XXXXXXX CHAT - 1/21/10 @ 9:50am EST

Speaking of Iran in the first part...

THEY WENT TO AN EXPANSIONARY MONETARY POLICY, BUT THEY ARE ISOLATED BY THEIR OWN GOVT. MINIMAL EXPORTS AND ARE CONSIDERED A STATE THAT SPONSORS TERRORISM. THAT LIMITS VERY MUCH WHO WILL OR CAN DO TRADE WITH THEM. THE PROBLEM IS REVENUES. THAT IS USUALLY WHY A COUNTRY LOPS. THIS WILL BE A LOP I DO BELIEVE. SAME AS KOREA AND VENEZUELA. ONE THING THIS DOES SHOW IS THAT MANY OF THE COUNTRIES IN THE GULF ARE MAKING CHANGES AS PREDICTED. NOW ONE THING IS THAT EVEN THOUGH IRAN LOPS AND INCREASES THE VALUE OF THE RIYAL.

THEY STILL MUST BE ABLE TO BACK IT. THAT MEANS BY FOREIGN CURRENCY ASSETS AND REVENUES. OTHERWISE, THE HYPERINFLATION WILL CONTINUE, AND THEY WILL BE BACK IN THE SAME SPOT VERY SOON. I PERSONALLY BELIEVE WE ARE GOING TO SEE THE VALUATION OF THE IQD WITHIN THE NEXT 25 DAYS. NOW THE FIRST WEEK OF FEB IS A GOOD LOOK. THIS IS BECAUSE WE FEEL THAT FOR WHATEVER REASONS THE POWERS TO BE NEED A MONTH FOR THIS TO BENEFIT, BUT ALSO NOT FADE OUT. TOO SOON AND THE IRAQI PEOPLE MAY REALIZE THAT AN RV IS ONLY A VERY SHORT TERM RESOLUTION.

I ALSO THINK THE BEST WE MAY SEE IS SOMEWHERE BETWEEN THE EURO AND POSSIBLY MID 2 PLUS. BUT I FEEL PERSONALLY IT WILL COME IN RIGHT AROUND PAR WITH THE USD, AND THEN THE MARKET WILL MAKE OR BREAK IT. I DO NOT THINK THE MARKET WILL BREAK IT. I THINK YOU WILL SEE A QUICK SURGE AND POSSIBLY HIT CLOSE TO 3 PLUS, BUT THEN WILL SETTLE BACK DOWN DRAMATICALLY BECAUSE OF THE FACT THOSE WHO BOUGHT IN LATE WILL ALSO SELL OFF, AND THE INCREASED LIQUIDITY WILL DROP THE PRICE BACK DOWN AND SETTLE ABOUT PAR WITH THE EURO. SO WE MAY HAVE A WINDOW OF OPPORTUNITY FOR SOME SERIOUS COIN.

ONCE THE OIL COMPANIES REALLY DO GET THE FIELDS RUNNING, THE PIPELINES ARE IN AND THE REFINERIES ARE FINISHED IN THE NEXT 15 MONTHS, THEN IRAQ WILL TAKE ANOTHER HUGE SURGE IN THE IQD UPWARDS, AND THEN AGAIN SETTLE CLOSE TO WHAT THEY WANT... THE $3 PLUS RATE. I BELIEVE IT WILL START AFTER THE 1ST WEEK AFTER THE EXCHANGE.