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Thanks for posting the COSIT report! The article and tables provide a fascinating insight into life in Iraq. When we dig deep enough it gives data that should be alarming Americans out of their sleep as well.
The report uses 2007 as the base for Iraq, so increases (or decreases) are shown as a total percent over time versus that base rate. A score of 100 means they are at the same inflation rate (prices compared to availability of money per person) as 2007. That would be very hard to accomplish! A score of 112 means that in the past 4 years they have a NET increase in inflation of 12% compared to 2007. By the way, the goal would be a score of between 108 and 112. Over the past 50 years in the United States we have averaged about 4% inflation per year. Over the last 100 years we have averaged 3.24% inflation, so the 4% goal is usually a pretty stable economic indicator... obviously there have been up and down years!
Using the estimated (standard) 4% inflation rate that WE expect, our current figures for the same materials and goods would give us (U.S.) a score of 116. ( 4 years at 4% increase = 16% NET increase = a score of 116)
Unfortunately, if we use the ACTUAL inflation figures for that time period, our own score would be 124. (We have averaged about 6% inflation over the last 4 years) Anything above 5% is considered CRITICALLY CHALLENGING to the U.S. Economy! That means any score above 120 is a CRITICAL concern!
When Q1 inflation figures increase, price increases show up first in oil prices (we see this spike at the pumps within two weeks on average), then after about two months food prices react and we see those price changes at the grocery store at that time. The increase in prices usually lasts about 6-9 months then corrects again... either up or down... based on the actual inflation figures for the Q2 inflation rate. As you can see, these two overlap, so unless inflation is brought under control we see a CONSTANT rise in prices.
If your investments increase in value by 5% but inflation averages 6%... the result is that the cash in your wallet buys you less. YOU JUST LOST 1%!
Want to know who this really hurts? It is devastating to the person that is scraping by to keep his family fed and his house payments made. He can't afford to invest anything... he has to spend EVERYTHING just to keep up. In just one year, this person lost the entire amount to inflation! (6% in this example). His $30,000 net purchasing value in 2010(think salary)can now only buy $28,200 in goods and services in 2011. It is especially vicious because food and gas and health care prices usually rise even more than than the average inflation rate. The things he NEEDS to just survive cost even more!
By the way, you need to average 12% growth to make up for two years of 6% loss just to break even! But here is the really bad news... Your 12% growth (hard to find) just brings you to zero, it doesn't allow you to build net worth! Spendable assets are required to maintain a personal policy of investing to protect against inflation. That means that over time, your loss against inflation decreases your expendable assets, which means you will become one of the people investing less, and inflation will impact you more and more. As your ability to invest decreases, inflation eats larger percentages of your wealth. Over time, you will be join the ranks of people that cannot afford to invest. It will take longer, but it is mathematically guaranteed.
When Americans (or Iraqi's)do not have spendable income available, they can't afford to invest and a massive shift towards poverty begins. When the country loses tax revenues because investment spending decreases they print more money... renewing the inflation cycle and thereby guaranteeing that the next year or so is worse.
Countries printing money to cover lost revenue are buying time hoping for a miracle. IRAQ is in that position right now. The United States is way past that point. Traditionally countries turn to war to reset their base values because no matter what you may hear on the news, it is IMPOSSIBLE for a COUNTRY to go bankrupt. There is no such action, no legal entity to oversee it, and no way to distribute that country's value to debt holders. If there was a way to do it they would distribute this value to their own citizens! Do you imagine for a second that if Iraq goes bust they will hand over their oil fields to the U.N. or IMF or to China or France... nope.
WORLDWIDE the problem is that inflation and debt has increased regularly and now we are seeing the CONSTANT spike in food prices (actually food prices are skyrocketing!). The result is that globally the percent of the population in poverty is increasing. This is causing each country to spend their GNP (their money) on things like Medicare and Social Security and food stamps and general support for the life needs of the ever growing poverty stricken population. These expenses are necessary, but they are straight loss expenses. They do not provide a return to the government. Over time this insures that the gov't will be unable to invest and thereby protect ITSELF against inflation.
WAKE UP! This isn't a future expectation... the actions described HAVE ALREADY TAKEN PLACE The mathematically guaranteed consequences are being seen globally RIGHT NOW. The U.S. is now at the point that our potential for investment into our GDP is IMPOSSIBLE due to our massive debt and interest. We lose the interest and have to borrow or print money to cover it and our other budget deficits...and FOOD AND GAS prices are ALREADY SPIKING!
I would in most cases be quite skeptical of the dinar investment (as rates described by many). HOWEVER, I do understand that we have allowed ourselves to fall into the same financial traps that the underdeveloped nations deal with daily. They live on borrowed (or stolen) money. Everything in the country goes to crap... except the crappers of the political leaders... they are made of gold. This is the goal of every world leader.
The leaders of the more democratic nations on earth understand that their people will probably not allow them to have or create a golden crapper palace. They can't call a coup, or create a new religion nationwide and kill their opponents. They are stuck praying for a financial miracle. Since the U.S. HAS been that miracle for nearly every country on the globe, we first, don't have anyone to lean on to fix us, and secondly we can't even start mentioning failure without everyone else getting pretty damn nervous. That is happening at this very moment. The world's largest economies are not on the verge of collapse... mathematically they have already jumped... the two or three year free fall isn't killing them, it is the sudden stop at the bottom they are worried about! The ETA for that event is literally any day now. They are frantic for a solution.
I honestly believe that Iraq is an option that allows the major nations to fix themselves without going to war. We are so closely tied economically now that war, although fun, is not going to be nearly as economically successful as it has been in the past. Other options are slim, and several have slipped through our fingers (Hong Kong for example).
Today we are not worried about famished Ethiopian's, we are worried that we need a Rock concert to feed our own people! And we are in the best situation of all of our allies! Everyone is begging the U.S. to create a miracle. So I am very excited about the dinar investment.
We can't let them fail anymore than we can afford to fail. We must, and will, create a solution. Whatever the answer, it must, and will, create value out of thin air or inflation is impacted (and the problem just gets worse). It must, and will, distribute the earnings to investors (not entitlement programs) or the fix lasts two years max, and it must, and will, require participating countries to agree to new valuation standards... it is essentially the final step, EVERYONE must agree to cook their books so the numbers work. That means everyone MUST benefit (or they won't agree to the books!) That means A LOT more money is required overall! This is a huge reason I like the Dinar investment.
Iraq uses the new algorithm to adjust dinar value. The U.S. uses the algorithm to delete foreign debt. Great Britain uses the algorithm to support the Euro, France uses the algorithm to correct their entitlement requirements and it all happens within the blink of an eye, and with very little fanfare.
Do we get rich? Yes and No. Yes our Dinar has an increased value, but understand that as a result of more money supply, our earnings will have a decreased value compared to previous dollar values and secondly, I fully expect there to be a minimum of 75% taxation (spread, fees, registration expenses and state and federal taxes combined) on this particular event. Subtract 75% of value, subtract 8% lost in the last 4 years, and we are left with a net increase in purchasing value of about 17%. The good news is that this 17% increase allows you be an investor for the next 50 years. This protects your family from inflation and helps you secure net wealth. The value of that cannot be overstated.
Finally, Individual Participants are for the most part American. Why? It is because we are still the most powerful and blessed country in the world. WE have the largest GNP of any country on earth and we create more wealth WORLDWIDE than most other countries COMBINED! Our freedom to participate in capital investments and business and land ownership separates us from even many of our democratic allies. This individual participation will create long term wealth for the United States and that wealth protects the world... literally.
Logically then, I can comfortably say it is realistic to expect some action globally. I can logically see that Iraq is undervalued, and I can logically see that steps are being taken (slowly) to set this up. So I am a dinar investor and I tell my friends and family about it as well. Regardless of when it happens or what the final rate becomes, I still say, let's have an RV, fix the world (again) and let's see what happens!
May God CONTINUE to bless you all!
The report uses 2007 as the base for Iraq, so increases (or decreases) are shown as a total percent over time versus that base rate. A score of 100 means they are at the same inflation rate (prices compared to availability of money per person) as 2007. That would be very hard to accomplish! A score of 112 means that in the past 4 years they have a NET increase in inflation of 12% compared to 2007. By the way, the goal would be a score of between 108 and 112. Over the past 50 years in the United States we have averaged about 4% inflation per year. Over the last 100 years we have averaged 3.24% inflation, so the 4% goal is usually a pretty stable economic indicator... obviously there have been up and down years!
Using the estimated (standard) 4% inflation rate that WE expect, our current figures for the same materials and goods would give us (U.S.) a score of 116. ( 4 years at 4% increase = 16% NET increase = a score of 116)
Unfortunately, if we use the ACTUAL inflation figures for that time period, our own score would be 124. (We have averaged about 6% inflation over the last 4 years) Anything above 5% is considered CRITICALLY CHALLENGING to the U.S. Economy! That means any score above 120 is a CRITICAL concern!
When Q1 inflation figures increase, price increases show up first in oil prices (we see this spike at the pumps within two weeks on average), then after about two months food prices react and we see those price changes at the grocery store at that time. The increase in prices usually lasts about 6-9 months then corrects again... either up or down... based on the actual inflation figures for the Q2 inflation rate. As you can see, these two overlap, so unless inflation is brought under control we see a CONSTANT rise in prices.
If your investments increase in value by 5% but inflation averages 6%... the result is that the cash in your wallet buys you less. YOU JUST LOST 1%!
Want to know who this really hurts? It is devastating to the person that is scraping by to keep his family fed and his house payments made. He can't afford to invest anything... he has to spend EVERYTHING just to keep up. In just one year, this person lost the entire amount to inflation! (6% in this example). His $30,000 net purchasing value in 2010(think salary)can now only buy $28,200 in goods and services in 2011. It is especially vicious because food and gas and health care prices usually rise even more than than the average inflation rate. The things he NEEDS to just survive cost even more!
By the way, you need to average 12% growth to make up for two years of 6% loss just to break even! But here is the really bad news... Your 12% growth (hard to find) just brings you to zero, it doesn't allow you to build net worth! Spendable assets are required to maintain a personal policy of investing to protect against inflation. That means that over time, your loss against inflation decreases your expendable assets, which means you will become one of the people investing less, and inflation will impact you more and more. As your ability to invest decreases, inflation eats larger percentages of your wealth. Over time, you will be join the ranks of people that cannot afford to invest. It will take longer, but it is mathematically guaranteed.
When Americans (or Iraqi's)do not have spendable income available, they can't afford to invest and a massive shift towards poverty begins. When the country loses tax revenues because investment spending decreases they print more money... renewing the inflation cycle and thereby guaranteeing that the next year or so is worse.
Countries printing money to cover lost revenue are buying time hoping for a miracle. IRAQ is in that position right now. The United States is way past that point. Traditionally countries turn to war to reset their base values because no matter what you may hear on the news, it is IMPOSSIBLE for a COUNTRY to go bankrupt. There is no such action, no legal entity to oversee it, and no way to distribute that country's value to debt holders. If there was a way to do it they would distribute this value to their own citizens! Do you imagine for a second that if Iraq goes bust they will hand over their oil fields to the U.N. or IMF or to China or France... nope.
WORLDWIDE the problem is that inflation and debt has increased regularly and now we are seeing the CONSTANT spike in food prices (actually food prices are skyrocketing!). The result is that globally the percent of the population in poverty is increasing. This is causing each country to spend their GNP (their money) on things like Medicare and Social Security and food stamps and general support for the life needs of the ever growing poverty stricken population. These expenses are necessary, but they are straight loss expenses. They do not provide a return to the government. Over time this insures that the gov't will be unable to invest and thereby protect ITSELF against inflation.
WAKE UP! This isn't a future expectation... the actions described HAVE ALREADY TAKEN PLACE The mathematically guaranteed consequences are being seen globally RIGHT NOW. The U.S. is now at the point that our potential for investment into our GDP is IMPOSSIBLE due to our massive debt and interest. We lose the interest and have to borrow or print money to cover it and our other budget deficits...and FOOD AND GAS prices are ALREADY SPIKING!
I would in most cases be quite skeptical of the dinar investment (as rates described by many). HOWEVER, I do understand that we have allowed ourselves to fall into the same financial traps that the underdeveloped nations deal with daily. They live on borrowed (or stolen) money. Everything in the country goes to crap... except the crappers of the political leaders... they are made of gold. This is the goal of every world leader.
The leaders of the more democratic nations on earth understand that their people will probably not allow them to have or create a golden crapper palace. They can't call a coup, or create a new religion nationwide and kill their opponents. They are stuck praying for a financial miracle. Since the U.S. HAS been that miracle for nearly every country on the globe, we first, don't have anyone to lean on to fix us, and secondly we can't even start mentioning failure without everyone else getting pretty damn nervous. That is happening at this very moment. The world's largest economies are not on the verge of collapse... mathematically they have already jumped... the two or three year free fall isn't killing them, it is the sudden stop at the bottom they are worried about! The ETA for that event is literally any day now. They are frantic for a solution.
I honestly believe that Iraq is an option that allows the major nations to fix themselves without going to war. We are so closely tied economically now that war, although fun, is not going to be nearly as economically successful as it has been in the past. Other options are slim, and several have slipped through our fingers (Hong Kong for example).
Today we are not worried about famished Ethiopian's, we are worried that we need a Rock concert to feed our own people! And we are in the best situation of all of our allies! Everyone is begging the U.S. to create a miracle. So I am very excited about the dinar investment.
We can't let them fail anymore than we can afford to fail. We must, and will, create a solution. Whatever the answer, it must, and will, create value out of thin air or inflation is impacted (and the problem just gets worse). It must, and will, distribute the earnings to investors (not entitlement programs) or the fix lasts two years max, and it must, and will, require participating countries to agree to new valuation standards... it is essentially the final step, EVERYONE must agree to cook their books so the numbers work. That means everyone MUST benefit (or they won't agree to the books!) That means A LOT more money is required overall! This is a huge reason I like the Dinar investment.
Iraq uses the new algorithm to adjust dinar value. The U.S. uses the algorithm to delete foreign debt. Great Britain uses the algorithm to support the Euro, France uses the algorithm to correct their entitlement requirements and it all happens within the blink of an eye, and with very little fanfare.
Do we get rich? Yes and No. Yes our Dinar has an increased value, but understand that as a result of more money supply, our earnings will have a decreased value compared to previous dollar values and secondly, I fully expect there to be a minimum of 75% taxation (spread, fees, registration expenses and state and federal taxes combined) on this particular event. Subtract 75% of value, subtract 8% lost in the last 4 years, and we are left with a net increase in purchasing value of about 17%. The good news is that this 17% increase allows you be an investor for the next 50 years. This protects your family from inflation and helps you secure net wealth. The value of that cannot be overstated.
Finally, Individual Participants are for the most part American. Why? It is because we are still the most powerful and blessed country in the world. WE have the largest GNP of any country on earth and we create more wealth WORLDWIDE than most other countries COMBINED! Our freedom to participate in capital investments and business and land ownership separates us from even many of our democratic allies. This individual participation will create long term wealth for the United States and that wealth protects the world... literally.
Logically then, I can comfortably say it is realistic to expect some action globally. I can logically see that Iraq is undervalued, and I can logically see that steps are being taken (slowly) to set this up. So I am a dinar investor and I tell my friends and family about it as well. Regardless of when it happens or what the final rate becomes, I still say, let's have an RV, fix the world (again) and let's see what happens!
May God CONTINUE to bless you all!
