KTFA Members "News and Views" Sunday Afternoon 4-24-2022
KTFA:
Samson: Message to the Iraqi government
24th April, 2022 by Chuan Zangana
In the name of of Allah the Merciful
The Honorable President of the Republic of Iraq, Dr. Barham Salih
The Honorable Mr. Muhammad Al-Halbousi, Speaker of the Iraqi Council of Representatives
The Honorable Prime Minister of Iraq, Mustafa Al-Kazemi,
The respected Iraqi Minister of Finance, Dr. Ali Allawi,
The respected Iraqi Minister of Foreign Affairs, Dr. Fouad Hussein
Iraq's investments in US Treasury bills and bonds
It is not hidden from you, dear gentlemen, the economic, health and security crises that the world suffers from as a result of a chronic hybrid war that is heating up little by little, starting with the Ukrainian crisis, passing through the crises of the Middle East and the China Sea, spreading disease, and rising inflation rates in all countries of the world, and the pace of Military confrontations, which prompted the world to take the necessary measures to confront disease, hunger and war, those three pests that gnaw the skeleton of humanity, and threaten its survival and sustainability.
In light of these crises, capitals search for safe and low-risk havens, such as gold, silver, commodities, the dollar, and the euro, and avoid high-risk safe havens such as securities traded in the markets and stock exchanges, and cryptocurrencies.
Gold and the dollar compete to attract capital, in the midst of these burning and aggravating crises, as gold provides its investors with good returns in light of its continuous and steady rise in its price, due to the high global inflation rates, which is considered the fertile hotbed of gold, as gold is considered the best safe haven in an atmosphere of inflation, This is despite the rise in the global dollar index, which crossed the 100-point barrier.. Despite the rise in the dollar index, and the US Federal Reserve’s confirmed decision to raise the interest rate by 0.5%, and reduce the size of the monetary mass of the dollar in America, all of this did not prevent, and will not Gold is prevented from rising, for reasons, the most important of which are:
First: the high negative interest rate that the American economy suffers from, the current interest rate in America is less than 1%, while the inflation rate is 8.5%, and this means that the interest is lower than inflation by about 7.5%, meaning that the interest is negative by (- 7.5% ), and this will push the capital to buy gold to protect it from inflation, which the dollar is unable to secure, and this is also the reason for the decline in global central bank reserves of the dollar to less than 60% of global monetary reserves.
Second: the global financial markets' conviction that the world is unable to rein in inflation in the foreseeable future, that is, the next two years at least, and this raises the appetite of these markets to possess gold instead of the dollar to secure protection against inflation.
Third: The high frequency of conflicts in global conflict hotspots, especially in Ukraine, which generated a conviction among global financial markets and global political decision centers of the possibility of an expansion of the Ukrainian crisis and the outbreak of a wide war.
In this case, all banknotes, including the dollar, would shrink, and paper money would lose much of its Its purchasing power against the amazing rise that will happen in the prices of goods and luggage, and gold will come at the top of the list of luggage whose prices will rise significantly.
Iraq invests more than 20 billion dollars in US treasury bills and bonds, with low annual interest, and much less than the inflation rate.. Whatever the reason for this investment in the past, today it is a failed investment, fraught with risks, and inevitably harms the interest of Iraq, and only benefits the US treasury. Which fills its deficit with these investments, and then uses them to achieve its internal and external ends.
So, dear gentlemen... I believe that it is necessary to expedite the sale of these papers, and to buy gold bars in place of them, and to add them to the central reserve, in order to save the national wealth from wastage, free it from serving the foreign economy, and be able to use it freely and under national sovereignty, not to mention that any crisis in the American economy Or in US dollars, it will reflect negatively on this investment, and those bills and bonds will turn into printed papers that have no value even in washing hands.
This is your responsibility before the people, dear gentlemen.. Have I not reached, oh God, bear witness! LINK
Sir: IMO This is more than enough proof that the good people of the world are moving at a fast pace to dump the dollar and go to asset backed currency. We see this around the world with our very eyes, for those of us who have been watching this for awhile now can take a sigh of relief, and for the Naysayers welcome to reality. All the glory to God….
Im glad to be on this journey with so many good people here at KTFA and around the world. IMO- The glory days are upon us and together we can do our part and help usher in the true meaning of why we are here on earth at this time ( we are the choosing ones) head up and chest out, our work is just beginning.
Time to dump this matrix we have been forced to live in and take all of humanity with us, no one left behind..IMO
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Samson: Minister of Finance: The financial situation is very good and an upcoming meeting with the International Monetary Fund and the World Bank is in Baghdad
24th April, 2022
Today, Sunday, Finance Minister Ali Allawi revealed that meetings with the International Monetary Fund and the World Bank are about to be held in Baghdad, while noting that the financial situation is very good
Allawi said in a statement to Al-Iraqiya News that "the meetings with the International Monetary Fund, the World Bank and other major institutions in the American capital, Washington, were good," noting: "We have reached several agreements, the most important of which is support for the reform process, especially the white paper
He added, "There are close meetings in Baghdad, which will be after the blessed Eid Al-Fitr, so that the support will be technical and there will be advisors, in order to strengthen the capabilities of the Iraqi government, in order to advance and move forward with the reform project
He pointed out that "Iraq is in the process of implementing agreements with the World Bank, especially to support the technical side. We have reached very good results, and will contribute to strengthening the cadres working in the state," noting that "the ministry is in the process of submitting a law to the House of Representatives for the purpose of employing the unexpected gain resulting from the rise in oil prices, in the areas of strengthening support for groups affected by the prices of raw materials
He continued, "The law is before the House of Representatives and will be enacted, and it will give strong support to the groups affected by the rise in the prices of basic materials and foodstuffs in particular, and to strengthen the pillars of the Ministry of Finance and to strengthen the possibilities of employing public employment projects," explaining, that "there is an integrated plan to use the surplus of the price hike, in cooperation with Parliament
He pointed out that "this support is outside the concept of reform for the public sector, and we want to reduce government support, especially for sectors that can thrive without government support, but this will be for one time," explaining that "the government acknowledges that some groups have been affected by the rise in the prices of raw materials, so it will be one-time and non-recurring support. He stated, "We have a strategic agreement with the United States, especially in the economic aspect, and we want to do it now," stressing that "there are preparations for cooperation at all levels
Allawi stressed the need to "submit projects to obtain support, or a kind of American aid, especially in the technical and technical aspects," stressing that "the financial situation is very good, and we do not need support from any foreign parties, except for certain projects LINK
Stevep99: WOW!! This article speaks volumes! I cant wait to hear the results of the meeting in Baghdad!!
Sir: And away we go……IMO Getterrr done….
Clare: GREAT ARTICLE!!! THANK YOU SAMSON WHY NOW??!!! meetings with the International Monetary Fund and the World Bank are about to be held in Baghdad,
Mustangroper: When is Eid Al- Fitr officially over with ….on May 6th?
PompeyPeter: WELL DEPENDING ON THE SIGHTINGs OF THE MOON ITS 1ST SUN DOWN TO WEDNESDAY 4TH
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Samson: Mazhar Muhammad Salih: The Central Bank's balance is three times more than the government's external debt
24th April, 2022
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, today, Sunday, the monetary policy of the Central Bank of Iraq, and between the contents of two basic pillars of this policy to address crises, he revealed the size of the foreign reserves of the Central Bank and the internal debt
Saleh said, to the Iraqi News Agency, that "the monetary policy of the Central Bank of Iraq has exercised and is still playing its great role in strengthening the national economy and supporting and supporting it in liquidity, stability and the management of monetary resources, especially through two successive double crises that the national economy was exposed to between the years 2014-2021, as monetary policy confronted The Central Bank has led to the serious stagnation to which the macro-economy and its real sectors were exposed, and its use of a satisfactory monetary policy
He added, "The two pillars of this policy are: credit easing and granting the monetary market with sufficient liquidity through the continuous initiatives of the Central Bank, and the other is quantitative easing policies to support macroeconomic liquidity in general by motivating secondary market operations with calculated, accurate and successful ranges that saved the national economy in the most contracting economic conditions and supported by one side. The last of the Iraqi financial policy to get out of the impasse of the fiscal deficit and the deterioration of the country's financial sustainability by relying on the internal liquidity levers provided by the Central Bank with its accurate, balanced and successful tools
He pointed out that "the first crisis that our country faced in the years 2014-2017 was a serious double crisis, financial and security at the same time, as energy markets and Iraq's financial revenues from exported oil deteriorated between these years, accompanied by strict security conditions, namely the war on ISIS terrorism." The Central Bank of Iraq played its prescribed role in its monetary policy, which contributed to assigning victory in the war and economy arenas, with remarkable accuracy
He continued, "While the second double crisis came between 2020-2021, it represented a serious deterioration in Iraq's oil revenues, a frightening deficit in the current account of the balance of payments, and a more serious deficit in public finances as a result of the price war in the energy markets in the world, and the reduction in the quantities of our country's oil production to nearly less than half is under the influence of the (OPEC Plus) agreements and the deterioration of global demand for oil throughout 2020 and parts of 2021, accompanied by a stifling global health crisis represented by the Corona pandemic and the closure of the global and local economy, as the country was affected by an agricultural crisis due to severe drought and the deterioration of agricultural crops, which made the output the GDP is shrinking to (minus 11%), in addition to the prevalence of poverty and unemployment at unprecedented rates in the country’s economic history
And he added, "Under these compelling circumstances, the monetary policy of the Central Bank of Iraq, with accuracy and with calculated and successful steps, led the process of building the foundations for maximizing the liquidity of the national economy, whether by proceeding with the Central Bank's initiative in revitalizing the real sector with soft loans in which the grant element increased," noting that "those loans approached about about 13 trillion dinars to push the activity of the national market and operate the labor market and the business of private activity forward, in addition to supporting government liquidity and attributing the effectiveness of the government economy and public finance without stopping, by deducting government treasury transfers, which constituted about 67% of the total debts of the Ministry of Internal Finance or the internal public debt borne by the bank The Central Bank of the total internal debt balance, which amounts to about 72 trillion dinars
He continued: "Thus, the monetary policy of the Central Bank of Iraq, with high success, fulfilled the requirements to meet the needs of growth and stability of the national economy and to provide it with sufficient liquidity, with high accuracy and wisdom, and at the same time supportive of the financial policy that faced harsh conditions through the two successive double crises between 2014-2021, as well as the restoration of the Central Bank Its foreign reserves, which are the cover of the national currency, record its balance today at more than 70 billion dollars, a balance more than three times the government’s foreign debt payable during the years 2022-2028, which confirms the efficiency of the foreign reserves of the Central Bank of Iraq
He pointed out that "the Central Bank of Iraq is an independent authority under its amended Law No. 56 of 2004, and it is he who draws the monetary policy himself without the interference of any party, and he is the most knowledgeable and best able to manage his policy in stability and development based on the articles of the Constitution of the Republic of Iraq LINK
Iobey777: WOW!! If it is that good, they need to go ahead and release their rate and pay the citizens!
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Samson: Expert: The Trio is trying to circumvent the budget through the Food Security Law
24th April, 2022
The economic expert, Nabil Jabbar Al-Ali, confirmed, on Sunday, that the tripartite alliance is trying to circumvent the general budget law by passing the Food Security Law in Parliament, while stressing that the last law will contribute to the continuation of the process of political impasse.
Al-Ali said in an interview with the "Information" agency, "The caretaker government has the powers to spend 1/12th, which represents approximately 75% of the budget, and through this law it is trying to give itself access to 25% of the remaining budget through the legislation of this the law to have the full powers of the government.”
He added, "The Food Security and Development Law is a circumvention of the general budget law, and the parties to the Triple Alliance are trying to pass it in Parliament, and they may be able to do so, but the law will undoubtedly collide with objections before the Federal Court and the acceptance of the appeal for violating the constitution's path in the powers of the government."
As for the reason for his contribution to the political blockage, the expert explained that “a group of parties may benefit politically from the survival of this government and are not interested in the continuation of political disruption or delay in forming a new government because it is influential in the presence of a government with almost full powers.”
Member of the coalition, Ghazanfar al-Batekh, had said in a statement to the "Information" agency, that "the money that was allocated to finance the Food Security Law came from the financial surplus due to the rise in oil prices," noting that "this law came to zero the financial surplus." LINK