American Contractor

Hopefully in the next few months Iraq inflation will be at a managable level. Maybe it will happened after the new new Iraq Dinar Banknotes.

May 26 2006

Bassem Antoine, Deputy Chairman of Iraq’s Businessmen Association, said that inflation in Iraq had reached 107 percent due to the fuel crisis and the deteriorating security situation.

The draconian inflation rate, according to Antoine, was calculates in accordance with the costs of the imported consumer products and the saved costs if produced locally.

“The huge rate has also been the direct result of investing in non-productive sectors,” Antoine noted.

Posted by American Contractor at 10:57 PM | Permalink | Comments (2) | TrackBacks (0)

I commented on all the Iraqi Dinar the Central bank of Iraq has been selling, well even the US Marines are buying Iraqi Dinar to pay Iraqis.

You can read the article here.

Posted by American Contractor at 7:33 PM | Permalink | TrackBacks (0)

This was dated 2 July 2006. For the people in the world that don’t think that the CPA laws are in effect in Iraq to this day then read the article.

I will say this again all CPA laws are in full effect until at such time the new Iraqi government changes the CPA Laws.

Excerpt from news article.

Under Order 17 of the Coalition Provisional Authority in Iraq, members of multinational forces, including Australians, are immune from Iraqi law.

Posted by American Contractor at 6:27 PM | Permalink | TrackBacks (0)

Read it here.

It is about time the Iraq government start complying with it's own SBA agreeemnt with the IMF. There will be two more scheduled price increases by the end of the year.

Posted by American Contractor at 5:51 PM | Permalink | TrackBacks (0)

Excerpt from news article.

Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said on Thursday.

Iraq government is going to do what is best for Iraq.

I am sure the Dinar Forums on the net are excited about this.

It’s ironic you smuggled the Iraqi Dinar currency out of Iraq to speculate on the Iraq currency, now your going to have to smuggle the currency back to Iraq to conduct an exchange on their new new Iraq currency.

I am sure Iraqi customs will be extra careful when examining those goods and packages entering Iraq.

All I can say is...

“Good Luck. I hope you make it.”

Another Article here.

Posted by American Contractor at 5:12 PM | Permalink | Comments (2) | TrackBacks (0)

Read an excerpt below.

The Iraqis began moving the money to Vincent's briefcase. He was stunned. How in the world, he asked, did they expect him to get this past U.S. customs? "That's your problem," he was told. Vincent said he returned to his hotel and locked the door. Fighting panic, Vincent said, he left the next day by car for the border with Jordan and carried the bulging briefcase through security praying no one would search him. No one did. From there, he called Hamdoon begging for help. What was he supposed to do with all this cash? "He said, 'Good luck. I hope you make it,"' Vincent said.

I wonder if this is what happens when Iraq Dinar currency smugglers goes through when he or she smuggles Iraqi Dinar currency across the borders of Iraq. I bet they don’t use briefcases and surely don’t have the Central Bank of Iraq stamp on the currency. However, they do say “Good Luck. I hope you make it.”

You’ll make it for now until very shortly when the new premier Iraqi government shutdowns a few loop holes and files formal complaints with others to stop the continued sales of Iraqi Dinar outside the country of Iraq.

Purchase all you can because it’s just about to dry up.

Posted by American Contractor at 4:20 PM | Permalink | TrackBacks (0)

Imagine you’re an Iraqi living and working in Iraq (I know it would be tough to imagine ) and you have to drive to work and you get in your car and notice you need some petro. You don’t want to wait in the long lines to your local gas station that is a few blocks away. You saw the long lines at every local gas station you drove by when you left work yesterday.

So this morning you have to think and ask yourself do I wait in the long lines for up to hours at a time and risk myself to a potential car bomb attack, or possibly being kidnapped, shot or part of any act of violence that occurs in Iraq at any given time just for a few gallons of petro.

Instead of waiting in the long lines at the local gas station and expose himself to risk to himself or his vehicle he opts to visit a young Iraqi kid that is sitting on the side of the road selling petro. Now, he doesn’t pay the low price of .05 usd per gallon as he would if he had waited in the long line he pays 10-20 times more.

The young Iraqi kid buys the fuel from the local gas station most likely more then what the local gas station paid and then the young kid marks up the gasoline 10-20 times and sells it to who ever drives up and wants to mitigate his risk to the other option by waiting in long lines at the local gas station.

So the Iraqi pays the young Iraqi kid and off to work he goes. No car bomb no one is shot and everyone is happy. I am sure the Oil Mafia makes sure nothing happens around this young Iraqi because he is making money for himself and them.

Now let’s see, Oil Mafia maybe owns the local gas station buys the fuel from the Iraqi Government at .03 per gallon usd then sells the petro to young kids and others at several times more.

Oil Mafia creates a shortage of petro at the local gas station and begins to ration the government subsidized fuel to the local Iraqi’s that are willing to wait in the long lines for a few gallons. These are your poor Iraqi’s.

After this occurs, it forces Iraqi’s to buy the petro from the Oil Mafia at 10-20 times more from kids and tankers that sit alongside the road in Iraq. If your local gas station has closed because of no fuel, you are left with going to another gas station or buying your fuel from the black market.

I hope that the Iraqi government ends the oil and fuel subsidies soon.

This post was initiated by looking at this picture.

Posted by American Contractor at 3:23 PM | Permalink | TrackBacks (0)