More News, Rumors and Opinions Saturday Night 1-9-2021
TNT:
Annie68: Maybe we are DONE??!!!
Yada: I was wondering the same thing annie,,,,considering the articles stating they are at the end of the devaluation stage,,,,the Finance minster stated "we see the Finance Minister has promised today to make an amendment to the exchange rate for positive effects and with supportive measures."
Stoneman: The third reading will follow the second reading.
Tac1seaday: How many readings are there?
Sooneriam: Three times three times is the charm. I hope
Yada: The timing we are seeing is, the 3rd read for the budget, the 4th weeks of low rates on purpose, they reduced their amount of debt from 70 billion to 30 billion, and the reforms with the budget has been activated as of the 1st,,all ready,,,, dont forget the articles posted that they are saying they are going to move the rate to profit the people
Tishwash: Finance: Supportive measures for exchange rate adjustment
The Ministry of Finance issued a statement on Friday on measures to increase the positive effects of the exchange rate adjustment, at a time when this price amounted to 144,750 dinars for $100 in currency markets across iraq provinces.
"The Ministry of Finance has not been able to do so, publicly, because of the sensitivity of the issue, and because the budget must be approved, first by the Council of Ministers," he said.
The central bank decided late last year to adjust the exchange rate of the dollar in the Ministry of Finance to 1450 dinars per U.S. dollar, such as the purchase price of foreign currency from the ministry, 1460 dinars for every dollar selling foreign currency to banks, and 1,470 dinars for every dollar selling foreign currency to the public, stressing, at the time, that the devaluation of the dinar will be one-time and will not be repeated, and that it will defend this price and stability with the support of its foreign reserves, which are still at high levels.
"The Ministry of Finance has led extensive discussions in recent weeks after the approval of the budget from the Council of Ministers on the follow-up to the exchange rate adjustment, with several parties inside and outside the government, and these discussions will culminate next week with a proposed extended meeting with key economic actors from the public and private sector," the statement added, adding that "the ministry will develop its detailed policy program designed to increase the benefits of the exchange rate adjustment.
"The Ministry of Finance hopes that these measures will coincide with discussions within the House of Representatives on the budget," he said, noting that "the main policy measures for the protection of the poor and vulnerable have been included in the budget and discussed in the minister's statement regarding The budget." link
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KTFA
Samson: NASA is preparing to test the "most powerful" missile in the world
9th January, 2021
The American agency "NASA" is preparing to test the most powerful rocket engine in the world, known as the space launch system (SLS), which will take astronauts to the moon and Mars one day.
And according to the British newspaper "Daily Mail", the agency decided to test the engine, which could reach speeds of 17,500 miles per hour, later this month.
The agency confirmed that the four huge engines will be installed on the ground during the ignition test called "Hot Fire", which is the final test before the launch of the unmanned test flight later this year.
The missile has already undergone a number of static engine tests, and the next test will happen after January 17.
The SLS engine is designed to be the backbone of the Artemis program, which will get the first woman to the moon in 2024, and bring humans to Mars in the 1930s.
The $ 18 billion missile was first announced in 2011 and is set to reach speeds of 17,500 miles per hour to take humans and technology deep into space. LINK
Samson: The World Bank: The Global Economy Will Grow By 4% In 2021
9th January, 2021
Although the global economic output is recovering from the collapse caused by the Corona pandemic, the World Bank predicted in a report issued that it would remain for a long time without general trends before the outbreak of the pandemic, which exacerbated the risks associated with a wave of global debt accumulation that lasted ten years.
The World Bank suggested that the pandemic would increase the severity of the slow growth that is expected to extend over the next decade, noting that the main immediate priorities are to limit the spread of the virus, provide assistance to the disadvantaged population, and overcome the challenges associated with the vaccine.
He pointed out that in light of the severe weakness of public finance centers, which restricts government support measures in many countries, there is a need to focus on ambitious reforms to revive strong growth. International cooperation is vital to addressing many of these challenges.
Development risks persist as economic activity and income remain low
The World Bank expected that the global economy will grow by 4% in 2021, assuming that the initial distribution of Coronavirus (Covid-19) vaccines will become widespread during the year. But the bank says in its January 2021 Global Economic Prospects report that the recovery will likely be weak, unless policymakers act decisively to curb the pandemic and implement reforms to boost investment. He added, although the global economy is growing again after shrinking by 4.3% in 2020, the pandemic has caused heavy losses in deaths and illnesses, and pushed millions towards poverty, and perhaps reduced economic activity and income for a long time.
Commenting on the report, World Bank Group President David Malpass said, “As the global economy appears to be in a weak recovery, policymakers face daunting challenges - in public health, debt management, budget policies, central bank activities and structural reforms - at a time when they seek to ensure that this still fragile global recovery gains momentum and lays the foundation for strong growth ... To overcome the effects of the pandemic and combat adverse factors on the investment front, a major push is needed to improve the business environment, increase labor and product market flexibility, and enhance transparency and governance.”
According to World Bank estimates, the collapse of global economic activity in 2020 was slightly less severe than previously expected, mainly due to the less severe contraction in advanced economies and the more robust recovery in China. In contrast, the disruption of activity in most emerging market and developing economies was more severe than expected.
"There is a need to address financial fragility in many of these countries, as the growth shock affected the budgets of disadvantaged households and corporate budgets," said Carmen Reinhart, Vice President and Chief Economist at the World Bank Group.
Details in a section of the report reveal that the near-term outlook is still characterized by high uncertainty, and that different growth outcomes are likely. The poor-conditions scenario, which includes continued high infections and delayed distribution of vaccines, indicates the possibility of restricting global growth at 1.6% in 2021. At the same time, the improvement scenario, which includes success in controlling the pandemic and accelerating the distribution of vaccines, indicates Global growth may accelerate by up to 5%.
In advanced economies, the emerging recovery faltered in the third quarter after infections surged again, indicating a slow recovery and facing many challenges. The GDP of the United States is expected to grow 3.5% in 2021, after contracting at an expected rate of 3.6% in 2020. In the euro area, output is expected to grow 3.6% in the current year, after a decline of 7.4% in 2020. It is expected that Activity in Japan, which saw a contraction of 5.3% in the year that just ended, is growing at a rate of 2.5% in 2021. Total GDP is expected to grow in the economies of emerging markets and developing countries, including China, 5% in 2021, after shrinking 2.6% in 2020. The Chinese economy is expected to grow 7.9% this year after recording a growth rate of 2% in last year. Excluding China, emerging market and developing economies are expected to grow by 3.4% in 2021 after contracting by 5% in 2020. In low-income economies, activity is expected to rise 3.3% in 2021, after shrinking by 0.9% in 2020.
Analytical sections from the latest Global Economic Outlook review how the pandemic has exacerbated the risks surrounding debt build-up. How it might hold back growth in the long term in the absence of coordinated reform efforts, and what are the risks associated with using asset purchase programs as a tool of monetary policy in emerging market and developing economies.
“The pandemic has significantly exacerbated debt risks in emerging market economies and developing countries,” said Ayhan Kos, Acting Vice President of the World Bank for Equitable Growth, Finance and Institutions. Weak growth prospects will likely increase debt burdens and erode borrowers' ability to service the debt burden. The international community needs to act quickly and firmly ensure that the recent debt buildup does not end with a series of debt crises. The developing world cannot afford another lost decade.”
And just as severe crises have done in the past, the pandemic is expected to have continuing adverse impacts on global activity. It is likely to exacerbate the slowdown in projected global growth over the next decade due to underinvestment, declining employment, and shrinking workforces in many advanced economies. If we are to learn lessons from history, the global economy is heading towards a decade of disappointing growth unless policymakers implement comprehensive reforms that improve the main drivers of equitable and sustainable economic growth.
Policymakers need to continue to sustain the recovery, gradually shifting from income support to growth-enhancing policies. In the longer term, in emerging market and developing economies, policies aimed at improving health and education services, digital infrastructure, climate resilience, corporate and governance practices will alleviate the economic damage from the pandemic, reduce poverty and boost shared prosperity. In a context of weak fiscal centers and rising debt, institutional reforms aimed at stimulating self-growth are of particular importance. In the past, investors recognized the returns to growth from reform efforts by raising their expectations of long-term growth and increased investment flows.
Central banks in some emerging market and developing economies are using asset purchase programs in response to financial market pressures from the pandemic, perhaps for the first time in many cases. When directed at addressing market failures, these programs seemed to contribute to stabilizing financial markets during the early stages of the crisis.
However, in economies where asset purchases continue to expand and are found to be financing the budget deficit, these programs may erode the independence of the central bank and threaten to weaken the currency, which leads to removing the pillars on which inflation expectations are based, and increasing concerns about debt sustainability. LINK
This Fed Driven Bubble Destined To End Badly
The Nomad Economist: Premiered 3 hours ago
Reassurance from central banks is only emboldening investors to add to their risks. Regardless of what he says Fed Chair Powell has confirmed the Fed plans to continue its role as the great enabler.
Every time the Fed signals more easing or that it will keep rates low it boosts the ability of other central banks to do the same and governments to add to their stimulus packages.
This is why those demonizing the dollar may be wrong, if anything all fiat currencies that are under pressure from this expansion of the money supply. Central banks across the globe have been able to lower their rates or do additional stimulus without causing concerns their currency would crater.
The fact that so many loans across the world are based and loaned in dollars means countries and businesses must buy dollars to repay their obligations. This puts a bit of a foundation under the dollar going forward. It could be argued the reason several countries have reduced their US Treasury holdings is not that the dollar is slated to fall but is more related to the fact they have problems at home and need dollars in order to service their debt obligations.
Adding to the complexity of money flows is that America's stimulus packages are simply putting more icing on China's cake and the other countries that enjoy a trade surplus with America.
We are carrying the world on our shoulders. Rather than paying rent or making mortgage payments, it seems from the exploding trade deficit that Americans are taking much of the money they get from Uncle Sam and buying imported goods.