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[size=24]2Cents and KTFA Members Saturday PM "Chapter 7 to Chapter 8" 2-17-18
2/17/20180 Comments[/size]
KTFA:
Cecilia: In my opinion...no point to do a contract with a country still in chapter 8..according to conference call...because they r not international...to be out of chapter 8 means 1:1.
2Cents: IMO this is an important issue that WS is trying to make all understand and so I take that risk again especially as Frank appears to be on the same page and no longer seeking them "lift Article VIII" ......
IMO, Iraq has one remaining issue that remains under Chapter VII of the UN - the compensation file to Kuwait. This morning we see the articles once again talking about this file....there are two files under Chapter VI of the UN - the Missing Persons and the Missing Property. the UN is scheduled to review all three of these files on Tuesday 2/20......
IMO, we will see the UN move the compensation file from Chapter VII to Chapter VI either Tuesday or "shortly" thereafter......
The IMF classifies Iraq as being under and accepting the protections afforded by Article XIV......
In order for the IQD to have worldwide acceptance at banks that deal with foreign currency exchange, Iraq must accept all obligations of Article VIII....this will allow not only us to exchange through most banks, but it allows all "investors" into the country to exchange outside of Iraq
....
This is what we have always sought and what the "investors" at the Kuwait conference sought.....IMO, the "investors could care less what the rate is as value is value....they only care about being able to move their money and potential profits in and out of Iraq without restriction no matter what the rate
Realize, that in theory they could do this at the current rate of 1184.......However, as I understand Article VIII, it requires a "reality rate"......In 2009, the WTO agreed that the IQD "reality rate" could be "on par with the USD"......In 2010, Ernst and Young state that after their audit, the "reality rate" should be $1.30 USD per IQD.....Now think about how many debts they have eliminated since then and how many more assets they have discovered.......what could the "reality rate" be today???
Article VIII also requires a complete stop of any multi currency practice......this is two fold, stop using USD to run your country and control the market rate within 2% of the office rate........therefore, auctions will stop at that time as the IQD will be functional within the country and able to be used to purchase imports.....
Until then, the auctions have continued and must continue as the CBI must provide enough USD for the country to function or the IQD will plummet in value as the exchangers could charge increased amounts as the supply of USD is limited......we saw this happen already when the government tried to control the auction amounts....
We know from articles that Iraq has been contracting their money supply and they have full intention to redenominate.....It is only logical that based on their actions and words that they will not accept Article VIII obligations until they are ready to redenominate......
If they do it prior, they will once again lose control of their money supply....not likely....therefore, the plan is clearly to appease the "investor's" by accepting Article VIII and to have control of their money supply be redenominating at the same time.....Of course, logic dictates that their proposed redenominated currency would be completely non functional at the rate of 1184......
So, we know the "investor's" only care about Article VIII, Iraq cares about control of the money supply and the CBI controls the rate.....therefore, IMO we should very shortly see Iraq "accept Article VIII obligations", the currency simultaneously go through a redenomination and a significant appreciation of the exchange rate......
The only question remains as to how the 3 zero bills we hold will be handled thereafter.....I strongly believe the new rate will directly apply to what we hold, we will have a minimum of two years to exchange directly with the bank or dealer of our choosing and that through special arrangement, we will be able to exchange up to at least ten years as the articles have stated....
Now, for all those that continue to state that the IQD is "asset backed and not fiat".......If it were not fiat, how could the rate be so much in question??? A non-fiat asset backed currency is defined by a specific amount of "asset" and the currency purchasing power could only change with any change in the value of the asset that backs it......we don't see that with the IQD and as such, the IQD is fiat and will remain fiat...
There is no "Chapter VIII" issues concerning Iraq.......The UN Chapter VIII is not relevant and the IMF is under "Articles".... Here is a brief summary from Wikipedia of Chapter VIII which is clearly irrelevant to Iraq:
Chapter VIII of the United Nations Charter
From Wikipedia, the free encyclopedia
Wikisource has original text related to this article:
Charter of the United Nations#Chapter VIII - Regional Arrangements
Chapter VIII of the United Nations Charter deals with regional arrangements. It authorizes regional organizations (such as the African Union) and even requires attempts to resolve disputes through such agencies (if available) prior to intervention by the UN Security Council. However, Article 53 provides that "no enforcement action shall be taken under regional arrangements or by regional agencies without the authorization of the Security Council."
Chapter VIII makes reference to enemy states, which were powers such as Japan and Germany that remained enemies of the UN signatories at the time of the promulgation of the UN Charter (in the closing months of World War II in mid-1945).
There have been proposals to remove these references, but none have come to fruition. Chapter VIII is analogous to Article 21 of the Covenant of the League of Nations, which provides, "Nothing in this Covenant shall be deemed to affect the validity of international engagements, such as treaties of arbitration or regional understandings like the Monroe doctrine, for securing the maintenance of peace."
Frank26: WALKINGSTICK ................... SAID WELL DONE 2CENTS.
Patriot12: Makes sense. The auctions must stay until the rate changes.... to franks point this is a reinstatement. We never heard anything about having to be international until I believe around June. Thanks 2 cents , Frank, WS and team. We all are on the same team and praying for the same thing. Let’s hope it is close
2Cents: I just hope it helps all understand and understand that the underlying fundamentals at play are so sound......Don't be discouraged if it doesn't happen when you expected.......IMO, and congruent with Frank, WS and TEAMS, we appear sooooo very close......however, we don't know the plan.....we can only guess our best.....whether February, March, June or later they will accept Article VIII, they will Redenominate and they will change the official exchange rate.......As I stated before, only one question remains.....How will it apply to what we hold???
ChrisC: If they don't honor the currency we hold at the new rate, then they would violate all known and accepted standards for the use of currency. Anybody that offers IOUs, of any kind, and then tries to say they are no good should lose all credibility with the people they trade with, IMO. I can't imagine any worse precedent to set than to con people into trading with you and then robbing them. They might steal from their own people, but I can't see them stealing from the rest of the World like that.
Cecilia: In my opinion...no point to do a contract with a country still in chapter 8..according to conference call...because they r not international...to be out of chapter 8 means 1:1.
2Cents: IMO this is an important issue that WS is trying to make all understand and so I take that risk again especially as Frank appears to be on the same page and no longer seeking them "lift Article VIII" ......
IMO, Iraq has one remaining issue that remains under Chapter VII of the UN - the compensation file to Kuwait. This morning we see the articles once again talking about this file....there are two files under Chapter VI of the UN - the Missing Persons and the Missing Property. the UN is scheduled to review all three of these files on Tuesday 2/20......
IMO, we will see the UN move the compensation file from Chapter VII to Chapter VI either Tuesday or "shortly" thereafter......
The IMF classifies Iraq as being under and accepting the protections afforded by Article XIV......
In order for the IQD to have worldwide acceptance at banks that deal with foreign currency exchange, Iraq must accept all obligations of Article VIII....this will allow not only us to exchange through most banks, but it allows all "investors" into the country to exchange outside of Iraq
....
This is what we have always sought and what the "investors" at the Kuwait conference sought.....IMO, the "investors could care less what the rate is as value is value....they only care about being able to move their money and potential profits in and out of Iraq without restriction no matter what the rate
Realize, that in theory they could do this at the current rate of 1184.......However, as I understand Article VIII, it requires a "reality rate"......In 2009, the WTO agreed that the IQD "reality rate" could be "on par with the USD"......In 2010, Ernst and Young state that after their audit, the "reality rate" should be $1.30 USD per IQD.....Now think about how many debts they have eliminated since then and how many more assets they have discovered.......what could the "reality rate" be today???
Article VIII also requires a complete stop of any multi currency practice......this is two fold, stop using USD to run your country and control the market rate within 2% of the office rate........therefore, auctions will stop at that time as the IQD will be functional within the country and able to be used to purchase imports.....
Until then, the auctions have continued and must continue as the CBI must provide enough USD for the country to function or the IQD will plummet in value as the exchangers could charge increased amounts as the supply of USD is limited......we saw this happen already when the government tried to control the auction amounts....
We know from articles that Iraq has been contracting their money supply and they have full intention to redenominate.....It is only logical that based on their actions and words that they will not accept Article VIII obligations until they are ready to redenominate......
If they do it prior, they will once again lose control of their money supply....not likely....therefore, the plan is clearly to appease the "investor's" by accepting Article VIII and to have control of their money supply be redenominating at the same time.....Of course, logic dictates that their proposed redenominated currency would be completely non functional at the rate of 1184......
So, we know the "investor's" only care about Article VIII, Iraq cares about control of the money supply and the CBI controls the rate.....therefore, IMO we should very shortly see Iraq "accept Article VIII obligations", the currency simultaneously go through a redenomination and a significant appreciation of the exchange rate......
The only question remains as to how the 3 zero bills we hold will be handled thereafter.....I strongly believe the new rate will directly apply to what we hold, we will have a minimum of two years to exchange directly with the bank or dealer of our choosing and that through special arrangement, we will be able to exchange up to at least ten years as the articles have stated....
Now, for all those that continue to state that the IQD is "asset backed and not fiat".......If it were not fiat, how could the rate be so much in question??? A non-fiat asset backed currency is defined by a specific amount of "asset" and the currency purchasing power could only change with any change in the value of the asset that backs it......we don't see that with the IQD and as such, the IQD is fiat and will remain fiat...
There is no "Chapter VIII" issues concerning Iraq.......The UN Chapter VIII is not relevant and the IMF is under "Articles".... Here is a brief summary from Wikipedia of Chapter VIII which is clearly irrelevant to Iraq:
Chapter VIII of the United Nations Charter
From Wikipedia, the free encyclopedia
Wikisource has original text related to this article:
Charter of the United Nations#Chapter VIII - Regional Arrangements
Chapter VIII of the United Nations Charter deals with regional arrangements. It authorizes regional organizations (such as the African Union) and even requires attempts to resolve disputes through such agencies (if available) prior to intervention by the UN Security Council. However, Article 53 provides that "no enforcement action shall be taken under regional arrangements or by regional agencies without the authorization of the Security Council."
Chapter VIII makes reference to enemy states, which were powers such as Japan and Germany that remained enemies of the UN signatories at the time of the promulgation of the UN Charter (in the closing months of World War II in mid-1945).
There have been proposals to remove these references, but none have come to fruition. Chapter VIII is analogous to Article 21 of the Covenant of the League of Nations, which provides, "Nothing in this Covenant shall be deemed to affect the validity of international engagements, such as treaties of arbitration or regional understandings like the Monroe doctrine, for securing the maintenance of peace."
Frank26: WALKINGSTICK ................... SAID WELL DONE 2CENTS.
Patriot12: Makes sense. The auctions must stay until the rate changes.... to franks point this is a reinstatement. We never heard anything about having to be international until I believe around June. Thanks 2 cents , Frank, WS and team. We all are on the same team and praying for the same thing. Let’s hope it is close
2Cents: I just hope it helps all understand and understand that the underlying fundamentals at play are so sound......Don't be discouraged if it doesn't happen when you expected.......IMO, and congruent with Frank, WS and TEAMS, we appear sooooo very close......however, we don't know the plan.....we can only guess our best.....whether February, March, June or later they will accept Article VIII, they will Redenominate and they will change the official exchange rate.......As I stated before, only one question remains.....How will it apply to what we hold???
ChrisC: If they don't honor the currency we hold at the new rate, then they would violate all known and accepted standards for the use of currency. Anybody that offers IOUs, of any kind, and then tries to say they are no good should lose all credibility with the people they trade with, IMO. I can't imagine any worse precedent to set than to con people into trading with you and then robbing them. They might steal from their own people, but I can't see them stealing from the rest of the World like that.
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