PD Conference Call Summary: 1/07/2011 @ 12:20 AM EST

[FishMan1969]

once you take a loan from the imf, they can force the issue, check india.......

and i agree pd is almost worse than tk, thy had no contacts and when they started there own site now they are best friends with george bush.......

Authority of the IMF is in question in regards to this issue, and I understand why....

But what about the assumption that Shabibibibibibibi has the authority to either RV or RI or even determine the rate at which to do so....

I would also pose that question for consideration as well with the conflicting statements between the Constitution and Statement issued by CBI website..

Constitution:

Article110: The federal government shall have exclusive authorities in thefollowing matters:

Third: Formulating fiscal andcustoms policy; issuing currency; regulating commercial policy across regionaland governorate boundaries in Iraq; drawing up the national budget of theState; formulating monetary policy; and establishing and administering acentral bank.

CBI site:

The CBI

The primary objectives of the Central Bank of Iraq (CBI) is to ensure domestic price stability and foster a stable competitive market based financial system. The CBI shall also promote sustainable growth, employment and prosperity in Iraq. The functions of the CBI in addition to achieving its primary objectives are:

• Implement the monetary policy and the exchange rate policy of Iraq.
• Hold gold and manage the state reserves of gold.
• Issue and manage the Iraqi currency.
• Establish, oversee, promote a sound and efficient payment system.
• Issue licenses or permits in addition to regulating and supervising the banking sector as specified by the Banking Law.
• Carry out any ancillary tasks or transactions within the framework of Iraqi law.

http://www.cbi.iq/index.php?pid=TheCbi

So...... Who really is running the show over there?

[keepmwlknfny]

once you take a loan from the imf, they can force the issue, check india.......

and i agree pd is almost worse than tk, thy had no contacts and when they started there own site now they are best friends with george bush.......

Yea they can have a voice in the matter and tell them what they want done, maybe steer them in the right direction but as far as doing it for them? I would have to say no, the IMF doesnt control Iraqs monetary policy or put its actions forward....the CBI still has control of that dont you agree? The whole spill with China and EVERYONE agreeing that their currency is undervalued for what it should be with the amount of trade they are involved in and it took the US pressuring them and basically warning them if they didnt there would be reprocussions but the IMF had no part in that.....you would think IF they had authority like that they woulda stepped in.....unless I missed their part in it totally

[drox]

Guys... I don't agree with the cc... but, the IMF has an enormous say in a country's exchange rate. It is part of the international recognition process. Iraq's currency's par value must be within reason and fair to other nations it trades with. It is an extremely delicate balancing act and finding the right number is crucial. See below. http://www.imf.org/external/pubs/ft/aa/aa04.htm

Articles of Agreement of the International Monetary Fund

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.

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.

(b) 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.

(c) 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.

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.

(b) 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.

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.

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.

(b) 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.

[CaptainJack]

This post was done 6 hours earlier.

ONLY THEY FELT THEY NEEDED TO EDIT THE PHONE NUMBER FOR THE LIVE ABILITY TO HEAR IT FROM MY POST. Guess you need to be a prodical ? member.

Senior Member

Group:

Members Posts:

229 Joined:

09-December 10 LocationPhoenix,AZ Posted Today, 03:01 AM

Synopsis: Special guest speaker from oil industry. Stated he was fortunate to have many contacts in place to know what is planned. Shared that the IMF has planned to take over on Jan 7th... in order for GoI to save face, they need to make the announcement. Stated that using the mosques is a normal occurrence to make major announcements because the great majority of people will be at the mosques and the greater populace do not have access to electricity or electronic equipment necessary to otherwise receive the announcements.

Smart Cards have been loaded and distributed at 250 which has inflamed many of the recipients due to them having no purchasing/buying power. Rate is not part of the discussion but the IQD must come in at/near the KWD in order to establish currency stability in the region. $3.22 is the 'pre-war' rate and should be considered a basement. An RV will be greater than the $3.22 but less than the KWD (within 10% of KWD) and believes that the rate will be near $3.50 (today's KWD closing was $3.57.)

A friend of one of the PD guys which is deeply involved in Forex trading has shared that he also has heard Jan. 7th was a drop dead date - in corroboration of this information.

Says that Sadr's return to Iraq from Iranian exile serves as a public declaration of the internal security of Iraq. Gives hope to the people that things are moving toward normalcy. Said that Thursday was a national holiday but Parliament met all day. This is significant that they did so because they NEVER meet on holidays. UN/IMF may have seen this as a 'good faith' effort in order to stave off the IMF stepping in.

It is believed that Maliki will make an announcement/address on TV (extremely odd for a Holy Day) at 2pm Baghdad time, Friday.

Dinar holders should be able to begin process on Monday or Tuesday. Special Guest gave a 9 out of 10 on his confidence level of this happening as he stated.

If Maliki makes his address, there should be an article in the Gazette on Saturday. If no announcement has been made formally/publicly over here, we should see it emerge on Forex Sunday evening when it opens.

Either IMF or Iraq WILL PULL THE TRIGGER THIS WEEKEND

GO RV

This post has been edited by davhina: Today, 04:46 AM

Reason for edit: posting phone number to other site cc

Read more:

GO RV

saying Iraq HAS to have a currency on par with others in the region is like saying the peso has to be on par with the dollar isn't it? There are other currencies in the region that ate .27 .... .33, etc. Sounds like another one of TK's or Okies BS conference calls where they sit around and talk about how much they know ... which unfortunately to this point has been SQUAT. I hope their wrong, but i doubt it.

[jmw]

saying Iraq HAS to have a currency on par with others in the region is like saying the peso has to be on par with the dollar isn't it? There are other currencies in the region that ate .27 .... .33, etc. Sounds like another one of TK's or Okies BS conference calls where they sit around and talk about how much they know ... which unfortunately to this point has been SQUAT. I hope their wrong, but i doubt it.

YES!!! how do people not get that?...they try to say someone would buy oil in one country instead of the other...drives me crazy...crazier...

Are you sure Drox?

http://www.fas.org/sgp/crs/misc/RS22658.pdf

Currency Manipulation: The IMF and WTO

Congressional Research Service

Summary

The International Monetary Fund (IMF) and World Trade Organization (WTO) approach the issue

of “currency manipulation” differently. The IMF Articles of Agreement prohibit countries from

manipulating their currency for the purpose of gaining unfair trade advantage, but the IMF cannot

force a country to change its exchange rate policies. The WTO has rules against subsidies, but

these are very narrow and specific and do not seem to encompass currency manipulation. Several

options might be considered for addressing this matter in the future, if policymakers deem this a

wise course of action. To date, while the issue remains a topic of concern, governments have not

taken action to address the different ways the IMF and WTO address this topic

International Monetary Fund

The IMF is the leading international organization in the area of monetary policy. With the end of

the cold war, its membership is now nearly universal. Only North Korea, the Vatican, and four

other mini-countries in Europe—none having its own currency—are not members of the Fund.

The IMF makes loans to countries undergoing financial or balance of payments crises; provides

technical assistance to governments on monetary, banking and exchange rate questions; does

research and analysis on monetary and economic issues; and it provides a forum where countries

can discuss international finance issues and seek common ground on which they can address

common problems.

Although the IMF is a monetary institution, the promotion of world growth and balanced

international trade are also among its basic goals. Article I of its Articles of Agreement says,

among other things, that the IMF was created in order to “facilitate the expansion and balanced

growth of international trade, and to contribute thereby to the promotion and maintenance of high

levels of employment and real income and to the development of the productive resources of all

members as primary objectives of economic policy.” It was also created to “assist in the

establishment of a multilateral system of payments in respect to current transactions between

members and in the elimination of foreign exchange restrictions which hamper the growth of

world trade.”

Between 1946 and 1971, the IMF supervised a fixed parity exchange rate system, in which the

value of all currencies was defined in terms of the U.S. dollar and the dollar was defined in terms

of a set quantity of gold. Countries could not change their exchange rates from the level

recognized by the IMF by more than 10% without the Fund’s consent. Moreover, said the original

language of the IMF Articles, “A member shall not propose a change in the par value of its

currency except to correct fundamental disequilibrium.”1 This system broke down in 1971 when

the United States devalued the dollar twice without any consultation with the IMF. After a period

of turmoil in world currency markets, an amendment to the IMF Articles was adopted in 1978. It

said that countries could use whatever exchange rate system they wished—fixed or floating—so

long as they followed certain guidelines and they did not use gold as the basis for their currencies.

The new language of Article IV, which went into effect in 1978, said that countries should seek,

in their foreign exchange and monetary policies, to promote orderly economic growth and

financial stability and they should avoid manipulation of exchange rates or the international

monetary system to prevent effective balance of payments adjustment or to gain unfair

competitive advantage over other members. Some countries claim that their exchange rate

policies are not in violation of Article IV because they are not seeking to gain competitive

advantage (though this may be the result of their actions) but rather to stabilize the value of their

currency in order to prevent disruption to their domestic economic system. To date, the IMF has

not publicly challenged this statement of their objective.

1 This language is quoted from Section 5 of the original language of Article IV as approved by the 1944 Bretton Woods

conference and confirmed by all member countries when the IMF officially came into existence in 1946.

T

Currency Manipulation: The IMF and WTO

Congressional Research Service 2

The Fund was required to “exercise firm surveillance over the exchange rate policies of all

members and [to] adopt specific principles for the guidance of all members with respect to those

policies.” The IMF adopted the requisite standards in 1977 (before the Amendment went into

effect) and it updated them in 2007. The 1977 agreement said that, among other things,

“protracted large-scale intervention in one direction in exchange markets” might be evidence that

a country was inappropriately manipulating the value of its currency. The 2007 agreement added

a requirement that “A member should avoid exchange rate policies that result in external

instability.” When a country’s current account (balance of payments) is not in equilibrium, the

IMF said in its explanation of the new provision, the exchange rate is “fundamentally misaligned”

and should be corrected.2

The IMF can exercise “firm surveillance” but it cannot compel a country to change its exchange

rate. Nor can it order commercial foreign exchange dealers to change the prices at which they

trade currencies. It can offer economic advice and discuss how changes in countries’ exchange

rates might be in their own interest. It can also provide a forum, such as its new multilateral

consultation mechanism or discussion on the IMF executive board, where other countries can

urge a country to change its exchange rate procedures. However, in the end, the authority to make

the change resides with the country alone.

Edited January 8, 2011 by jmw

[BadCobra]

Yea they can have a voice in the matter and tell them what they want done, maybe steer them in the right direction but as far as doing it for them? I would have to say no, the IMF doesnt control Iraqs monetary policy or put its actions forward....the CBI still has control of that dont you agree? The whole spill with China and EVERYONE agreeing that their currency is undervalued for what it should be with the amount of trade they are involved in and it took the US pressuring them and basically warning them if they didnt there would be reprocussions but the IMF had no part in that.....you would think IF they had authority like that they woulda stepped in.....unless I missed their part in it totally

Enjoy reading your posts keepmwlknfny (+1). You always have a grounded and logical approach and I certainly respect that.

As to the article assertion that "It has to be within the limit of the Kuwaiti Dinar. RI is $3.22 base rate and prewar dinar value. The RV would be greater than 3.22 but less than the Kuwaiti dinar. Figures it will be closer to 3.50 than 3.22.", well, I just am not buying into it, even though I hope/wish it is correct. I have posted elsewhere that what strikes me is that any increase in the value, whether by RI ($3.22 + up to 20%, or $3.86) or RV (at what rate, who knows?) I've seen thus far does not seem to account, in my mind, for the trillions of IQD out in the wild. To me the fractional banking model/theory (which I am not pretending to comprehend expertly) simply does not fully account for this presumed fact (that there are indeed trillions of IQD in foreign government reserves and speculators hands). Though the exact number of trillions seems to be a matter of debate, that there are in fact trillions seems to be generally accepted.

Now, even an RV of 1 IQD =$1.00 USD, with the new and still fragile political situation, including the Iraqi economy and security at the forefront, would result in an immediate debt of the Iraqi people/government of trillions in USD$. I have read a ton about how fractional banking would defray this, or that the vast oil/natural gas reserves pays for it (even though those resources are still in the ground), etc., but it just doesn't seem to cover the reality and magnitude in my mind. But,... I CERTAINLY HOPE I AM WRONG. This is my educated, though not all knowing, opinion, so I hope the slings and arrows are not too violently heaved in my direction. Just food for thought,... me thinking in written form...

Hope I have not been too much of a bummer!

Cheers!

[Rome M]

Well, the CC says look to FOREX 4 PM CST on Sunday.........

That is 1 am Tuesday morning here in Kuwait (for Iraq as well)

GUESS WE'LL SEE if anyone is REALLY full of it.............

[Texan49]

Well, the CC says look to FOREX 4 PM CST on Sunday.........

That is 1 am Tuesday morning here in Kuwait (for Iraq as well)

GUESS WE'LL SEE if anyone is REALLY full of it.............

[/quote

Monday morning 1 am, not that it matters I just don't see it happening today or tomorrow. Hopefully soon when we least expect it...

[Rome M]

Ooops.... My bad, the sand will do that to you

[drox]

The IMF can exercise “firm surveillance” but it cannot compel a country to change its exchange

rate. Nor can it order commercial foreign exchange dealers to change the prices at which they

trade currencies. It can offer economic advice and discuss how changes in countries’ exchange

rates might be in their own interest. It can also provide a forum, such as its new multilateral

consultation mechanism or discussion on the IMF executive board, where other countries can

urge a country to change its exchange rate procedures. However, in the end, the authority to make

the change resides with the country alone.

Thanks JMW! Great article. I think we are speaking the same language really. I get that the IMF can't force Iraq to RV at a certain exchange rate or at a certain time. That is important to debunk posters that use that so recklessly. However, the point I am trying to make is that we should not deny how important the role is of the IMF in the monetary decisions being made in Iraq. The IMF might not say this rate at this time but... they surely could say, we have done all the research on where your exchange rate should be and you should trade in ______ range. IMF further saying, If you place the rate above or below this range, we are going to let the members know we are not in agreement and feel it creates an unfair advantage for you and a disadvantage to the members.

If you were a member of a club that had certain rules to be a part of that club... You are going to follow them or get kicked out. Especially when all of the other members are: powerful, your competition, and your clients all rolled into one. They must trade with these countries and the IMF provides at least the illusion that every member agrees to play fair for the survival of the overall game (world markets). The IMF is a pointy object in Iraq's back pocket and every time Iraq tries to sit down it pokes them in the cheek. Don't underestimate the SDR's power either. When Iraq becomes extremely wealthy and secure again, they will likely be a prime SDR investor in my opinion. Part of the diversification of it's reserves and recognition of one of the big boys at the international table.

Edited January 9, 2011 by drox

[tobias1995bmw]

once you take a loan from the imf, they can force the issue, check india.......

and i agree pd is almost worse than tk, thy had no contacts and when they started there own site now they are best friends with george bush.......

Your intel is horrible in my opinion but everyone's intel is bad. Get off your high horse we need to work as a team and stay positive rather than bash others who have some intel. Grow up you are a mod.

[jmw]

Thanks JMW! Great article. I think we are speaking the same language really. I get that the IMF can't force Iraq to RV at a certain exchange rate or at a certain time. That is important to debunk posters that use that so recklessly. However, the point I am trying to make is that we should not deny how important the role is of the IMF in the monetary decisions being made in Iraq. The IMF might not say this rate at this time but... they surely could say, we have done all the research on where your exchange rate should be and you should trade in ______ range. IMF further saying, If you place the rate above or below this range, we are going to let the members know we are not in agreement and feel it creates an unfair advantage for you and a disadvantage to the members.

If you were a member of a club that had certain rules to be a part of that club... You are going to follow them or get kicked out. Especially when all of the other members are: powerful, your competition, and your clients all rolled into one. They must trade with these countries and the IMF provides at least the illusion that every member agrees to play fair for the survival of the overall game (world markets). The IMF is a pointy object in Iraq's back pocket and every time Iraq tries to sit down it pokes them in the cheek. Don't underestimate the SDR's power either. When Iraq becomes extremely wealthy and secure again, they will likely be a prime SDR investor in my opinion. Part of the diversification of it's reserves and recognition of one of the big boys at the international table.

Your right Drox...I think we are as well....I think the IMF can influence them but I'm thinking they would try to keep them from revaluing their currency that high...might cause more problems (as you have pointed out in the past) than it would help....I thought you might have gotten off track a little because you were distracted by Tiffany23!

Edited January 10, 2011 by jmw

[***ucme1stnow***]

Your intel is horrible in my opinion but everyone's intel is bad. Get off your high horse we need to work as a team and stay positive rather than bash others who have some intel. Grow up you are a mod.

very bad move dissin on sonny1 or any other mod round here,,u need to leave

[JBDinar]

I listened to the call and it gave me some hope, for sure.

Maybe all I'll get out of this whole thing is a few nights of sleep believing I will not be poor all my life.

Maybe I paid for false hope. Oh well, I ain't getting it anywhere else...

[tobias1995bmw]

very bad move dissin on sonny1 or any other mod round here,,u need to leave

Well sonny should maybe act like an adult and stop pointing fingers at other sites just because he didn't get as good intel as they did. just my opinion. we all need to stay as positive and work together. too much jealousy between sites I can see.

[tjmunson]

I just can't fathom how the people that post these lies expect to have any credibility. As far as I am concerned, anyone connected with this is a liar and a pumper. I don't care who you are or what your connections are. If the shoe fits.