It’s almost mid-November already and still no solid announcement from the CBI of the conducting the Project to Delete the Zeros. NO, the RV has not yet happened. The U.S. election is now over and so we should expect some information on this soon, if they are still going along with the target of early January 2025, as I was told. I know we heard this in the past previous years and yes this was the plan back then too. But we are here now and it’s a new fiscal year coming for Iraq and, as we all read in the recent news, Iraq could not be in a better position to get their currency returned to them.
So, it’s important to tell, that what is about to happen and this RV saga come to an end concerning the currency auctions. What exactly is about to happen at the end of the year?
2003-2024 PERIOD
First, let me explain briefly how the sanction process of the currency auctions worked since 2003 and then I will explain how they will work post 2024. As you may recall the Iraqi merchants sell products and receive Iraqi Dinars from the marketplace. Unfortunately too many dollars too entered the marketplace, but mainly Iraqi Dinars were used. This created the black or parallel market. These Iraqi Dinars in circulation are the large three zero notes. The merchant then takes these Iraqi Dinars to the bank and exchanged them for dollars. Where do these dollars come from? They come from the U.S. Let me explain.
When Iraq sells oil, the oil must be paid in US dollars (petro-dollar). The money is paid into a US bank, JP Morgan/Chase bank in New York, into a DFI fund (Development Fund For Iraq). This fund is protected against creditors by US presidential executive order 13303. The cabinet ministries of Iraq then develop their budget each October and send it over to parliament to pass. Once passed it undergoes some scrutiny of the US Federal Reserve, and if approved, the US flies over plane loads of $100 dollar bills to the CBI to cover the cost of the annual budget. Any oil sales revenues remaining in the banks goes into the CBI reserves and to pay Kuwait for war reparations.
The reason that the US forced this process upon Iraq is three fold:
1. To curb any funding to terrorists’ organizations that could potentially fight occupying US troops in Iraq and during the short invasion timeframe. Of course this did not work out too well as the US dollars soon flowed to Iran to overcome their sanctions. The process actually became counter-productive to what the UN was trying to achieve.
2. To ensure Iraq is paying their war reparations to Kuwait every year, as stated in the Chapter VII sanctions. Seeing that the US holds all their oil sales revenues, this was like insurance that these reparations would be paid. They were paid in full as of Dec 2022.
3. The process of using the dollars caused a demand for the US dollar. Since the “fiat” US dollar is no longer gold backed, it depends mostly on “speculation” to hold a demand for it. This keeps it from crashing. This too is why it took so long to end these currency auctions.
Do you understand so far, the process of the currency auctions and why they were instituted? Remember these auctions were only planned to be in place 5-7 years while Iraq could get their constitution in place and implemented. Unfortunately, some events happened along the way to drag it out and delay it longer. I will not get into these events. Most of you know what they were and witnessed the dinar drama over the last two decades.
So, where do they go at the end of 2024? The plan is to eliminate the currency auctions altogether. This is a huge step towards their sovereignty and I hope you will understand why at the end of this RV STATUS today. However, if they do this then how will merchants get their dollars to pay for imports?
The merchants will get their dollars through “correspondent” banks, meaning they will go to the Iraq banks with their Iraqi Dinars and the Iraqi Dinars will be transferred electronically to banks cooperating in the process (right now there are only 4 but more are being arranged) to convert Iraqi Dinars to dollars or any other currency needed by the exporter to Iraq. But this process is nothing new as this is how most countries conduct normal international trade. But the problem now arises with Iraq only because who wants the Iraqi Dinar at 1/6 of a penny? This is why only four banks so far agreed to do these exchanges. The other banks still do not want the dinar since it is not yet traded internationally and so what the hell do they do with it if they do obtain it? Who will want it from their bank. You see it goes back to speculation and perception again, which has so much to do in the currency markets.
POST 2024
So, when the CBI stops exchanging the Iraqi Dinars to dollars for the merchants come the end of 2024, there may be a backlog of business since the exchanges might be delayed until the process kinks are worked out and more banks accept the Iraqi Dinars over time. But why would they want to accept the Iraqi Dinars as it is still not globally traded. so we go right back in a full circle don’t we, unless the plan is to reinstate the Iraqi Dinar at about the same time they end the currency auctions in Iraq. Do you see it now? Do you see why my CBI contact told me they almost must reinstate the Iraqi Dinar at about the same time or very shortly after they make this move at the end of this year. It will also force the next administration to decide to move Iraq forward or keep it suppressed. This is why I kept telling you about the timing of the RV can’t possibly happen until after the elections. It’s all in the timing, get it? The US elections are at the end of the year too. Get it?
This is why this move to end the currency auctions is so important to us investors. Remember also that the CBI will be no longer taking dollars from the oil revenues to pay for imports. If this is the case don’t you think the dinar must have some substantial value?
So, we can also now understand the push of the country of Iraq to get out of their “rentier” economy (mainly oil revenue based) and do it now. They will of course continue to sell oil but this is no longer going to be the main driver for their economy.
Iraq must grow its economy and so isn’t all the news now about the economy as the banking reforms are mostly all now all in place to help facilitate this growth? Also remember too the other sources of revenues to the GOI such as taxes, customs and tariffs. If Iraq can grow its economy the GOI can tax the excess revenues of the private industry. They can also shift the salaries, pensions and retirements payouts to the private industry, thus lessen expenses at the same time. We read in today’s news too about the port of Faw in the article titled “PRIME MINISTER: WE ADHERED TO THE GOAL OF COMPLETING THE GREATER FAW AS THE GATEWAY TO GREATER IRAQ”. He explained that “this project has actually entered into the knots and paths of global trade and transport routes, which pass through the Middle East region, which has great strategic importance for global trade.”
What I am saying is this – Iraq must now be the economic super giant it is destined to be. They are doing it right in front of our noses. How God’s Hand is going to bring them all this wealth after all their suffering. Over thirty years of it. Our God is a merciful God who truly wants everyone on the planet earth to be successful with bountiful wealth and happiness. But it is a constant fight between good and evil. Now the good seems to be moving ahead finally.
I am also giving you a short lesson on how economies work and how they are financed in a capitalistic system. With maybe millions in your bank account in the near future I hope you can talk sensibly about this sort of business. Also how the government can be used to BEST SERVE the people. The government should just be a vehicle and only a vehicle not the end result in itself, to funnel money into the right direction were needed and put minor controls in place to keep everyone honest and to monitor the system. It should not be the system. Get it? There should not be so many laws, rules and restrictions that the flow of business thus money is slowed down. Money must flow through the people’s hands in a vibrant capitalistic system. The wealth cannot be concentrated all at the top. When the money dries up at the bottom you can’t just print more fiat money, as this only causes inflation. Instead, you must find ways to get if from the top and bottlenecks and keep it flowing throughout the economy. Taxation is one way but not necessarily the best way. More good paying jobs is best as with that also comes pensions, retirements and small businesses, etc.. Did you know that its the small businesses and not the big major corporations that support the economy the most? So why does the government then favor the larger corporations more? Could it be they seed their politicians into the government or lobby them? So, we need all the components that keep the money flow going and we need to be careful of the components that can suck the money out. It has to flow. This is all a good economists looks for. These are called economic “indictors”. The worse situation is when there is so much inflation caused by careless, reckless government “over spending” that money then has to sucked out of the economy to pay for the govt debt. Where does the money go? It goes right to the top of the money chain to the wealthy bankers who finance the debt. Do you see the cycle? Then the government carelessly just prints yet more money…… we’re not on the gold standard anymore and so we can do this. This only worsens the situation. If the cycle continues long enough hyper-inflation sets in and you are in deep trouble. The value of the money goes down thus it takes more to purchase items. This is called inflation. To adjust and reduce inflation (de-flation) you must take money out of circulation thus each dollar in the monetary mass is then worth more. This is what Iraq is now trying to do as part of their currency reform. The US will also have to do this at some point and then go back on the gold standard to keep this inflation from happening again.
In other words, the elite cannot manipulate the system enough through the powers of the federal or state governments to control it for self-serving enrichment in disregard to the average citizens. We can see this is what has happened in the US in that too much influence from the major corporations and outside entities manipulate government elected officials to pander to them, leaving the average citizen to suffer with this inflation. Also social welfare giveaways (socialism) is also not the answer either as this only pushes too much government money out into circulation without creating any real jobs or incentives to work and the other items I talked about to go along with the process. These ideologies from these outside entities like the World Economic Forum and the United Nations really disturb me as they all push these socialist ideas. If implemented it gives the government huge powers and control over your life, as you become subservient to the government who you rely on to provide for you. By any means, this is not freedom. Its like having a ring through your nose. They can then pull you along anywhere they want to. You are a captive.
It is now so obvious to anyone with half a brain that something weird is going on for total control over the citizens of the US by these global entities. This is not democracy either, as the government is supposed to be by the people, the average citizen, not some small group of elitists who figure ways to manipulate the system and control it through seeding politicians via fraudulent elections then have these crooked politicians to do their bidding. There is not a country in the world now or ever that will be or can been successful in fulfilling the needs of the people under socialism and also allowing the freedoms and liberties to coexists. It is a contradiction. Just from the money standpoint and economic growth, applying what I talked about how money works, you can easily now understand why socialism, and in particular Marxist Socialism/ Communism, will not ever give society a vibrant economy. It simply is not set up for this but rather total control instead over the individual. This is really its main goal with these types of governments. I this what you want in the US or Iraq? Look at how long it’s taking Iraq to transform itself from the Saddam era socialism to capitalism. The US is already under a capitalist system why go back?
There is an article titled “ELECTRONIC PAYMENT IN IRAQ .. SUCCESSIVE GOVERNMENT ACHIEVEMENTS FROM LOCALIZING SALARIES TO ENHANCING FINANCIAL INTEGRITY“ Iraq is witnessing a clear development in the field of electronic payment, as the government has developed plans to enhance digital transformation in payments and facilitate financial transactions for citizens within its achievements in this field, the Iraqi government launched many initiatives to facilitate electronic payment, and there are special campaigns for awareness, including the Asfalk campaign, which aims to educate citizens about the importance of electronic payment. My CBI contact told us these videos were coming as got closer to the Project to Delete the Zeros and so here they are, yet another one. I tried to set the translator to English but it’s not all showing the captions very good. Sorry! You can get the full script in the Articles Section below.
In the article titled “PARLIAMENTARY OIL: GAS LICENSING ROUNDS WILL SUPPORT THE FINANCIAL BUDGET” that the Parliamentary Oil and Gas Committee stressed, on Thursday, “the importance of gas licensing rounds in diversifying Iraq’s imports and supporting its budget with new sums”. I especially like when they use the language like” new sums”. This shows us these are new revenues to overcome this rentier economy, something they need to accomplish to make these drastic changes to the currency reform we all want. We know also they are now exporting petroleum by-products derived from the oil as another source of revenue “new sums”. Remember also there are now two refineries online producing gasolene and diesel fuels. So this dependency on Iran is lessened.
In another article titled “ARTICLE 140 DISPUTE RESOLVED.. NINEVEH ANNOUNCES READINESS FOR CENSUS DAY AND REFUTES FEARS” that Article 140 disputes may finally be coming to an end. Nineveh Governorate, northern Iraq, “is preparing to conduct a general population census on November 20 and 21, in the first census to be conducted in the country since 1997 .” The population census issue represents a thorny political issue in Iraq, more than it is an organizational procedure, due to its connection to the election process and the quota system on which the political process in Iraq is based after the American invasion . This is all VERY GOOD news and tells us yet another constitutional requirement may be completed.
One more article worth mentioning is titled “AL-ALAQ DESCRIBES THE PARALLEL DOLLAR AS “ABNORMAL”: THERE IS GREAT STABILITY IN PRICES”. I feel I need to explain this parallel market a bit today. How will it get its dollars after the currency auctions end this year?
The Governor of the Central Bank of Iraq, Ali Al-Alaq, described the prices traded in a real parallel market as “abnormal,” while pointing out that there is great stability in prices and a decline in inflation rates. Al-Alaq said in an interview with local media outlets: “We understand the focus on the rise in exchange rates in local markets, but we believe that the focus should be on the ability of the Central Bank to implement full coverage of foreign transfers for commercial or other purposes, and this happens on a daily basis.”
Basically, there will no longer be any means to steal dollars using the currency auctions as the entire process will end. This black market will all but eventually dry up as dollars will be hard to get unless you purchase them from the bank at official CBI rate, them mark them up. This is what Ali Al-Alaq is telling us. They still pay the official rate to get them. Also remember that there will always be currency exchangers on the streets in Iraq as this is their profession and livihood. The important part is the impact on inflation and they won’t matter much anyhow. Also think that they take pressure off the banks and with future projections of the huge tourist industry these exchangers may be needed.
We can see a huge demand for the dollars in the parallel market on the onset of the ending of the currency auction process. So it’s not dead yet. More than likely Iraqi economists say there will be delays and backlogs in securing dollars from the existing agreements of only 4 correspondent banks abroad. But as time passes, this will work itself out. Also the reinstatement of the dinar on FOREX will facilitate more and more banks coming online and wanting to handle the dinar. It is all going to work out.
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Q & A
Question: Ian
Thank you, Mountain Goat, for all your hard work over the years. You are the “GOAT”!
Although I was a third-time Trump supporter, I still have questions as to how he was allowed victory for a third time. Has Trump become part of the establishment? I worry that some of the same players who undermined him during his first administration will be allowed back in. I hope I am wrong.
One question I have: you mentioned the Alien Enemies Act of 1798 as a potential means to carry out mass deportations of illegal immigrants. After researching, I found that this act empowered the U.S. government to take certain actions against foreign nationals during times of war based on national security concerns. However, the Alien Enemies Act cannot be used to carry out a broad deportation of illegal immigrants. The act, while still in effect, is limited in scope and would not apply to most undocumented immigrants in the United States, as I understand it.
Even though I consider these people invaders brought here by communists to implement the Cloward and Piven Strategy, I struggle to see how this act could be used for the much-needed deportation. I would love your feedback on this topic.
Answer: Mnt Goat
Gutten Tag Ian. Hope all is well you. To answer your question, I first want to say I did not say anything concerning the Alien Enemies Act of 1798. It was instead former president Trump and then again said by president-elect Trump in speeches about what he would do immediately upon his inauguration. Their words not mine, get it? But I think you might have something when you researched and found the following statement in the act including “to take certain actions against foreign nationals during times of war based on national security concerns”. Have I not been telling you all along we are at war? These last 4 years have been a covert war from within the U.S. government run by the Executive branch, FBI and CIA of mostly non-elected officials who sit behind the scenes and in the background have been dictating instructions to many rhino congress reps and senators of their agenda. You also need to remember that a state of war on terrorism was declared by president G.W. Bush way back in September 20,2001. I don’t know about you but when I saw these massive riots in just about all out major cities conducted by Antifa and BLM this struck me as terrorism because they were pre-planned and triggered for a reason. Just because they come up with an incident to trigger these riots does not make them a noble cause and worthy. Folks it was not coincidental they hit us with COVID first and then the Riots. The Marxists need crisis after crisis to wear you down until finally you cave into their madness and pass their new laws, giving the enormous powers and controls. They when they get this they pass even more laws for yet more power and control. Then the nation is doomed. But they are NOT winning this war are they? But none-the-less it is a covert war. They would luv to see it breakout into a full blown civil war in the US but God is holding that back, as he brings us victory after victory. Too bad the crooked news media do not inform the citizens everything that is happening behind the scenes.
