War, plunging oil prices send Iraq's economy into crisis - AP article

[SocalDinar]

War, plunging oil prices send Iraq's economy into crisis

 

BAGHDAD (AP) -- Plunging oil prices have pitched Iraq into a severe financial crisis as it struggles to combat the Islamic State group, play host to millions of refugees and rebuild cities and towns ravaged by war.

Iraq's economy is almost completely reliant on oil, which accounts for 95 percent of government revenues. With global prices hovering around $30 a barrel, Iraq has had to draw on foreign exchange reserves to fill a shortfall in the 2016 budget, which anticipated $45 per barrel.

In past years, when oil prices were closer to $100 per barrel, Iraq had attracted foreign investment and rebuilt much of its oil infrastructure after decades of war and sanctions.

"We are now exporting greater quantities than ever before," said Oil Ministry spokesman Assim Jihad. "But in return the oil revenues have decreased."

The ministry says Iraq brought in a little over $2 billion in oil revenues last month, down from $3.3 billion in January 2015 and more than $7 billion two years ago, before the IS onslaught. The International Monetary Fund says Iraq is expected to run a deficit of $11 billion in 2016.

The private sector has also suffered. Taha Abdul-Salam, the executive director of the Baghdad Stock Exchange, says share prices fell by an average of 27 percent from 2014 to 2015 due to the drop in oil prices.

Iraq's Finance Minister Hoshyar Zebari says it will be "a difficult and harsh year for all of us."

The crisis extends to Iraq's northern Kurdish region. Many of the Kurdish fighters known as the peshmerga - longtime U.S. allies who have been among the most effective forces battling the IS group - are not being paid, Masrour Barzani, head of the region's security council, told The Associated Press this week.

Hisham al-Hashimi, a Baghdad-based security analyst, said he expects a similar scenario elsewhere in Iraq, as the central government struggles to pay soldiers and pro-government militias. He said many of the Shiite militiamen who have played a key role battling the IS group could be "laid off."

"There is not enough money to pay for them," he said.

Iraq is also grappling with a major humanitarian crisis. The U.N. estimates that more than 3 million people have been forced from their homes since the IS group swept across northern and western Iraq in 2014, capturing the country's second largest city, Mosul. The government recently said it needs $1.6 billion to respond to the crisis.

The cost of the war will mount even if Iraqi forces continue to advance.

In the city of Ramadi west of Baghdad, which was liberated from IS late last year, entire blocks were reduced to rubble and major streets were no longer recognizable. Similar devastation has been seen in other liberated cities and towns, and a costly reconstruction effort will be needed.

Even before the IS onslaught and the plunge in oil prices, authorities struggled to maintain aging infrastructure and provide basic services like electricity. Years of corruption, mismanagement and war have taken their toll, and half-finished malls and apartment buildings dot the Iraqi capital.

A series of billboards advertise the 2010 groundbreaking ceremony on a luxury apartment complex complete with swimming pools, a cinema, a mall and a hotel. But the signs are now yellowing with age, as unused construction equipment sits beside a fenced-off crater.

Basil Jameel Antwan, an Iraqi economist, said poor management is ultimately to blame for Iraq's current economic woes. He still describes the economy as "promising," but says it is in need of a major overhaul, with investment in non-oil sectors like agriculture, industry and tourism.

He laments that "we were unable to rehabilitate (the economy) when we had excellent oil revenues and profits."

 

http://hosted.ap.org/dynamic/stories/M/ML_IRAQ_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-02-11-03-13-56

Edited February 11, 2016 by SocalDinar

[caz1104]

SDT,

 

 

Thanks for the FANTASTIC article!!!! Nothing but GOOD/BAD news my LOPster mentor....................Great way to start the day !!! I'd plus ya but I know that's not cool or accepted for Us (me in training) LOPsters. Carry On!!!

 

 

LOPster (soon to be unionized)  CAZ!!!!!   OUT!!!! 

Edited February 11, 2016 by caz1104

[Shabibilicious]

I look forward to a "cheap gas" trip to my RV bank of choice.    

 

GO RV, then BV 

[Antietam]

Thanks, SD. As usual the shill-like entities are quick to belittle factual news stories so as not to stymie the flow of dinar sales. We can always count on caz and Shabs to respond in like manner ( probably the same person). There is no good news out of iraq. Let me repeat. There is NO good news coming out of iraq. They are simply clinging for dear life to the money loans of the WB and the IMF. This administration under obama will let iraq fall because that would strengthen Kerry's nuclear deal with iran, who will gladly inherit control of Baghdad. It might be a good idea to sell our dinars and buy Iranian rials. That currency will certainly RV.

[Shabibilicious]

Hahahaha......you said Stymie.    

 

 

GO RV, then BV

[caz1104]

"There is NO good news coming out of Iraq"...............he says with a smile on his face. Auntiem.............why is that?

I've never in my life known folks (LOPsters) that have enjoyed the despair others with such vigor.  

[rw.sutton]

Some like being noticed ! They must of been kicked around on the play ground, and made water boy on the football team,

[Shabibilicious]

I've never in my life known folks (LOPsters) that have enjoyed the despair others with such vigor.  

 

Don't know, caz.....Trump may get elected using the very same tactic.      As always, just my opinion.

 

GO RV, then BV

Edited February 11, 2016 by Shabibilicious

[Antietam]

There's nothing that even remotely approaches "joy" in my posting. It is simply fact. If you chose to ignore the facts as they present themselves in the mideast, then I would suggest you vote for Sanders, who wishes America was more like Denmark. Don't be a dinarian ostrich. Pull your head out of the guru's propaganda, and breathe a little reality for a change. Reality can be refreshing, and it can also be depressing, as is the Iraqi situation right now.

[caz1104]

"refreshing"  .......................being constantly negative is "refreshing" in your world?.......................hmmmmmmmmmm very interesting   (artie Johnson reference)

 

Once maybe "refreshing".....................but after thousands of posts....................."stale" & "boring" would be a better definition.

 

 

And YES we can see the JOY it brings you and your buddies through your posts.

 

 

LOPster (soon to be unionized)  CAZ!!!!!    OUT!!!!!

Edited February 11, 2016 by caz1104

[10 YEARS LATER]

Iraq has been in a perpetual state of CRISIS for 2 thousand years ( or more ).

[SocalDinar]

Funny how some will say you gotta do your research but then try to slam real articles.

Hypocrites " Do as I say not as I do "

[Antietam]

You will never get the shill-like posters to accept the reality of the Iraqi situation. It goes against the "RV Now" mantra which keeps selling dinars. Although I would wager that neither caz nor shabs have bought any more dinars for quite a few years. But they do like to promote them. Makes you wonder about them doesn't it.

[SocalDinar]

They really don't matter Antietam. People come down here to this section eventually after the euphoria wears off. They come down here and at la minimum they get to hear the flip side to this coin. I agree that their really is nothing good being reported out of Iraq these days. The people that venture down here can see that.. Many do realize that they made a mistake. It does not take long once you take a look at the numbers and admit it to yourself. And that's a hard thing to do. no one likes to admit that they were duped into something. But getting 90 cents on the dollar  is far better than losing it all, which i think is  a real possibility.

Edited February 12, 2016 by SocalDinar

[Antietam]

The problem, SD, is that they will not get 90 cents on the dollar. They ( me also) coughed up a 15-20% commission fee to buy the dinar and quite frequently you can't get above $750 per mil when you try to sell. And remember, there are some credible currency exchangers that you can trust, but they won't pay much above $700 per mil. That leaves you the shakey sell option of sending your dinars to an unknown entity, and we have already heard many horror stories of ripoffs. That is probably the biggest bottleneck in this endeavor. You can't get rid of them very easily. And if the peg keeps moving upward 1182, 1200, 1240, etc, it will become increasing difficult to unload them. Probably impossible to unload them. That is the great bottleneck which no guru will honestly talk about. They just keep preaching the old tired lie that you will be able to just walk into your local bank and exchange them. My WF here HATES the Iraqi dinar !

[SocalDinar]

I actually never considered selling to a dealer. I sold some on Craigslist and broke even. I sold most on Ebay . I only lost 10% - 15% on the 25k I sold there. But i made 30+% off my lower denoms ( thanks Breitling ). The pumpers tell people that the bad news out of Iraq is smoke and mirrors to get people to turn in their dinars and lower the money supply but that's wrong!! These notes are just changing hands to the next group of people duped into buying dinar. These notes are not going back to the Central Bank.

My Chase bank manager told me a long time ago ( don't do it !!! ) regarding the dinar. Did I listen to him? Heck no. He will be sorry I said to myself.

[Shabibilicious]

You will never get the shill-like posters to accept the reality of the Iraqi situation. It goes against the "RV Now" mantra which keeps selling dinars. Although I would wager that neither caz nor shabs have bought any more dinars for quite a few years. But they do like to promote them. Makes you wonder about them doesn't it.

 

Easy now big fella.  Feel free to browse any of my 10K+ posts and find one time I've said "RV Now".....never happened.  Though it's none of your business and I realize your agenda is to stay relevant among your cronies, I will humor your inquisitive nature.  I have bought Dinar one time in my life and I have them to this day.  I invested lightly, being a natural born skeptic when it comes to possible overnight riches.  Those riches never came, but as with any investment, it ain't over till it's over.  I honestly don't expect any sort of positive change in the Dinar in the near future, as Iraq continues down the road to further ruin, with the ISIS situation and low oil prices respectively.  All that said, I'm a patient man.  And since I don't have to feed or clothe my Dinar, they are free to house themselves in my lock box.  The real question here, in this particular tank, has always been the same......Why are non-investors here?  A question that's been posed maybe thousands of times over the years, and to this day, goes unanswered.  You want truth, yet refuse to share it.....and I'm not talking about articles.  So who's truly hypocritical here?  I prefer to shake up the waters through humor, laughter and sarcasm.....though it's boring and somewhat depressing, I can join in with you all and play the desperate and downtrodden, as well.    

 

GO RV, then BV 

[caz1104]

Goodmorning Shabs!!!!!

 

Love your post.

 

The Woe is Me gang will never answer the question HONESTLY as to why they are still here. They love bringing such JOY & GOODWILL(sic). I still believe its vengeance & revenge. They can't come to terms with the fact THEY of all people may have been duped..................thus the "smarter than 5th grader" attitude and the lame "I'm here to help" BS. I've stated numerous times if they were truly were here to help...................why not start their own site to offer folks info BEFORE they invest. Of course as anyone with half brain matter can see...................that's NEVER happen, nor will it EVER happen. It proves the basic point they AIN'T here to help. They are just like disgruntled employees that have been let go ..................but never leave!!! They just hang around and do their very best to disrupt.They can't and won't let it go...............their massive ego's will not let them. Sad actually

[SocalDinar]

Hey Shabibilicious,

 

I appreciate your humor and your candor.  Although your posts sometimes make fun of those labeled as Lobsters you never resort to childish name calling like some others that post here. I do hope you realize I was not directing my hypocrite statement towards you.

I have invested a huge amount of time researching Iraq. This research is really worthless anywhere else. I have over 5,000 posts . If I spent 5 minutes on each post ( Likely it should be more than that ) thats a total of 416 Hours or 17 day straight.

You on the other hand have over double that. Over a month solid of your time here for what you say is being lightly invested. I may be wrong,  but i would guess that you have never spent that kind of time on any other investment that you are lightly involved in.

Makes no sense for either of us to be here but yet here we are. LOL.  Keep up the Funny GIFs.

[Shabibilicious]

Good Morning to you Caz.

 

  Well stated as always.     I look forward to the emo induced, angsty responses that are sure to follow from our friends of unfortunate misfortune.     Still have time to edit.  SD, disregard this post....hahahaha.  

 

GO RV, then BV

Edited February 12, 2016 by Shabibilicious

[Shabibilicious]

Hey Shabibilicious,

 

I appreciate your humor and your candor.  Although your posts sometimes make fun of those labeled as Lobsters you never resort to childish name calling like some others that post here. I do hope you realize I was not directing my hypocrite statement towards you.

I have invested a huge amount of time researching Iraq. This research is really worthless anywhere else. I have over 5,000 posts . If I spent 5 minutes on each post ( Likely it should be more than that ) thats a total of 416 Hours or 17 day straight.

You on the other hand have over double that. Over a month solid of your time here for what you say is being lightly invested. I may be wrong,  but i would guess that you have never spent that kind of time on any other investment that you are lightly involved in.

Makes no sense for either of us to be here but yet here we are. LOL.  Keep up the Funny GIFs.

 

Like I've always said, the Dinar became somewhat of an afterthought early on for me.  Then I discovered the Off Topics and Political threads and I was literally hooked.  Seems I walk a different line than most here, and have an uncanny knack in bringing out the worst in people.  Clinton '16.     (my good friend caz, will love this)    

 

GO RV, then BV

[caz1104]

SD,

 

I love the way you present the holier than thou approach to "childish name calling".............all one needs to do is "research" your past posts. You LOPsters prove my point with almost EVERY post. LOPster somehow feel that its OK for THEM to do exactly what they claim they are attacked with...................all in the guise that its ok for THEY are the smart ones (NOW). You have my permission to CUT & PASTE that!!!!

[SocalDinar]

Like I've always said, the Dinar became somewhat of an afterthought early on for me.  Then I discovered the Off Topics and Political threads and I was literally hooked.  Seems I walk a different line than most here, and have an uncanny knack in bringing out the worst in people.  Clinton '16.     (my good friend caz, will love this)    

 

GO RV, then BV

I became hooked  a bit myself. I don't get on any other messege board but this one. No Facebook, twitter or any thing else like that. Like you said kind of addicting. Not quite as addicting as the Porn sites but my wife really does not appreciate me going there.

[caz1104]

SDT,

 

For someone who claimed to put me on ignore(childish,do you also lay on the floor and kick your feet, or hold your breathe till you turn blue?) you seem to respond quite often to my posts..............LOL

[Shabibilicious]

I became hooked  a bit myself. I don't get on any other messege board but this one. No Facebook, twitter or any thing else like that. Like you said kind of addicting. Not quite as addicting as the Porn sites but my wife really does not appreciate me going there.

 

My boss feels the same way......prude.    

 

GO RV, then BV