Good day Iraqi Dinar Investors! Adam Montana here, with a fairly lengthy update on the situation in Iraq.
Ready? Here we go…
Iraq needs a government! We’re still watching them go back and forth, mostly because of the huge rift between the political and religious sectors. We have to think of the Political and Religious sectors as similar to the Republican and Democratic parties in the US. The Iraqi political environment isn’t developed enough to have distinct political parties, but people will always fight.
Maliki is a political figure. He has a stranglehold on the Government of Iraq right now, and is obviously not going to let go until he is forced to or has a good reason to. This might be the motivation he needs:
Negotiations between Allawi and Maliki making progress.
The state of the law believe that it could win a concession from the Iraqi List For the constitutional right to the electoral list as the biggest winner through negotiation …
… The reasons for not reaching an agreement with Maliki both By the Iraqi or other blocs is the refusal of the other blocs to renew his mandate…
What this tells us is that although we don’t have a clear answer, Maliki and Allawi are engaged in a process that is moving towards a successful formation of the GOI. We don’t care how it happens, the only thing that is important is that it happens!
Also encouraging on the GOI front:
Sadrist MP: Govt will be announced next week
Karbala – An official from the Sadrist Current told AKnews on Friday that the Iraqi National Alliance (INA), the Kurds and al-Iraqiya will form the government next week.
The remarks by the Jawad al-Hasnawi came as Prime Minister Nouri al-Maliki’s State of Law Coalition (SLC) appears to have been sidelined after al-Iraqiya, led by former PM Ayad Allawi, decided to break off talks with the SLC over Maliki’s designation of al-Iraqiya as a “Sunni” bloc.
Read more: http://dinarvets.com/forums/index.php?/topic/28750-new-govt-next-week/#ixzz0xXNwkVZI
Put the last two articles together and you could think that Allawi and Maliki are close enough to ending their “negotiations” that Allawi is confident they will be moving forward next week. We also know that Obama and Maliki are planning major speeches near the end of the month, which will likely be about the withdrawal of US Troops and Iraq’s commitment to remain stable and build on their own resources to protect their citizens. I don’t necessarily think the GOI will be formed next week, but any progress will be good and I think we will have progress.
The biggest problem we have is until Chapter 7 is lifted, Iraq is prohibited from importing, possessing, or securing the necessities of maintaining a strong army. Until they are strong enough to stand on their own, the occupying forces cannot afford to step too far away because Iran wants nothing more than to take a strong position in Iraq. As we all know, that would be one of the worst possible scenarios – Iran has no good intentions, and they never will. While the Iraqi currency is devalued as it currently is, they are going to play games with Kuwait, who refuses to release their interest in Iraq (and release Iraq from chapter 7) until they are repaid the billions they are owed in reparations. Until Kuwait is willing to cooperate with freeing Iraq from Chapter 7… you see where this is going? Iraq is in a catch-22, as is the US and the rest of the world.
All is not hopeless, though! We do have movement on one of the major pieces of this puzzle… in order for this “Catch-22″ to go away, something like this needs to happen:
Iraq ramping up efforts to repay Kuwait
Tuesday, August 24th 2010 11:29 AM
Erbil, Aug. 24 (AKnews) – Iraq has intensified its efforts to resolve the dossier of its debts to neighboring Kuwait in order to end the international restrictions imposed on the country following the invasion of Kuwait two decades ago, said Iraq’s deputy foreign minister.
If you’ve followed my blog for any time, however, you’ll know that Kuwait doesn’t want Iraq to repay them in solid currency. Kuwait could loosen it’s grip, which would make it easier for Iraq to RV, and then collect payment in full. Iraq doesn’t need to completely back up it’s currency – they will have “credit” with the world. Like the credit card companies you are using, Kuwait doesn’t want Iraq to settle it’s debt. They want to make money on interest! While Iraq is under Chapter 7, Kuwait has a stronger hold on Iraq and is better equipped to manipulate the ledger. This ultimately works in Kuwait’s favor, because they will benefit from an RV just like we investors will. Even more powerful than a rise in the value of the currency is a rise in your position of a powerful and economically sound company. That company, in this case, is Iraq.
Ask yourself this: Would you rather have $1,000,000 now… or $1,000,000 worth of stock in Google back in 2004?
It doesn’t take a rocket surgeon to see the potential, which is what Kuwait sees in Iraq. It’s what I see in Iraq, and it’s probably what you see in Iraq too. The good news is that once Iraq pays Kuwait, Kuwait has very little ammo left.
Here’s more encouraging news:
Iraqi Finance denies (removing zeros) from the national currency
24/08/2010
Denied under the Ministry of Finance and Economy Tuesday, Iraqi الاصفار Deletion of Iraqi currency because it would increase the financial corruption, and will not address the problem of inflation in the country.
We all want to know a timeline for maturity on our investment. I hate to say it, because so many people hang on to “important dates” and “RV rumors”… but we simply don’t know.
The truth is we could get a huge announcement tomorrow! Of course, it could also take a while longer yet. The GREAT news is that Iraq isn’t lopping, they are moving forward with their independence, and every day puts us all closer to seeing the success that we know Iraq will be. Be patient, friends! The time is coming.
Patiently, steadfast, and sincerely,
- Adam Montana
