"Foundational Understanding" - Mon. PM KTFA Thoughts/News 12/31/18

by **Ssmith** Tue Jan 01, 2019 11:14 am

KTFA

Sunkissed » December 31st, 2018

CURRENCY AUCTIONS - Just a reminder and foundational understanding in my opinion:

Yesterday I posted that in my opinion the initiating of licensed Brokerages to buy and sell the dinar post RI, would terminate the Currency Auctions as they are presently functioning. My reasoning was because they would be unnecessary as the use of brokerage firms would be the simplest conversion for the IQD to any other global currency.

Perhaps there is a little misunderstanding of the differences, between the two financial mechanisms of the Currency Auctions and using Brokerage Firms and other instruments to manage the value of the IQD, such as Treasury Bonds — POST RI.

One valuable note before I go further: As I recall, the cessation of the Currency Auctions will be the last event to occur, just before the RI.

Let me explain my present understanding of the Currency Auctions in Iraq:

Buyers can falsify their transaction receipts. Why would they do this? To be able to buy MORE USD than their business legitimately allows them to hold.

Buyers smuggling the USD across the border into Iran (which obviously has a shortage of USD due to sanctions)

Money Laundering and (underground) Black Market transactions

These abuses caused the USD to decline in value (as we all recall) - thus the Currency Auctions enable corruption of the Iraqi Dinar and the US Dollar.~ Sunkissed

Don961 » December 31st, 2018

Deputy Speaker stresses "in the light of changes" the application of Article 140

Twilight News

2 hours ago

The Vice-President of the Iraqi Council of Representatives Bashir Haddad participated in a seminar organized by the Center for Studies, which was under the title (the future of relations between Baghdad and the Kurdistan Region in the light of changes) to Mohamed Hammondi, and attended by a number of parliamentarians, intellectuals and politicians at the headquarters of the Union of Kurdistan Parliamentarians in Erbil .

The Deputy Speaker of the House of Representatives during a speech at the symposium on the need to work to implement the paragraphs of Article 140 in the Iraqi Constitution and secure financial dues for the Kurdistan Region and all Iraqi provinces, taking into account the proportion of the disadvantaged and the need for reconstruction and services in the budget.

He stressed the need to abide by the Constitution in resolving all problems between the federal government and the Kurdistan Region. link

Trump and praise for the strategic ally Sistani

Monday 31 December 2018

Salah al - Obeidi

The visit of Trump, which took its outlet from the media and the alleged statements from here and there and accompanied by a statement from him Atramb and praise and thanks to the reference Najaf, Sistani confirms that there is a secret visit and a secret meeting with the parties as was the military ruler Paul Bremer and Defense Secretary at the time Rumsfeld,

Monday that Sistani is a strategic ally with the Americans and it facilitated them many difficulties in entering Iraq and occupation and without any material or human losses and the fatwa that they call moderate, which served them and facilitated their task in the occupation, where he considered them friendly and liberal forces and they came The suppression of the former regime and its goal is to spread freedom and form a democratic government with the sons of Iraq

and followed by the support of the Governing Council established by the military ruler and the subsequent governments and Dstora live woes where the division and the fight and displacement and the destruction of cities in full and Iraq lost sovereignty and on this matter they paid him $ 200 million Note that the office of Sistani

US government praises Sistani link

Samson » December 31st, 2018

What did Abadi say about 2018?

The President of the coalition of victory Haider Abadi, said that "the year 2018 is the year to stabilize the pillars of the state after the achievement of the great victory over the preacher.

"I congratulate the Iraqi people on the occasion of the new year 2019 and hope that it will be a year of joys, miracles and realization of the aspirations of citizens to rebuild and provide services and jobs and maintain security and stability," Abadi said in a statement received by the agency All Iraq.

He stressed that "2018 was the year of consolidation of the pillars of the state after the great victory over gangs advocated the end of 2017 and the peaceful exchange of power has been achieved where they still hope that the current government to maintain the achievements in the field of land liberation and security stability and the prestige of our heroic forces. The development of the economy, the rejection of sectarianism, the unification of the country and progress in the areas of reconstruction, provision of services and employment opportunities, and the completion of the return of displaced persons and other demands of our people."

"The experience of Iraq over the past four years has been a real success story that Iraqis are proud of and the world has praised and these successes should continue in all areas away from the troubled beginnings and hope that this year will be a" complete accomplishment "and a new victory for Iraqis who deserve to do all We can achieve their aspirations after they have patience, bear, fight and make sacrifices for their country."

"We renew our congratulations to all Iraqis and pledge that we will support them in their demands and what they hope for and wish them a year of good, peace, love and harmony for all Iraqis." LINK

Hammy14 » December 31st, 2018

MM, I love your analysis here and your thought process. LINK However, I have a question concerning your opinion on the true value rate of over $6.00. As I recall, WS (walkingstick) gave us the formula from the Arab Monetary Fund (AMF) and the Arab Accounting Dinar (AAD).

He told us at that time that the IQD was slated to go into a basket of currencies, and the value of it could not be higher than the AAD. As you know, according to the formula WS gave, the AAD equals the SDR rate x 3 which would give the IQD a maximum value of around $4.25 in the basket.

With that said, I am guessing that you feel the IQD will not be in the basket initially, and the demand will be such that trading on Forex either has or will cause the value to reach levels you describe in your post. If I am off base here, please correct me, and/or feel free to add to what I just wrote. Thanks for all your input.

MilitiaMan » December 31st, 2018

WS did I believe say that as you point out, as have I in the past. He may very well be spot on his opinion, as his record of things over the years has been a driving force for me here, probably like yourself. I however, I have the opinion that "The longer it takes the more money we make."

With that said, my assessment that I have posted at least three times now on what Alak from the CBI has told us in regard to loans. His interview spoke of them recently, both the bad and good. He pointed out in the interview that the bad loans were worth $5,000,000,00.

So if you'll go back and re read the interviews and glean what are in the previous posts you'll see that if you take what Alak says, then drop the zeros and do the math. It comes out in the range well over the AAD.

Which by the way, to determine the AAD we used the loans they publish, to ascertain the $4.25. Just as we used the IMF / SDR 3x.. Depending on which rate one uses the daily or monthly rate per the IMF SDR, one my find $4.20 + - up to $5.85... imo..

So, I don't know if they can't come out higher than the AAD or SDR for a fact, I do trust Walkingstick, however, I do believe Alak is the one that has the purse strings at that CBI..

So, we watch and wait. It very well may be an AAD rate and then climb later on.. Then again, Iraq has told us they doubled their oil reserves and are finally going to impose taxes and tariffs, claw back assets, liquid natural gas sales, minerals, etc.., therefore all would appear to support higher values now than in the past. imo... ~ MM