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

Originally Posted by DinarDevildog

Iraq poised to end drought for thirsting oil giants
After 35 years, the third-largest reserves in the world are to be opened to American and British companies

By Danny Fortson

Published: 07 January 2007

For more than three decades, foreign oil companies wanting into Iraq have been like children pressed against the sweet shop window - desperately seeking to feast on the goodies but having no way of getting through the door.

That could soon change. The Iraqi Council of Ministers is expected to approve, as early as today, a controversial new hydrocarbon law, heavily pushed by the US and UK governments, that will radically redraw the Iraqi oil industry and throw open the doors to the third-largest oil reserves in the world. It would allow the first large-scale operation of foreign oil companies in the country since the industry was nationalised in 1972.
It would also be a shot in the arm for the global petroleum industry. The biggest oil companies are finding it ever harder to uncover new reserves to replace those that are going dry. Iraq sits on a sea of easily tapped, high-quality crude.

For a sector desperate for a panacea, the stakes couldn't be higher. By conservative estimates, Iraq represents about one-tenth of the world's reserves at 115 billion barrels. Most of this is untapped or under-exploited. Former oil minister Issam Al-Chalabi was quoted recently saying that a fully functioning Iraqi oil industry could generate $100bn (£52bn) in annual revenue.

The new legislation "is a redrawing of the whole Iraqi oil industry into a modern standard," said Khaled Salih, a spokesman for the Kurdish Regional Government, a party in the negotiations. "It will allow new technologies to come in to revitalise the oil industry and allow foreign investors to invest long-term in Iraq and upgrade infrastructure."

Iraqi government sources say the hope is to have the law on the books by March. No one expects big players such as Exxon, BP and Shell to jump into the country until the security situation stabilises. They are jockeying to stake their claims now for exploitation later. "It's a mad rush to get something there," said James Paul, the executive director of Global Policy Forum, a New York watchdog group. "The companies are saying, 'Before any troops are withdrawn, we have to have these contracts.' "
So why are the oil companies so desperate to get a foot in the door? For one, they are struggling to keep production increasing in line with demand, which last year rose to more than 82 million barrels a day. Those rises have been driven in large part by the growth of the Chinese economy. The tide of oil nationalism in places such as Venezuela, where the stranglehold applied by President Hugo Chavez on the industry has led to lower production, has shifted more pressure on to the rest of the industry.

Also, the cost-per-barrel of extracting oil in Iraq is among the lowest in the world because the reserves are relatively close to the surface . This contrasts starkly with the expensive and risky lengths to which the oil industry must go to find new reserves elsewhere - witness the super-deep offshore drilling and cost-intensive techniques needed to extract oil form Canada's tar sands.

"The majors are finding it increasingly difficult to locate actual black oil resources," said Praveen Martis, an analyst at research firm Wood Mackenzie. The most coveted sites in Iraq are the Majnoon and West Qurna fields, both close to Basra in the south of the country. Together, they fields represent nearly a quarter of Iraq's proven reserves. Total and Russia's Lukoil had deals in place with Saddam Hussein's government on the Majnoon and West Qurna fields respectively.

It is arguable whether these contracts are still valid, and Exxon is now seen by insiders as the frontrunner to nab the rights to the Majnoon field.
Other parts of the country, such as the Western desert, remain virtually unexplored and could be home to large reserves.

Critical to whether the petro-leum industry will be able to exploit Iraq's buried treasure will be the introduction of production-sharing agreements (PSAs). These are contracts that allow the state to retain legal ownership of its reserves but let international companies share in the profits from extracting oil, in exchange for investing in the infrastructure and operation of the wells, pipelines and refineries. The agreements would be the key to the sweeping development of the Iraqi industry by international companies.

According to an early draft of the legislation that was sent to oil companies this past summer and obtained by The Independent on Sunday, PSAs are the centrepiece of the new legal framework.
Their introduction would be a first for a major Middle Eastern power and is sure to be highly contentious. Saudi Arabia and Iran, the world's number one and two producers, both control their industries tightly with no appreciable foreign company collaboration. According to the Iraqi draft legislation, the PSAs could be fixed for as long as 30 years, which would provide a welcome framework in which the companies could work. Though they are preferred by the oil industry, PSAs don't always guarantee profits for Western companies.

The Russian government depended heavily on PSAs in the 1990s when it was far weaker economically than it is now. The Kremlin has since made moves to wind back these agreements. The most notorious instance came last month when Shell was forced to cede a controlling stake in the $20bn Sakhalin 2 oil and gas project back to the Russian state-owned gas giant Gazprom, after months of brinkmanship from the Kremlin.

Yet for all the black gold that lies under the sand of the Iraqi desert, any potential payoff for Western oil giants is years off. An enormous amount of work remains to be done. The infra-structure is decrepit and patchy after years of neglect, and there is the risk of sabotage and wars. The country is in a state of near anarchy and the debate about the ownership and exploitation of its main asset, which accounts for nearly all of Iraq's GDP and export revenues, is still to be had.

But if the new hydrocarbon proposals pass through their fledgling parliament, the Iraqi people will be forced to share their buried treasure with the West's oil giants.

Apparentley Production Sharing AGreements have been part of the plan all along.

I wanted to share something I posted Else where .

Archangel started the oringinal Post and I respondeed with this.



Archangel
Protecting the Development Fund for Iraq and
Certain Other Property in Which Iraq Has an Interest

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the International Emergency Economic
Powers Act, as amended (50 U.S.C. 1701 et seq.)
(IEEPA), the National Emergencies Act (50 U.S.C. 1601
et seq.), section 5 of the United Nations Participation
Act, as amended (22 U.S.C. 287c) (UNPA), and section
301 of title 3, United States Code,

I, GEORGE W. BUSH, President of the United States of
America, find that the threat of attachment or other
judicial process against the Development Fund for Iraq,
Iraqi petroleum and petroleum products, and interests
therein, and proceeds, obligations, or any financial
instruments of any nature whatsoever arising from or
related to the sale or marketing thereof, and interests
therein, obstructs the orderly reconstruction of Iraq,
the restoration and maintenance of peace and security
in the country, and the development of political,
administrative, and economic institutions in Iraq. This
situation constitutes an unusual and extraordinary
threat to the national security and foreign policy of
the United States and I hereby declare a national
emergency to deal with that threat.

I hereby order:

Section 1. Unless licensed or otherwise authorized
pursuant to this order, any attachment, judgment,
decree, lien, execution, garnishment, or other judicial
process is prohibited, and shall be deemed null and
void, with respect to the following:

(a) the Development Fund for Iraq, and
(b) all Iraqi petroleum and petroleum products, and
interests therein, and proceeds, obligations, or any
financial instruments of any nature whatsoever arising
from or related to the sale or marketing thereof, and
interests therein, in which any foreign country or a
national thereof has any interest, that are in the
United States, that hereafter come within the United
States, or that are or hereafter come within the
possession or control of United States persons.

Sec. 2. (a) As of the effective date of this order,
Executive Order 12722 of August 2, 1990, Executive
Order 12724 of August 9, 1990, and Executive Order
13290 of March 20, 2003, shall not apply to the
property and interests in property described in section
1 of this order.

(b) Nothing in this order is intended to affect the
continued effectiveness of any rules, regulations,
orders, licenses or other forms of administrative
action issued, taken, or continued in effect heretofore
or hereafter under Executive Orders 12722, 12724, or
13290, or under the authority of IEEPA or the UNPA,
except as hereafter terminated, modified, or suspended
by the issuing Federal agency and except as provided in
section 2(a) of this order.


States or any jurisdiction within the United States
(including foreign branches), or any person in the
United States;
(d) The term ``Iraqi petroleum and petroleum
products'' means any petroleum, petroleum products, or
natural gas originating in Iraq, including any Iraqi-
origin oil inventories, wherever located; and
(e) The term ``Development Fund for Iraq'' means
the fund established on or about May 22, 2003, on the
books of the Central Bank of Iraq, by the Administrator
of the Coalition Provisional Authority responsible for
the temporary governance of Iraq and all accounts held
for the fund or for the Central Bank of Iraq in the
name of the fund.

Sec. 4. (a) The Secretary of the Treasury, in
consultation with the Secretary of State and the
Secretary of Defense, is hereby authorized to take such
actions, including the promulgation of rules and
regulations, and to employ all powers granted to the
President by IEEPA and the UNPA as may be necessary to
carry out the purposes of this order. The Secretary of
the Treasury may redelegate any of these functions to
other officers and agencies of the United States
Government. All agencies of the United States
Government are hereby directed to take all appropriate
measures within their statutory authority to carry out
the provisions of this order.







Very good post because most people have never read this. As I skimmed over this I relealized that president bush issued 13303 first and then had the UN Security Council had to pass it in order to get International Immunity on the DFI Fund.

Here is a article that I posted the Marshall Plan = International Compact Thread.

While all sorts of grandiose plans to quickly restart Iraq oil exports were flying around, the big problem, as more sober observers noted, was that it might prove impossible to find anyone to buy Iraqi oil, because of the problem of legal title. Who owns it? The United States certainly doesn't, and there was no recognized Iraqi government. The lack of clear title was making it impossible for oil purchasers or shippers to even get insurance for their deals.

Because of this legal cloud preventing the United States from selling the oil, and with protests from other countries against the U.S. plans to simply grab the Iraqi oil, the United States was compelled to put the Iraqi oil revenues under some fig-leaf of United Nations control. This was done through a plan to create a new "Development Fund for Iraq," which was established under UN Security Council Resolution 1483, adopted on May 22. The funds accumulated under the UN Oil-for-Food program were to be deposited in the Fund, along with all future proceeds from oil and gas sales.

The Fund is controlled by Paul Bremer, the Administrator of the Coalition Provisional Authority (CPA). According to CPA Regulation No. 2, issued by Bremer on June 15, the Fund is managed "in coordination with" the Federal Reserve Bank of New York, where all receipts of Iraqi oil and gas sales are to be deposited and held. Provision is also made for coordination with the Bank for International Settlements (BIS), if accounts are opened there.

Mortgaging Iraq's Oil
Already in the works by this time, was a plan developed by Halliburton, Bechtel and others, to mortgage future Iraqi oil revenues to pay for their reconstruction contracts. The plan, contained in a U.S. Export-Import Bank memorandum dated May 28, is that the Ex-Im Bank or another facility would issue bonds secured by future oil revenues, and use the proceeds of the bonds to pay for reconstruction contracts, i.e. to pay Halliburton and Bechtel. The June 19 Wall Street Journal reported that the plan "has the enthusiastic endorsement" of Halliburton and Bechtel, who are also operating through the "Coalition for Employment Through Exports." This was also confirmed to EIR by sources at the Ex-Im Bank.

(After Cheney became the CEO of Halliburton in 1995, he sharply increased its political contributions and lobbying activities. Under Cheney, Halliburton received $1.5 billion of guarantees or direct loans from the Ex-Im Bank and related agencies, including projects in Russia and the Caspian Sea region.)

The oil-revenue grab was outlined in the Ex-In Bank's May 28 memorandum "Financing the Reconstruction of Iraq." Under the caption "Securitizing Future Oil Revenues," it noted that, under UN Resolution 1483, some 95% of Iraqi oil and gas revenues are to be deposited into the Development Fund for Iraq, and that there will be many competing demands on these revenues. If investments are made to upgrade Iraqi oil industry facilities, estimated oil revenues could reach $10-15 billion a year, so the question is, how to seize these funds—in advance—for the contractors who will do the reconstruction? The mechanism proposed, is "securitization," issuing bonds against the anticipated future revenues. According to one account, this would be managed through an "Iraq Reconstruction Finance Authority."

Yet, there were still a few flies in the ointment, namely legal ones. There was the question of the existing contracts between Iraq and foreign oil companies, largely European and including Russia. Then there was the even bigger question, of who has the authority to void the old contracts, and enter into new contracts? Traditionally, only a recognized, sovereign government can do so.

As Rep. Henry Waxman (D-Calif.) put it in a July 11 interview with the Los Angeles Times, on the oil-mortgage scheme: "Unless a reconstituted Iraqi government or the UN Security Council authorizes the plan, it appears to violate international law."

This is why the Bush-Cheney administration was so eager to obtain some kind of UN endorsement of the CPA. But what the UN did, was to recognize the United States and Britain as "occupying powers"—which imposes strict legal responsibility and liability. Under the international law of occupation, the occupying powers are responsible for the health, welfare, and safety of the population of the occupied country, and are subject to civil and even criminal liability.

Something else was, therefore, needed, to protect Cheney's cronies and their plans to loot Iraq's oil.

Immunizing the Oil Grab
What they came up with, was a sweeping scheme to fence off the revenues from any legal action or seizure. This was done in two steps:

UN Resolution 1483, drafted by the United States, provided immunity from legal process for the revenues from oil sales deposited in the Development Fund. Specifically this protects the funds from claims by creditors or those with claims against the previous Iraq regime.


On May 22, the same day that Resolution 1483 was adopted by the UN Security Council, President Bush signed Executive Order 13303, which gives U.S. oil companies and contractors blanket immunity from any liability or claims arising from anything to do with Iraqi oil. The EO was published in the Federal Register on May 28, and went unnoticed for weeks.
The EO is entitled "Protecting the Development Fund for Iraq and Certain Other Property in Which Iraq Has an Interest." In it, President Bush declares that "the threat of attachment or other judicial process" against the "Development Fund for Iraq, Iraqi petroleum and petroleum products, and interest therein, and proceeds, obligations, and any financial instruments of any nature whatsoever" related to the sale or marketing of such petroleum or petroleum products, "constitutes an unusual and extraordinary threat to the national security and foreign policy of the United States," such that Bush even felt bound to declare "a national emergency" to deal with this threat!

Cheney's Carpetbaggers: Looking for the Loot at the End of the Tunnel



The Constitition of Iraq has two laws in it that separates other mideast countries. The Fil which allows multinational companies or Individuals to operate businesses in Iraq and the Hydrocarbon law which will allow the multinational Oil Corps in Iraq to Enter into Psa's.



more to come


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#111 (permalink) 01-04-2007, 12:23 PM
paynes1
Supporter and Investor! Join Date: Dec 2004
Posts: 149

Control of Iraq's future oil wealth is being handed to multinational oil companies through long-term contracts that will cost Iraq hundreds of billions of dollars, according to a new report published today.

Crude designs: the rip off of Iraq’s oil wealth, reveals that current Iraqi oil policy will allocate the development of at least 64 per cent of Iraq’s reserves to foreign oil companies. Iraq has the world’s third largest oil reserves.

Figures published in the report for the first time show:

the estimated cost to Iraq over the life of the new oil contracts is US $74 to US $194 billion, compared with leaving oil development in public hands. These sums represent between two and seven times the current Iraqi state budget.
the contracts would guarantee massive profits to foreign companies, with rates of return of 42 per cent to 162 per cent.
The kinds of contracts that will provide these returns are known as production sharing agreements (PSAs). PSAs have been heavily promoted by the US government and oil majors and have the backing of senior figures in the Iraqi Oil Ministry. Britain has also encouraged Iraq to open its oil fields to foreign investment.

However PSAs last for 25-40 years, are usually secret and prevent governments from later altering the terms of the contract. "Crude Designs" lead researcher, Greg Muttitt of PLATFORM, said: "The form of contracts being promoted is the most expensive and undemocratic option available. Iraq’s oil should be for the benefit of the Iraqi people, not foreign oil companies.” ( His goes Back to th illuminatti theroy)

The new Iraqi constitution opened the way for much greater foreign involvement in Iraq's oilfields. Negotiations with oil companies are already underway, ahead of elections in December and prior to the passing of a new Petroleum Law. This report calls for full and open debate in Iraq about the way oil resources are to be developed, not 30-year deals negotiated behind closed doors.
Not only are these deals being negotiated without public discussion, ongoing violence in Iraq puts it at considerable disadvantage. Mr Muttitt explained: "Iraq's institutions are new and weak. Experience in other countries shows that oil companies generally get the upper hand in PSA negotiations with governments. The companies will inevitably use Iraq's current instability to push for highly advantageous terms and lock Iraq to those terms for decades."

Andrew Simms, Policy Director at nef (the new economics foundation) and co-publisher of the report said: “Its back to the future for Iraq. Over the last century Britain and the US left a global trail of conflict, social upheaval and environmental damage as they sought to capture and control a disproportionate share of the world's oil reserves. Now it seems they are determined to increase their ecological debts at Iraq's expense. Instead of a new beginning Iraq is caught in a very old colonial trap."

Iraq to lose up to US $194 billion in oil "rip-off"


Here is article about the export bank

In the creation of the Development Fund for Iraq, it was argued that this was to alleviate the poverty in Iraq and was sold as Humanitarian Assistance yet "one finds the fingerprints of the global economic structural adjustment that has attracted so much protest in recent years. World Bank and IMF programs, backed by the rules of the World Trade Organization, have imposed dramatic financial restructuring upon much of the world. Developing countries have amassed huge debts in exchange for selling out their natural resources to powerful Northern corporations." (Ibid.)

Instead of bailing-out the Iraqi people, new debt for Iraq’s people will formally accrue through the program that President Bush pledged would "benefit the people of Iraq." The Development Fund, derived from actual and expected Iraqi oil and gas sales, apparently will be used to leverage U.S. government-backed loans, credit, and direct financing for U.S. corporate operations in Iraq. Some of the funds are to go towards restructuring facilities and oil systems, pipelines, etc., and all are aware of Halliburton, Bechtel, Brown and Root receiving contracts under the Pentagon’s non-competitive bidding; some of the funds will also be used as collateral for projects approved by the U.S. Export-Import Bank (ExIm Bank). The mission directive of the ExIm Bank is the creation of U.S. jobs and the promotion of American business abroad, not humanitarian assistance.

As the two authors noted "ExIm recently announced that it was open for business in Iraq and would begin considering applications by subcontractors (that is, companies hired by Bechtel and Halliburton) in Iraq." (Ibid.) U.S. Corporations have found it difficult to obtain private bank credit for work in Iraq, due to the ongoing insecure environment. But the ExIm Bank has stepped in to take a lead role in facilitating U.S. business in Iraq just as it did during the Cold War when the ExIm Bank financed hundreds of American corporate projects in the Soviet Union even as Ronald Reagan called the regime the "Evil Empire." Also the Overseas Private Investment Company (OPIC) has, as its charter spells out, obliged by underwriting (insuring) the corporate ventures in Iraq and Afghanistan with U.S. taxpayers dollars. (Source; See "The Hydra of Carnage" this author, 2002)*

They blow-up a pipeline you and I pay to repair it. They blow up an oil facility, not only do you and I pay up front, but the Iraqi people find their debt burden increasing, as in the end it will be the Iraqi people who must pay for all of this. The corporations make their money in compensation and profit, all their costs covered, they never lose as they control the machinery of governance as surely as they profit by it. Peter S Watson is the current director of OPIC, and has the usual suspect’s credentials for this particular governing administration.**

Protecting U.S. Oil Interests in Iraq.

The Members of the International compact will not allow a reprint to happen unless it is lower denomintions.

Has anyone given any thought to how these last 2 aution of CBI Bills which happend at the end of Dec play into all this ?? ( 380 billion dinar in question here )


Announcement Number(4)

The Central Bank of Iraq issued CBI bills and adopted a mechanism to be applied on CBI bills auctions that will be held periodically, and the results will be announced at [ eleven a.m ] after the closing time of the auction at [ ten a.m ] .

The auction NO. 4 for Central Bank of Iraq bills based on a uniform price auction for ID 180.000.000.000 par value for the CBI bills concluded on 27-12-06. The total Public bidding is ID 180.000.000.000 and the cut-off yield (the highest yield of a successful bidder) determined by the auction was 20.00%

Hassan H.AL-Haidary

D.G. OF Agreements & Loans

Details (amount in Iraqi dinars)
Notes

Securities Offered
CBI bills

Initial Public Offering
180.000.000.000

Total Public Bidding
180.000.000.000

Uniform or Multiple Price Auction
uniform

Term of Security
364 Days

Coupon
None

Settlement Date
12-28-06

Maturity Date
12-27-07

Competitive Bidders
1

Winning Bidders
1

Total Valid Competitive Bids
180.000.000.000

Total competitive Bids Awarded
180.000.000.000

Range of Yields of Valid Competitive Bids
[20.00%-20.00%]

Cutoff Yield ( Highest Yield of Successful Bidder )
20.00%

Bids Received as % of Amount Offered
100.00%








Auction of CBI Bills

Announcement Number:D10

The Central Bank of Iraq issued CBI bills and adopted a mechanism to be applied on CBI bills auctions that will be held periodically, and the results will be announced at [ eleven a.m ] after the closing time of the auction at [ ten a.m ] .

The auction No D10 for Central Bank of Iraq bills based on a uniform price auction for ID 200.000.000.000 par value for the bills concluded on 19-12-06. The total Public bidding is ID 200.000.000.000 and the cut-off yield (the highest yield of a successful bidder) determined by the auction was 15.00%

Hassan H.AL-Haidary

D.G. OF Agreements & Loans



Details (amount in Iraqi dinars)
Notes

Securities Offered
CBI bills

Initial Public Offering
200.000.000.000

Total Public Bidding
200.000.000.000

Uniform or Multiple Price Auction
Uniform

Term of Security
182 Days

Coupon
None

Settlement Date
12-20-06

Maturity Date
06-20-07

Competitive Bidders
1

Winning Bidders
1

Total Valid Competitive Bids
200.000.000.000

Total competitive Bids Awarded
200.000.000.000

Range of Yields of Valid Competitive Bids
[14.00%-15.00%]

Cutoff Yield ( Highest Yield of Successful Bidder )
15.00%

Bids Received as % of Bids Awarded
100.00%


Auction CBI

Originally Posted by rvalreadydang

I'm sorry if wrong one, is this it?

The Arab Monetary Fund and the International Monetary Fund within the framework of the program of their joint regional training seminar for senior officials on "institutions and economic growth in Arab countries" in Abu Dhabi in the United Arab Emirates during the period 19 - 20 / 12 / 2006. وافتتح الندوة دوق النقد الدولي.The symposium was opened by HE Dr. Mohammed Khalfan bin Kharbash, Minister of Finance and Industry in the United Arab Emirates, HE Dr. Jassim Al Manai, director-general, board chairman of the Arab Monetary Fund, HE Mr. Takatoshi Kato, Deputy Director of the International Monetary Fund. وركزت .The Symposium, which brought together ministers and governors of central banks from various Arab countries, along with other high-level figures from the elite policy-makers and economists from the region and beyond, on how strong institutions to support growth in the Arab region. .Participants agreed that the composition of the special population in the region - which represent the young labor force and rapid growth-make of growth and job creation need good economic, social and political imperative. .The region needs a real growth rate of between 6 and 7% annually, double the rate witnessed in the late 1990s, in order to prevent the occurrence of significant unemployment problem; This is in addition to the role of sustained growth in the higher levels of prosperity and well-being of the citizen in the region. القضايا التالية:In the face of this development challenge facing the Arab region, participants in the symposium focused on the following issues :



تحديد.Identifying institutional challenges facing the region and its sources.
النمو.Measuring the impact of the quality of the institutions and governance on economic growth in the region and identify the channels through which to influence growth.
.Discuss strategies needed to support quality institutions in the region and the reduction of barriers to achieve faster economic growth.


وكان.There was general agreement among the participants in the symposium in that there is still a gap between the government administration countries of the Arab region and other countries with similar income levels. .These include the gap of a wide range of indicators, including bureaucratic performance and the rule of law and accountability among other aspects of institutional quality. أن.The participants felt that such a gap could be attributed mainly to the weakness of the institutions at the national level and at the level of companies that will help to develop and activate the private sector and the public sector over-sized. .The government intervention in regard to the economic rivalry of private sector investment and employment, and weak institutional quality led to a reduction in the growth rates through the negative impact on productivity and capital accumulation.



.Finally, there was broad agreement that the gap governance in the region do not always represent the situation. .The participants discussed a number of mechanisms that would promote institutional change, including the liberalization of trade and development of education, rehabilitation and openness to information and rely on the cornerstones of Foreign Affairs. .Such mechanisms would help to create sound institutions, which will no doubt be supported through accountability, participation and political will.

WAY COOL - THANKS FOR BEING ABLE TO DO THIS.

THIS GUY WAS IN THE BEGINNING - HMMMM LOOKING FOR AN EMAIL ADDRESS SO WE CAN SEE WHAT HE THINKS NOW. CHEERS

John Taylor, Scholar
and Policymaker
Class is in session: Economics 101 with Professor John B. Taylor. An
extended interview by Douglas Clement of The Region.

I RAQ
Clement: Thinking about international work, some of the most arduous
efforts you have undertaken were in Iraq, where you helped to reestablish
the central bank. How do you go into countries where the financial infrastructure
has been torn apart and begin to rebuild? And are you optimistic?

Taylor: Oh, yes, I’m optimistic about both Iraq and Afghanistan, where
I also worked to rebuild financial systems. I think the progress made on the
financial side in Iraq was unbelievable. It was amazing how successfully it
all went. A whole new currency was put in place in just a matter of months.
A new central bank was established; central banking law was developed.
Ideas are what we do at think tanks, research departments, and
universities. But the implementation of ideas is what you do when you’re
making policy. I miss implementation. It is both rewarding to contribute to
public policy and intellectually challenging.
There was no financial chaos, which was really a major concern when the
Saddam government fell. We prepared for months in advance.
So I think the way I would answer your question is just to be prepared
and have some plans that you’ve worked out even though you don’t know
precisely what the circumstances will be. This is a management and leadership
question. We had to have knowledgeable people on the ground
who could talk to the career people in the central bank or the finance
ministry after the government fell. Brave people, experienced people,
they have to know to report back to Washington if there are changes in
the plans. We set up what I called a “reach-back” operation in Washington
to provide that capacity. You also have to have communication up
through the chain of command in Washington. And you need the best
experts you can find.
And good, basic monetary theory came into play. How much of the new
currency are people going to demand? How much new currency needs to
be printed? And how fast would it be printed? We had to print so much
currency that it took 27 huge planeloads to fly it into Iraq. It was printed
at seven locations around the world. And then it had to be shipped to 250
distribution points around the country.

Clement: A huge helicopter drop of money.

Taylor: It was indeed. It was much more than an economic issue. It was
also a security issue and a logistic issue. You have to assemble all the things
you need to run an organization, keep it running like clockwork, and even
then things can go wrong. I was just so thankful that nothing went wrong
in the currency exchange.

A longer version of this interview appeared in The Region (a quarterly publication of the Federal Reserve
Bank of Minneapolis) 20, no. 2 (June 2006), which can be viewed online at The Federal Reserve Bank of Minneapolis.
Available from the Hoover Press is Strategic Foreign Assistance: Civil Society in International
Security, by A. Lawrence Chickering, Isobel Coleman, P. Edward Haley, and Emily
Vargas-Baron. To order call 800.935.2882 or visit Hoover Press.
Hoover Digest N 2006 · No. 3 189 ©
Photography by Stuart Schwartz

Originally Posted by CharmedPiper

UPDATE: CNBC SQUAWK BOX reporting the London Independent reporting that Iraq's Hydrocarbon Law becomes a reality this week. This will allow big oil such as Exxon and Shell to stake claims in Iraq's vast oil reserves. Although drilling may not begin immediately foreign investors can secure their future in Iraq. (I can only write so fast, so I tried to catch everything I could). They are running Iraq Oil news every 15-20 minutes.....I have never seen them do this before regarding Iraq. These are hard-nosed financial investors that don't report on speculation. WOOOOOOOOOT!

Charmed, thanks for all your hard work and reporting.
Can you help out here again and pick out which segment had this report.

MSNBC - CNBC Video Gallery Front Page

INFO ABOUT TAYLOR FROM MY POST ABOVE:
John B. Taylor
Chair of the Working Party on International Macroeconomics for the Organization for Economic Cooperation and Development (2003-05) OECD WOW!! I CRAWLED ALLLLL OVER THE WEBSITE LAST WEEK IN MY OIL RESEARCH.

Under Secretary for International Affairs for the U.S. Treasury
(2001-05) HAD THIS JOB SAME TIME AS OECD.

Professional Activities

Managing Editor of the International Journal of Central Banking
(2005-present)
CHECK OUT THE BOARD MEMBERS TO THIS JOURNAL:
http://www.ijcb.org/journal/ijcb06q4a0.pdf

December 2006 issue contents

OK I KNOW SOME MAY NOT THINK THIS HAS TO "DO" TO DATE WITH DINAR BUT LOOKING OUTSIDE THE CIRCLE AND BEHIND THE CLOSED DOORS - I AM FINDING A HUGE CIRCLE - EVERY THING AND EVERYBODY IS PART OF THIS CIRCLE!!

CHEERS - BACK TO THE CIRCLE

Originally Posted by H2O_Lover

Has anyone given any thought to how these last 2 aution of CBI Bills which happend at the end of Dec play into all this ?? ( 380 billion dinar in question here )


Announcement Number(4)

The Central Bank of Iraq issued CBI bills and adopted a mechanism to be applied on CBI bills auctions that will be held periodically, and the results will be announced at [ eleven a.m ] after the closing time of the auction at [ ten a.m ] .

The auction NO. 4 for Central Bank of Iraq bills based on a uniform price auction for ID 180.000.000.000 par value for the CBI bills concluded on 27-12-06. The total Public bidding is ID 180.000.000.000 and the cut-off yield (the highest yield of a successful bidder) determined by the auction was 20.00%

Hassan H.AL-Haidary

D.G. OF Agreements & Loans

Details (amount in Iraqi dinars)
Notes

Securities Offered
CBI bills

Initial Public Offering
180.000.000.000

Total Public Bidding
180.000.000.000

Uniform or Multiple Price Auction
uniform

Term of Security
364 Days

Coupon
None

Settlement Date
12-28-06

Maturity Date
12-27-07

Competitive Bidders
1

Winning Bidders
1

Total Valid Competitive Bids
180.000.000.000

Total competitive Bids Awarded
180.000.000.000

Range of Yields of Valid Competitive Bids
[20.00%-20.00%]

Cutoff Yield ( Highest Yield of Successful Bidder )
20.00%

Bids Received as % of Amount Offered
100.00%








Auction of CBI Bills

Announcement Number:D10

The Central Bank of Iraq issued CBI bills and adopted a mechanism to be applied on CBI bills auctions that will be held periodically, and the results will be announced at [ eleven a.m ] after the closing time of the auction at [ ten a.m ] .

The auction No D10 for Central Bank of Iraq bills based on a uniform price auction for ID 200.000.000.000 par value for the bills concluded on 19-12-06. The total Public bidding is ID 200.000.000.000 and the cut-off yield (the highest yield of a successful bidder) determined by the auction was 15.00%

Hassan H.AL-Haidary

D.G. OF Agreements & Loans



Details (amount in Iraqi dinars)
Notes

Securities Offered
CBI bills

Initial Public Offering
200.000.000.000

Total Public Bidding
200.000.000.000

Uniform or Multiple Price Auction
Uniform

Term of Security
182 Days

Coupon
None

Settlement Date
12-20-06

Maturity Date
06-20-07

Competitive Bidders
1

Winning Bidders
1

Total Valid Competitive Bids
200.000.000.000

Total competitive Bids Awarded
200.000.000.000

Range of Yields of Valid Competitive Bids
[14.00%-15.00%]

Cutoff Yield ( Highest Yield of Successful Bidder )
15.00%

Bids Received as % of Bids Awarded
100.00%


Auction CBI

Just like in our banking system local banks buy US T-Bill & Bonds and hold these as "secondary liquidity". Iraqi banks buy these bills with the dollars they have been taking in over the last year. Past expenses, there are only two things a bank can do with its excess cash. Loan it to the consumer, or invest it in securities such as these. You have to wonder what the local banks in Iraq have been doing with all of the money (US) they have been receiving. Buying these bills is one example. They still have the assets, they are in a different form. And at a 15% yeild, the return is very good. This is good news for those who own bank stock. Thank You.

(MENAFN) The Inspector General in the Iraqi Oil Ministry Stated that the delays in completing the processes of maintaining and replacing the meters used in southern ports still cause difficulties in calculating the quantities of exported oil, Iraq directory reported.

He indicated that the two American companies responsible for the maintenance have postponed the deadline formerly set by September 2006, to the end of February 2007.

However, the official stressed on the fact that a scientific, internationally recognized method is being used temporarily in measuring exported oil instead of meter readings in the southern ports presently. He pointed out that the measuring processes are strictly controlled by committees especially formed for this purpose.

(MENAFN) The Independent on Sunday weekly newspaper said that a draft law is to be presented to the Iraqi parliament soon to allow foreign companies to exploit Iraqi oil reserves, Gulf Daily News reported.

The US government was involved in drafting the law through a consultancy firm, the British weekly said.

The newspaper said that the early draft would offer oil companies much better terms, including 30-year contracts for extracting oil, instead of the current industry conditions for investing in the war-torn country. This draft would also offer shares, between 60 and 70 percent, of revenues of the state-owned oil to the companies that invest in infrastructure and in operating the oil wells, pipelines and refineries. After that, the companies could keep 20 percent of profits.

It is worth mentioning that Iraqi oil industry was nationalized in 1972.

Tuesday, January 09, 2007

KurdishMedia.com

London (KurdishMedia.com) 09 January 2006: After his talks with the Iraqi officials in Baghdad, the Kurdistan President Massuad Barzani made it clear to the public, via his speech in the Kurdistan parliament building, that the KRG would not send Peshmerge forces to Baghdad. After a number of conflicting statements by different Kurdish party and government officials, it is clear now, contrary to Barzni’s statement, Peshmerge forces will be sent to Baghdad to become “victims” in the words of Barzani. Barzani also made it clear that Peshmerge forces are not trained to provide security of Baghdad. The Kurdish officials tried to recover from this U-turn by stating: these Peshmerge forces that are sent to provide security of Baghdad are not Peshmerge forces of Kurdistan, but Peshmerge forces working for the Iraqi government. Is this convincing?

However, the prospect of sending Kurdish Peshmarga to Baghdad to provide security to this war torn city has immense implications for future inter-communal relationship as well as drawing Kurds into a raging civil war. From the early reports it is apparant that once again this decision has been made by political parties rather than the Kurdish National Assembly.