Tuesday, January 31, 2012


Tonight’s chat is a “where we at chat?” I felt with all the recent CBI articles, I should discuss this, and as well bring out some recent articles to show you the timeline. Show you the frustration. Wer'e calling this chat…"The CBI’s dilemma”

kaperoni: First article…

kaperoni: Central Bank of Iraq announced its readiness to delete the zeros of the new currency and the introduction of the bilingual Kurdish and Arab - 2011/09/23

kaperoni: Quote…

kaperoni: “Salih stressed that the project to delete the zeros have been completed and will be presented to the Bank's management during its next meeting, and then will be submitted to the Council of Ministers to be presented to parliament for a vote.”

kaperoni: You see this article is from Sept 23rd. They are saying on this date again, they are ready. That the project or working papers will be discussed by the bank, then the Council of Ministers, and then Parliament for a vote. They are giving us the procedure here. The process.

kaperoni: Now the next article from January 2012…

kaperoni: Parliamentary Finance announces the end of the first phase of the project to delete the zeros from the currency - Saturday, 07 January 2012

kaperoni: Quote
kaperoni: “Euphrates News announced the Finance Committee in the Iraqi Council of Representatives on Saturday for the end of the first phase of the project to delete the zeros of the Iraqi currency, which included the purchase of equipment for the implementation of the project.”

kaperoni: This article came out 3 weeks ago. It told us again, they are ready. That the “first phase” was complete. He goes on to explain the three phases of the process to “delete 3 zeros”…

kaperoni: "the proposed deletion of zeros from the currency of the Iraqi Atksm into three phases, the first included the identification and purchase of equipment and the necessary equipment and completed the start of this year, and it is hoped that the project is completed within the next year to present the new currency in the market and is then gradually withdraw the old. "

kaperoni: Ok, this is pretty clear. That all the preparations are done. And at some point this year (2012) they expect to start with the new currency and gradually withdrawal by the end of the year. 

kaperoni: It is my opinion the plan to fully transition to the new currency by the start of 2013. Keep in mind, this does not seem to matter to us. As most of us only care about the introduction of the new currency (and new rate). Which could happen at any time.

kaperoni: Next article…

kaperoni: Financial representative: deleting zeros from the currency needed two years and three phases - Saturday 21 January 2012

kaperoni: This article gives us some more clarification…

kaperoni: “deleting zeros from the currency needs to be two to three stages. In a press release: "stages of delete zeros from the currency, divided into three phases, the first phase lasts six months to provide print devices, while the second phase of the introduction of currencies simultaneously, and will last six months to withdraw the old currency and the survival of the new currency."
kaperoni: This is our confirmation. That they are ready now. We are at the beginning of the second phase. Which is the introduction of the new currencies simultaneously with the old currency (and new rate). It is now Feb 1, 2012. They have 11 months to accomplish the project. 

kaperoni: Next article…

kaperoni: Central Bank warns of future frightening because of the low completion of projects - Saturday, January 28, 2012

kaperoni: “Iraqi Central Bank has warned of the future is frightening, as he put the Iraqi economy because of the low levels of implementation of investment projects calling for a serious stand for the advancement of years after the decline.”

kaperoni: Now this is where it gets interesting. We know the CBI has been ready to delete the 3 zeros since June 2011, and again heard in the Sept article they are ready. Therefore, we can see that the CBI has been “waiting” for the green light to implement this project from the GOI. The CBI has been patient. They have held off and watched. 

kaperoni: As we all have read about the economic laws that need implementation as well to support this event. We see the CBI come out…and basically say…hey guys, you are too slow, your laws are not getting implemented and the projects to advance the economy are not getting started. Enough is enough. Time is wasting. We need to implement our monetary policy. Another quote…

kaperoni: “Saleh continued that "the bulk of the state budget and operational Mozna investment represents a small part, however not implemented full on pointing out that the rates of implementation stated sometimes be true because of corruption and poor implementation, which means he was not getting any progress in the economic landscape.”

kaperoni: He is calling them out. Hey, you told us dates, and these projects are not starting. You tell us there is corruption, wer'e not getting anywhere. You're screwing up the plan. One more quote…

kaperoni: “He called for a serious stand to stop the deterioration of the years of development, and economic file occupies everyone's attention because it represents the fate of Iraq.”

kaperoni: Pretty straight forward. Time to get moving and get these laws implemented. Get the projects moving forward as it represents the fate of Iraq. Good stuff. Next article…

kaperoni: Economic researcher: the continuing deterioration of the Toman Iranian will deplete hard currency cash reserve in Iraq - Monday 30-01-2012

kaperoni: Quote..

kaperoni: “warned Hussein currency drain star from Iraq for Iran as a result of the deterioration of its currency to the US dollar.”

kaperoni: Now the CBI gets a curve ball. They realize the past few weeks their currency auctions are going way up. Partially due to the dollarizing (removing of more of the 3 zeros notes), but now another cause…due to economic sanctions on Iran, and the deterioration of the Iran’s currency (rial), they want dollars. 

kaperoni: So they have been coming to the border with Iraq and buying dollars. This is alarming to Iraq. The dollars they put out in the market (CBI reserves through the auctions) are leaving the country for Iran. Not staying in country. They are losing reserves. Next article…

kaperoni: The Iranians withdrew two billion U.S. dollars of trading markets in Iraq during the month - 2012-01-30

kaperoni: Quote…

kaperoni: “Among the estimated economic value of the Iraqi hard currency by withdrawing them from the Iranian market trading in Iraq during the current month by more than two billion U.S. dollars, which led to the increase in U.S. currency within the country.”

kaperoni: Now we get the numbers…in one month, 2 billion USD left Iraq and went to Iran. That is huge! And huge problems for the CBI. That just dropped the reserves down to 58 billion. At this rate, the CBI could lose 30-50% of its reserves by the end of the year. 

kaperoni: This problem now has the CBI wanting to stop this problem. To move forward now with the “delete 3 zeros” and stop this trend of losing it’s reserves. They are tired of waiting for the GOI and Parliament to get their act together. And the CBI does not want to lose all the hard work they have done preparing for this event. Next article…

kaperoni: Parliament: the Central Bank faces the problem of smuggling hard currency to Iran - 29/01/2012

kaperoni: This quote..

kaperoni: “He said Friday "the Central Bank announced measures for new financial to reduce the smuggling of currency, as well as the reduction of inflation in the coming days in order to solve this problem by setting the exchange rate, as well as the purchase price, the price of the Central Bank will be a new price in order to put the market in a balanced manner. "

kaperoni: This is real clear…”in the coming days.” They need to stop this problem. They are going to “set the exchange rate” They are going to put the market in a “balanced manor”.

kaperoni: This can only mean one thing…. 

kaperoni: The CBI is tired of waiting. The CBI is not going to allow it’s USD reserves to be diminished. They need to take action. And that action is the change the exchange rate. This is the plan…They will stop the flow of USD leaving Iraq by introducing the new dinar into the market in a “balanced manner”. This event will transition the people back to the dinar. The CBI then can collect the USD and de-dollarize the Iraqi economy. This will stop the problem. This quote again tells us,”in the coming days.”

kaperoni: Next article…

kaperoni: Fear of money laundering and financial fraud and corruption .. Delete the zeros of the draft with the "concern" may lead to an economic coup - 31/1/2012

kaperoni: Quote…

kaperoni: “Called for a number of financial experts and economists to the need for the central bank hold off before you delete the zeros, stressing the necessity of activating the economic role of Sergeant by giving the role of experts and government staff to monitor the local market.”

kaperoni: Now we hear from the GOI again….Saying wait…please don’t. We're not ready…”hold off before you delete the zeros” we need more time to activate the economic reforms (known as Sergeant). The CBI has this to say…

kaperoni: “This happened in conjunction with the announcement of the CBI, to start examining the need for the project to delete the zeros to the bill providing for the House of Representatives for the purpose of legislation, determine the mechanisms and controls the deletion of the local currency, stressing that the law gives him the powers of a change in their local currency.”

kaperoni: The CBI is stating to the GOI, we don’t need your approval, but we tried to work with you. We sent you a bill, to work together..to get a plan. But that plan has not been achieved. You never gave the law to Parliament! So we will go directly to Parliament. Then a quote from Parliament…

kaperoni: “At the same time, the parliamentary Finance Committee confirmed that the Central Bank lingered in the provision of a bill to delete the zeros from the currency to the Committee for the purpose of his study, confirming the same time the law was passed that would give Iraq an opportunity to address inflation.”

kaperoni: Parliament comes out and says..don’t blame us. We never got the bill. The CBI must be at fault. If we had it, we would have passed it. Then Saleh comes out and says…

kaperoni: “The deputy governor of the Central Bank of the appearance of Mohammed Saleh said that "the Central Bank introduced a working paper for the project to delete the zeros of the local currency to the Council of Ministers for the involvement of ministries and agencies in the process of deleting the requirements of the zeros to prevent harm from the process."

kaperoni: Once again, he is saying…we tried. Now we know what happened. We did our part and provided the working paper to the GOI (Council of Ministers). We gave you the plan and asked for you to get everything ready. To prepare the Bill for Parliament…but you didn’t. You didn’t give it to Parliament for a vote. This is killing our plan. We see, once again, a few more quotes trying to shut down the CBI’s plan…

kaperoni: “The government says the process of removing zeros from the local currency will increase the phenomenon of money laundering and is working to convince the central bank need to stop work on the project.”

kaperoni: And this one…

kaperoni: “Dabbagh called for in her speech (the future of Iraq), saying: "The state has to work on activating the role (Sergeant economic) because Iraq was already depends on the economic Sgt known economic security." And one more…

kaperoni: “She pointed to the existence of so-called Section (economic security) works a lot of sergeants and economic experts who monitor the market and price regulation and put an economic plan to set prices and scheduling. "

kaperoni: Pretty clear, they are trying to stop this event. Telling the CBI that that they are not ready, they do not have the plan in place. And that’s why Parliament didn’t have the law. We don’t want Parliament to have this until we are ready to do so. And two more quotes…

kaperoni: “And al-Dabbagh explained that "the instability of the Iraqi economy is due to the lack of trust between the citizen and the state and to work to return the trust must work to activate the economic Sergeant first because it will absorb a large number of the unemployed and employment of staff, state employees, entitled Economic Sergeant."

kaperoni: This should all have been done. These laws should have been in place, these are the laws we discussed back in Oct that needed passing to advance Iraq into a free market economy. The other pieces of the puzzle sort of speak. They are saying again, wait till we get this plan in place, till we get our reforms in place (the Sergeant).

kaperoni: Next article…

kaperoni: Central bank is considering legislation to provide law to the process of removing zeros from the currency - Monday, 01/30/2012

kaperoni: “Central Bank announced it had begun to study the need of the project to delete the zeros to submit a bill to the House of Representatives for the purpose of legislation setting out the mechanisms and controls the process of removing three zeros from the local currency, stressing that its law gives him authority to make changes to the local currency.”

kaperoni: I take this as the CBI has had enough. We are tired of waiting on the GOI to move forward with this and provide the bill to Parliament for approval. We will decide ourselves if we even need this..if so, we will take the law directly to Parliament. They are tired of the GOI stopping this and make it clear, it’s own CBI laws give them authority to make the changes in the currency. 

kaperoni: It seems to me that the GOI is the problem. That falls on Maliki. Is that what is happening here? IMO, It seems to be. It seems the GOI has been holding up the success of this plan. 

kaperoni: It appears as well, they are trying to hold up the economic success of the country. We know from previous articles, Parliament is supportive. Now the CBI appears to be tired of it and is bypassing the GOI, going directly to Parliament with the Bill. They are tired of waiting. 

kaperoni: We will see in the coming days if this will be a success.

kaperoni: Done


Bluwolf chat 6:17 pm est 1/31/12 « on: Tuesday at 06:36:38 PM »

 Bluwolf chat 6:17 pm est 1/31/12
[bluwolf] good evening
[bluwolf] is everybody a sleep
[bluwolf] just came in to say hi and inform you that not much has been said today
[rgone] bluwolf Welcome Blu!

[Agent 007] bluwolf hello
[bluwolf] but we are looking good at this time
[bluwolf] hello
[bluwolf] the rate will be a high one

[CelticCharm] bluwolf hello
[gf1hawk] bluwolf Hello, and welcome
[bluwolf] so be at ease
[Agent 007] bluwolf thank you

[bluwolf] as soon as some new info comes in I will be glad to inform you
[Agent 007] bluwolf thanks
[jwb] bluwolf GREAT  make my day   
[STUDmuffin] hey BIG BLU...
[jwb] GRRR, I'm gonna say a bad word soon!

[bluwolf] I have heard some weird rates today everything from 6.30 to 8.63 and way up to 14.00

[jwb] bluwolf any idea when you might get more info/? you think tonight?

[bluwolf] jwb that I cannot determine
[jwb] bluwolf ok thanks, I didn't know if you had a cc at 9pm for example

[bluwolf] cc with who?
[bluwolf] you know I think that you guys are really tired at this point

[magnum] ya think
[Agent 007] bluwolf really

[bluwolf] yea there is no movement on your keyboards
[monster] I bet you too are tired...... thanks for your time..

[CelticCharm] bluwolf I find my strength and hope in Him

[bluwolf] monster just ask Janna she knows what I do on a daily basis
[magnum] No one knows what the rate will be high or low it will happen when it happens
[bluwolf] magnum you will be surprised
[Agent 007] yes

[bluwolf] well let me go now I must talk to my flock now be blessed and bye
[happytrails] bluwolf; i think ur having a cc with Agent 007, and me tonight, right?
[Agent 007] bluwolf thanks and see you later

[bluwolf] sure honey
[happytrails] bluwolf; yay
[TimC] bluwolf Thank you and be blessed
[bluwolf] yw
[okdinar] bluwolf cya later
[bluwolf] ok ty and bye