Parts 1 & 2 BondLady & Shredd Chat - Post From BondLadys Corner - 03/23/2013

[ronscarpa]

Part 1 BondLady & Shredd Chat - Post From BL's Corner - 03/23/2013
 

BondLady] Good afternoon Bondlady's corner !! Ms timmy Shredd and I have been working hard in our research for our members and we want to keep every one up to date and informed as much as possible in this investment. 

We are not about rumors or intel we deal only in fact and it doesn't get much better than the facts were about to bring to our members by our most awesome team so without further ado here we go...please know this is long and will require reading and thinking

[bondLady] lets begin:

[bondLady] IMF Mission Concludes Article IV Discussions with Iraq Press Release No. 13/87 March 21, 2013 An International Monetary Fund (IMF) mission, led by Mr. Carlo Sdralevich, met with an official Iraqi delegation headed by the Acting Minister of Finance, Dr. Ali Al Shukri, in Amman, Jordan, during March 2-12, 2013 to conduct the Article IV Consultation discussion. 

The IMF mission met with the Acting Minister of Finance, the Acting Governor of the Central Bank of Iraq (CBI), head of the Board of Supreme Audit, AbdulBasit Al Turki Said, and other Iraqi officials from the ministries of finance, planning, and oil, and representatives from the Central Bank and the Board of Supreme Audit. 

The team also met with representatives from the Iraqi banking and business community. At the conclusion of the mission, Mr. Sdralevich made the following statement: “Following the recent expiration of the Stand-By Arrangement with Iraq approved in 2010, the IMF is committed to continue close collaboration with Iraq to support its development and help the government improve the social conditions and employment opportunities of Iraqi citizens. 
 
“Despite a difficult security and political environment, Iraq managed to maintain macroeconomic stability over the past two years. On the back of rising oil production and robust non-oil activity, economic growth has remained strong at about 8 percent in 2012. 

We expect activity to accelerate further to 9 percent in 2013, as oil production increases from just under 3 million barrels per day (mbpd) in 2012 to 3.3 mbpd in 2013. In 2012, inflation was contained at 6 percent, and we project it to decline slightly next year. On account of strong oil proceeds, CBI reserves reached US$70 billion at the end of 2012, while the Development Fund for Iraq (DFI) rose to US$18 billion.

http://www.imf.org/external/np/sec/pr/2013/pr1387.htm

[bondLady] this document comes straight from the IMF and its discussing article 4 of the IMF. This round table discussion is open now anytime your ready timmy and shredd and thank you both for helping me and our members

[bondLady] nice line up for this meeting huh

[shredd] first of all, it was nice to see from the IMF that "Following the recent expiration of the Stand-By Arrangement ..."

[bondLady] right

[tlm724] confirms the conclusion

[shredd] so I know some have questioned that so let's put that to bed

[bondLady] we felt like it had expired but there wasn't anything in print before now

[shredd] a very encouraging summary by the IMF followes: Iraq managed to maintain macroeconomic stability over the past two years and "rising non-oil activity"

[bondLady] We expect activity to accelerate further to 9 percent in 2013, as oil production increases from just under 3 million barrels per day (mbpd) in 2012 to 3.3 mbpd in 2013.

[shredd] right again, perfect confirmation of Iraq's strength.....from the IMF!

[tlm724] thats the big dogs

[bondLady] and inflation has been kept in check also due to the monetary policy, inflation was contained at 6 percent, and we project it to decline slightly next year. I also wanted to conclude this last part of the paragraph above" CBI reserves reached US$70 billion at the end of 2012, while the Development Fund for Iraq (DFI) rose to US$18 billion". so the CBI has 70 billion in reserves and 18 billion in the dfi fund 88 billion, huge reserves for sure

[shredd] yes, that's not a LOP country with those kind of reserves

[bondLady] right

[bondLady] While we welcome the achievement of a budget surplus of about 4 percent of GDP in 2012, largely due higher-than expected oil revenues, the execution of the 2013 budget should be aligned with available financing and provide for the accumulation of adequate fiscal buffers in the DFI, which suggests to target a budget surplus in 2013.

 Public financial management should be strengthened, notably by phasing out off-budgetary spending practices and reliance on state-owned bank financing to support public enterprises. Approval of additional spending commitments during the fiscal year should also be avoided. 

“Financial sector policies are improving, but more remains to be done. The CBI’s ongoing efforts to refine monetary policy instruments, strengthen banking supervision, and accelerate the restructuring of the banking system are crucial. In this respect, the recent steps to clean up the balance sheets of Rasheed and Rafidain in preparation for their restructuring and recapitalization are key. 

The CBI should also take measures to gradually liberalize the provision of foreign exchange through its auctions, with the objective of avoiding in future the turbulence experienced by the market in the past year. “Iraq will need to address serious medium-term challenges in order to be able to create the conditions for high and sustainable growth that is necessary to improve the living standards of its people. 

The economy continues to suffer from severe structural weaknesses such as a small nonoil sector, high unemployment, public sector dominance, and a weak business environment. In this context, we discussed the role of economic policies in leveraging Iraq’s potential and creating an enabling environment.

[shredd] next we see goals: phasing out off-budgetary spending practices and reliance on state-owned bank financing to support public enterprises "reliance on state-owned bank financing" so, just like I've been saying,,,,moving to the public enterprise for financing a recognized goal from the IMF and nice confirmation of what we have been watching for and another goal here: The CBI’s ongoing efforts to refine monetary policy instruments, strengthen banking supervision, and accelerate the restructuring of the banking system are crucial

[tlm724] the thing I find most encouraging in this statement is this : IMF Mission Concludes Article IV Discussions with Iraq " clearly stating imo that the discussions are over and the mission is ending and when we look at Article 4 of the IMF we will see the significance of this .

[bondLady] ***The CBI should also take measures to gradually liberalize the provision of foreign exchange through its auctions, with the objective of avoiding in future the turbulence experienced by the market in the past year. *** the run on the usd in iraq,

they dont want all this crazy up and down , they want the iraq dinar to stableize and**********to create the conditions for high and sustainable growth that is necessary to improve the living standards of its people.****** 

they do need to make the peoples lives better by giving them a currency to be proud of, as much as they love the usd, its only because of the purchasing power, they would love to use there own currency to buy things with, and the imf is telling them, they do need to do something per this IMO

[shredd] yes, that is the biggie in this portion!! taking measures to gradually liberalize the provision of foreign exchange via auctions

[bondLady] also ******The economy continues to suffer from severe structural weaknesses ***** pass that infrastructure law and other countries will flock in and help them rebuild much of this as well

[shredd] yes and I' know we've talked about it recently in another chat,

[bondLady] yes we have shredd. The economy continues to suffer from severe structural weaknesses

[shredd] but the demand and gap between the dollar and dinar can't swing too far between pricing and official rate.....before it pushes a rate change the "gradually liberalize" is very interesting here

[bondLady] slow grow ? or is that whats been done

[shredd] seems to imply, perhaps

[bondLady] like set it to 1000 then float?

[shredd] the context says.... the CBI should take measures to gradually liberalize, yes, i believe so

[bondLady] should

[shredd] a continued managing via pipping it up

[bondLady] yes

[shredd] i mean, the last word we have from the CBI themselves is what? 1000 to 1 right?

[bondLady] yes, a managed float

[shredd] so, horse's mouth

[bondLady] and that seems most right to me

[shredd] but hold on folks, because when we get into Ariticle IV, you will see what we are saying!!!! One last comment on this paragraph. In this context, we discussed the role of economic policies in leveraging Iraq’s potential and creating an enabling environment.

[bondLady] yes and timmy will bring in those paragraphs when were through with this article

[shredd] i love this line "leveraging Iraq's potential" i believe an "enabling environment"

[bondLady] and iraqs potential as we know is so massive

[shredd] includes a strong dinar that is the goal. yes, massive

[bondLady] With regard to the fiscal sector, the budget must be managed carefully to maintain macroeconomic stability, meet Iraq’s large social and investment needs while continuing to accumulate buffers to address oil market volatility, and ensure medium-term fiscal sustainability. 

At the same time, Iraq needs to strengthen fiscal institutions and public financial management to make sure that the large oil revenues are used effectively and transparently. “Developing a stronger financial sector development will require moving away from the current model in which weak state-owned banks dominate the financial sector and enjoy favorable treatment vis-a-vis private banks. 

A solid banking system that can support growth and employment will require the full financial and operational restructuring of state-owned banks and creating a level playing field for both private and public banks.

 “Finally, while oil-growth is projected to remain high over the coming years, boosting non-oil private sector growth will need a long-term government strategy centered on improving the business environment and opening up opportunities for the private sector.”

http://www.imf.org/external/np/sec/pr/2013/pr1387.htm

[shredd] key part for me in this paragraph: Developing a stronger financial sector development will require moving away from the current model in which weak state-owned banks dominate the financial sector and enjoy favorable treatment vis-a-vis private banks. 

I realize this may be a bit for some to fully appreciate, but the wheels of an economy is at the street level private bank lending. rewind to last fall when the banking and investment conference took place... so much groundwork has been laid for the economic sector within Iraq be alive and well in the hands of a safe and transparent private banking sector, why? because that gives confidence to the people lastly, it says high oil growth will boost non-oil private sector growth

[tlm724] We see the committee's and economist's calling for a free market economy daily in the articles which will grow the non-oil sector and create employment ,build infrastructure etc... and the WTO also calling for free market economy

[bondLady] you bet timmy

[shredd] yes,the massive power source of oil will boost the private economy

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Part 2 BondLady & Shredd Chat - Post From BL's Corner - 03/23/2013
 

[bondLady] *****Finally, while oil-growth is projected to remain high over the coming years, boosting non-oil private sector growth will need a long-term government strategy centered on improving the business environment and opening up opportunities for the private sector******* and this is where the WTO and the free market, tarriffs taxes, industries, agriculture, dairy, all the way down to toll roads , traffic tickets ...

what ever you can think of that we are taxed on in our countries, they will too...and this in itself will support the state projects and funding so they can avoid loans and using more budgeted items to fill the needs iraqs economy and private sector will be paying for itself...

these are huge things being set in place by not only the IMF but also the WTO.... such awesome news in this article from the IMF that came out yesterday...

[shredd] yes yes yes and what comes with a "Free Market Economy" by definition? an internationally recognized currency

[bondLady] absolutly shredd and as timmy has showed us from her research of the WTO they must pay for product with there currency not ours and it must be acceptable at all the banks of the countries that are selling to iraq or working with iraq
 
  [shredd] I mean, read this whole article a few times......and remember the source! This is such a wonderful confirmation and report card of where Iraq is, what goals are in front of them and the projections the IMF sees in Iraq!!

[bondLady] this is the break down of the imf report we just concluded

[bondLady] Next we present article 4 of the IMF

[tlm724] Article IV: Obligations Regarding Exchange Arrangements Section 1. General obligations of members Recognizing that the essential purpose of the international monetary system is to provide a framework that facilitates the exchange of goods, services, and capital among countries, and that sustains sound economic growth, 

and that a principal objective is the continuing development of the orderly underlying conditions that are necessary for financial and economic stability, each member undertakes to collaborate with the Fund and other members to assure orderly exchange arrangements and to promote a stable system of exchange rates. 

In particular, each member shall: (i) endeavor to direct its economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, with due regard to its circumstances; (ii) seek to promote stability by fostering orderly underlying economic and financial conditions and a monetary system that does not tend to produce erratic disruptions; 

(iii) avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members; and (iv) follow exchange policies compatible with the undertakings under this Section

[shredd] the essential purpose ........of the international monetary system....... is to provide a framework that facilitates the exchange of goods, services, and capital among countries. the key part to focus in on is the exchange of capital...... as it ties into what we are talking about the principal objective being...."the continuing development of the orderly underlying conditions that are necessary for financial and economic stability" 

we'll expand on it when we look at section IV in here but see where it says: (iii) avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members compliance with the Article in full is going to demand a fair exchange rate regime

[tlm724] Section 2. General exchange arrangements (a) Each member shall notify the Fund, within thirty days after the date of the second amendment of this Agreement, of the exchange arrangements it intends to apply in fulfillment of its obligations under Section 1 of this Article, and shall notify the Fund promptly of any changes in its exchange arrangements. 

( Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member, or (ii) cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or (iii) other exchange arrangements of a member’s choice.

© To accord with the development of the international monetary system, the Fund, by an eighty-five percent majority of the total voting power, may make provision for general exchange arrangements without limiting the right of members to have exchange arrangements of their choice consistent with the purposes of the Fund and the obligations under Section 1 of this Article.

[shredd] ok, so exchange arrangements:we've known that the IMF will be involved when a "change in its exchange arrangements" takes place and this is what this section speaks to....approval through the IMF and don't forget, the article we just looked at stated that discussions regarding this Article IV were completed...just a reminder as we read thru this

[bondLady] right ! Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member,

[shredd] hold on because it's going to get better

[bondLady] or (iii) other exchange arrangements of a member’s choice. © To accord with the development of the international monetary system, the Fund, by an eighty-five percent majority of the total voting power,

[tlm724] Section 3. Surveillance over exchange arrangements (a) The Fund shall oversee the international monetary system in order to ensure its effective operation, and shall oversee the compliance of each member with its obligations under Section 1 of this Article. 

( In order to fulfill its functions under (a) above, the Fund shall exercise firm surveillance over the exchange rate policies of members, and shall adopt specific principles for the guidance of all members with respect to those policies. 

Each member shall provide the Fund with the information necessary for such surveillance, and, when requested by the Fund, shall consult with it on the member’s exchange rate policies. 

The principles adopted by the Fund shall be consistent with cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, as well as with other exchange arrangements of a member’s choice consistent with the purposes of the Fund and Section 1 of this Article. 

These principles shall respect the domestic social and political policies of members, and in applying these principles the Fund shall pay due regard to the circumstances of members.

[shredd] good things in this section! the Fund shall exercise firm surveillance over the exchange rate policies of members when requested by the Fund, shall consult with it on the member’s exchange rate policies, which again, reference the article we brought in before this.......

this is what was done! the key part of this section:The principles adopted by the Fund shall be consistent with cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, so what does this tell us? 

the change needs to be fair, cooperative and referring to the above subsection...... consistent in exchanging capital. you'll see further meaning in the next section titled "Par Values"this is huge.....and ties in with the last bunch of chat's I've been harping on

[tlm724] Section 4. Par values The Fund may determine, by an eighty-five percent majority of the total voting power, that international economic conditions permit the introduction of a widespread system of exchange arrangements based on stable but adjustable par values.

 The Fund shall make the determination on the basis of the underlying stability of the world economy, and for this purpose shall take into account price movements and rates of expansion in the economies of members. 

The determination shall be made in light of the evolution of the international monetary system, with particular reference to sources of liquidity, and, in order to ensure the effective operation of a system of par values, to arrangements under which both members in surplus and members in deficit in their balances of payments take prompt, effective, and symmetrical action to achieve adjustment, as well as to arrangements for intervention and the treatment of imbalances. Upon making such determination, the Fund shall notify members that the provisions of Schedule C apply.

[shredd] the fund may determine, by majority vote, international economic conditions permit the introduction of a widespread system of exchange arrangements based on stable but adjustable par values. so lemme explain par values

[bondLady] *******by a majority vote********

[shredd] this is referring to balances on debt instruments remember when we talked about how crucial investment is to Iraq? and when the dinar came back on stage

[bondLady] yes sir

[shredd] WHEN it comes back, that the investment vehichles had to change with it? Well, here we see that this is addressed in this article again, this Article IV that was just discussed per the article we started with! so they are making preparations for the coming change to the dinar. 

let's keep going.....the next portion says this: for this purpose shall take into account price movements and rates of expansion in the economies of members. The determination shall be made in light of the evolution of the international monetary system so as the dinar evolves..... take prompt, effective, and symmetrical action to achieve adjustment, as well as to arrangements for intervention and the treatment of imbalances. the balances of all related investments will be adjusted

[shredd] the IMF is all over it and again, they just completed discussions regarding this Article IV....and not like discussions about passing some law in parliament....this Article has been in place in the IMF.... their discussions were about IMPLEMENTING what is stated here approval of the change and steps regarding adjustment prompt, effective and symmetrical action!

[tlm724] concluded discussions shredd

[shredd] yes timmy!

[shredd] concluded their discussions

[tlm724] the time for talking is over. It is now time for action !

[bondLady] Just like some of my chats in the past where I've basically said the IMF, in a manor of speaking, is like the God Father...what the IMF says goes, and if some country doesn't want to abide by IMF decisions...then what happens? The IMF sends in its muscle and thats the UN...United Nations,...keeping in mind iraq is trying to come out of mega sanctions not add more sanctions to the list, so when the IMF speaks...like EF hutton...Iraq will listen

[tlm724] Section 5. Separate currencies within a member’s territories (a) Action by a member with respect to its currency under this Article shall be deemed to apply to the separate currencies of all territories in respect of which the member has accepted this Agreement under Article XXXI, Section 2 (g) unless the member declares that its action relates either to the metropolitan currency alone, or only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies. ( Action by the Fund under this Article shall be deemed to relate to all currencies of a member referred to in (a) above unless the Fund declares otherwise.

http://www.imf.org/external/pubs/ft/aa/index.htm#art4

[shredd] this just speaks to keeping consisitency within each member's country not fluctuations by regions.

so in summary, the first article shows us that the IMF concluded it's discussions regarding Article IV and we looked at all the exciting things that are involved into Article IV. So going back to that first article, what's next? We saw confirmation of the massive growth we see goals for ongoing growth and we see that all of this was discussed in light of how the exchange change will be approved, managed and implemented. 

When you look at all the requirements in Article IV, does a slow, incremental shifing of the dinar over many months or even years fit into this? No way! This address' a large change adjusting par amounts of agreements requiring a majority vote and in relation to other members. This to me, spells out a bigger shift than a gradual move !! Great work ladies and exciting to see this confirmation!

[tlm724] We have watched , learned and researched to the best of this teams ability . It is apparent we are coming to our own conclusion in this investment. The world is ready for Iraq to show her true colors and I am so grateful for this opportunity in my life to witness the birth and growth of this nation. 

I thank you BondLady for the chance to be a part of this great team ! Shredd thank so much, it is great to have you on this team and to have you explain this in terms we can understand !

[bondLady] Awesome. Thank you so much timmy for the awesome research you do for us and thank you so much shredd for "banking" in our corner and understanding the banking through a bankers perspective and helping us all to understand these things better. I salute you both. Thank you very much !

[bondLady] and in closing this concludes Timmys, Shredd and BondLady and our round table discussion of IMF Mission Concludes Article IV Discussions with Iraq ...and Article IV: Obligations Regarding Exchange Arrangements ... March 21st 2013..... I hope everyone has enjoyed our work and efforts to keep you notified and up to date on our investment into the iraqi dinar........shredd, timmy and BondLady...out.

Edited March 23, 2013 by ronscarpa
remove link to other site - a VIOLATION of Form Rules

[RVPleaseToday]

"When you look at all the requirements in Article IV, does a slow, incremental shifing of the dinar over many months or even years fit into this? No way!"

 

This is a complete misinterpretation of what article IV says. The goal is to prevent countries making large shifts in exchange rates. It says the goal is to maintain stability. A rapid shift would completely destabilize world financial structures.

[hame55]

Parts 1 & 2 BondLady & Shredd Chat - Post From BL's Corner - 03/23/2013

 

I have doubts now about all this increasing economy= a high dinar premise.

They can have a growing economy - and use the dollar. Bondlady says Iraqis want the dollar because of its purchasing power - darn right! The dinar isn't going to go up on just pride...I don't think they care what pretty colors are on their money.

 

Now if a revalue makes a lot of money for the GOI, and for dinar holders everywhere, then that makes more sense. The most sense.

All this talk of pride and economy doesn't mean squat if they keep using the dollar - AND I SAY AGAIN...NO ONE HAS BROUGHT FORTH A BULLETPROOF ARGUMENT THAT THEY CANNOT USE THE DOLLAR INDEFINITELY

[jeepguy]

that is true r.v.please.---- but---- that is against a currecny that is doing well - like the british , german, china, and so-on,, but iraq was knocked down from a 3.oo spot, i take this meaning ----> the dinar will not go back too a 3.oo rate , only after years of work --- but it can--- go too a rate between 1 to 1 and 2 to 1 <---- between,,,, i would think that 1.3o too 1.5o would be ideal for iraq, but then again look at the corruption factor, the security factor also, whick brings me to -----> .50 per dinar to start up........ 1000- too 1 not so sure with the c.b.i. talking here ,<---- { like the new notes and new coins talk last year, or anyother chatter about dinar }  this is just my thoughts,,,,,, would be nice to see it happen in april but --- > still looking end of year  { sorry --- hope i`m wrong and it is april }

[sweet C]

I have doubts now about all this increasing economy= a high dinar premise.

They can have a growing economy - and use the dollar. Bondlady says Iraqis want the dollar because of its purchasing power - darn right! The dinar isn't going to go up on just pride...I don't think they care what pretty colors are on their money.

Now if a revalue makes a lot of money for the GOI, and for dinar holders everywhere, then that makes more sense. The most sense.

All this talk of pride and economy doesn't mean squat if they keep using the dollar - AND I SAY AGAIN...NO ONE HAS BROUGHT FORTH A BULLETPROOF ARGUMENT THAT THEY CANNOT USE THE DOLLAR INDEFINITELY

never mind Edited March 23, 2013 by sweet C

[easyrider]

Great post!!! The IMF is saying enough with the discussions they are OVER.  Now its time to get it DONE!!!

[stealthwarrior]

As long as we let them.there is way too much confusion in these posts.we might get rich or we might not gain a nickle but i really do think that we will know sooner than later.somebody is going to make a huge profit and it might not include us at all.

[rightsonword]

I have doubts now about all this increasing economy= a high dinar premise.

They can have a growing economy - and use the dollar. Bondlady says Iraqis want the dollar because of its purchasing power - darn right! The dinar isn't going to go up on just pride...I don't think they care what pretty colors are on their money.

 

Now if a revalue makes a lot of money for the GOI, and for dinar holders everywhere, then that makes more sense. The most sense.

All this talk of pride and economy doesn't mean squat if they keep using the dollar - AND I SAY AGAIN...NO ONE HAS BROUGHT FORTH A BULLETPROOF ARGUMENT THAT THEY CANNOT USE THE DOLLAR INDEFINITELY

I agree. I never understood the logic behind the "pride" argument. I think the Iraqis are just like Americans and the rest of the world. We don't care what money is used, so long as we're making it, and right now Iraq is definitley making money using the dollar.

[OZmosis]

I have doubts now about all this increasing economy= a high dinar premise.

They can have a growing economy - and use the dollar. Bondlady says Iraqis want the dollar because of its purchasing power - darn right! The dinar isn't going to go up on just pride...I don't think they care what pretty colors are on their money.

 

Now if a revalue makes a lot of money for the GOI, and for dinar holders everywhere, then that makes more sense. The most sense.

All this talk of pride and economy doesn't mean squat if they keep using the dollar - AND I SAY AGAIN...NO ONE HAS BROUGHT FORTH A BULLETPROOF ARGUMENT THAT THEY CANNOT USE THE DOLLAR INDEFINITELY

 

No-one has brought forth a bulletproof argument that they cannot use the dollar indefinitely ??   My question is why would Iraq or any other country WANT to be using the US$ as its' primary form of currency indefinitely ???  Iraq would have more bulletproof reasons to restore the value of their own dinar currency than to use the US$ - especially as the global "purchasing power" of the US$ appears to be diminishing as we speak.  And it is in fact all about pride and why not - pride is a great motivator - as is patriotism.

[RVPleaseToday]

I think if it was that easy, the U.S. would simply "restore the purchasing power" of the USD. 

[OZmosis]

I don't think it is easy in fact it is the opposite.  US is trying hard to revitalise the economy but enormous challenge in global climate.  Here in OZ our manufacturing industry is dying - we just sell raw products - iron ore, wool etc to China - then we buy back the product produced.  Again, here in Oz - we have been flying high a few years primarily due to mining exports and that has started to show some cracks in the nest egg - our deficit is increasing due to Govt over-spending and financial naiveness.

 

The difference between us and Iraq - is that Iraq has identified the issues and making the hard decisions to jump the hard hurdles while we have no idea how to rebuild our economies due to the increasing economic power of China and our dependency to buy their cheap stuff instead of making our own. 

 

History will show that Iraq will achieve where we will not - they will be more financial viable as a country than the US or Oz -  and it is only a matter of time when the US$ will not be used as their primary currency.  Their motivation to achieve this is evident.

[RVPleaseToday]

What is it that you think will ultimately make Iraq more financially viable than the U.S. or Oz?

[MyLadiesDaddy]

What is it that you think will ultimately make Iraq more financially viable than the U.S. or Oz?

Try GOD. And if that doesn't work try the second largest oil reserves in the world.

One thing for sure is I am glad all you half empty glass peeps don't have a say

In this.