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Monday, August 3, 2015

Mnt Goat Monday Update Post - “Its Monday already and the Saga Continues…”  Part 2 or 2

Now that you know more about the tariffs than most let review what impact this may have on the RV.

First let me say now that you know (it has been confirmed) that the government did in fact impose these new custom and tariffs on August 1st as they announced they would. 

Secondly let me say they must be enacted and implemented by each individual providence. Remember it is now a decentralized government down to the provincial level much like the USA and statehood.

The providences already stated (weeks ago) they will need additional funding in order to do so. Most have not yet received this funding so how will they abide by the new law?

Thirdly, the other issue is also the citizens themselves. Heavy crowds gathered in protest of these new taxes when implemented. This I am hearing is minimal impact since they already have the RV rate in payments on their cards for July and will get the same for August soon. So anyone telling you this is causing extreme pressure to RV is totally incorrect. Remember you can never please everyone and so there will always be a group of citizens apposing any new taxes, even if beneficial for Iraqi’s economy.
So I am hearing the rollout of these new taxes is slow and so far the impact is MINIMAL thus the pressure to RV is minimal impact also, but only for now. 

Article Ends

So did you read these 4 articles?

So having read them now ask yourself this question- Why no RV as of yet? We know they need it for the implementation of the tariffs.

IT IS BECAUSE THE TARIFFS ARE IMPLEMENTED TOO EARLY!
They implemented the tariffs based on a plan to complete other needed events on a timeline but this did not happen. Oh but what are these needed events?

THEY ARE THE NEEDED LAWS TO ENACT TO COMPLETE THE RECONCILIATION EFFORT !
They need to complete this so they could RV their currency prior to the tariff implementation. This obviously did not happen. Since they pulled the plug on the tariffs now twice already they were not going to do it again. Can they delay the RV much longer due to the tariffs? Will the WTO now put pressure on the USA to compromise somewhat and let the RV go?

This was a strategic decision from Abadi from pressure from the WTO and in return he is putting more pressure on parliament. This very evident from these recent articles. Parliament needs  to get their butts moving  to enact these needed laws to conclude this reconciliation process to satisfaction, as agreed to a year ago. Did I mention the Maliki element and influence from the Dowa party. So you also have this negative element blocking progress where they can.

People I am telling you Abadi is a brilliant politician. He is playing a game of chess and trying to move the pieces around the board. As outsiders this can be confusing to follow and just when you think you know it all they change the game. So when they do this JUST STICK TO THE FACTS – go back to what you already know as proven facts and go from there. I have done this over and over again. I almost can now predict their next move on the chess board. We can now see the reaction to the Tariffs. Four articles on Tariffs in the last couple days?  Come on people wake up THIS IS IMPORTANT ! Something important is going on. 

Update on Iraqi Decentralization of Powers


Okay now that we covered the tariffs let me review what is happening in the decentralization efforts. Is this important for an RV.  YES, YES – did I say YES?

It is part of the reconciliation effort. They can not conclude this effort without meeting the standards of decentralization as outlined in their constitution. The USA and UN have said over and over again that they must FULLY IMPLEMENT THEIR CONSTITUTION prior to getting back full international status of their currency. So here is an update on their plan in these two articles that follow.

Are we close to completion. HELL YES ! The deadline is August 6th. Will they meet this deadline or will they extend it out?

So the first article is telling us that they are having a BIG meeting in the council of ministers chambers and what they are talking about. They are going to decide if they will give the decentralization effort another 3 months to complete. It was written while the meeting was being held. Are you reading this any differently? I could be wrong. Some say they already gave them a 3 month extension.

The second article is telling us they did in fact give a 3 month extension.

What impact does this have on our RV?
It is hard to tell since we do not know the extent of what is left to do. They decide they can clean up the rest of the transfer as long as the rest of the needed laws are enacted. I will be keeping on top if this.

But my guess is we may (I said may) be waiting yet at least another 3 months ( mid November) for any chance of an RV (based purely on this effort). Remember also every month they give a report card progress report to parliament on the reconciliation effort.  But like I said above - What about the pressure from the tariffs? What will this pressure bring us? Lots going on here.

Article #1 Begins:

EXPANDED MEETING TO RESOLVE THE TRANSFER OF POWERS FROM THE MINISTRIES      

An expanded meeting to resolve the transfer of powers from the ministries to the provinces file

BAGHDAD / ... The Commission on the regions and governorates not organized province and a member of the parliamentary fulfillment of a fight, Sunday, that the committee with the transfer of powers from the ministries to the provinces, indicating the presence of an expanded meeting on Sunday to resolve this file.

She said a fight in a statement received "eye Iraq News", that "the Committee of the Regions and governorates not organized province of parliamentary standing next to the provinces, which calls for the application of the decision to transfer the powers of the ministries to local governments, in order to ease the burden on the ministries on the one hand and raising the level of services provided to citizens of On the other hand ".

She explained fight "that delayed the transfer of powers is due to the unwillingness of the administrative staff of some ministries and provinces to receive files, as well as the lack of readiness of some ministries to deliver administrative files".

She said a fight, "said the parliamentary committee will be held on Sunday, an expanded meeting attended by the heads of political blocs and the ministers concerned and the Minister of State for Provincial Affairs, parliamentary committees and the heads of provincial councils and governors for the purpose of discussing the measures to be taken after the transfer of powers to the provinces and resolution of this file," indicating that "some provinces threatened to resort to the courts In the absence of the central government's commitment to the transfer of administrative files to local governments on schedule and is 08/05/2015 "

It is said that the General Secretariat of the Council of Ministers has announced that the Council adheres to the transfer of powers from the relevant ministries to the provincial councils in accordance with the government program, which the government is committed to its implementation, noting that the Board directed the Minister of State for Provincial Affairs and the House of Representatives to take what requires to implement Alaqrar.


Article Ends

Article #2 Begins:

CABINET AGREES WITH THE COMPLETION OF THE TRANSFER OF POWERS 15 PROVINCES WITHIN THREE MONTHS
     

02/08/2015 10:53

Long-Presse / Dhi Qar He said the governor of Dhi Qar, Yahya Mohammed Baqir al-Nasseri, Sunday, in an agreement between the local governments in the provinces is Regular province and the Council of Ministers to complete the transfer of powers from the federal ministries measures within a specific timeframe of three months, and among the transfer of powers will be gradual, he referred to the Council of Ministers to support the demands of the provinces.

He said Yahya Mohammed Baqir al-Nasseri told a news briefing after attending the coordination meeting held on Saturday, and chaired by the Prime Minister Haider al-Abadi received (long-Presse) a copy of it, that "coordination meeting discussed the completion of the transfer of powers from the federal ministries to local governments in the provinces non-motorized Regular province, "noting that" the outcome of the meeting to determine the timeframe for the completion of the transfer of powers standing three months. "

He said the governor of Dhi Qar, said that "the transfer of powers from eight ministries provided by the law 21 will be gradually and within the time limit set by the coordination meeting."

He Nazareth that "local governments during the coordination meeting confirmed its commitment to the transfer of powers in accordance with the legal framework established by the governorates not organized province that law," stressing that "the Council of Ministers expressed full support to the demands of the provinces in this regard."

He expressed the Nazarene "I hope that the process of transfer of powers are properly and do not cause a quick overwhelm the interests of citizens or affect the administrative work in the provinces and ministries concerned."

The coordination meeting of the provinces is the province of the organization was held on Saturday, at the conference room in the Council of Ministers headed by Prime Minister Haider al-Abadi and the presence of 8 ministers as well as governors and heads of provincial councils in 15 governorates irregular province.

He was the governor of Dhi Qar, revealed on Thursday (July 3, 2015), for a formal meeting under the chairmanship of Prime Minister Haider al-Abadi on Saturday and another meeting with the President of the House of Representatives on Sunday, in Baghdad in order to complete the transfer of powers to the provinces procedures, and AS EXPECTED TRANSFER ON SCHEDULE IN THE FIFTH MONTH OF AUGUST NEXT, he affirmed the support of the provincial council of the local government.

The article (45) of the second amendment to the law of governorates not organized in the territory of Law No. (21) of 2008 voted by the Parliament in its meeting held in the (23 June 2013), states that "A commission named (the Supreme Commission for Coordination between the provinces) headed by the Prime Minister, and the membership of Ministers (Municipalities and Public Works, and Construction and Housing, labor and social affairs, education, health, planning, agriculture, finance, sports and youth) and Minister of State for Provincial Affairs, governors and heads of provincial councils take "transfer sub-circuits and devices and functions and services and competencies exercised by those ministries with allocated public budget and staff and personnel allocations, to the provinces within the scope of its functions set out in the Constitution and relevant laws gradually and within a time limit not exceeding two years and remains the role of ministries in
 the planning of public policy.


Article End
New 50k bank Notes

How can they implement these without the completion of the project to delete the zeros?

We have heard from Iraqi economic experts themselves in many articles telling us they will FACE MASSIVE INFLATION if they issue these notes. Remember these notes are not for the general public and we are told they will remain as legal tender even after the project to delete the zeros is completed. They are to be used mostly in commercial transactions of purchased with very large price tags.

The article below is an old article and the “early next month” mentioned is early August, this month and we are now inside this window. So we can see the plan. But remember just because it’s a plan does not mean they will follow through completely with it. Remember the article talks mainly about PRINTING and not so much about distribution and use of the notes. This I suspect will come out later this month when they plan to distribute and use them.

Article Begins:

PARLIAMENTARY FINANCE CONFIRMS THE CONTINUATION OF THE "CENTRAL" TO PRINT NEW BANKNOTES: WILL GO WITHIN DAYS
     

Special-scales News
Approved the decision of the parliamentary finance committee Ahmed Hama, Thursday, the central bank is constantly in the process of printing banknotes category 50 000 dinars to put forward in the Iraqi market early next month.

He said Hama's / scales News /, that "it is possible to introduce new banknotes category 50 000 in the Iraqi market early next month after he managed the Central Bank of print," explaining that "the expansion of the scope of the private sector, one of the solutions that must be introduced to promote the economy Iraq ".
He added that "2016 will see a new printing papers 100 000 dinars class to put on the market," noting that "the country needs to be run by the mixed sector first and then move to the stage of the private sector."
He said, "The obstacles that hinder the work of the private sector in Iraq is very much the most prominent insecurity."

This said Governor of the Central Bank of Iraq, Ali Mohsen Keywords earlier, that early 2016 will see the issuance of new categories of paper currency is the 100 000 dinars, the Iraqi currency notes series underlined that the new banknotes put revive the Iraqi dinar against the dollar, "


Article Ends

Peace and Luv To Ya All, 
Mnt Goat


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