The past 24 hours have brought about some extremely interesting developments. Friday Night a group of us gathered for a private discussion on these developments, including , Zxxxxxxxxxx, Rxxx Pxxxx and myself. I'm posting this as a summary of our discussion at their recommendation.
Thursday at roughly 5:00 PM Eastern, the IQD showed up on FOREX at the Frankfurt Exchange, and shortly thereafter on the Paris Exchange. For reasons explained otherwise, it did not appear on Citibank’s FOREX site in the U.S., and that may be because the USD was not referenced in this announcement.
The actual exchange looked like this:
0.16 1,555.5270 (99.9900%) Jul 12
Add to Portfolio. Prev Close: 1,474.7684
Day's Range: N/A - N/A
52wk Range: 1,436.6387 - 1,678.8651
EUR-IQD.F EUR/IQD 0.16 Currencies FRA
EURIQD=X EUR/IQD 1,418.05 Currencies CCY
As you can see, the IQD was referenced to the Euro. The Euro was equal (in this posting) to .16 IQD. That would make the IQD worth Eu6.25. Take the current value of the Euro against the US Dollar and we have a valuation of the IQD against the USD equal to $7.62.
Thursday night’s appearance on both the Frankfurt and Paris exchanges did more than raise some eyebrows. Our first reaction was that this was a glitch in the FOREX computers, but the rate continued to display for some seven hours. (Update: The rate was still there, by the way, as of noon Friday.) We’ve seen glitches before, but they generally last for a few minutes, and maybe an hour at the absolute outside.
There was, however, a fascinating coincidence to the appearance of this item on FOREX (and if you believe that it was a coincidence, I've got a bridge for sale! GRIN!). On the day following the appearance of this rate with both Frankfurt and Paris FOREX exchanges, we learn that the Iraqi Minister of Finance as well as other representatives from the GOI were in Frankfurt and Paris to open up embassies. Makes you go, HMMMMMMMM....
In a previous post, I’ve noted that there has been some ongoing discussion regarding an effort by the U.S. Fed to push the USD to some specific target value against the so-called “basket of currencies” (by which the USD is measured). There’s been a fair amount of speculation among our analysts as to just what that target might be.
Because the IQD (at the program rate of 1166/Dollar) has generally been valued at $.000855 (or thereabouts), the speculation has been that the target value of the USD against the basket of currencies was likely about $.86. The Dollar has for many months ranged between $.79 and $.82, hitting a high roughly a year ago of $.8250.
At the close of the exchanges Thursday night, the USD was at $.8378 against the basket of currencies – the highest we’ve seen in years. Friday morning, the following headline appeared on Citibank’s New York FOREX exchange under a byline by Michael Boutros: US Dollar Index Reaches 10,070 Objective- Consolidation Ahead.
Because we’ve been using the traditional basket of currencies against which the USD’s value is established worldwide, it never occurred to us that the Fed’s objective (along with all of the other central banks) was predicated on a measurement of a much larger (worldwide?) basket.
What this headline (and the attendant article) is telling us is that the target valuation for the USD has been reached – a rate which currencies worldwide can use as a baseline, and a rate which makes the upcoming IQD RV (as well as a group of other currency revaluations) desirable.
Now, let me go back to the posting which appeared Thursday night on Frankfurt’s FOREX exchange. You will see the following notation: EUR-IQD.F EUR/IQD 0.16 Currencies FRA. Here’s where things get interesting. The FRA notation has a double meaning. The first is “Fixed Rate Adjustment.” The second is “Forward Rate Agreement.” In short, a forward rate agreement (FRA) is an over-the-counter financial futures contract on short-term deposits.
Both of these uses of the FRA notation indicate an increase in value and advise currency traders and businesses/nations engaged in contract negotiations with Iraq that the IQD is about to revalue and that future contracts will need to incorporate the new rate.
This would seem to indicate that the target rate for the IQD is $7.62. (I would highly caution all of you to consider this figure with a lot of question marks. For all practical purposes it doubles Frank's $3.86 projection.) Does that mean that Dr. Shabibi will make his announcement with the IQD coming out all at once at this 7.62 rate?
For those of us who have analyzed this piece of information, it would seem like that would cause a shock in many economies, and that a gradual increase over a six-to-twelve month (or even an 18-month) span in 90-day increments, the first being at Ernst & Young’s suggested $1.30 rate being the more logical and probable.
I don’t have that answer – YET! What I do know is that the wheels are turning and Shabibi’s announcement is imminent. If we get anything like $7.62 at the outset, you’ll have to cover your ears to protect your hearing from the deafening roar of excitement!
Lastly, there’s been more than a little scuttle about both Shabibi and Maliki (the PM) awaiting the return of Talabani, Iraq’s President, and affording him the honor of making the announcement. Friday’s news indicates that Talabani will be back in one week, and that he has been recuperating from back surgery. Our mention of July 23rd as a highly possible date sits well with all of us.
Finally, the last item in our discussion was a phone call I received late yesterday morning from a longtime friend who has retired from the RCMP and served as the equivalent head of Canada's Secret Service (Sorry, but I don't remember what they call this particular division of the RCMP). This gentleman is not given to dreams or visions, and is very fact-oriented and takes a sober, businesslike approach to things. He also happens to be an investor in IQD.
He was awakened Friday morning out of a dream that gripped him with its significance. In this dream he saw Satan standing over a prostrated man with his foot on his chest. As he began to take a closer look, he said that the chest was literally covered with and/or made up of Dinar. As he continued to survey the situation, he saw our current WH administration standing by smiling broadly. At the same time he heard the voice of God speak and say, "That's enough! Take your foot off now!" Satan was forced to take his foot off and the man arose. The implication was clear.
However Satan has been restricting things, whatever means he has used to block this release, God has freed things.
That’s where we are, folks. Inch by inch by inch by inch we’ve been getting there. I remind you once again of the prophetic word that Kim Clement gave last year: NOTHING! NOTHING! NOTHING! and then SUDDENLY!