Three additional questions for Phoenix. Will Iraq RV Before or After the other countries revalue and/or devalue? And ... Do you still stand by what you said last week? And what is your take on the currency wars and will that effect Iraq? Stay tuned for Phoenix update! It's all coming together slowly but surely. Meanwhile, something to read ... The SDR Basket Composition is Reviewed Every Five Years by the Executive Board - Next Review Late 2010 ~ snip ~ The basket composition is reviewed every five years by the Executive Board to ensure that it reflects the relative importance of currencies in the world's trading and financial systems. In the most recent review (in November 2005), the weights of the currencies in the SDR basket were revised based on the value of the exports of goods and services and the amount of reserves denominated in the respective currencies which were held by other members of the IMF. These changes became effective on January 1, 2006. The next review will take place in late 2010. and we have link ~ OVERNIGHT GLOBAL REALIGNMENTS? CURRENCY WAR?
Phoenix Update: October 3rd 2010Well here were are....finally after months of waiting we get a solid announcement on the formation of the next Iraqi Government.
As per my last update I have suspected that the delays we have seen for the last 5 months were actually engineered to intentionally push back the announcement of the formation of the Government of Iraq by unseen forces working on the behalf of the United States government in conjunction with the IMF and World Bank.
Now this is only my personal speculation but this speculation is based upon close observation of the on going situation within Iraq and within the legislative process here in the US and the rest of the world.
I will add that during this time of seemingly endless delay in Iraq that became almost comical (some would say painful) to watch there were major changes within the banking sector as far as regulations and reporting and those changes and updates were made not only here in the United States but also in the EU and the Arab world. It is worthy to note that some of these major changes came as late as last week.
I had mentioned in my last update that my speculation on the delay within the Iraqi political process would see its end on the 1st of October which as I had pointed out was the first day of the new fiscal year 2011. (The United States fiscal year)
Ok...so the question many ask is....Why?
What would be the reason for this delay?
Well we have seen from direct statements in the news that 2 major events are to occur as soon as the Government of Iraq is seated.
1. We have seen direct statements from the Central Bank of Iraq that the plan to remove the higher denominations and the issue of the lower denominations will happen as soon as the new government of Iraq is seated.
and....
2. We have seen the direct statements in the news from the nation of Kuwait that all issues between Kuwait and Iraq are resolved and will be finalized as soon as the new government of Iraq is seated and therefore fulfilling the last major issue for Iraq in regard to United Nations Chapter 7 Sanctions.
So it would appear that the seating of the next Government of Iraq will be the trigger to the launch of events that bring to conclusion the revaluation of the Iraqi Dinar and therefore the apparent manipulation used over the past 5 months to delay this major economic event was done in order to finalize important banking and tax regulations here in the United States and the rest of the world.
And now...all preparation and changes are done and we are now in the 1st quarter of fiscal year 2011 (US)
Ok...so where are we right now and what's next?
We should see within this coming week a call to convene Parliament to get things rolling and to seat the government of Iraq.
We may even see it happen this very week...maybe.
Now Maliki has stated that well within the 30 days they will be finished filling all seats and from what I have read it will be much quicker...because over the last 5 months much work was done on the decisions on who would fill what seats has been made and they are ready to fill most positions very quickly and there is a very good chance we will see the formations happen within days and not weeks.
Also tomorrow, Monday the 4th. Iraq is to announce to the world the true extent of it's oil reserves...this is HUGE news and will lay out clearly for all the world to see the massive amount of wealth held by Iraq in it's natural reserves and will also help the world to understand the soon to happen revaluation of the Iraqi Dinar and also how this revaluation is not only possible but also how it will be supported.
So when will the Iraqi Dinar be revalued?
I speculate that it will happen soon after the top 3 positions are made official...those being the Speaker of Parliament, the President and the Prime Minister.
After that is OFFICAL...I say from that point the game is on.
Now...the next question is...so.....just what is the "game"?
We have all read the articles and announcements about the removal of the zeros and the new currency and as we all know that has brought forward endless debate and stress to dinar investors world wide and the reasons for the debate are understandable when looking at other historical situations with other nations.
BUT! Here is the situation...Iraq is not like any other historical model...and therefore the use of other nations currency changes are near useless when trying to project the future actions of the Central Bank of Iraq and its plans with the Iraqi Dinar.
The truth is they HAVE made it clear....sort of.....but the problem is everyone attempts to find the historical comparison and in doing so WRONGLY apply those historical situations onto Iraq and the Iraqi Dinar when in fact the true situation of Iraq and the massive wealth and resources held within the nation of Iraq have no comparison anywhere in the world and in fact the nation of Iraq and the wealth thereof are nothing short of an economic anomaly and being so require a "novel solution"
Therefore...as i have mentioned in the past what we are about to see in this "novel situation" is a "novel solution".
This novel solution that we are about to witness is a combination of a LOP and a revaluation happening at the same time.
This novel solution will be to announce the New Currency in Iraq...this New Currency will be the lower denominations.
At the same time the New Currency is launched the older higher denominations will be called in and retired...this will be done with a time limit to allow people ample time to exchange the old higher denominations with the new lower denominations.
How long will the Central Bank of Iraq set for this?
Answer: The Central Bank of Iraq has stated that the plan to remove the zeros (larger denominations) will be completed before the end of the year (2010)
Now....here is the "novel" part of the solution...at the same time the New Currency is announced and released the value of the Iraqi Dinar will be raised (revaluation).
So that is the "novel solution" to the "novel situation".
Now everyone may now better understand why everyone has been so confused on what is about to happen...the reason for the confusion has been the lack of historical precedent available to accurately plot the outcome.
I would like to add that this confusion was also by design and has been allowed to help stem speculation and as we can all see by the relative low numbers of IQD investors in this nation and the outright diversion many have to the subject of investment in the Iraqi Dinar this attempt has been for the most part very successful.
So...here we are....on the threshold of this "novel event".
Watch the news for official seating of the government of Iraq for that I feel....will be the trigger.
So that's I all have to say about that....
Support your local bank and the United States banking system.
Pay all due taxes as and when advised by the tax advisor of your choice.
Best of luck to all.
Phoenix
http://afterthegoldrush.lefora.com/2010/10/03/phoenix-update-occtober-3rd-2010/
