MilitiaMan and KTFA Members "A Taste Of Reality" 1-16-2021
KTFA:
MilitiaMan: I have been looking out over the articles of late and there is a theme that is being presented collectively that suggests that the recent devaluation is and was a very big mistake and one they are going to fix.
They affects are and have been huge. The on set of the impact of 23% over night, roiled markets and the citizens to the core. Foods and services rose 30-50% in short order. That is not good at a 1460 exchange rate.
The move didn't do anything good like they thought it would. Payed some salaries, at the cost in inflation setting in the pain and suffering at the grocery stores, etc..
Well, it is my opinion they were allowed to do that, as the experts knew it would have cause and effect. It is as though they allowed them to experience the negative effects and get to the bottom to see that pain from increased pricing. A taste of reality so to speak..
Which would then show them that the right way is still on the table. That is imo to be the deletion of the three zeros. Which will bring purchase power in form of the oil profits for and to the citizens. Oil, taxes, tariffs, fees, customs, payments, agricultural, commercial and industrial projects will coincide with the next phase. The next phase is to re build the country. (See links Below.)
The reconstruction effort cannot be effective nor support Iraq in being competitive in the global market at 1190 let alone 1460 Dinar exchange rate. That will never happen.
What will though is the real exchange rate when applied will bring purchase power. We have been shown that the real exchange rate back in May of 2020 to be 682 Dinars to the Dollar.
That number less the three zeros is .68IQD = 1USD.
Just as the inverse of 1460 is to the Dollar when dropping the three zeros. 1/1460 = .68. real close. Again a similarity to the region and the SDR Basket with the IMF.
The IMF has recently said Iraq has been transparent with their budget and fiscal policies over the past 3 years and it will behoove them to stay that way as the transparency for investors is key for decision making purposes in regard to valuations.
All currencies globally need support for the value of the Real Effective Exchange Rate of their currency. Iraq is no different. As we see in the data below.
The real exchange rate represents the distribution of part of the oil revenue for the citizens. The devaluation was a failure an it was inappropriate as the taxes to the citizens at a program rate would destroy then in short order, whereby the real exchange is applied that all gets washed out much easier as does the deficit..
So, keep a keen eye in these links and you'll see the theme I speak of. It is very exciting times.
They have read and completed apparently the 2021 today.. They did 40 articles, then latter resumed the meetings then they raised the meeting. Hence, they suggest they completed it.
Also, keep in mind the 5 committees. They are new.. Well, with a new real exchange rate they would need a committee for each ministry to be able to facilitate the exchange rate accordingly to apply throughout their respective projects to allocate funds for.
Just like the loans from the Banks today.. To be competitive to build housing, etc, they will need to adjust the rate.. They say it over an over again.. imo.. Lets look for the CBI to talk now.. imo.. ~ MM
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"The third and intangible trend is the difference between the real exchange rate and the official exchange rate fixed by the central bank. Which in fact represents the distribution of part of the oil revenue to all Iraqis in the form of enhancing the purchasing power of the dinar against the dollar and thus increasing the real incomes of all members of the Iraqi people, especially the poor and vulnerable segments that have been affected by the change of the exchange rate due to the decline in the purchasing power of the dinar with the limited entry of this Categories.
The reduction in the value of the Iraqi dinar came mainly to finance the huge deficit in the 2021 budget and not to achieve economic reform and raise the competitiveness of the national product. Especially with the continuing decline in oil revenues and the government's inability to reduce expenditures or maximize non-oil revenues in the short term. However, the timing of the implementation of the exchange rate policy is not appropriate for the economic recession caused by the Corona virus. Especially with the inclusion in the 2021 budget of salaries, tax increases and investment expenditures, which exacerbate the impact of the double shock (financial and monetary), which outweighs the ability of the fragile Iraqi economy to adapt and continue." LINK
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Economist: The rise in the dollar will have negative effects on the economy, and the citizen will pay the price LINK
Committee: The Minister Of Finance Caused An Economic Disaster For The Private Sector LINK
Al-Rafidain announces financing and marketing of investment projects and granting them loans LINK
To discuss the budget with the concerned authorities ... Parliamentary finance sub-committees are formed LINK
Parliamentary Finance: Meetings Are Continuing To Study The Provisions Of The 2021 Draft Budget LINK
Parliamentary Finance confirms reading 40 articles from the budget and specifies a possible date for passing them LINK
Parliamentary Finance: To vote on the budget next week .. This is the fate of the salary deduction LINK
Tomorrow .. The launch of the activities of the exhibition {Made in Iraq} LINK
Parliamentary Finance intends to reduce the difference in the approved oil price in the budget LINK
Parliament Presidency instructs to study proposals and demands related to the budget LINK
The House of Representatives resumed this evening, Saturday, its 35th session chaired by the First Deputy Speaker, Hassan Al-Kaabi.LINK
The formation of 5 parliamentary committees to discuss the budget with the three presidencies
The Parliamentary Finance Committee announced, on Saturday, the formation of 5 committees among its members to hold separate meetings with the three presidencies, ministries, and government bodies to discuss the budget. The second reading is expected to resume tomorrow,
he House of Representatives raises its session for further notice
Political| 06:52 - 01/16/2021
The House of Representatives raises its session for further notice LINK
Ross: If they want to bring in a lot of 3 zero notes just come out at $1.00 US = .68 dinar. They will get a lot of foreigners to cash in cause they just want to get off of this roller coaster. Then they can float it up later.
Don961: Parliament concludes the debate on the 2021 budget and comes out with 162 requests and observations on it
2021-01-16 Yes Iraq: Baghdad
On Saturday, the House of Representatives ended discussion of the budget bill for 2021.
According to a statement by the council, “the representatives demanded, through their interventions, that revenues be distributed fairly among the governorates, taking into account the disbursement of petrodollar dues and the benefits of border crossings, the allocation and disbursement of financial dues to mobilize the Ministry of Defense, doubling the sums allocated to the Reconstruction Fund for Liberated Areas, and imposing taxes on imported materials that have an equivalent of the local product in support of it. As well as supporting the Ministry of Education by increasing financial allocations and paying attention to scientific research centers, wondering about the reasons for the decrease in support for the ration card items.
The remarks of the members of the Council promised, “The government's direction through the draft budget law is in contradiction with what it proposed in the white paper aimed at reform, calling for the government to adopt a deliberate vision to reduce the level of unemployment among the youth segments and to demand support for the sporting reality in Iraq by increasing the financial allocation for it, in addition to Activating the Federal Service Council to take on its role in professionally creating and deleting job grades and proposing to install night guards on the Ministry of Interior or Oil’s 6,000 affiliates concerned with the protection of oil wells, and to ask the government, for reasons of its neglect, to set up a mechanism to pay off the debts accumulated on the Kurdistan Regional Government from selling oil.
Members' opinions focused on giving importance to investment projects and lagging behind, calling for the re-operation of the stalled laboratories in the governorates and providing support to the development ministries in the country in relation to the financial inflation presented to the security ministries and calling for the abolition of Decision No. 94 of 2010 related to launching the promotion of employees holding diplomas and graduates of institutes.
In its response to the interventions, the Finance Committee indicated that it had received 162 requests from the ladies and gentlemen of the deputies related to the draft general budget law 2021, pointing out that a schedule was set to respond to the observations received, noting that determining the price of a barrel of oil and currency exchange in the budget law are the government's prerogatives, indicating that The implementation of the budget law requires reducing the volume of total spending and activating the private sector, both industrial and agricultural, stressing that it takes into consideration the proposals put forward regarding the budget law.
For his part, Bashir Al-Haddad called for efforts by the parliamentary blocs and committees in cooperation with the Finance Committee to pass the general federal budget law in the service of citizens in general and in the interest of all governorates without exception, noting the need for the government to follow a policy of reducing expenditures and consolidating revenues to reduce the financial deficit in the budget in particular With the instability of the economic situation in Iraq, as well as coordination and cooperation to solve the outstanding problems between the federal government and the Kurdistan Regional Government.
In another context, the discussions of the ladies and gentlemen of the representatives in public affairs focused on demanding the payment of farmers ’dues, looking at the dues of contracts for good deeds, and investigating the reasons for the transfer of one billion dinars from the budget of Nineveh Governorate to Salah al-Din Governorate, in addition to investigating the security breaches that occurred in some areas of the governorate Diyala. LINK
MilitiaMan: There you go. Support for an earlier post. Activating the private sector. That my friends is imo going to a market economy, whereby, activating the industrial and agricultural sectors to create jobs. They real exchange rate will do the trick. The CBI is next up? Sure hope so! ~ MM
DeepWoodz: Imo... I like .....
“noting that determining the price of a barrel of oil and currency exchange in the budget law are the government's prerogatives”
wonder why they listed these two items together? Hmmm....C’MON WITH THAT BUTTON CBI!!!!!!!
”For his part, Bashir Al-Haddad called for efforts by the parliamentary blocs and committees in cooperation with the Finance Committee to pass the general federal budget law in the service of citizens in general and in the interest of all governorates without exception”
talking to you bozos!!!
Maybe the CBI will when parliament gets done playin like they are the financial auditors of Iraq!!!!
“Al-Obaidi sent a message to the members of Parliament, saying: “Honorable gentlemen, you are the legislators of the country's laws and approve of its strategy, and you are not financial auditors.”
PARLIAMENT GET OUT OF THE WAY!!!!