This is driving people nuts and I don’t know why…there was a change in the value of the dinar and people are trying to speculate what that means and what’s going on.
I’ve used this analogy before…what makes Special Forces elite and better than anybody else? It’s their training. So whenever they have a task to accomplish they are not guessing. They have a plan a, b, c, d and e with multiple scenarios and multiple exit plans.
The reason I tell you this is that is exactly what Iraq is doing with its currency. That is the only reason the value changed this last week. It’s because they are testing the market.
But they are testing it at a very small level. Why are they doing that? Because they don’t want to guess. There should be a direct response on any type of movement of a currency…
It’s a test and nothing more. They want to see how the market reacts. That’s policy. The other question that’s kind of interesting is.
People say, “according to the IMF rules the dinar can only change 2%” Iraq is completely outside of it’s true value…it went from $3.25 then in the middle of the Gulf War to about $1.25 per dinar…then what did we do?
We flooded the country with it’s own currency…that’s manipulated. We did that on purpose. So how does the IMF rule apply to that? How about they get back to the market value with the equivalent amount of dinar they had out there. They reduced it [The number of notes in the market] right?
They reduced it but they still have the same value as when we all got started in this. So that raises a question and gives you an idea about how manipulated the currency is.
So you don’t need to go through the IMF rules…they don’t have to do anything. China doesn’t. the United States doesn’t. Iraq doesn’t. No body does. no one wants to follow the rules anymore…it’s full on competition. The big war right now is the currency war.