Scooter: Thank you tenmillion
tenmillion: yw scooter
Scooter: Good Evening Everyone,
Scooter: I hope all is well for everyone tonight and I’m honored to be here with you!!
Scooter: Tonight we have a full agenda and lots of topics to discuss. So what I would like to do is go through some of those items, discuss them and provide my thoughts, and then open the room up for questions.
Scooter: So let’s get started with the topics and jump right into the game.
Scooter: First, I will list the topics out with links
Scooter: 1. The Latest Withdrawal Agreement and its importance
Scooter:
LINK
Scooter: 2. Recent 3 day meeting in Iraq with the UN – UN Statement from Melkert
LINK
Scooter: 3. The DFI Fund
Scooter: Transfer of DFI from UN to US Treasury –
LINK
Scooter: Parliament Meeting minutes from May 10th –
LINK
Scooter: The Recent DFI Audit (compliments of “Broke Iron Worker B.I.W.)
LINK
Scooter: Thanks again Broke (B.I.W.)– You sooooo Totally Rock!!
Scooter: 4. Reboot of Two Government banks – Rasheed and Rafadain
LINK
Scooter: Now, those are just some topics but when I’m finished, we can open up for questions…
Scooter: So let’s start with number one:
Scooter: 1. The Latest Withdrawal Agreement and its importance.
Scooter: To me, this was the most compelling pieces of news, particularly since the security briefing book was officially given to the Iraqi’s from the Americans and it defines the rules of engagement from this point forward. The agreement sets the expectations for the Iraqi’s and it defines holds their feet to the fire if they get out of line or stray away from a democratic rule. Here’s some excerpts:
Scooter: Article Twenty-fourth .. withdrawal of U.S. troops from Iraq: recognition of the performance of Iraqi security forces and increase their capacity, and assuming full responsibility for security and building a strong relationship between the parties, it was agreed as follows:
Scooter: To all United States forces to withdraw from all lands and waters and airspace of Iraq no later than December 31 2011.
Scooter: _ The United States recognizes the sovereign right of the Government of Iraq to request the departure of U.S. forces from Iraq at any time, and the Government of Iraq recognizes the sovereign right of the United States to withdraw U.S. forces from Iraq at any time.
Scooter: _ Parties agree to establish mechanisms and arrangements to reduce the number of U.S. forces during specific periods of time, and they must agree on the locations where these troops will stabilize.
Scooter: Ahhhhhhhhhh. The US Military complex at its best – It was just announced that we will have nine bases in Iraq. Does anybody really think we are going to leave Iraq permanently? Hmmmm. Should be interesting to witness. Here’s the link:
LINK
Scooter: There is a reason for reviewing this — I promise !!!
Scooter: Article Twenty-seventh .. deter security risks: In order to enhance security and stability in Iraq and to contribute in establishing peace and stability, both parties seek actively to promote the political and military capabilities of the Republic of Iraq and to enable Iraq to deter threats against its sovereignty, political independence and territorial integrity and its democratic federal constitutional . And agree in this regard:
Scooter: _ In the event of any external or internal threat against Iraq, or the occurrence of aggression upon it, would violate the sovereignty or political independence or territorial integrity, waters or airspace, or the threat of its democratic system or its elected institutions, and at the request of the Government of Iraq, the Parties shall, to initiate immediately in the deliberations of the strategy, and as may be mutually agreed between them, the United States take appropriate measures, which include diplomatic measures, economic or military or any other action to deter such a threat.
Scooter: With the largest Embassy in the world located in Baghdad and Iran next door, I have a feeling we will be there for quite a while!!!
Scooter: Finally, the best part:
Scooter: Article XXV
Scooter: Includes measures to end the application of Chapter VII on Iraq.
Scooter: Remember, this was just signed this last weekend
Scooter: I hope everybody understands this one because essentially this is a signed agreement between the two countries and part of the deal is that Chpt. 7 ends upon the execution of this contract.
Scooter: The whole purpose of this document is a leverage tool for the United States that if Iraq doesn’t play by the rules, we can go back to the UN and force the issue – let’s hope we don’t have to do that again but I think you get the picture.
Scooter: In sum, it’s a very important document and it puts us one step closer to our elusive RV!!! Much much closer!!!
Scooter: Ok – Item number two:
Scooter: Recent 3 day meeting in Iraq with the UN
Scooter: United Nations calls on the Iraqi government to carry out economic reforms and the elimination of unemployment – 5-24-2011
Scooter: I love this one because it’s got RV written all over it!! Here’s some excerpts:
Scooter: Called Representative of the Secretary General of the United Nations in Iraq ed Mleckert, Tuesday, the Iraqi government To carry out economic reforms and the elimination of unemployment and achieving social justice through The application of the principle of equal opportunities, stressing that the building of the future good of Iraq requires a good economy And a free market.
Scooter: It gets better …
Scooter: Said Ed Melckert in a speech during the Conference of the economic partnership, social and governmental Iraqi parliament building, which was held today, attended by “Alsumaria News”, “There are things necessary to carry out reforms in the economy the most important provision of social security For workers and to achieve social justice through the application of the principle of equal opportunities, “expected “The outcome of good comes out of the Conference of the Iraqi economy up to the stage of prosperity after Achieve the required economic reforms.”
Scooter: Hmmmmm. Maybe they should start with the foundation of their economy called the Iraqi Dinar!! Perhaps this means they might be make the currency recognizable internationally. I’m not sure, but I think that’s what they might be saying…
Scooter: Here’s another Melkert statement:
Scooter: The Melckert “The conference will discuss how to improve the situation of workers in Iraq, and an end to unemployment And the entry of Iraq into the global market to be an actor in the international economy “, Indicating that the conference will “discuss how to rebuild the workers to their true role in Department of Machines for the advancement of the Iraqi economy
Scooter: “the entry of Iraq into the global market to be an actor in the international economy” — love it, love it, love it!!!
Scooter: I think we are getting closer ….
Scooter: Ok – third item – The DFI
Scooter: The transfer of DFI from UN to US Treasury.
Scooter: The official date is June 30th, but honestly this shouldn’t derail the RV from happening sooner.
Scooter: Here’s the reason:
Scooter: It doesn’t matter how much the value is worth pre or post RV because it’s an electronic transmission from one account owned by the UN to another account owned by the US. It’s my understanding there will be five trust accounts. One for Kuwait, one for DFI, one for Paris club, and the other two are unidentified.
Scooter: Here’s an additional reason this is important: On May 10th, 2011, the Iraqi Parliament voted on a very important measure: SURVIVE OR BE ECONOMICALLY DESTROYED INSTANTLY!
Scooter: Guess which one they chose:
Scooter: Essentially, Minister of Foreign Affairs, Zebari, told the Parliament, with Shabibi and the Minister of Finance by his side that if we didn’t take the deal from the Americans, our money would be wide open without any protection measures whatsoever! The amount from the US courts alone amount to over $100,073,000,000.
Scooter: As a result, what we witnessed when the President signed the extension of EO 13303 was the agreement with the Iraqi’s – this is good!! This is very very good! Hence, we saw the immediate Withdrawal Agreement the following Sunday.
Scooter: The President indicated he would re-visit on June 30th. Why? Because that’s when the monies get transferred over from the UN control and protection to the United States Treasury!!
Scooter: Essentially, we have supreme leverage against the Iraqi’s because we not only protect their funds but we have ultimate control over all their funds, To summarize, we can control much of their future direction to become a successful demoncracy in the middle east.
Scooter: Oh yea, did I mention were getting nine bases out of the deal. I’m certain, that made the Military complex very happy……
Scooter: Now, with that said, let’s take a look at the recent DFI Audit – We can thank our very own B.I.W for bringing this one forward as it’s incredible data!!! Thank you B.I.W.!!
Scooter: There two items that we need to realize in this audit.
Scooter: One, the Iraqi’s have been saving their dimes and nickels because they all the sudden show they’ve accumulated over $89 Billion in U.S. treasuries – This is a pretty good savings rate, particularly since the fund has only accumulated $250 Billion since its inception.
Scooter: On top of that, the proceeds at maturation exceeds another $84 Billion USD — Not Bad!!! Not bad at all!!! Over $173 Billion saved up – I wonder why they did that????
Scooter: I’ll have to pontificate for a while and get back with you!!!
Scooter: Ok – last item – the reboot and Re-Capitalization of the two Government Banks
Scooter: Please remember, these two banks only do 90% of all the transactions in the country. This project has been going on since April of 2009 and has been managed by the World Bank. It was originally scheduled for completion June 30, 2010.
Scooter: However, there were several problems:
Scooter: One, the terrorist attacks on the CBI knocked out one the main transactional hubs and they needed to replace that unit. There’s 32 locations around Iraq with the these systems but the CBI was one of the three main hubs.
Scooter: OK – no problem, just replace it and link up with the Oracle database and it should be done right!! Not exactly. First the government’s archaic rules for outside contractors never permitted for short term contracts and they couldn’t find contractors to take the work.
Scooter: The second reason for the delay was the fact that the Auditors (Ernst and Young) couldn’t track three accounts and who the owner was of those accounts. It took them a full year to determine which government agency owned those accounts.
Scooter: As a result, both of those obstacles have now been solved and the reboot of those two banks can now occur. Essentially, they get new balance sheets, all Suspence accounts removed, and each bank will be recapitalized to the appropriate levels via the IMF.
Scooter: The real question has been will they be recapitalized at the old rate or the new one? My vote is the new one!!
Scooter: This is scheduled to occur on June 30, 2011!! Date ringing a bell to anybody?
Scooter: Ok, I have time for a few questions but then I need to “SCOOT” as I have parents coming to town and I need to mentally prepare for my mother!!
Scooter: Just kidding – I love my mother…
cps: tell me about the letter of intent and where did you find it
Scooter: The letter of intent or the Withdrawal agreement can be found
LINK
Danielle904: Hey Scooter its great to have you here, IYO are we closer than ever to an RV and do you think we look good for June
Scooter: I do — I think we have never been closer and things are looking exceptional!!!
raghead1: Is the agreement signed ( you mentioned it was signed last weekend) that essentially HAS ended the Chapter VII
Scooter: The agreement was posted in the iraqi newspaper — essentially that means the iraqi’s have signed off — in fact, it states both sides have agreement and it’s an executed contract —
LINK
dreamzmadeforever: would you say best estimate at the rate will be between .86 and 1.17? or higher?
Scooter: Honestly — the docs say they should open at that rate — with that said, they had three plans which included a low ceiling, mid level, and a high. Any one of those plans could be deployed
Danielle904: Thanks too, u’ve made me believe again this is really going to happen.
Scooter: Well, Thank you very much for the comment — much appreciated
platelunch: Why are they likely to RV before DFI expires? Does it matter? If deals have been worked out beforehand, the payouts could take many years. Why is there such a focus on that as a timeline for an RV?
Scooter: Great question — here’s why it doesn’t matter! Because all they are doing is moving funds from one protected account under the UN to another one under the protection of the US treasury
bobbysac: do you think that $1.75 to $1.95 still is a sweet spot
Scooter: I’ve always liked that spot — it allows them to glide into the 3 range in time for GCC deployment in 2015
kwekubruni: Scooter. If I get the picture right….there are MANY important things for the future of Iraq that MUST happen on June 30. These things can’t happen or at least don’t make sense without an RV. So, the RV almost HAS to happen on or before June 30 or all these plans unravel and Iraq goes back to the stone ages. Am I right?
Scooter: WOW — You have no idea how much I want to say YES YES YES —- you are correct!!! however, I’m not ruling anything out with this investment
paulmc: How much time does the CBI/GOI need, really, in order to be in proper RV order, prior to June 30?
Scooter: The CBI should be in order right now — they have full transparency and when the DFI is fully transferred — they should have quite enough funds dropping back into their reserves
xevious: What do you think will happen to the price of gold after the RV?
Scooter: That is an interesting question!!! Largely because I think this move is a global move, particularly in Eastern Asia currencies —- If you were to ask me that 30 days ago, I would have said stay in Gold. The reality is that the US debt is not going away and if we lose the Petro Dollar — Gold would be a phenomenal play still
dreamzmadeforever: is there any truth to bank screens going green? what do you know about this?
Scooter: I haven’t the foggiest idea what this is about — I wish I could tell you but I’m not a banker or a regional director, I’m just a simple FOREX guy …. Sorry about that…..
Scooter: Ok Folks, I know this was short and sweet — but like I said my mother scares me more than you !!!! So I am going to ask Tenmillion to copy the chat and say goodnight
Dinar Daddy Chat~
