Thread: Iraq/Dinar News. 09/05 to 01/14/07

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Who is the leadership of the ministry : Amendment to rid it of influence

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Who is : Amendment to rid the ministry of sectarian influence
The Interior Minister Jawad who is that "leadership is planning to amend the ministry to rid it of sectarian influence and political support inside Iraq."
Who is Al in an interview with the newspaper (The New York Times) that he "enjoyed the support of Prime Minister Nuri al-Maliki to do everything necessary changes between senior leaders of the ministry."
He pointed out that "all the senior officials of the Ministry of the Interior in the change and that a government committee reviewed the recommendations in this regard."
He who is the newspaper "he does not agree to the militias because it is" a new threat to the Iraqi political process in the country. "
Radio Tigris

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After the issuance of the law of the provinces. Blocks rejecting resort to the Court

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After the issuance of the law of the provinces. Blocks rejecting resort to the Court and the other driven grass-roots
From Santa Mikhail
Baghdad - (Voices of Iraq)
Reactions to the passage of the Law on Non Iraq by the House of Representatives last Wednesday, As varied positions of the bloc which boycotted the meeting in protest against the law, those threatened to resort to the Federal Supreme Court, and from what he said he would resort to inform and educate the grassroots about the dangers of this law.
At a time in which the Iraqi Accord Front (Sunni) they will resort to the Federal Court challenging the legality of the meeting at which the vote on the draft law, Both the Sadri trend, the Virtue Party Shiayan to resort to raising their roots on the risk Territories Act, with the insistence of the Supreme Council for Islamic Revolution in Iraq, the Kurdistan Alliance list for the meeting and a legal vote.
He said Salim al-Jabouri of the Iraqi Accord Front News Agency (Voices of Iraq) Independent, "There are several procedures could be followed by the front and challenge them in the voting process as contrary to the rules of procedure."
He added member of the Front, which has 44 seats out of 275 seats in parliament, saying : "We are counting on the constitutional amendment and the results will lead to, as that could result in changes at odds with the law (ie regions) and the origin of the (working) the amendments."
He continued, al-Jabouri said in a telephone News Agency (Voices of Iraq) Independent, "We are counting on the will of the people if the formation of the territory, We feel that there is a growing rejection of, no longer matter in the hands of the desire of the Sunni Arabs, but from the south, there is this voice, which could deepen. "
The United Iraqi Alliance (Shiite) in the past was one vote on the issue on everyone. Now there are different voices on the issue of federalism. Sadri trend with depth, the Virtue Party has a presence in Basra, and all of their views overlap with deems the Supreme Council of Islamic Revolution. "
A member of the Front consensus that no date for the formation of a cluster of blocks reject the bill in the House, but he added a, "The situation that arose against the national federation, which includes secularists and Islamists, Sunnis and Shiites could crystallize the impact on future agreements could shape the views of one about various issues."
For his part, Hassan said Shamari, from the Islamic Virtue Party (15 seats) "diagnosis from the outset that the project would impose on the people's interest, In the future when the date of the referendum will be for us to display our efforts on the Iraqi street for its adoption. "
Regarding the possibility of the emergence of a new bloc within the House of Representatives includes blocs reject the draft Non-Shamari said that "for now, there directed programmers to work Aljubhui, But this prominent position similar positions between blocs reject the draft Territories, However, the future existence of a strong national finest work for the interest of Iraq, I do not think there will be a fresh work with. "
The trend of Nasser Al Saeedy Sadri (30 seats) with the adoption Shamari, public awareness and media Altthiaqv one of the actions against the draft Territories. He said, "Non draft was approved yesterday on the mechanisms that this paragraph does not apply only after a year and a half, , which we will work hard so as not to hit Iraq to the division and distribution Kalcich (cake) between the parties, we will in one way or another to prevent it. "
He told Alsaidi (Voices of Iraq) "will resort to the media, education and public awareness programs studied ... Support governorates and decentralizing, We will seek to change the government's policy, and what will happen. "
The other mechanism will be followed Sadri trend is "the delivery of his supporters as members of provincial assemblies to prevent passing the request to allow the formation of regions."
According to one of the paragraphs of the law of the provinces to request the formation of the Territory have the referendum at the request of two thirds of the members of district councils as one of the ways.
He stressed that the trend Alsaidi Sadri did not question the legality of the vote, he said : "Amshklh to vote on the legal and federations How we will look to be at the present time and under occupation."
It was Muhammad al-Jabouri of the National Dialogue Front led by Saleh Almtalk been stabbed Wednesday on the legality of the meeting and vote on the law of the provinces, He explained in a press conference that "the rules of procedure provides for the postponement of the meeting for half an hour until a quorum, In the absence of a quorum to be postponed to another day. "
He added, "but what happened is that he was scheduled to hold the meeting at 10:00 and 8:30 am, it was adjourned for half an hour ... then held in two p.m.. "
He said a member of the Front dialogue, which has 11 seats in the parliament that "the meeting was a violation of the law."
But the Vice-Presidency of the Council, Khaled al-Attiyah (Independent within the United Iraqi Alliance), said that "the meeting was legal." He added in a joint press conference with Abdul Aziz al-Hakim, chairman of the coalition and head of the Supreme Council of Islamic Revolution, "followed strict procedures and more stringent in the area of inventory counting and the quorum, until been exhumed all staff and visitors, and the quorum of 140 deputies. "
This was confirmed by Abdullah Saleh of the Kurdistan Alliance (55 seats), who said "The number was a quorum and accurate and procedures followed in the countdown to unprecedented resolved in the House of Representatives."
In response to what was said by some of the bloc boycott of the meeting of the illegality of the meeting and repeated postponement, which counts violation of the rules of procedure, Kurdish member said, "are more than others know that all meetings of the House of Representatives are usually between ten and a half and 11:00 am, But behind the scenes discussions leading to the delay in convening the meeting, and many times flying the meeting for half an hour but held after two hours. "
He said "the truth are surprised the participation of members of the Iraqi List (headed by Iyad Allawi, had 25 seats) and a quorum."
Regarding legal meeting held No. 47 of the Parliament, which approved during Territories Act, he said law professor at the University of Basra, a member of the Constitutional Commission in the National Assembly dissolved Hassan agony that "the problem was not so much a legal were political. Theoretically, the meeting is being held on the presence of a majority of members of the Council any half-plus-one, The vote in the meeting by half plus one unless there is also text, if the words applied, authorizing the correct law and walked. "
Regarding the postponement of the meeting, "If already been postponed more than once Valjlsh are not in session (ie illegal), but this is what the Anarafh (any number of times postponement)."
He added : "With regard to terrorism and ideological pressures, which have been spoken about, Vsamana also other clumps practiced against some members of the bloc to prevent them from entering, either counting issues and the introduction of these people other things. "
And the agony continued in a telephone statement to (Voices of Iraq), "The political problem is basically that emerged and went to the level that the coalition had entered the elections on the basis of the federal exited two of the largest bloc on the line and are Virtue and the Sadri trend."
The meeting of the House of the 47 had witnessed the vote on the draft law defining the executive procedures for the formation of regions by an absolute majority of the audience members who are mainly members of the Supreme Council for Islamic Revolution in Iraq, the Dawa Party and independent of the coalition, Shiite and Kurdish members of the coalition and a number of members of the existing Iraq Yeh.
It boycotted the meeting all blocs and the Sunni Iraqi Accord Front and the National Dialogue, Reconciliation and Liberation Bloc (three seats), in addition to the Sadri movement and the Islamic Virtue Party, and a number of representatives from the Turkomen.
Pertaining

Violence and progress co-exist in Iraq
Secretary of Defense Donald Rumsfeld and Army General George Casey, top commander of Coalition Forces in Iraq, emphasized violence and progress co-exist in the country's complex security environment, and that those who focus exclusively on day-to-day incidents are missing the larger picture. The remarks came at an Oct. 11 Pentagon press conference addressing the issues affecting Iraq.

Casey acknowledged the continuing challenges facing Coalition Forces, but said most attacks are confined to only five of the country's 18 provinces; 90 percent of them are staged within a 30-mile radius of Baghdad. But other parts of the country experience so little violence the coalition had returned security responsibilities to provincial governments.

By the end of 2006, Casey said, as many as seven Iraqi provinces will have transitioned back to full Iraqi control. Coalition Forces will complete the training of a new Iraqi National Police force and border guard by the end of 2007, Casey said-part of helping the country's Interior Ministry regain public trust after decades of police corruption and allegations of involvement in recent sectarian violence.

With Coalition support, the ministry established a new police reform program to retrain the entire force, one division at a time, to improve its effectiveness. Parallel to this effort, Casey reported the ministry also investigated more than 4,000 officers for corruption and human rights abuses, dismissing more than 1,200, including some in senior leadership positions.

Casey also highlighted government progress in crafting a political timeline to drive agreement on major issues dividing lawmakers, including division of oil revenues, the role of federalism, and the fate of the militias, as well as the International Compact for Iraq - an international partnership to promote economic reforms and investment that will promote the country's long-term stability and prosperity.

"All of these initiatives are going to take some time to come to fruition," Casey said, "but the energy and the commitment is there."
Violence and progress co-exist in Iraq

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The health of Karbala celebrates the Day of the World Vision

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The health of Karbala celebrates the Day of the World Vision
Will diseases unit transitional-psychological and kind in the
Karbala health of the Holy tomorrow, Sunday, October 15, 2006, Haflha
The annual Hall on the occasion of the World vision
Approved October 13 of each year.

The official spokesman for the health of the Holy Karbala, Professor (Kadhim Salim) for the site
N. Khabri The goal of the celebration is the launch of the initiative right Balabassar (Vision 2020)
To get rid of the cases of blindness that can be envisaged to occur by 2020, stating that
The long-term goals is to develop a comprehensive system of health care in order to ensure
Of all the people to enjoy the best level of vision, and thereby improve their standard of living.

It pointed out that it would be healthy educational lectures by a number of specialist doctors
Eye care about the kind of education and raise the level of health for the prevention of diseases
Kind, adding that the importance of these lectures, including the periodic inspection, and the importance of
Eyeglasses for the visually impaired and the injured errors vision refractive index.

He pointed out that (a million people in poorer sight in the world, mostly living disqualification
Blind because they do not wear eyeglasses According to the statistics of the International Agency for the Prevention
Blindness).

In conclusion, he pointed out that three research will be put up at the ceremony, where he will research
First Dr. (Mohamed Ali Hamid) worker in the eyes of Hussein General Hospital
Deals (the blue-disease prevention and treatment), the second research Vselekaya Dr.
(Ali Muhsin) worker in the eyes in the hospital, where he will address the (mistakes vision
The refractive index), while will be Dr (Muhammad Ali and Sam) specialist eye hospital
Indian General, which will address disease (trachoma).

It is noteworthy that the Health Department had prepared holy Karbala Alvoldarat and propellant charges concerning ways
The prevention of blindness.


Site N Khabri

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Launching a campaign of the National Task Force in Karbala

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The blessing of God
Launching a campaign of the National Task Force in Karbala

From / Abdul Sattar Al-Dulaimi
The blessing of God started this morning, the national campaign of the National Task Force under the chairmanship of Professor Saad Asem al-Janabi for the reconstruction of the holy city of Karbala, Sheikh Abdel-Aal Jasb Chairman of the National Working Group in Mjafezh Karbala that the campaign, which was launched today included the revival of education, staff and the martyrs and the teachers and officers and included cleaning alleys, streets and squares of garbage collection in addition to the distribution of food aid to a large number of families in those neighborhoods.
He said Sheikh Abdel Aal Jasb that other phases of the campaign will include installed generators and water purification stations in addition to the inclusion of large numbers of families assistance at the prefectural level.
He said that the campaign in the holy city of Karbala expressed a clear on the work of the Committee of the National Task Force actively preserving one man believing national responsibility entrusted to them in these difficult circumstances through which our country to save our people from the tragic situation.
The Sheikh Abdel Aal Jasb Chairman of the National Working Group in the city of Karbala with the cooperation of the citizens campaign by the National Working Group of reviving the preservation and expressed gratitude and appreciation to Professor Saad Asem al-Janabi, which seeks to exert maximum efforts in order to provide the best services to the citizens in order to help them overcome the Azaro P difficult they are experiencing now.
The Sheikh Abdel Aal Jasb that Karbala is currently best shape it during the campaign by a group of NPA in addition to beautify the city and the Iraqi media for campaign slogans.

Old article but great info.

IRAQ CURRENCY


The successful United States led invasion and overthrow of former President Saddam Hussein in spring 2003 has turned this nation of Iraq to a possible future of great wealth and stability in the long term. Under former President Hussein’s regime, Iraq was a country of two societies, one that was very wealthy living in opulence and the other where the majority of Iraq’s people were fighting for survival. At the end of Gulf War I in 1991, the implementation of economic sanctions by the world community further crippled Iraq both economically and socially following a brutal 8 year bloody war with Iran during the 1980’s. After Gulf War II in spring 2003, much of the Iraqi infrastructure was destroyed although massive Western monies are now in due process for rebuilding. However, violent insurgencies and coalition deaths still prevail in a current time of disarray and war under way. Below is a detailed discussion of our findings and its relation to the Iraqi currency, the ‘dinar’.

The war with Iran cost Iraq in excess of $100 billion USD while an economic embargo sponsored by the United Nations (‘UN’) from 1991-2003 have had a further net cost of $150 billion USD in lost oil revenues to Iraq. It is no surprise that today Iraq remains in default of its huge net external sovereign debt estimated at $122 billion USD ($40 billion USD to Paris Club and $82 billion USD to sovereign nations). Inflation during the 1990’s reached a staggering 100 percent level resulting in a collapse of the Iraqi dinar with very little global purchasing power parity although the previous official exchange Iraqi exchange rate is an illusion to the real economic situation that took place in Iraq during Mr. Hussein’s rule. Iraq funded its war with Iran by borrowing from foreign markets abroad, particularly Kuwait. In the early 1990’s when Kuwait called in their loans coupled with a disputed oil border, Iraq invaded. Since 1989, the Iraqi economy collapsed and by the mid to late 1990’s GDP was down 60 percent with sanctions. However, by the late 1990’s, Iraq implemented a massive contraband oil smuggling operation of which brought in billions of US-dollars into then Mr. Hussein’s regime.

POLITICS: on June 28, 2004, the United States transferred self rule power to Iraq to transitional Prime Minister Ayad Allawi, a Shia Muslim to run an interim government until free elections. Former President Hussein, 67, was the leader of the Baath Socialist Party and Revolutionary Command Council where he ruled Iraq that of a police state and crushed all opposition. Mr. Hussein was President of Iraq from 1979- April 2003 although basically a strongman leader since 1968, widely guarded as brutal dictator. Those tied to former President Hussein’ rule lived well, if not lavishly. Mr. Hussein was well known for his extravagance, building 21 palatial lavish palaces. Mr. Hussein’s regime was that of a Sunni minority clan like clique, former President Hussein who was caught is now awaiting trial in Iraq along with some of his closest confidents for crimes against humanity. Prior to Mr. Hussein’s helm at power, Iraq has had a volatile history of unstable governments, coups and minimal democracy, formal country independence took place in 1958.

The difficulty with Iraq that it is similar to Afghanistan, it is made up of different ethnic factions consisting approximately of 150 tribes. In the south, Iranian Shiite brethren make up 60 percent of Iraq’s population which could possibly rejoin Iran thus giving it more oil reserves and power. In the north, the Kurds who represent 20 percent of Iraq’s total population are in the majority of which they may want their own independent Kurdish state. In the middle of the country, the Sunni Muslims are predominant but with only 20 percent of the population.

It may take upwards of 10 years to get Iraq to that of a functioning democracy and stable economy. It is quite possible the coalition forces led by the United States will have a military presence in Iraq for years to come. However, good things have taken place in Iraq with a large quiet economic revolution underway and the resurgence of the Iraqi middle class as reconstruction funds are driving the economy.

ECONOMY: the Iraqi economy currently remains dependent on United States and foreign grants as the nation rebuilds from the fall of former President Hussein’s regime. Essentially, the international community is providing the bridge financing up until Iraq is self-dependent from its oil production, this may take 5 years to achieve this goal. Many global multi-national corporations are now in Iraq taking advantage of post Gulf War II redevelopment contracts from the petroleum industry to infrastructure. Prior to Gulf War II, GDP/Capita was 10 percent higher than it was in 1990. On the whole, Iraq is a wealthy nation with immense oil wealth where Iraq’s petroleum industries represent 95 percent of foreign exchange. Some sort of civility is returning to Iraq with commercial flights now arriving at Baghdad International airport. The country is now flooded with many Western consumer goods from around the world including new BMW’s and Japanese automobiles are evident, satellite television, etc. However, the overall economy is presently in disarray from the fallout of Gulf War II with upwards of 2 million Iraqis’ remain unemployed out of a 7 million labor force.

Now with a new regime, support of the international community, better times lie ahead. Under Mr. Hussein’s regime, the Iraqi economy was based upon a centralized model of extensive state planning. Today, modern Western free market principles are now being implemented with the support of the international community. The future economy for Iraq is quite bullish assuming political stability and prudent political management. Investors can expect Iraq to operate with a low tax economy, access to foreign investment and aid in the near term as required, trade liberalization, privatization of state-run industries and a reduction in sovereign debt levels. Recently, the governments of Japan, Canada, Kuwait announced that they will forgive part of Iraqi debts owed to them. Other countries are expected to follow suit at the Paris Club (19 countries) debt meetings in addition to the World Bank debt forgiveness. And there are also plans to set up a stock exchange in Baghdad. At present, there is approximately $8 billion USD available to Iraq from funds held within the UN oil-for-food policy. The United States has pledged $18.4 billion USD over the next 3 years. The World Bank estimated that Iraq will need upwards of $55 billion USD over the next 4 years for rebuilding infrastructure to provide the necessary foundation for economic growth.

Economic Statistics
GDP 2000 at $57 billion USD as measured by purchasing power parity, GDP measurement for 2003 was at $39 billion USD reflecting the economic disruption during the period of March - April 2003. Market GDP is at $26.5 billion USD with corresponding GDP/Capita at $1,100 USD. Iraq’s GDP growth for 2000-01 at 15 percent, year 2003 fell 20 percent, year 2004 to grow at a spectacular rate 50 to 60 percent of GDP. Inflation during year 2003 at 28 percent, year 2000 at over 100 percent, year 1999 at 135 percent, from 1995-2000 inflation averaged 100 percent. Iraq’s current account surplus for 2002 at positive 8 percent of GDP, year 2001 came in at 2.7 percent, year 2000 surplus at 11 percent. Major trade partners include United States, Taiwan.

POSITIVE: massive oil wealth, AIDS disease is very rare, Iraq is opening up the economy to foreigners except in oil, real estate and natural resources. CONCERN: environmental, security concerns include assassinations & kidnappings, massive electrical energy shortfall, domestic security with continued insurgencies terrorist attacks, disease is making a reappearance including cholera & typhoid, hospitals are in bad shape, water quality is poor, infrastructure damage is extensive, famine & malnourished children are prevalent, agricultural - major irrigation problems and high infant mortality rate.

BANKING SYSTEM: Iraqi citizens are now able to bring foreign currency into Iraq, no restrictions to the amount. Iraqi banks are allowed to lend hard currency with foreign banks now given permission to operate and in invest in Iraqi banks up to 100 percent ownership. Most Iraqi assets remain frozen overseas. Although Central Bank of Iraq (CBI) was established in 1947, it is being restructured to reflect more of a modern Western style monetary system including management of the currency, holding of foreign exchange reserves, liberalizing of interest rates, price stability, etc. Iraq’s banking system presently remains for the most part on a cash basis. There is basically no electronic banking including no ATM’s, credit cards, etc. The banking system under former regime of Mr. Hussein, most Iraqis during this time kept dinars as mattress money rather than depositing at state banks. The banking system consists of 17 private banks, 6 state-owned banks that are considered insolvent plus banking licenses granted to United Kingdom’s HSBC & Standard Chartered and the National Bank of Kuwait of which these 3 banks have yet to open up branch offices.

REGIONAL and GLOBAL ANALYSIS: Saudia Arabia, Iran, United States
The threat of a political collapse in Saudia Arabia is real as the Saudi Royal Family is now under increased pressure from many opposition groups including al Qaeda terror organization. America’s military presence in Iraq will further help to maintain this regional stability and ensure protection of much of the Middle East oil reserves. The political implosion of Saudi Arabia will not derail Iraq’s rebirth as a stable sovereign nation in BI.C’s view. With respect to Iran, growing influence of many of Iraqi’s Shiites in the south for closer political ties to Iran while Iran’s politicians have taken notice of the regime change threat that may possibly lie ahead for them. Iran is considered to be a long time enemy of Iraq although relations are now improving with Mr. Hussein out of power. There has been discussion in financial circles that the real ambition for the United States during Gulf War II was not about the weapons of mass destruction threat, but more about protecting the value of the USD as the world’s reserve currency. With the United States now with security presence in the Gulf Region, America is sending a strong signal to OPEC and other oil producing countries to keep using the USD as the world’s reserve currency instead of pricing in EUR or another currency. This currency pricing of the USD for oil will help the United States maintain its lofty standard of living.

KNOWLEDGE: Iraq holds the second largest proven oil reserves in the world behind Saudia Arabia with Iraq holding 113 billion barrels of economically viable proven reserves and another 215 billion barrels of probable & possible reserves. Since February 2000, the Iraq-Syria oil pipeline of Kirkuk-Barias opened of which Syria profited handsomely from re-selling Iraqi oil at a profit for their export industry particulary with Iraq like Saudi Arabia having very low production costs that average at $1 USD/barrel of oil. Tremendous wealth potential exists with the future development of the Qurna oil field located in southern Iraq. It is one of the world’s largest with 20 plus billion barrels in reserves. Future Iraqi oil policy will be determined by the level of foreign investment. It is estimated that upwards of $50 to $100 billion USD will be required for redevelopment in capital investment, production and exploration to get to full Iraqi oil potential to similar levels of that of Saudia Arabia. Since the end of Gulf War II in April 2003, Iraqi crude oil sales have reached $10 billion USD over the last year as reported by the Coalition Provisional Authority with the monies then deposited into the development fund for Iraq. Oil sales for 2005 for Iraq is estimated at $20 billion USD, year 2000 recorded sales of $16 billion USD.

Iraqi crude oil production as of June 29, 2004 are in the range of 2.126 million bpd with exports at 1.138 million bpd from its two southern terminals. Output was temporarily scaled back 800,000 bpd from recent sabotage from domestic insurgencies on the Kirkuk pipeline in northern Iraq (home to 40 percent of Iraq’s oil reserves) to Turkey. In the last 7 months alone, there have been 130 terror attacks on Iraqi oil infrastructure which consists of 260 oil facilities and 7,000 miles of pipeline. Pre-Gulf War I oil production at 3.3 million bpd which represented 95 percent of national earnings for Iraq. Pre-Gulf War II oil production at 2.7 million bpd. The goal by the authorities is to increase production by another 500,000 bpd by year-end 2004. Iraq is a member of OPEC but does not have a quota since its membership is in a holding pattern until stability and normality returns. Natural gas reserves for Iraq are impressive at 3.15 trillion cu m.

CURRENCY: ISO symbol ‘NID’, formerly IQD prior to January 22, 2004, New Iraqi Dinar. At time of review on July 1, 2004, the Iraqi dinar had an exchange valuation of 1456 IQD to the US-dollar (‘USD’). As of January 2004, Iraq has a new unified Iraqi dinar with a then high valuation of 1,000 NID to the USD. Formerly, Iraq had two dinars in circulation, a perceived stronger currency in the largely autonomous Kurdish north ‘Swiss dinar’ (printed in Switzerland) and the other ‘Saddam dinar’ circulating in the rest of the country ‘IQD’. On October 15, 2003, the New Iraqi dinar was launched with a 3-month deadline to swap the old dinars currency notes to the NID which expired on January 15, 2004. The New Iraqi dinar has appreciated by approximately 25 percent to the USD since its inception 9 months ago in October 2003. The Swiss printed dinar during the 3-month conversion time was converted at a rate of 150 to the USD, valuations for the Swiss dinar have included March 2003 at 10 to the USD. It should also be stated that there is no plans to fixed the NID to the USD due to America’s impression, the NID is a Hussein-free dinar note.

CURRENCY HISTORY: in April 1932 at the end of the British mandate, the Iraqi currency board opened with the launch of the dinar which was then pegged at par with the British pound and backed by pound reserves. In year 1947, the currency board was then replaced by the central bank system with the dinar quoted at $4.86 USD to the dinar. By 1970, the official exchange rate had the dinar at $2.80 USD, year 1973 at $3.39 USD. By 1982 up until Gulf War II, the official rate devalued by 5 percent to $3.22 USD to the dinar or conversely the peg at at 0.3109 IQD to 1 USD. Black market rate is volatile and fluctuates around 2000 IQD to the USD in 2001 and also in August 2002 of which represents a significantly lower valuation than the irrelevant official rate. However, it should be noted that black market rates differ tremendoulsy from official rates. It was interesting to note that former President Hussein demanded that oil payments from the United Nations be paid in euros rather than US-dollars to further embarrass the United States. Further, it is widely viewed that the official exchange rate policy was for the most part only available to former President Hussein and his associates.

At the height of the Iraq-Iran was in 1986, inflation in Iraq reached 50 percent with black market exchange rates estimated in the range of 500 to 1000 IQD to the USD. Historical black market valuations include shortly after Gulf War I in 1991 the old dinar collapsed to 7,000 IQD to the USD and by 1995 the rate had rallied to 3000 IQD. In 1996 just before the United Nation’s implemented the oil-for-food program, the IQD then rallied to a level of 2400 IQD to the USD, year 1997 at 1530, December 1999 at 1910 IQD, December 2002 at 2330 IQD to the USD, April 2003 the dinar fell to 9000 IQD to the USD as Iraqi banks were being looted, March-April 2003 traded as low as 4,000 IQD with other reports of trading in the 5000 to 6000 IQD to the USD level, an exchange valuation of 2000 IQD at the time of Mr. Hussein’s regime overthrow in April 2003, July 2003 at 1500, October 15, 2003 at 1970 NID to the USD (currency swap to New Iraqi dinars from old dinars) and May 2004 at 1340 to 1660 NID. During the war in spring 2003, the old Iraqi dinar brought back memories of its validity as wheelbarrows of paper currency were required to facilitate transactions, the currency almost worthless at that time. In addition, other currencies came into circulation during this time of chaos within Iraq include the Kuwaiti dinar, the USD, Euroland euro, Syrian pound, gold, and the Jordanian dinar.

CURRENCY FORECAST: ultimately in BI.C’s view, a much higher standard of living for the Iraqis will take hold and corresponding stronger exchange valuation for the NID. The short term may continue to be difficult as exchange valuations for the NID will be determined by the level of terrorist insurgencies versus the speed of successful redevelopment. BI.C is very optimistic and bullish for the long term outlook for Iraq and its new currency. The challenge for the new government will be to provide stability, peace, growth and then prosperity may follow. The short term outlook will determine Iraq’s political & domestic stability. Further, higher world oil prices over the last 3 years will help to provide hard currency earnings for rebuilding as new oil Iraqi oil production comes online.

A key decision to the authorities is what kind of currency regime should be in operation for Iraq. Peg to the price of oil? A currency peg to a basket of currencies including the Euroland euro ‘EUR’? Or perhaps dollarize completely with another currency such as the EUR as what has taken place with Montenegro, Kosovo in the Balkans. BI.C believes a fluctuating peg to the price of oil and hard currencies including the yen, euro and USD maybe a viable solution for maintaining currency and price stability for Iraq.

There is great speculation in the New Iraqi Dinar by many in the international community as some investors believe what happened to Kuwait during the 1990-91 Iraqi occupation with respect to the Kuwaiti dinar may very well happen to Iraq. Foreign buying of the NID is providing for appreciation pressures as speculators think that the rebuilding of a new Iraqi economy will propel the NID to much stronger valuations. The Kuwaiti dinar collapsed to below 10 cents to the USD before rebounding to significantly higher valuations of $2-3 Kuwaiti dinars to the USD by the end of the 1990’s. Short to medium term volatility may take place with the day to day theatre expected with the trial of former President Hussein in the months ahead. The media event may create enthusiasm amongst his supporters thereby potentially increasing the insurgency attacks.

Iraq should be one of the wealthiest nations in the world today with its huge oil reserves if had responsible management, but this has not been the case for decades and even before Mr. Hussein’s tenure. The risk is that even with a U.S. sponsored puppet government, Iraq has had a very turbulent history of government. The ethnic make-up of Iraq consisting of different factions of tribes and cultures similar to Afghanistan makes Iraq a very difficult country to govern. Overall country risk remains very high for Iraq for at least the next 2 to 3 years, NID currency speculators take notice.
Bankintroductions.com - IRAQ

The Other Way to Win Iraq

by Michael S. Bernstam

It's economic policy. The new Iraqi government will be well positioned to implement it. Replace food rations with prepaid debit cards. Under the sanctions imposed in 1990, some 97 percent of the Iraqi population subsisted on free food rations. Since the onset of the Oil-for-Food program in 1996, food rations relied on imports. Invasion past and the sanctions lifted in May 2003, 96 percent of the Iraqi people still subsist on food rations. According to the U.N., World Bank, and World Food Program estimates, some 50 to 60 percent of the population critically depend on food rations lest they starve. Free, universal food rations make Iraq a veritable commune in life essentials, courtesy of the U.S. taxpayers and protected by the U.S. and coalition military. This species of Communism is more ubiquitous than the Soviet Union, Mao's China, and even North Korea.

This Communism feeds insurgency in more ways than one. First, food rations, made up of imports and distributed for free, depress crop prices, and suppress agricultural output. On top of that, the government continues to act as an agricultural procurement monopsony and further suppresses food prices, which stamps out the emerging free market segment. Agricultural output has been declining by over 2.5 percent per year since 1990. Under the sanctions and two-and-a-half years hence, some 50 percent of arable land remains uncultivated and 70 percent of cattle stockyards shut down. This displaces rural population to urban slums. In December 2004, Iraq's Minister of Agriculture Sawsan Ali Magid al-Sharifi did not mince words on the subject, saying: "Agriculture is the main sector to provide jobs to young people instead of leaving them in the hands of terrorists."

Second, the central government runs the Public Distribution System, which is just a euphemism for food rations. But who is the final distributor at the local level? Who allocates food rations and enforces their actual distribution to every family in all localities? Under the Saddam regime, it was his local administrators backed by his feared law enforcement. Under the U.S. occupation and the democratically elected Iraqi government, it is local militias. That is, sectarian and jihadist militias. There is no one else there to enforce delivery, secure storage, repel corruption and theft, and ensure that food rations reach every family. Some of these militias report to political groups which are allied with the U.S. and coalition forces, and we call them the police, the paramilitary, and the army. Other militias report to political groups hostile to the U.S. and we call them insurgents, rebels, terrorists, thugs, etc. Some militias shift between the two or drift between war and peace, like the Mahdi Army in the Baghdad slum suburb, the Sadr-city, which the U.S. military also fought in Najaf. These various militias constitute real local governments. They have taken over villages, towns, and cities across the country and various districts of Baghdad. They enjoy local popular support because they serve as the life-line. These militias distribute food rations as their raison d'etre and moonlight in fighting the opposing sectarian groups and, in the case of insurgents, also the U.S. and coalition forces. Their stakes are bigger than food rations. It is power, ideology, and, in the case of jihadists, revolution and world domination. But food rations enable and empower them to pursue those bigger stakes. Disband food rations, and this will disempower the militias, including the insurgents. A subsequent agricultural development will dilute their ranks and reduce them to cells instead of urban armies.



From food rations to prepaid debit cards and beyond

Universal food rations represent a double accident of history, first, of the sanctions, and then of the failure of the occupying powers and the Iraqi government to dispose of them. The Coalition Provisional Authority (CPA) debated disbanding food rations at the outset but stopped before the turning point. The general idea was to replace food rations with cash subsidies which would buy food on the market at market prices. These could be direct cash subsidies to households or more innovative instruments. Each month, the government could credit household accounts at local bank branches or issue prepaid debit cards (stored value cards). The idea seems to have been sidelined on humanitarian grounds. First, initial disruptions of food supplies could occur and lead to unrest. Second, in the traditional society, tribal chiefs, heads of patriarchal families, and men in general might seize cash, which is fungible, and spend it on cars and guns while women, children, the elderly, and the frail would starve. Given these potential humanitarian undesirables, retention of food rations was deemed a lesser evil.

Yet, minor adjustments can significantly, even if not completely, neutralize these problems. Recall prepaid debit cards. They do not require a sophisticated banking system with universal household accounts. Only merchants and vendors need to hold business accounts at local bank branches. When an individual swipes his prepaid debit card through a merchant's machine, cash is credited from the government account to this merchant's account at the bank. All merchants, even small-time vendors, will be interested to honor prepaid debit cards. Incentives will render it unnecessary to make honoring prepaid debit cards obligatory. These incentives invite widespread participation of big and small producers and purveyors and minimize supply disruptions.

Disbursement of prepaid debit cards can be made directly to families at places of employment for workers, tax offices for small businessmen, and the social assistance agencies for the unemployed and other dependents. The amount will be assessed as the free market value of the food ration per month per person or per family of four weighted by the number of family members and their age. Food rations, public distribution, state procurement, and state import can be phased-out as the new system is phased-in across the country. Food supplies and transactions can be relegated to competitive wholesale traders and importers, initially as concessions on a tender basis, and additional supplies will flow through farm markets and retail. Food will be traded at free market prices for both producers and consumers.

Still, some disruptions of food supplies may occur initially and then sporadically during the process, no matter how meticulous is the preparation. Then a simple adjustment can mitigate market frictions. All it takes is to retain the residual system of food rations as a backup to offer emergency deliveries. Thus, consumers will cash-in their prepaid debit cards to acquire basic food supplies from the erstwhile public distribution system. The cost of its maintenance as an emergency backup will be small in comparison with the overall reduction of administrative costs, let alone all other efficiency gains.

The next adjustment can mitigate, albeit not preempt, individual abuses and deprivation. Prepaid debit cards can be made less fungible than money. If necessary, they can act as a technologically advanced version of food stamps. Their earmarking for food purchases (plus a few other household items, e.g., soap, detergent, etc., which are currently included in food rations) will make it more difficult for patriarchal men to deprive women, children, and other weaker citizens of food. Still, men might buy guns, radios, and tires and hoard debit card balances to buy cars and other big ticket items. There will be abuse and fraud aplenty. Any welfare system, in the phrase of Arthur Okun, is a leaking bucket. But the objective here is not to design a food subsidy scheme that is perfect and permanent.

It is not the objective to keep the entire nation on alms for eternity. At the same time, it is not the objective to lure and coax the war-worn Iraqi nation into a scheme that will be arbitrarily abandoned at some point for the sake of fiscal austerity. The latter would cause food riots, akin to those in Jordan in 1996 and in Egypt in 2004, and won't stimulate production. That outcome could resuscitate the insurgency which the disbandment of food rations should suffocate. No, the objective is rather to think of a working device that is transitional and contains the built-in incentives for its own phase-out. It should stimulate production and economic growth.

To this end, prepaid debit cards can take the form of a flat negative income tax rate. Suppose, food expenditures constitute 50 percent of the average family budget. In reality, in poor countries it is 60 percent or more, but leave it at 50 percent for simplicity of exposition. Then the double value of the food ration constitutes the reference income for the average family of four. Adjustments for family size and structure can be made. Then prepaid debit cards that act as a flat negative income tax rate can replace 50 percent of the income gap between the family's current income and the reference income. Let the market value of the food ration be $100 (147,500 Iraqi Dinars) and the reference income $200. If the family earns no income, it receives a prepaid debit card in the amount of $100 (50 percent of $200) which makes up its total income. If the family earns income equal to $50, it receives $75 (50 percent of the difference between $200 and $50) and makes total income of $125. If the family earns $100, it receives $50 (50 percent of the difference between $200 and $100) and enjoys total income of $150. If the family earns $150, it receives a prepaid debit card in the amount of $25 and commands total income of $175. If the family earns $200 or more, it receives no prepaid debit card. The formula of course applies continuously to all income values from zero to $200. Within this interval, each $1 of income not earned is replaced by only 50 cents in the food subsidy embedded into a prepaid debit card.

At each level of earnings, total income is higher with lower subsidy and higher market earnings. Every family has the built-in incentive to earn income rather than receive a food subsidy. This is the built-in incentive to phase-out prepaid debit cards on the part of every family. This is the built-in incentive for work and production. To strengthen these incentives, the 50 percent income gap replacement ratio can be applied for the first year and reduced to, say, 40 percent in the second and 25 percent in the third, and then eligibility capped at 30 percent of the reference income.

Since prepaid debit cards will be disbursed to workers at the place of employment, to business owners at the tax offices, and to the unemployed and dependent at the social assistance agencies, the reference income could be readily determined. Still, there will be plenty of fraud and abuse. But the partial income replacement formula implies that the entire program will cost a fraction of the current food rations. Government expenditures and U.S. aid will fall dramatically over time. This transition will achieve the very objectives of austerity programs but it will also be sustainable because it is based on incentives, not imposition.

This way, Iraq will transform from a commune to a market economy with strong incentives for work and economic growth. Disbandment of food rations, state procurement, and agricultural price suppression will revive agriculture and employment. Given the 50-70 percent idle capacity, agricultural output can more than double in a short time span with minimal initial investment. The growth effects will spill over to processing industries and construction, and then to manufacturing and services. The rise of agricultural prices will allow the government to disband compensatory agricultural subsidies for fertilizers, energy, and other inputs and eliminate cross-subsidies and market distortions. Productive incentives and investment opportunities will improve across industries. The budget will streamline. Economic betterment of both rural and urban populations will foster savings, domestic investment, and entrepreneurship.

Gains in employment and income will facilitate civic order and security after the displacement of militias and insurgency. Add oil. Make it benefit all Iraqis.



Oil, sectarian quotas, and family accounts

When Senator Patty Murray from Washington intoned that Usama Bin Laden enjoys support in Muslim countries because he raises funds for their communities and builds schools, hospitals, and housing, her critics chastised her for praising Bin Laden and missed her deeper point. Al Qaeda, Hamas, Hizbullah, and similar organizations created a new economic species of private, non-tax based welfare states financed by foreign charities and international racket. These are parasitic welfare states on both ends. On the demand side, it is foreign aid, voluntary or otherwise. On the supply side, it is idle or displaced populations dependent on this welfare state and available for jihadist activities.

Redistribution of oil revenues between sectarian enclaves and provinces in the Iraqi Constitution may undergird several new such parasitic welfare states exactly in those Sunni Arab areas which already have clusters of idle towns taken over by the jihadist militias. Even apart from the Sunni Arab triangle, regional and sectarian quotas and claims on oil revenues cannot be stable. They invite sectarian extortion, continuous redistribution of wealth by uprising or threat of thereof. Want more, kill more, get more. They perpetuate civil war.

Ahmad Chalabi, the Deputy Prime-Minister of Iraq, advocates an alternative proposal. It is individual endowments in oil fields and revenues, individual accounts in the national trust fund to which oil revenues accrue. This proposal can solve not only economic but also security and political problems. Few forces hold disparate people together like a joint economic interest. This is especially important for artificially created, multi-ethnic, multi-religious countries such as Iraq. Some of such countries sustain (e.g., Belgium and Jordan), others split up (e.g., Yugoslavia and Pakistan, from which Bengali East Pakistan seceded in 1971 and became Bangladesh). Iraq can still go either way, regardless of whether or not it has a constitution, democracy, and occupation.

Any version of individual oil revenue accounts is vastly, indeed vitally superior to sectarian quotas. The obstacles are fiscal and social, or rather their overlap. The budget needs oil revenues to finance a ubiquitous welfare state, beyond food rations, or else levy an exorbitant and explosive tax burden. Abolishing or cutting social programs in a fragile country at a time of civil strife is even more explosive. There is a solution. Call it capital swap. It swaps oil assets for welfare state liabilities. In practice, it exchanges dividends from oil revenues for the voluntary forfeiture of welfare state payments and benefits.

Oil revenues (after investment is fully expensed) split into two flexible accounts. One is the national trust fund and the other is the fund of individual accounts to which oil revenues are credited. The national trust fund finances budget expenditures on private goods such as government pensions, unemployment insurance, disability, socialized health care, health care for the elderly, poverty and emergency assistance, public housing, and higher education. The general budget, financed by tax revenues, covers expenditures on public goods such as national defense, law enforcement, public infrastructure, scientific research, general administration, and basic education. Individual accounts could be used by their owners only for spending on health, education, unemployment, disability, emergency assistance, and retirement

.
Individuals and families have a choice between individual accounts and the national trust fund. If they choose individual accounts, they forfeit government payments for pensions, unemployment, health care, poverty assistance, public housing, and higher education. If they choose government payments for these private goods, they forfeit individual accounts. Individuals can move between the two systems freely during annual enrollments to and from the fund of individual accounts. The total amount of oil revenues every year is divided by the total population to establish annual per capita credit. Then annual oil revenues are allocated between the national trust fund and the fund of individual accounts depending on individual enrollment into the latter fund. The advantage of individual accounts is that they are vested with their individual owners and the balance of income not spent during a given year rolls over to the next year and beyond, can be invested in low-risk securities, and then withdrawn for retirement and/or bequeathed. It is likely that, eventually, most people would choose individual accounts and only individuals with high health and disability expenses would elect to remain on or reenter government rolls. Government expenditures on private goods will decline significantly. Relatively low taxes will be sufficient to finance public expenditures of the general budget.

Owners of individual accounts will become unalienable shareholders of the national oil company or the conglomerate of oil companies, including all oil fields and oil reserves of Iraq, along with the national trust fund which will be the largest shareholder. This ownership type is based on the same principle as the Alaska Permanent Fund Corporation which disburses dividends to all citizens of the state. In Iraq, unalienable shareholding is superior to privatization of assets via distribution of shares to citizens or via other methods. In the spirit of the Coase theorem, irrespective of initial ownership, assets sooner or later end up in the hands of most capable owners. In the presence of sectarian networks, transferrable shares will concentrate, by force, extortion, cajoling, and purchase, in the hands of sectarian militias and jihadist groups, including, by proxy, Al Qaeda and Iran. This will be both dangerous and inefficient because these networks have agendas other than investment, development, and economic growth. In contrast, owners of individual accounts will have long-term interest in investment in physical and human capital, technological renovation, and further exploration and development of the oil industry. Growth of production and productivity in the oil industry will boost production in manufacturing and services and overall employment. Iraq will set on the path to long-term economic growth, the proverbial peace and prosperity.

Oh, we forgot to tell how to win the hearts and minds in the Middle East. Win stomachs and pocketbooks in Iraq. People in the region will see. Win their eyesight, win their vision. That's bigger than hearts and minds


link
The Other Way to Win Iraq

Reading newspapers in Baghdad the day

October 14, 2006

1. Middle East
The first page
1 - Allawi of the "Middle East" : State of the intelligence behind the rumor and conspiracy led by myself, , confirmed that the Saudi leadership was first thought of publishing Arab forces in Iraq.
2 - curfew in Mosul after the attacks Thursday night on government buildings, killing is "the Scorpion". And the discovery of 21 bodies north of Baghdad.
3 - Mecca : the document is concerned with all the elements of sedition. Under al-Sistani, called for the prevention of speech and inciting others heresy.
4-Baker Commission : questions about the ability of the government of Maliki and phased withdrawal, absorb political rebellion among the options being considered.
5-Sadr : Satbra who killed unjustly and Al-Dulaimi scoffed at the warning and wondered : who decides what is right?
6-British Army Commander : Our presence in Iraq is exacerbated security problems. General shells effects of the storm by calling for a rapid withdrawal.
7-renovation 600 paintings damaged by the war and looting.

The inner pages
1-Najaf : Strict security measures to coincide with religious ceremonies.
Two-armed groups threaten schools targeting teachers and students if they did not close their doors and parents of students are forced to accompany their children, complain of the inability of the security services to provide protection.
3-National Accord Movement : the parliamentary session to approve the territories "farce".
4-official : PARLIAMENTARY referendum cornerstone of the legitimacy of the federal system.

2. Morning
The first page
1-Anbar tribes are preparing to fight a decisive battle against terrorists and the coming confrontation in Diyala.
2-Interior announces opening the door to volunteering for nine thousand policemen and Maliki ordered changes in the leadership positions.
3-announcement of the results of acceptance Central beginning of the current week.
4-Under-Sistani calls the Mecca to prevent speech and inciting others heresy.

The inner pages
1-Arab League and the Iraqis call for unity and reject sectarianism.
Two-families returning to their homes in northern Babil Aldairh after controlling the security and food assistance to (120) in the Hashemite family.
Three-completion Iraq to join the United Nations Convention against Corruption.
4-Defense : preparation of infected incident Nu exaggerated and not mortality among them.
5-Basra and Maysan DECLARE tomorrow official holiday tribute to the martyrdom of Imam Ali (p), (20) A security element for the protection of visitors in Najaf.
6 - (10) million for the establishment of academic integrity.
7-Sadr threatens acquitted of nails undercover Mahdi Army.

3. The Constitution
The first page
One-Sadr threatens distancing themselves from the elements attacking Iraqis and Maliki heads a large official delegation to visit mid-current.
2-Unknown gunmen killed (11) persons from the staff of the People channel space.
3-resumption of oil exports from Kirkuk to the Turkish port of Ceyhan.
4-abortive attempt to overthrow the police command center Nineveh by terrorists.
Five small-examine the nature of the regime in Jordan in the next federal Iraq.
6 - The American embassy recognizes the Samurai to the Iraqi government, warning of the danger Iranian and Syrian.
7-Iraqi group, the third announced its participation in the bombing of an American base.
8 - The killing Force Commander Scorpio in Hilla, and help the explosion inside his office.
9 - demands for the dissolution of Al-Qaida sold in Iraq.
10-reactions of the Arab and local law on the approval of the provinces.

The inner pages
1-Organization of the Islamic Conference held between the level of representation of Mecca, the religious leaders in Iraq.
2-Iraqi reconciliation : Non division will externally.
3-s in charge of the protection forces of the Kurdistan agreement with the Iraqi government.
4-France accused of hiding information about the killing of journalist in Iraq.

4. Azzaman
The first page
1-parliamentary blocs exercised great threat in the vote. Parties and the strong and clans : the failure of the draft Territories through to keep a strong united Iraq.
2-Reconciliation Movement : a foreign will, behind the project to divide Iraq.
Three-found the bodies of 14 workers kidnapped in Ad Duluiyah.
4-Maliki to Ankara to allay fears of the Workers Party.
5-arrested 54 armed men in clashes with security forces and continue to raid and search amid curfew in Mosul.
6-Khalilzad accused Tehran and Damascus support groups of death. [] Amr Moussa : Arab League is following developments on the Iraqi arena.
7-Muqtada al-Sadr threatened down the Al-Mahdi Army and dissuasive measures deployment of 20 thousand policemen in Najaf to secure the visit of the martyrdom of Imam Ali (p).

The inner pages
1-Pachachi : Washington is not serious in resolving the militias and part of Americans contributed to a culture of corruption in Iraq.
Two-calls to investigate the assassination of the Director of space and 10 employees.
Three-armed men burst in the police station Hamzah and shooting 10 detainees.
4-Daily : Territories Act to pave the way for the division of Iraq, the commander of British army denies disagreement with Blair on the conduct of war.
5-Skinner did not exclude the American bases in Iraq.
6-resignation of 530 police in the Kurdistan region due to poor salaries.
7-Zebari : call for correcting the course of our relations with Syria and contacts with the neighboring countries to help in achieving security.
8-Barazani : death disbanded intelligence agents ranging from reprimand and punishment.

5. Justice
The first page
1-(100) million for the water project, architecture and 0200) million dinars to the families displaced from seven wasteland. The Council of Ministers decided to amend the salaries of teachers and teachers.
2 Abdul-Mahdi : law and order and the authority of the state must be the prevailing concepts and acceptable to all citizens.
Three-tomorrow. Al-Maliki visit to Turkey to discuss political and security relations.
4-PEOPLE : Law of the Non Imad Iraqi constitution and criticized the attitudes of some political parties.
5-Sheikh Jalal Al-Din small discuss in Jordan deal with the Iraqi security services.
6-Anzi : Iraqis now have the ability to maintain the security file.
7-Al-Najaf, preparing to receive seven million visitors on the occasion of the martyrdom of the prince of believers (p).

The inner pages
1-[[Ayad Jamal Al-Din : statements of the Chief of Staff of the British Army and political.
2-Skinner : report published on the number of victims contains figures inflated and unreasonable.
3-Eminence, Mr. Hakim discuss with Dr. Chalabi's political developments and met with Iranian Ambassador.

6. Life
1-army commander asked the British withdrew and criticized the policy of the post-war ... General shells smacked face to the American-British policy in Iraq
2-Friday preachers claim politicians to set aside their differences and seek to stop the violence ... Alkerblai calls the Mecca to prevent the speech inciting «»
3-Shiite and Kurdish leaders see federalism as a matter of fact «», «» the Association of Muslim Scholars, considered approval «» black days.
4-found 21 bodies and strict security measures in Najaf ... Killing is Scorpio »« forces at his office in Hilla, an American soldier.

7. Fraternity
The first page
1-AMERICA warn of the Syrian and Iranian threat in Iraq and the U.S. Supreme Commander describes position Balsob and complex.
Two-increasing teacher salaries to 200 thousand dinars a minimum.
3-president of the Cordstan : all parties worked diligently for the success of the reconciliation process.
4-Prime Minister to visit Turkey tomorrow, Sunday,.
5-President territory Cordstan receives British ambassador in Iraq FBI.
6-government spokesman denies the martyrdom of 650 thousand Iraqis since the fall of the former regime.
7-George Bush : United States would continue its mission in Iraq despite the difficult times.

The inner pages
One-on Skinner announced the allocation of 200 million dinars for the families displaced from the city of seven undeveloped.
2-Minister of Municipalities denounce the assassination of Lieutenant-General Amer Hashmi.
3-integrity complete the accession of Iraq to the United Nations Convention against Corruption.
Four-car bomb targeting the banner of Sulaymaniyah.
5 - Thirty-seven million grant from the World Bank to rehabilitation centers for the disabled.

8. Orient
The first page
1-American forces to remain in Iraq for four more years. And until further notice.
Two-Muslim scholars and Allawi criticize draft Territories.
3 - The killing is dedicated to Scorpio in Babylon by the bomb planted inside the library.
4-Sadr threatens distancing themselves from their supporters in the state have committed excesses.
5-split inside the base. A leading calls Bin Laden to a sold Abu Ayoub said.
6-Unknown gunmen burst in a police station in Diwaniyah and failed to release the 11 accused.

The inner pages
1-Phen : There is no need to increase American forces at the present time.
Two-strong Iraqi Shiites look to the federal law categorical legal and political response.
3-Zebari reveals an invitation to the Syrian foreign minister to visit Iraq.
4-Pachachi advised the year : strong participation in the elections and the constitution will not be contrary to their own interests.
5-British army commander raises a storm by calling for the withdrawal of British forces from Iraq.
6-Prime Minister to visit Turkey tomorrow.
7-staff People were killed as they slept. The Executive Director denied that Libya funded.
8-grant Eid SCARES Iraqis from high commodity prices.
9-Under-Minister of Finance : the rise of salaries and wages by 90% from last year.

9. New Sabah
The first page
1-Increasing the salaries of teachers, teachers and meal allowance to employees of the police.
Two-official spokesman denies the killing of 650 Iraqis since the fall of the previous regime.
3 - The American embassy re Samurai to the court.
4-Khalilzad accused Iran and Syria support armed groups.
Five-British Army Commander : OUR lead to the aggravation of the problems in Iraq.
6-Maliki Honors Civil batch contingency Wasit first.
7-economic expert : the high rate of the dinar as a government policy to curb inflation.
8-martyrdom is the Scorpio in Hillah.
9-Arbil airport receives the largest transport aircraft in the world.


The inner pages
1-Talabani attributed the death of his brother, Hamid Darwish.
2-Muqtada al-Sadr denies the totals of the Mahdi Army attack on the Iraqis.
3-39 killed an American army during the month.
4-Secretary of the assassination of Islamic Unity Party and is the center of Hilla, Scorpio.
5-Barazani : death accused of spying ranging from reprimand and punishment.

10. European
The first page
One element of the ten-Tawhid and Jihad surrender to the rescue of Anbar.
Two-Maliki a commission to reform the ministries of Interior and Defense.
3-convening of the Mecca linked to the level of representation of the religious leaders in Iraq.
4-Muqtada al-Sadr warns of the Mahdi Army assault on the Iraqis.
5 - Beckett questioned numbers of victims Iraqis.

The inner pages
1-President Hamid Darwish Talabani attributed the death of his brother.
2-s in charge of the protection of Iraq's Kurdistan region.
3-assassination and death of a number of workers and the bombing of the popular channel American bases in Ramadi and Dhi Qar.
4-beacon hunchback is threatened with collapse.
5-United Nations Coordinator for Humanitarian Affairs : one hundred thousand Iraqis killed and moving day.
7-American chief of staff confirms that the strategy of his country subject to revision, and his calls for the withdrawal of British troops from Iraq.
11. Long
The first page
1-trade : more than 25 million people are covered by the ration card.
2-forces commander killed in Hilla, Scorpio and the attempted assassination of the police commander of Babel.
3-send a military force to secure seven wasteland and re-displaced families.
4-[B]announcement of the results of acceptance of the Central early in the week.[/B]
5-thwarting attacks to control the building of the governorate and police headquarters in the Nineveh.
6-increases and additional allocations in the salaries of teachers and teachers.
7-arrest of a suspect in the killing of family members of Samawah.

The inner pages
1-arrested 13 terrorist suspects and 50th in different areas and found 14 bodies of construction workers in Dhuloeya.
Two-American army : There is no need for additional troops in Iraq.
3-Hamzah storm the police station and bombed a camp Echo in Diwaniyah.
4-Hakim, Chalabi and receives ullage condition.
5-sit Shiite stay in Karbala for the removal of the Director and the various investigations.
6-the Association of Muslim Scholars, a Sunni stay Accuse American forces killed Endowments director of Ramadi.

12. The statement
The first page
1-Prime Minister will fly to Turkey tomorrow to discuss common issues.
2-martyrdom Force Commander Scorpio and assist in Babylon.
Three-Cabinet Decides : Almamlin and raise the salaries of teachers and minimum allocations granted 30 thousand dinars.
4-government source : whichever Samurai, however, Iraqi police now.
5 :60-defense troops only subjected to a poison Nu.
6-assassinations and terrorist threats paid clerics and imams of mosques in Fallujah to emigrate.

The inner pages
1-BAATHISTS killed French photographer Fred buried in Iraq.
Source : 2-arrest of two princes Tawhid terrorist group in Arbil.
3-distribution of three thousand residential plot of land in Dhi Qar.


In the following the most important Honduras editorials and opinion articles for today :

Press reports

One-Shiite and Kurdish leaders see federalism as a matter of fact «», «» the Association of Muslim Scholars is a black day approval «»
Baghdad-Abdul Wahid Tima (life)
Sources told Shiite and Kurdish «life» «The federation endorsed and become a reality for everyone and to deal with this issue seriously», It demanded the provinces of Basra and Nasiriyah to exploit the period of deferment applied for the preparation of qualified cadres of the Department of Territories, campaign awareness of the new system. She described «» the Association of Muslim Scholars, on the vote on the federal law b »« Black.
The deputy said the novelist leadership of the Party «» Islamic advocacy told «life» that «all Iraqi forces and government departments dealing with the reality of federalism after the law was voted upon in the House». He pointed out that the objections came from the federal «votes is not a new tone here since the writing of the Constitution». And the forces rejecting the allegations of two kinds : «I illustrates that the Federal monopolize wealth and hegemony on the sources, This refuted the theory of the Constitution when it addressed the issue of wealth distribution and outlined with the adoption of population density basis for this. The second play card of national unity and trying to incite public opinion emotionally, and pictures of federalism project for the division of the country. This is not true, that the project, which was submitted to parliament does not affect or threaten national unity, it also ensures that all Iraqis to confront the dictatorship and authoritarianism ».
«Promised to rule the distribution of wealth in the Constitution column Iraqi economy and the rule of federalism is to build vertical distribution of authorities». Making light of the importance of questioning the legality of the parliament during the vote, «The amendments to some of the paragraphs of items law at a meeting of representatives of blocs Minutes before the meeting, in deference to the wishes of one of the lists. The quorum required 138 deputies, while 140 deputies present, we need a simple majority to pass the project. That has happened. The official record of the meeting exists ».
The Kurdish MP Aref Tevor, Second Deputy Speaker of Parliament, objections to pass a federal law «» inappropriate. He said in a statement to «life» «that the fundamentalist actions and legal meeting, which was preceded by a meeting of heads of blocs». He called «those who question the legitimacy of the voting law to provide legal justification away from the political rhetoric and emotional», He pointed out that the federation and the reality of the rule of law is not subject to objection, except observations of the right to the Presidency made before endorsing it, and even if not ratified, after 15 days is effective ». In Basra, Sheikh Abu peace Alsaidi, a board member of the preserve, a «divisions in the Council on the type of federalism that will be chosen. There are three views : the Supreme Council-and-formations calling for the designation of Basra and the southern governorates and Furat one territory, representatives of the party «invitation» CALL FOR ANNEXING preserving the territory of the three provinces with Nasiriyah, Amarah, With members of the Council will embrace of the Virtue Party «» the idea of establishing a federal system of Basra alone, as a first stage, After a period of the experiment are evaluating, and if successful with significant enrollment in other provinces and one territory ».
He did not conceal Sheikh Ahmed Ali, deputy governor of Nasiriyah, concerned staff time and expertise, and their impact on the fate of the new experience. He stressed in a statement to the «life» «need to create efficient cadres capable of assuming the responsibility of the administration of the territory, and the importance of good preparation on the political level to avoid the failures faced the provincial administration after the fall of the former regime, was hauled shares sectarian elements inefficient in administrative positions, including security institutions. As reflected negatively on the performance and rampant corruption, which has become the scourge plaguing the country and its economy », He called on the government to exploit the postponement of the application of the federal 18-month told «opening sessions of intensive training for all disciplines, The preparation of cadres capable of assuming the new responsibility ». He pointed out that «current programs implemented by international organizations on the federal programs are not useful and fruitless so far has failed to produce anything».

Translated version of http://www.iraqipresidency.net/index.php?language=arabic

Originally Posted by rodney ewalt

No doubt, this would fuel a spirit of cooperation with the Iraqi people but I thought that this was already part of the overall plan. If it is not then, I don't think anything will work apart from this. All Iraqis must benefit directly from the oil revnues or there will always be resentment.

Having said that, I also think that more should be and could be done militarily to eliminate the violence from the insurgents. I think that everyone being pacified through a share in the oil revenues can go a long way in squelching the violence and I think this should be done immediately but at the same time perpetrators of crime and violence must know that it is not in anyway to their advantage to take matters into their own hands and that doing so will result in their death with no benefit to loved ones left behind.

Frankly, I can see how a revalue should and could make all the difference but at the same time it's hard to see how they will revalue before the insurgency is dramatically reduced. This is a major impediment to all progress to peace and prosperity in Iraq.

I am ever hopeful for a revalue soon but I'm concerned that it may be delayed indefinitely as long as the insurgence are permitted to continue their disruptive obstructions.

I agree rodney. It appears to me that if they don't r/v this month it is going to be a long wait... into 2007 at the earliest. Why? It would probably set off a civil war if they receive their checks for 10k dinar or about $6.80 next week and then at the end of the month or Nov all of a sudden it is worth $10k. These people are already P@@@ed and starving. They are selling themselves as human bombs in the hope the 100 bucks the insurgency gives their family will allow them (their families) to survive a little longer. Inflation is rampant, their 10k dinar "blessing" becomes a "curse" because the market prices raise to offset the "blessing" but doesn't come back down once the 10k dinars are gone resulting in higher prices.

Meanwhile in some safe location probably Europe, some fat cat multi millionare banker bureaucrat just sits back and lets all of this misery continue. "According to my spreadsheet on the Iraqi economy, 500 points line up the way they should but there are 2 or 3 I don't like, so I am going to continue to say no to the r/v until these last 2 or 3 come in where I think they should be." So until the cbi gov. gets the ok from the bureaucrats overseas, the everyday normal Iraqi citizen continues to suffer needlessly.

According to one of the trillion news articles published in the last week, the "acutual" not "program rate" of the dinar is probably around $1.60 = 1 dinar, not $1 = 1470 dinars. If the average Iraqi citizen ever caught wind of how they are being played by the bankers, the whole place would explode IMHO. So hopefully the fat cat banker bureacrats will give the ok and they can finally get their r/v that they so desperately need. My hat is off in respect to SGS who logically has derived what should have happened already concerning the r/v several times already. I hope that this is the month for the r/v or else some really bad things might happen that would cause considerable delays IMHO. To the fat cat bureacrat bankers out there, How long must the average Iraqi be made to suffer? If you really want the insurgency to die down and stablility to take over, then quit playing your money games and let the r/v occur like it should have already!!!

worf

The trade exchange at Safwan border outlet witnessed an increase in its normal rates. Mr. Khalid Azzeidi, director general of the outlet, attributed the reasons for this increase to the goods supplying processes for the benefit of the State ministries in accordance with the orientations of the government to import materials used in the process of building the infrastructure of the country.

The import ratios rates are expected to continue rising during the next two months. He also explained: imported materials that are exempt from customs duties include all building materials, electrical power generators, water purification plants, productive cars, tourist saloon cars imported specially for municipal services and the reform of the electric power networks.
He added: The rates of import rose to more than 300 trucks per day and that their entry through the outlet has been going on according to a plan prepared by a coordinating body in the Green Zone. As for the revenues of customs duties in the outlet, he stated that the fees collected from non-exempt materials of the customs duties rose about three million dinars per day compared to previous months and the total amount of fees is estimated by seven billion dinars per month, deposited in the accounts of the Ministry of Finance being the authority entitled to deal with it.

Source: IMNSR