Wednesday, March 2, 2011

3-2-11 Recap of the day's event's/postings

Facts:
1.       CBI auction results

Rumors:
Of Interest (rumors that I find of particular interest either because of who said it or because of how I think it relates to what is happening right now):

The Rest (doesn’t mean these are not happening):
1.       None

Where Are We At?
1.       In government formation news today,  Allawi said he will not participate in the national council and that his decision is final.  In other news, it was reported that Allawi asked Maliki for a new round of negotiations regarding the security ministries.  However, this news is somewhat offset by other news where it was reported that The List and the state of law are not in agreement over where the vote for the forming the National Council should be held.  The news also reported a difference between the two parties on the decision of de-Bathification in the election of the presidency.  The state of law wants to abolish the decision while The List wants to implement the decisions before the formation of the new government.  In other news, it was reported by someone close to Allawi that Maliki and his office are dragging their heels on the legislation related to the National Council.  However, a member of the Liberal bloc of the Sadrist movement brought up Sistani’s statement where he says the government should not develop non-essentional positions, including Allawi’s National Council.  The president of the Islamic Supreme Council, al-Hakim met with Allawi and discussed the necessity of activating the agreements concluded by the political parties, national partnerships, and the demands of the people.  In other related news, an MP said there is a real crisis between all parties as well as within each party because there is conflict and conflicting views causing confusion.  The confusion is that most of the blocs are facing a situation where there is a dual between participation of power and the demands of the streets.  The article mentioned that Allawi was warned not to implicate himself in the Council because it has no powers
2.       In reform news, Parliament agreed to give Maliki the power to dismiss any minister who fails to perform their duties.  Also, Parliament today agreed to approve the implementation of foreign companies to assist with infrastructure projects costing $70 billion.  It was said that earlier Parliament denied the request in their previous session, but today they approved it.  In other news, Maliki spoke of the government’s responsibility in rebuilding and reconstructions, and in meeting the demands of the citizens
3.       Regarding the Arab summit, it was reported that it will be postponed until May
4.       Concerning the investment law, a member of the economic investment commission said the investment law in force is good, but has problems related to its implementation and how it deals with investors.  The problems were reported as being related to security and administrative corruption as well as the administrative system
5.       In other news, parliament will meet this Saturday to discuss a range of political issues and parliamentary elections
6.       Concerning rumors, Frank asserted that Maliki gave the green light to Shabibi, who is supposed to start the currency and economic reform ASAP.  He says there is no way they can release 30% of the budget to the ministers with the 1170 rate.  He also talked about inflation jumping up and suggested that an RV rate of $3+ would help.  Med suggested that news these days is boring.  He said that Iraq seems to be sitting around waiting for a miracle and that their main problem is that they don’t have qualified people running the government. He doesn’t see why they are holding up the RV

What’s left?
1.    Vote on the budget – Done!
2.    Closure on Security positions (3 in total)
3.    Formal announcement of government
4.    Agreement on outstanding Kuwait issues (I believe this is done)
5.    Lifting of remaining Chapter 7 sanctions (Kuwait related)
6.    RV/RI
7.    HCL

Important Dates
1.      February 17 – GCC Meeting (no news of this yet)
2.      February 20 – Vote on the budget – Done!
3.      February (sometime after the budget is voted on) – Parliament votes on the National Council of Supreme policies 
4.      February 25  -- Large demonstration
5.      February 28 – Constitutional deadline to form government; did not happen, unless it already happened and wasn’t made public
6.      March 1 – Budget becomes effective retro to 1/1/2011
7.      March 5 – Maliki may hand over the 3 security ministry candidates and Parliament may vote on them
8.      March 29-30 – Arab Summit
9.      May 1 – CBI must have transfer DFI monies
10.  May 22 – Presidential order 13303 expires
11.  June 30 – DFI expires

What’s It All Mean?
1.       On the subject of Allawi stepping out, I find it interesting that a search about this news consistently brings up the same article with the exact same text.  Perhaps only one article was distributed from one news agency and everyone is just reposting that news?  Rather odd to me.  In any case, there are undoubtedly numerous possibilities as to what can happen at this point.  A few that come to mind are: 1) Allawi backs out and the List chooses another person; 2) Maliki’s government crumbles because there is not enough support in Parliament.  Parliament issues a vote of no confidence and they start over; 3) Maliki and his camp leverages Sistani’s statements about Allawi’s National Council being non-essential and eliminates it altogether and carries on running the government in his current capacity; 4) This move by Allawi is just like all his others … it’s not real and he’ll return possibly due to outside pressure (i.e., the UN just announced all parties need to participate in the government).  Given Allawi’s record, I’ll opt for 4 first.  If that fails, then my pick is 3.  Given where things stand with the unrest in the Middle East, I don’t think anyone, including the Iraqi government, could stomach seeing their government crumble and having to start over again.  The Iraqi people wouldn’t stand for and we can probably guess what would happen if they felt it would take another year or more for a government to be formed while their basic needs go unmet.  Actually, I think that’s all I want to say about the government formation tonight!  The rest of the related news  wasn’t too positive and tonight I don’t feel like discussing what’s been in the news about the Maliki and Allawi over and over again!  There’s nothing new there
2.       Parliament meets this Saturday and one of the items on the agenda is parliamentary elections.  They say they are to discuss parliamentary elections.  However, Maliki is supposed to hand over the 3 security ministries in the next Parliamentary meeting and Parliament is supposed to vote.  So, will they be discussing parliamentary elections, or will they be voting?  Perhaps a discussion of parliamentary elections is related to the early elections?  I’m hoping for a vote!
3.       In regards to rumors, I spoke too soon this morning when I said I agreed with Med that news was boring.  Today was somewhat of a weird news day, but it wasn’t boring!  Allawi’s news sure did throw things off for me.  But, I’m hoping it all works out in the end despite that news.  My belief is that Allawi is not a good leader and that Iraq is probably better off without him.  He travels too much, doesn’t fight hard enough, and quits too easily.  I sure wouldn’t want a leader like that.  Maliki isn’t my favorite guy, but he’s shrewd and if Allawi did throw in the towel, Maliki sure did play his cards right….right up to the end just the way he may have foreseen it playing out if he just withheld on forming the government.  In any case, I’m hoping that Frank’s information is correct and that the RV has been set in motion.  If true, it could mean that we see the RV in a matter of days, but most likely after the vote on the 3 ministries

3-2-11 Email - Desperate People Need Not Apply

Highlights/Thoughts
PLEASE IGNORE IF YOU DO NOT WANT TO READ OPINIONS

This was emailed to me by a reader of this site. I'm posting this to share this person's opinion of this investment. I personally value all information and all opinions/perspectives. Some may see this as negative and some may not. As always, how you choose to take this in is up to you.

***********************************************************
Desperate People Need Not Apply

I am only an investor in the IQD. I am not an intel specialist nor a date/rate guru. I am not a dinar historian or an Arabic-newspaper researcher. My friends who were serving in Iraq have come home or re-deployed in other parts of the Middle-east. I did research the legitimacy of the Dinar as a currency and legitimate speculative investment. I invested with the idea of funding a venture-capital endeavor or a penny-stock company made public. Either of these approaches, in most cases, are done with vast expectation of all funds being lost. The hope is that one of the ventures or companies with actually make it and pay off on the ratio of dollars for cents.

My opinion in reading the majority of posts in the past year that many, many desperate people have purchased the dinar. Desperate people say and do, desperate things. Desperation develops fantasy often not seen by self. Mirages become reality. Obsession pushes rationality and reality out the actuality door.

It appears those who have created the hype are building more desperation. It is not deliberate, but it is equally as damaging. The claims that if XYZ occurs, then MNO will happen. What, if anything do we really now about Iraq? Few of us served or lived there and even if we did for years, what of the culture, mindset and world-view do we know and understand of this vastly fragmented society? What do we factually understand? Do we really and truly have a cross-cultural Arab-Iraq Shiite, Sunni and Kurd mindset?

My opinion is Iraq is still many months away from being able to socially be able to handle a large escalation of the value of its currency. Would you hand a stack of $100 dollar bills to a 7 year old? So why would the world agencies like the UN, IMF, or WorldBAnk hand trillions to a 7 year old weak country?

I think Iraq will eventually grow and grow strong. It may develop to be the construction site of the world with investment. That is what drew my money to invest but not with any desperation. Telling you to relax does nothing to a desperate individual. My suggestion, if you cannot stop checking for information about a revaluation every day, that you sell your dinar and walk away. This is not the investment for you. It is your enemy of personal destruction.

For the non-desperate speculator, I hope to see you at an eventual finish line.

Sincerely,

Clearthinkr7

3-2-11 Ex-Iraq PM backs out of chairing key body (AFP)

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. Allawi said on television that he will not participate in the national council and that his decision is final
2. He said that the List can choose another person instead of him
3. He attributed his decision to the lack of the implementation of the national partnership agreement

3-2-11 Maliki: Everyone must respect the election; Continue the process of construction and reconstruction.

Highlights/Thoughts
Click on the title of this posting to get to the details of this posting

1. Maliki said that everyone should respect the elections
2. He told the independent bodies that what is happening in Iraq is different from what is happening in the world (Arab world) because what is required for change there does not exist in their country
3. He said it doesn't exist because the political process in Iraq came through elections and that the elections represent the will of the people
4. He said that they are working on reforms and meeting the needs of the citizens, which is their task and responsibility
5. He added they have serious work of building and reconstruction and could do that in the past due to the security situation
6. He explained that they should address all national responsibilities, legitimacy, humanity, and continue the process of construction and reconstruction
7. He said the independent bodies would be covered by the system for 100 days and their work is in the interest of the people and their needs
8. He added that the Council of Ministers are connected to a number of projects related to the private sector companies and the provision of facilities in the area of investment as well as completing a deal with the issue of the ration card and electricity

Maliki tied the people's will to the elections?! He must have forgotten that the people voted for Allawi for the PM spot! Ginko Maliki....lots of it.

3-2-11 Saturday meeting of the Presidency of the parliament and the heads of blocs

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. A parliamentary source said the Presidency will hold a meeting on Saturday with the heads of political blocs to discuss a range of political issues and parliamentary elections
2. The source said they would discuss the subject of protests and a number of parliamentary topics

3-2-11 Allawi advised to refuse the presidency of the Council’s strategic

Highlights/Thoughts
Click on the title of this posting to get the details of this posting on TCN

1. An MP said there is a state of confusion in terms of procedures and decisions among all political blocs
2. He said the cause of confusion is that most of the blocs are facing a situation where there is a dual between participation of power and the demands of the street
3. Along with the confusion, there is political hypocrisy accompanied by a review of blocs and alliances that change like sand dunes moving from one place to another
4. He said the state of confusion lead us to the following question, "What is the position of the group within the List on the National Council for the strategic policies?"
5. He said he warned Allawi earlier not to implicate himself in this Council because it has no powers
6. He added that the Kurdistan Alliance and the Sadrists movement are also in a state of confusion
7. He concluded that they now live in a real political crisis between all parties with each other, and within the parties there is conflict and conflicting views

3-2-11 Allawi, Hakim and agree to activate the agreements concluded by the political parties

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. In a joint news conference, al-Hakim said that he discussed with Allawi the latest political developments, the security ministries, , the National Political Council, and the needs of the citizens as it relates to services they desire to have
2. They discussed the necessity of activating the agreements concluded by the political parties, national partnership, and the demands of the people
3. Allawi discussed his efforts to deepen the partnership agreement related to the National Council and its provisions
4. He noted what has been agreed upon and that there will be a genuine partnership on performing the obligations to the people to support their demands

3-2-11 Abdul Hussain Abtan: There are problems in the implementation of the investment law in Iraq

Highlights/Thoughts
Click on the title of this posting to get the details of this posting on

1. A member of the economic and investment commission said there is a problem in the implementation of the investment law
2. He said the investment law in force is good, but the problem is related to its implementation and how to deal with the investor
3. He pointed out there are multiple ways and great care should be carried out by the authority of the state or government to attract investors
4. He also said that the investment in Iraq are subject to security and administrative corruption as well as the administrative system all of which Iraq is still suffering from problems right now
5. He said Iraq needs the will and the integration and harmonization of the public network responsible for the investment sector to promote it better
6. A member of the commission of economy and investment said Iraq doesn't do a good job on the subject of investments. Today, they leave a lot of investments to the governorates, but they don't track the investment projects well
7. The head of the national investment expressed the readiness of the commission to grant all facilities and privileges guaranteed by the investment law for investors who wish to work in Iraq
8. He noted that the Iraqi market is a promising and fertile environment for investments and the Iraqi private sector needs the experience of large companies in various economic sectors

3-2-11 Maliki's response confirms the Parliament for the implementation of foreign companies to the infrastructure project $ 70 billion

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. Maliki confirms that Parliament approved of the implementation of foreign companies to assist with infrastructure projects costing $70 bil
2. He said that Parliament rejected the project in the previous session, but today they agreed
3. He said the companies are present and expressed their readiness to implement the projects
4. Maliki said the Cabinet is moving towards abolishing the housing percentage imposed on housing. He said the Council of Ministers will have the final decision on this
5. The remainder of the article provides historical reference to the GOI's responses to the recent demonstrations

3-2-11 Med Chat 05:56am est 03-02-11

Highlights/Thoughts
PLEASE IGNORE IF YOU DO NOT WANT TO READ RUMORS/OPINIONS

Click on the title of this posting to get the details of this posting on

1. Med looked at the news this morning and finds it boring
2. He says it seems as if they are sitting around waiting for a miracle to pop up to address the new issues, which are really old issues
3. The main issue is that they do not have the best people involved
4. Positions were filled by quota, and that's not good
5. Most of their politicians have no clue or background to handle the ministries
6. Outside the blocs, however, professional from universities and other sections could make an impact within 100 days or less
7. Nothing tangible has come out of Parliament to address the protesters
8. The rhetoric on giving up benefits is just window dressing
9. Iraq needs to ask for outside help to setup programs that can give them a point to start at
10. Med can't see now why they are holding up the RV as he suggests it will boost the economy

I'm glad I'm not the only one that thinks news is boring these days!

3-2-11 Arabs postpone summit until May-Al Arabiya

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. Al Arabiya television reported that the summit in Baghdad is postponed until May

3-2-11 Frank26 post from yesterday

Highlights/Thoughts
PLEASE IGNORE IF YOU DO NOT WANT TO READ RUMORS/OPINIONS

Click on the title of this posting to get the details of this posting on

1. Frank will show that Maliki gave Shabibi the green light
2. He also will show that when Maliki said to start the economic and currency reform to Shabibi asap, it was started yesterday
3. He will also discuss what Shabibi is doing right now
4. Last October, Shabibi told Maliki show me the GOI and I will show you a new rate for the IQd
5. Without a better rate than 1170 there is no way 30% of the budget can be taken immediately as planned to be given to the ministers of the cabinet to implement their projects
6. The projects are what will rebuild the country and allow jobs for the citizens
7. The budget was ratified and approved recently
8. His team has evidence there is a complete GOI
9. Maliki keeps using the same excuse about the 3 ministers to keep his GOI camouflaged
10. Why hasn't Shabibi given Maliki the rate? Their opinion ...
11. Shabibi is adjusting the rate within the budget
12. It is not his job to implement the budget but to give Maliki a rate
13. They strongly feel that Shabibi is adjusting the 1170 to a higher rate that will improve the chances of the 30% being succesful from their budget
14. Many budgets await Iraq's budget
15. Frank offers no proof and does not present this as fact, but the USA's budget was given a 2 week extension yesterday
16. Shabibi has done a great job of lifting the zeros and controlling inflation
17. High inflation could reverse his progress
18. Last month core inflation in Iraq jumped from 3% to 5.26% and the overall average is 5.84%
19. Frank suggests a rate of 3+ would help
20. The budget is in limbo waiting for something
21. The other thing that is waiting is the 15,000 IQDs that were supposed to be given to each citizen
22. They were not delivered when they were supposed to be delivered
23. The GOI's budget needs money ASAP because if it does not happen, then there will be no 30% distribution to the ministers from the budget
24. All ministers are waiting for something and they can't count on the US anymore
25. The US stopped spoon feeding them last year

3-2-11 Maysoon al-: al-Maliki and his advisors and the law of the National Council of dragging their heels

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. Someone close to Allawi confirmed that Maliki and his office are dragging their heels on the legislation of the National Council
2. The tripartite commission completed its work and settled all the political differences on the National Council, and it was agreed the vote on the Council President would be outside parliament
3. Damluji said in a statement that she felt Maliki cheated the List in his desire to grab power away from them
4. The MP from the List said that the current government is not able to meet the national partnership
5. A member from the Liberal bloc of the Sadrist movement, on the other hand, brought up Sistani's statement about not developing non-essential positions, including the National Council. He also acknowledged the agreements from Erbil

I know this news doesn't sound good, but the question is whether this must be resolved prior to the RV. Must the National Council be completed before they can seat their government? I don't think it does, but that's my opinion. If you agree with that, then Allawi and Maliki can hash things out for as long as necessary. We then just need to watch for the 3 security ministers to be filled. At this point, Shabibi may consider the government complete.

3-2-11 Parliament Set to Approve Law Granting PM Authority to Dismiss Incompetent Ministers

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. A National Coalition deputy said that parliament is set to pass a law that grants Maliki the right to dismiss any minister who fails to perform his/her duties
2. He said he majority of the blocs have decided to approve Maliki's request if it was regulated within law
3. He said that the dismissal of incompetent ministers must be done on a legal basis and following the 100 day deadline specified by Maliki to assess the performance of each minister and official in government
4. On Sunday Maliki gave his ministers the 100 ay ultimatum to establish reforms or face dismissal
5. In an official statement Maliki warned his cabinet to shape up or face changes
6. The deputy said that Maliki is not the only person responsible for the failure to implement projects. He said all officials in the state are responsible for that

News of Maliki meeting with he independent chairpersons to discuss the 100 day evaluation

3-2-11 Iraq’s major blocks still argue over shaping country’s politics

Highlights/Thoughts
Click on the title of this posting to get the details of this posting on TCN

1. The List confirmed its intention to form a National Council for the strategic policies, but the state of law coalition refused the List's proposal to vote on forming the council in parliament
2. On the 29t of December, Allawi announced the law of the National Council of policies was completed and would be submitted to parliament for voting at its next meeting after resolving differences with the National Coalition, and he indicated the Council will begin it work in February while confirming that he would have the same legal powers as Maliki
3. The List revealed a document signed by Barzani and Maliiki
4. The document states Maliki's position on the decision of de-Bathification in the election of the presidency of the parliament session, which was to abolish the decision
5. The leaders on the List stressed the need to implement the decisions before the formation of the new government, which must not take more than one month according to the Constitution

#5 is interesting. Why is it that they constantly are allowed to circumvent their Constitution?! Sure does make it difficult to determine when something is going to get done when you can't count on them following the Constitutional deadlines!

3-2-11 Allawi calls on Maliki to the new round of negotiations

Highlights/Thoughts
Click on the title of this posting to get the details of this article

1. Allawi and Maliki agreed to a new round of negotiations to discuss the security ministries
2. The meeting is scheduled to take place at the beginning of next week

3-2-11 CBI auction results

Currency Auctions

Announcement No. (1846)

The latest daily currency auction was held in the Central Bank of Iraq on the 2-MAR-2011. The results were as follows:
DETAILSNOTES
Number of banks20
Auction price selling dinar / US$1170
Auction price buying dinar / US$-----
Amount sold at auction price (US$)165,608,000
Amount purchased at Auction price (US$)-----
Total offers for buying (US$)165,608,000
Total offers for selling (US$)-----
Dollar's exchange rates / in Baghdad markets