Tidbits from TNT Thursday Afternoon 3-12-2020
TNT:
Jambie67: US markets halted again to avoid freefall. Businesses and companies, such as Princess Cruise Lines, are closing for a period. Some businesses aren't in a position to maintain salaries if they choose to close. Salaries can't be paid. Sound familiar? Stock market way down and at a stalemate. When crisis is over, markets rise and economy booms.....the perfect storm to slip in an RV under the radar.
RVAlready: Stock market has needed enormous correction for a long time…Last time I talked to an investor, he could not even justify the markets position to me. Investments in thin air.
Jambie67: Yes, and the market behavior and recovery would completely conceal an RV since major adjustments would occur with both scenarios. Now! Now! Now! The perfect time! What are they waiting for? It can't get any more perfect than NOW!
Annie68: I agree that this may be the perfect time, but the intel certainly doesn't sound that way!
Jambie67: annie68 Intel is what their mouths say. Actions and movement is what they do. <---Let's focus on the latter.
RVAlready: This may be our chance to fix what Jefferson warned us about. Get rid of the federal reserve and their fiat currency. Get back to a decent market and a decent currency.
Ify: What goes down, must come up. All economic events in place to support a remarkable rebound to mask the massive exchanges about to take place. Huge injection of capital will be injected into the market post RV
RVAlready: Market keeps doing dead cat bounce. Computer programs are looking for a floor :)
Red: does a dead cat really bounce? just askin
RVALready: Does not bounce for long
Briona: I guess we are waiting until Sunday to see if they choose a new PM. I hope we can get out of this continuing loop of incompetent ministers, and get one who can complete the government.
Yada: Dont be surprised to see that Mahdi remains as PM,,articles are pointing to that,,Iraq and even the US are keen on the idea
Harambe: Reuters: Coronavirus makes Iran more dangerous: U.S. general https://www.reuters.com/article/us-health-coronavirus-iran-usa/coronavirus-makes-iran-more-dangerous-u-s-general-idUSKBN20Z26Q
Harambe: CNBC: Oil drops as much as 8%, on pace for worst week in more than a decade https://www.cnbc.com/2020/03/12/oil-drops-as-much-as-8percent-on-pace-for-worst-week-in-more-than-a-decade.html
Tishwash: Parliamentary economy warns of a global economic crisis that might rock Iraq
H The Parliamentary Committee on Economy and Investment expressed Thursday its deep concern due to the low prices of international oil sales, asking the government to take the necessary precautions to face a global economic crisis looming, whose impact will be strong on the Iraqi economy in light of the deficit and debts burdened with the state's general budget.
The committee said in a statement, "People" received a copy of it, today (12 March 2020), that it "provides the government with a set of procedures and decisions through which the government can manage the financial crisis, as follows:
1 - Stopping investment spending and reducing operational spending in all aspects of government activity immediately.
2- Agreement with the creditors to postpone the payment of Iraq's external and internal debts until the financial situation improves.
3- Obtaining state debts on mobile phone companies and telecommunications companies.
4- Stopping the payment of amounts to the investors of the electricity sector.
5- Working to enhance government imports and supply the treasury with the region's exports of crude oil and border entry points.
6- Reviewing the exchange rates from the Central Bank of Iraq to ensure prices that do not affect the citizen and at the same time secure the salaries of state employees.
7- Forming a supreme committee to impose the management of Iraqi treasury funds and to follow up the ministries, agencies and institutions that are lagging behind in paying the money obligated to collect them for the public treasury.
8- Any other measures that the government deems necessary to maintain the hard currency and prevent wastage of spending.
www.nasnews.com
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, on Monday called for the necessity of a speedy move towards emergency budget legislation that would provide financial sustainability at the current stage and meet the necessary needs.
Saleh said in a statement to the official agency, followed by "Nass", (March 9, 2020), "The drop in oil prices to less than $ 30 for a period of not short-term means, of course, dealing with a major financial-economic shock, based on the absence of important sovereign resources and deprivation." The general budget from them, taking into account that the country's budgets depend 92% on oil revenues.
Saleh added, “If the initial deficits indicators estimated in the Federal Budget Law 2020 are taken, which is approximately 50 trillion dinars (after high oil prices have been adopted, which are far away, which is about 56 dollars per barrel of oil produced) and this means The deficit will rise to double, if the spending ceiling remains in the 2020 budget over its current initial estimates of 164 trillion dinars.
He continued, "The financial deficit of this capacity cannot be funded, especially if oil prices continue to fall below $ 30 per barrel, except by borrowing from international capital markets, or by resorting to agreements with international financial and monetary institutions."
He explained, "Borrowing sums equivalent to the accumulated amount currently from the external debt in particular and by more than 70 billion dollars, closer to the imagination, given the absence of international bodies that offer such loans in the short period, in addition to the absence of economic logic when taking such fictional financial steps, which is an adventure not Commensurate with the sustainability of public debt and its standards in Iraq. ”
He stressed "the necessity of going in the short term to legislating an emergency budget that provides financial sustainability at this stage and meets the necessary needs, foremost among which are the salaries of employees and retirees, social care and health life requirements and necessities, and going in the medium term to re-examine all financial laws that burdened the country and its economic future." And establishing a real structure for alternative development of the rentier economy. ” link