June 30, 2010
Adam Montana reporting again!
Hey everyone, after a long five weeks or so I’m back in the groove and you can count on me to bring the news again.
Many of us realize that in order to fully take advantage of the investment opportunities in front of us, we need to do more than just buy some Dinars and hope… we need to be proactive in our research, investment vehicles, and in our network building. I’ll be posting more on exactly how I’ll help you with these things in due time, but for now I want you all to realize one thing.
There are tons of Dinar sites out there. There are tons of places to get information. Some of it is good, some of it is no more than one website owner stealing the content of other sites and claiming credit, and in some cases… the people you are getting information from are plain misleading you in order to make a buck in some form or another. I’m not in the latter categories, and in fact – I took the time to actually pass the Series 65 exam which will ultimately enable to legally and professionally give advice on your investments. Your trust in me is not something I take lightly, and I hope what I just did goes a little way to prove that to you. It’s one thing to spout off “knowledge” and “wisdom” and “intel”, but it’s a whole different thing to actually pass a test proving you have the knowledge and wisdom to be a speaker on this podium. The Series 65 exam is one of the hardest tests out there, but it was but one step in a long series of things I need to do to help you better. As many of you know – I’m here for the long haul. I’ve never once mentioned walking away from you, and I never will.
With all that said, I’m happy to give a quick breakdown of the latest Iraqi Dinar news! First, though… Thank you to the great mods over at Dinarvets.com for running such a great site, thank you to the VIP members for your incredible support over the last few weeks, and thank you EVERYONE for your patience and continued support of the Dinar News network.
Now… what the heck is going on out there in DinarLand?!*
*Please note, you can comment on this blog post OR you can go to the forum and engage in discussion of the individual stories. Also, I’m only putting part of the articles here. If one catches your eye, click the “Read More” link to see the full article.
I’ll give my summary first. We know that Iraq is suffering right now – energy crisis, the reduction of cash in the streets, etc. If you think we are anxiously waiting for something to happen – imagine if you were an Iraqi citizen. Yes, it might be “normal” day-to-day life – but how much would it affect your life as an Iraqi citizen to see the Dinar internationally recognized? How would it affect your life if you could put your time and money to as much use as, say, your Dubai or Kuwaiti neighbors? It would be monstrous.
Maliki and Allawi met again, and although we don’t have much official news regarding the results, my sources say Allawi is basically approved and will be seated by the 15th. The question remains about Parliament seats, but my sources are telling me that the individual blocs will be appointing their own representatives, and the chips are going to simply fall in place.
Allawi and Maliki met today: Article
Longtime Allawi and Maliki .. منصب رئاسة الجمهورية يتأرجح بينهما و لقاءهما ينتهي بعد 30 دقيقة The presidency of the Republic of swinging between them and their meeting ends after 30 minutes
Read more: http://dinarvets.com/forums/index.php?/topic/22992-allawi-and-maliki/#ixzz0sLvICgi0
Realistically, Allawi being officially and firmly planted in his seat as Prime Minister by the 15th of July is a great thing! Not having a firm grasp on the eventual makeup of Parliament, however, is a bad thing if you wanted to see a major change by this weekend. My take is that we have a few weeks left before this smoke clears and the dust settles… but a few weeks is a heck of a lot better than a few years!
Iraqi Energy Protests Grow
29 Jun 2010
Officials call for calm and patience as citizens’ fury at outages boils over, Khalid Waleed writes for IWPR
The interim Iraqi government is reeling from riots and demonstrations that have erupted across the country to protest severe electricity shortages.
Anger has been growing for weeks over the continued power cuts and rising fuel prices – resulting from the demand for generators – and the stalled efforts to form a new government.
Read more: http://dinarvets.com/forums/index.php?/topic/22833-iraqi-energy-protests-grow/#ixzz0sLkEiBA2
Here’s an article I wanted to post yesterday – obviously we’re further ahead now, but it’s helpful to track the entire process.
Alawi and Maliki meeting ends with no decision (June 29)
Allawi and Maliki’s meeting ends with “predecessor” and in a shorter time
Author: MK Editor: NK | MF Tuesday, 29 حزيران 2010 16:24 GMT
Alsumaria News / Baghdad
An official at the Information Office in the list of Iraq, on Tuesday that the meeting between Chairman of the list by Iyad Allawi and the president of a coalition of law Nuri al-Maliki ended did not last long, and it was like its predecessor, with stated that the two sides agreed to continue their meetings and the involvement of all components in the formation of the government.
Allawi: To ensure the future of Iraq requires concessions
Posted 29/06/2010 08:00 AM
WASHINGTON (Agencies): the leader of the coalition, “Iraq,” former Iraqi Prime Minister Ayad Allawi said Tuesday that Iraq is now living a new phase requires to make concessions in order to preserve the stability of the country and its future.
So, what does all of this mean? Well, as usual – we’re seeing a lot of indecision in Iraq. The political leaders can’t agree on major points, the news reports are always slightly skewed depending on which source you are reading, and the financial aspect of Iraq remains very much a point of consideration. Can the Iraqi citizens continue in the way they are currently situated? I believe they can, but it is not in their best interest to ignore the state of their currency when compared to the rest of the world. That’s great for us, I say! Will we see an immediate or even near future change in the value of the currency?
I think it’s coming soon. Whether “soon” means next week or next month, I’m not going to say… but I’m patient and I don’t mind waiting, so here I am. 
Here’s anther positive article:
Iraq Announces agreement to form Gov’t
Iraq announces its agreement with Maliki’s coalition to form committees to negotiate on forming a government
Editor: AH | BS Wednesday, 30 حزيران 2010 11:08 GMTAlsumaria News / Baghdad
Announced that the Iraqi List led by former Iraqi Prime Minister Iyad Allawi, a coalition agreement with the state of law on the formation of joint committees will start serious negotiations to form the next government next week.
Well friends, I know that might be a lot to digest and I want to share some more news, but I have to close for now. Make sure you’re signed up for the newsletter, and stay tuned. More to come shortly!
Warm RV regards,
- Adam Montana
June 22, 2010
Quick news updates for Iraq:
U.S. Says Cannot Force Iraqis to Agree Government
June 21, 2010
LONDON (Reuters) – Iraqi politicians must agree among themselves on forming a new government and the United States cannot tell them what to do, the U.S. ambassador to Baghdad said on Monday.
Iraqis hoped the March 7 election would bring stability as the United States prepares to end combat operations in August before a full troop pullout by the end of 2011.
That makes sense, and I would agree 100%! Good news:
Maliki to ask Allawi to form government
Tuesday, June 22nd 2010 9:56 AM
Erbil, June 22 (AKnews) – A member of al-Iraqiya List declared that next Monday the Iraqi President will ask Ayad Allawi, the Head of the List, to form the next Iraqi government.
The Parliament will reconvene next Monday to assign the next Speaker of the Parliament, Maysun Damluji told AKnews on Monday.
The US can’t force Iraq to move forward, but they’re doing it on their own. What else do we need? How about a great sign that they are serious about not only making headway with their goevernment, but also something that will have a major impact on their economy as a whole – their stock market. The Iraqi Stock Exchange is a tool that allows people to invest in the businesses in Iraq, which in turn employs the people of Iraq, which reduces unemployment… you see where this is going? The ISX is a great tool with which to help the economy and stability of Iraq move forward.
ISX and the “International Standing”
ISX made the announcement they were going to be Internationally recognized. Here’s the statement:
“Iraq participated in the meetings of the Executive Directors of the European Union, the Asian stock exchanges such as the delegation of the Iraqi market for securities in it”.
This was announced by the representative of Iraq at the meeting of the Managing Director of the Iraq Stock Exchange, Taha Ahmed Abdul Salam. He said that Iraq’s participation task on the road to effectively attend to such global forums confirms the return of Iraq to the environment internationally.
June 22, 2010
In the news: China Revalues the yuan!
Yesterday morning the US stock markets experienced a dramatic surge when China announced that they would leave the dollar peg in favor of a basket peg and allow the market to determine the price of their currency.
Later in the day, trading simmered back down when everyone realized that China is still holding the reigns pretty tight. Nonetheless, a change in China’s monetary policy is a great thing right now! Let’s discuss it a little.
As anyone who keeps up with world economics knows, the Chinese yuan is a major factor in many things. China has kept the value of the yuan artificially low for a long time, which has done several things. For instance, the lower value of their currency has kept their exports competitive. (Since one dollar buys more yuan, the USD is able to buy more Chinese goods for less money, which makes their products more attractive than similar domestic products.)
China has also worked to combat a speculative run on real estate this year by raising the minimum cash reserve in their banks. (Higher reserves means less money to lend, so the banks need to raise interest rates on the money that they do have to lend. Higher interest rates keeps speculators from gobbling up loans to purchase land and property in speculative ventures.)
China will no longer pegged to the dollar and the rate will be determined by the market. The stronger Yuan means inflation will be kept in check and the Chinese government will not have to raise interest rates, which is great for more than just China. It needs to be noted that China has one of the fastest growing economies in the world, and the strength and consistency of the Yuan will translate into many areas of world economics.
How does this bode for the Iraqi Dinar?
The People’s Bank of China (PBOC) has set the rate for the Chinese Yuan for years, similar to what the CBI does for the Iraqi Dinar. A move away from a dollar peg for the Chinese Yuan and into a basket peg means they are going to allow the markets determine the price of the Yuan. I would speculate that the Chinese Yuan will move higher over the next year, and if you play on any of the forex systems you may want to keep an eye on it.
Of course, it needs to be noted that China has played games with their currency before… although the early rumor yesterday was China would loosen the strings on the rate, the Yuan never actually made it past the 5% margin the PBOC sets. Also, I wouldn’t expect it to gain more than 6% over the next year – but it’s still worth watching! I actually believe the stories that suggest the Yuan is a completely free currency now are a little off base. Although the Yuan will no longer be strictly pegged to the dollar, the PBOC will still keep it in check and this won’t be a free ride up… it will be a slow, controlled climb.
The Iraqi Dinar is not on the forex, of course… but we all would love to see it go that way. A major currency revalue for the Iraqi Dinar would open the door to move the Dinar away from the dollar peg, just like the Chinese Yuan is doing. When that happens, we would expect to see the value of it continue to rise, just as we will expect to see the Chinese Yuan do over the next year or two.
Also of importance for the Dinar is this prime example of what happens when you allow the market to control itself. We already understand that allowing the Dinar to go on the Forex or be reintroduced to the world as a tradable currency will force it to go up, but what else will happen once Iraq has full freedom (i.e. no more Chapter 7 etc)? What will happen when Iraq is allowed to manage their own credit, their own manufacturing, and their own future? Take a look at this graph that shows what happened with China’s GDP (Gross Domestic Product):
See what happened there shortly after their cultural revolution and farms (aka “business”) was privatized? BOOM! The financial minds and power of the people came together to build a stronger China, and look where they are now. The same thing will happen for Iraq – once they are truly free to build and trade and sell and live, the country of Iraq will expand, grow, and thrive – and so will the currency.
Feel free to leave comments.
- Adam Montana
June 16, 2010
Iraqi citizens angry…
BAGHDAD: Iraqi citizens pour out their anger on the government of Nouri al-Maliki, did nothing for four years to serve the citizens and left him facing Iraq Sabiep cocktails and adverse weather conditions. Given the lack of electricity and water in a day temperature reached 50 degrees Celsius.
Kurds ready to move whether you like it or not…
Baghdad (NINA) –The leader within the National Coalition Hasan al-Sinaid assured that “Coalition has many options including forming the government with the Kurds if the Iraqiya Slate did not participate in the upcoming cabinet.”
And the Iraqi VP new pick for prime minister?
June 16, 2010
BAGHDAD, June 16 (UPI) — An announcement to nominate Iraqi Vice President Adel Abdul-Mahdi as the next prime minister will be made soon, a member of the Iraqi National Alliance said.
Last note for the day… if you don’t think we have a stake in this whole Iraqi operation, you’re not looking at the bigger picture!
Sadr movement: US forces put pressure on us
Wednesday, June 16th 2010 1:37 PMKarbala, June 16 (AKnews) “The U.S. forces are putting pressure on Sadr movement to change its attitudes toward the ongoing political process in the country or drag it to a military confrontation,” the head of Ahrar bloc in Karbala said on Wednesday calling the legal committee in the parliament to release the followers of the movement that are detained by the American forces since last Friday.”
“The American forces are exerting pressure on the followers of Sadr movement to change their national attitudes towards the new political process,” Tarek Kikhany said.
June 15, 2010
Your Dinar news update for mid June. I’m personally hopeful that we could still see some movement mid-summer, but as always – we watch and wait.
By QASSIM ABDUL-ZAHRA and LARA JAKES, Associated Press Writers Qassim Abdul-zahra And Lara Jakes, Associated Press Writers – 8 mins ago BAGHDAD – Iraq’s new parliament convened for just under 20 minutes Monday in what was little more than a symbolic inaugural session because of unresolved differences over key government positions — a precarious political limbo three months after inconclusive elections.
Personally, I think a 20 minute meeting is kind of a joke… but perhaps that is a clue to the fact that meetings aren’t necessary, this trail is already mapped out, and we’re just waiting to find out.
We’re hearing so much conflicting news regarding the seating of Parliament and whatnot that it’s impossible to really know what the heck is going on! For example:
National Alliance are going to choose a compromise candidate for prime minister
15/06/2010 – No Link Available
Baghdad: Abdul Wahid Tima «life» -
MP Haider al-Abadi, a leader in the «coalition of the rule of law», led by Prime Minister Nuri al-Maliki, Sunni blocs to join the «National Alliance» New With A source from the «National Coalition» Shiite coalitions that dialogues « the rule of law »and« Iraqi National Coalition »during the last week resulted in an initial perceptions to refer the compromise candidate after the rejection of candidates for the« rule of law »and the demand of« Islamic Supreme Council »to withdraw its candidate.
Holy cow, seriously?! A compromise for Prime Minister, at this point? My friends, this is prime reason number 1 why I always insist that we ALL take this investment slowwwwwwly and read all news with a grain of salt. I am not going sour on it, not in the least – I just want to advise that everyone take a deep breath and enjoy the ride. The crazy, mixed up, back and forth, upside down, dizzying ride…
Moving forward, slowly but surely:
National Alliance delivers a formal letter of parliament to form a government
House of Representatives opened its second session lasted 17 minutes and remained open consensus proved
بغداد – الصباح BAGHDAD – morning
Gave the inaugural meeting of the Council of Representatives on transmission and the new impetus and a strong wheel of negotiations, the political blocs on the path to form a government.
That should just about do it for today – the good news is we have no real bad news. Iraq is still on it’s way forward, and although things may take longer than some of us are ok with… things are happening nonetheless.
Warm RV regards!
- Adam Montana
June 9, 2010
1. Finance Ministry receives $440m from Int’l Monetary Fund
June 9, 2010 – 10:26:03
BAGHDAD / Aswat al-Iraq: Iraqi Finance Ministry has received $440 million as a loan from the International Fund Monetary.
2. Iraq is heading toward a long-term economic stability
08.06.2010
Mohammad Karim
Sent the U.S. Treasury Department recently wrote to the Iraqi Ministry of Finance, reporting that “Iraq has made progress towards laying the foundations for long-term economic stability,” and praised the agreements signed by Iraq early this year with both the IMF and World Bank.
Read more: http://dinarvets.com/forums/index.php?/topic/20977-iraq-is-heading-toward-a-long-term-economic-stability/page__pid__129782__st__0&#entry129782%23ixzz0qIC9YWTy#ixzz0qMpcV9bK
3. Iraq president requests June 14th meeting to form government (FCC)
News Middle East
Iraq parliament ordered to convene
Allawi’s Iraqiya bloc won the most seats, but has failed to form a government[AFP]
Iraq parliament ordered to convene
Allawi’s Iraqiya bloc won the most seats, but has failed to form a government[AFP]
Iraq’s president has asked the newly elected parliament to convene on June 14 for the first time since inconclusive elections failed to produce a new government, a presidency official has said.
Read more: http://dinarvets.com/forums/index.php?/topic/20918-iraq-parliament-ordered-to-convene/#ixzz0qMq6rPul
4. Iraq tussle gathers momentum. DV members vote RonScarpa for PM.
Iraq political tussle gathers momentum
Neither Al Maliki nor Allawi have the majority needed to form a cabinet and an alliance seems the only option to fill the haunting vacuum
…June 7, 2010
Well, this is strange. No reason given, just a cancellation of T-Bills auction.
Announcement Number (C9)
NOTICE: The CBI has decided to cancel the T . Bills No. (9) dd.9.6.2010.
Don’t count any chickens yet, but I AM interested to see where this leads. An explanation would be nice, at least!
On the political front, we’re expecting Allawi to make some headway with forming his Iraqi FCC (Future Corruption Committee. Yes, I just made that up.)… whoops! I mean government. Allawi is going to be forming his government. I’m really not sure why the word “corruption” got mixed up with Iraqi politics, I do apologize for that little mistake. 
June 7, 2010 – 11:29:50
BAGHDAD / Aswat al-Iraq: The Al-Iraqiya Bloc, as election winner, has the right to form the new Iraqi government; President Massoud Barzani of the Iraqi Kurdistan told the Turkish TV station TRT6.
Also of note, IRaq plans to quadruple their oil production by 2017, with some major movement coming within the next few years.
Article published June 07, 2010
Iraq says its oil supply will help stabilize priceKUALA LUMPUR, Malaysia — Iraqi’s oil minister said Monday an expected surge in his country’s oil supply over the next few years will provide a “safety valve” to stabilize volatile oil prices.
Hussain al-Shahristani said Iraq’s oil production capacity is expected to more than quadruple to 12 million barrels a day by 2017 with up to a dozen deals with international oil companies awarded in recent years.
Now, back to the books! I’m making good headway, keep an eye out for good news and leave your comments on the blog!
- Adam Montana
June 5, 2010
Posted early this morning by Carlablum, thanks Carla!
Conscious / crisis between the Iraqi economy, the fiscal deficit and inflation rate of 9 trillion dinars / Investigations
Conscious / Baghdad / Haidar al-BakriIraqi paper on the threshold of collapse since 1980To 2010 in the way of economy, finance and the crisis of inflation- 3,04.00 مع الك trillion deficit rate of real financial sweeping the Iraqi economy, the spectrum because of the lack of coordination between fiscal policy and monetary policy and the great extravagance in the issuance of paper currency and the absence of a clear strategy for most of the productive sectors gives us signals
This one is a couple days old, but still noteworthy to keep up on the current events and political climate in Iraq:
Negotiations hindered between “State of Law” and INA, because of disagreement about next prime minister
Wednesday, June 2nd 2010 9:11 PMBaghdad, June 2 (AKnews) – A member in the Iraqi National Alliance (INA), led by Ammar Al-Hakim has confirmed on Wednesday that the negotiations between his list and the State of Law coalition, led by the outgoing Prime Minister Nuri Al-Maliki, were hindered because of disagreements about the next prime minister.
“The Iraqi National Alliance will not accept the next prime minister to be a dictator. The previous period witnessed mistakes and they should be corrected,” INA Member, Mohammed Mahdi Al Bayati said.
“During the previous period we couldn’t control the government in many issues. Prime Minister Nouri Al-Maliki appointed a number of military leaders and general managers without telling the Parliament,” Al-Bayati added.
That’s it for now, I’ll post more as it comes!
- Adam Montana
June 4, 2010
Hat tip to Sonny, thanks for the email!***
Iraqi central bank governor interviewed on monetary situation
Personal opinion: I think this is an interesting article for various reasons. #1, Shabibi addresses the LOP issue. According to that article from XE, Iraq plans to drop zeros by the end of the year. I keep saying there is no backing for this article, but of course it keeps getting brought up.
Well, there’s Shabibi himself DENYING that they have plans to drop the zeros in any timeline! Moral of the story? XE is good for rates, but when it comes to news… we should be skeptical of the opinionated articles they put out.
Also in that article, Al-Shabibi lets us know that the current monetary policy is always on a 3-6 month timeline, meaning it is revised or reviewed very often.
Next:
State of law adheres to Maliki’s nomination, INC waves of introducing one candidate to prevent votes dispersal
Friday, June 4th 2010 11:10 AMBaghdad, May 4 (Aknews) – “The State of Law did not nominate a compromise candidate to replace al-Maliki to resolve disputes with National Coalition about the Prime Minister post, while the latter hinted about nominating one person to prevent the dispersal of votes,” says a member in State of Law led by the outgoing PM Nuri al-Maliki.
“State of Law does not have any candidate other than Nuri al-Maliki and the claims about a compromise candidate for our list to replace al-Maliki are not true,” Khalid al-Yawar has stated today.
Ok, back to the books for me!
- Adam
*** Clarification: This is an older article, but the facts and statements are still relevant. Shabibi has never rescinded these statements, and the policies are still the same. The article also shares that the CBI is not in 100% control of the rate on the Dinar, the IMF has agreements with the Iraqi Government. Sorry for the confusion!