In MilitiaMan

We know the goal is to go to a social market economy. A Market economy is free to trade across borders. A program rate doesn’t get into the free markets. But, an international rate does get them into a market economy…Where they can borrow in effect from themselves with leverage from the value of the new exchange rate/currency. Just as the IMF and World Bank have told them. We see a clear theme lately that is pointing to that Iraq is backed into a corner. They have no liquidity to pay salaries and they tell us they have two choices…Austerity or float the currency. …So from the looks of things the cards will be on the table soon enough to see if any of this is pertinent or not. My bet is what is in print supports they will see the reforms through now…The solutions is to raise the value (financing by inflation) and floating the currency. imo.