressure, the result of that will NOT devalue the dinar, but will allow the CBI to raise the value of the dinarAnd as stated directly in the IMF Article IV Consultation, it's called the Balassa-Samuelson effect. [post 2 of 3....stay tuned]

12-15-2015   Newshound Guru Kaperoni    I believe some in Iraq think that the issuance of the larger notes will raise prices in Iraq and bring back inflation. And as a result allow the CBI to remove the 250, 500 (like they did the 50).  What would be left would only be 1000, 5000, 10000, 25000 and 50000.  As a result they could delete 3 zeros via LOP at 1 to $1.  This theory is not what is going to happen.  What is going to happen is exactly what the IMF stated. Which is appreciation of the dinar based on investment.  

TNT CHAT UPDATE, 15 DEC

okrocks : My one contact I only hear from about once a month… said watch for Wednesday… well that is all I have lol
elmerf123456 : Don’t be disillusioned by the market today. All eyes focused on the Fed tomorrow. Short theifs playing games today to capture some profits. Watch with eyes wide opened IMO. Come Friday the picture may look totally different.
elmerf123456 : Okie is no longer in his plane. He awaits further instructions like the rest of us. He doesn’t anticipate any further flight plans and is ready to hear the words mission accomplished!
TBirdd:  Elmer — so what was so exciting for yest./today is no longer a possibility? j.a. .
elmerf123456 : TBirrd. There you go again. Every day is a possibility but I think we wait for the fed and how things in the market pans out …..Friday has my focus for sure.
Gatorsjdc:  elmer any confirmation that the cbi is distributing lower denoms
elmerf123456 : I ‘ve heard from many sources of lower denoms being distributed but for myself, I have not yet confirmed. Personally I don’t think it changes things in our positive big picture. To much good stuff going on and I’m good with the information and upcoming events.
Herekemiah. So they got the canopy unstuck for Okie, but he doesn;t know where to go next?
elmerf123456 : Herekemiah. Waiting for instructions means waiting. Do you know where to go next? I certainly don’t and am very comfortable waiting for what will be also.
Desmo:  Tenn….didnt you have some sources last week….what do they say?
TennWolfMan:  desmo–all my sources still are saying it is done and slowly moving towards the finish line
Desmo:  So elmer…without all the crashes does that push the rv out a little?
Elmerf123456: Desmo..I don’t think anything is pushed out but I’m more interested to see what the market looks like after Wednesday and in particular Friday.
Elmerf123456:  The upcoming market setup Friday looks like it could be a major selloff day in a huge way. We shall see. IKO may be better to chime in on this but I see the Fed interest rate  causing initial problems. We shall see.
Desmo:  Elmer…were you privy to the info IKO and Art had last night about the button being attempted at 4:30 yesterday and they were expecting a second attempt last night?
Elmerf123456:  I heard this mentioned but yet here we sit. Don’t know where it was originated
CandyGirl:  Paul Ryan is at FOX news no Goverment shut down they approved the budget
Angel8:  No Gov. shut down sooo everything is a Go………….
KMan:  MarketWatch exclusive: Bernanke: I never expected rates to be at 0 for so long
Elmerf123456:  I have a feeling this will come without any fanfare or announcements. I may be wrong but I have felt this for sometime now. The good news is that dinar land in all its forums will find out and the word will get out so fast internally, no one will not know. Once your knees get back from the believable shock, you will go and do what you’ve been schooled to do. IMO.
Elmerf123456:  Anyone notice on the UN Operational rates that for the first time Zimbabwe is now listed. The rate shows 1/1 but I thinks that’s just a placement rate. I love the fact it’s now listed.
Desmo:  Sounds like another piece of the puzzle elmer
Doc:  Elmer, I think the Feds will announce the small interest rate hike. If so, does that do anything to speed up or slow down the RV? Thank you for your insight.
Elmerf123456:  Doc. I think the interest causes market havoc and helps us.
cloudWalker: Saw this quote and thought it was apropos: “Being realistic is the most commonly traveled road to mediocrity.” – Will Smith
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Iko Ward:  Wow, the markets sure seem happy about something. Even crude is marching toward 37. And gold is stable. And Yes, I saw Zim listed as well. Sure am glad I don’t place bets on all this stuff.
Elmerf12346:  RIAL 214.5000 ZAMBIA – KWACHA (NEW) 6.3750 ZAMBIA – KWACHA (OLD) 5455.0000 ZIMBABWE – DOLLAR 1.0000 Department Of the Treasury Bureau of Fiscal Service Division of Federal Investments (202) 874-7994
NoNo:  WOW – Iko, that link shows a ZIM rate of 1.0000 whew, things are certainly changing…
Elmerf123456:  One list states Zimbabwe and one Doesn’t. Fits in perfectly with dinarland confusion.
Iko Ward:  Careful about that zim rate, folks, it’s probably just a place holder, or an asset backed assignment. Doesn’t mean your one trillion notes are worth one trillion USD.
Elmerf123456:  IKO. I stated that earlier. That’s correct.
NoNo:  Iko – I knew that, was just making note that its CHANGING.
..
Iko Ward:  this should go into rumors so people don’t go nuts.
TightWad:  Out of curiosity – why do you think gold gets driven down to $450 when the world is trying to go on the gold standard? When there is how many times more printed money than there is gold?
Iko Ward:  tight…”The gold standard” is misleading. The world is going to “asset” backed, which includes not only gold but all the resources a particular currency has…gold, silver, platinum, agricultural products, armed forces, brain trust, etc.
AllStar:  IKO. Did they try to push the button again yesterday?
Iko Ward:  Allstar…don’t know.
BadScott54:  IKO I have tried to help others to understand this is a process. It is not as simple as pushing a button. I think that has been said so much until some really believe it’s that simple . We are in the Process
JumpinJackFlash:  Well hopefully this “Process” will have a conclusion…and may it be soon!
U.S. stock index futures were higher on Tuesday, ahead of a widely expected increase in interest rates later in the week, as crude oil prices clawed back some losses.
CANADA STOCKS-Futures rise as oil recovers; Fed remains in focus
Mexican stocks open down more than 1 pct, hurt by lower oil prices
Hong Kong’s main index ends lower for the 9th session ahead of Fed
Nikkei ends at 7-1/2-week low on oil price worries; Fed jitters
Greek prosecutors investigating tax evaders raid UBS office
U.K.: European shares led higher by firmer French stocks
Gold steadies as dollar retreats, eyes likely Fed hike
The Fed begins meeting Tuesday, and will release its post meeting statement Wednesday at 2 p.m. ET.
The central bank is widely expected to raise the fed funds rate by a quarter point Wednesday, while emphasizing that the pace of tightening will be gradual. A hike would be the first since June 2006.
U.S. stock index futures recovered earlier highs after the headline November Consumer Price Index (CPI) came in unchanged, while ex-food and energy the figure rose 0.2 percent.
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The Fed’s New Chapter Will Be Written in Dollar-Denominated Oil
This week, Janet Yellen will present the very first few lines of a complex monetary narrative.
Timothy A Duy
December 15, 2015 — 3:04 AM PST
The Federal Reserve is set to raise interest rates this week for the first time since 2006.
The final days of the zero interest-rate policy known as ZIRP are upon us; the end is here.
But the end of ZIRP is the beginning of a new chapter of monetary policy. This chapter will tell the story of the Federal Reserve’s efforts to normalize policy, and that particular tale has yet to be written. You can, however, expect Fed Chair Janet Yellen to emphasize “gradually” and “data dependent” as she pens the first few lines of the narrative at this week’s press conference.
Policymakers have clearly signaled that the U.S. central bank will raise the target range for the Federal Funds rate by 25 basis points this week. To be sure, this does not mean that the U.S. economy is without its warts. The labor market is not quite at full employment and the external environment is dragging on growth in general (and manufacturing in particular), while inflation remains stubbornly below the 2 percent target. Yellen & Co. are confident that these issues are transitory in nature………….
I have my eye on the dollar and oil as key factors in the path of subsequent rate hikes.
We know the Fed anticipates that the disinflationary impact of these factors will lessen as the year progresses…………

TNT : ZIM on UST by IKO WARD, 15 DEC

https://www.fiscal.treasury.gov/fsreports/rpt/treasRptRateExch/current​Rates.htm

The Zim was just listed on the UST site this morning. It is still not on the UN site, so once again we have conflicting info. DO NOT take the $1.00 rate as solid. It might be just a place holder. Let's see what the day brings.

Once again, the markets are crazy. Europe went from a -2% down yesterday to over a 3% plus today. That's a 5% swing. That's big, especially when the pundits are all calling for a crash on Friday when the PUTS come in.

So things are pretty wild right now. Yellen has to announce the new interest rate. Bonds are due. Banks are reconciling. The PUTS are coming. Exciting...yes. Are we in the banks? No. But it still bares saying. Dinarians are in a good place no matter what.

Best
Iko too-tall just posted this rate has been on this site for a while. The header shows a date of 9/15, so maybe the whole thing is a false alarm, but best we post hear so the rumor mill gets squashed quickly.

TNT by SKIRACER: DINAR EXCHANGE RATE SYNOPSIS, 15 DEC

In light of the suffocating financial crisis plaguing the Iraqi economy following the sharp decline in oil prices, experts and concerned parties are discussing the most appropriate option to fix the exchange rate.

Summary⎙ Print In light of the decreasing oil prices that led to an economic crisis in Iraq, the Iraqi government has been discussing options to reduce the dinar-dollar exchange rate.
Author Zakaa Mokhles al-Khalidi Posted December 11, 2015
TranslatorCynthia Milan
The Iraqi parliament had discussed the possibility of reducing the dinar-dollar exchange rate by 10% to reach 1,300 dinars per dollar to supply the general budget with 5 trillion dinars ($4.2 billion), or by 20% to reach 1,400 dinars per dollar to supply it with 9 trillion dinars (about $8 billion).

There is no doubt that a reduction of the dinar exchange rate would provide additional resources for the general budget. It will increase the quantity of Iraqi dinars obtained by the Ministry of Finance in return for converting into the dinar its oil revenues or foreign loans it received through the Central Bank of Iraq in dollars.

However, this method increases government resources at the expense of citizens. The losing parties are ordinary citizens, especially those with limited incomes. The purchasing power of their income will drop, especially with the rise in prices of imported goods. The creditors in local currency will also be affected, including those holding Iraqi treasury bonds.
Moreover, Iraq’s almost total reliance on oil revenues, its poor resources such as goods and services other than oil, the existence of financial investments abroad and large foreign reserves and the high cost of external borrowing all indicate a lack of available options to address the current shortage of government foreign-exchange resources. This means that the only solutions are cutting spending, trying to increase some types of direct taxes and fees and issuing treasury bonds in the local market.

The Iraqi dinar’s exchange rate was equal to $3.30 before the outbreak of the Iran-Iraq War. Then $1 became equivalent to 3,000 dinars during the economic blockade from 1990 to 2003. Anyone who has followed the dinar will realize that the problem lies in the difference between the dollar’s supply and demand and the dinar’s supply and demand. It is a simple equation that controls not only the currency prices, but also the prices of all kinds of goods and services. So, for the state to control one side of the equation, it has to control the other side to ensure that the exchange rate will be stable.

When Iraq’s oil resources were limited before OPEC first raised prices in 1973, the country relied on the currency law, a remnant of the gold standard. This law necessitated that 70% of exported currency be backed with gold and foreign currencies to control the dinar supply through government spending. After the Iran-Iraq War, the currency law was abolished, disturbing the balance between the supply and demand of foreign currency with increased military and civilian government spending.

The government allowed the private sector to directly import goods from producers and sell them at prices that were not subject to its control. Thus, there were two exchange rates: an official rate that maintained the $3.30 price and was used for official expenses, and a parallel rate determined by the supply and demand of foreign currency. The difference between the two rates widened in the wake of the economic embargo on Iraq in 1990. As a result, the parallel exchange rate rose to 3,000 dinars at points.

After the occupation and after the export of Iraqi oil was allowed again and deposits were unfrozen, Iraq was expected to undergo monetary reform, whereby surplus banknotes would be withdrawn from circulation. However, it used the daily currency auction, in which specific amounts of dollars are sold to the banks and the private sector to meet the domestic demand for foreign currency, especially for the purposes of importation. The steady increase in oil revenues led to a gradual improvement in the exchange rate until it reached 1,220 dinars to the dollar.

Many politicians and analysts believe that the daily currency auction is a way to smuggle the dollar through private banks under the pretext of importation, and their criticism has increased in light of the current financial crisis.
The question asked by those concerned in Iraq is: Does the daily currency auction have to continue despite the claims made about it? Or should we abandon it and turn to other means so that the process of buying and selling the dollar is free, without restrictions, as some suggest?

Choosing the appropriate exchange rate for any state is a critical scientific process that depends on the state’s economic and financial situation as well as its economic ideology. The states that choose a free floating exchange rate for its currency and make its buying and selling a free process without restrictions are usually powerful, developed economies that have important and multiple foreign currency sources and currencies of importance in international trade and investment flows, as well as large reserves of international currencies.

To preserve the exchange rate, a country that pegged its currencies to a foreign currency such as the dollar or to a currency basket has two options. The first is to have large foreign currency and gold reserves to support the pegged exchange rate when necessary, as the GCC countries do. The second is to maintain the exchange rate through the management of the monetary authority, which influences the factors determining the demand for foreign currency. This is what Iraq was doing prior to the first oil boom.
Presently in Iraq, the government does not have an official Iraqi dinar to dollar exchange rate, or a currency basket. The $3.30 exchange rate is no longer used for any currency, although it has not been officially canceled.

Accordingly, in light of the limited foreign currency resources and difficulty to go beyond oil resources, it is imperative that the state manages the current exchange rate through the development of a foreign exchange budget by the Central Bank, which will determine the allocation of imported goods, services and transfers without charges.
This way, it is possible to maintain the current exchange rate's stability and to limit expenditures in foreign currency to the available resources until the circumstances are favorable for monetary reform and the adoption of an appropriate official exchange rate.

EMAIL OF MARTHA, 15 DEC

It's 6am and I've done my rounds and ironically it seems  very quiet in the finance world. Europe markets are in the plus, Asian markets are status quo and it is too early to see what could really  happen today.

It is highly possible that this is going to happen very quietly.
My reasoning is that China does not want to flood the market with enormous amounts of asset. It has not been an easy road traveled for the world.  The road blocks have been many.
The traps have been set for those who still feel the "money game" is a betting deal. The financial world is falling for it hook, line and sinker.


Now the equation gets stronger for today. Positioning and what needs to happen and it may depend on behind closed doors today at the Fed and even Congress.

If the RV happened over the weekend, the Fed will answer on the 16th as well as Congress will have a budget in place and no furlough will be implemented.


 Now, the Fed is still in a bad position. There are some analysts who don't see interest rates doing anything till late 2016 and there are those that see a 0.25 rate increase.


As of this morning, the USD is losing ground which is actually a good thing. The dollar has always done better at .86 range. This is outside the country and will remain 1.00 in country but now with more buying power but that's a whole other lesson.


Oil is hovering in the 35.00 range.  Interesting that we bought Iraq oil at 38.00 per barrel and China bought oil at 20.00 per barrel. This may put ISIS out of business and change the outlook for OPEC.


Now gold, is it a controlled drop? I think so but going down to 800 isn't going to happen immediately. There are those who have been manipulating the system no longer, and China isn't about to "dump" obscene amounts of gold into the system in one large deposit.
I would say that is unrealistic. We are hearing that their plan is to filter it down to create a balance so no one country will have total control thus establishing a new gold standard.
Is the basket of currency just going to  pop?

The currency dealers are truly seem oblivious to what will happen. They've been dumping yuan all weekend. Now who does that make sense to.

Now,we hear from many sources that the new USN's are being released today and who is releasing them? US.


We also hear another bond is being released on the 16th but will be used for the pp's but I can tell you that our assets have been in the banking system for awhile. Remember we are paralleling the packages as to release.


And one last note, Iraq is to start collecting tariffs starting today. Many sources say that the  LD'S are out and being used and tariffs deal in the international rate (hint hint)
Like I said the day is early and the timing points to today so we continue to watch as the Chinese  fireworks come to a finality.

POPPY3 TIDBITS, 15 DEC

I FULLY EXPECT TO SEE A NEW RATE TO SHOW THEN THE AUCTIONS TO STOP THE NEXT DAY.
WE WILL SEE BUT A 24 HOUR PERIOD MAY BE LONG ENOUGH.
IF I REMEMBER CORRECTLY DR SHABIBI BEFORE STATED HE WOULD NEED 3 DAYS TO CHANGE?
IN THIS CASE DON’T KNOW IF THAT STILL APPLIES?
[Do you really think this could be the end of the line for our investment? Meaning an RV this week.]
I SAID A MONTH AGO BY JAN 1 … I STILL THINK THAT IS RIGHT.
NOTHING NEGATIVE SINCE I STATED THAT ONLY BETTER INFORMATION.
WE ARE CLOSER DAILY NOT STATUS QUO OR NEGATIVE ONLY PROGRESS.

KTFA CC PLAYBACK LINK, 15 DEC

Monday Night Conference Call
The first part is Business Promo and the second part is Dinar/Iraq Intel
PLAYBACK #: 641.715.3639, PIN: 156996#
Approx. 128 minutes long

MARTHA UPDATE, 15 DEC

If it is to happen soon, I don’t see any action until after 12 midnight our time with multiple venues flipping switches.
We are hearing that China would be the one to light the fire/trigger but must be careful not to flood the system too fast although a crash is indicated in stocks, bonds, currency and commodities.
The confusion would abound but IMO it would sure be a great time to slip in a RV/GCR to save the world from a failing financial system. Only time will tell.
All signs still point to Tuesday 12-15-2015
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Draghi: We’re ready and able to intensify QE    http://www.cnbc.com/id/103239196
Is he ready to take the heat for the death of the Euro? 20 countries will say good-bye, not to membership but to a currency that has no hope of surviving amongst countries that will use their own.
A sovereign country should be able to handle its own currency for that very reason.

TNT CHAT UPDATE, 15 DEC

Uenvoy : Went to my bank today and spoke with the Foreign Exchange person.. Did you know that all Wells Fargo now have a Foreign currency person onsite, for all the big banks in your area. She told me that Wells Fargo spent millions to get everyone trained before the new year. And that when the time comes she would give me a call. Now that is confirmation, if I do say so.
flybaby777 : Art (on open mic call) also said Reno should go tonight also … and peeps notifications out tonight/AM .. and sanctions be lifted in 1-2 days for rial to be reinstated… not going in basket it’s a ri and can go when sanctions lifted
Dinera:  Art is Artmiester from the Alabama Calls. Alabama stopped doing calls but Art still has many contacts and he is sincere and always says it is rumortell until it happens.
[LAS] Iko (on open mic csll) – Asset back can be explained by “shift in buying power”.
its as if you are going back to 1970.
Asset back is a abstract thing to get comfortable with…
Asset backed…the country’s asset whether it be corn, gold, minerals, military might, brain trust, etc
he (Iko) sure is looking for it to go tonight…markets are looking for this today
[Sallypuff] LAS – I don’t know how they can add much more positive news on OM than what you already posted. It certainly looks like we should either see this tonight, or tomorrow or NO later that the 16th.
LOU: IKO had the same Intel as Art about the attempt on the RV around 4:30 pm today. There has been a short delay and they will try again. IKO is expecting this tonightGator: I pray IKO and Art are right.
calgoldy : I thought I recalled that someone said last wk that Artmeister had some high up contacts….can’t recall…in Gov’t or something
flybaby777 :  calgoldy…. your right he’s the one elmer said was having big meeting w/okie
[LAS] Iko expaining parity – everything is going to be equal
[LAS] Caller on OM – asset backed is smaller numbers having greater value.
[LAS] Caller – how is this going to be explained to the 300,000,000 others? Iko – lower prices, spin by leaders, real estate is a stickler
[LAS] Mod – parity, parity, parity.
[Sallypuff] This is a repeat for those who can only see current posts, and can’t scroll up. jumpinjackflash wrote 2m ago Ole…IKO and Art said an attempt was made at 430 and they will try again tonight possibly in the wee hours…they are both in agreement that it could go tonight.
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Rrrr:  “If you build it, it will come”. It has been built! It will come without all the judging, blaming, analyzing, miss-informing, complaining, and negative comments! Seize this Moment of RV. It’s a truly magical moment. Be in awe that you were chosen to receive this Blessing. Don’t try to touch it. Just feel its presence. Don’t try to understand it. Just know that it is here. No questions, No doubt. When the time is perfect, the universe will Break it Out.