KTFA Late Sun. Night CC: FRANK26…..5-5-24……FLOAT…….WHO CARES?

KTFA

Late Sunday Night Conference Call

FRANK26…..5-5-24……FLOAT…….WHO CARES?

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=dMwNqWZZXxw

KTFA Sat. Night CC: “FRANK26…..5-4-24……QUACKS !!!”

KTFA

Late Saturday Night Conference Call

FRANK26…..5-4-24……QUACKS !!!

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=Lm7ToBv1QD4

KTFA Members “News and Views” Friday 5-3-2024

KTFA:

Clare:  The Executive Director of the International Monetary Fund warns: Is there a possibility of the collapse of the global monetary system?

5/3/2024

The Executive Director of the International Monetary Fund, Alexei Mugin, said on Friday that he does not rule out the possibility of the collapse of the current global monetary system.

In an interview with the "Novosti" agency, Mogin asked: "Is there a possibility of the collapse of the global monetary system? It seems to me that such a possibility actually exists."

The expert pointed out that the current system relies on confidence that dollar assets are safe, but central banks, institutions, and even families have already begun to sell dollar assets and buy gold, due to growing lack of confidence in their safety.

Mougins warned of chaos in the global economy, noting that "once this confidence is lost, a period of chaos will occur in the global economy."

Reports issued by the International Monetary Fund warned last April that the debts of the United States and China pose a threat to global finances.

The rise in US public debt and the dependence of global trade on the dollar raises concern among experts and a number of countries around the world.

Data issued by the US Treasury Department earlier this month revealed that the US budget deficit exceeded one trillion dollars in the first six months of the fiscal year, partly paid for by the rise in interest on public debt.   LINK

Alicia2015:  Is there a possibility of the collapse of the global monetary system?

IMO yes. All debt base monetary systems eventually collapse. Once taken off a gold standard Fed-R kept printing dollars at a phenomenal rate. Now...Every 3 months interest on our debt increases 1 trillion dollars, that's 4 trillion a year.

 It's mathematically impossible to pay it down so printing more money and feeding the machine is the Fed R only option. Every dollar printed draws value from existing dollars, weakening the purchasing power, creating inflation (too many dollars chasing too few goods).

 IMO a global monetary collapse is in the horizon, which explains why Global World banking institutions are purchasing gold at a higher rate than ever before. The smart money is running to gold and silver!

**

Clare:  Specialist: Floating the dinar is economic suicide

 5/3/2024- Baghdad

Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.

Helu said, "The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools."

He added that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide and the bank cannot even think about that.

He continued, adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices.. LINK 

Paulette:  IMO.....As Saleh was stating but only stronger wording

 Clare:  Al-Sudani: There is no alternative to upholding the state’s word, protecting the constitution, and enforcing the law in Iraq

5/3/2024

Prime Minister Muhammad Shiaa Al-Sudani stressed, on Friday, the necessity of what he called “upholding the word of the state, protecting the constitution, and enforcing the law” in Iraq.

This came in a speech he delivered during the celebration held today in the capital, Baghdad, on the occasion of the anniversary of the founding of the Asaib Ahl al-Haq movement.

Al-Sudani said in the speech, “The government is moving, supported by broad parliamentary and popular will, towards achieving sustainable development.”

He continued by saying: Our country is moving today to the stage of production, building infrastructure, stimulating the economy, creating job opportunities, confronting challenges, and consolidating sovereignty.

Al-Sudani also stressed that “we all bear the task of enforcing the law, and building the edifice of justice, equality, and institutional stability,” stressing that “there is no alternative to upholding the word of the state, protecting the constitution, and enforcing the law in the country.”   LINK

CalandLQ:   IMO, the buzz words that keep appearing each day now are everything! Words like, upholding, protecting, enforcing and my favorite celebration!! When I imagine as an American being in their shoes and salaries have not been paid and purchasing power is weak the only way I see any leader in Washington giving a celebration speech in public (in said conditions) would be with the National Guard and no civilians allowed within 100 yards of the speaker. Yet, these guys are celebrating…celebrating what?!?!?! IMO we will soon find out. It is my understanding based on our study and as pointed out by Frank last night the requirements for the SAP and WTO are the same which means is they MUST have a REER! Also, if I’m not mistaken, the WTO meeting is scheduled for May 9th

************

Clare: Economic: The fixed dollar exchange rate depletes Iraq's foreign currency reserve 

5/3/2024

Economist Manar Al-Obaidi confirmed that the fixed dollar exchange rate adopted by Iraq depletes the country's foreign currency reserves.

Al-Obaidi said, “The only thing that is completely under the control of the Iraqi state is the exchange rate, which forcefully drains all foreign reserves to maintain an imaginary fixed price that traders benefit from to increase their profit margin.”

He added, "I never called for following a free-float policy. Rather, I called for a start to follow a compensation policy managed with a small volatility factor and gradually work to increase it until complete liberalization is reached."

He continued, “The alternative to maintaining the fixed exchange rate is to continue depleting the reserves until they run out and the oil market is exposed to very expected future fluctuations. Then, will we be forced, not given the choice, to an absolute floatation of the currency or a shocking reduction in the exchange rate, as happened in 2020, and then the risks will be greater and greater?”  LINK

 Paulette:  IMO.....AGREE!!!!!     Managed prior to Free

KTFA Fri. Night CC: FRANK26….5-3-24….EXCHANGE RATE

KTFA

Friday Night Conference Call

FRANK26….5-3-24….EXCHANGE RATE

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=Wyz5k6xA9OY

KTFA Thurs. Night CC: FRANK26…..5-2-24……..SALEH TALKS TO CITIZENS!!!

KTFA

Thursday Evening Conference Call

FRANK26…..5-2-24……..SALEH TALKS TO CITIZENS!!!

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=S5CuOx05AJI

KTFA Wed. Night CC: “FRANK26….5-1-24……CALENDAR GETS SMALLER”

KTFA

Wednesday Night Conference Call

FRANK26….5-1-24……CALENDAR GETS SMALLER

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=gIq1r8hWLKE

KTFA Tues.Night CC: “FRANK26….4-30-24……CONFESSIONS”

KTFA

Tuesday Night Conference Call

FRANK26….4-30-24……CONFESSIONS

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=XGwqCiUE_HE

KTFA Mon. Night CC: “FRANK26…..4-29-24……AGREED SOLUTION”

KTFA

Monday Night Conference Call

FRANK26…..4-29-24……AGREED SOLUTION

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

What Frank’s suit color’s mean…. FRANKS SUIT COLORS FOR CC'S..... WHITE = NEW INFO…. SILVER = INTEL FROZEN…. RED= HIGH ALERT… PURPLE=GUEST WITH US…. BLUE = AIR FORCE…. BLACK = GROUND/FF’S…. GREEN= MR OR FAB 4 ... GOLD = CHANGE… ORANGE= IMPLEMENTATION

https://www.youtube.com/watch?v=nXTRITjqHwk

A Fixed or Fixed Exchange System for the Iraqi Dinar

KTFA:

Clare:  A fixed or fixed exchange system for the Iraqi dinar

Mahmoud Dagher  4- 29-2024

First: a fixed system:

 Rentier countries seek to adopt a fixed exchange system (pegged) to a strong foreign currency or several currencies (a basket of currencies) to ensure the stability of foreign transactions, as long as they export one depleted commodity and import many goods and services, and they are called “small open countries.”

 Despite the agreement that the floating currency system is considered the best in terms of relative response to the performance of the external economy and the lack of need for sometimes excessive use of foreign reserves to defend the official value in the peg system, the abundance of reserves and the need for stability in foreign transactions have a major impact on the economy. Overall, rentier countries are likely to adopt a fixed exchange rate system.

Iraq is one of the economies whose monetary authority adopts an openly fixed exchange rate system (De jure) and strives to be realistically fixed (De facto). The Iraqi dinar’s peg is classified as a “soft peg” peg that includes accepting a fluctuation of no more than 2% during the period. The last 6 months of IMF audit and 1% average volatility continuously (ereare,IMF,2021).

When dealing with the dinar exchange rate, a distinction must be made between the fixed exchange rate that affects the market, and the contractual exchange rate between the central bank and the Ministry of Finance when selling its dollars to the central bank (which is proven in the budget for the public revenue account), and the market exchange rate remains the most important because it is dealt with in the markets as a value. Reference.

The official dinar exchange rate went through (roughly) the following stages:

From 2004 – December 2020: Buying: 1190 Selling: 1200

From the end of 2020 - February 2023: Buy: 1460 Sell: 1470

From February 2023 until now: Buying: 1310 Selling: 1320

It is noted that there are 10 points (10 dinars) between purchasing banking and non-banking financial units (exchange companies) and selling them to merchants (transfers/credits) or to individuals (in cash) (noting that there is a change within the ten points for motivational purposes, but it is not extensive)

Therefore, during the years 2020-2023, the monetary authority did not leave the fixed exchange system, but rather moved from one fixed exchange rate to another fixed exchange rate, according to what it saw fit in the interest of the overall economy and well-being.

It is natural that the repeated transfers from one constant to another over a short period of time had an impact on the balance levels of the dinar and the size of the gap between the official and market exchange rates. This was reflected in the shifting of financial positions in favor of those holding the dollar again and again in favor of those holding the dinar

. It even had an impact in changing The financial positions of creditors and debtors at each change, noting that those with dinar salaries and income are most affected by the gaps and fluctuations between the official value and the market value of the dinar, especially since changing the amount of the assessment was reduced (12-20-2020) and then raised (2-7-2023). It has a clear positive impact even on the macroeconomy, in addition to being a deviation from targeting stability by essentially adopting a fixed exchange rate system.

Second: An installed system

 There is no doubt that the dinar exchange rate is determined through the dealings of the banking or non-banking financial units that buy the dollar at a fixed dinar price from the central bank (cash or promotion) with the importing public (merchants) or travelers (cash), that is, whoever determines the market dinar exchange rate ( Then the dollar exchange rate) these units deal with customers, and then following up on what happened since entering the platform at the end of 2022 until now, we find that the dinar’s story took two stages:

- The merchants’ stage: In the beginning, the importing merchants were obtaining dollars (remittances, credits: which are the largest part of daily currency window sales), at a price of 1,320 dinars/dollar, but the merchants set the margins of their imported sales according to the (parallel) cash price, and thus the merchants practiced speculation.

 The margin of the exchange rate gap, rather than the trading margins of their activity. This behavior is consistent with the state of profit allowed by the market and the prevailing nature of control.

This stage witnessed a gap of up to (1320 - 1550), meaning a margin of 230 points and an exchange gap of (approximately 17%).

- Participation stage: After the banking and non-banking financial units that buy the dollar from the Central Bank (1310 dinars/dollar) became certain that the gap between what they sell (1320 dinars/dollar) and what their merchant customers sell for

(1500-1550), began intervening to share the margin with these clients, and by imposing commissions amounting to

(3%-7%) on dollar sales to customers, whether in cash or promotions. Rather, it was transferred to cards and Western Union under the name of commissions.

So, the price of the dollar moved from (1320 to 1500) and thereabouts, being shared between banking and non-banking financial units and merchants, and it was almost (1320-1400) the share of financial outlets (so 1400 is the cost of purchasing the new dollar instead of 1320.

More than 1,400 are owned by merchants.

Therefore, the natural and legal public is faced with:

- The official price is 1320.

The price for banks is about 1,400 for transfers and credits.

The price for banking companies is slightly higher than 1,400 for cash and transfer.

The price for merchants is between 1400 and 1500.

Therefore, the exchange system became fixed (by cap) (not fixed) and the cost became approximately 1400 dinars / dollar, due to the cap set by the banking and non-banking financial outlets, and in this situation the fixed exchange system was lost (1310-1320).

Therefore, the continuous stabilization has become dependent on the mutual pressure forces between the merchants’ margin of the currency and the margin of the financial outlets of the currency:

Leaving the real margin represented by the added value resulting from financial and commercial activity.

The reflection of this does not stop at the crack in the fixed exchange system adopted by the monetary authority, which is published in the IMF documents through the Fund’s annual (ARERE) report, but rather goes beyond that to the disparity in the exceptional profits achieved by financial outlets compared to others (due to commissions) in a way that approaches monopoly. For the banking market, which is based on the difference in market share, due to the availability of important correspondents for this outlet compared to the other.

Returning to stability has become limited to the efforts of the following:

• Follow up on commissions (Central Bank).

• Follow up with customs for the entry of goods.

• Follow up with the authorities responsible for financial crime (reporting office, economic crime) to follow up on unregistered commissions for fear of their incorrect use.   LINK

KTFA Sun. Night CC: “ FRANK26….4-28-24…..FORGET PARLIAMENT!!”

KTFA

Sunday Night Conference Call

FRANK26….4-28-24…..FORGET PARLIAMENT!!!

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=VN5nyJXUhrg

KTFA Friday Night CC: “FRANK26….4-26-24…..A LOT FROM ALAK”

KTFA

Friday Night Conference Call

FRANK26….4-26-24…..A LOT FROM ALAK

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

https://www.youtube.com/watch?v=sbdMmXb2rx0