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

Can Iraq settle for an exchange rate of just 1260:1 ?

Thier 2007 budget appears to be calculated with this rate as it's basis.

Is there any evidence to prove this CANNOT be maintained ?

And yes I have been reading all of the past info here on RolClub,
excellent though it is, most of our understanding is our own
interpretation of what we & others WANT to happen rather than
any real facts that state a significant R/V of 1:1 or better is coming.

I really want this to R/V significantly, in fact I really NEED this to happen,
but there have been many references to 1260 in a number of documents
quoted here on RolClub.

Can we just ignore them because we WANT 1:1 or higher ?

I know these questions have probably been asked before,
but I have never seen a convincing argument to answer them.

Originally Posted by Dinar Cha Ching

Not only that but they don't have enough dinar to cover a budget of 41 billion dollars at 1260. $41 billion X 1260= 51,660,000,000,000 dinars. I know they don't need to have all 51 trillion dinars printed, but, being a cash based society they are going to need an enormous amount more than what they currently have in order to support this budget at 1260. This would contradict what Shabibi said about reducing the amount of dinar in circulation.

If the inflation problem is too many dinars chasing too few goods then they're just going to exacerbate the inflation problem by pumping more dinar into circulation. Raising interest rates won't even touch the inflation problem with all the dinar they would need for this budget.

However, if they bring the exchange rate more in line with 1:1+ they already have enough dinar, people would have a major increase in their purchasing power and inflation would be reduced. More products could be brought in because they'd be much cheaper and then less dinar would be buying more products. Competion for customers between merchants would keep prices in line.

The 1260 scenario for the budget just doesn't make any sense. I'm not buying it.

Respectfully, in your assessment of the budget versus the amount of dinars in circulation you omitted the concept of 'velocity'. Particularly, each dinar will be spent more that once in a one year period.

Originally Posted by scottpaye

Respectfully, in your assessment of the budget versus the amount of dinars in circulation you omitted the concept of 'velocity'. Particularly, each dinar will be spent more that once in a one year period.

That is a good point however every single dinar would have to be used 5 times over throughout the year...based on 10 trillion in circulation. But if you take out all of the dinar in circulation overseas (which has no velocity) then the number increases significantly.

Simply put at this level dollarization and inflation will never be curbed. Keep in mind this is just my simple opinion.

Originally Posted by scottpaye

Respectfully, in your assessment of the budget versus the amount of dinars in circulation you omitted the concept of 'velocity'. Particularly, each dinar will be spent more that once in a one year period.

That's why I said "I know they don't need to have all 51 trillion dinars printed." I'm estimating they would need to increase the amount of dinar dramatically, albeit not 51 trillion, to support a budget that at 1260 is the equivalent of 51 trillion 660 billion dinar.

Iraq negotiates with American companies to build an oil refinery near Karbala

Disclosure Under the Iraqi Oil Ministry, Ahmed To urge, that the ministry is currently negotiating with the company «ABB hit a raw», «Hao company Wacker and the company« »» Stiank American, as well as one of the Iraqi companies with a view to the construction of a refinery Mesopotamia, in the governorate of Karbala bounties south of Baghdad.

.To urge explained that the ministry had asked the companies mentioned some adjustments to the presentations before it, pointing out that these amendments technical, commercial and related amounts for the implementation of the project and develop methods and clear of contract. He added that this project would be subject to approval by the Council of Ministers after the termination of negotiations for ratification.

.Al-To urge that the project (which is the largest in the region), and an annual design 140 thousand barrels of crude oil, will provide all types of derivatives to a number of Central provinces in which it is located.

.He expected Undersecretary of the Ministry of Oil in the direct implementation of the project in the first quarter of next year and that implementation will take three years, and will cost $ 2 billion global art techniques for building oil refineries.

.He pointed out that the refineries in Iraq has suffered from benign neglect for many years, it was not built a refinery in Iraq since the mid-1980s. Therefore, the Ministry has prepared a plan to build a number of refineries various sizes in all governorates.

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22 December 2006 (Iraq Directory)

Iraqi officials reached a tentative agreement on an oil law that grants the regions the right to negotiate contracts for oil fields with foreign investors, but it gives the central government the final word.

Iraq is in great need for foreign investment to revive its shattered economy, which relies heavily on revenues from oil exports, especially that the country has the third largest oil reserves in the world.

Sources close to the negotiations said that Prime Minister Nuri al-Maliki, "agreed on" the draft law which is awaiting the political approval and the adoption of the Cabinet.

The sources quoted Iraqi officials saying that the law will be referred to Parliament for ratification by the end of December; however, the legislation is likely to be issued early next year because of the holydays.

Officials reached a tentative agreement on the oil law | Iraq Updates

woooooooooooooooootttt

Rice calls Iraq "worth the investment"

STATE DEPARTMENT Even though it's been more difficult than expected, Secretary of State Condoleezza Rice says Iraq is "worth the investment" in American lives and dollars.

Rice told The Associated Press that America can win in Iraq, even as President Bush is under pressure from the public and members of Congress to change course in Iraq.

The war has claimed the lives of more than 29-hundred-50 American troops and already cost more than 350 (b) billion dollars, with another 100 (b) billion requested for Iraq as well as the war in Afghanistan.

But Rice says it's not a matter of money. She says Iraq is worth the investment because it could emerge as a stabilizing factor and create what she calls "a very different kind of Middle East."

Rice calls Iraq "worth the investment"


Nice statement from Rice (part about the dollars not lives)!

She knows that the future look bright over there with the oil and Iraqi Dinar!

U.S. to maintain long presence in Gulf region: Gates Fri Dec 22, 3:44 AM ET



BAGHDAD (Reuters) - An increased U.S. naval presence in the Gulf is not a response to any action by Iran but a message to all countries that the United States will keep its regional footprint "for a long time," Defense Secretary Robert Gates said on Friday.

CBS News reported on Monday that a projected naval buildup was intended to discourage what U.S. officials view as increasingly provocative acts by Tehran pressing for a nuclear program and support for Shi'ite militias in Iraq.

"I don't think it's a response to anything anyone else has done," Gates told reporters during a three-day visit to Iraq.

"I think the message that we are sending to everyone, not just Iran, is that the United States is an enduring presence in this part of the world. We have been here for a long time. We will be here for a long time and everybody needs to remember that - both our friends and those who might consider themselves our adversaries," he said.

The U.S. command responsible for Middle East operations has asked the Pentagon to add a second aircraft carrier to the Gulf region as a warning to Syria and Iran and to help it carry out other operations, according to a senior defense official.

The war-fighting Central Command wants the carrier strike group and its warplanes by end-March for "deterrence" and to increase "flexibility," including for potential noncombat operations, said the official who asked not be to be named.

Gates on Friday acknowledged the increased U.S. presence in the Gulf.

"There has been an increase in naval strength in the Gulf in the past several weeks," he said.

But the new defense secretary, who replaced Donald Rumsfeld on Monday, said he did not know if United States would send another carrier to the Gulf.

Maliki calls Polish companies to invest
(Voice of Iraq) - 12-22-2006

Maliki calls Polish companies to invest in Iraq Maliki calls Polish companies to invest in Iraq IRAQdirectory The Iraqi Prime Minister Nuri al-Maliki, after meeting with his Polish Yaroslav Kajinski, who arrived Wednesday in Baghdad on a surprise visit his country's desire to attract Polish companies to invest in Iraq.

Al-Maliki said during a joint press conference with Polish Prime Minister that "there is a desire to cooperate with the Polish companies in the areas of oil and gas in the military sphere."

He added, "We asked the companies to come to Iraq to discuss with the ministers concerned in this area and we should not be confined to cooperation in the field of oil." The Maliki that "there is a military deals between Iraq and Poland to import weapons and helicopters in the military cooperation with the Iraqi Ministry of Defense." The Maliki that Iraq "looks forward to closer relations with friendly countries, including Poland." For his part, the Polish Prime Minister that "the talks touched on all areas in a practical and detailed." In response to a question about the future of the Polish forces deployed in southern Iraq and said that "the future survival of our forces in Iraq is due to the completion of some of the tasks that we are (...)

We believe that this is necessary not only to Iraq but to the entire world. " Published Poland ally Washington since the beginning of the conflict, a force of 880 Iraqi military in southern Iraq. The killing of 22 Polish in Iraq since the start of the armed intervention in the country in the spring of 2003, including four civilians, two of them journalists working for the public television.

He stressed that these forces "are present here at the invitation of the Iraqi government Anyway, the day will come there will be no need for the survival of our troops in Iraq." He stressed that his country "is ready for economic cooperation with Iraq", adding that "there are safe areas to invest, but this does not mean that we want to start this cooperation now."

Sotaliraq.com