Sunday, November 6, 2016

November 5, 2016 Mnt Goat News Brief

November 5, 2016 Mnt Goat News Brief
Hi Everyone,
Emphasis now for us is still the progress of retaking Mosul and then moving towards currency reform. The fighting in Mosul worsens as the Iraqi forces move in on the last of the ISIS strongholds and are now going door to door flushing them out. I still firmly believe the full announcement of success will come prior to the 2016 election voting process in USA and that event is VERY close at hand. Just my opinion…..
Today we also have lots of WOW news.
An update on progress and motivation of Iraq to join the WTO. We know they are working very closely with the IMF, World Bank and the WTO to put in place all financial and economic reforms. Why put all these reforms in place if not for a purpose. Certainly we know it is time for Iraq to move out of their “closed economy” and join the “global economy”.
Also I bring you some more WOW news today. Let me explain,

But first let me lead up to the good news as you must understand first how the economy of Iraq is now working. I will recount how this works since many seem to forget.
Yes...many of you readers have VERY short memories!
If Iraqi merchants want to purchase goods or services from foreign countries they must pay in US dollars only since Iraq is now in a “closed economy” due to sanctions (so they are notreally out of sanctions as of yet contrary to the 2013 announcement).
So if they are in sanctions and thus under article 14 of the UN charter, then how can they pay for foreign goods and services if they are prohibited from using the dinar outside the country (for fear of funding terrorists with it)? So they must use dollars instead and this was the system set up for this purpose...the currency auctions.
So how do they get the dollars to transact this business? They go to what they call the CBI currency auctions and exchange dinars for US dollars. Essentially they go to any state run bank and go to the window marked "CBI currency exchange". They ask to exchange dinar for dollars and must show paperwork of proof they have legitimate business and need to pay foreign debtors.
This leads to much funding of the terrorists namely Daesh/ISIL since much of this paperwork is falsified.
How do they know its falsified?
They don't at the time of the transaction at the bank and this too is part of the problem. But by the implementation of the customs and tariffs law Iraq is now able to track goods and services coming into Iraq. This is one reason why it was so imperative to get this law completed. Do you remember this law and how they had to rush to implement it? Also some provinces did not want to implement it and follow proper record keeping. We say many articles on this. Go figure why?
So in following the proper customs and tariffs procedures it is a way of now matching the imports coming into Iraq to the demand for the dollar in these currency auctions at the banks. So far the demand far exceeds the imports. So where is all the extra dollars going if not to pay foreign debt?
We see it is going to fund Daesh/ISIS terrorists and Iranian militia.
It has been very difficult to control this corruption. Many ways have been tried. This in part has been the hold up of the launching of the new currency (the lower dinars) and going forward with the currency reform measures, as I am told by my CBI contact. As we know the CBI has already created a scarcity situation with the dinar in the process of the “project to delete the zeros”. They have told us they are ready and fully prepared to launch the lower denoms but had to postpone this effort due until the security situation in Iraq is fixed. There words not mine. No Rumors, No Hype just the FACTS!  
So what is this security situation?
It is of course DAESH/ISIS & Iranian militia infiltration into Iraq and the possibility they could use the currency to fund their efforts.    
So this week once (for the hundredth time) we see more articles talking about the corruption in the currency auctions and the failure to resolve the corruption. Still they can’t trace the dollars and where they are all going. But they do know there is a discrepancy as the CBI reserves get twiddled down once again to $40 billion from $55 billion. See article below.
So something must be done and very soon. We all know this must be done prior to turning their currency (the dinar) on to the international/global world once again. We also know the World Bank and the IMF has highly recommended that Iraq hold their reserves at minimum of $55 billion.
So Iraq requested the assistance of the US Treasury counter terrorism team to come into Iraq and monitor this program. They finally have a solution. This is the WOW!
Remember this – Why in hell would you turn back on the currency of Iraq when the very reason you shut it off in 2003 still exists when sanctions were placed on Iraq. So first you have to eliminate or at least have some way to prevent the terrorists from using the currency for their own devious purposes. Get it?
Note: So how can the RV happen any day / everyday?  Anyone who it constantly telling you this is wrong and you should now know enough to stay away from these looney tunes. (and NO we are not going to "redemption centers" either. We will simply take our dinar to the bank and exchange with the exchange contact IN THE BANK).   
I quote from the article – “Khairallah said corruption disease eats away at the social fabric of the cultural, political and economic aspects, and prepared by Transparency International of the biggest challenges facing our modern world, it undermines good governance and distorts public policy and hurts the private sector and hurting the poor”.
Yet another WOW punch in the news today and I quote from the article below –

It is a turning point in this file the Central Bank of Iraq, led on the Keywords and through close cooperation with the US side blacklist to prevent funds from reaching the territory controlled by Daesh, and has more than 150 companies on list. He noted that the most important achievements of the Convention, dramatically reduces the dollar shipments to Iraq and replace with dinars”.
So what significance does this WOW news of today have on our investment?
This article below (the last article in the news letter) is telling us they finally found a way to prevent the funding of the terrorists from using the dollar AND most importantly it says replace the dollar with using the dinar. Oh- wait a second but there is a significant shortage of dinars in Iraq. Well – it looks like they will just have to launch the new lower denominations….lol….lol…Looks like they will just have to trade in dinars and not dollars anymore...meaning it is now safer to change over to using dinars and not dollars since it is the dollars being used to fund terrorists and not the dinars. Get it?
Many ask – Why not just put Iraq (or any nation) on the US Dollar as their currency? There are many reasons but lets cover the three main reasons.   
First, the current middle eastern situation would create a rapid, accelerated terrorist activities since terrorist buy their weapons and supplies from arms dealers using mostly US dollars. So you don’t want a means for them to obtain this currency. This has been the problem all along with the CBI auctions.
Second this question is yet more complicated, but essentially, YES, is would create a demand for the dollar but also with the uncertainty and instability of many of these nations. The USA would then also have to maintain a very high presence in order to maintain the stabilization of their economies thus stabilize the value of the US dollar (their currency). This is very expensive and defeats the purpose. Instead it is better for the USA to encourage a country’s sovereignty and have their own currency, their own armed services then they only have to “indirectly” exert influence and pressure to ensure what dollars do enter the country stay in circulation and do not go to terrorists (this is also why they need a “democratic” gov’t they can work with).
Third reason is that any nation to be truly sovereign needs it own currency. Using another nations currency is to be controlled by that currency. Money is wealth and wealth is power to decide your own fate as a nation. If you are truly going to be a democracy you will need to control your own currency thus your own destiny. This does not mean you can't or should not peg it to an SDR (basket of currencies) to help determine its true value and create stability.
Now I am not advocating the petro dollar (or any of he other currencies in the SDR such as the pound, yen, yuan, dollar, euro, etc, as evil or bad or even a conspiracy for it has had it purposes and many countries have become much more stable and wealthy as a result.  But when the use of the US dollar is involved there is influence the USA must play to constantly exert in order to keep stability for their dollars to stay in circulation.
Did you ever consider this. Basic economics tells us there are rules of Supply and Demand. Increase supply leaving demand the same the price is adjusted downward. Decrease supply leaving demand the same the price is adjusted upwards. So why is the US dollar now so high when we know they just infused trillions of US dollars into the economy through three rounds of so called "quantitative easing" (meaning put large quantities of currency into circulation hoping to ease inflation). Remember inflation is caused by less supply than meets demand, thus prices rise.
So what is left then to look as to why the US dollar is so high? Could it be that Demand has been adjusted along with Supply? and now in fact Demand out-weights Supply? Where is this demand coming from? Is it TRUE demand or just from Demand created from the confidence in the US dollar, as compared to other international currencies. In other words the choice over other currencies. Something to think about. How long will this confidence remain? 
Remember also the United Kingdom (UK) and the history lesson learned. The UK did exactly the opposite and forced their colonies to use the British pound as their currency. History shows this is in part the downfall of the great British Empire. You must peg your currency to a group of stable currencies. This is like diversification of an investment portfolio. So the  dinar will  be pegged to a basket of currencies. Do not confuse this with this so called "GCR" basket you keep hearing about. I will say it one more time....read my lips....THERE IS NO SUCH THING AS A GCR (global currency reset)! Get it?  
More WOW news……

I also want to let everyone know that this week Iraq published the text of an "historic compromise" which unveiled  a new vision and an Iraqi national for after Daesh. This is the National Reconciliation document we all have been waiting for so long. Yes- it has finally arrived and will be implemented.

It pledges the UN Mission in Iraq (UNAMI) to provide "a unified Sunni political party" to sign the document, and obtaining the approval of a regional Sunni states.
 UNAMI will play the role of guarantor party to implement the terms of this "settlement", cross-compiling proposals all Iraqi parties for the drafting of a final paper based on the protection and implementation. And it pledged to the UN mission, according to sources and I quote from the article – “ to deal with any party or threatens to hamper the implementation”.

I do not know if everyone can understand just how HUGE and WOW this news is today.

The UN just fully obligated the UN to support this Reconciliation effort and to use force to anyone who opposes it. Now Iraq for the first time has the full backing of the UN in this reconciliation effort.
Folks it does not get any better than this. FINALLY the long awaited Reconciliation Effort has taken hold and is almost completed. Now it just needs signing and recognition from all and it is done. Let’s pray it will take hold and be successful in the long run.

Articles Begin
Iraq confirms his efforts to join the World Trade Organization
Roudao – Erbil
The Minister of Trade of Iraq , “ Salman Jumaili,” on Tuesday, his country is seeking to join the World Trade Organization, to promote the country ‘s exports and diversify and provide incentives and facilities to them.
He Jumaili in a speech today at the opening of the Baghdad International Fair concert, in the Iraqi capital of Baghdad, that his country is determined to get the membership of the World Trade Organization, calling to contribute to the reconstruction of liberated areas of the organization “Daesh” international companies, to stimulate the economy.
Iraq obtained observer status in the World Trade Organization in 2004, but he was unable to obtain full membership, which qualifies him to take advantage of, especially in cross-border trade to join features.
A member of the parliamentary Economic Committee Jawad al-Bolani, in a press statement, “The Iraqi government headed years ago to develop the industrial sector through the granting of loans for various projects, and after the application of the tariff (next year), the concerned authorities will continue its efforts for Iraq’s accession to the World Trade Organization as a full member “.
He continued: “enter the organization requires activation of the industrial base, because the nation to join local products suffer from the competition in the market, because the markets are open to the flow of goods from OECD countries.” (to do this fully they will need an international currency to qualify among other items we have already seen them implement i.e tariffs and new inter banking laws)
According to data published on the Ministry of Commerce website, the ministry is leading a project to carry out a package of actions concerning the creation of an environment suitable for investment conditions, the rationalization of government policy support, in addition to a number of reforms to the laws and procedures of the taxes and fees.
The minister opened the day Baghdad International Fair, among its 43 in the presence of a number of officials and ministers, with the participation of 12 countries, 400 companies representing industry sectors, agricultural, commercial and communications technology, representing various nationalities, according to a statement of the Ministry of Commerce.(so they are open to suggestions on what they must do to be successful in the global markets, This is why they are having these numerous seminars and fairs.)
Iraqi Central Bank reserves lower to $ 40 billion.
{Baghdad} Euphrates News revealed to the economic and investment commission member of the parliamentary proof Mamouri, lower central bank reserves up to $ 40 billion.
Said Mamouri in a statement received by the agency {Euphrates News} a copy of it, on Wednesday, that "monetary policy by the Central Bank of Iraq led to a huge waste of the financial reserves of the Central Bank." 

He said , "There is information suggesting that the reserve current central bank limits $ 40 billion or less after hitting the $ 78 billion in 2013. " 
Said Mamouri that" the central bank 's policy of selling the currency led to a huge waste in a financial reserve of the bank after the dollar in the local market price reached more than 1300 dinars to one dollar, while the official selling price of the bank rate does not exceed 1200 dinars to the dollar. " 

He said a member of the economic and investment commission that" he was assumed that there will be an increase in the reserve ratio of foreign currency at the central bank as shall receive a percentage of profits to sell the currency, but we see the opposite. " 

he called Mamouri" bank to follow a new policy to sell the currency through the open window for direct sale to the citizens and at the price prevailing in the market and achieve the benefit for the general budget of the state. " 
he noted that it will be hosting the central bank governor and directors of state banks in the coming days in order to clarification about the causes of decline of dollar reserves and a strong dollar. " 

It is said that the central bank adviser Walid Idi told {the Firat News}, on 18 June, the central bank has more than $ 50 billion in reserve as well as gold, pointing out that this reserve covers imports more than generally accepted internationally established term.

Parliamentary claims to cancel the sale of foreign currency outlets because of the presence of corruption in sale of currency


BAGHDAD / tomorrow Press She said a member of the  economic and investment commission  parliamentary Najiba Najib,  for "tomorrow Press" that " foreign currency sale at the CBI window is still experiencing a large  blurry and there are  indications of cases of  corruption in dealing with  them," surprising than "not  to hear any of the " .competent authorities has  revealed file corruption in  the sale of currency window Najib said that "the  depletion of the currency has been continued  without a deterrent must be  shut down that process," 

arguing that "the  continuation”  ".will lead to a major  financial collapse," as the  central bank called for " several measures for the  import of essential things For his part, Chairman of the  Integrity Committee Talal  Zobaie called for "the  central bank's cooperation  with his commission to  uncover the files with dealers selling the currency and the sources of  their money from the dinar,  which was bought by the  dollar or any where the  dollar goes after buying ".window He Zubai, for "tomorrow Press"  that "the Commission  continuing to communicate  with the central bank to see  the reality of his dealings  with the sale of currency and customers that  are dealing with a window, 

but so far we can determine  the nature of these  transactions and goods  entering often stay is " .necessary therefore  requires a frothing of  cooperation by other entities  Kalmnavz border and customs  and tax Like 7 Share Economic Commission  parliamentary demanded on  Friday the abolition of  foreign currency sale at the  CBI window, confirming the  existence of a large corruption in, "while some  expressed surprise at the lack of  talking by official bodies  from that corruption, while  the Parliamentary Integrity  Commission .confirmed that it continues  to communicate with the bank  Central to see the reality of  his dealings with the sale of  currency window.
US official reveals details of Washington's agreement with the CBI to stop financing Daesh

BAGHDAD / tomorrow Press
Confirmed chief financial  officer at the US Embassy in  Iraq,  John Sullivan, that  cooperation between  Washington and Baghdad to  stop funding Daesh made considerable progress, noting that the  organization is going through  a financial crisis undermined  preparations for the battle  of Mosul and Stnhia in .its current form in the  event of losing the city Sullivan said the  international press  conversation, followed up " tomorrow Press", "The first  agreement of its kind between  the Federal Reserve and the Treasury Department on the  one hand, and the Central  Bank of Iraq, on the other  hand to monitor the dollar  shipments and ensure the  prevention of the " .arrival of these funds to  illicit destinations, is  applied successfully,

 It is a turning point in  this file The Central Bank of Iraq, led  on the Keywords and through  close cooperation with the US  side blacklist to prevent  funds from reaching the  territory" ".controlled by Daesh, and  has more than 150 companies,  today's situation ".He noted that "the most  important achievements of the  Convention, dramatically reduc e the dollar shipments to  Iraq and replace dinars
He pointed out that  "since before the  signing of the agreement was  Daesh militants are dealing  in dollars, and this  stopped today," noting that  "the ".senior leadership of the  organization arrested in  dollars.

The official spoke on the  financial crisis afflicting  Daesh, and added that "the  ordinary armed salary dropped  more than 50 percent, as well  as to their dealings Dinars prevents them  from making international  transactions," pointing out  that Iraq "was one of the  countries that buy the dollar  for years and " .there is a change radical  today
Sullivan praised Iraq's  efforts to reform the central  bank, where he said, "the  central bank completed within  a year more than what has  been achieved in ".the past 13 years ".He added that "Washington  and Baghdad will exchange  intelligence, financial,  security information required  to stop for Daesh transfers He said, "The organization  was formerly dependent on oil  prices and after the decline  began trying to swap oil with  goods or services," pointing  out that "."the campaign against Mosul  found a lot of cash dugout
Articles End
Their words not mine…..No Rumors, No Hype, Just the FACTS!
Auf Wiedersehen

Luv to ya all,    Mnt Goat

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.