Billions Over Baghdad - New York Times

[coldwarvet]

Good post, Ana! Great historical context for what we're involved with now.

[tjmunson]

ABC 123

Folks, let's remember there are a lot of new investors and members to this site every week. When you read an article like this for the first time you feel like you just struck gold and it's as exciting as heck. Don't minimize the importance and excitement of this article just because you've read it before. Instead, remember back to the first time you read it and connect to the excitement you felt and share that with the first time readers.

Ana....great article and great post. Thanks for sharing it!!!

Peace

[Promentory]

Thanks for the post. Even if it is old, still enlightening to some.

[2fast4u2c]

Posted a while back but it still gives us peace.

[dog53]

Old stuff but good stuff.

GGOOOOOO RRRVVVVVVVV

[Sparky69]

I've been on this site awhile and this one was new to me!Not the concept just this particular article.So much gets posted here it is easy to miss something good if you have been away at all!

Thanks Ana,good one

Cheers,

Sparky

[R2d2dc]

Sometimes reading some of the information we have seen before can be comforting as we see so much information both true and false that it becomes mind boggeling. I for one love reading some of these older articles that made it all come together for me at one point.

Love it, Thanks for the post I appreciate your posting very much!!!

r2d2

[harleyrider1]

Thanks for posting Ana. I have never seen that article myself. Of course, I haven't been involved as long aas some on here. Good information as far as I am concerned. Thanks GWB and Cheney!!!

GO RV!!!!!!!

[speculatorsRIDE]

The entire article

EARLIER this month, the House Committee on Oversight and Government Reform held a hearing that criticized the decision to ship American currency into Iraq just after Saddam Hussein’s government fell. As the committee’s chairman, Henry Waxman of California, put it in his opening statement, “Who in their right mind would send 360 tons of cash into a war zone?” His criticism attracted wide attention, feeding antiwar sentiment and even providing material for comedians. But a careful investigation of the facts behind the currency shipment paints a far different picture.

The currency that was shipped into Iraq in the days after the fall of Saddam Hussein’s government was part of a successful financial operation that had been carefully planned months before the invasion. Its aims were to prevent a financial collapse in Iraq, put the financial system on a firm footing and pave the way for a new Iraqi currency. Contrary to the criticism that such currency shipments were ill advised or poorly monitored, this financial plan was carried out with precision and was a complete success.

The plan, which had two stages, was designed to work for Iraq’s cash economy, in which checks or electronic funds transfers were virtually unknown and shipments of tons of cash were commonplace.

In the first stage, the United States would pay Iraqi government employees and pensioners in American dollars. These were obtained from Saddam Hussein’s accounts in American banks, which were frozen after he attacked Kuwait in 1990 and amounted to about $1.7 billion. Since the dollar is a strong and reliable currency, paying in dollars would create financial stability until a new Iraqi governing body was established and could design a new currency. The second stage of the plan was to print a new Iraqi currency for which Iraqis could exchange their old dinars.

The final details of the plan were reviewed in the White House Situation Room by President Bush and the National Security Council on March 12, 2003. I attended that meeting. Treasury Secretary John Snow opened the presentation with a series of slides. “As soon as control over the Iraqi government is established,” the first slide read, we plan to “use United States dollars to pay civil servants and pensioners. Later, depending on the situation on the ground, we would decide about the new currency.” Another slide indicated that we could ship $100 million in small denominations to Baghdad on one week’s notice. President Bush approved the plan with the understanding that we would review the options for a new Iraqi currency later, when we knew the situation on the ground.

To carry out the first stage of the plan, President Bush issued an executive order on March 20, 2003, instructing United States banks to relinquish Mr. Hussein’s frozen dollars. From that money, 237.3 tons in $1, $5, $10 and $20 bills were sent to Iraq. During April, United States Treasury officials in Baghdad worked with the military and the Iraqi Finance Ministry officials — who had painstakingly kept the payroll records despite the looting of the ministry — to make sure the right people were paid. The Iraqis supplied extensive documentation of each recipient of a pension or paycheck. Treasury officials who watched over the payment process in Baghdad in those first few weeks reported a culture of good record keeping.

On April 29, Jay Garner, the retired lieutenant general who headed the reconstruction effort in Iraq at the time, reported to Washington that the payments had lifted the mood of people in Baghdad during those first few confusing days. Even more important, a collapse of the financial system was avoided.

This success paved the way for the second stage of the plan. In only a few months, 27 planeloads (in 747 jumbo jets) of new Iraqi currency were flown into Iraq from seven printing plants around the world. Armed convoys delivered the currency to 240 sites around the country. From there, it was distributed to 25 million Iraqis in exchange for their old dinars, which were then dyed, collected into trucks, shipped to incinerators and burned or simply buried.

The new currency proved to be very popular. It provided a sound underpinning for the financial system and remains strong, appreciating against the dollar even in the past few months. Hence, the second part of the currency plan was also a success.

The story of the currency plan is one of several that involved large sums of cash. For example, just before the war, Saddam Hussein stole $1 billion from the Iraqi central bank. American soldiers found that money in his palaces and shipped it to a base in Kuwait, where the United States Army’s 336th Finance Command kept it safe. To avoid any appearance of wrongdoing, American soldiers in Kuwait wore pocket-less shorts and T-shirts whenever they counted the money.

Later, American forces used the found cash to build schools and hospitals, and to repair roads and bridges. Gen. David Petraeus has described these projects as more successful than the broader reconstruction effort.

But that wasn’t the only source of dollars. Because the new Iraqi dinar was so popular, the central bank bought billions of United States dollars to keep it from appreciating too much. As a result, billions in cash accumulated in the vaults of the central bank. Later, with American help, the Iraqi central bank deposited these billions at the New York Federal Reserve Bank, where they could earn interest.

Finally, when Iraq started to earn dollars selling oil, the United States transferred the cash revenue to the Finance Ministry, where it was used to finance government operations, including salaries and reconstruction. Many of these transfers occurred in 2004, long after the financial stabilization operation had concluded. Iraqi Finance Ministry officials had already demonstrated that they were serious about keeping the controls they had in place. The 360 tons mentioned by Henry Waxman includes these transfers as well as the 237.3 tons shipped in 2003 in the stabilization.

One of the most successful and carefully planned operations of the war has been held up in this hearing for criticism and even ridicule. As these facts show, praise rather than ridicule is appropriate: praise for the brave experts in the United States Treasury who went to Iraq in April 2003 and established a working Finance Ministry and central bank, praise for the Iraqis in the Finance Ministry who carefully preserved payment records in the face of looting, praise for the American soldiers in the 336th Finance Command who safely kept found money, and yes, even praise for planning and follow-through back in the United States.

Edited May 14, 2011 by speculatorsRIDE

[RAGARCIA62]

nice find. very nice find. than you for the good news.

[M.D.]

Thanks for the post ana

[Ana]

I personally don't think it was all so altruistic on the part of Bush & Cheney. It got their footing deep into the oil. A plan way older tha GWB. Just follow the $$....ie Haliburton. It is a double edged sword!!!

Also did you know,,, the gov't has restrictions on newer car development. They are not allowed to make cars that get much better gas mileage, we all know they can.... WHY? ....because they need to keep using oil. Keep the price controlled & keep the world economy on track.

Cogs in the wheel.

They did do a good job getting it done & soon we will all be happier

[wicked93gs]

I personally don't think it was all so altruistic on the part of Bush & Cheney. It got their footing deep into the oil. A plan way older tha GWB. Just follow the $$....ie Haliburton. It is a double edged sword!!!

Also did you know,,, the gov't has restrictions on newer car development. They are not allowed to make cars that get much better gas mileage, we all know they can.... WHY? ....because they need to keep using oil. Keep the price controlled & keep the world economy on track.

Cogs in the wheel.

They did do a good job getting it done & soon we will all be happier

Being an ASE certified mechanic I have to call BS on the cars that get better gas mileage statement, at this point any gain in fuel economy is simply a refinement. The technology to get that better gas mileage comes at a prohibitive price. For instance in 2006 Chrysler, Mitsubishi and Hyundai entered into an alliance called GEMA...why did they this? To build a series of 3 different engines that had a 5% fuel economy gain over previous models....thats only 5 percent...for a car that gets 30mpg before this it now gets 31.5mpg, thats it, and to get to that level the total bill for this project was 57million dollars, because of such a high bill none of the 3 companies felt they could do it on thier own, so they banded together....3 engines, 5% better economy, 57 million dollars development costs, and you think car manufacturers can just magically make cars more effecient? Gasoline has only so much specific energy, there is only so much you can get out of it...but dont worry, for a 1 billion dollar investment that means you can increase efficiency 100%, do you have a billion to spend in development costs for technology that doesnt exist?

[BanG]

Ana +1! Thanks so much in 6yrs somehow I missed this one, Great find! Peace.

[oneremedy]

New to me as well. Thank you very much!

New to me as well. Thank you very much!

[Ana]

Being an ASE certified mechanic I have to call BS on the cars that get better gas mileage statement, at this point any gain in fuel economy is simply a refinement. The technology to get that better gas mileage comes at a prohibitive price. For instance in 2006 Chrysler, Mitsubishi and Hyundai entered into an alliance called GEMA...why did they this? To build a series of 3 different engines that had a 5% fuel economy gain over previous models....thats only 5 percent...for a car that gets 30mpg before this it now gets 31.5mpg, thats it, and to get to that level the total bill for this project was 57million dollars, because of such a high bill none of the 3 companies felt they could do it on thier own, so they banded together....3 engines, 5% better economy, 57 million dollars development costs, and you think car manufacturers can just magically make cars more effecient? Gasoline has only so much specific energy, there is only so much you can get out of it...but dont worry, for a 1 billion dollar investment that means you can increase efficiency 100%, do you have a billion to spend in development costs for technology that doesnt exist?

keep looking

Japan has a car that gets really good mileage (I forget how much) being released this year I think. There is a Japanese company making a car in Canada I believe, saw them on Yahoo news videos months ago

There's lots out there on you tube about Hydrogen cars :bulb:

http://youtu.be/oxLVES9fFwE

Also this link has a radio show with alot of scientific know how. People have been killed or threatened for this type of work.

The broadcast is long & touches on several issues, you can fast forward thru it.

http://www.project.nsearch.com/

Happy researching

Blessings upon us all

We can only go forward!!!!!

Ana

[Ultraviolet]

Thank you Ana, it was knew to me as I am a newbie and am reading everything I possibly can.

[Islandgirl7]

I've NOT seen it before so I thank you!!!! There is no way you can read every post, things like these need to be reposted for all to see who may have missed it the first, second, third time around..... Thank You!!!

[wicked93gs]

keep looking

Japan has a car that gets really good mileage (I forget how much) being released this year I think. There is a Japanese company making a car in Canada I believe, saw them on Yahoo news videos months ago

There's lots out there on you tube about Hydrogen cars :bulb:

http://youtu.be/oxLVES9fFwE

Also this link has a radio show with alot of scientific know how. People have been killed or threatened for this type of work.

The broadcast is long & touches on several issues, you can fast forward thru it.

http://www.project.nsearch.com/

Happy researching

Blessings upon us all

We can only go forward!!!!!

Ana

wont work, you will lose any car discussion with me...I assume you mean the Nissan leaf? thats an electric car...does not run on gasoline, completely different concept....now there are cars that can get 45-50mpg on a gasoline engine yes...but guess what? You end up with a car with no practical space(its all a compromise...35-40mpg is the best you can do with a car that is still practical, prove me wrong if you think a company can do better with a real article)...if you want better mileage get an electric car, gasoline is far from a perfect fuel,but is still the best overall bang for the buck, electric cars have their own problems(range is limited to not much more than 40-50 miles with current offerings, hills reduce that mileage significantly, etc)

as for hydrogen fuel cell cars...again nothing to do with better gas mileage(not to mention prohibitively expensive technology)

as for cars that run on water...thats BS, you have to seperate hydrogen from oxygen first

now there are hydrogen combustion engines...but guess what? you cant store enough fuel to get a decent range there either(a tank with a decent range would fill up the bed of a pickup truck)...besides its like driving around with a bomb strapped to your car...its an explosive gas!(gasoline in liquid state is not explosive)

believe me, I actually plan to build both a hydrogen combustion and an electric car...I have done very extensive research on both and know the limitations...neither is a replacement for gasoline...the best replacement for gasoline currently is ethanol...but we cant produce enough to run the nation(besides people get offended when they think of food being used to create fuel...even though the corn used to create ethanol is sub-par and wouldnt be fed to anyone anyway, besides which the remains can still be used as food stock for livestock)

in short, dont believe most of the fanciful car-tech you hear, there are limitations

[Ana]

Tata motors has several innovative cars but not available here in US I wouldn't mind this one

http://www.tatacarsworldwide.com/strides-apr11.pdf pg 45 also pg 41 for their Indica Vista

the first integrated human-machine interface (HMI) concept from Tata Motors for its new generation

programmes. „My Tata Connect‰ enables

seamless integration of the userÊs smartphone or

tablet with the vehicleÊs infotainment system and

also allows controlling of key functions of the car.

This provides a customised, user-friendly, all-inone

touch screen display, while also allowing

the driver to remain seamlessly connected to

the external world in much the same way as

they would be when at home or in the office,

listening to favourite songs, internet news

and sport or stock updates. In addition to

serving as the infotainment display when

docked in the instrument panel, the tablet

also allows temperature, ventilation and airconditioning

settings to be adjusted through its

touch screen, as well as displaying information

on the vehicleÊs performance.

A 1.2 litre three-cylinder turbocharged diesel

engine positioned at the rear of Tata Pixel gives

lively performance. The engine is a low-friction

design, featuring variable coolant and oil pump

and rapid warm-up technologies. With optimised

aerodynamic drag, low rolling-resistance tyres,

stop-start technology, and intelligent battery

charging, Tata Pixel returns European combined

cycle (NEDC) fuel economy of 3.4 litres/100km This is less than 1 gallon /62 miles!

and CO2 emissions of just 89g/km. £

Strides 45

APRIL 2011

CROSSWORD

[VARusso]

Fri, May 13, 2011 11:43:34 AM

I received this in an email today. Very interesting

Subject: Billions Over Baghdad - New York Times http://www.nytimes.c...n/27taylor.html Hello again folks, If U don't presently have a copy of the above article from the NY TIMES, written by Stanford graduate and former Under Sec. of the Treas., John B. Taylor, in Feb. 2007, please print one now and read it over and over, every time U may wonder if this RV is for real or not. Share it w/ others who may think you and we are all nuts, like CA Sen. Henry Waxman said on the Senate floor. As far as I'm concerned, it's the most concise explanation of how this plan was conceived by Cheney & Greenspan and then put into action before the first shot was ever fired in the Iraqi War. It also gives credibility to GWB when he expressed many times as to how this war would pay for itself, namely OIL. Iraqi oil at less than $33/bbl coming to the USA. This new Iraqi currency that was shipped & also flown by - get this: 27 747's into Iraq right during the war - is the very SAME dinar that we all presently hold awaiting the Re-Valuation. Just think about this: We are part of history being made, folks! And we will be made wealthy beyond our wildest dreams for so doing. So may I encourage you all to be patient. If we were any closer we'd be WET! Jim

Thjis is way I'm in this tile the end....

[emmet]

Being an ASE certified mechanic I have to call BS on the cars that get better gas mileage statement, at this point any gain in fuel economy is simply a refinement. The technology to get that better gas mileage comes at a prohibitive price. For instance in 2006 Chrysler, Mitsubishi and Hyundai entered into an alliance called GEMA...why did they this? To build a series of 3 different engines that had a 5% fuel economy gain over previous models....thats only 5 percent...for a car that gets 30mpg before this it now gets 31.5mpg, thats it, and to get to that level the total bill for this project was 57million dollars, because of such a high bill none of the 3 companies felt they could do it on thier own, so they banded together....3 engines, 5% better economy, 57 million dollars development costs, and you think car manufacturers can just magically make cars more effecient? Gasoline has only so much specific energy, there is only so much you can get out of it...but dont worry, for a 1 billion dollar investment that means you can increase efficiency 100%, do you have a billion to spend in development costs for technology that doesnt exist?

Yeah sure more mileage just can not be attained according to you. Japan put together a nice little package about 10 years ago call Prius, now getting around 50 miles to the gallon. I believe this is just the start with better mileage to come.