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

620 ktar.com Hayworth Says Only Acceptable Outcome in Iraq Is Victory




Hayworth Says Only Acceptable Outcome in Iraq Is Victory
October 31st, 2006 @ 11:14am
by Doug Ramsey/KTAR
Republican J.D. Hayworth makes no apologies for supporting the Bush administration Iraq policy.

Hayworth says the only acceptable outcome is victory.

Like President Bush, Hayworth says the U.S. needs to finish the job and defines it this way.

"An Iraq that can govern it's own affairs, an Iraq that can protect itself and an Iraq that is in a climate that can lead to it's own prosperity," Hayworth said.

Hayworth is locked in a tight battle for re-election to congress from the Northeast Valley's district 5 with Democrat Harry Mitchell.

What is the significance of Nov 7th and 8th?

Originally Posted by CharmedPiper

(Voice of Iraq) - 10-31-2006
This issue was sent to a friend

Baghdad / Daud Salman
Committee continues to compensate Martyrs bridge the distribution of grants owed to the families of minors in Sadr City. Said Kadhim Qarishi member of the compensation of martyrs in the municipal council in the city and said that the committee is eager to deliver grants to eligible applicants as soon as possible and added that the committee had distributed 150 of a total of 318 treatment of minors. He explained that the remaining transactions will be completed within the coming days, the service of the affected families, particularly those who are minors or who have no dependents.
Long

Were these in checks also? I ask because from what I read on this, those grants amounted to about 6 BUCKS also!!! What an insult to those families who have lost loved ones!

Cheers!
DayDream

Kimmet stated "compact can be concluded". There will be a ministerial meeting in mid-December. Iraqi currency is stable. They are producing oil at pre-war levels. Compact includes important political and economical effects including detailing how the hydrocarbon law will divide oil proceeds among regions. I was looking for article VIII being signed....anybody hear it.

Originally Posted by goldraker

Posted by: Bohica

I do not have a link. I saw this on PBS last night. Economist Eric Davis of Reutgers University was interviewed by Ray Suarez and he said that, he and six other Economists whom are Iraq or ME economic experts met with GW and reccommended for Iraq to truly succeed they need to deal with the economics of Iraq and not just the security. He stated security has been proven to be squelched when the economy begins to thrive. One sure and proven method of that is a Marshall type plan.(I like this guy) He stated that the marshall plan would work and even more quickly than Germany because of the interest in the Oil reserves. Seemed very poss. and sure that it would work with very little effort. He stated once the plan is in place the primary people affected are the 18-25 y/o demographic in terms of unemployment. If you have a little jack in your pocket you don't feel nearly so inclined to blow yourself up. He and the other economists were invited by the Whitehouse to aid in the evaluation of what is neccessary in the Iraqi region for success. For what it's worth, just thought I would include this as one more thing being offered through the media that is a plus from our standpoint.

Online NewsHour: Conversation | Economic Development in Iraq | October 30, 2006 | PBS


Randy

Many states ready for extending more financial support to Iraq - Saleh http://www.kuna.net.kw/home/Story.a...=en&DSNO=917381

At a news conference after wrap up of the International Compact with Iraq (ICI) meeting hosted by the State of Kuwait, Saleh said Saudi Arabia expressed readiness for forwarding USD one billion as grants and loans in addition to USD 500 million as facilities to the Iraqi businessmen and private sector.

Quote:
Originally Posted by ronbo

The bank will maintain Marazi Iraqi on the other tracks in Ceasix cash efforts to achieve intermediate goals for reducing inflation and contain inflationary expectations, relying on "stabilizing nominal" cash Aatar Yazzmen rate of the Iraqi dinar against the dollar and boosted the purchasing power of the Iraqi dinar to move across the tracks and cash assistance in inflation targeting. As imply afor Ihalanange cash adopted by the World Marazi Iraqi Without doubt on the link between climate and means of monetary policy,whether in the area of interest rates or exchange rates on one hand,The stability of the general level of prices on the other hand promised the Association of tasks President underlying the Marazi Bank in the implementation of its goals to maximize the purchasing power of cash income and the strengthening of the capacities of the country coffers in a way that achieves the objectives of economic growth in the long term.

Just a thought here.
Does anyone find it feasible that they would rv at the Aatar Yazzmen rate of I think it was $3.67? I know, me either, but think about this - Goverments are holding large amounts of dinar, in turn they will have boatloads or 747's of money to buy the oil with. Also if they did rv at that rate think about how much money the US alone would get in taxes! And the taxes would not be just a one time deal because we would not spend all of our $ in 1 year. So we would pay taxes on it as long as we draw interest on it. Does this make sense or am I way off base?

Originally Posted by shotgunsusie

first of all, i dont think there was a confirmation of this information about that rate or that it is what they were refering to in this statement.

im sure they can put any amount on it they like because we all know they can easily back whatever they pick. the issue is the big investors coming in and buying what we sell off. will they be more likely to buy in en masse at a buck or two or do you think they would still be interested at over three fifty?

my guess would be they will be falling all over themselves at two fifty even. i mean look at the countries around there that dont have half of what iraq has in natural resources and their rates. kuwait would love to be iraq and they are over four bucks already for god sakes!

I posted a while back about the Yazzmen Rate and thought I would expound on it a little more. The Yazzmen Rate is also referred to as "Hawala Rate"

The history of hawala:
Hawala predates 'traditional' or 'western' banking (the first 'western bank' in India was the Bank of Hindustan, established in Calcutta around 1770) (15). Prior to this, the operations of sarafs and potedars (see appendix A), who were primarily moneychangers (and essentially the predecessors of the hawaladars discussed in this paper) were a fundamental component of the commercial and financial infrastructures.

Contrary to some accounts, hawala did not begin during the Vietnam War. It was, however, during the Vietnam War that many Americans were exposed to hawala through the operations of Indian merchants in Saigon. Americans often took advantage of their hawala service to remit money.

Today, hawala and 'traditional' banking exist as parallel, but intertwined, economic systems in India and Pakistan.

The Role Played by the Hawala System:

The hawala system was the most common informal payment system used in Iraq under Saddam. The Iraqi Regime encouraged its citizens in Iraq and abroad to open accounts in foreign currencies at Iraqi banks in order to track funds that were traditionally transferred through informal payments arrangements. The reliability of the ancient hawala system came from trust and the extensive use of personal connections and family-tribal relationships. In its simplest terms, an individual desiring to transfer money exchanged cash for a hawala note, often coded or secretly marked to foil potential counterfeiters. This note would then be transferred to the other party via mail or courier. The party on the other end of the transaction then presented the note to an associated exchanger in their country, who converted the hawala note back into the appropriate cash specified in the note, minus a handling fee. In modern times, the use of e-mail, faxes, and telephones have made these private cash transfers almost instantaneous and nearly impossible to trace or regulate.


Before OIF, there was no regulation of the hawala system in Iraq and the use of them was outlawed. Regardless, illegal hawalas were often used by the average Iraqi individual or company to transfer funds from expatriate communities to the homeland. The illicit system is reliable and efficient and is preferred because it is faster and less expensive than bank hawalas.


The speed is due to the lack of paperwork and bureaucracy, while the cost effectiveness is due to not having to deal with a bank’s artificial, higher exchange rates. However, the anonymity and lack of traceable documentation make this system vulnerable to abuse by individuals and groups transferring funds to finance illegal activities.

For example, in order to import goods, a letter of credit was normally needed from a bank in Jordan. To get this, the Jordanian bank would need some cash. Because it was illegal to transfer cash out of Iraq through the normal banking system, the illegal hawala system was used to move the money.

The hawala system was positive for the economy because it reduced the liquid cash within the economy and helped counter the effects of inflation. Hawalas were eventually legalized and regulated by Saddam in an attempt to reduce smuggling and help stimulate the economy.

The Hawala

The term “hawala” means “transfer” or “wire” in Arabic banking terms. The word hawala comes from the Arabic root hwl, meaning to “change” or “transform.” In common Arabic usage, hawala are performed in three different ways—two of which are legal:


Hawalas through Iraqi banks are synonymous with bank money transfers. Bank hawalas are legal.

Illegal hawala transfers are based on an ancient informal banking system used throughout South Asia and the Middle East to transfer money across distances past legal and financial barriers. In modern times, unlicensed money exchangers use this process, coupled with modern telecommunications to discreetly transfer money.

Hawalas made using the old process via licensed money exchangers are considered legal. Not all money exchangers perform hawalas.

A hawala pricing scheme:
In this scenario, Abdul wants to send 100,000 rupees to his brother Mohammad. This differs from the previous scenario in that he wants to send a fixed amount in rupees, rather than dollars.

The Bank

The bank gives the official exchange rate for rupees (for the purposes of this paper, that is assumed to be 31 Rs/$) and charges $25 for the exchange. The cost of the 100,000 rupees would be $3,125; adding the $25 fee brings the total cost of this transaction to $3,150.

The Hawaladars (Iqbal and Yasmeen)

Iqbal offers his usual rates: 35 rupees for a dollar and five percent commission. The rupees will cost Abdul $2,857, Iqbal's fee is $142, for a total of $2,999.

Yasmeen also offers her typical terms: 37 rupees for a dollar and a fee of one rupee for each dollar remitted. The rupees will cost Abdul $2,702 and Yasmeen's fee is $73. At $2,775, Yasmeen still has the best deal in town!

For more information here is the link:

Money laundering - The hawala alternative remittance system

Money laundering - The hawala alternative remittance system

Hope this helps to understand what the Yazzman Rate quoted is all about.

Cheers!
DayDream

Have mercy at this rate I'm NEVER gonna catch up on my reading....too many interesting things happening!!

PREPARATORY MEETING FOR THE INTERNATIONAL COMPACT WITH IRAQ

US Deputy Secretary of the Department of the Treasury Robert Kimmit, after a short into and a speech, Ole Bob has some neat things to say!

A must hear, but his speech is in English so all the American can understand okay, but those living outside the lower forty eight will need some assistance! Ha ha, just joking!!

The sweet lady had brought this up earlier and I was napping after being beat up by work!

Sorry, I just passed out!

Thanks for the info Day Dream.

2B

What is everybody so excited about?
























Oh, you know the end of this adventure is almost over.