US STATE DEPARTMENT: WE WILL TAKE ALL MEASURES TO PROTECT OUR INTERESTS IN THE MIDDLE EAST
The US State Department announced today, Wednesday, July 31, 2024, that Washington will take every possible measure to protect American individuals and interests in the Middle East.
The US State Department said in a statement, “We have seen Hamas’ statement regarding Haniyeh, but we do not want to speculate on any repercussions or reactions to the incident,” referring to the assassination of Ismail Haniyeh.
She pointed out that “the US commitment to Israel’s security and its defense against any reckless attacks that Iran may launch is firm and unwavering.”
She noted that “her efforts to reach a deal and bridge the gaps are still ongoing and represent a priority for us and for the region.”
IRAQI ARMED GROUP ASSERTS READINESS FOR CONFLICT WITH US
Harakat Al-Nujaba armed group reaffirmed, on Wednesday, that no ceasefire exists between its factions and US forces, emphasizing their readiness for “potential confrontation with American troops.”
Harakat Al-Nujaba is part of the Islamic Resistance in Iraq (IRI), which is an umbrella organization encompassing all Iran-backed Iraqi armed groups such as Kataib Hezbollah, Harakat Hezbollah al-Nujaba, Kataib Sayyid al-Shuhada, and Harakat Ansar Allah al-Awfiya (HAAA), all of which are designated by Washington as Foreign Terrorist Organizations and Specially Designated Global Terrorists.
Notably, the United States has around 2,500 troops in Iraq as part of the International Coalition against ISIS. Iraq has requested that troops from the US-led military coalition begin withdrawing in September and formally end the coalition’s mission by September 2025.
PARLIAMENTARY COMMITTEE: PARLIAMENT WILL HOST THE CENTRAL BANK GOVERNOR FOR THIS REASON
The Presidency of the Council of Representatives agreed to host the Governor of the Central Bank of Iraq, Ali Al-Alaq, during the upcoming sessions of the Council of Representatives.
Member of the Parliamentary Integrity Committee Hadi Al-Salami confirmed, in a statement to the National Iraqi News Agency / NINA /, that “Hosting the Governor of the Central Bank will be to answer the oral question before the Council of Representatives regarding the exchange rate in the parallel market, and the large financial difference from the official exchange rate, as well as what is related to the application of the standards of transparency and confidentiality and not announcing the daily bulletin of the Central Bank.”
RV updates
Welcome to August!
No, the RV has not yet happened as many say in disregard to the TRUTH as the idiots who speculate and tell you differently do not follow reality or simply don’t care to study the investment in the detail needed. Today I want to first summarize my 7/30 Newsletter highlights then, get into the current news and how it applies. Yes, when it rains if pours, but remember the storm does not last forever and the sun does come out and shine again…..
So earlier we learned that the U.S. Federal Reserve (Feds) adopted a new strategy towards Iraq. The dollar is being threatened with rising to unprecedented levels. I need to remind my readers that the Feds know very close to the amount of US dollars needed to support the Iraqi economy and pay for imports under the “sanctioned” like currency auctions still in place. Yes, still in place almost two years after Chapter VII was fully lifted.
There are many days when this amount in the currency auctions nearly doubles. On the average at the end of the month the amount is way beyond the necessary dollars need to support the Iraqi economy. Does this sound weird to you? So, what does this tell the Feds when they audit Iraq?
It says there is still massive money laundering going on and this money (US Dollars) comes out of the oil revenue generated from the sale of oil. As you also may remember this money is sent to Iraq still from the Feds at the request of the CBI to fill the needs of the economy. So, the CBI is very much aware of what is going on and so are the Feds. Being still solely pegged to the dollar gives the Feds legitimate formal permission to monitor and take actions needed to protect the dollar. There are also other issues as to where the dollars are going to bypass US sanctions of neighboring countries and certain people.
Then in another article from my prior Newsletter, an Iraqi economist told us that the central bank does not have the upper hand over the banking system amid financial and institutional corruption. In other words, they do not have full control of where the dollars are going and why this level is so high.
You know after all these years and all these articles about fighting the currency auction corruption you might think this is weird to now read about all this corruption. Right? Well I have to tell you I too am stunned. Have they been lying to us investors all along?
Yet another article by a Member of the Political Bureau of the Imtidad Movement, Masoud Al-Rajhi, confirmed today that the Central Bank has lost its sovereign decision ability and had been compromised due to the presence of two factors that hinder its work: 1.conflict of interest and 2. Corruption. The CBI calls on Prime Minister Mohammed Shia Al-Sudani to take 7 measures to eliminate the roots of corruption in a serious and inevitable manner.
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Having then set the stage for today’s news, we read more recent articles from Iraq tells us the Iraqi government is taking steps to correct these issues and what needed reforms are still necessary. We learned about these issues on Tuesday. Remember these measures were already in the making long before Tuesday’s news came out. The nature of the reforms tells us they would have to be already started. Get it? Don’t think this is going to be a long, long process but certainly not days, maybe more like months.
Again, there is Event/Issue, Cause, Solution. Iraq will eventually come around to the stability levels it needs in the three Pillars of Financial Reform (Banking, Insurance and Stock Market) necessary to move ahead again. WE know this next major move that was already supposed to have happened is the Project to Delete the Zeros and it is behind. We must not discount all the reforms already accomplished and throw in the towel just because the Feds are now stepping in and trying to move the country steps further. Yes, they are shaking it up. Oh…. didn’t God tell us through the prophets there would be “A shaking will occur” and “What can be shaken will be shaken”? Do you think this applies only to the USA and its politics? Iran also will be shaken and this evil leadership will pay the price for what they are doing to the world with the oil wealth God has given them. Meanwhile their people suffer. This entire middle east will be “reconstructed” God’s way. It is coming.
So, this is all VERY good news and we should be happy to see it playing out. Is your glass half full or half empty? As investors, we must stay focused. I know it has been a long time to get these reforms in place. You don’t think I also want this RV really bad? In the meantime, it is the corrupt intel gurus that have their calls and spread lies that confuse you and help you get on the roller coaster each week. This is also part of the problem too. Too many people sticking their noses in the intel that are not responsible enough to know how to handle it and interpret it.
Another word of advice is to please stop trying to figure it out and speculating. Everything is going to come together and it will happen suddenly. The news is again telling us today that we should not expect the Feds to approve the Project to Delete the Zeros (the next major move in the dinar currency reform) until these issues are resolved. Then they are telling us the actions being executed to fix it. What the hell more do you want?
From the recent news from Iraq this period:
The articles this period are as if they were tailored specifically to address what we read in the news from Tuesday. Coincidental? I don’t think so. Like I keep telling everyone that most of the events you witness are well orchestrated and planned. Sometimes they let events occur they could have prevented just to follow-up later and put pressure on a solution, a direction they wanted to move all a long but couldn’t do it any other way. They need the crisis to get the solution. So, we see this now occurring in Iraq. The CBI has been asking for outside help and now they may be finally getting the support they needed from outside.
So here is the list of reforms being taken to correct many of the issues defined from Tuesday’s news articles that are in todays news articles.
The United States is working to prevent the Iraqi banking sector from helping Iran evade U.S. economic sanctions by stopping the flow of currency to Iran and using Iraq’s dollar reserves as a conduit to Tehran. Washington aims to tighten its control over the movement of dollars from Iraq to Iran, Syria, and Hezbollah in Lebanon by pushing for the Central bank of Iraq to relinquish its role as an intermediary in purchasing currency from the U.S. Instead, major American banks will handle these transactions directly.
An informed source revealed that the US Treasury and the US Federal Reserve have asked the Central Bank of Iraq to take urgent and strict measures to merge the banks restricted from using the US dollar. They are talking about the 24 banks still sanctioned from using the US dollar/.
American side also asked the Central Bank of Iraq to close some troubled banks that suffer from financial and administrative problems. This is happening through attrition, as we read in another article that granting a license to the Arab Jordanian Bank and the Emirates Federation to work in Iraq, stressing that this method is killing Iraqi banks. They plan to begin their work in September.
The Central Bank of Iraq plans to withdraw from its intermediary role in purchasing hard currency by the end of 2024. As of now, no Iraqi bank other than the Trade Bank of Iraq (TBI) has obtained the necessary mediation from American banks. This shift is part of a broader strategy to limit the sale of dollars to American or foreign banks exclusively.
I will try to report back to you on the ongoing saga of implementation of these needed reforms. We can then set a clearer path that may lead us closer to any RV happening in the future.
Two other issue that I need to address also in the news today. These are also critical issues and should not be overlooked. Eventually they must be addressed too but no real solution is yet to be found or told to us.
Failure of the Iraqi Stock Exchange (ISX)
I encourage my readers to go read the article titled “CORRUPTION AND FAVORITISM WEAKEN THE IRAQI STOCK EXCHANGE: NEGLECTED LAWS AND A BITTER REALITY”
Many joint-stock companies and banks participating in the Iraq Stock Exchange have shown their failure to submit their final financial statements for the year 2023, reflecting a state of chaos and indifference towards the laws regulating the work of the Iraq Stock Exchange. The market suffers from a continuous disregard for the legal articles regulating the relationship between companies and the market, as Article 14 obliges listed companies to prepare and publish periodic financial reports that include balance sheets and profit and loss accounts, in addition to detailed annual reports. However, the reality indicates that many companies blatantly ignore this article, leading to a significant lack of transparency and information available to investors.
Irian backed Militia in Iraq. Can Iraq solve this issue?
Please go read the following articles in the Articles Section today titled:
“WASHINGTON INSTITUTE: THE FEDERAL COURT IS A TOOL IN THE HANDS OF IRANIAN MILITIAS TO DESTROY DEMOCRACY IN IRAQ” I don’t want to rub it in but I have said since 2014, when Iraq freely let Iran Kud forces into Iraq to fight ISIS that they would create havoc, take jobs and become the strong armed militia for the corrupt politicians. So here ya go….”I told you so”!. I also said at that time they will have to be removed as they will continue to cause havoc and damper the democracy of the new Iraqi Constitutional Republic.
Also read the article titled “IRAQI ARMED GROUP ASSERTS READINESS FOR CONFLICT WITH US”. So again these militias are challenging the presence of US forces in Iraq. Yes, this will continue to either the US forces leave or the Iran militias leave Iraq. No ceasefire exists between its factions and US forces, emphasizing their readiness for “potential confrontation with American troops.” This is the
Group calling themselves the Islamic Resistance in Iraq (IRI), which is an umbrella organization encompassing all Iran-backed Iraqi armed groups. We must stop and think about the millions of immigrants pouring into the USA. Are they planning also to create such groups here to influence it democracy and be an enforcement group to the corrupt? This is not too far fetched and don’t deny the facts we already know.
Q & A
Question from woldopep:
MG, Thank you for your explanations. Your work has been invaluable. I have donated to your newsletter. You make more sense than anyone in this arena. I do not want to seem ungrateful, I thank God for everything I have. What I take away from your explanation of when the dinar hits forex is that what used to be 1000 dinar is now 1 dinar. Am I extrapolating it correctly to say that what cost us $1000.00 US for 1 million dinar will be worth roughly 1000 x whatever the exchange rate. So if the exchange rate is let’s say $2.00 then basically $2.00 x 1000 = we get $2000.00 for every million ? Is this correct ?
Answer from Mnt Goat: Guten tag woldopep. Please go read the blog. This is why I put the information out there and took the time to document it. See the blog here is the Link I hope this helps you..
Question from Gavin M. Blair:
It doesn’t appear that Iraq will rolling out the project to delete the zero anytime soon. How will this effect their plans to substantially do away with the currency auction by year end? It seems we have a long way to go.
Answer from Mnt Goat: Guten tag Gavin. Yes, it may be some time. I do not feel this summer is out time. Please read the caption on today’s Newsletter on the very top. Maybe there is something really BIG going to happen end of year? You are on to something. Just saying,,,,, hint,,,, hint… Remember the CBI told us January is the best, most opportune time to revalue the currency with a significant change, such as what they are talking about. Remember also there will be change in the USA administration too. Biden and his bizarre administration will be gone. So again, we must look ahead. If January is going to happen they would have to ramp up the education of the newer lower denominations. Then begin the process to delete the zeros in November or December. But remember too its Iraq and anything is possible. I hate to over speculate and get people too excited but here we again for January….
