Money and the Iraq constitution

[mozkill]

What exactly does article 108 of the new Iraq constitution really mean?

Third: Formulating fiscal and customs policy, issuing currency, regulating commercial policy across regional and governorate boundaries in Iraq; drawing up the national budget of the State; formulating monetary policy, and establishing and administering a central bank;

What kind of monetary system will they establish from this? Debt based? Gold standard?

[TheNocturnalEgyptian]

A major point of the invasion was to set up a central bank.

Iraq and Afghanistan were 2 of 5 remaining countries to not have a centalized bank (all centralized banks have the same or very similar owners)

In each case, some of the very first moves that were made post invasion were to set up centralized banks in both countries.

Taking this in, you can bet your bottom doughnut that it will be fiat.

[bwelkk]

Originally Posted by TheNocturnalEgyptian

The point of the invasion was to set up a central bank.

Iraq and Afghanistan were 2 of 5 remaining countries to not have a centalized bank (all centralized banks have the same owners)

In each case, some of the very first moves that were made post invasion were to set up centralized banks in both countries.

Taking this in, you can bet your bottom doughnut that it will be fiat.

What are the other 3?

[TheNocturnalEgyptian]

Libya, North Korea, and Iran.

Read's like a "who's who" of countries we don't like, doesn't it?

When was our war rhetoric highest against Iran?

When they were talking about pegging their Ruble (or whatever it is...) to their Oil Bourse, thus backing their currency with petrol.
Effectively breaking rule#1 of OPEC - you must use dollars to buy or sell oil.

In fact, Saddam broke this rule in Nov. 2000 when he switched to the Euro to buy & sell his oil. Look what happened to him?

Installing a centralized bank in every country in the world has been item number 1 for most of the last 100 years.