A comparative analysis of Kuwait and Iraq. The Revaluation Iraqi Dinar , at Tampa Dinar

A comparative analysis of Kuwait and Iraq. The Revaluation

Most investment consultants would tell you that there is no way Iraq can be compared to Kuwait and they are correct but they themselves do not understand the why or the how. Let me give you a background of Kuwait and how the revaluation or so they called it took place. First thing to take into consideration is that no two countries can ever be the same, its like to people you can have two people that are like minded but they will never be the same. To start off the population difference is about ten times higher in Iraq than in Kuwait. The population of Iraq is 32.8 million and in Kuwait there is just under 3 million. Secondly Iraq has many more resources than Kuwait. Iraq is 169,200 sq miles long and Kuwait is 6,880 sq miles. The only thing in common other than they are both in the middle east and both have oil is that they both have civil problems with different types of governments. Kuwait has an estimated 104 billion barrels of oil when Iraq has 143 billion proven and recently a total of 350 billion barrels according to Geological surveys and seismic data. This would bring Iraq from the second largest oil reserve to the first largest in the world and putting Kuwait as 3rd largest oil producer. In 1980 to 1988 Iraq Invaded Iran with help from the United States. In 1989 Iraq went to to OPEC and The United Nations and accused Kuwait of stealing $2.4 billion in Iraqi oil by American Companies in Kuwait drilling under Iraq. The UN said there was nothing they could do and so did the US government. So on August 2nd 1990 Iraq initiated a full invasion against Kuwait. The aftermath was the United Nations put sanctions on Iraq from August 6, 1990 just 4 days after the invasion. The United States also invaded Iraq 5 months after the Kuwaiti invasion to liberate the country from Iraq in January 1991. The aftermath was Kuwait was in ruins and the people of Kuwait got scared and left the country and removed the money they had when they left. The country still maintained its assets but with no need for Kuwaiti Dinar the currency itself dropped because of lack of trust. Not because of shortage in oil, export or other. Just because of distrust of the people. The currency dropped to .10 cents against the US Dollar from over $3.30 the currency took 13 years to get back to its value and is today sitting at $3.50 USD against one Kuwaiti Dinar.

Now lets fast forward and get back to Iraq. The several key elements are the Iraqi people did not loose trust the International community cut Iraq off because of Sadam Hussein, all assets were frozen, loans upon loans were taken out on the country by Sadam and it had Sanctions by the United Nations.

Now lets go to 2003, Iraq was invaded by the allied forces of the United States of America and Great Britain with alliance from United Nation countries. There is a full liberation from a tyrannical leader named Sadam Hussein. The international community once more opens its arms to Iraq, they are protected by multiple governments and big investors in Oil such as Shell, exxon mobile, Chevron and more. Almost all debt is forgiven and the country starts to rebuild and export again. Now come to 2013 it has been 10 years Iraq has a minimum of $15 trillion in assets, $50 billion in debt only and has stabilized its growth rate to 10% while minimizing its inflation rate to 3.61%. It has moved into the number 2 position in OPEC.

Iraq only has to make peace with Kuwait and settle its debt. Also it must revalue or float its currency.
Everything is in place for the comeback of Iraq. The world is waiting and watching.