Post by travelerone3 on Jun 3, 2012 11:49:19 GMT -5
'The way things are going economically, the Dinar won't need to reval. It will be at parity with the dollar by year's end if we end up with this President for another four years.'
To single out and lay blame on a President, past or present, is a mistaken conclusion. There are numerous causes of a downward economy, but the brunt of the credit should be reserved for the real culprits, over-spending, poor GNP, bad financial decisions by Wall Street and of course, the Federal Reserve.
Iraq is geographically positioned on what has been estimated to be the 2nd or 3rd largest reserve of easily obtainable crude oil in the world. Crude Oil and it's export are the backbone of it's survival as the country itself, has no other industry that has clout or viability in a world market. With the de-valuation of the Iraqi Dinar following the ousting of Saddam Hussein, the economy of Iraq plummeted to an almost total worthless value locally and world wide. For the country to regain a place in Global Trading it must have a currency that has a true value and one that is accepted on the open market.
On December 23rd, 1913 the U.S. Congress passed the Federal Reserve Act. This transferred the right to print money from the US Government to the string of privately owned banks that had been financially ruling Europe for many years. Over the last 98 years, we have seen the rise and fall of this world money power in which a defacto world currency was used to enslave most of the nations of the world.I.E., the US Dollar.
In 1974 Henry Kissinger made an agreement with OPEC that all oil would be sold in US dollars only. . This then required all nations to go to the Federal Reserve to exchange the local currency for the US dollar with which to purchase energy. Gradually all the nations' central banks fell to the banking system. .By the year 2011 only seven publicly held central banks existed in the world. Now after our two wars there are only 5. A publicly held central bank gives a country the ability to get out of debt. When banks are privately held, the debt is never released but owed to those who print the money.
The US dollar has been weakening. Although commodity prices have recently strengthened, more than half of that increase has been because of the failing dollar. This is important. In the last few years oil insiders have been saying that the bankers are looking for a new world currency to go to since the USD has been spent into oblivion. Both the Euro and Yen have been growing showing signs that this change is close.
As the printing press at the Fed is running day and night the dollar suffers from excessive spending. The more available the dollar becomes, the less value it has in general. However, until now, the banks have mopped up all the extra liquidity to pay for their gambling debts (derivatives) and that has kept the currency off of main street. If this money had gone into circulation, it would have resulted in high inflation and ultimately the loss of control over debts owed to the system. This is the reason why the 'mom and pop businesses' never got a dime in the bail out.
The largest creditor to the US is China , estimated at $2 Trillion and the second largest is Japan. Japan has a very high debt load reportedly at a larger percentage than the US. With the most recent earthquakes and ensuing tsunami, Japan was forced to start selling their US Treasury holdings which dumped the dollar and made the Yen high in demand. It has recently had much higher than expected gains forcing the FED to act this past week to prevent a further slide of the dollar. On Friday, we saw some stop gap measures take place. Japan's debt is 192% of its gross domestic product. It will need to continue to sell US Treasuries to finance its restructuring and rebuilding.
Both China and Japan have signed agreements and contracts with Iraq for the purchase of Crude Oil that allows payments in their respective currencies. This allows for bypassing the Federal Reserve giving the Iraqi Dinar an increase in value as a World Currency, giving it a much need re-valuing The Iraqi Dinar will RV. It will not however be the instant millionaire' RV' touted by the Dinar Scammers.