July Update (ICW)

Hello again, and happy July 4th.  As we celebrate the 240th anniversary of our independence from England I am also celebrating the 5th anniversary of my independence from the gurus.  You see, it was their failed predictions of an RV in June of 2011 that prompted me to research the dinar for myself which is why I am here today. Hopefully Marcus and I will be able to help more dinarians to gain their independence as well.

As I’m sure you noticed, the dinar went nowhere in June.  That’s because the CBI (Central Bank of Iraq for the newbies) didn’t want it to.  They may have no choice before long, however.  The lower oil prices and the cost of fighting ISIS (not to mention the drop in dinar sales which was their #2 export) has brought about an economic crunch in the country, which could drive the dinar’s value down even further.  Look for another drop by the end of the year to around 1190:1

https://iraqcurrencywatch.com/2016/07/04/july-update/

IQD will remain weak until CBI decides to redenominate - moves to release certain notes are attempts to stall the inevitable.  We already know CBI consulted w Turkey on the mechanics of redenomination, as CBI wants to follow the framework of the Turkish Lira redenom (Shabbibi attended that meeting in 2013).

It behooves Iraq to maintain a significantly weak IQD for economic reasons (huge sovereign debts, trade imbalances).  Corruption and terrorism prevent even the most basic reform from taking root.  People saw Abadi as a savior; he is a puppet, pure and simple.  Citizens of Iraq can clearly see he is ineffective as a leader, and continue to protest over lack of the basic necessities of life.

There are dozens of examples where countries with massively overprinted/inflated currency (M1) have removed 0s.  Belarus is just the latest example.  There are exactly zero examples where countries have spiked value of their currency.  No - Kuwait, Weimar and China did not revalue thousands of % in value overnight.  Anyone telling you that is either parroting something they heard in the Land of Lying Gurus, or deliberately lying to you to rope you into buying physical currency.

Show me one guru with a deep background in global economics - that's right, none exist.