Seeds of Wisdom RV and Economic Updates Tuesday Afternoon 8-27-24

Good Afternoon Dinar Recaps,

RIPPLE Partner Nium Adopts JP. Morgan Payments: Is an XRP integration in the Works?

▪️J.P. Morgan discloses that Nium made a breakthrough in its global expansion following a strategic partnership that made its real-time solutions available for use.
▪️Nium operates in more than 220 countries, and its cards are issued to more than 30 countries globally.

Ripple’s partner, Nium, known for seamless real-time cross-border payments for financial institutions worldwide, earlier sealed a strategic partnership with J.P Morgan Payments.

According to reports, this development has enabled the Singapore-based fintech to navigate the complex regulatory structure in Asia Pacific that initially acted as a headwind against its expansion.

As multiple sources have captured, Nium leverages J.P. Morgan Payments customized solutions, including real-time and automated cross-currency solutions, to offset the foreign exchange risk associated with its cross-border and cross-currency transactions.

According to Nium, the provided solutions have helped it address the issue of exchange rate fluctuation and long-term shifts, which threatened its financial stability, customer demand, and profitability.

Nium has also been assisted in optimizing its banking set-up to experience the necessary upgrade critical for its expansion. Most importantly, this was achieved by capitalizing on JP Morgan’s global infrastructure and resorting to local best practices.

More on the Impact of J.P Morgan on Nium

Commenting on this, the Head of Compliance APAC, Nium Joey Tang, explained how J.P. Morgan’s experience has been crucial in its journey to the top.

We need a trusted bank that can help us navigate through complex currency restrictions and provide scalable solutions that can be easily extended to new markets. This gives us the flexibility to grow our business. J.P. Morgan Payments is our natural choice.

An official report was found on the JP. Morgan’s website mentions that the collaboration has enabled Nium to witness unimaginable expansion and growth, as it operates in more than 220 countries.

 Also, it has issued cards to over 30 countries so far. In the future, Nium, assisted by JP. Morgan, would solve its existing payment challenges and unlock the full potential of the global economy.

Also, the possibility of Nium going public, as we reported last year, is still high as the company records growth in several areas of its operation.

According to Anupam Pahuja, the EVP and General Manager of APAC & MEA, Nium, the company would continue to expand as long as it closely collaborates with the bank.

Nium has grown rapidly in recent years, and we’re excited to continue expanding globally with J.P. Morgan Payments as our trusted ally.

Following this publication, XRP enthusiasts have rekindled hopes that the popular bank could collaborate with Ripple to expose the asset to similar breakthroughs.

Long time #Ripple partner Nium has begun using JPMorgan Payments to better serve their customers with collections and global FX rails. This would seem to be an alternative to #Ripple products or perhaps just additional rails for Nium’s platforms.

Last year, a JP. Morgan’s report captured how banks could leverage Central Bank Digital Currencies (CBDCs) for corporate purposes. The report highlighted Ripple, SWIFT, and the CLS Group as the entities that address the issues of such payments and delays.

Specifically, the bank acknowledged the real-time nature of the cross-border payment infrastructures that use XRP as a settlement instrument. However, it highlighted the inherent volatility issue of Ripple’s system.

High volatility of XRP leading to limited willingness from banks in using it to facilitate payments.

@ Newshounds News™

Source:  Crypto News Flash

~~~~~~~~~

MOSCOW TO HOST 6TH INTERNATIONAL MUNICIPAL BRICs FORUM

MOSCOW, August 27. /TASS/. The 6th International Municipal BRICS Forum will be held in Moscow’s Expocenter on August 27-28, 2024, the press service of the Moscow Department of Foreign Economic and International Ties said.

"The forum will be the largest international floor, where representatives of government authorities and the business will share the advance experience and discuss key issues of municipal cooperation," the press service said.

Delegations from 126 countries are expected to take part in the forum along with representatives of Russian regions. More than 5,000 participants from 500 cities of the world will discuss:

▪️current economic problems
▪️digital technology spheres
▪️environment
▪️municipal infrastructure
▪️transport
▪️healthcare
▪️education
▪️culture

@ Newshounds News™

Source:  TASS

~~~~~~~~~

The Secret To America's Takedown - Economic Ninja|  Youtube

@ Newshounds News™

~~~~~~~~~

Lynette Zang’s Ultimate Warning To SILVER Stackers! |  Youtube

Good video on the value of owning Gold and Silver.

@ Newshounds News™

~~~~~~~~~

Listen and learn from this man. He has facts and shares with us as we all wait. Share with others!

August 28, 2024 12:00 Central Noon, 1 PM ET

Listen Here - Podcast Room https://t.me/+VAm-AlWWqWPzyK8G

Replays - YouTube Currency Facts - YouTube

Ask your questions in the Living Room: Link Directly from Isaac when ask for a bio

“But understand I do not have contacts. Isaac

"I have buyers the us treasury , DOD , Admiral , HSBC several big platforms that I have signed contracts with all and they paid already for the inspection several times" Isaac

Take a look at Isaac's Photos of His Currency  LINK

@ Newshounds News™

Source:  Isaac's Call

~~~~~~~~~

Newshound's Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Newsletter

Thank you Dinar Recaps

Iraq Economic News and Points To Ponder Tuesday Morning 8-27-24

The Prime Minister's Advisor announces the imminent launch of new tax reform packages
  
Balsam Hameed   Today, Monday, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, announced the most prominent government steps in maximizing non-oil revenues, while indicating the imminent launch of new tax reform packages.
 
Saleh said, to the official agency followed by (Al-Oula News):
 
“One of the basic principles that came in the government’s approach to financial reform and which was approved by the House of Representatives in October 2022 is to maximize non-oil resources in the general budgets of the Republic of Iraq, for which goals were set.”

An amount in order for its contribution to the total revenues generated by non-oil economic activity to increase to 20 percent instead of its historical rates, which do not exceed 10 percent in the best cases.” 

 He added,  “Diversifying sources of non-oil revenues and maximizing them in public budgets is one of the biggest reform challenges in the financial and economic fields in the country.” 

He pointed out,  “These challenges come from two main factors:
 
The first is the degree to which diversification of budget resources is linked to the success of diversification in the country’s gross domestic product, especially the three agricultural, industrial, and service sectors.”  

He stated,   “The oil production sector still dominates a percentage of the components of that gross domestic product, which sometimes reaches 60 percent, which gives the national economy a rentier character and direct coexistence on the financial flows provided by the oil resource mostly alone.”

He added,  “The second factor among these challenges is related to non-governmental activity in generating gross domestic product, and we specifically mean market activity or the private sector.” 

He continued,  “The majority of the economic forces that generate income and wealth within market activity carry out their economic activities within the framework of the so-called (shadow economy), which are (gray) markets that are irregular and not known to the regulatory, tax and banking bodies as is known, and their percentage amounts to about 70 percent.” Of the total private sector activity in the country. 

He stressed that   “gray or shadow markets are one of the most important basic factors causing the decline in non-oil revenues in the country’s general budget.”  

He pointed out that   “the first step taken by the current government in maximizing non-oil revenues began by adopting a new approach to tax reform,” noting that
 
“the Council of Ministers approved earlier this year 8 new packages to reform the tax system in the country, led by the principle of expanding tax bases.”
 
“Especially those vessels that hide, evade, or neglect the annual tax accounting.” 

He stressed by saying:  “Two tax reform packages have been launched, and the
 
rest of the packages will be launched sequentially and gradually
 
within the government’s reform policy in the financial field and maximizing the state’s resources from sources of income and wealth from outside the oil sector, as this is accompanied by
 
 administrative and legislative reform and high-precision digital governance of tax institutions in areas of appreciation and collection with high transparency and efficiency.”  https://www.awla.news/مستشار-رئيس-الوزراء-يعلن-قرب-إطلاق-حزم/   

Minister of Finance stresses the importance of completing plans to regulate the work of the government banking sector

Money and business   Economy News – Baghdad  Finance Minister Taif Sami stressed, on Tuesday, the importance of completing plans to regulate the work of the government banking sector.

A statement by the ministry, seen by Al-Eqtisad News, said that "Minister of Finance Taif Sami chaired a coordination meeting with the international auditing and oversight firm Ernst & Young to follow up on the ongoing technical plans to merge and organize the work of Rafidain and Rasheed banks and insurance companies."

It added, "During the meeting, which was attended by a number of the ministry's general managers and formations, a report was presented by the auditing firm on the final stages of its work regarding organizing the work of the government banking sector, in addition to discussing the proposed plans and final implementation stages in line with the priorities of reform and development."

The Minister of Finance stressed - according to the statement - "the importance of implementing these procedures to contribute to enhancing confidence in the banking system and providing a stable financial environment that supports economic growth, which is positively reflected on the national economy in general and achieving sustainable development and stimulating growth in various sectors."

Sami explained, "The importance of benefiting from the expertise of solid international companies such as Ernst & Young in the field of regulating and restructuring financial institutions, as the ministry aims to make Iraqi banks internationally and locally acceptable to provide better services to citizens.

The auditing company's expertise will also contribute to improving the efficiency and effectiveness of financial institutions, as it is expected that merging and regulating financial institutions will improve the quality of banking services provided and enhance investor confidence in the Iraqi economy."

The statement continued, "Iraq is witnessing transformations in the government banking sector through the adoption of ambitious work programs to restructure government banks, aiming to enhance the efficiency of these banks and improve their services provided to citizens and companies and strengthen financial suitability by increasing capital and diversifying sources of income,

 in addition to improving governance by applying high standards of transparency and accountability and adopting the latest banking technologies to provide more efficient services, as well as increasing confidence in the banking sector and thus attracting foreign investments." 32 views 08/27/2024 -    https://economy-news.net/content.php?id=46822

Dollar Prices Continue To Decline Against The Dinar In Baghdad

Stock Exchange  Economy News – Baghdad  The US dollar exchange rate fell on Tuesday morning in Baghdad markets.

The dollar prices witnessed a decline with the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 149,000 Iraqi dinars for every 100 dollars, while yesterday, Monday, it recorded 149,350 dinars for every 100 dollars.

The selling prices in the exchange shops in the local markets in Baghdad recorded a decrease, as the selling price reached 150,000 dinars, while the purchase price reached 148,000 dinars for every https://economy-news.net/content.php?id=46792

Al-Araji From Brussels: NATO's Mission In Iraq Is Advisory, Not Combat

Tuesday 27 August 2024 17:51 | Politics Number of readings: 75  Baghdad / NINA / National Security Adviser Qasim Al-Araji reiterated the Iraqi government's confirmation that NATO's mission in Iraq is an advisory mission and not a combat mission.

The National Security Advisory said in a statement: "Iraq and NATO held, today, Tuesday, the first session of the High-Level Partnership Dialogue at the alliance's headquarters in the Belgian capital, Brussels."

According to the statement, a high-level official Iraqi delegation headed by National Security Adviser Qasim Al-Araji participated in the dialogue, while the side representing NATO was headed by Assistant Secretary-General for Operations and Special Coordinator for Counter-Terrorism Tom Govas, and the Secretary-General's Representative for Southern Neighborhood Affairs Javier Colomina.

The dialogue, which came at the invitation of NATO, discussed ways to enhance the partnership between Iraq and the alliance, including completing the capacity building of Iraqi security forces and other issues related to border security, combating drugs and terrorism, and the file of the Syrian Al-Hawl camp.

During the dialogue, Al-Araji reiterated the Iraqi government's emphasis that NATO's mission in Iraq is an advisory mission and not a combat mission, stressing: "The long-term partnership with NATO is to achieve Iraq's interests, fight terrorism, and develop and rehabilitate the capabilities of the Iraqi forces," stressing the importance of continuing dialogue and partnership with NATO, to achieve Iraq's interests, security and stability.

In a speech on the sidelines of the dialogue, the National Security Advisor referred to Iraq's position rejecting the killing and starvation taking place in the Gaza Strip, and that there is no security or safety except with the existence of an independent Palestinian state, stressing the importance of adopting the principle of dialogue and diplomatic channels as a way to resolve international crises and conflicts.

For their part, NATO representatives praised Iraq's pivotal role and its importance in enhancing the security and stability of the region, expressing the alliance's readiness to increase cooperation and enhance the defense capacity building package agreed upon between the two sides.

Al-Araji also extended an official invitation to NATO representatives to hold the second session of the High-Level Partnership Dialogue in the capital, Baghdad, next year. /End9 https://ninanews.com/Website/News/Details?key=1150108

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Tuesday Morning 8-27-24

Good Morning Dinar Recaps,

Cardano Founder Hints at New ‘Partner Chain’ Collaboration with Algorand: What’s Next for ADA?

▪️ Charles Hoskinson, Cardano’s CEO, praised Algorand’s blockchain technology and suggested a partnership for decentralized AI projects.

▪️ The much-anticipated Cardano Chang hard fork has been delayed to September 1, causing concerns within the community.

Cardano CEO Charles Hoskinson has expressed a strong interest in Algorand’s blockchain technology, suggesting a potential collaboration focused on decentralized artificial intelligence (AI) initiatives.

This potential collaboration can yield a lot of benefits for both Cardano and Algorand in the growing AI market.

Algorand has been receiving a lot of attention lately, and this has led Charles Hoskinson to express his opinion on the project. Furthermore, he stated that Algorand, in conjunction with a tailored proof of work suitable for AI tasks, could be a promising decentralized AI platform within the crypto market. 

This recognition from Hoskinson highlights the strategic value he sees in Algorand’s technology, particularly in its application to AI-driven projects.

Hoskinson also suggested that Algorand could be a partner chain to Cardano, a partnership he thinks can harness the full potential of Minotaur, Cardano’s proof-of-stake/proof-of-work multi-asset consensus protocol.

Such a partnership could open up new avenues of benefits that would improve blockchain networks, foster innovation, and increase its application in the sphere of AI.

Algorand CTO Responds Positively to Collaboration Proposal

In response to Hoskinson’s statements, Gary Malouf, the Chief Technical Officer of Algorand Technologies, expressed his interest in the cooperation.

Malouf pointed out that previous conversations about the integration of AI capabilities have taken place, which means that there is some level of coordination between the two blockchain networks.

In response to this exchange, Hoskinson told IOHK’s Chief Technology Officer, Romain Pellerin, to arrange a meeting to discuss the proposed collaboration. Pellerin agreed excitedly, saying that it would be great to have Algorand as a partner chain.

Although this partnership is currently nascent, the conversation between the two blockchain pioneers suggests that the partnership between IBM and Microsoft could lead to a significant integration of AI and blockchain.

Chang Hard Fork Experiences Another Delay

In another major event, the long-awaited Cardano Chang hard fork has again been delayed, with a new expected launch on the 1st of September. As we previously reported, the initial plan was to take place on August 27, but this shift has caused some concern among the Cardano community.

The Chang hard fork is a vital upgrade that will change the face of Cardano’s governance model, signifying the start of the Voltaire era and paving the way for a completely decentralized and autonomous network.

Charles Hoskinson complained about the delay, mentioning that even large exchanges like Binance have not yet announced their support for the upgrade. He especially stressed the need to adhere to the timelines, saying that all the parties should hasten their work.

In addition to the hard fork, there has been a lot of development activity in the project recently, even more than Ethereum in terms of GitHub pull requests.

This rise in activity is in line with the ongoing development of the Cardano ecosystem, whereby the developers are still working on new upgrades and projects whose intention is to improve the network.At the time of writing,

ADA was trading at $0.379, marking a 2% increase over the past 24 hours.

@ Newshounds News™

Source:  Crypto News Flash   

~~~~~~~~~

Russia plans stablecoins, 2 crypto exchanges to circumvent sanctions

Last week Russian news outlet Kommersant reported on the planned creation of two cryptocurrency exchanges for foreign payments to circumvent sanctions, citing sources.

The aim is to create stablecoins for the Chinese yuan and a BRICS currency basket. It’s expected that initially individuals won’t be able to take part, given the goal is to support importers and exporters.

Russia passed legislation in late July allowing cryptocurrency exchanges to operate as part of cryptocurrency experimental legal regime (ELR) under a program developed by the central bank.

The use of stablecoins rather than un-backed cryptocurrencies makes sense given the central bank’s role.

UPDATE:  shortly after publication, Bloomberg said that preliminary tests start this weekend, citing sources. These trials will use the National Payment Card System to swap rubles for any cryptocurrencies using an existing crypto exchange.

Use of the card system gives the central bank oversight. The outcome of these preliminary tests will determine steps around the potential creation of crypto exchanges next year, as described below. Bloomberg’s sources reiterated the same two exchanges.

The Kommersant article was a little controversial. It stated that one of the cryptocurrency exchanges might involve the Moscow Exchange. The other exchange will use the St. Petersburg Currency Exchange (SPCE) database for foreign economic activity.

While the currency exchange disputed this point, it would make sense to use its database, given the currency exchange knows the details of the importers and exporters. Interfax, the state news agency, published a report in which the St. Petersburg Currency Exchange (SPCE) strongly denied involvement.

The Moscow Exchange runs the main currency exchange, but trading in dollars and euros came to an abrupt halt in June when OFAC placed it on the sanctions list. Hence, it also has data on who might qualify as a professional for FX trading in stablecoins.

There may be some confusion between two entities that we suspect are not related. The sanctions and sanction busting sometimes resemble Whac-A-Mole. Every time Europe or OFAC sanctions an entity or methodology, Russia tries something else.

Russia has iterated through foreign branches, digital financial assets involving tokenized commodities, CBDC, crypto and others. The foreign branches are gradually getting sanctioned, with warnings not to open new ones. And most of the digital financial asset (DFA) issuing platforms and known cryptocurrency exchanges have also been sanctioned. Sanctions announced this week cover commodities.

Sanctions and two similar sounding Russian entities

There are two Russian entities with similar names. There is the Saint Petersburg Currency Exchange known in English as SPCEX or SPVB and in Russia as JSC SPB, versus the Saint Petersburg Stock Exchange (PJSC SPB). OFAC sanctioned the stock exchange in November 2023. We don’t think the currency exchange has yet been sanctioned directly, but there’s a caveat.

It is believed that state owned bank Promsvyazbank controls the currency exchange. The bank was one of the first on the sanctions list, which includes subsidiaries and hence the currency exchange.

However, as the ownership isn’t entirely clear, it’s conceivable the currency exchange may have been ignored so far. That may be why it doesn’t want to be associated with the crypto exchange.

Google translates the currency exchange acronym СПВБ as the Saint Petersburg Stock Exchange.

On the other hand, the sanctioned stock exchange is registered as a digital financial assets platform. In a May interview, its CEO said its involvement as a cryptocurrency exchange operator was under discussion. However, we believe it’s the currency exchange that has the useful data.

While the Russian end isn’t clear yet, nor is the other side. If Russia wants to use a Chinese currency stablecoin, what assets would form part of the reserves? Likely it will use the excess reserves Russia received for all payments.

Which cryptocurrency exchange will be used on the Chinese end? Will China allow some off-ramping from a stablecoin to the mainland? Or will it be via Hong Kong?

An even bigger question is this: in the absence of CBDC, could stablecoins form the interim foundation of the so-called BRICS Bridge for local currency payments?

@ Newshounds News™

Source:  Ledger Insights

~~~~~~~~~

They Are Taking Our Silver  |  Youtube

@ Newshounds News™

~~~~~~~~~

Newshound's Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Newsletter

Thank you Dinar Recaps

"Tidbits From TNT” Tuesday 8-27-2024

TNT:

Tishwash:  Sudanese meets Sisi

Prime Minister Mohammed Shia Al-Sudani arrived at the Alamein Presidential Palace in Egypt.

He was received by the President of the Arab Republic of Egypt, Abdel Fattah El-Sisi, and they will discuss "the overall bilateral relations between the two countries, and the latest international developments in the region. He will also hold extensive discussions with his Egyptian counterpart on enhancing joint cooperation in various fields and sectors."

Al-Sudani arrived in Egypt this morning, accompanied by a ministerial delegation.  link

************

Al-Sudani begins official visit to Egypt and Tunisia

Prime Minister Mohammed Shia Al-Sudani began an official visit to the Arab Republic of Egypt and the Republic of Tunisia on Tuesday morning.

This came in a brief statement issued by Al-Sudani's media office without going into further details. link

************

Tishwash: Revealing the main currency used in Iran's trade with Iraq

 Shaaban Forotan, a member of the board of directors of the Iranian-Iraqi Joint Chamber of Commerce, revealed today, Tuesday, that the largest part of trade between Iraq and Iran, in terms of traders and exporters, is carried out through the Iranian riyal.

"Most Iranian exporters now work in riyals in trade with Iraq, and financial transactions between the two countries will continue without using the Iranian riyal, i.e. also in dollars. This does not mean the complete elimination of the dollar, but a large portion of traders conduct their transactions without the dollar," Forotan said in statements to Iranian media.

He explained that "the commitment to trade in dollars does not include all product groups, but the exchange of riyals into dollars cannot be implemented due to the sanctions imposed on banks, and riyal traders earn from selling goods in the Iraqi market through their contacts with the stock exchanges of Iraq and Iran or a third country such as the United Arab Emirates, and they do not have the possibility of direct settlement."

He pointed out that "the supply of Iranian goods faced a problem in the Iraqi market, which is the multiple increase in the prices of goods in Iran during the year, while it is expected that prices will increase only once a year   link

************

Tishwash:  Economist: Iraq Stock Exchange suffers from lack of liquidity

Economic expert, Saif Al-Halfi, confirmed that the Iraqi Stock Exchange is currently suffering from a lack of liquidity, due to the weak confidence of foreign investors in the Iraqi market.

Al-Halfi told Al-Eqtisad News that the Iraqi stock market suffers from a lack of liquidity, as trading rates are still relatively low compared to other markets in the region, noting that the daily trading volume may reach 3 billion dinars per day in the best case.

He stressed that the market value of the companies listed on the market exceeds 12 trillion dinars.

Most listed companies are seeing their shares decline as a result of lower demand and the exit of a number of foreign investors from the market.

Al-Halfi pointed out that foreign investors' confidence in the Iraqi market is still low due to unstable political and economic factors, as well as the lack of legal and procedural facilities for opening accounts for foreign investors, in addition to the weakness of the infrastructure in electronic trading.

  He pointed out that the lack of technology and modern financial infrastructure, including digital banking services and advanced electronic trading platforms, affects the efficiency of the market and its ability to attract investors, and that the development of the banking system will be positively and directly reflected in the development of the performance of market indicators.

Al-Halfi stressed the government's role in promoting the stock market through economic reforms, supporting small and medium enterprises, and encouraging foreign investments.

Al-Halfi concluded his speech by saying that the Iraqi stock market reflects a complex reality that can be described as a mixture of pain and sadness as a result of the great challenges it faces, with some opportunities for joy and profits if the economic and political conditions improve  link

************

Al-Mandlawi: Iraq focuses on the economic and investment aspect through concluding bilateral international agreements

Acting Speaker of the Council of Representatives, Mr. Mohsen Al-Mandalawi, confirmed today, Monday, that Iraq is focusing on the economic and investment aspect by concluding bilateral international agreements.

Al-Mandlawi's office said in a statement received by the Iraqi News Agency (INA), "Acting Speaker of Parliament Mohsen Al-Mandlawi met, at his residence today, Monday, with the US Deputy Ambassador to Iraq, and the Director of the Political Section at the Embassy, ​​Michelle Siders, and the accompanying delegation, to discuss a number of files of mutual interest, and to discuss the latest developments in the region."

He added that "during the meeting, the future of joint relations was discussed, and ways to develop them to serve the interests of the two friendly peoples, and the emphasis was placed on Iraq's keenness to establish balanced relations with its regional and international surroundings based on cooperation and mutual respect, and contributing to the country's growth and progress and achieving the people's hopes and aspirations."

Al-Mandlawi pointed out that "Iraq is currently looking forward, after the security situation has stabilized and ISIS gangs have been eliminated, to focusing on the economic and investment aspect through solid bilateral agreements and understandings capable of achieving comprehensive economic development in the country   link

************

Mot: things that make you go hmmmm 

Mot: Beeeeee Aware! - Just in Case!!!! 

MilitiaMan: IQD Dinar Update - Global Economics - Investments - Developments - Laws - Non - Oil Revenue - Water

IQD Dinar Update - Global Economics - Investments - Developments - Laws - Non - Oil Revenue - Water

MilitiaMan and Crew:  8-26-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=TyNvf8WuyHE

Seeds of Wisdom RV and Economic Updates Monday Evening 8-26-24

Good Evening Dinar Recaps,

New Study Reveals How IOTA Technology Can Boost Security for Smart Homes and Protect IoT Devices from Cyberattacks

▪️ Ripple has minted the first 185 tokens of its RLUSD stablecoin onA new study by the University of Mosul details how IOTA improves security for smart homes to protect Internet of Things (IoT) devices from cyberattacks.

▪️ Ripple has minted the first 185 tokens of its RLUSD stablecoin onThe study proposes a new lightweight authentication model based on IOTA’s Tangle for an IoT-based smart house monitoring system.

We’re living in the era of the Internet of Things, with over 17 billion IoT devices today, a number that’s expected to double by the end of the decade. As the devices surge, so does the danger lurking from cyber criminals, and according to a new study, IOTA offers the best security for this sector.

Today, IOTA caters to several industries, from supply chain management to tokenization, as founder Dominik Scheiner told CNF in an interview earlier this year. 

However, at its founding, the network mainly targeted the machine-to-machine economy enabled by the Internet of Things. And despite diversifying, it remains the best network for IoT.

IOTA’s superiority was backed by a recent report by two researchers from the computer science department at the University of Mosul in Iraq. The two, Sameera Abbas Fadhel and Dr. Ahmed S. Nori, acknowledged that while blockchain offers superb data integrity and security, its “limitations in terms of scalability, throughput, and storage capacity” make blockchain “an unsuitable option for devices with limited resources in the IoT environment.”

The two proposed a new lightweight authentication model for an IoT-based smart house monitoring system that’s based on the IOTA Tangle and utilizes other technologies, such as decentralized identifiers and stronghold vault technologies.

IOTA for IoT

IoT is changing the world, enabling automation and efficiency by allowing devices to communicate autonomously. It’s impacting healthcare through remote monitoring, smart cities through automated administration processes, consumer experience through personalised interactions and much more.

However, researchers warn that IoT devices could be the next big target for hackers. According to one study by the World Bank, Europe, and APAC regions experience around 70 IoT attacks weekly per organization.

This makes security the most critical requirement for IoT networks, and according to the two researchers, IOTA may be the solution.

They believe that IOTA’s Directed Acyclic Graph (DAG) based technology “enhances the transactional throughput, decreases transaction confirmation time, minimizes control consumption and removes transaction charges, hence being more suitable in the IoT setting.”

One of IOTA’s advantages is feeless transactions. The network requires a user to approve two previous transactions in lieu of paying a fee, “thereby increasing the engagement of users in protecting the network without charging.”

And then there’s the scalability, where IOTA is unmatched by its peers, and with billions of devices and, potentially, trillions of daily transactions, IoT can only work on a network that scales massively.

The researchers stated:

Moreover, unlike the blockchains fixed to traditional single chain processing of transactions, IOTA works with the structure called Tangle which enables parallel processing of the transaction. This design greatly enhances the system‟s generated throughput and scalability which makes IOTA capable of accommodating a larger number of users and transactions in its network.

IOTA trades at $0.1404, dipping 2.9% in the past day.

@ Newshounds News™
Source:  Crypto News Flash

~~~~~~~~~

THIS IS NOT A CONSPIRACY THEORY

Countries are accelerating their efforts in crypto exchanges, stable coins, and gold stockpiling, all while developing central bank digital currencies.

This is not a conspiracy theory.

These are all facts.

Connect the dots.

@ Newshounds News™ https://t.me/+PRwSMqsjRVViOTVh

Source: X Gold Telegraph: https://x.com/goldtelegraph_/status/1828106418735718831?s=46

~~~~~~~~~

PIC

Listen and learn from this man. He has facts and shares with us as we all wait. Share with others!

August 28, 2024 12:00 Central Noon, 1 PM ET

Listen Here - Podcast Room https://t.me/+VAm-AlWWqWPzyK8G

Replays - YouTube Currency Facts - YouTube

Ask your questions in the Living Room: Link Directly from Isaac when ask for a bio

“But understand I do not have contacts. Isaac

"I have buyers the us treasury , DOD , Admiral , HSBC several big platforms that I have signed contracts with all and they paid already for the inspection several times" Isaac

@ Newshounds News™

~~~~~~~~~

Newshound's Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Newsletter

Thank you Dinar Recaps

Iraq News Highlights and Points To Ponder Monday Evening 8-26-24

Secrets” Of The Theft Of The Century... “Iraq Observer” Publishes The Full Story From A To Z

 August 26, 2024  Baghdad/Iraq Observer   A secret report prepared by the Iraqi General Tax Authority revealed the full story of the theft of tax deposits, or as it is known as the “theft of the century,” while  highlighting the role of Nour Zuhair, the most prominent accused of the theft.

 According to the report, which was reviewed by “Iraq Observer”, “after auditing the Authority’s deposit account in Rafidain Bank No. (60032), the facts contained became clear to us,” indicating that “during the period from (September 9, 2021) to (August 11, 2022). ) A total amount of three trillion, 701 billion and 380 million Iraqi dinars was withdrawn from the tax deposit account.

He added,  “The amount was withdrawn using 247 bank instruments by third parties that do not represent the original depositing parties nor the General Tax Authority,” pointing out that  “the parties to whom the total amount was disbursed are five companies, namely:

 A. Al Qant General Contracting

for. Humpback Whale General Trading

T. Baghdad Winds General Trading

 Th. Innovators for oil services

C. Badia Al Masaa General Trading.

According to the confidential report prepared by the General Tax Authority, it was found that  “the five companies in whose names these amounts were withdrawn are owned by only two people, namely Nour Zuhair Jassim and Abdul Mahdi Tawfiq Mahdi.” 

The report indicates that  “during the period referred to (September 9, 2021 to August 11, 2022), the five companies withdrew the amounts listed below:

A. Al-Qant General Contracting Company:  1.185 trillion dinars

 for. Humpback Whale General Trade Company:  982 billion dinars

 T. Badia Al Samaa General Trading Company:  624 billion dinars

 Th. Baghdad Winds General Trade Company:  477 billion dinars

 C. Mbdoun Oil Services Company:  433.015 billion dinars

 He stated that “all the amounts withdrawn from its bank account were withdrawn in cash and by hand,” pointing out that  “the largest instrument disbursed was in the amount of 44 billion dinars, and that the smallest instrument was in the amount of 10 million dinars, and the  companies that withdrew the funds had no tax deposits.” 

He noted that  “the five companies are newly established companies with small capitals.  The two companies, Al-Qant and Mbdoun, were founded in 2021, and  the other three companies were recently established.”  

  https://observeriraq.net/خفايا-سرقة-القرن-عراق-اوبزيرفر-تنشر/     

Iraq Is The Ninth Country In The World To Buy Gold In 2024

Posted On 2024-08-26 By Sotaliraq   Recent statistics revealed that Iraq ranked ninth globally among the top 10 countries buying gold this year. Gold refers to converting foreign currency reserves into gold.

According to statistics, Iraq bought 100 tons of gold this year, coming in ninth out of the top 10 countries buying gold this year, compared to 1298 tons bought by Russia, as interest in buying gold is increasing amidst rising geopolitical tensions and economic fluctuations.

Gold hit an all-time high of $2,531.75 an ounce after breaking above $2,500 for the first time this month amid growing expectations that the Federal Reserve is close to cutting interest rates. LINK

19 Trillion Dinars in the Wind: Where Does Iraq’s Electricity Money Go?

August 25, 2024   Baghdad/Al-Masala: The electricity problem in Iraq is one of the most prominent issues that has troubled citizens and aroused their discontent over many years.

Despite the enormous natural resources and large budgets allocated to this sector, the electricity situation is still suffering from severe deterioration.

Iraq suffers from a severe shortage of electricity with increasing demand, which directly affects the daily lives of citizens and hinders economic and social development in the country.

The electricity dilemma in Iraq is manifested through continuous power outages and the instability of the electrical grid, which causes widespread discontent among citizens.

This situation raises many questions about how the funds allocated to improve the electricity sector are spent, especially with the continuous increase in financial allocations to this sector.

In 2023, the Ministry of Electricity’s allocations amounted to about 15 trillion dinars, while it rose to about 19 trillion dinars in 2024. However, the country’s energy production levels are still at their lowest.

Retired electrical engineer Ali Al-Hussain spoke about the reasons behind this worsening crisis, saying: “From my experience in this field, I can say that the main problem lies in corruption and mismanagement.

There are projects that were announced but were not implemented on the ground, and others were implemented at exorbitant costs without achieving tangible results.

In addition, there is a lack of good planning and an unfair distribution of available energy, which leads to the damage of areas most in need of energy, such as Karbala, which received millions of pilgrims during Arbaeen and was unable to provide stable electricity.”

Citizen Ahmed Al-Ali expressed his dissatisfaction with the current situation, saying: “We are paying the price for mismanagement and corruption. How can we spend all this money and not see any improvement in the electricity situation?

Life has become very difficult with the frequent power outages, and our children suffer in the extreme heat in the summer and the bitter cold in the winter. We demand that those responsible be held accountable and that radical solutions be provided to this disastrous situation.”

Corruption And Mismanagement

Statements by the member of the Parliamentary Legal Committee, Mohammed Al-Khafaji, indicate the existence of major suspicions of corruption in the management of the electricity file in Iraq, as he described the allocations of the Ministry of Electricity as “the theft of the century.”

Al-Khafaji called for the Minister of Electricity to be questioned to investigate the country’s deteriorating energy situation, which reflects a general dissatisfaction with the government’s performance in this area. Corruption and mismanagement do not stop at inefficient spending, but extend to the lack of effective oversight mechanisms to ensure that funds are properly directed and projects are implemented efficiently.

As the electricity situation in Iraq continues to deteriorate, a solution remains elusive unless corruption and mismanagement are seriously addressed.

There is an urgent need for comprehensive structural reforms in the electricity sector, including the development of long-term strategic plans and the activation of the role of oversight and accountability to ensure the improvement of electricity services for citizens, while Iraq needs wise leadership and bold decisions to save this vital sector from the ongoing crises and achieve sustainable development https://almasalah.com/archives/99284

Parliament Knows Nothing About The "Saudi Investment Protection" Law.. What Is Its Impact On Iraq? - Urgent

Economy | Baghdad Today – Baghdad  Member of Parliament, Jawad Al-Yassari, confirmed today, Monday (August 26, 2024), that Parliament does not know the details of the Saudi Investment Protection Law that is scheduled to be legislated during the next stage.

Al-Yassari told Baghdad Today that "the Iraqi parliament has not yet reviewed the Saudi investment protection law that is scheduled to be legislated during the next stage," noting that "it is certain that this law will go through several stages of study and discussion before it is passed."

He added, "Iraq has good investment laws, and we do not believe that there is a need to legislate an investment law specific to a particular country," noting that "this step will open the door to the country that wants its own law, and this will be at the expense of Iraq, as there are fears about this matter."

He added: "But there may be agreements to protect investors' money, and this is a natural right for any investor, especially since Iraq is going through conditions that are still unstable."

He continued: "We are waiting for the draft law to be presented to the House of Representatives, which will be submitted by the government, for the purpose of reviewing it and knowing its paragraphs and what they include, so that it can be discussed to determine the extent of the necessity of legislating such a law specific to Saudi investments, and how it is possible to protect those investments with a law that is binding on Iraq to implement."

Iraq is preparing a draft law to protect Saudi investment, with the aim of submitting it for discussion in Parliament, in preparation for its approval in the coming months, with the aim of enhancing economic cooperation between the two countries.

This was announced during a meeting between the Chairman of the Federation of Saudi Chambers, Hassan bin Mujib Al-Huwaizi, and the Chairman of the Iraqi-Saudi Friendship Committee in the Iraqi Parliament, Shaalan Al-Karim, and his accompanying delegation, as part of an official visit to the Kingdom.

Regarding the impact of the law, experts confirm that after its approval, there will be a gradual increase in the level of trade exchange between the two countries, which currently exceeds approximately one billion US dollars per year, with a growth rate estimated at around 10% annually.

On July 18, 2023, the Iraqi Council of Representatives postponed voting on (the draft law to ratify the agreement on the encouragement and mutual protection of investments between the government of the Republic of Iraq and the government of the Kingdom of Saudi Arabia), and it has not been included on the Council’s agenda yet.

Economic relations between Iraq and Saudi Arabia are diverse in different fields, especially in the energy sector; where a $27 billion agreement was signed last year to develop a solar power plant, with the participation of TotalEnergies, and the Saudi company ACWA Power was invited to join part of this deal. LINK

Iraq Economic News and Points To Ponder Monday Afternoon 8-26-24

Hidden Forces Of Speculation"... Economist Reveals New Reason For Dollar's Rise

Time: 2024/08/26 18:54:04 Read: 1,248 times  {Economic: Al Furat News} An economic expert revealed a new reason behind the rise in the dollar exchange rate against the dinar.

Bassem Jamil Antoine told Al Furat News Agency, "Regarding the rise in the dollar exchange rate and its remaining at its current rates in the parallel market, it is the result of forces "behind the curtain" or what is known as the "hidden state" of speculators and traders, as they are the ones trying to keep prices at these rates."

He considered the government measures "weak in the face of these speculators and currency traders, as they were unable to limit the rise in exchange rates because of them and their actions and their possession of power, strength and money, and they are the ones who determine prices," according to him.

****************************

Jamil believed that "as long as these hidden parties exploit the country, the exchange rates will remain the same."

It is noteworthy that the dollar exchange rate in the local markets (parallel) is recorded at about 1,490 dinars, a large difference from the official price sold by the Central Bank of Iraq, which is 1,320 dinars.

The Governor of the Central Bank of Iraq, Ali Al-Aq, announced on August 7 that "there is no intention to reconsider the dollar exchange rates," noting that "the Central Bank sells more than 250 million dollars daily at the official price {1,320 dinars}."

He said, "The view that the dollar price has risen or fallen is not a correct indicator."  LINK

More than $275 million in sales from the Central Bank of Iraq today

Monday 26 August 2024 15:25 | Economic Number of readings: 206  Baghdad/ NINA / The Central Bank of Iraq's dollar sales, on Monday, amounted to more than $275 million in the currency auction.

According to a statement by the bank, it sold $275,296,899 in today's auction, covering it at a basic exchange rate of 1,310 dinars per dollar for documentary credits and international settlements for electronic cards, and for foreign transfers, and at a rate of 1,305 dinars per dollar in cash.

He added: "Most of the dollar sales went to strengthen balances abroad in the form ofalmost ready with one transfers and credits, which amounted to $265,246,899, an increase of 96% over cash sales of $10,050,000."

He pointed out: "One bank bought cash dollars, while the number of banks that met requests to strengthen balances abroad was 16 banks, and the total number of exchange companies participating in the auction was 11 companies." https://ninanews.com/Website/News/Details?key=1149925

Economist: Government Fails to Secure Necessary Investments to Finance 'Development Road'

Economic expert Ziad Al-Hashemi   Construction and reconstruction  Economy News – Baghdad  Economic expert, Ziad Al-Hashemi, revealed on Monday that the government failed to secure the investments required to finance the development road project.

*******************************

Al-Hashemi stated in a post on his personal Facebook page, followed by "Al-Eqtisad News", that "the first victim of the failures of the Development Road Project - news of the dismissal of the Director General of the Iraqi Railways, who boasted in one of the meetings with me that he had a feasibility study for the Development Road Project that included 27 volumes."

He added that "it seems that the internal differences and problems related to the method of managing the Development Road Project file have begun to appear on the surface in the form of dismissals."

Al-Hashemi stressed that "the government's failure to secure the necessary investments to finance the project revealed many flaws in the way this project is managed"

and considered that "as a quick and logical solution, the government should focus on extending and establishing the land highway linking with Turkey and postponing the railway line until the conditions are right to truly launch the wheel of development."

It is noteworthy that the Minister of Transport, Razzaq Muhaibis Al-Saadawi, dismissed the Director General of Railways, Younis Khaled Jawad, and appointed Jabbar Aliwi Lahis as his replacement. https://economy-news.net/content.php?id=46759

Iraq Dominates List Of UAE Export Destinations

August 26, 2024  Dubai - Al Zaman  The Vice President of the UAE, Prime Minister and Ruler of Dubai, Mohammed bin Rashid Al Maktoum, revealed that Iraq has become a front for Emirati exports during the current year.

Al Maktoum wrote in a post on the X platform that (exports in just 6 months reached what was exported in a whole year before Corona in 2019), adding that (at a time when the global growth rate of foreign trade reached about 1.5 percent, the growth in our foreign trade reached 11.2 percent annually),

stressing (non-oil exports grew by 25 percent, and the goal was to achieve 3 trillion dirhams in non-oil foreign trade by the end of this year), and he continued that (economic relations with various countries have been consolidated, as trade with India increased by 10 percent, with Turkey by 15 percent, and with Iraq by 41 percent, to become the first destination for Emirati exports,

followed by India, Turkey and other countries), stressing that (several years ago we announced our national economic goals, and we confirmed that our foreign trade target for the year 2031 is 4 trillion dirhams annually).  LINK

https://www.azzaman.com/%d8%a7%d9%84%d8%b9%d8%b1%d8%a7%d9%82-%d9%8a%d9%87%d9%8a%d9%85%d9%86-%d8%b9%d9%84%d9%89-%d9%82%d8%a7%d8%a6%d9%85%d8%a9-%d9%88%d8%ac%d9%87%d8%a7%d8%aa-%d8%a7%d9%84%d8%b5%d8%a7%d8%af%d8%b1%d8%a7%d8%aa/

******************************

The Ministerial Council For Economy Discusses Its Agenda And Takes The Necessary Decisions Regarding It

Ministerial Council for Economy  Money and business  Economy News – Baghdad  On Monday, the Ministerial Council for Economy discussed the items on its agenda and took the necessary decisions regarding them.

A statement by the council, seen by "Al-Eqtisad News", stated that "Deputy Prime Minister, Minister of Foreign Affairs, Chairman of the Ministerial Council for the Economy, Fuad Hussein, chaired the twenty-sixth session of the Ministerial Council for the Economy,

which was held in the General Secretariat of the Council of Ministers building in the presence of the Deputy Prime Minister, Minister of Planning, Ministers of Agriculture, Trade, Labor, Social Affairs and Industry, the Secretary-General of the Council of Ministers, and the Prime Minister's Advisors for Economic and Legal Affairs.

He discussed the items on his agenda and took the necessary decisions regarding them."

The statement added that "the council hosted the Mayor of Baghdad to discuss the project to implement the sewage transmission line in the northeastern side of Rusafa (the Khansa line extending from the Habibiya pumping station to the Fadhiliya area on the banks of the Diyala River with the implementation of the lifting station and treatment project)",

and the council listened to "a briefing presented by the Mayor of Baghdad on the conflicts and problems that hinder the completion of this important project, which serves the people of Rusafa and contributes to treating sewage water and reducing the percentage of pollution in river waters."

The statement indicated that "the council decided to recommend to the Council of Ministers to approve the request of the Baghdad Municipality to complete the project and stop all legal procedures between the Baghdad Municipality and the implementing company, provided that the project is completed according to high specifications and is subject to examination and auditing by the competent authorities."

The statement continued, "the council also discussed the integrated package for regulating import trade, and expressed its observations on it and referred it to the specialized committee formed in this regard." The council also approved "the proposal of the Ministry of Industry after obtaining the approval of the Central Bank of Iraq, so that the export of industrial products is by the manufacturing company or exporting commercial companies."

The statement concluded, "the council also decided to recommend to the Council of Ministers to approve the minutes of the committee specializing in repaying bad debts owed by the private sector to the Trade Bank of Iraq, by granting the authority to the Board of Directors to reschedule bad debts as well as reduce the interest rate for those who default on payment if they pay the full amount of the debt."  76 views   08/26/2024 - https://economy-news.net/content.php?id=46768

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Some “Iraq News” Posted by Clare at KTFA 8-26-2024

KTFA:

Clare:  Mahmoud Al-Mashhadani announces the resolution of the dispute over the presidency of Parliament and the majority’s approval of his nomination for the position

8/25/2024- Baghdad

MP Mahmoud Al-Mashhadani announced today, Sunday, the resolution of the dispute over the presidency of the parliament and the majority’s approval of his nomination for the position. Al-Mashhadani said, via the “X” platform: “I am pleased and honored by the approval of the majority of the national spectrum consisting of members of the House of Representatives to nominate me for the presidency of the House of Representatives and the resolution of the dispute over that.”

He added: "I pledge to them that I will preserve this trust and be with them and for all of them according to what the public interest requires." He concluded by saying: "The homeland comes before the component and the component comes before the political entity." LINK

Ryan1216:  Clare is Mahmoud officially the new president of parliament?

Clare:  NOT YET  ... ONLY NOMINATED, BUT THE NOMINATION PROCESS WAS  CAUSING THE DISPUTES & DELAY. I AM PRETTY SURE THIS IS WHO SUDANI WANTS. IMO

************

Trade: Opening of five central markets and food outlets soon

8/26/2024- Baghdad

The Ministry of Trade will open five central markets and food outlets in Baghdad in the coming few days.

The official spokesman for the ministry, Mohammed Hanoun, said in an interview with "Al-Sabah", followed by "Al-Eqtisad News", that the ministry is close to opening two central markets, one in Al-Bayaa and the other in Al-Salihiya in Baghdad, in addition to three marketing centers affiliated with the General Company for Foodstuffs Trade located in Al-Hurriya, Jamila Market, and Al-Rusafa Marketing Center.

He added that the establishment of these projects was done according to modern designs, and includes all basic marketing commodities at cost price, including meat, chicken, liquid milk, zero flour, and cheese. Hanoun explained that the opening of marketing outlets played an important role in stabilizing the prices of basic food commodities in local markets.

He pointed out that the ministry is working to rehabilitate the central markets in the governorates and make them marketing centers to provide services to the families of martyrs, members of the armed forces, state employees, retirees, and families covered by social care.

Hanoun pointed out the adoption of electronic payment systems, and that employees and retirees can obtain loans ranging between 10 and 25 million dinars for the purpose of purchasing their basic needs from marketing outlets and in installments.  LINK

************

Clare:  British company wins contract to supply solar power plant for oil field in Basra

8/26/2024

British company Hydro-C has won a contract to design and supply a solar power plant for the Majnoon oil field in Basra Governorate. According to a statement issued by the Iraq-British Business Council (IBBC), a copy of which was received by Al-Eqtisad News, the project will be implemented for the benefit of the Basra Oil Company (BOC), which is operated by Antonoil Services and KBR.

The plant, which will be imported from the United Kingdom and installed in Iraq, is part of the plan of the Iraqi Prime Minister, Mohammed Shia Al-Sudani, and the Minister of Oil, Hayan Abdul-Ghani, to support sustainable energy projects and combat climate change.

After a six-month technical and commercial evaluation process, Hydro-C has officially been awarded the project, which can be developed and replicated in major oil and gas fields in Iraq.

Hassan Hashmat, CEO of Hydro C, said, “This is great news for many people, including our stakeholders, and especially the Iraqi people, as we begin the transition to green energy in the country and provide a much-needed source of electricity,” adding that “this will enable British companies to develop local skills in Iraq and help the country build sustainable green energy projects.”

"IBBC is delighted to see Hydro-C take control of this important and innovative new energy sector. After many months of work and extensive preparation by Mr Hashmat, this project is a model of what is possible for the future and will benefit all those involved in the green transformation,” commented Christophe Michels, Managing Director of the Iraq-Britain Business Council (IBBC), calling it “a win for the UK, IBBC, Iraq and in particular Hydro-C.”   LINK

************

Clare:  3 versions raise controversy.. What is the truth about adding 15 trillion to the budget "secretly"?

8/26/2024  Baghdad

More than 80 days have passed since the parliament voted on the Iraqi budget tables for 2024, but the tables are still absent from the pages of the official Gazette of the Ministry of Justice to enter into force. The reason for this is the existence of 3 different versions of the budget tables, which appear to have been discovered only 10 days after the vote on the tables, but the matter remained hidden until it was revealed more than a month later, specifically on July 13.

What does Parliament mean by "amended schedules" after its vote?

On June 3, the House of Representatives voted on the 2024 budget tables, and said at the time that “the estimates of the 2024 general budget tables, its attachments, and the deficit financing tables were approved, and the Council of Ministers was granted the authority to transfer an amount of (2) trillion dinars from the investment budget allocations for the ministries and add it to the regional development allocations for the governorates not organized into a region, and it is distributed according to the population ratios and poverty rates in each governorate.”

According to the wording of the Council’s statement using the phrase “the estimates of the tables were approved”, the statement can be read as “the tables were approved as received from the Council of Ministers”, but the statement carried the phrase “the tables of the Federal General Budget Law No. (13) of 2024, as amended, were voted on”, and it is not known what Parliament means by the term “amended”, and whether it was amended by Parliament after it was received from the Council of Ministers, or does it mean amended by the Council of Ministers compared to the 2023 budget tables, considering that it is a three-year budget?

"The bomb explodes" after 40 days.. 15 trillion were added "secretly"

Only a week later, on June 11, local media outlets reported statements by the spokesman for the Ministry of Justice, Ahmed Laibi, stating that “the Ministry of Justice has addressed the Council of Representatives to send the budget tables for publication in the Official Gazette.” At the same time, sources reported that the tables were returned from the Council of Ministers to the Council of Representatives “for the purpose of conducting an audit of some articles and paragraphs of the law.”

A month later, specifically on July 11, statements were issued by MP Baqir Al-Saadi, in which he said that there were some minor comments on the budget, so it was returned to Parliament, and amendments would be made to it by a specialized committee after the tenth of Muharram and sent to the Council of Ministers again.

Then, only two days later, on July 13, came the first official revelation of the manipulation of the budget tables, through the member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, who confirmed that the budget had been returned to the House of Representatives to make some amendments, after the Council of Ministers discovered a difference in the version of the budget sent from the House of Representatives to the Council of Ministers, despite the fact that the House of Representatives voted on the tables as they were received from the Council of Ministers without amendment, indicating that the difference raised the budget from 211 trillion dinars to 226 trillion dinars.

It is clear from Al-Kadhimi's statement that 15 trillion dinars have been added to the budget expenditure schedule, but it is not known under which headings these amounts were added, which raise the size of expenditures by 7%.

However, leaked information indicates that the additions included increasing the amount of the ration card by an additional 5 trillion dinars, and financial increases for the Ministry of Electricity and some governorates.

Original government copy.. and two parliamentary copies

Meanwhile, the government was not completely silent, but it delayed sending a letter of inquiry to the House of Representatives until about a month had passed. While the budget was voted on on June 3, and the budget was sent to the Council of Ministers on June 10, Al-Sudani’s office sent a letter of inquiry to the House of Representatives on July 1, but this letter was not leaked to the media until July 20.

The book included that the House of Representatives’ decision states that the budget tables were voted on as received from the government, but the paper copy attached to the House of Representatives’ book, which confirmed “voting on the tables as received,” differs from the tables that were actually sent from the government to the House of Representatives. The electronic copy on the CD also differs from the government’s version and the paper copy sent by the House of Representatives.

Accordingly, this means that there is a government version of the budget tables that is supposedly voted on by Parliament as is, as well as two versions, “paper and electronic,” coming from Parliament, both of which differ from the original government version that is supposedly voted on by Parliament as is.

Leaking... a means of pressure for a late response?

The day after the leak of the government’s letter to the parliament speaker, specifically on July 21, the speaker of parliament sent a response to the government, even though the letter of inquiry was issued by the government on July 1, and it appears that the parliament speaker did not respond during this period, which raises the possibility that the government deliberately leaked the letter after 20 days to pressure the parliament speaker for the purpose of a late response.

The Parliament Presidency’s response letter confirmed that the tables sent to the General Secretariat of the Council of Ministers are the same as those sent by the government, after approving the tables as received from the government without any change.

About 4 MPs were shot...and then Al-Mandlawi

Since July 20 until now, the talk about the story of tampering with the budget tables has been going on and on, and some pages have accused MP Mustafa Sand, Adi Awad, and Mohammad Nouri of tampering with the tables. Sand responded by denying his interference in this matter, indicating that what happened is that some MPs may have written “their own tables and made transfers by adding money to their governorates or other sections as suggestions,” but the decision of the parliament speaker was to vote on the tables as they came from the government, and this closes the door to any other additions by the MPs, considering that “the matter has no effect and the government has exaggerated the issue.”

In contrast, MP Basem Khashan considered that the proven manipulation of the budget may end the membership of the acting Speaker of Parliament, Mohsen Al-Mandalawi, by filing a lawsuit before the Federal Supreme Court, as he is the one who signed the Parliament’s voting decision and the tables sent to the government.

Meanwhile, MP Sarwa Abdul Wahid spoke about a difference in the budget tables worth 8 trillion dinars, and this number contradicts what was initially revealed by the member of the Finance Committee, Moeen Al-Kazemi, but it may be the difference number in the paper or electronic version, and the other number of 15 trillion is in one of the two versions as well, as there are 3 versions as confirmed by the Prime Minister’s Office in its letter sent to Parliament.

The continued talk about “manipulating the budget tables” and the mention of Al-Mandlawi’s name in the story prompted the latter to issue a statement on the official website of the House of Representatives, and he returned to confirm that the tables were voted on as they were received from the government, while the statement carried clear anger, stressing through it that he “is following all the inaccurate talks published and broadcast by some media outlets,” threatening that “any party that tries to mislead public opinion by concealing the facts and dishonestly transmitting the events, to achieve illegitimate goals far from the honesty of neutral transmission and objectivity that it should possess, will be subject to legal accountability.”

The Three Copies.. The Birth Stage of Non-Identical Twins

The Ministry of Finance provides the original budget tables that the government sent to the House of Representatives and which were voted on, amounting to 211 trillion dinars, while there is no published or announced version of the other modified versions that include adding 15 or 8 trillion dinars for the purpose of matching the tables, but all the talk revolves around adding money to the ration card allocations, in addition to increasing the allocations of some governorates, especially those that objected to reducing their shares in the budget, most notably Basra Governorate.

But in conclusion, and from a realistic perspective, the difference in budget tables is worthless after the government published and approved the budget tables sent by it according to the allocations specified by it, with a total expenditure of 211.8 trillion dinars, although the Al-Waqa’i newspaper has not yet published the budget tables for the year 2024.

The explanations in the conclusion indicate that MPs appear to have “tried to deceive the government” by including in their papers the amendments they had made in order to allocate more money to their governorates or “ministries”, using the stages and stations of the budget’s passage in parliament after the vote. Those who were able to access the version that was prepared to be sent to the Council of Ministers in its paper form, replaced a table related to governing expenditures, for example, in order to raise the share of the food budget, while the other; He included his own paper after modifying the numbers that include increasing the shares of certain governorates.

As for those who were unable to access the paper copy, they were able to access the electronic section in the House of Representatives through their connections or in another way, in order to change certain numbers in the budget table on the computer before they were placed on a CD. It seems that each representative may not know what his colleague did, in order to send it to the government and try to deceive it, to spend the money according to the tables it received. It is not known what the plan is after that. Does it intend to raise the allocations for the governorates or the relevant ministries in order to empower them, or does it aim to take and share the surplus funds that may be sent to the governorates and ministries according to the manipulated tables, and grant the governorate or ministry only the funds that the government was planning to allocate to this governorate or that ministry.   LINK

“Tidbits From TNT” Monday 8-26-2024

TNT:

Tishwash:  Strong economy strong dinar

Mohammed Saleh Al-Badrani

 Any talk about improvement in any field is theoretical talk that will not produce anything unless stability, social cohesion and a stable security situation are achieved. This matter requires attention to details and loose threads.

Civilization needs foundations to be a platform for advancement, and stability is the basis. It is a general word that includes the societal structure, reform of institutions and administration, and the establishment of an ideology that everyone seeks to achieve through which plans are built, sectors are supported, and prosperity is one of its outcomes.

This requires the advancement of education, support for general culture, and aspirations towards movement without obstructive limitations. Other than this, everything we say or will say becomes mere wishes and desires that have no means or institutions to achieve them .

Stability and the crystallization of the character of the state and its institutions will be built accordingly, and it is the same path of progress that expands and opens up the fields of renaissance by forming the nation and then by forming the stable state .

1. Relying on oil without investing it will not improve the economy or increase the strength of the dinar. Rather, it is an invisible deterioration, and everything that is treated with it is like wood dye that is eaten by termites. For this reason, oil and other resources such as customs revenues and taxes must be invested, not by increasing taxes and exhausting the citizen, but by making it flow in a way that makes the citizen comfortable, so that it is in harmony with the state and its plans and is part of its plan, and the state is not considered a feudal lord or a squire who wants to stray from its paths .

2. Taking care of the countryside and returning people to it with plans, projects, industries and factories for agriculture and raising poultry, cows and sheep to produce meat and other things, with managing the land to grow fodder, and establishing fodder factories in strategic areas, and factories for animal products and canning them. As for the citizen’s return without a plan, it will be a matter whose feasibility will weaken unless capital enters from somewhere as capital for those who have money and find a way to operate it. This will be practical and realistic after stability .

3. Stopping government appointments with the absence of projects and the increase in colleges and universities means producing a cadre that is not good at taking care of itself or doing any work in order to live. It is necessary to establish private projects and companies and the state encourages their stability and facilitates their establishment with the establishment of a retirement guarantee similar to the state retirement system, and thus the momentum for work in government jobs is reduced.

This may come through partnerships with companies in industrialized countries to localize major factories and food and mechanical industries such as cars and machinery and support them with oil at cost price, in exchange for social care supervised by the state and looked into by the state so that those who work in these companies, facilities or industries are not harmed if one of the companies decides to abandon work. This means establishing contract models that specify the workforce, job positions and expertise and developing them through continuous education .

Regional environment

4. Establishing interest-based relations with the regional environment, and establishing water agreements in a way that realistically looks at everyone’s interests, and through cooperation in water management, investment, and joint planning as management and facilities so that there is no clear gap between desires and reality, and between proposals that have not entered the logical filters, as climate change is likely and to a large extent, but its results cannot be determined, so confronting it today through projects that do not put the country in a state of death and are capable of supplying economic and human movement is very important .

5. Desalination of Gulf water and engineering its pumping so that it covers and revives every inch of Iraq, and the rapid transformation to modern and economic agriculture will reduce pollution. The marshes will not be relied upon as water bodies, but rather as tourist investment areas such as winter resorts and fish farms, as is suitable for them.

 The dinar and the economy need real work and confidence in the currency is confidence in the economy of the countries, which expresses confidence in the management of the country itself.

 What we write here is the salt in the perspective of the reality of the situation, so that the effort of the meetings is not wasted and becomes air in the net, as they say. It is certain that there are specialists in the country, but they should not look at the experiences of others and transfer them as templates. Capitalism is not a fragmentation system, but rather a system that built itself for hundreds of years until it settled in the situation we see, and those who live in it will not see it as an option. Likewise, socialist systems do not have direct scientific applications.

We need to benefit from these systems in making a suitable system successful, as China did, which has a strong economy that does not look at the exchange rate of its currency, but is strong in its global dealings

. Perhaps if the countries of the region united to create their own currency and trade, they would gain a position in managing the global economy. All of this requires effort and time, and before that, determination in understanding and preparation and a will to implement   link

************

Tishwash:  Finalizing the approval of the Industrial Investment Law

Today, Monday, the head of the Parliamentary Investment Committee, Muhammad Al-Zayadi, revealed that the final touches had been put in place to approve the Industrial Investment Law within the House of Representatives.  

Al-Ziyadi told Al-Ma'louma Agency, “Approving this law will contribute significantly to moving the wheel of the Iraqi economy, as it grants great privileges and guarantees to investors in the industrial sector.” 

He added, "His committee held an expanded meeting with the Economic Committee to resolve the disputed points within the law," noting that "the law, if approved, will reflect positively on the labor market by providing many job opportunities for young people within the country."

He continued, “His committee has put the final touches to approve the industrial investment law soon in the House of Representatives, as it is one of the important laws.” link

************

Tishwash:  Al-Jawahiri comments on the tax reform process

Development and investment consultant Amer Al-Jawahri said: “The tax reform process currently taking place includes all the empty sectors, and this is very accurate for the Prime Minister in light of Al-Sudani’s meeting with the Supreme Committee for Tax Reform.”

Al-Jawahri Al-Jawahri told Mawazine News Agency: When we say that the state’s public funds and resources have circulated, this means that there is an informal economy in the country. 

According to the development expert: “Informal businesses have existed for many years, and they still do, and there is even an expansion that is not included in tax accounting, which means that it is not registered, and is considered informal in this matter, and the other side of the tax reform will take place and will continue.”

He explained: “The use of digital electronic tools and others that exclude human interaction means that perhaps 80 or more than 90% of the work that is accomplished outside the scope of human interaction will be linked. This may save losses. We do not want to pay the numbers, but it is very clear that the losses of the numbers are very large; which took into consideration the size of imports.

He continued: “If we count the size of imports, how much do we earn from tax money? There is a gap in this aspect, and eliminating corruption is not easy, and corruption is not only about the leakage of money and loss, which means depriving the public right of its rights and at the same time the money goes into pockets, and people get rich at the expense of society.
 
He pointed out: "This money goes to services, but at the same time, this achieves, in one way or another, the rule of law, and also achieves, a relative improvement in the business environment, and this improvement when added to it, an improvement in other aspects, while he stressed that working on it in the business environment, then, we can say, there are things that encourage local capital for direct investment.

He  continued saying: "May we be drawn into it, and attract capital or foreign direct investment, this is the entrance or angle that I want to enter from the side of what the Iraqi government aspires to.

 Al-Jawahiri urged everyone to support the tax reform process despite the existence of harsh and severe opposition, veiled and covered with large veils and beautiful veils, which will try to put obstacles in front of the implementation of tax reform, which increases with the country's resources or the general budget. Improving public resources means that the state and successive governments are able to spend on improving the service reality and infrastructure of the country, the most important of which are the health, education, security and municipal sectors. link

  ************

Mot: .. This Does Help Explain it -- Huh!!! 

Mot:  . Golden Rule it Is!!! 

IQD Update-Iraq Dinar News - #iraqidinar Central Bank-New York City-Iraq Buying Gold-Oil & Gas

IQD Update-Iraq Dinar News - #iraqidinar Central Bank-New York City-Iraq Buying Gold-Oil & Gas

MilitiaMan and Crew:  8-25-2024

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=bpyeQHH7TH8

Iraq Economic News and Points To Ponder Late Sunday Evening 8-25-24

Iraq's Oil Exports Decline
Economy | 09:04 - 08/25/2024  Mawazine News - Follow-up  The US Energy Information Administration announced on Sunday that Iraq's oil exports to America declined last week.

The administration stated in a table that "the average US imports of crude oil last week from 9 major countries amounted to 5.452 million barrels per day, down by 171 thousand barrels per day from the previous week, which amounted to 5.623 million barrels per day."

It added that "Iraq's oil exports to America amounted to 166 thousand barrels per day last week, down by 17 thousand barrels per day from the previous week, which amounted to 149 thousand barrels per day."

The administration indicated that "the largest oil revenues to America last week came from Canada at a rate of 4.083 million barrels per day, followed by Colombia at an average of 213 thousand barrels per day, followed by Saudi Arabia at an average of 207 thousand barrels per day, from Nigeria at an average of 190 thousand barrels per day, and from Brazil at an average of 177 thousand barrels per day."

According to the table, "the amount of US imports of crude oil from Mexico was at a rate of 167 thousand barrels per day, from Ecuador at a rate of 163 thousand barrels per day, and from Libya at a rate of 86 thousand barrels per day.  https://www.mawazin.net/Details.aspx?jimare=253891

Iraq's Oil Exports To America Decline During The Week

Energy  Economy News – Baghdad  The US Energy Information Administration announced today, Sunday, that Iraq's oil exports to America declined during the past week.

The administration stated in a table, which was reviewed by "Al-Eqtisad News", that "the average US imports of crude oil during the past week from 9 major countries amounted to 5.452 million barrels per day, a decrease of 171 thousand barrels per day from the previous week, which amounted to 5.623 million barrels per day."

She added that "Iraq's oil exports to America amounted to 166 thousand barrels per day last week, down by 17 thousand barrels per day from the previous week, which amounted to 149 thousand barrels per day."

The administration indicated that "the largest oil revenues for America during the past week came from Canada at a rate of 4.083 million barrels per day, followed by Colombia at an average of 213 thousand barrels per day, followed by Saudi Arabia at an average of 207 thousand barrels per day, from Nigeria at an average of 190 thousand barrels per day, and from Brazil at an average of 177 thousand barrels per day."

According to the table, "the amount of US imports of crude oil from Mexico was at a rate of 167 thousand barrels per day, from Ecuador at a rate of 163 thousand barrels per day, and from Libya at a rate of 86 thousand barrels per day.

135 views 08/25/2024 - 8:43 AM  https://economy-news.net/content.php?id=46691

Recorded 41%.. Iraq Is The First Destination For Emirati Exports

2024/08/25 Read: 1,482 times  {Economic: Al Furat News} Dubai ruler Mohammed bin Rashid announced an increase in UAE exports to Iraq  Bin Rashid said in a press statement, "Our trade with Iraq increased by 41%, making it the first destination for Emirati exports."

******************************

He added, "Our foreign trade approached 1.4 trillion dirhams in six months, with a 25% growth in our non-oil exports, and our goal is to achieve 3 trillion dirhams in non-oil foreign trade."

Bin Rashid pointed out that "our economic relations have been strengthened with various countries, as our trade with India has increased by 10%, with Turkey by 15%, and with Iraq by 41%, making it the first destination for Emirati exports."

He continued, "The global growth rate of foreign trade reached about 1.5%, and the growth in our foreign trade reached 11.2% annually, as we move rapidly towards our targets."  LINK

To resolve the issue of banks “deprived of the dollar.” Al-Alaq will return to Washington soon
 
Economy | Today, 14:00 | Baghdad today – Baghdad  An official source in the Central Bank of Iraq revealed, today, Sunday (August 25, 2024), the imminent important visit of the bank’s governor, Ali Al-Alaq, to ​​the United States of America to resolve the issue of Iraqi banks deprived of the dollar.  The source told “Baghdad Today” that
 
 “during the end of this month there will be an important visit by the Governor of the Central Bank of Iraq, Ali Al-Alaq, to ​​New York City in the United States of America to hold several meetings with the US Federal Reserve and the US Treasury to discuss the file of Iraqi banks that are deprived of dealing in dollars, and the possibility of...

This deprivation was lifted, as this had a negative impact on the Iraqi banking and financial situation.”  The source, who requested to remain anonymous, said,
 
 “Those Iraqi banks are not being punished, but are only deprived of dealing in dollars, and
 
Al-Alaq’s visit comes in order to lift that deprivation, as well as discuss protecting the Iraqi banking system and supporting its stability.”
 
It is noteworthy that the Governor of the Central Bank of Iraq, Ali Al-Alaq, resolved on Wednesday (August 7, 2024) the controversy regarding reconsidering the dollar exchange rates.
 
Al-Alaq said, in press statements, followed by “Baghdad Today”:
 
“There is no intention to reconsider the dollar exchange rates,” pointing out,
 
“The Central Bank sells more than 250 million dollars daily at the official rate.”  He noted,
 
 “The bank covers the requirements of foreign trade, and some do not want fundamentalist methods,” noting,
 
“The view that the price of the dollar has risen or fallen is not a correct indicator.” 

He stressed, "The central bank's success in controlling inflation compared to other countries," adding,
 
"We will reach 100 percent of foreign remittances without going through the US Federal Reserve at the end of this year."  He stressed,
 
"The financial situation in Iraq is still proceeding within what is planned in the state's general budget," noting that
 
"for the first time, by virtue of the new budget and financial management law, the allocations of governorates and ministries are rotated."  Al-Alaq said,
 
 “The Central Bank is undergoing a major transformation process by reorganizing foreign trade, and
 
our procedures in foreign trade are taking place for the first time with the involvement of international institutions.”  He continued,
 
"There are small traders outside the system that are putting pressure on the market, and
 
a mechanism to regulate their trade is about to be launched, and
 
we are focusing on getting everyone involved in sound fundamentalist channels."  He revealed,
 
“The Central Bank has opened channels for the Chinese, Turkish, Indian, and UAE currencies,”
 
announcing, “The imminent launch of a new audit mechanism for trade via foreign currencies.”  He stressed that
 
“all commercial foreign transfer operations are subject to review by the competent international company,” revealing
 
“meetings in New York at the end of August to discuss lifting sanctions on banks and reviewing transfer operations.”  Al-Alaq explained,
 
“The dollar is not given to the traveler until after the departure stamp,” noting that
 
“the new mechanism guarantees the arrival of the dollar 100 percent to the traveler, and
 
we started with it in Baghdad, then Najaf, Basra, Erbil, Sulaymaniyah, and Kirkuk.” 

 He added,  "There is a government move to increase capital support for the Real Estate Bank and the Housing Fund in the budget," noting,
 
"The bank's initiatives have an exceptional role in trying to fill the housing deficit."  The Governor of the Central Bank announced,
 
“The capital increase paragraph for the Real Estate Bank and the Housing Fund in the budget has not been implemented yet, and
 
we do not want the bank’s financing to be a substitute for the investor’s obligations,” noting that
 
“the Real Estate Bank was directed to finance complexes with completion rates of 80 to 90 percent.”.   
 
https://baghdadtoday.news/256475-لحسم-ملف-المصارف-المحرومة-من-الدولار.-العلاق-الى-واشنطن-قريباً.html   

Central Bank Of Iraq Sales Amount To About $6 Billion In A Month

Posted On2024-08-25 By Sotaliraq The Central Bank of Iraq's sales from the hard currency auction for the US dollar during last July amounted to more than 5 billion dollars.

Our correspondent reported that the Central Bank sold during the month of July, during the days in which it opened its auction for buying and selling the US dollar, 5 billion, 746 million, 98 thousand, and 54 dollars, at a daily rate of 273 million, 623 thousand, and 716 dollars.

Our correspondent added that foreign remittance sales during the past month amounted to 5 billion, 428 million, 395 thousand, and 754 dollars, an increase of 94% compared to cash sales, which amounted to 317 million, 23 thousand dollars.

Our correspondent indicated that these sales were distributed between transfers abroad to finance foreign trade, and cash sales to banks, while the selling price of documentary credits and international settlements for electronic cards reached 1310 dinars per dollar, while the selling price of transfers abroad and the cash selling price reached 1305 dinars per dollar.  LINK

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Does The World Bank Need To Rethink Its Policies?

Does The World Bank Need To Rethink Its Policies?

Banks  Economy News - Follow-up  For nearly eight decades, the World Bank—founded in 1944 to finance reconstruction and development after World War II—has been the largest international public agency ever. By 1973, as the need for reconstruction receded and many newly independent countries had joined the bank, President Robert McNamara outlined a revised mission.

The bank’s goal was “to accelerate economic growth and reduce absolute poverty.” At the bank’s headquarters in Washington, that goal was engraved on the lobby wall for all to see: “Our dream is a world free of poverty.”

The World Bank's initial approximation of the target was an annual estimate of the number of people living on less than $2.15 a day, the amount deemed necessary to avoid hunger, Paul Collier, a professor at Blavatnik College at the University of Oxford, wrote in an opinion piece for Foreign Policy.

This is a very conservative measure of the bank’s performance, Collier said—it could be achieved if the world’s poorest could reach the bare minimum necessary to survive even as the income gap with the rest of humanity widened. But even by this inadequate measure, the bank was a failure before 1990.

That is no longer in dispute: from 1960 to 1990, the incomes of the poorest countries diverged from those of the richest by standard statistical measures.

The number of people living in extreme poverty peaked in 1980 and then stabilized until the early 1990s, when China, India, and other emerging Asian markets took off.

Since 1990, China and India have largely lifted many millions out of poverty, but that was because of domestic reforms that opened their economies to trade. It was not because of the World Bank’s meager aid to these countries, which went disproportionately to Africa, along with policy advice.

But while the Bank cannot claim responsibility for China’s and India’s successes, it must accept responsibility for Africa’s failures. Yet the Bank and its leadership have been reluctant to confront or draw conclusions from their failures.

“When I first worked on the problem of global income inequality in 2003, I found that there was another problem within the problem that had not been noticed at the time,” said Professor of Economics and Public Policy at the Blavatnik School at the University of Oxford.

“A group of 60 poor countries, concentrated in Africa and Central Asia but with pockets elsewhere, had failed to spark economic growth and were gradually falling behind everyone else.”

“These countries had a population of about a billion people—I called them the bottom billion.” China and India were initially much poorer than most of these countries, but since the 1980s China has been growing rapidly, and since the 1990s India and Latin America have also been taking off.

In 1990, these three regions dominated global poverty statistics, but now they are favored by investors as emerging markets, and by 2035 their mass hunger problems will be a thing of the past, according to Collier.

The growth of these regions has helped global poverty begin to decline—both as a share of the world’s population and in absolute numbers, perhaps for the first time in human history. But this success has not extended to the bottom billion. As a group, their incomes have continued to diverge from those of the billions in emerging markets and the privileged billion in rich countries.

The divergence among the bottom billion continued until 2003, when global natural resource prices began a decade-long boom so extraordinary that it became known as a supercycle. Because economic growth never really caught on among the bottom billion, the exploitation and export of their natural resources became their dominant form of participation in the international economy, and the supercycle boosted their incomes.

This was their golden decade, and it lasted until 2014, when commodity prices collapsed; prices have been extremely volatile since then.

After 2014, the global economy entered a period known as the “new normal,” a term coined by economist Mohamed El-Erian. For the bottom billion, the new normal looked a lot like the old normal, the long period until the golden decade during which they were left behind.

Only during the golden decade did the bottom billion as a group briefly interrupt the tragedy of falling further and further behind the rest of humanity.

If the trend since 2014 continues, the global poverty headcount will soon return to its grim pre-1990 upward trajectory. Starting in 2035, after adjusting for inflation, the number of people living below the World Bank’s $2.15 poverty threshold – those so poor that they are starving – will increase relentlessly.

And they will be concentrated in very different places than in the past. Instead of China, India, and Latin America, the new poverty hotspots are Africa and Central Asia. Given the World Bank’s mission, the prospect of rising poverty rates in these long-focused regions should spur the Bank to action.

“Of course, there are many reasons to be skeptical of these forecasts. But we can supplement the projected trends with evidence of changes in national wealth per capita, including private assets such as homes and public assets such as infrastructure,” Collier said.

As imperfect as this measure may be, by looking at how assets have changed, we get some clues about how incomes will change in the future. In both the old normal and the new normal, the assets of the bottom billion remained virtually flat, while assets per capita in emerging markets grew rapidly, at 3% or more per year. The assets of the lucky billion living in the developed world grew comfortably, at about 2% per year.

People in the bottom billion are poorer than the rest of humanity. By 2020, the average fortune billion had $500,000 in assets per capita. The emerging market average had jumped to $85,000, and was on track to catch up with the fortune billion within a generation.

But people in the bottom billion have less than one-thirtieth of the fortune billion’s assets, and the fortune billion’s assets are growing only slowly.

Rather than prompting questions about why its approach was failing to achieve its stated purpose, in the early 2020s the Bank decided to change its stated purpose. The World Bank’s goal would no longer be a world free of global poverty – nor would it even be able to measure it.

Its goal would simply be to reduce the number of people living below a certain country-specific income threshold. If that number was falling, the Bank would declare victory: its programs in that country must be working.

This was not demanding enough that most programs would get a passing grade most years—even in Africa and Central Asia—so that everyone could relax. To avoid a troubled career, an employee assigned to one country that was not currently getting a passing grade would simply need to move to another country as quickly as possible.

Because everyone would be playing this game, the less experienced employees would end up working with the less capable in the more difficult countries.

Clearly, as the premier global institution, the World Bank must aim for global convergence: that is its core mission. The countries that have fallen behind to become the poorest must not merely avoid hunger or meet a low bureaucratic threshold—they must grow faster than other groups.

The failure of these programs, with the exception of one golden decade that had nothing to do with development projects, should be cause for serious soul-searching and sober reassessment at the Bank, reinforced by genuine concern about the prospects of the world’s poorest countries.

The World Bank might look to its sister institution, the International Monetary Fund, for an example of this kind of soul-searching. It happened in 2018 under then-IMF chief Christine Lagarde, now head of the European Central Bank. In an independent evaluation of its performance, the IMF found that in fragile states, only one in seven of its support and advice programs were successful.

This led to a major research study, published in 2021, that concluded that programs should last longer and be better tailored to the local context. The first fruits of this work were the agreement just reached with Ethiopia last month.

But in its policies toward persistently slow-growth countries in Africa and Central Asia, the IMF is hampered by a mandate that focuses solely on financial stability, not economic development. The development mandate falls to the World Bank—and that’s where it stops.

But instead of acknowledging a half-century of failure, discovering its causes, and launching a process of comprehensive institutional change, the World Bank made the sinister choice of redefining its purpose into something more easily achievable than economic development and income convergence.

It simply changed its poverty measures so that it would no longer have to report rising global poverty rates. Before the bank had finished this scandalous exercise, international outrage over its failure to respond to the multiple crises engulfing poor countries had reached its board of directors.

The board correctly judged the bank to have been slow to disburse funds that could have enabled the governments of the poorest countries to prevent their economies from collapsing. In February 2023, under humiliating circumstances, World Bank President David Malpass was forced to resign.

The move may finally prompt the bank to engage in the same soul-searching that the IMF has undergone. With its vast financial resources and highly skilled staff, the World Bank has a noble mission to fulfill.

Will its new president have the ambition to chart a bold new course—or will he retreat to the defensive amid a beleaguered bureaucracy?   08/25/2024 - https://economy-news.net/content.php?id=46711