For some time now I have personally had my eye on Iraq's dealings with other countries, much like many of you have.
When it was announced that Iraqi officials were making a special trip to China for some specialized talks, it really perked me up! I wrote about it in a few places, and followed up a few days ago with an explanation of how Iraq can be really successful by following a similar path as Panama. (Let's not get into politics here - I'm talking about business strategy.)
Since then, the China news has just gotten hotter and hotter! Of course none of us knows exactly how this is going to shake out, but it's undeniable that some major movements are taking place.
The examples are too numerous to list, but here's a good one... start at this following link and learn about EIGHT "important agreements" between China and Iraq.
Anyone remember a company called "Huawei"? Yeah, they are listed in these articles too.
The amount of the agreements amounts to some $500 billion (on the surface). Is this China investing in a poor, tattered, and hopeless nation? Or is it China investing in a resource rich and soon to be powerful ally?
When every Iraqi suddenly has the money to buy a smartphone, Huawei is going to be first in the shipping lines. And make no mistake, Huawei isn't on the market making "just" chinese electronics and spy gear... check out this comparison of Huawei's camera vs Apple and Google's best products.
That's just a little sidenote. It's a tiny speck in the big picture. Perhaps a bigger speck is this one:
The multi-million dinar question at this point may be as simple as this: "If China invests 500 billion into Iraq, does Iraq want to pay it back in Pre or Post RV dinars?"
Quick note about the drone attacks on the Saudis - OIL is a pivotal issue in the Iraqi Dinar rate. It's no surprise that the recent events caused a flurry of commotion in the Dinar world.
Oil speculation went wild for a couple minutes (ok, days), but currently stabilized at $59... sounds like the above statements from Saudi sources are believed by the world, and therefore they are true. (Think about that, if you have to! )
Perhaps more worthy of our attention right now is the deal with China.
Before I go into this, let's consider a different country. I'm talking about Panama. I learned a couple things about that country, and the way money flows through it, from my work in Asset Protection and my travels to Panama to explore options there. (I've talked extensively about this in VIP/OSI.)
Don't worry, I'm not getting sidetracked here. This is VERY relevant to Iraq, Iraq's currency, and the value of Iraq's currency.
Does anyone here know who builds and maintains the roads in Panama? Hint... it's not Panama. More importantly, do you know who collects the moneys for the tolls on the highways in Panama? Once again... it's not Panama.
Panama cares not for the large amounts of money being spent on, and earned by, the roadways there. The roadways are very important! But they are not Panama's bread and butter... so they outsource it.
Kind of like what Iraq may be doing with China. Abdul Mahdi is spending a week, with an entourage, on this. Check it out:
China does more than just steal our patents and influence the forex with their currency manipulation. China has the ability to dump loads of money into Iraq's infrastructure, taking significant weight off of the Iraqis in that regard, which would free up Iraq's resources (time/people/government/etc) to focus on their actual bread and butter. China won't be doing this for free... in fact, I can foresee Iraq becoming so indebted to China over this that they are forced to raise the value of their currency just to cover the debt that they will willingly incur from China in order to fast-track their future. Iraq then officially enters the currency manipulation game, just to keep up with China, and that just tickles me pink!
Who wins if this happens?
China wins. Iraq wins. We win.
This is a clear path to Iraq becoming even stronger, with a stronger currency, and the rest is sort of irrelevant.
Pretty neat stuff.
I have an update, but it won't be posted till tomorrow.
In the meantime...
Good morning all!
12 September, 2019 as I'm editing this post.
September 11 is always a tough day for me personally... Like many of you, I remember exactly where I was. What I felt. How deeply I and my fellow Americans and indeed the world were affected on that day.
As important as the Iraqi Dinar RV is to many of us, I simply could not bring myself to post anything other than my heartfelt remembrance yesterday. My heart, prayers, and thoughts will always be with the many who were affected on that day years ago - but today is a new day, and while I/We will never forget... we must move forward.
As we move forward, to the present day, where so much has changed and yet so much has not, there is another situation that is taking a lot of my time right now - the devastation left by Hurricane Dorian, particularly in the Bahamas. I've been personally involved with some relief missions over the last week, and I'm continuing to work with a couple of groups that are dedicated to helping the Bahamians long after this current disaster is out of the News. This community has came together in the past to accomplish some amazing things (remember TFYC for Dominica?), and I have confidence that I'll be able to reach out for your support in a couple weeks when I've solidified some things I'm currently working on. Just like our relief efforts for Dominica, I will be personally ensuring that any dollars this group donates will be put to the most efficient possible use, with 0 waste.
On to the Dinar!
WTI OIL is currently at 54.94 - I don't think I've ever seen an easier chart to read. This is what we call "stabilized":
It's been some time since this came up in the news, but I believe it was about 5 months ago I made mention of Saudi Arabia working on playing nice with Iraq again... and what they have to gain by doing so. Saudi Arabia couldn't be bothered to give Iraq the time of day 10 years ago... now, they are changing their tune:
Other news that's positive - CBI, IMF, GOI are all active. We are not in one of those vacation-day lulls. Overall, it looks like things should start moving... right in time to hit a mid-September spurt.
That's it for now! Stay positive, stay safe, be well everyone, and of course
P.S. It seems fitting to throw one of these in here:
Our hearts go out to those affected by Hurricane Dorian. Although it ended up being a much smaller disaster than it could have been - the weather over the last week has still been disastrous to many.
The people of the Bahamas have been hit hard. Seriously, folks...
Anyone wishing to help may want to take a look at this page: https://www.bahamas.com/relief
On to Dinar!
I'll start with the basics. OIL has flattened out around $56. This is key to the coming weeks, where HCL is expected to be a key topic. If OIL was going nuts, we couldn't expect any solid HCL progress.
Next - delays, holidays, corruption, oh my!
I can't help but notice occasionally as I'm reading the news out of Iraq that people tend to get bent out of shape when they see words like those. There are times when I read the news and I think "this isn't going to help" - but there are other times when we can see a story and even though it uses the words "delay" or "holiday" or (*insert anything here), that doesn't mean "all is lost".
I think it's more important to have a "big picture" mentality. If you adopt that, you'll realize that the more news we are seeing about "Oil and Gas", which is precisely the topic we want to hear about... the more we hear about it, the more we are going to see the words "delay", "issues", etc.
My point is that if we are hearing those words more than we usually do... this is actually a GOOD thing.
It means they are paying attention, my friends. It means they are actually working on the important stuff.
That's enough to make me happy on this particular Wednesday.
Cheers, to getting closer to the last time we care about how much they mention their "holiday" schedule!