Good News For The Dinar – China Is Buying Half Of Iraq’s Oil & Wants Even More

[dinarbeleiver]

Good News For The Dinar – China Is Buying Half Of Iraq’s Oil & Wants Even More

U.S. taxpayers have carried nearly all the burden of the Iraqi conflict since even before 2003, and during the Gulf War the implicit “prize” for the U.S. was to have been access to Iraq’s huge oil resources. Yet, it has now become apparent that China has been the main purchaser of the surge in Iraq’s oil exports in recent years.

And, China is investing heavily in Iraq’s oil sector, with numerous in-country oil exploration and development ventures.

The predominance of China in Iraq’s oil industry is good news for the value of the Dinar and its investors, since oil-poor China’s eagerness for long-term petroleum sources means a steady flow of Chinese Yuan to buy Iraqi Dinar as required for an increasing number of oil-sales contracts.

The U.S. fought in Iraq, and China won

Currently, China is buying 1.5 million barrels of oil per day from Iraq, about half its entire production, and is working behind the scenes to make deals for even larger amounts. For example, China is bidding for ownership of ExxonMobil’s stake in Iraq’s biggest oilfield.

Now several years after the cessation of major hostilities, Iraq’s oil industry is booming, and monthly oil exports are rising steadily. Some Americans grouse about the fact that huge amounts of our country’s blood and money have been spent to build democracy in Iraq, while the Chinese stayed home and did nothing.

And, many people believe that Iraqi oil should be flowing exclusively to U.S.-controlled companies so that we can begin to recover the enormous costs of our Iraqi interventions.

Certainly, our military and administrative involvement in Iraqi affairs hasn’t paid for itself, as former Secretary of Defense Donald Rumsfeld and his staff had suggested it would, prior to our intervention.

The broader view

Still, the growing Chinese dominance of the Iraqi oil industry is certainly good news for Dinar investors, and probably for the overall U.S. economy as well. That’s because global energy production isn’t a zero-sum game. Simply because China is more active in Iraq than the U.S. isn’t necessarily bad for the U.S. economy.

On the contrary, savvy Dinar investors should be pleased that China is meeting a need in the Iraqi marketplace, which U.S. companies haven’t addressed, for a variety of reasons. In fact, there are several important reasons why American investors should be smiling about China’s presence in Iraq. Here’s why:

China is overpaying because it’s desperate for oil

One of the main reasons that Chinese oil companies are better-established in Iraq than American or British oil firms is because the Iraqi Oil Ministry’s drilling guidelines are stricter than those of most other oil-producing nations.

Since it costs a bit more to drill for oil in Iraq than elsewhere, companies based in free-market nations such as the U.S. and Britain have found it more cost-effective to focus on large-scale oilfield development in countries other than Iraq.

To be sure, the petroleum industry in Iraq is being developed very rapidly, yet this development costs slightly more than it does in most other countries worldwide. That means U.S. and British oil companies have preferred to drill for oil in neighboring countries with lower costs.

In contrast, China isn’t a democracy and Chinese industries aren’t beholden to profit motives. Instead, Chinese government policies are oriented toward ensuring an adequate supply of imported energy for their heavily-industrialized yet energy-poor nation.

Frankly, China’s leaders are so desperate for energy that they’re willing to pay a bit more than their Western counterparts. Subsidized by government aid, Chinese companies are drilling for oil and building infrastructure in Iraq at a cost that U.S. and British companies find unpalatable.

Meanwhile, the leaner, more-profitable U.S., British and European oil companies are saving their money by drilling and producing larger quantities outside Iraq, while still maintaining a strong “footprint” inside the country.

The Chinese oil companies’ focus on Iraq has the effect of reducing Chinese competition in other, lower-cost oil-producing countries. So, that means U.S. companies face less competition for buying or developing oil production in other, cheaper-producing countries.

Nobody seems to mind the fact that China is willing to spend more money, and the Iraqi treasury is certainly benefiting from Chinese oilfield spending.

So, that’s good news for Dinar investors – Oil revenues accumulate faster in the vaults of the Central Bank of Iraq (CBI), thus providing stronger backing for the IQD, so China is indirectly helping American investors.

China is footing the bill for infrastructure development

While exploring and drilling for oil throughout remote regions of Iraq, Chinese companies are obligated to build not only pipelines, refineries and storage tanks, but also roads, electricity and water utility services, and other permanent infrastructure simply to have the opportunity to do business in primitive areas.

The main reason why the Gulf War didn’t “pay for itself” quickly is that, in the period leading up to the ouster of Saddam Hussein, the country was burdened by UN sanctions which crippled the Iraqi oil industry. To restart that industry has required a huge investment, and China is paying the bill.

China’s investments in Iraq are massive, possibly as much as $30 billion per year. Dinar investors worldwide should be very pleased, since the huge inflows of Chinese Yuan to pay for permanent infrastructure create lasting value as well as supporting the value of the Iraqi currency.

Reduces Chinese reliance on Iran

As China buys more oil from Iraq, and focuses its infrastructure-building investments there, it is becoming less dependent on Iranian oil. This should tend to ease geopolitical tensions and reduce polarization in the region somewhat, since it means that China will no longer be committed to siding with Iran in its longstanding confrontation with the U.S.

Frankly, the friendlier that China becomes with Iraq, the less committed it will be in Iran. This is good news for Dinar investors, because it means that Chinese resources formerly dedicated to building an “enemy” nation such as Iran are now being diverted into strengthening Iraq, its U.S.-friendly neighbor.

Roll out the welcome mat

In summary, even though China is perceived by many U.S. politicians as an adversary to our commercial interests for a variety of reasons, still, at least with regard to Iraq it seems evident that China’s activities in Iraq are truly a blessing for Dinar investors.

[...]

[Saint]

I may have a solution to help both the US, Iraq, and China at the same time.

 

1. The US owes China a whole ton of money

 

2. The US needs to recoup our investment for being in Iraq

 

3. China needs more oil

 

Let the US have the oil and then sell it to China to pay off the US debt owed to China. This way Iraq pays the US in the form of oil and we pay China in the form of oil. The bottom line everybody gets what they want.

 

I like simple. 

[moneysoon]

Saint,

 

I was thinking in a similar fashion but a little cleaner

 

1. Iraq owes the US for the costs it took to liberate their Country.

 

2. Instead of paying the US in OIL or Dinar and risk confirming that this liberation was simply to get their oil. They instead give China our due benefits.

 

3. The debt we owe China is reduced or forgiven commensurate with the oil they receive from Iraq.

 

One hand washes the other and none will be the wiser. Clean and effective. Once our debt is repaid to China, we may collect the balance from Iraq with some

"new agreement"...

[DWitte]

Do we know who wrote this article?  Even though I may like it, I have a question.  The author mentions that China's involvement with Iraq will strengthen the Dinar, then how come it always stays at 1166?  With so much pressure on the Dinar how can it stay so stagnant for so long?

[dinarbeleiver]

Do we know who wrote this article?  Even though I may like it, I have a question.  The author mentions that China's involvement with Iraq will strengthen the Dinar, then how come it always stays at 1166?  With so much pressure on the Dinar how can it stay so stagnant for so long?

Do we know who wrote this article?  Even though I may like it, I have a question.  The author mentions that China's involvement with Iraq will strengthen the Dinar, then how come it always stays at 1166?  With so much pressure on the Dinar how can it stay so stagnant for so long?

Do we know who wrote this article?  Even though I may like it, I have a question.  The author mentions that China's involvement with Iraq will strengthen the Dinar, then how come it always stays at 1166?  With so much pressure on the Dinar how can it stay so stagnant for so long?

I don't think the dinar will stay stagnant much longer - soon the dinar will be subject to demand and the supply will be short therefore increasing it's value substantially. The article I nicked from another dinar site. Mambe someone who is Internet savvy can find the original source

[Wiljor]

I believe it was a Youtube video from last year. Here it is.

Good News For The Dinar – China Is Buying Half Of…: http://youtu.be/L9f2SVSXHLo

Edited January 8, 2015 by Wiljor

[The Machine]

I may have a solution to help both the US, Iraq, and China at the same time.

 

1. The US owes China a whole ton of money

 

2. The US needs to recoup our investment for being in Iraq

 

3. China needs more oil

 

Let the US have the oil and then sell it to China to pay off the US debt owed to China. This way Iraq pays the US in the form of oil and we pay China in the form of oil. The bottom line everybody gets what they want.

 

I like simple. 

 

the thing is China is actively buying US debt ..... they want it, they dont want or need dollars

 

they want oil, and Iraq has it , kinda leaves the US out of the equasion

[vietnam1969]

China is no fool for buying all the oil they can from Iraq and putting money into it's infrastructure. Even though our relations with China are not 100% to the good, just stop and think about what their main mission is. First of all they have the money to do what they want,  whether it is buying oil at a slightly higher price or not. IMO  they are filtering more of the yuan into another country which accepts their currency. Many countries have been trading with the Chinese yuan for years and now within the past decade or so other countries have been trading their oil (for one thing) and spreading the yuan all over the world. China wants this to be the top currency in the world and they are slowly but surely giving it a run for their money. Second, where do you think most of the world's imports of manufactured products come from?  Think about this for a minute. The US and other countries pay the Chinese people to make the products we want because of their cheap labor costs, right? Then when we get in a bind we BORROW money from them and etc.  They have trillions of dollars worth of our treasury notes, if I am not mistaken and if all of a sudden they call them in, how will we pay them?  Print more dollars?  I am getting off the main subject now but I think you understand what I am saying about China and it's involvement in Iraq. 

[new york kevin]

Saint. I like the way you think on this point. It should be done this way. Also, yes this is an old article, they have a similar contract with India for 35% of India's annual needs if I am recalling correctly.

[yota691]

Great Example of Reality on OIL CREDITS...Municipalities: investment or payment on credit or loans for the implementation of projects in 2015

 

 

         

1/13/2015 0:00 

 Baghdad Mowaffak 
confirmed the Ministry of Municipalities and Public Works to resort to investment credit or payment on credit and loans the way for the implementation of new projects during the current year. 
He said media adviser at the ministry Jassim Mohammed Salim "morning": that the ministry is seeking to implement eight projects for water and sanitation in the pan provinces during the current year by making use of the World Bank grant, the fact that the Ministry's budget during the year 2015 does not help in the creation of any new project, except to rely on the completion of the projects referred to in the past years. 
He added that the ministry is going to rely on the implementation of new projects to invest or pay on credit , where the Minister of Municipalities and Public Works Abdul Karim Ansari took place over the past few days, a memorandum of understanding with the Chinese consul in Baghdad, whereby the Chinese side to implement projects in Iraq at a cost of four billion and a half billion dollars a manner that payment on credit, however, that the ministry is waiting to obtain Cabinet approval for the direct implementation, stressing that the Chinese giants expressed their willingness, according to Chinese Consul to work in Iraq and the implementation of projects through investment and payment on credit. 
and between Salem said the investment side is necessary to support the work of the ministry during the next term in the absence of the adequacy of its annual budget, where the ministry suffers from a fundamental problem in the weak funding, noting that the ministry will develop a plan with the help of consultants to benefit from this side. 
He pointed to the lack of the possibility of dealing with water and sanitation file are also dealing with the rest of the service files, as it can not be the presence of the activities and events of development in the country as there were not infrastructure projects sober and private in the sectors of sewage and water, therefore, allocated to the Ministry of the amount during the current year to make the ministry at bay to complete the infrastructure file in accordance with the strategic plans developed by the ministry, pointing at the same time to continue the ministry to conduct inspection visits to deployed in the provinces of projects in order to see the the percentage of completion and speed up the allocation of the final advances for projects to reached the stages of completions in order to enter into service to raise employers ratios, where he was briefed Minister of Municipalities yesterday, accompanied by a ministerial delegation on infrastructure projects that have been destroyed by the "Daash" gangs of terror in terms of the rock cliff and the area of the Lakes in terms of Alexandria and the project streams Hilla great in the province of Babylon.

Read more: http://dinarvets.com/forums/index.php?/topic/194419-municipalities-investment-or-payment-on-credit-or-loans-for-the-implementation-of-projects-in-2015/#ixzz3Og5RRSVH

[moneysoon]

Its going to happen, all we have to do is wait them out.........

[George Hayduke]

Its going to happen, all we have to do is wait them out.........

 

 

Spoken like a true fisherman.  

[sandfly]

THANKS

[DinarThug]

THIS IS A WEEK OLD THREAD AND UR JUST GETTING AROUND TO 'THANKING' IT - SLACKER !

[boosterbglee]

Thanker!!  

[wbuse984]

Sandfly

[dinarbeleiver]

Your all slacking with your thanking lol

[Texstorm]

Thanks DB ! Great find ! I'm in the right spot at the right time ! Yaba Daba Doooooooo !

[wbuse984]

Texstorm:  One question, Wilma or Betty?