Here are a couple of things to ponder and why I believe the RV will happen sooner rather than later. This of course is my opinion based on some logical thinking and some facts that have come out in the news recently.
Logical point #1, Welfare Funding runs out in Iraq.
This article states:
• Iraq has run out of money to pay for widows benefits, farm crops and other programs for the poor and the 1 Billion allocated is missing.
• Farmers have not been paid for wheat and other crops they supplied the Government for at least 5 months.
Excerpt from article:
Speaker Osama al-Nujaifi promised that parliament would push the Iraqi government for answers on where the money went. But he said new funding for the nation's social care programs will have to come out of the 2011 budget, which he said would be sent to parliament within days.
He said the Finance Ministry recently alerted parliament of the cash drain. A Finance Ministry official who spoke on condition of anonymity because he was not authorized to brief the media put the 2010 welfare budget total at about $1 billion. He would not say what caused the shortfall.
"We will ask the government about this — if there is any carelessness or delaying these payments," said al-Nujaifi, a Sunni member of the Iraqiya political alliance.
• New funding will have to come out of the 2011 Budget……..HMMMM where the RV rate is?
• The Finance Minister official would not say what caused the shortfall………Of course he would not say…….read between the lines.
• Ask the GOI if there is any carelessness or delaying of these payments?..........Are you serious?
What this tells me is that Iraq was supposed to RV already. This is the reason for the delaying of these payments. The GOI wants to restore the wealth to the Iraqi people? Yeah…..OK……But not too much wealth. Parliament sure found a way to be paid $22,500.00 USD per month as well as a one-time $90,000 stipend and perks like free nights in Baghdad’s finest hotels. This is really pathetic. This tells me that they are waiting for the new rate of the Iraqi Dinar and it seems like they will wait to pay the “others” when the RV takes effect when the 2011 Budget is ratified and approved.
Logical Point #2, CBI Currency Auction 11/22/2010
Thanks to Doc31 for his persistent and meaningful updates every day.
This tells us:
• 30 Straight Zero Cash days.....Unprecedented
• Spot Oil = $83.81 PB.....still hanging in there
• Spot Gold = $1359.70......still outrageously high
Doc explains this very nicely so there is no need for me to be redundant. I will add to this by saying that Iraq is through giving away free money. With all of this said, IMO, the GOI is waiting to pay everyone else outside of their friends and family because they want to keep their pockets lined and you know that saying “he who has the gold, makes the rules.” The GOI has sucked the money dry from the people and will pay them upon the RV rate of the currency which will give them “some” purchasing power. This is my opinion and I appreciate all feedback and open discussion if you agree or disagree with me on this topic. Thanks for listening.
All the best,