Countries cancel their debts with Iraq. The answer to the LOP question.
By Muhammad Ali
PLEASE READ THESE HEADLINES:
Russia Forgives Iraq Billions in Debt
By ANDREW E. KRAMER
Published: February 12, 2008
Oil-Rich United Arab Emirates Cancels Total Iraq Debt
Published July 06, 2008
Japan 'willing to forgive' Iraq debt
(CNN) -- Japan says it is willing to forgive the "vast majority" of its Iraqi debt, but only if other Paris Club members do the same, Japan's Foreign Ministry says.
China Guarantees Future Stronghold In Iraq After Forgiving Saddam's Debt
Joe Weisenthal Feb. 2, 2010, 8:17 AM 3,862 10
France Moves Toward Forgiving Some of Iraq’s Huge Debt
By CRAIG S. SMITH
Published: December 15, 2003
U.S.A. Forgives Iraq Debt To Clear Way for IMF Reforms
by Brian Dominick
While Washington pats itself on the back for forgiving Iraqi debt owed since the 1980s, critics say the relief comes with dangerous strings attached and argue that the debt should have been null and void.
Dec. 19, 2004
SO THE QUESTION IS……….
WHY DID AMERICA, CHINA, RUSSIA, UNITED ARAB EMIRATES, FRANCE, ENGLAND AND MANY OTHER COUNTRIES AND GOVERNMENT OFFICIALS AROUND THE WORLD FORGIVE IRAQ OF ITS DEBTS???????
ASK YOUR SELF THIS VERY IMPORTANT QUESTION.
IS IT BECAUSE THEY WANT TO PUT ON A KIND PITY FACE TO THE IRAQI GOVERNMENT? I DOUBT THAT.
THE ANSWER IS SIMPLE…. BECAUSE THEY ALL HOLD IRAQI DINARS TO COMPENSATE FOR THE DEBT RELEASE.
MEANING THAT, THESE COUNTRIES DID NOT SIMPLE ERASE THE DEBT FROM IRAQ, THEY WERE GIVEN IRAQI DINARS IN COMPENSATION FOR THEIR DEBTS.
SO THEN THE NEXT QUESTION WOULD BE....WHY WOULD ALL THESE COUNTRIES AND OTHERS, CANCEL THEIR DEBTS WITH IRAQ IN EXCHANGE FOR A WORTHLESS PIECE OF PAPER?
LET'S SAY FOR EXAMPLE, IRAQ WAS TO REMOVE 3 ZEROS FROM THEIR NOTES...SO A 25,000 NOTE BECOMES 25.
WOULD THESE COUNTRIES STILL WANT TO TAKE AND HOLD THIS CURRENCY IN REPLACEMENT OF THE DEBT?
I DOUBT THEY WILL WANT TO DO THAT.
I AM 1,000,000% SURE THEY WILL NOT DO THAT... MORE SO, ESPECIALLY IF A 25,000 NOTE WILL BECOME 25.
DO YOU SEE MY POINT?
About 16 or so countries including China and the US hold IQD in their foreign reserves…
The Paris Club (which includes Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, USA, England) forgave $32 billion, China wrote off $6.8 Billion, United Arab Emirates $7 Billion; Kuwait took IQD to the tune of $21 Billion..
So that means, these countries have to be holding IQD…so here are the estimates of IQD held:
US: 4.8 Trillion
Other Paris Club 18: 32 Trillion
United Arab E: 8.1 Trillion
China: 7.9 Trillion
Kuwait : 24 Trillion
That means 76.8 Trillion is in these 22 countries reserves alone,
SO WE ARE CONFIDENT IRAQ WILL NOT DROP 3 ZEROS FROM THEIR NOTES...A 25,000 NOTE WILL REMAIN AS 25,000.
KNOWING THAT COUNTRIES ARE HOLDING IQD, IT GIVES US MORE CONFIDENCE IN THIS INVESTMENT.
I hope my article has been of some interest to you.
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