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thanks, k98knights; this is the second confirmation that Iraq is coming out of Chapter VII in February. You will find a link in my long Chapter VII chapter in my book posted here that says the same thing from another Iraqi diplomat. This is very encouraging indeed in that they are getting more bold. You'd almost think they knew something! Steve

New information on the soon release of Iraq from Chapter VII [Fact] This link was produced January 20, 2010: http://www.alsabaah.com/paper.php?source=akbar&mlf=interpage&sid=96809 The relevant quotes have been excised from the article for clarity. INT'L EFFORT TO PASS RESOLUTION TO LIFT RESTRICTIONS ON IRAQ NEXT MONTH - CH VII Pave the way for saving the country from Chapter VII The Ministry of Foreign Affairs to step up moves to lift restrictions in the area of disarmament that impede the country's efforts in the field of scientific research and paving the way for out of Chapter VII through the issuance of a resolution by the UN Security Council next month. He said Foreign Minister Hoshyar Zebari said in an official letter sent to the parliament speaker, got the "morning", a copy of: "The ministry is working with friends to adopt a resolution from the Security Council is to lift all restrictions imposed on Iraq in the field of disarmament based on the decisions of the right under Chapter VII, in particular resolutions 687 and 707 for the year 1991. "Zebari said that" these decisions are decisions which affect the sovereignty of Iraq because they restrict the possession of ballistic missiles have a range beyond 150 kilometers and also restrict uses of Iraq in some areas of scientific research ", stating that" it is hoped to issue such a decision in mid-February next if the House of Representatives passed the Optional Protocol to the Safeguards Agreement with the International Atomic Energy Agency before the Council for a long time. " The foreign minister said that "Ratification of the Protocol will enable the International Atomic Energy Agency to send a note to the Security Council confirming that Iraq comply fully with its safeguards agreement," noting that "such a warrant is necessary to pass this resolution," expressing at the same time looking forward his ministry to "authenticate the House of Representatives of the Optional Protocol by mid-February because of the importance of such a decision as it represents a major step toward completion of national sovereignty." It should be noted that the House has finished on the first reading of the draft law on ratification of Iraq the Model Additional Protocol to comprehensive safeguards regime of the International Atomic Energy Agency. For his part, MP from the Kurdistan Alliance Azad Omar Bamarni hoped that the UN resolution passed by the Security Council next month will allow Iraq purchase of sophisticated weapons and long-range missiles to strike a balance in the region. Bamarni said in a statement the "morning": that "the ratification by Parliament on the Additional Protocol is essential to persuade the International Atomic Energy Agency that there are no illegal activities or seeking to acquire nuclear weapons, This helps to confirm the United Mahdp country's commitment not to break the agreements and commitments adhered to by Iraq, paving the way out of Chapter VII. "He noted that "the issuance of such a resolution from the Security Council will achieve the strategic balance in the region and achieve a deterrent force to Iraq as allowing him to buy long-range missiles and weapons of variety and cancels the previous decision determining the extent of missiles to 150 kilometers, in addition to carrying on scientific research especially in the areas are still off-limits to country, "adding that" this matter will also contribute to achieving stability in the region will not be a cause for escalation, because the purpose of buying such weapons in the future will be for both defensive and not offensive, because Iraq is a believer and is committed to international peace and security." Once again the relevant portions are highlighted in red. In short the effort is to eliminate all disarmament restrictions on Iraq by mid February, next month. Another attempt to get Iraq out from under Chapter VII On January 28 Iraqi representatives appeared before the UNSC and once again pressed for release from Chapter VII. This time Iraq has the backing of the United States as well. Here is a link: http://articlesofinterest-kelley.blogspot.com/ And the most relevant quote follows: “In a letter transmitted to the council president, China, by Iraqi UN Ambassador Hamid Al-Bayati, Zebari said "as you are aware, outstanding issues related to disarmament obligations are among the constraints that continue to prevent Iraq from regaining its status as a responsible and active member of the international community and, at the same time, deprive it of the benefits of technological progress and scientific research.” What we can see from this is that from the Iraqi point of view the release from the restrictions of Chapter VII are an impediment to allowing Iraq to become “an active member of the international community.” It is not entirely clear from one statement but it is possible that this is an indication that the RV of the dinar would not haoppen until Iraq is released. Time will tell whether that possibility is a reality in the mind of the Government of Iraq.

How can we determine just what the real situation is with Iraq and Chapter VII? [Fact] We have the answer to this in the following link: http://translate.google.com/translat...3Dv1P%26sa%3DG A new diplomatic plan to rid Iraq of Chapter VII BAGHDAD – morning January 10, 2010 We hope to begin an official delegation to visit the United States soon, in an effort to activate the demands of Iraq for the internationalization of terrorism file and retribution from those involved in recent criminal operations. This information comes simultaneously with the development of the Ministry of Foreign Affairs a new plan to complete the procedures of money out of Iraq's Chapter VII. A member of the Security and Defense Committee in the House of Representatives Hassan Sinead, the "morning": that the government planned to send an official delegation to the United States to move the file, the internationalization of terrorism and urged officials in the United Nations and the Security Council to expedite the establishment of the International Tribunal for the punishment of the culprits who belong to the Alliance of Saddam's Baath takfiri and in Syria. Sunaid revealed the receipt of government and parliament on the positive signals in this regard a report prepared by UN special envoy Taranco Oscar Fernandez, noting that Iraq is seeking to close this file before the legislative elections to ensure non-interference of regional actors to influence the political process. A Western diplomatic source had earlier revealed in the "morning" for the UN special envoy bombings Wednesday and Sunday Aldamyin to deliver important information to the UN Secretary-General Ban Ki-moon confirmed the existence of a regional intervention in the Iraqi issue. In another file, a source in the Foreign Relations Committee in parliament, said Iraq would take new diplomatic steps to complete the procedures of money out of Chapter VII. The source said the "morning": that the government will follow several steps such as the audit conducted by the UN Security Council during the period coming on the situation in Iraq, noting that the Ministry of Foreign Affairs and developed an integrated plan review of decisions relating to international sanctions on Iraq and ways to exit the country from international sanctions. He said the ministry's plan concerning the liberation of Iraq from the provisions of Chapter VII and decisions on the situation between Iraq and Kuwait and the decisions of disarmament and destruction of weapons of mass destruction , alluding to the existence of other measures will be adopted is to increase diplomatic activity on various countries and to ensure the permanent members vote for Iraq, with the strengthening of the rule of law and security in the country, in addition to the emphasis on non-threatening neighboring countries, as well as seeking to fulfill the international obligations and commitments. In turn, confirmed an official in the Ministry of Foreign Affairs for the "morning" The ministry is continuing its efforts on removing Iraq from Chapter VII and to seek a UN resolution to support the country in its war against terrorism. Now I think we can see the answer to our question. The remaining issues for Iraq and Chapter VII have to do with money and with Kuwait. Not surprisingly, this is the same list of items that Ban Ki-Moon mentioned at the end of the UN meetings on Iraq back in August of 2009. What is the status of the “money issues” with Iraq, Kuwait, and Chapter VII? [Fact] Again we have a link that will provide the answer: http://translate.googleusercontent.com/translate_c?hl=en&sl=ar&u=http://www.alsabaah.com/paper.php%3Fsource%3Dakbar%26mlf%3Dinterpage%26sid%3D96559&prev=/search%3Fq%3Dal%2Bsabah%26hl%3Den%26safe%3Doff%26num%3D100%26newwindow%3D1&rurl=translate.google.com&usg=ALkJrhiCuzwrPTiRLDtescMdcbo8ebGcaw Arab pressure on Kuwait to remove Iraq from Chapter VII (January 17, 2010) Cairo - Isra Khalifa Received by the Secretary-General of the Arab League, Amr Moussa, a report from the deputy and his envoy to Iraq, Ambassador Ahmad Ben Helli on the outcome of his meetings with President Jalal Talabani and government officials and political figures in Iraq. Ambassador Ben Helli told reporters: that the university has called on all Iraqi currents to create the right atmosphere and proper for the upcoming elections away from any comments and tensions affecting the rules of the election campaign, stressing that people should take responsibility for the Iraqi people. Promised Ben Helli said the upcoming legislative elections will bring a new shift in Iraq toward restoring stability, adding that the visit of the Arab League delegation to Baghdad comes in the framework of communication and consultation and in the interest of Iraq. He said he met with the heads of coalition and Iraqi officials and the university was ready to provide any logistical help and technical assistance in the field of elections has also been agreed with the United Nations on cooperation and coordination in the provision of the viability of the elections. And on the personal decision to exclude 500 of the elections to include under the procedures de-Baathification, "said Ben Costume:" My call for Iraq to be the trend is the participation of everyone in the political process and engage in the elections and if there are any files that must be addressed within the framework of constitutional institutions and also addressed in the framework as stipulated in the law and to exclude any matters which may build on the political positions because the goal is to expand the circle of participation. In regard to the possibility of providing assistance to Iraq in the security area after the recent bombings, he said: "The Arab states claim a national duty to help Iraq in all fields, both train the security forces in the area of the judiciary because Iraq needs to stand to the side of the Arab countries and any failure of Arabs mean a breach of national duty and national and Arab. He stressed the invitation of the Arab League to become the support and supporting the Arab presence in Iraq is a priority because it represents a necessary addition to the unity of the Arab position and deal with the challenges facing the region in general. He stressed that Iraq's request to host the Arab summit is still on the table and will be discussed by the Tripoli summit in May. He supported the Ambassador of Iraq's request out of the seventh item [Chapter VII], saying: "Iraq's demand basis must be supported because it is within this chapter hinder its role," explaining "the existence of Arab pressure exerted against Kuwait, which files have not resolved yet with Iraq and I think the Iraqis are serious and work in this framework in coordination with Kuwait, which are directly related to the subject. [Analysis] So we see that the entire Arab community is now placing pressure on Kuwait to resolve its money dispute with Iraq. Amazingly we all thought that this was solved last year, didn’t we? Remember how Ban Ki-Moon recommended that Iraq and Kuwait resolved their issues bilaterally? And remember how the issue disappeared from the media almost immediately thereafter? And remember how we all were led to believe that Obama had stepped in and told Kuwait to stick its tail between its legs? We now see that these “rumors” from the past were not accurate. At least we know this: the problems have not been resolved, yet. What we are learning is that it is very important to keep current and aware of the truth as we move through this process. If we do so we won’t be swayed by the ups and downs that have caused other rumor sites to go crazy week after week. We now know that Iraq has not resolved its issues with Kuwait and that this is the primary, if not the only, thing to be solved before Iraq will be released from Chapter VII. We also know that according to the Iraqi Foreign Minister this process could take as long as another 6 months (from December). What we do NOT know is whether this will affect the timing of the RV. We definitely need to do some research to get the answer to this critical question.

What has happened since the report to Congress in August of 2009? We saw above that there are still several outstanding issues remaining to get Iraq out from under Chapter VII. These conditions are stated mainly in the

“Human Rights Issues. U.N. Security Council Resolution 688, of April 5, 1991, demanded Iraq end the repression of its own people. Iraq now has a different regime than the one addressed by this Resolution, and it is not clear whether this Resolution still applies. The Resolution was not enacted under Chapter VII of the U.N. charter and therefore, even if it still applies and even if Iraq were deemed in violation, it is not clear that any international penalties would necessarily be imposed. “Still, Maliki and his allies assert that Iraq is meeting its international obligations, including on human rights, and that there is no need for specific international scrutiny of Iraq on this issue. State Department reports on international human rights practices, issued each year, note numerous human rights abuses in Iraq but generally attribute these to the general security difficulties and problems enforcing rule of law, rather than deliberate abuses by the government. However, Maliki’s political opponents might argue that the Resolution still applies and these opponents could use any violations to discredit Maliki and his government. “ Our group is now up to date on the specific elements of Chapter VII that Maliki is trying so desperately to be relieved of. I suspect our group is the only one that has all of this specific information.

What are the Specific Outstanding Issues in Chapter VII The following link goes to a report made by Kenneth Katzman, a specialist in ME affairs, before the American Congress on September 17, 2009. I highly recommend that all members of our group read this article. http://www.internationalrelations.house.gov/111/kat091709.pdf I will now quote the

Then on 22 May 2003 the UNSC passed resolution 1483. The relevant quote comes from Paragraph 10: Decides that, with the exception of prohibitions related to the sale or supply to Iraq of arms and related material other than those arms and related material required by the authority to serve the purposes of this and other related resolutions, all prohibitions related to trade with Iraq and the provision of financial or economic resources to Iraq established by resolution 661 and subsequent relevant resolutions, including resolution 778 of 2 October 1992, shall no longer apply. Now we see that there are definitely some portions of the restrictions on Iraq that have already been lifted. The Iraqi government is now free from this restriction and can go out and sign weapons deals with other countries. However, even with this resolution lifted Iraq is still under the UN Chapter VII Article until a new resolution is drafted releasing them from Chapter Seven entirely. UNSC Resolution 1483 (2003) http://www.globalsecurity.org/wmd/library/news/iraq/un/n0336853.pdf Now we learned that Maliki wanted to get out of the Chapter VII and at the same time wanted the Development Fund for Iraq (DFI) protected from liens and lawsuits that are or will be brought against the Iraqi government for actions that the previous regime was responsible for. In July of 2009 the Russian Ambassador Vitaly Churkin, said Iraq can not remain under resolutions in order to protect the DFI funds and also request to be removed from Chapter VII. Maliki was left with no choice in the matter because he needed to protect the DFI funds. He was able to receive a one year extension from the UN, as we have seen; Iraq would remain under Chapter VII and the Resolution 1483 would also remain intact. The Russian Ambassador commented at a press conference: "I think given the requirements of the Iraqis to be protected by Chapter 7 in this fund, you cannot get out of Chapter 7 if you want to have that protection under Chapter 7." "Frankly," he added, "the situation in Iraq is such that the presence of the Security Council in this form (Chapter 7) or another needs to continue to be there for a while." http://www.kuna.net.kw/newsagenciespublicsite/ArticleDetails.aspx?id=1961188&Language=en As we recall Ban Ki-Moon gave a report to the UNSC in regard to Iraq and the lifting of Chapter VII at the UNSC on 27 July 2009. Here is the link: http://www.securitycouncilreport.org/atf/cf/%7B65BFCF9B-6D27-4E9C-8CD3-CF6E4FF96FF9%7D/Iraq%20S%202009%20385.pdf On the next day the Kuwait Observer had an article which it listed some issues that Iraq must take responsibility for in reference to the UN Resolutions against it. http://www.kuwaitobserver.com/news/newsfull.php?newid=254975 Here is the relevant quote: Ban urges UNSC to help Iraq fulfill obligations before coming out from Chapter Seven The Secretary General Ban Ki Moon said about the UNSC that it “continues to bear the primary responsibility for the implementation of the relevant Security Council Resolutions ...it is my hope that the Security Council will consider this report with a view to taking appropriate decisions that would help Iraq fulfill its outstanding obligations in a timely manner.” Iraq was blamed for the delay in the work to maintain the boundary pillars at the internationally recognized border between Iraq and Kuwait. It was also held accountable because of Baghdad's failure to remove several buildings along the border according to the article. At this time Iraq pays 5% of its oil revenue to Kuwait for war reparations. The Iraqi government would like to lower the percentage of its contribution to the Compensation Fund from 5% to 1% percent or even eliminate it all together. Kuwait objects to this and they are adamant that Iraq abide by the Resolutions in regard to War Reparations for Kuwait.

8. Iraq and Chapter VII of the UN Charter The following questions seem to come up now and then and it is important for us all to be on the same page with the correct answers. The first topic is Chapter VII of the UN Charter and how it might affect the RV. We have heard since last summer that Iraq was out from under Chapter VII. Then we heard that they weren

Aaron: Whether or not Ali knows something is coming it makes no sense for him to hoard his cache of dinar. He makes money selling dinar, so to stop and hoard would eliminate his stream of income. It is highly likely that he himself has his own dinar that he has purchases out of the profits from his sales to speculator. I believe he most likely has enough to be quite comfortable when the RV occurs. Also, since he is one of the few authorized traders of IQD in the US, I would suspect that he is under strict orders to continue to sell until the RV occurs as a precondition to his being allowed to sell at all. This is only logical. Steve

Most people are not aware that the Iraqi consitution forbids Batthist to run in the election. Maliki was applying a constitutional mandate when he barred these 500 people. The issue of whether they are Sunni or Shiite is therefore moot. This is a consitutional issue and it will be shown that Maliki was merely applying the law. I wish someone would tell that to Obama! Steve

wigo: the actual letter is available on the net. If necessary I will go get it and post it. In summary it discusses the fact that Iraq has complied on all restrictions regarding WMD and no nukes. The letter does not mention anything about Kuwait's concerns, however. dnmoy64: It is not clear that the RV must precede the release from Ch 7; it could or could not; there are arguments on both sides. I will post a chapter on Ch 7 shortly that will bring all forum members up to date. jwb: The release was a press release from the UN; not a release from Ch 7. Steve

Sure, Quart, we can go through them together if you wish; Just post the link and I will look into it. Take care! Steve

Wow, quart, you are certainly doing your homework! This is great. Let’s deal with you post together. I have read all of the links that you gave me. The second leads to the same document as the first, although obviously on a different web site. So I will only have to deal with the first link. The third link, in your second post, is, as you have said, a glossary of terms in which the term “exchange rate” is found twice. I will get to that at the end of this post. Here is the link again that we are discussing (for others reading): http://www.un.org/News/Press/docs/2009/gaab3917.doc.htm I have selected a number of quotes from this long document in an effort to help us clarify the wording of the UN writer. Specifically two different terms are used: Exchange Rates, and Conversion Rates. If we can clarify the differences between these two terms we should be able to apply what we learned to the two or three statements regarding Iraq found in this article. Finally, I am going to number the paragraphs chosen so that we can discuss them more easily. These numbers are NOT in the original document. Also, while these quotes lead sequentially one to the next they are chosen from throughout the document. 1. He said that the Committee had reaffirmed its earlier recommendations with regard to the income measure and conversion rates used in preparing the scale. On the income measure, it had reaffirmed that the most current, comprehensive and comparable data available for gross national income should be used. The Committee had met with representatives of the World Bank and International Monetary Fund to discuss purchasing power parity rates. It had also reaffirmed its earlier recommendation that conversion rates based on market exchange rates should be used in preparing the next scale, except where that would cause excessive fluctuations and distortions in the gross national income of Member States expressed in United States dollars. In that case, price-adjusted rates or other appropriate conversion rates should be used…. 2. During its latest session, the Committee on Contributions decided to review the scale for the period 2010-2012, reaffirming its previous recommendation that the scale should be based on the most current, comprehensive and comparable gross national income data available. Also reaffirmed was the recommendation that market exchange rates should be used in preparing the scale, except where that caused excessive fluctuations and distortions in a country’s income….3. The Committee agreed that, once chosen, there were advantages in using the same base period for as long as possible, so as to smooth out over the course of consecutive scale periods the impact for every Member State. It also decided to consider further at future sessions the questions of the debt burden adjustment and the low per-capita income adjustment. Also during the session, the Committee decided to adjust market exchange rates for Iraq and to use United Nations operational rates for the Democratic People’s Republic of Korea, Myanmar and the Syrian Arab Republic. 4. In connection with conversion rates, he said that for 11 countries, a country-by-country assessment of possible exchange rate overvaluation or undervaluation had been conducted, including the examination of information about the economic and financial situation. Based on the review, the Committee had decided to adjust the conversion rate of Iraq. Some members considered that the rate of the other 10 countries should also be adjusted. However, in line with the past practice and its recommendation on the scale methodology, the Committee had decided to use market exchange rates for the other Member States.. OK, now we are ready to discuss what we have here. In paragraph 1 we see that both terms are used together. This shows us that they clearly have separate meanings. (“It had also reaffirmed its earlier recommendation that conversion rates based on market exchange rates should be used in preparing the next scale, except where that would cause excessive fluctuations and distortions.”) So we see from this that the market exchange rate exists prior to a conversion rate and that the conversion rate is based on the exchange rate. In paragraph 2 we see more about exchange rates (“Also reaffirmed was the recommendation that market exchange rates should be used in preparing the scale, except where that caused excessive fluctuations and distortions in a country’s income….”) Here we see that “market exchange rates” is synonymous with “exchange rates”. From the glossary that you referred to we know that the term means what we commonly understand it to mean, namely the rate that is shown on the Forex charts for any given country, usually posted in terms of dollars. The statement above says that market exchange rates are the preferred rate to use in determining dues for Member States and that the only exception is where it causes excessive fluctuations in a country’s income. Now in paragraph 3 we see the use of the term market exchange rate applied to Iraq: “Also during the session, the Committee decided to adjust market exchange rates for Iraq and to use United Nations operational rates for the Democratic People’s Republic of Korea, Myanmar and the Syrian Arab Republic. “ Notice that in this statement the Committee is separating out Iraq from 4 other countries. In fact it is saying that Iraq will have its “market exchange rate” adjusted, while the other 4 countries will use the “UN operational rates”. Clearly, whatever the UN operational rates are, they do NOT apply to Iraq. That much is quite clear from this statement. However, in paragraph 4 we see potential confusion appearing: “Based on the review, the Committee had decided to adjust the conversion rate of Iraq. Some members considered that the rate of the other 10 countries should also be adjusted. However, in line with the past practice and its recommendation on the scale methodology, the Committee had decided to use market exchange rates for the other Member States.” Now we are really getting confused, aren’t we. This statement appears to be saying exactly the OPPOSITE of the statement preceding it. Here we see that the Committee has decided to adjust the “conversion rate” of Iraq while leaving 10 other countries to use “market exchange rates”. How can we unravel this? (1) We know from the first paragraph that “conversion rates are based on exchange rates.” (2) We know that the Committee said it was going to adjust Iraq’s exchange rate. (3) Since the conversion rate is based on the exchange rate, the adjusting of the exchange rate would ALSO adjust the conversion rate. Therefore we can conclude that the adjusting of the market exchange rate for Iraq is what causes the conversion rate to be adjusted as well. Furthermore, we can conclude that the methodology used here is to adjust the actual market exchange rate of Iraq and is NOT an internal operating mechanism or a "UN operational rate". It is possible that the last quote about the 11 other Member States is telling us something more about Iraq. If, as stated above, the Committee is going to adjust the market exchange rate of Iraq, then why would they separate it from the other 11 countries, which are also using the market exchange rate. The reason seems obvious to me: the market exchange rate for Iraq is being adjusted BEFORE the application of the existing market exchange rates for the other 11 countriess. In theory then, for the next payment these countries will have been put in "parity". This discussion has shown that the actual market exchange rate for Iraq is going to be adjusted by the UN. The UN is still in control of Iraq and has the authority to see that this is done. It is my opinion, therefore, that it will occur before the UN releases Iraq from Chapter VII restrictions, since after release the UN will not have control of Iraq, or the ability to adjust the market exchange rate. Therefore the RV will occur before Chapter VII is released. Steve

Summary on Iraq and the GCC How can we summarize what we know against the rumors on various sites regarding Iraq

What is the FGCCC, and, Is Iraq a member of the FGCCC?[/b] [Fact] This next link would appear to answer that question directly. http://www.iraqdirectory.com/DisplayNews.aspx?id=8695 Iraq restores its membership in GCC Translated by IRAQdirectory.com - [3/11/2009] The Union of Commerce and Industry Chambers for the Gulf Cooperation Council had agreed on restoring Iraq's membership in the Union. According to Oman News Agency reported that the General Secretariat of the Gulf Cooperation Council agreed to restore Iraq's membership as well as involving of Yemen. This came at the conclusion of the twenty fourth joint meeting among the officials of the General Secretariat of Cooperation Council for the heads and members of GCC, which was held at Bar al Jasa resort in Muscat. The Omani minister of Commerce and Industry, Maqbool Bin Ali Bin Sultan had delivered a speech at the meeting and reviewed the challenges that facing the Gulf private sector in the coming period. [Analysis] Did you notice the subtle change in wording here? The headline clearly indicates that Iraq has “restored its membership in the GCC.” But we know from question 1 that Iraq was not a member of the GCC, so how could it “restore” its membership? The answer lies in the red quote above. We need to see if the Union of Commerce and Industry Chambers for the Gulf Cooperation Council is in fact the GCC. What is the difference between the GCC and the FGCCC? [Fact] Is the Union of Commerce and Industry Chambers for the Gulf Cooperation Council related to the GCC? Here again is the link to the initiating charter of the GCC: http://www.gccsg.org/eng/index.php?action=Sec-Show&ID=1 And here is the relevant quote: Encourage means of cooperation and coordination between the various private sector activities, develop existing cooperation between the member states' Chamber of Commerce and Industry, and encourage the movement within the GCC of workers who are citizens of the member states. [Analysis] So we see that the Chamber of Commerce and Industry is a part of the greater GCC by its own charter. But it is NOT the GCC itself. What is the FGCCC? [Fact] The following link is the founding charter of the FGCCC. The relevant quote follows: http://www.english.globalarabnetwork.com/GCC/the-federation-of-gcc-chambers-fgccc.html The mounting feeling for the need of strengthening fraternity bonds and consolidating steps enhancing economic cooperation among countries sharing common characteristics, objectives, and destiny had led to entertaining the idea of establishing a federation comprising the Chambers of commerce, industry, and agriculture in the Arab Gulf states. Preliminary meetings in October 1976, attended by the federations and chambers of the seven Gulf Arab States, of Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia, United Arab Emirates, and the Republic of Iraq paved the way for establishing the Federation of the Chambers of Commerce, Industry and Agriculture of the Arab Gulf States (FAGCC ). In October 1979, the Federation was officially launched and Dammam – Kingdom of Saudi Arabia, was named as the host city . In 1990, and as a result of the Iraqi regime invasion of Kuwait, the Federation's Council dropped Iraq's membership and renamed the Federation as The Federation of GCC Chambers ( FGCCC ). [Analysis] We see that in fact Iraq was one of the founding members of the FGCCC. Hence the plans to “restore” it to that organization now make sense. Furthermore, we can see that restoring Iraq to the FGCCC does NOT mean that it is becoming a member of the GCC. However a further look at the FGCCC charter makes it clear that the FGCCC is a part of the larger GCC. [Fact] From the charter here is a short statement that shows this fact: In order to carry out its mission and achieve its main objectives, the Federation has been pursuing and participating in the following tasks: 1)establishing economic citizenship rights of GCC subjects ,including those for work, ownership and investment. 2)encouraging the freedom of movement of national products among GCC states, without any administrative or custom barriers. 3)exploring areas and opportunities for establishing joint GCC economic projects. Introducing, promoting and facilitating their creation and treatment as national projects in all GCC countries.[Analysis] So we now see clearly that the membership of Iraq in the FGCCC is a subset of the greater GCC. We also see that Iraq was originally one of the founding members of the FGCCC but was NEVER a member of the GCC, which only has 6 members. Did Iraq restore its membership in the FGCCC as stated that it would? [Fact] Once again we have a link: http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://al-iraqnews.net/new/local/29778.html&rurl=translate.google.com And we have the relevant quote: Iraq return as a member of the Gulf Cooperation Council August 22, 2009 Iraq return as a member of the Gulf Cooperation Council Hamdani said in a statement singled out by the reporter News Agency, Iraqi Information / conscious "During the coming Days there will be a meeting of the Council and there will be active participation of Share of Iraq Effective for Iraq. It also will alter the decision of the Council's decision to switch the name of the cooperation of the Council Chambers of the Gulf Cooperation to the chambers of the Arabian Gulf, pointing out Iraq's return, He pointed out that Iraq's return as an active member of the Council of Cooperation Council GCC and to restore Iraq to the prospects for returning Iraq to the prospects of Investment business with all countries. " Trade with all countries. " So we now know that Iraq has rejoined a trade organization, the FGCCC as an “active member”. Recent Changes at the GCC [Fact] Now on January 20, 2010 we see possible changes coming quickly at the GCC. Here is the link: http://www.business24-7.ae/Articles/2010/1/Pages/03012010/01042010_e3673341d59b4c2a98cde28d2bc69ac2.aspx Here is the relevant quote with the important information in red: GCC monetary authority soon. By Staff Writer on Monday, January 04, 2010 Four Gulf nations will launch their monetary authority to set up a joint central bank at the end of February as part of an historic pact to create the Middle East's first currency union, a senior Gulf official was quoted as saying yesterday. Saudi Arabia, Kuwait, Qatar and Bahrain, members of the six-nation Gulf Co-operation Council (GCC), will officially launch their monetary union on January 23 following its final summit approval last month, said Nassir Al Qaoud, GCC's Deputy Assistant Secretary General for Economic Affairs. "The monetary union will be enforced on January 23, a month after the fourth ratification document was deposited by the members with the GCC Secretariat," Qaoud told the Arabic-language paper Al Riyadh. "As for the Gulf Monetary Authority (GMA), which will pave the way for the creation of the GCC central bank, it will start operating at the end of February," he said.[/color ]Al Riyadh said Qaoud was reacting to newspaper reports that the central banks of the four countries halted lending operations at the beginning of 2010. "Those reports carried wrong information that the central banks would stop lending at the start of 2010… this process requires several procedures, which will be the responsibility of the GMA," Qaoud said. "Any way, most central banks in those countries normally do not lend to the government, which means these reports do not carry any new information," said Qaoud.” [Analysis] What are we to make of this statement that the “monetary union will be enforced January 23”? Doesn’t this run in the face of what we just showed, namely that it could be a decade before the monetary union of the GCC takes place? Yet we see that the GCC has decided to move ahead with only 4 of its country members instead of all 6 of them. The affect, if any, on the revaluation of the Iraqi dinar has yet to be determined. If this monetary union does come to fruition then it is “possible” that the statement about the ECC determining the ERM may require us to reconsider my statements regarding the meaning of the ERM within Iraq alone. I have no problem with this because that is the normal meaning of Exchange Rate Mechanism. It was just that until NOW we didn’t have several countries that MIGHT bring Iraq into their fold. If that happened then the ERM would definitely be required to ensure no radical fluctuations would take place. A more reasoned approach would be to state simply that it seems highly unlikely that Iraq would be invited so quickly into this august organization, in spite of the recommendation of Defense Secretary Robert Gates. Therefore this becomes a “wait and see” issue for me.

7. Iraq and the GCC: Membership or What? [Fact] The topic of discussion is the GCC and how or if Iraq is involved with this organization. What is the GCC and what does it do? Here is the link: http://www.answers.com/topic/gulf-co-operation-council And here is the relevant quote: A body formed 1981 by six countries on the western side of the Persian Gulf (the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait) for their collective security after the overthrow of the Shah of Iran followed by the emergence of the Islamic Republic of Iran, the Soviet invasion of Afghanistan, and the launching of the Iraq-Iran War. The vulnerability of the oil facilities of the Gulf states to air and sea attack was exposed by the war. In the face of these external threats, cooperation was forged amongst the six for purposes of coordinating defence through regional collective security. The main goals of the GCC are: economic integration together with coordinated planning; a cohesive foreign policy towards the non-Arab world, and a framework for the discussion of Arab affairs; coordination of regional collective security; and educational cooperation and sociocultural understanding among member states. There has been success on each of these four fronts but the most successful area has been in the field of economic cooperation. 1999 a target was set for members to establish a customs union by 2005. A Gulf Rapid Deployment Force with units from each member state, was set up in 1984. But with the Iraqi invasion of Kuwait in 1990, it was clear that this Rapid Deployment Force could not delay any large-scale assault until help could be organized for an effective defence.

This is fascinating news, folks! With 20 trillion dinar in circulation and $42 billion (46 trillion dinar!) in reserve we can see that there is NO risk for Iraq in the event of an RV. And, my friends, think about the powerhouse of a currency that the IQD will become when the RV occurs, with reserves of this enormous amount. We are seeing, probably, the first country in the world that has reserves GREATER than its entire outstanding currency. Fractional reserves? Not in Iraq!

TMC you need to talk with SeekYeFirst! Clearly the political angle has delayed this. However, the RV is completed.

Gorkat, I posted the chapter on the World Bank today. The other one will come shortly. Hang in there!

That was very generously state, Quart, and I absolutely agree that reasoned discussion is the only good way to arrive at reasonable conclusions. I have absolutely no problem at all in spirited discussion. In addition, I have no problem when we end the discussion on different sides. For heaven's sake, if everyone is going to agree with me how can I sharpen my own knife? Thanks for the discussion. I await in anticipation for another one. Steve

6. Is the World Bank Really Involved? [Fact] Confirmation of the Role of the World Bank in Iraq! With each passing day we see confirmation of our approach. http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://al-iraqnews.net/new/siaysiah/50834.html&rurl=translate.google.com Here is the relevant quote: MINISTER OF FINANCE RECEIVED WORLD BANK VICE PRESIDENT Received the Minister of Finance Baqir al-Zubaidi, World Bank Vice President Shamshad selection and her entourage, which included World Bank Country Director for the Middle East Hadi Arab And Director of the World Bank in Iraq, John Wehbe In the presence of Advisor Finance Minister Aziz Jaafar. A media source in the ministry for the (News Agency Iraqi media / conscious) that he also discussed economic and financial relations between Iraq and the World Bank and ways to enhance them to achieve advancement of financial and economic institutions of Iraq and benefit from the experience bank's staff to set up specialized courses for staff and access to financial support for the advancement of projects in support of the mission in Iraq. The minister stressed that the return of Iraq to cooperate with international financial institutions have made economic gains in Iraq allowed him to restore cooperation with Iraq and the international integration of financial institutions in the international community and contribute in extinguishing the debt under the terms of the Paris Club and the achievement of important achievements in terms of improving the financial and banking work in Iraq. [Analysis] What this news article says is quite clear: The World Bank is intimately involved in the process of bringing Iraq into the

5. Moving onward with the Facts Since writing the last chapter even more has come to light and I would like to share it with you. I was fortunate to be a part of a great research team and DSS900 found some information that proved to be of seminal importance. Here is what we found: The Role of the World Bank in the RV DSS900 has come across some seriously important information that almost certainly has to do with the reasons behind Iraq

I'd like you all to look at the first line of the post that leads this thread: CBI - The foreign exchange abroad (draft) and seek to erase the zeros from the dinar. Do you see the middle word, in bold? This is a draft only. No decision has been made yet. In an effort to help us all relax on this issue I've decided to post my chapter on the lop here: 13. One last question: What about a lop? [Fact] The following link is from August 24, 2008 and is found in the Gulf Times. It states without question that Iraq plans to “rebase” its currency by removing 3 zeros from the dinar. http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=237500&version=1&template_id=48&parent_id=28 Here is the article: Iraq central bank takes steps to ‘rebase dinar’ BAGHDAD: The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said. “We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview. “The process is progressing and we have taken some steps,” Qasim said. “We will issue a decision in due time.” Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken. Iraqi Finance Minister Bayan Jabor said his ministry had suggested to the central bank to take off three zeroes from the current Iraqi dinar banknotes. “The Central Bank governor (Sinan Al-Shabibi) has informed me that the bank is in the process of taking that decision,” Jabor told the state-run Al-Iraqia Satellite Channel this week. “The Central Bank of Iraq supports what the finance minister was saying,” Qasim said. If the rebase decision is taken, it means a current 25,000 Iraqi dinar banknote will become 25 dinars, for example. When three zeroes are knocked off the Iraqi dinar, a dollar will equal only 1.20 dinars.... “This time we aren’t in hurry, if it takes two years to swap the new currency with the old one, then let it so,” Qasim said. The current banknotes were printed by Britain’s De La Rue, the world’s biggest commercial printer of bank notes. Jabor said in November last year that the central bank would rebase the dinar in early 2008. – Dow Jones Newswires [Analysis] What do we make of this? It would be very disconcerting if Iraq “rebased” its currency in this manner. It would not eliminate the profit potential since the “value” of the IQD would rise to about $1.17 through a lop. In theory we have seen that this is still well below the “real” value of the IQD so we would expect the IQD to rise over the next few years into the $3 or higher level. Therefore we could still see a tripling of our investment over time. Let’s look at the bold red quotes in this article and see if we can learn something that applies to the situation today. The first quote says, “The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.”From this we see that the article is saying “steps” were being taken at that time to do a “lop.” It does not say, however, that the final decision had been made. The next quote is more disconcerting: “We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview. This is a quote from the CBIs senior advisor. He clearly believed at that time that the CBI had “reached a conclusion” to rebase the dinar through a “lop.” However in the next quote we see that he softens his statement somewhat: Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken. Now it is clear that in fact the decision had not taken place, contrary to his first statement. In fact, he was specific that not even a timeframe would be stated when a decision MIGHT be taken. However, based on his statement, should that decision eventually be made he then made it clear that an entirely new currency would be created to replace the current IQD. Finally, he said that IF the decision was made it would take 2 years from that date for the new currency, and the “lop” to take affect. In the next quote we finally know the truth that the decision had in fact NOT been made: “If the rebase decision is taken” is the beginning of his statement. Therefore we now know that at that time the decision to “rebase” the currency had not in fact been made. We now need to ask ourselves whether in fact we can verify that the decision has been made. The answer is that we CANNOT verify that the decision was made. In spite of the lead article on this thread we see that the CBI is still only in a "draft" mode on this issue. Therefore we can conclude that up until today the CBI has not decided to rebase the currency through a “lop.” Would a “lop” be in the best interest of Iraq? Next we have to ask if logically it would be wise for Iraq to “rebase” its currency in this manner. The argument here is that the rebase would take the exaggerated profit away from speculators. That would certainly be the case. But is that even a concern for the government of Iraq? It is almost certainly NOT a concern of the government of Iraq. The total amount of dinars held in speculation of a great profit is small in comparison to the total 20 trillion dinars worldwide. Therefore to assume that Iraq would do anything to squelch our profit potential is ridiculous. Is there another reason why Iraq would consider a “lop”? The article provides the answer: the large denomination notes are cumbersome and need to be replaced. The next question we should ask is this: Is there another way to eliminate the large denomination notes without a “lop”? Of course we have already shown that the answer to this question is a resounding “yes”. We will address that in a moment. It appears, therefore, that the CBI has decided not to rebase the currency through a “lop”, in spite of the article posted on January 27, 2010 which is still a “draft” and not a decision. From the mouth of Quasim himself in 2008 he said that “if and when” a decision is made it would be 2 years later that it would be implemented. Let’s discover why a decision not to lop be a good decision. The United States and several other countries have spent millions if not billions of dollars in order to eliminate terrorism in Iraq and create a democratic state in the ME. They are owed a great debt of gratitude by Iraq, arguably. Were Iraq to “lop” the currency these countries would not benefit in any significant manner. Why is that important? The answer comes directly from former President George W. Bush who stated that Iraq would pay for the war itself. Now how could Iraq pay for the war itself? Could it do so through oil? That makes no sense since the sale of oil to the world is a part of the normal process of running the country. It makes no sense to take a normal process and say that all of a sudden that normal process is “paying for the war.” No, it’s just running the state of Iraq. So we need to look at another way that Iraq could “pay for the war itself”. And the way it could do that is through the RV of the IQD. However a “lop” will not accomplish that objective. Only a change in the value of the dinar with the same currency will accomplish that stated objective of George Bush. The new administration must know of this objective. I suspect that Mr. Bush had hoped that it would occur just before he left office so that he could wipe the slate clean on the war’s expenses. However, that did not happen. Instead, President Obama has inherited this objective. We have seen his efforts on behalf of Iraq, in spite of his promise to wind down the war. We have seen that he has made “11th hour” calls on behalf of internal Iraqi legislation. We may safely conclude that Mr. Obama is not only fully aware of the “objective” to have Iraq “pay for the war itself”, but more than that he is now an avid proponent of that very objective. For these reasons we can safely conclude that the “lop” is no longer on the table. If it were the major defenders of a free Iraq would receive a slap in the face; and Mr. Bush would be seen to have been mistaken about his clear statement that Iraq would “pay for the war itself. Steve

Quart, I’d like to thank you for taking the time to present a well thought out objection. I certainly have no fear of dealing with people such as yourself. If you are right and I am wrong then I will be among the first to admit it. Next, the thesis of my book does not rest on one document as you have come to see by now. This is, in my opinion, an important document if what I believe it says is actually the case. However, it is not essential to the argument. Next, the fact that Maliki states clearly that he intends to “enter the international financial community” and that he tells that to the UN as well, is an indication, to me, that they are “on the same page.” Now I’d like to deal with your objections specifically. With regard to Point #1: It should first be noted that the statement in that quote is as follows: “Based on the review, the Committee had decided to adjust the conversion rate of Iraq.” The phrase “had decided” is in what is called the past perfect tense. The meaning of past perfect tense is that it is a “completed act”. Therefore, taking this on its own words, the decision was completed and made as stated. Had they said “was deciding” which is the imperfect past tense, then your argument would be correct. This also affects your statement that the document is not a “resolution” of the UN. My response to that is that it need not have to be a resolution to the UN to be true. Next, in the same point we see this quote: Some members considered that the rate of the other 10 countries should also be adjusted. *However, in line with the past practice and its recommendation on the scale methodology, the Committee had decided to use market exchange rates for the other Member States." Here we see two things: first, that the end statement is “in line with past practice.” This means that what they have done or will do is consistent with their normal procedures. Second, we see that while it was considered that they would change rates for 11 countries, instead they decided to use “market exchange rates” for the other Member States. What this tells us is that “market exchange rates” are the “norm”, as it were, for determining dues. In the case of Iraq, as I said in my book, the current “market exchange rate” is too low to properly reflect the “ability to pay” of that country. Point 3 appears at first to support your argument. The chair of the committee said that she: "agreed with the Committee that market exchange rates should be replaced by price-adjusted rates of exchange or other appropriate conversion rates in instances where the use of market exchange rates would cause excessive fluctuations and distortions in the income of some Member States." To date I cannot find that this statement refers to Iraq. In fact we see in the case of Iraq exactly the opposite. The exchange rate in Iraq has remained stable for over a year now. Therefore, short of proof linking this point to Iraq I would see it as not applicable. Point 4 clearly is also not applicable to this discussion, as the following quote from that point makes clear: "Purchasing power was based on hypothetical, non-existent currency conversion rates, and so was unsuitable for assessing Member States’ capacity to pay." This statement says directly that the “hypothetical non-existent currency conversion rates” are not suitable, at least with reference to ability to pay. However, the first point above has as its “context” this very issue: namely Iraq’s ability to pay. Therefore it would appear to me that point 4 specifically excludes the hypothetical rate from the discussion. Finally, point 5 above is not applicable to the Iraqi situation because it talks about a reduction of the length of the base period, as well as a yearly recalculation of rates, neither of which has been shown to apply to Iraq. In conclusion I am left with my original viewpoint, that the UN has decided to change the exchange rate of Iraq. Furthermore, they will do it, or see that it is done, before the next dues are scheduled to be paid by Iraq. I welcome further discussion on this matter if you deem it necessary. Steve

Scooter, You put up a great post. It is well thought out and backed with the appropriate documentation. No one can fault a logical and reasoned approach, even if it has some speculation in it. This is the approach that I take as well, as you may know. Once again, very nicely done! Steve