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

This is probably the most important statement I have heard come out of Iraq. This tells me they finally GET IT!!! They made fantastic progress in democracy with the verdict on Sunday...It was highly predicted that there would be alot of violence following this and from the articles that I have been reading today they are very surprised as they lift the curfews that there is a calm...and very little violence. Now is the time to address the economy and make radical changes to show the Iraqi's that they are a wealthy nation who has just been suppressed by a horrible dictator who mismanaged their country. My opinion is that they will revalue this currency (hopefully today Tuesday) giving the people purchasing power not to mention lifting the burden and fear of starvation and poverty. All of this will give the Iraqi's a sense of accomplishment and hopefully begin to have faith in their own government. Okay, I have run on here long enough. I just get so excited when I see that they finally see what we do!!!

Inflation is not caused by one single factor, but it is an indicator of poor Iraqi economy a whole.

Not sure this has been post, so here it is.


A milestone for Iraq
02/11/2006
Source: Gulf Daily News
Bahrain has been chosen by Iraq to host its first overseas trade show next year, centring round its $100 billion rebuilding programme.Gulf Iraqi Expo (GIX) will be held from March 24 to 26 at the Bahrain International Exhibition Centre.

The expo is being organised by the Iraqi Ministry of Trade - State Company for Iraqi Fairs and I-vision for PR and Media, in association with Bahrain-based Magnum Events and Exhibitions Management (MEEM), a division of Magnum Holdings Group.

It is the first overseas trade show organised by the Iraqi government, said Iraqi Ambassador to Bahrain Ghassan Muhsen Hussain.

"We have chosen Bahrain to hold the first show because of the long-standing brotherly relations between our two countries," he told a Press conference at the Diplomat Radisson SAS Hotel.

"Bahrain has been at the forefront of Gulf states offering its assistance to war-torn Iraq, especially in the areas of health, banking

and finance.

"We are also convinced that Bahrain, which is at the centre of financial and economic activities in the region, is the ideal choice for such a major event of our government."

Mr Hussain said his government had allocated a rebuilding budget of more than $33bn for next year, in addition to more than $18bn in international donations.

"However, the total requirement for reconstruction of Iraq is estimated at $100bn," he said.

Magnum Holdings Group and Unitag Group chairman Jamil Wafa said the show, which has been endorsed by Bahrain Chamber of Commerce and Industry (BCCI), would attract some of the leading companies in the region.

"It will pave the road towards co-ordination and huge investments. It is a milestone in Iraq's progress towards new business opportunities," he said.

"More than 12,000 attendees from Iraq and the Gulf region, with more than 900 brand names, will meet 300 decision-makers from the Iraqi government, representing 28 Iraqi ministries.

"It will cover all governmental and private sectors in Iraq and more than 1,250 businesspeople will be able to directly interact and achieve business agreements."

Mr Wafa, who thanked the show organisers for choosing Bahrain to host such a mega event, said they would meet Industry and Commerce Minister Dr Hassan Fakhro today.

They will also meet BCCI chairman Dr Esam Fakhro on Saturday.

I-Vision Group chief executive officer Murtada Kamal said the facilities and hospitality offered to Iraqi people from public and private sectors in Bahrain, especially in travelling and visa permissions, made Bahrain one of their most favoured Arab countries.

"Bahrain's reputation as a liberal and modern Gulf state has made it a favourite place for travellers in the region," he said.

"Due to its strategic location, in the middle of the Gulf countries, it is easier for people in Iraq to travel to and from Bahrain."

Mr Kamal said hundreds of exhibitors from around the GCC countries and other parts of the world would take part in GIX.

In addition to the majority of private exhibitors, most Iraqi government agencies (ministries and organisations) will also exhibit and be available to answer questions for both exhibitors and attendees, he said.

As part of the trade show, the GIX management will be organising a business conference aimed at providing information and educational modules to participants.

Featured speakers will include foreign experts on industrial and trade sectors, Iraqi ministers of trade, industry, finance, agriculture, oil and planning, and representatives from the Coalition Provisional Authority, and official representatives from the Kurdistan region.

l The Iraqi Ambassador yesterday said that an air-transport agreement will be signed with Bahrain soon, to start flights between Manama and Baghdad before the year-end.

Iraqi Interior announced the lifting of the curfew in all day

06 / 11 / 2006 18:13 (GMT)

Interior Ministry announced the lifting of the curfew, the Iraqi part today in Baghdad and the provinces of Diyala, Salahuddin, With the lifting of the ban will be full by dawn tomorrow, Tuesday.

The spokesman for the Ministry of Interior Brigadier General Abdul Karim Khalaf said that the curfew imposed on the infantry yesterday due to the issuance of the death sentence for former President Saddam Hussein and some of his aides in the case of Al - has been lifted today.
The Khalaf told "Radio Sawa" The curfew will be fully public tomorrow morning in Baghdad and other governorates embargoed :

On the other hand, Deputy on the Iraqi front for national dialogue Mohamed Aldaine curfews violating legal and constitutional.
He said in statements made by today, Monday, that Iraqi law stipulated that it may no authority in Iraq except for the legislative authority to take such decisions are therefore illegality committed by the government.
He added that the emergency law which ended its work is another legal violation had been perpetrated by the government of Al-Maliki, therefore, they had committed errors in that one.

An Oil Rush in (Yes) Iraq
The Kurds may be sitting on buried treasure, and foreign firms want to do business
06/11/2006
Source: USNews
In a small townhouse in the financial district here, a high-ceilinged room is packed to capacity with oil executives in dark suits. They are men from all over the world, representing some of the largest multinational oil companies, and they sit in rows like schoolchildren, assiduously taking notes. At the front of the room, the minister of natural resources from the Kurdistan Regional Government in northern Iraq is speaking, his English fluent. On the wall behind him is a large map of potential oil fields in the Kurdish region and the beginning of a PowerPoint presentation that reads, "Oil Can Be a Source of Stability."

The government of Iraq may be far from ready to welcome foreign investment into its oil sector right now but, like it or not, the Kurds are moving ahead. While the government in Baghdad is still haggling over its petroleum law and violence wracks much of the country, the Kurds are about to pass their own oil law. They have already signed contracts with a handful of foreign oil companies, and they're aggressively wooing more. The question now is whether these attempts to sign separate contracts, establish a parallel legal regime, and attract much-needed foreign investment will be a source of stability or instability in a country that knows far too much of the latter and very little of the former.

Money. The dispute over oil goes to the heart of the political debate in Iraq. The Kurdish region, currently the only autonomous region in Iraq, has enjoyed self-rule since 1991. Earlier this month, the Shiite-dominated parliament in Baghdad passed a federalism law, allowing other regions to be formed-but not for another year and a half. The law was hotly debated because although the Shiites would like to create their own zone in their oil-rich heartland in the south, the Sunnis fear being left with only an area in resource-poor central Iraq. An agreement empowers the federal government to receive all oil revenues and redistribute them to the regions according to population and "needs."

But the real question is who gets to sign the contracts and manage the fields. And on this point the Kurds won't budge-Iraq's Constitution, they say, gives them control over so-called future fields (existing fields are controlled by the central government, and the fate of those in Kirkuk will be decided by a referendum next year). "In management of new fields, we are adamant that we will not share with federal authorities," says Ashti Hawrami, an English-trained petroleum engineer who is the new minister of natural resources. "Planning, coordination-no problem. But who has the right to write contracts? We can consult with the center, but the ultimate authority lies with the [Kurds]."

High-level jabs have already been exchanged over the issue. The Iraqi oil minister, Hussain al-Shahristani, has insisted publicly that contracts signed by the Kurdish regional government must be subject to the ministry's review. In response, Kurdish Prime Minister Nechirvan Barzani issued a statement that many interpreted as a threat of secession: "The people of Kurdistan chose to be in a voluntary union with Iraq on the basis of the Constitution. If Baghdad ministers refuse to abide by that Constitution, the people of Kurdistan reserve the right to reconsider our choice."

Iraq has the third-largest proven oil reserves in the world, with an estimated 115 billion barrels, and oil companies have salivated over the country's potential since Saddam Hussein's regime fell in 2003. According to the U.S. Energy Information Administration, 90 percent of Iraq's regions are unexplored, with only about 2,000 wells drilled, compared with about 1 million in Texas alone. But the industry has been in terrible shape for the past 20-some years. International sanctions against Saddam's regime meant that the infrastructure was not upgraded. Oil experts think that if international expertise were brought in and facilities modernized, Iraq could produce up to 4 million barrels per day (which is what it produced in 1990, before the invasion of Kuwait). "Iraq's entry into the market will change the entire global oil game," says Ed Chow, a longtime oil consultant who used to work for Chevron.

And that is what is so tempting for the oil companies. In the London townhouse, after the presentations, the questions come quickly from the audience, as much flattery as inquiry. "Congratulations," one oil company rep tells Hawrami. "When can we come negotiate with you?" His answer: "It's first come, first served. We welcome entrepreneurs, but we want structured companies with experience, who offer something we don't have ourselves."

Reserves. Oil companies say that though there are no producing oil fields in the Kurdish territory, initial exploration has shown geological structures similar to large oil fields in other parts of Iraq. The Kurdish government claims 25 billion barrels of proven reserves in the north, plus 20 billion barrels of potential reserves. A Norwegian company, DNO, began drilling last November and discovered its first well this spring. While there is much more oil in the south, the violence there prevents those reserves from being exploited now.

The Kurds themselves marvel at the change in international reaction to their advances. "Five to six months ago, no one would shake hands with a Kurd," says Hawrami. But in May, the Kurdish government created the Ministry of Natural Resources and appointed the minister. In July, Kurdish legislators passed an investment law, which spells out foreign investors' rights. And last month the Kurds published the final version of their own petroleum law. The regional government intends to move it through the Kurdish parliament this month-despite being asked by the United States to hold off for the sake of national reconciliation. The Kurds have signed four contracts with foreign oil companies, and the government's website says it "expects a large-scale licensing round following the passage of the act."

Downstairs, over bites of salmon and pasta, the oil executives feel one another out warily. One congratulates another on a just signed production-sharing agreement. Another group discusses options for doing seismic testing in Kurdistan (there are only two operators there now, both Chinese). Representatives from two major oil companies chat with a British government official. One was preparing to go to Kurdistan but decided to stay in order to meet with Hawrami. "What stage is the central government at with its petroleum law, anyway?" one asks. "I'm not sure," answers the other. "I guess if there's a conflict, that would make things complicated."

That's the consensus view. The U.S. government has expressed concern about companies investing in Kurdistan before the rest of Iraq is ready. "If the Kurds pass their own law, it definitely complicates things-the opportunity for cooperation probably diminishes," says one senior U.S. official. "But it's a great negotiation tactic-you offer something up that's your ideal and then go from there."

To the Kurds, however, their law is most definitely not just a starting point. In fact, though they are involved in the negotiations over the central hydrocarbons law, Kurdish officials say it will not mean much to the region. "Not for investing in Kurdistan, it doesn't," says Hawrami. "But it does matter for the Kurdish people, because we need our fair share of revenue from the rest of the regions!"

So the companies are going with what is available now. Hawrami comes into the room after having had private discussions with one company and is instantly mobbed. Tibor Szatmari, the CEO of a Hungarian oil company that is the largest in Central Europe, waits to talk with him. When he gets an opening, he thrusts his company's annual report into the minister's hands. He admits that he's desperate to get one of these contracts. "If you wait until the situation is absolutely clear, you'll never go," Szatmari explains. "So you take a calculated risk."

Especially if you don't expect to be entering Baghdad anytime soon. "There's a paralysis in the central government," says one former senior U.S. official who quit to start a company that is now investing in Kurdistan. "It's the cultural baggage of the old regime-no one can make a decision without consulting the top guy."

So what's next? A mess, perhaps, as the Kurds press ahead despite Baghdad's explicit protests. Hawrami finishes his presentation on an upbeat note-and just the hint of a threat. "We will soon be awarding new contracts, perhaps on the strength of the new law," he says. "If you come to Kurdistan, we guarantee that you can go to Basra and work as well. After all, who's going to block you?

Foreign banks in Iraq soon
06 November 2006 (Bahrain Tribune)

The central bank of Iraq is considering licensing several foreign banks to operate within the country, mostly in the region of Kurdistan, Sinan Al Shabibi, the bank's governor, said yesterday.

"There have been some applications to operate in northern region of Kurdistan, but their eyes are on Baghdad eventually," Al Shabibi told Zawya Dow Jones in an interview.

Al Shabibi said that the bank is considering several Turkish and Lebanese banks, but declined to disclose the names of the banks.
The Iraqi government licensed six foreign banks in 2004, including the National Bank of Kuwait, Arab Banking Corp., HSBC and Standard Chartered.
However, only Arab Banking Corp. operates a fully-fledged branch in the country as the rest chose to enter Iraq via a local partner.

"Because of the security situation, most join forces with local banks. There are a lot of banks that have expressed their interest Iraq, but they are waiting for the right time," said Al Shabibi.
The country also has six state-owned banks, the biggest of which are Rafidain and al Rasheed.

Al Shabibi hopes that Iraq's banking sector will be strengthened as it opens up to foreign banks, as they bring capital, modern banking systems, technology and management.

The government is also pushing for 25 private banks to merge.
"Our idea is to have some kind of minimum capital for banks, at least 20 billion Iraqi dinars. Some of the very small banks which do not have the capacity will have to merge, otherwise they will have to raise the capital alone," he said.

The central bank wants private banks to participate more in the country's economic activities, and for the country to be less dependent on the Trade Bank of Iraq, which is financed by a consortium of foreign lenders such as Citigroup and JP Morgan. It provides financing services Iraqi banks are unable to offer.

"We would like the government's import activities to be more diversified. We want all banks to participate. This is our policy for the future. The Trade Bank is doing fine, but we don't want to have to be completely dependent on that," he said.

Al Shabibi said the central bank is currently succeeding in its fight against inflation.
"We are using the interest rate and we sell our own bills to skim liquidity. The inflation rate now is 51 per cent, down from 70 per cent previously. Whether it will continue to go down, we will have to see," he said.

ergy - Oil & Gas
Iraqi officials on oil laws of central government, Kurdistan Region
06 November 2006 (BBC Monitoring)

Iraqi Deputy Prime Minister Barham Salih, who has been appointed chairman of the committee drafting the new Iraqi Oil Law, has acknowledged the existence of "problems" over the draft oil law for Kurdistan Region. He said in a contact with Al-Sharq al-Awsat: "Despite these problems I am sure that the will of the righteous will prevail and we will come up with a law that will develop the resources and benefit from private investments so as to guarantee the interests of all parties."

The deputy prime minister refused to go into the details of the disagreement between Baghdad and Arbil on the Kurdish oil law. However, he affirmed that "talks on completing the Iraqi oil law will be resumed soon with the participation of Kurdish representatives". He added that the committee drafting the Iraqi oil law will submit a draft to the Iraqi parliament by the end of the year and that this law will specify the responsibilities of the regional governments and the central government concerning the oil industry as well as the rights of each party. He said that the draft oil law for Kurdistan Region is ready and is expected to be approved soon, which would mean that the regional law would be issued before the federal government law.

On the other hand, the official spokesman of the Kurdistan Region Government, Khalid Salih, affirmed to Al-Sharq al-Awsat the Kurdish government's intention to go ahead with implementing its law. He explained: "The law is consistent with the Iraqi constitution, which clearly acknowledges the supremacy of the regional law over the federal government law on this matter."

It will be recalled that the draft law is based on Article 115 of the Iraqi constitution, which stipulates that all that is not stipulated in the powers of the federal authority falls within the powers of the regional authorities and the areas and governorates that have not been formed into regions. Regarding the joint powers between the federal government and the regions, priority in them, in the case of any disagreement between them, is for the law of the regions and the governorates that have not been formed into regions.

Khalid Salih explained that the draft oil law for Kurdistan Region has not yet been officially submitted to the Kurdish parliament. But the minister for Kurdish national resources, Ashti Hurami, has finished the work on the draft and has submitted it to the Council of Ministers of the Kurdish Region for submission to the Kurdish parliament within the next few days. This law comes before the Baghdad central government, which has submitted its draft of the Iraqi oil law, which is expected to explain the final form for distribution of oil resources among the Iraqi people and the regions' role in administering this wealth, which led to opposition in some Iraqi circles.

Despite the clear confidence which the officials express in the ability of the Kurdistan Region Government to develop the oilfields in the region, the main point that might pose an obstacle for exporting oil from the region and benefiting from its revenue will be the transportation of oil, especially since the oil pipelines belong to the central government. A Kurdish delegation led by Kurdish Prime Minister Nechervan Barzani is expected to go to Baghdad in the next few days to resolve the differences over the Kurdish draft law and to hold consultations on the drafting of the Iraqi oil law. Although a previous draft of the Iraqi oil law set three months for resolving the differences between the central government and the Arbil government on the Kurdish law since its approval, the recent draft does not set a deadline for that. Clause 24 of the draft law explains that in the case of the failure of the Iraqi government and the regional government to reach an agreement on sharing and running the oil resources, the regional governments will completely run the oil operations, including the control of the oil revenues.

Former Iraqi Oil Minister Abd-al-Aziz al-Wattari explained that the current law applied in Iraq is "the National Oil Company law", which goes back to 1964. Al-Wattari told Al-Sharq al-Awsat that the law places all oil operations in the hands of the central government so that its revenue will return to the central treasury. Regarding the Kurdish oil law and the dispute over the distribution of the oil resources, Al-Wattari, who was oil minister when the Iraqi law came into effect more than 30 years ago, said: "The matter depends on the legitimacy of these resources and international recognition of Kurdistan and its right to dispose of its oil resources."

Regarding the exportation of oil from Kurdistan Region, Al-Wattari explained: "Oil must be transported through the Iraqi oil pipelines. Even it is exported in small quantities on trucks, this must take place through cooperation with the neighbouring states."

Valerie Marcel, specialist on oil affairs in "The Royal Institute for International Affairs" in Britain, pointed out that "the Iraqi government's strongest point in its negotiations with the Kurdistan Region Government is the means of transporting oil". She explained that "transporting oil for exports will take place across Iraqi territory (outside Kurdistan Region) or across Turkey (to the port of Cihan). Both parties [Iraq and Turkey] have an interest in postponing the independence of the region, and therefore they might obstruct the exportation of oil if an agreement is not reached with them.

Marcel said: "There are several points of disagreement" over the oil in Iraq. She said that the first of these points is "on the current and future oilfields. Constitutional interpretation of the current and future fields is not clear." She added: "It is possible to resolve the problem of the mechanism of distributing the revenues, but the problem is: which revenues in particular will revert to which side?"

For his part, the official spokesman of the regional government explained that Arbil has so far not received "any official objection or even comment" on the law. He also explained that so far the objections have been in the form of "press statements". But he added: "The federal government has no right to object to the law because it is consistent with the Iraqi constitution."

Khalid Salih added: "We want to avoid problems and resolve this matter through open discussions." The draft law does not yet specify the revenue for the Iraqi government from the oil revenue in Kurdistan. Article Five of the Kurdish draft law stipulates that "the regional government will share the oil revenue with the Iraqi people according to the Iraqi constitution", without specifying the rates. Attachment (A) stipulates that the Kurdish government's share from "all the Iraqi government revenue from the current fields" will be "fair rates". Khalid Salih explained that these rates have not been specified because they have to be discussed in the Kurdish parliament in order to reach the final rates. On the other hand, Marcel said that this must be specified in the Iraqi oil law issued in Baghdad. However, the draft law states that 10 per cent of all revenue will be distributed annually among "all the citizens of Kurdistan Region". This is in addition to the 7 per cent allocated for "the Investment Fund for future generations among the citizens of the Kurdistan Region" and the 15 per cent allocated for "the Kurdistan Region citizens who have suffered and are still suffering from hardships owing to the policies pursued by the former Iraqi regime".

Former US Treasury Secretary Robert Kemmet told Al-Sharq al-Awsat earlier that the argument between Baghdad and Arbil is not over the distribution of resources but over the right of granting contracts to international companies to prospect for and produce oil in Kurdistan Region. He added: "There is a general agreement on the distribution of revenues, but discussions are still taking place on the responsibility of the government and the region on contracts and which international companies should prospect for and discover oil wells." He believed that these discussions "fall within the general context of federalism in Iraq". The second paragraph of Clause Seven of the draft Kurdish Law affirms that the minister of the Kurdish Region is responsible for negotiating, approving and implementing any oil agreements. Article 80 of the draft also stipulates that any agreements pertaining to oil in Kurdistan Region must be endorsed by the Iraqi government.

Dr Muhammad Ali Zayni, the expert on oil affairs at the "Centre for World Energy Studies" in London, pointed out that the situation in Kurdistan is unique, saying: "Oil operations normally revert to the central government. For example, British oil is in the North Sea, which belongs to Scotland. Still, the central government in London supervises the oil operations." Regarding the taxes due on the oil industry operations, Paragraph Five of Clause 49 of the Kurdish draft law stipulates that "the regional government's tax law will be the only law" applicable to the oil operations. The clause refers to Article 115 and the second paragraph of Article 121 of the Iraqi constitution, which permit that. The latter says: "The regional authority has the right to amend the implementation of the federal law in the region in the event of the existence of a conflict between the federal law and the regional law over an issue that does not fall within the powers of the federal authorities."

For his part, Higa Ebba, director of the Norwegian D & O Company, which is one of the leading foreign petroleum companies in Kurdistan Region, affirmed that his company will continue with its prospecting work in the region and that it does not fear any problems arising from the new draft law. He added in a contact with Al-Sharq al-Awsat: "The dispute will not hamper our work. We have concluded an agreement with the Kurdistan Region Government that conforms to the Iraqi constitution and this dispute will be resolved at the appropriate time." He explained: "We depend on what we hear from the Kurds." He indicated that his company has contracts with the Iraqi Oil Ministry "and during the past year and a half we have not seen any sign from the ministry that there is any resentment against our work in Kurdistan", he said.

Ebba affirmed that oil production is expected to begin in the first quarter of next year following the discovery of oil in Tuki and Taq Taq oilfields in Kurdistan Region. He added that D & O is evaluating the two fields and expects the discovery of more oil wells by the end of this year.

Barham Salih expressed his intention to resolve any dispute over oil in Iraq. He stressed that it is time that the oil wealth in Iraq became a boon for his people and not a scourge causing more problems for the country, owing to the struggle to control this wealth. He said: "We want to turn the oil wealth from the scourge that it was for the Iraqis - due to the despotism of the past decades - into wealth that is enjoyed by the whole of Iraq."

Originally Posted by CharmedPiper

Here we go guys they are talking about the economy. Our time has now come!!!!!

Economists Warn Iraqis growing inflation problem

(Voice of Iraq) - 07-11-2006
This issue was sent to a friend

Economists Warn Iraqis the growing problem of inflation in the economic Iraq
Baghdad-file Press
Economists and academics warned Iraqis of the consequences of the growing problem in Iraq about inflation rates but extremely dangerous and scary as they hit during the month of August last 76%, which economists Iraqis seen as representing the major illnesses. This comes due to suspension of most of the productive sectors and the continuing fuel crisis in addition to plenty of cash flow.

Economists and interested in this area emphasize the importance of moving the process of comprehensive economic reform, because inflation is one of the reasons behind the Iraqi economy and faltering considering that not a cure for inflation only through the processing and activation of all productive sectors, whether industrial or agricultural or service. Therefore, the activation of these sectors is one of the solutions to the problem of inflation, which began an excessive burden on the Iraqi citizens and Iraqi family and the diminution of well-being and prosperity of society.

Dr. Ali Baban, the Iraqi Minister of Planning said : (The figures for the case of serious inflation is a state of ill Iraqi economy and the deterioration of the situation in the productive sectors should be addressed as soon as) saying : (It is not a cure for inflation only improvement in the Iraqi economy and the overall improvement of productive sectors and to address the problems that face).

And continues : (Inflation is not caused by one single factor, but it is an indicator of poor Iraqi economy a whole. If the state of the economy should not be a virile inflation and inflation if it is limited).

He added : Papan (I hope that everyone of inflation seen from the perspective of a holistic sense to look at through the reality of the economy and not by the fact that monetary policy only monitors the amount of money and the money supply, interest rates and credit policy, etc.) explaining : (monetary policy that inhabit disease and Ataaljeh When we discount rate or Nkhfedah follow the policy of strict or lenient credit, we will try calming the disease and Anaaljeh. and the disease is in the productive sectors and the state of the economy in general and if the productive sectors remained unchanged do not expect a decrease in the course of Altdkh m or decline it. If evolved these sectors and recovering agricultural sector and the industrial and service when it begins to revolve the wheel of economy and inflation will Baltraj).

The Papan to : (The credit policy will play an important role in the treatment of inflation and this issue must be known to all, We do not expect that the Central Bank reduced rates when credit or picks will succeed in controlling the phenomenon of inflation problem is not confined to the private credit and Avi issue of balance between the quantity of money and money supply, but only in the productive sectors, In the Iraqi productivity. This is the other dimension of the issue, the "productivity" of the individual back Therefore, the unemployment closely related to inflation).

For his part, Dr. Kamal Basri, undersecretary of the Ministry of Finance and head of the Iraqi Center for Economic Reform : (The "phenomenon" of inflation came from the presence and abundance of cash with the scarcity of the goods and services. The abundance of liquidity in the cash came from this year's budget allocated amounts of cash many of the salaries and wages increased about 90% from what it was last year ... This pumping major financial market. while the goods and services in the market b Jae less for a variety of reasons, including security and why this factor making markets confused, in addition to the transit of goods from the border outlets became very agitated because of the security factor as well).

He adds : (Also, the lack of fuel contributed to the reduction of existing goods in the local market. in addition to an abundance of cash to the individuals caused a rise in the prices of the deal, we believe that the security situation is essential for each case (

He stressed the work to encourage the State to end the monopoly of the Ministry of Oil import and sale of oil derivatives, and need to give space to the private sector to fill the existing gap.

He stressed the need for the optical link the issue of reforming the state oil derivatives in a series of actions : (It is not enough to make the step and leave the remaining steps) ... The prices of oil derivatives, reform is necessary and correct, but must be accompanied by an integrated program to protect the poor ... (We also need to support the services of water, electricity, transportation and others, Without this reform be extracted and integrated and affect the economic well-being of citizens).

Basri said : (What is the percentage of high inflation is frightening, Therefore it has become necessary for the State to the linking production spending. If the conditions the same, I believe that the inflation rate in the next month would be high).

As Abdullah Albandar member of the Iraqi Center Director in the Economic and Finance Ministry, indicated that the inflation rate reached last August, 76%, a figure that seriously ... The ratio of inflation between the seventh and eighth month last by fluctuating between 26-20% and this is very dangerous, if the rate of inflation without a high rates of economic growth, this would constitute a problem.

The appearance of Dr. Mohamed Saleh, director general of the Economic Iraqi Central Bank has pointed out : (The three elements in the Iraqi economy, inflation is at the center rents have risen to the rate of inflation up to 41%. food rose in July to 23% and the fuel is also up to 19% and the rest of descent constitute 14%).

Saleh said : (Iraqi economy suffers from a structural imbalance due to the domination of the oil sector and some other sectors. The essential point that the draft reform of the State generate vibrations on the old traditions (the support), as everyone knows, the direct and indirect constitute 80% of national income in Iraq, this strange phenomenon in the world ... Therefore, any response to this support generates Thus imbalances In my opinion, would not be a solution to this matter but to solve the problem of unemployment and build the priority projects that could absorb unemployment and generate economic activity and housing projects which they constitute 20% of the labor force Iraqi).

He adds : (Under these circumstances, if control of the prices of oil derivatives has been working on ration cards for a certain period of a couple of distribution then the market would be reassured by much of this to be a growth and some monetary reforms to control the money supply that accompany inflation)

Will they RV if the economy is not as strong as hope? Or is a Dinar RV a way to "kick start" the economy?

Obviously a RV should help to curb inflation. Imported goods would be come cheaper.

Would a RV help create jobs? Well, if the people have more spendable cash in their pockets then will purchase goods. The article mentions the need for recovery in the agricultural sector and the industrial and service sectors. I also think a key is rebuilding infrastructure and buildings houses. The unemployment rate is way to high. People need jobs and be able to make a decent living.

Lastly, one thing that wasn't highlighted was this:
"Dr. Kamal Basri, undersecretary of the Ministry of Finance and head of the Iraqi Center for Economic Reform : (The "phenomenon" of inflation came from the presence and abundance of cash with the scarcity of the goods and services. The abundance of liquidity in the cash came from this year's budget allocated amounts of cash many of the salaries and wages increased about 90% from what it was last year"

So, there is an abundance of cash but nothing to buy... Even though salaries increased it has not kept up the pace of the inflation. So, when imported good become more affordable and inflation curbs, people will be able to buy more.

Big-time RV seems to be so close.....

Aswat al Iraq :: Aswat al Iraq

The OPEC ministers are talking about reducing production by one million barrels per day, which seemed to be consensus before the Doha meeting and the difficulties arose only in a resolution into effect.

واوضح بيان اوبك ان قرار الخفض يشكل "اجراء مؤقتا سوف يعاد درسه" في الاجتماع المقبل لمنظمة اوبك المقرر عقده في 14 كانون الاول/ديسمبر في ابوجا بنيجيريا.

The statement by OPEC's decision to cut was "temporarily will be studied" in the next meeting of OPEC scheduled for December 14 in Abuja, Nigeria.

ولم تشر اوبك الى سقف انتاجها الرسمي ما يعني انه بقي دون تغيير عند 28 مليون برميل يوميا وهو السقف المعتمد منذ تموز/يوليو 2005.

OPEC did not refer to the official production ceiling, which means that there remained unchanged at 28 million barrels per day ceiling, which adopted since July 2005.

و للمنظمة اي خفض منذ نيسان/ابريل 2004.

There has been no official production ceiling of the Organization of any reduction since April 2004.

وكانت بعض الدول الاعضاء وبينها ايران، اعربت عن الرغبة في ان يتم تطبيق الخفض على سقف الانتاج الرسمي.

And some Member States, including Iran, She expressed the desire to apply the reduction to the official production ceiling.

واوضح وزير النفط الاماراتي محمد بن ضاعن الهاملي خلال مؤتمر صحافي ان "جميع الدول ستخفض انتاجها"، موضحا انه يشير الى الدول العشر الاعضاء في منظمة اوبك بدون العراق، مضيفا ان "التخفيض احتسب انطلاقا من الانتاج الفعلي في ايلول/سبتمبر".

The UAE Oil Minister Mohammed bin Dhaen Al-Hameli during a press conference that "all States would reduce its" he was referring to the ten-member countries in OPEC without Iraq. He added that "the reduction calculated from actual production in September."

وعلاوة على ارتفاع الاسعار الذي يؤثر على عائدات الدول الاعضاء، فان اوبك تراقب بقلق تعويم المخزون النفطي في الولايات المتحدة اكبر مستهلك عالمي للنفط الذي يتزامن مع تباطؤ النمو الاقتصادي العالمي.

In addition to the rise in prices, which affect the revenues of Member States, the OPEC monitors with floating oil reserves in the United States, the biggest oil consumer in the world, which coincides with a slowdown in global economic growth.

وتعتبر المنظمة ان العرض اكبر بكثير "من الطلب الحقيقي على النفط كما يظهره المستوى الاعلى من المتوسط للتخزين" في بعض الدول.

The organization considers that the offer much greater "than the actual demand for oil as shown by the higher level of average storage" in some States.

وستتحمل المملكة العربية السعودية القسم الاكبر من التخفيض بـ 380 الف برميل يوميا ثم ايران بـ 176 الف برميل يوميا.

The Kingdom of Saudi Arabia would bear the bulk of the reduction by 380 thousand barrels a day and then Iran of 176 thousand barrels per day.

ورغم الزيادة الفورية في الاسعار اليوم في التبادلات الاسيوية، فانه لا يزال من المبكر الحكم عما اذا اتاح قرار اوبك قلب توجه الاسعار من الانخفاض الى الارتفاع ووضع حد لتشاؤم المتعاملين في الاسواق.

Despite the immediate increase in prices today in the Asian exchanges, it is still too early to judge whether OPEC's decision allowed the heart of the guide price decline to the rise and put an end to the pessimism dealers in the market.

وقال محللون ان المنظمة تعاني منهجيا من صعوبات في الانضباط حين تقرر تخفيض الانتاج بسبب تراجع العائدات الذي ينجم عن مثل هذا القرار.

And analysts said that the organization suffers from methodological difficulties in the discipline while it was decided to reduce production due to the drop in revenues resulting from such a decision.

واضافوا انهم يتوقعون ان تعمد العديد من الدول الى الغش وتخفيض كمية تقل عن حصتها المعلنة من الخفض.

They added that they expect many countries deliberately to fraud and reducing the amount less than its share of the announced reduction.

وفي حال لم يأت قرار الخفض بالاثر المطلوب، فقد تقرر اوبك القيام بعمليات خفض اخرى.

In the event of reduction decision did not come as desired effect, OPEC has decided to carry out another reduction.

واشار وزير البترول والثروة المعدنية السعودي علي النعيمي الى امكانية تقرير اوبك تخفيضا اضافيا في اجتماعها المقبل في كانون الاول/ديسمبر.

The Minister of Petroleum and Mineral Resources Ali Naimi, the Saudi report to the possibility of a further reduction of OPEC at its next meeting in December.

واكد وزير الطاقة الفنزويلي رفاييل راميريز قبل اجتماع الدوحة ان الوزراء سينكبون من الان على بحث خفض الانتاج بـ 500 الف برميل يوميا في اجتماع ابوجا.

The Venezuelan Energy Minister Rafael Ramirez before the Doha meeting that the ministers Sinkpon from now on the discussion of the reduction in production of 500 thousand barrels a day in the Abuja meeting.

Link: Bush Cites Oil As Reason to Stay in Iraq (YA THINK!!!!)

Monday, 6 November 2006, 8:22 pm
Article: Scoop Link SCOOP LINK:

Bush Cites Oil As Reason to Stay in Iraq


By Peter Baker
The Washington Post
Sunday 05 November 2006

See Full Story…
Bush Cites Oil As Reason to Stay in Iraq
Bush Says U.S. Pullout Would Let Iraq Radicals Use Oil as a Weapon - washingtonpost.com
Greeley, Colo.- During the run-up to the invasion of Iraq, President Bush and his aides sternly dismissed suggestions that the war was all about oil. "Nonsense," Defense Secretary Donald H. Rumsfeld declared. "This is not about that," said White House spokesman Ari Fleischer.
Now, more than 3 1/2 years later, someone else is asserting that the war is about oil - President Bush.
As he barnstorms across the country campaigning for Republican candidates in Tuesday's elections, Bush has been citing oil as a reason to stay in Iraq. If the United States pulled its troops out prematurely and surrendered the country to insurgents, he warns audiences, it would effectively hand over Iraq's considerable petroleum reserves to terrorists who would use it as a weapon against other countries.
"You can imagine a world in which these extremists and radicals got control of energy resources," he said at a rally here Saturday for Rep. Marilyn Musgrave (R-Colo.). "And then you can imagine them saying, 'We're going to pull a bunch of oil off the market to run your price of oil up unless you do the following. And the following would be along the lines of, well, 'Retreat and let us continue to expand our dark vision.' "

… snip … See Full Story…
Bush Cites Oil As Reason to Stay in Iraq
Bush Says U.S. Pullout Would Let Iraq Radicals Use Oil as a Weapon - washingtonpost.com

Associated Press Writer
6 minutes ago

BAGHDAD, Iraq - A day after Saddam Hussein was sentenced to hang, the Shiite-dominated government offered a major concession Monday to his Sunni backers that could see thousands of members of the ousted dictator's Baath party reinstated in their jobs.

With a tight curfew holding down violence after Saddam's guilty verdict and death sentence, the government reached out to disaffected Sunnis in hopes of enticing them away from the insurgency, which has killed tens of thousands of Iraqis and is responsible for the vast majority of U.S. casualties.

The U.S. military announced the deaths of five more American troops, two in a helicopter crash north of Baghdad and three in fighting west of the capital. The deaths raised to 18 the number of U.S. forces killed in the first six days of November.

Monday's political concession to the Sunnis was detailed by a government organization that had been charged with removing Saddam loyalists from state institutions. Under a draft law, which the Shiite-dominated parliament must approve, the organization now plans to amend its rules to enable thousands of former Baath party members to win back their jobs.

The amendments developed from a 24-point national reconciliation plan that al-Maliki announced in June shortly after taking office.

"Such a move will be in the interest of Iraq because a Baathist, like any Iraqi citizen, has the right to get back his job," said Ammar Wajih, of the Iraqi Islamic Party, the country's largest Sunni group.

"This decision could move the country toward stability and could be a way to open bridges between the resistance and the Americans," Wajih said, referring to advances the Americans have pursued with insurgent groups in a bid to end the fighting.

Under the former de-Baathification protocols, 10,302 senior party members had been listed for dismissal. The draft law, however, includes the names of just 1,500 Baath party members, said Ali al-Lami, the commission's executive director. Those not reinstated would receive pensions, he told the AP.

The commission was established in January 2004 and has already purged 7,688 party members from government positions.

Many Sunni Arabs claim that that the de-Baathification process was aimed at their sect rather than the Baath party. Until Saddam was ousted, the Sunni minority had ruled Iraq for decades. But al-Lami said more Shiite Baath party members lost their jobs in southern Iraq than Sunnis did in the central heartland.

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