News, Rumors and Opinions Wednesday PM 1-27-2021
TNT:
Tishwash: The Finance Committee unveils a paragraph in the 2021 budget that provides the state treasury 5 trillion dinars
The Finance Committee in the House of Representatives revealed, on Wednesday, a paragraph in the 2021 budget that provides the state treasury with 5 trillion dinars.
Committee member Jamal Cougar said, according to government media, that "the Parliamentary Finance Committee decided in its continuous meetings to discuss the draft general budget bill to raise the price of a barrel of oil in the budget from 42 to 45 dollars and calculate it according to the specified price."
And Cougar stated, "This approach to raising oil prices and calculating them in the budget will save the state treasury more than 5 trillion dinars."
He added, "This also contributed to reducing the fiscal deficit in the budget law." link
Tishwash: Deputy: The country's economy is behind Iraq's borrowing trend
Iraq's economy is behind its borrowing drive, said Nada Shaker Joudt, a member of the parliamentary economic committee, noting that corruption and poor planning are ravaging the Iraqi economy.
"The government borrowed twice in Budgeta last year, and there is a demand for loans in the 2021 budget," Joudat told Shafq News, adding that "the main reason for this is that Iraq's oil-dependent economy is to finance its public budget."
"The fall in oil prices due to the Corona pandemic has worsened the economic situation in Iraq, and the policies inside Iraq have not activated other economic sectors such as agriculture and industry, which has made Iraq's markets open for imports, so the government is resorting to borrowing because the government does not have enough money to make things right," he said.
"Activating the economic sectors is not an easy task and needs time to promote them again," Joudat said, adding that "Iraq is ravaging its economy with corruption and poor planning."
The International Monetary Fund (IMF) said Sunday that Iraq had requested emergency assistance under the long-term financing instrument to support planned economic reforms.
Iraqi Finance Minister Ali Allawi told reporters that Iraq was in talks with the IMF for a 6 billion dollar loan. link
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Courtesy of Dinar Guru
Petra ...when they made that move [devaluing the currency] the clock started. And that clock is ticking down fast. Because they can't stay at that rate much longer. That's the biggest key to me. They've got to drive the truck home. The train has got to arrive in the station. Whichever analogy you choose to use. They can't stay at that rate much longer because it's gonna effect their people and their entire economy. We know the white papers don't work without it. Nothing works without it...if folks don't see it they're blind...if there's an end game we're at the final piece of it...
MilitiaMan Article quote: "Baghdad will be able to apply for a quick loan of two billion dollars through a special mechanism in the IMF dedicated to supporting the economies of countries." Iraq didn't get loans in the recent past from the IMF in the manner in which they speak now... That is because they were not ready yet. Now they apparently are ready to go international., as the IMF and others are working in tandem and have precautionary measures in place to make the transition smoother along the way.. imo.
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Q&A WITH LYNETTE ZANG AND ERIC GRIFFIN
Streamed live 2 hours ago
The Housing Market Epic Bubble Ready to Pop
The Atlantis Report: Jan 27, 2021
Real Estate prices in and around Los Angeles, New York, San Francisco, and Seattle are more irrational than they were in 2006. The Fed has ruined the real estate market.
November home prices rose 9.5%, one of the highest gains on record. The surge in home prices is not slowing down, because of high buyer demand and a record low supply of homes for sale.
Prices nationally rose 9.5% in November compared with November 2019, according to the S&P CoreLogic Case-Shiller Home Price Indices. That is the strongest annual growth rate in over six years and a significantly stronger gain than in October when prices were up 8.4%. It also ranks as one of the largest annual gains in the more than 30-year history of the index.
Nothing new here. It's another bubble caused by the Fed's unabated printing of money. The federal government manipulated the market by placing a moratorium on evictions and foreclosures. Thus reducing the amount of inventory, which drove the prices higher.
Now conversely, the Federal Reserve has stepped in and bought sight unseen (meaning the level of quality) a gargantuan amount of Mortgage-Backed Securities (these are the nasty instruments that caused the 2008 crisis due to all of the banks selling them at the same time); and thus reduced the stress on the system.
As they bought more MBS (print more money), they drove prices of hard assets higher.The gold and real estate prices and the inverse correlation (one moves higher the other one moves down) of interest rates.
As they bought more interest-sensitive securities, interest rates go down, and the price of hard assets (Gold and Real estate) go up.