.Mnt Goat News Update for Saturday July 22nd

7/22/2017

July 22, 2017 Mnt Goat News Brief - Revised for Dinar Recaps 
 
Hi Everyone,
 
I bring you much news today.   
 
George has informed me of all the wonderful comments from everyone on the content and design of the newsletter. I am happy everyone likes it. This is my only reward for all my efforts, to know that it is appreciated and is helping everyone.
 
Remember I do not have a web site, a forum or even a conference call. My newsletter it the only means to communicate with everyone. I do not advertise anything, no marketing, no clicky-clicks $$, no donations, no sponsors thus no need for any of this nonsense. I make absolutely nothing for sponsoring my newsletter. It is totally FREE to you. No special fee to get into any backdoor and look at the “juicy” articles. It is all here for absolutely nothing $$$. Get it- it’s all FREE.
 
I know many of these so called intel “gurus” do not like me. They bash me and ridicule me.


They poke fun at my FACTS but they never bring to the table their FACTS to dispute it instead only their opinions and conjecture.
 
You can always count on me to be here for you to give you latest updates on the ongoing Iraqi RV saga and to do it for FREE.
 
On with the news……
 
So essentially ISIS is defeated. There are still small pockets of resistance and some militias around. They are cleaning them out now as I write the newsletter. This will probably take months more. To really stabilize Iraq may even take years. I don’t think this will impact the timing of the next phase of economic reform.
 
So in the past all the news was about fighting ISIS. Now we see a complete turnaround. This is itself tells us that the remaining terrorists are not of our concern. All the news is about the economy and most of it is from the Central Bank of Iraq (CBI). In my past newsletter, I presented four (4) articles from the CBI on the economy and currency. Today I bring yet five (5) more recent articles from the CBI. WOW! Can you believe this is happening? This is amazing. In the past we were lucky to get even one (1) article per month.
 
So what is the CBI doing publishing all this information? Folks this is just not news for the sake of news. It is intentional. The CBI is priming the pump for something in the near future. Who are all these articles intended for?
 
In the order of priority:
·       GOI (to keep the Govt of Iraq informed of its actions)
·       Future Investors (to communicate to the world that Iraq has changed)
·       Citizens (popular crowd) (to inform then of the country’s monetary policies and progress)
·       Foreign speculators (yes – this is us. We are only piggy-backing off these articles. We are the last priority if even one. As you can see we are the last priority as participants in this economy)
 
 Articles are below. As always my comments are in italic RED.
​Articles Begin
 
Governor of the Central Bank of Iraq: expect economic movement in the next stage
 
The governor of the Central Bank, Ali al-Alak, expected on Thursday, the occurrence of economic movement throughout Iraq in the coming days after the liberation of security forces in the city of Mosul from the organization of Daesh.

“Iraq is going to be able to attract foreign investments because of the stability of the security situation and increase the number of investment opportunities,” he said. (He is essentially now telling everyone the Security situation is taken care of and now it is time to invest.)
He added that “foreign investment will not be achieved only by the existence of an efficient banking sector able to absorb this role and interact with him and be a supporter and financier and facilitator of these operations,” explaining that “the central bank now is pushing banks to prepare for advanced roles until the development of its programs and systems so that you can Support investments in the country “.
 
 
Keywords: the next stage will witness economic victories
 
Through the trend towards construction and reconstruction  of 
Baghdad / Hussein Tgb after Iraq has proved to the world enraptured images and values of the human and moral waiting to prove an economic victory over the construction and reconstruction during the next phase, and that the new role requires concerted efforts combined to support reconstruction, which should banks be the cornerstone in this matter and doing very well through their sophisticated technology. (He is talking about automated banking, audit trails, electronic deposit for payroll, pensions, the SMART card, ATMs, etc)

These words were Governor of the Central Bank and the Association of Banks during the ceremony organized by the International Islamic Bank on the occasion of victory over the "Daesh" terrorist and the granting of a certificate of ISO International Bank , which is the financial success of our sector. Page task Central Bank Governor Dr. Ali Keywords said that Iraq has proved the finest images triumphs of the world and move human values before the weapon , and so was the pride in the battle that will retain its history, pointing out that the new role is to address the building and reconstruction and succeed in this page task. We cherish that Iraq has the power and energy that will enable the country to economic advancement, and in the financial sector , we note the progress and innovation, urging young people to be more distinctive and characterize their ability to capture sophisticated information, asking the banking sector to be the first among the country 's institutions in the use of advanced technology, and must speed in the use of technologies. 
 
Testimony ISO Keywords said that the celebration today comes an important step is obtaining the World Bank to the ISO certificate, especially it 's in a detailed important specialized organization of payments, especially the banks , their products did not come into contact only 10 percent of the people and has the potential to reach 90 percent , and here must build trust between the two sides, especially the large market and extensive and require the volume of work and achieve a broad benefit to both ends of the process. He pointed out that there is an imbalance in the work of the Association of Banks makes us feel dysfunctional, pointing out that the central did not intervene in this matter , but can return to the rules of procedure to correct it, noting that represents banks and presented by the Association is useful for the banking sector. 
 
Effective capacities of either Commissioner of the Islamic National Bank Suha Ulkipaia Director: She thanked the security forces maker victories in all its formations that handed the country the banner of victory and hope Iraq that developed a prosperous rival countries of the world, pointing to the importance to be for banks effective capacities for economic victory. She stressed the importance of adopting advanced systems in harmony and international practice and with the Iraqi Central Bank instructions, noting that the bank often make efforts in order to deliver the electronic payment card to the farthest point in Iraq , and now we have 20 centers, pointing out that the 27001 ISO obtained the Bank is a success along with the Iraqi victory, indicating that the ambition is moving towards getting the ISO 20000 , where human resources are given great attention to the development of the joints of
 
the work. Capital in turn , head of the Iraqi private banks association Wadih Handal said that the victory over Allaghab came to stimulate the motivation for economic victories greater, pointing out that the evaluation of institutions globally seen human capital and we look at this Association it is of great importance. He stressed the importance of cooperation in the implementation of monetary policies and restore confidence in the banking sector and bring deposits , and most importantly the participation of banks in the reconstruction of the liberated areas, praising the initiative of the Central Bank to allocate 6 trillion dinars for development projects, as well as the great role in supporting the government during the war on the "Daesh" terrorist. He stressed that under the supervision of the Central Bank will be honored the families of martyrs in the World Day of Peace in appreciation for their sacrifices for Iraq  and said that the experience of interest the ideal employee , who did not exceed 35 years is an important thing to develop work and encourage new blood and urge them to creativity and work to the fullest.
Keywords highlights the obstacles facing monetary stability
 
(So this article is all about feedback from key people from Iraq who attended an economic seminar in Morocco this week. Who do we know attended and thus gave their feedback? The players included the governor of the central bank of Iraq, former Minister of Planning Mahdi Al – Hafiz, financial advisor to the Prime Minister Mohammed Saleh. We also know they had a similar meeting in Amman, Jordan a month ago. Is this a regular monthly meeting now? Show we be paying attention the notes from these meetings?)
 
Morocco Today) -20/07/2017
 
Said the governor of the Central Bank of Iraq, on the Keywords, the financial and monetary stability in Iraq is facing phenomena represented in the non - oil deficit resulting from the difference between revenues and local expenditures, and the 78 - trillion dinars' about $ 70 billion ', pointing out that' the second phenomenon is the growing deficit in the budget , which reached 21.6 trillion dinars, and added to the deficit in the balance of payments of non - oil exports of 37.7 billion dollars ', declaring that those negative indicators clearly reflect a significant imbalance structural'. 
 
He considered Keywords in a seminar organized by the 'Institute for the progress of development policies', in the presence of experts in economics and money, to' improve the reality of monetary and fiscal policy requires:

1.  the strengthening of local revenue and
2.  activating the redistribution of income to move the economy policy, through the benefit of the money supply in the markets of salaries, which a large part of which goes to cover foreign imports'. 

Keywords stressed the need to 'pressure operating expenses according to strict scientific controls and standards, and reduce the demand for foreign currency factors and to provide elements of stability to reduce the migration of funds, as well as providing an attractive environment for investment.'
 
(When Mohammed Saleh talks, I listen! ….lol….lol…)
 
For his part, the financial advisor to the Prime Minister, the appearance of Mohammed Saleh, that the Central Bank of Iraq was independent from the government in the first period, but when the economy faced a deficit started this independence weakens pointed ', saying:' began the central bank lends the government turned its independence to the second division '. 
​
Saleh stressed that " the central bank policy was a major reason for the victory of Iraq in its war against terrorism, through the hidden national role played in supporting the government, crossing danger ', and saw that the central bank' was faced with two choices,
 
1.   to give up its independence and lends the government under the circumstance complex or
2.   reduce the value of the Iraqi dinar ', adding' and here may provide some money to the government, but we will be in front of a big rise in inflation rates, and will not have the money any value available, so the bank sacrificed the center of internal independence and lent the government to confront the stability of the crisis.
 
Saleh pointed out that the value of the loan to the government of 21 trillion dinars in two years, to meet the needs, believing that this is a part of the victory in the war against terrorism through the funding of the budget, check the military victory , which was behind the victory of a financial and economic '. 

Saleh pointed out that ' the investment file in Iraq , the results were not in the level of funds spent, amounting to $ 360 billion over 10 years, through the inclusion of a large number of projects in order to get up the country', stressing that ' the result was disappointing and this was in the oil abundance of time, while in the top ten oil time orientation it was about an increase in oil product quantities and source to compensate for the difference in prices by investing in the oil sector, which is unbalanced and leaving the leadership of the oil sector ', declaring that it' means a return to point zero means that the oil is a horse that leads the development cart '. 

(I believe what Saleh is saying is that even in times of abundance with very high energy prices and surpluses Iraq still did not wisely use the $$ it had. The wealth was squandered.)
With regard to debt, Saleh warned that this file is one of the 'dangerous files', revealing that the IMF is working to determine the level of carrying Iraq 's public debt, and did not lose sight of that Iraq is facing a problem at the customs border and ports that are experiencing great corruption, so moving the government to outsourcing outlets to specialized companies'. 
 
(I believe Saleh is telling us that the increasing national debt from loans to Iraq is dangerous. He does not want Iraq to lose site of other potentials for revenues including customs and tariffs, which in large have not been successful.)
The former Minister of Planning Mahdi Al - Hafiz, began the seminar by talking about the difficulties facing the Iraqi economy, pointing out that the 'anomalous situation of fiscal policy raised the importance of thinking about new sources to strengthen the financial situation, particularly through cooperation with the Bank and the International Monetary Fund, in order to increase funding external conditions appropriate ', pointing to the ' start of the so - called credit phase that provide parts of the external financing of these organizations and other sources. " 

Hafiz highlighted that the Government 'initiated the agreement with the International Monetary Fund and the end of 2015 to this goal, through the issuance of the so - called Letter of Intent and «memorandum of economic and financial policies', following the credit phase' includes a range of basic tasks, including revision of the fiscal policy General and the issuance of a new law so, the restructuring of the banking sector and confirm the audit of the financial statements of the banks' Mesopotamia 'and'arashid' and'alaraca trade ', which accounts for about 90 percent of the deposits of the state'. 

He stressed Hafiz, that the credit stage 'confirms subjecting monetary policy to control, especially in areas related to money - laundering and window selling the dollar, and to address the budget deficit and seek to make it economically acceptable', considering that such measures will help to obtain loans and make positive cooperation with institutions international. 

According to Hafiz as witnessed in the recent period B'trah the issue of the supplementary budget for this year, the details were discussed during the last meeting in Amman a month ago, and agreed to provide a loan of 800 million dollars for Iraq, on favorable terms within the standby credit program signed between the parties', did not rule out that 'approved by the international Monetary Fund early August.
Iraq reaches the rate of production of electricity is the first in its history
 
(Remember with all this new electronic banking technology and otherwise Iraq must have an ample, reliable supply of electricity. Quite frankly, the way things were going under Maliki I did not think they would EVER have 24/7 electricity potential throughout Iraq. But they overcame this obstacle too.)
 
The Ministry of Electricity announced that its production of electric power exceeded the limit for the first time achieved in the history of Iraq on this side.

The Ministry of Electricity said in a brief statement that “the production of the Ministry of Electricity exceeded 15 thousand MW is the first time in the history of Iraq.”

Iraq has suffered for decades a crisis in the scarcity of production and processing of electricity and exacerbated the crisis after 2003 and increase the hours of cutting the current, despite the billions of dollars because of corruption and the failure of projects and high costs in generating power. For about a year, the Ministry of Electricity has been privatizing and investing energy for citizens in an effort to “reduce consumption and prevent overflow” on the carrier lines.
 
 
Central Bank of Iraq Auctions $168,839,846 on 19 July 2017
 
(If I hear one more time that the Central Bank is auctioning off Iraqi dinar I will simply SCREAM! I swear some people are just so ignorant of this investment. But think they are experts. 
 
I will say this one more time. READ MY LIPS- The currency auctions are for the merchants to exchange IQD dinar for US dollars. They take their profits in dinar from the market place, travel to the currency window at certain banks and exchange their dinar currency for US dollar currency. They can do this now electronically or get actual paper since the banks can now move currency almost anywhere globally. This cuts down in fraud and money laundering and leaves an audit trail. This is why we read all about these banking moves months ago.   
 
Why do merchants have to go to the currency auctions to pay for imports? So they can go and pay their debts to the importers. Imports of what? Importers of labor (labor salaries), Goods (hard goods, TVs, cell phones, refrigerators, cars, meats and produce, etc..), Services (installation of ATMs, card readers, electricity, cell phone, etc..) They are forced to do this since there are still financial sanctions imposed on Iraq and it is illegal to move large sums of the dinar across the border. Also international companies do not want the dinar since it is nearly worthless and troublesome to use these very large denominations. If they did get the dinar in payment what could they use it for anyhow? What the hell would they do with it? Who else wants it besides Iraq? THERE MUST BE A DEMAND FOR YOUR CURRENCY to make it valuable…get it? Do you see the picture here? It is not just about flicking some “switch” or “trigger” and thus RV. They everything is fine. It will not work this way. Iraq must first make a demand for its currency and thus this will raise the value.
 
How do they do this?
They have told us already. They plan to raise the economy and produce other sources of revenue. They plan to build 10 manufacturing industrial centers throughout Iraq, they have a huge potential for agriculture exports, The customs and tariffs alone could out pace the revenue from the oil sales. So there is tremendous potential, only  not yet realized.
 
Doesn’t the value of the dinar come from the oil reserves in the ground?
NO! I will only say this one more time – NO! Oil revenues alone is not enough to get the economy of Iraq growing. They need DIVERSIFACTION. Can’t you see what the drop in oil prices is doing to Iraq? Their reliance on oil as their sole source of wealth is literally killing their economy. They must get off of oil! )
 
Baghdad (IraqiNews.com) The Central Bank of Iraq (CBI) currency auction on July 19 registered $168,839,846 in sales, a 12.68% volume increase (1) from the US $149,846,197 sold by Iraqi Dinar, credit and transfer at the previous auction held on July 18.
 
(I quote – “from the US $149,846,197 sold by Iraqi Dinar” this means US dollars sold using the Iraq dinar to purchase. This is telling us they are exchanging dinars (IQD) for US dollars (USD). This does not put a demand for the dinar but a demand for the USD. Get it! But this is not and should not be the point in noting the currency auctions anyhow. These auctions should be watched mostly for the inflation rate. The more US dollars sold the higher inflation compared to other auctions. One auction alone does not tell the entire story. The rate of inflation is important because Iraq must control inflation as a requirement for the RV. It is an indicator, as I showed you in my 7/20 (LINK) newsletter, for any RV to happen)
 
The latest auction was attended by 38 banks and 10 remittance companies. 8 more institutions attended the auction held on July 19 compared to the previous auction. (yes – to see any results you must compare to previous auctions. A rise in auctions means higher cost of goods. What does this mean? In macro economics if the price of goods increase the cost to the consumer increases. It the price tags on goods increase this is called inflation. So the currency auctions are a good indicator of the inflation rate for Iraq)
 
Data for the July 19 auction was made public by CBI Announcement Number 3486. Dollar sales in the in the period January 1, 2017 to July 19, 2017 saw an increase of 0.13% compared to the sales of US $13.9 billion in the same period in 2016. The total amount of US currency sold by CBI in the calendar year 2016 was US $14.55 billion.
 
An analysis of the (2) monthly dollar sales by CBI since January 2016 reveals highly fluctuating volumes. During the period from January 2016 to July 2017, (3) sales of US dollars averaged US $1.76 billion per month. Peak volumes were reached in May this year when sales touched US $2.3 billion. (LOOK!!! It right here three time in this article clearly in black and white. How many times did they tell us in the one article alone that the CBI is selling dollar not the dinar? Can it be any clearer to everyone.)
Central Bank: We have worked with the government to give confidence in the private banking sector
 
Economy News Baghdad:
 
The Governor of the Central Bank on the Keywords, Wednesday 7/19, the central bank has sought actively with the government to give the role of the private banking sector through confidence in it.
 
Keywords said in a speech at a ceremony organized by the International Islamic Bank on the occasion of receiving a certificate of quality in information security, which was attended by "Economy News", "The banking sector must apply to all formations and state institutions in the use of information technology, (now the banks can do this since they have electricity now 24/4. Get it? ) because it needs to provide accurate services and fast and reliable data, regulation and control accuracy, "pointing out that" the banking sector must be confident of his steps and his methods, and is subject to the screening process in each period of time in accordance with international standards to raise its position globally. this is achieved through certificates awarded for quality management and give full confidence back ". 
 
"It ended the strong theory eats weak because the currency flow was very slow and the new technology needs fast and reliable flow. The power is fast and the use of modern technology," noting that "the achievements of the World Bank today is a desirable trend in the banking house in order, especially when things are related to the process of organizing payments and creating a network of communication with citizens through the use of different types of cards. " 
 
(This is the use of the SMART card technology via MASTERCARD. Nothing new here…right? We have been reading about this implementation for years now. Finally they can do this with reliable 24/7 electricity. Can you see how important power is going to be for Iraq? So now they can complete the rollout to all the regions. This is very good news. This is part of the project to delete the zeros. If you are not paying in hard paper currency you are not distributing large sums of the 3 zeros notes back into circulation billions and billions each pay period, thus the CBI can reduce the volume of currency. This they told us was one of the goals of this project to reduce the money supply by 2/3. WOW! This part has been held up due to lack of reliable power. Could this be also why the CBI postponed the RV? )
 
 He stressed that "the central bank has sought actively with the government to give the role of the private banking sector through our determination to give confidence to him."
 
(This last point in the article is very important. We know the banking sector has an issue attracting deposits thus getting the average citizen to trust in the banks. Can you blame them based on the past history of the banks in Iraq? This too is why the CBI must stay independent and why its role must include regulating the banking industry. So we have seen many schemes by the CBI for deposit incentives – high deposit, interest rates, govt insured deposits, and now electronic deposits. This last incentive will actually FORCE them to use the banking system. Once the SMART card rollout is complete they will include more and more regions into the electronic deposit system. We already know they have been rolling out this to many regions already and did a beta test then went to full implementation. However they could not fully implement without reliable power. Also the ATM machines did no good without power to run them or the people must first deposit their money in the bank and establish an account. So all this gets the economy moving. Getting the money flow. What is the money flow?
 
It has to start somewhere so let’s start the flow cycle with the govt salaries.
So the citizen is electronically paid. The money goes in to a pre-established bank account. They then buy goods and services using their SMART card via MASTERCARD (and I heard VISA too is onboard). Some stays in accounts as savings and investments. The merchants or providers then deposit their receipts and profits from the sales in the bank, some goes to pay for supplier, some stays in account for business. The banks then obtain a high degree of liquidity because they now have all the money they can loan out in business and consumer loans. The economy is funding the economy. Now if the govt get more and more people off the govt payrolls this trend increases and more of the economy is funded by the economy and not the govt. It is like a snowball rolling down a hill. It will get larger and larger as it goes.

But first how do they provide the catalyst for all of this? Many say it is the RV that will do it. Really? So what comes first the chicken or the egg?   
 
So at some point, if and when the CBI can get this snowball of an economy rolling, they will pull the trigger on the RV. It will begin first by issuing the next phase of the project to delete the zeros. This will include issuing some of the newer notes of the higher values. As this snowball gets bigger and bigger the dinar rate will increase and they even smaller new notes will be issued.
 
But first the plan is to get the electronic banking fully implemented. FORCE any govt run program to be paid electronically and FORCE them to use the SMART card. You see the money is not placed on the card nor is there any rate on the cards. They money is placed in a pre-established bank account and electronically deposited there. The rate is whatever the CBI says it is. Rate of what? The currency? But remember a dinar is a dinar in the country of Iraq and so the conversion to any other currency rate is not going to happen every time they make a purchase. Who cares what the foreign exchange rate is anyway? Do you follow the exchange rate of your currency’s currency on a daily basis? Why would you? Iraq is no different.
 
The recipient then uses the MASTRCARD as a debit card in the shops or can take out minimal cash from the ATMS if they need it. They can then go to the bank for a loan for a new condo, house or car. Soon they will have unsecured credit accounts and use credit cards and slowly payoff goods and services, if desired. It is all coming to Iraq.
 
I believe this is what we need to see. The cycle of money working. This is a symptom of a healthy economy. This we wait for and watch for. This is RV time folks. No secret sources, No waiting for madam woo of China to fund  the RV, No waiting for the “new Republic” or any other nonsense as all this you have been told.
 
However having said all this we know the 2018 elections are coming and we know that Iran too seeks to reinstate their currency post sanction relief. US Congress is now under review for this vote. Iran has already partnered up with Iraq in many aspects of their economies and trade. Why would both of their currencies not have to be normalized first? Wouldn’t this be a good idea? We also know Kuwait seeks the last of the approx 41 billion still owned to them for war reparations. Iraq is not set to make the final quarterly payment on this debt until mid 2018. Will Iraq remain under Chapter VII sanctions until this is resolved? Without Iraqi sanction relief they too can’t move to international status for their currency. We know they have done just about all their homework towards this effort except the actual move to the global exchanges.
 
Common sense says that these events might cause a delay in one or the other, if not managed correctly.
 
So NO the Iraqi dinar has not yet RV’d. The process of the RV has not yet started. How many times have we heard already from the same people the RV process has began?  
 
More news from the past articles……. (note the dates on these articles)
​“Central Iraq” supports the currency delete the “zeros” dinar
 
January 2, 2017     
 i 
Posted by: special in Breaking News , Latest News , Arab economy , banks and insurance  
 
Revealed on the Keywords Governor of the Central Bank of Iraq to delete the zeros of the Iraqi currency, he began to develop the first steps of the support of the Iraqi dinar project.
Keywords and said in a statement, said that the aim of the deletion of three zeros is to support the Iraqi dinar, and make it a competitor to foreign currencies, pointing out that this strategic project will serve the country ‘s economy, as the dinar will be included in the global basket of currencies in the vital exchanges. (Many still dispute my claim that when the dinar comes out of Chapter VII sanctions they plan to peg it to an SDR basket of currencies. Well here it is again in black and white for you to see. Am I lying to you? Their words not mine. No Hype, No Rumors…. Just the FACTS!)
 
He added that the bank is working on mechanisms for the implementation of the project, it is expected to start at the beginning of 2017. (He said the process is expected to START at the beginning of 2017. He does not say they will complete it by then. So it is underway already. ISIS is defeated and it is July already. Could we be in a better position? Did you read my list of RV “indicators” in my 7/19 newsletter? Can you see the situation in Iraq is the best it’s been EVER. Not just since the first or second gulf wars but EVER. Get it? I said EVER! )
 
He pointed out that the introduction of the new currency does not mean the destruction of ancient coins, but will continue to trade for about 10 years.
 
 
Iraqi dinar to have 3 zeros canceled by the Central Bank of Iraq according to Finance Commissioner
 
By Amir Abdallah
Apr 13, 2013  
The Iraqi dinar will have 3 zeros canceled by the Central Bank of Iraq according to Finance Commissioner, MP Abdul Hussein al-Yassiri.

MP al-Yassiri told Iraqi News that “it is supposed that this year will witness necessary preparations to cancel three zeros from the currency”.

He added that his commission supports such move for its importance to the Iraqi economy.
The Central Bank of Iraq, earlier, announced that cancelling the zeros is within a plan to develop monetary policies in the country.

One of the difficulties facing is Iraq is withdrawing 30 trillion Iraqi dinars from Iraq’s market at the present time and to replacing it with new currency.
​
Earlier, the ministry of finance ruled out the idea of cancelling the zeros in 2013 because the federal budget was based on the current currency.
 
Articles End
 
Their words not mine…..No Rumors, No Hype, Just the FACTS!
 
Auf Wiedersehen
Much love to ya all,
Mnt Goat