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alan_coaks_3
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Posts posted by alan_coaks_3
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5 - 20 - 2012
During an appearance on Meet The Press on Sunday, Jim Cramer of CNBC boldly predicted that "financial anarchy" is coming to Europe and that there will be "bank runs" in Spain and Italy in the next few weeks. This is very strong language for the most famous personality on the most watched financial news channel in the United States to be using. In fact, if Cramer is not careful, people will start accusing him of sounding just like The Economic Collapse Blog. It may not happen in "the next few weeks", but the truth is that the European banking system is in a massive amount of trouble and if Greece does leave the euro it is going to cause a tremendous loss of confidence in banks in countries such as Spain, Italy and Portugal. There are already rumors that the "smart money" is pulling out of Spanish and Italian banks. So could we see some of these banks collapse? Would they get bailed out if they do collapse? It is so hard to predict exactly how "financial anarchy" will play out, but it is becoming increasingly clear that the European financial system is heading for a massive amount of pain. Posted below is a clip of Jim Cramer making his bold predictions during his appearance on Meet The Press. He is obviously very, very disturbed about the direction that Europe is heading in....
But what is Europe supposed to do? Even though "austerity measures" have been implemented in many eurozone nations, the truth is that they are all still running up more debt. Are European nations just supposed to run up massive amounts of debt indefinitely and pretend that there will never been any consequences?
That is apparently what Barack Obama wants. During the G-8 summit that just concluded, Obama urged European leaders to pursue a "pro-growth" path.
Of course to Obama a "pro-growth" economic plan includes spending trillions of dollars that you do not have without any regard for what you are doing to future generations.
Germany has been trying to get the rest of the eurozone to move much closer to living within their means, but as the recent elections in France and Greece demonstrated, much of the rest of the eurozone is not too thrilled with the end of debt-fueled prosperity.
In Greece, the recent elections failed to produce a new government, so new elections will be held on June 17th.
Many EU politicians are trying to turn these upcoming elections into a referendum on whether Greece stays in the eurozone or not. If the next Greek government is willing to honor the austerity agreements that have been previously agreed to, then Greece will probably stay in the eurozone for a while longer. If the next Greek government is not willing to honor the austerity agreements that have been previously agreed to, then Greece will probably be forced out of the eurozone.
The following is what John Praveen, the chief investment strategist at Prudential International Investments Advisers, had to say about the political situation in Greece recently....
"If the pro-euro major parties fail to muster enough support to form a coalition and the radical left Syriza party and other anti-euro, anti-austerity parties secure a majority, the risk of a disorderly Greek exit from the Euro increases and could roil markets"Right now, polls show the leading anti-austerity party, Syriza, doing very well. The leader of Syriza, Alexis Tsipras, has declared that he plans "to stop the experiment" with austerity and that what the rest of the eurozone has tried to do in Greece is a "crime against the Greek people".
But the Germans do not see it that way. The Germans just want the Greeks to stop spending far more money than they bring in.
The Germans do not want to endlessly bail out the Greeks if the Greeks are not willing to show some financial discipline.
As we approach the June 17th elections, the financial markets are likely to be quite nervous. According to Art Hogan of Lazard Capital Partners, many investors are deeply concerned about how "sloppy" a great exit from the euro could be....
"Next week is only one of the four weeks we have to wait until the Greek election. Every utterance out of Greece makes us think about their [possible] exit and how sloppy that could be"Most Greek citizens want to remain in the eurozone and most European politicians want Greece to remain in the eurozone, but it is looking increasingly likely as if that may not happen.
In fact, there are reports that preparations are rapidly being made for a Greek exit. According to Reuters, "contingency plans" for the printing of Greek drachmas have already been drawn up....
De La Rue (DLAR.L) has drawn up contingency plans to print drachma banknotes should Greece exit the euro and approach the British money printer, an industry source told Reuters on Friday.And even EU officials are now acknowledging that plans for a Greek exit from the euro are being developed. The following is what EU Trade Commissioner Karel De Gucht said during one recent interview....
“A year and a half ago, there may have been the danger of a domino effect,” he said, “but today there are, both within the European Central Bank and the European Commission, services that are working on emergency scenarios in case Greece doesn't make it.”When these kinds of things start to become public, that is a sign that officials really do not expect Greece to remain a part of the euro.
And Greece is rapidly beginning to run out of money. According to a recent Ekathimerini article, the Greek government is likely to run out of money at the end of June....
The public coffers are seen running dry at the end of June, but this will depend on two key factors. First, revenue collection: In the first 10 days of May, inflows were about 15 percent lower than projected but there are fears that the slide may reach 50 percent. The GAO will have a picture for the first 20 days on May 23, while the last three days of the month are considered crucial, when 1.5 billion euros of the month’s budgeted total of 3.6 billion are expected to flow in.Second, whether the IMF and EFSF installments are disbursed: This is not certain, as the decision will be purely political for both providers and evidently partly linked to political developments. Earlier this month the eurozone approved a disbursement 1 billion short of the 5 billion euros that were expected.If Greece runs out of money and if the rest of Europe cuts off the flow of euros, Greece would essentially be forced to leave the euro.
So the last half of June looks like it could potentially be a key moment for Greece.
Meanwhile, the Greek banking system is struggling to survive as hundreds of millions of euros get pulled out of it. The following is from a recent CNN article....
The Greek financial system is straining hard for cash.Consumers and businesses are making massive withdrawals from Greece's banks -- leading to concern the beleaguered nation could be forced out of the eurozone by a banking crisis even before its government runs out of cash.Deposits are the lifeblood of any bank, and Greeks pulled 800 million euros out of the banking system on Tuesday alone, the most recent day for which figures are available.If Greece does leave the euro and the Greek banking system does collapse, that is going to be a clear signal that a similar scenario will be allowed to play out in other eurozone nations.
That is why Jim Cramer, myself and many others are warning that there could soon be bank runs all over the eurozone.
Sadly, the banking crisis in Europe just seems to get worse with each passing day.
For example, the Telegraph has reported that wealthy individuals are starting to pull money out of Spanish banking giant Santander....
Customers with large deposits have started withdrawing cash from Santander, the bank has admitted, as it tried to reassure concerned members of the public that their money is safe.Round and round we go. Where all this will stop nobody knows.
If Greece does end up leaving the euro, that could set off a chain of cascading events that could potentially be absolutely catastrophic.
Former Italian Prime Minister Romano Prodi recently stated that the "whole house of cards will come down" if Greece leaves the euro.
And if the "house of cards" does come down in Europe, that is going to greatly destabilize the global derivatives market.
You see, the truth is that the global derivatives market is very delicately balanced. The assumption most firms make is that things are not going to deviate too much from what is considered "normal".
If we do end up seeing "financial anarchy" in Europe, that is going to greatly destabilize the system and we could rapidly have a huge derivatives crisis on our hands.
And as we saw with JP Morgan recently, losses from derivatives can add up really fast.
Originally, we were told that the derivatives losses that JP Morgan experienced recently came to a total of only about 2 billion dollars.
Now, we are told that it could be a whole lot more than that. According to the Wall Street Journal, JP Morgan could end up losing about 5 billion dollars (or more) before it is all said and done....
J.P. Morgan Chase & Co. is struggling to extricate itself from disastrous wagers by traders such as the "London whale," in a sign that the size of its bets could bog down the bank's unwinding of the trades and deepen its losses by billions of dollars.The nation's largest bank has said publicly that its losses on the trades have surpassed $2 billion, and people familiar with the matter have said they could over time reach $5 billion.And if Europe experiences a financial collapse, the losses experienced by U.S. firms could make that 5 billion dollars look like pocket change. The following is from a recent article by Graham Summers....
According to Reuters once you include Spain and Italy as well as Credit Default Swaps and indirect exposure to Europe, US banks have roughly $4 TRILLION in potential exposure to the EU.To put that number in perspective, the entire US banking system is $12 trillion in size.Interesting days are ahead my friends.
Let us hope for the best, but let us also prepare for the worst.
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lol kamel
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nope this is the first time
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keep why dont you ever get on chat
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5 - 20 - 2012
The head of the Securities Commission Abdul Razzaq al-Saadi Enkhavd reasons, the general index of the Iraq market for securities very nature.
He said al-Saadi (range): The reasons for this decline is the result of investors awaited the budget for all companies and outcome of the election of those companies where the investor recommends the importance of choosing investment locations
Through the control of those companies and study its present and future, stressing that this situation is very healthy and normal, indicating that this case stand out annually since 1992 and so far, and usually gets down at the end of each year.
Saadi said: The second reason is the fluctuation of the value of Iraqi dinar against the dollar, making some money owners trading in their money in buying and selling process and these will be gone in the next few stage.
For his part, Executive Director of the Association of private banks, Abdul Aziz al-Hassoun: The Association may be diagnosed this case has long been an alert based on the market and the central bank to drop that will happen to the market index is generally a result of central bank's decision on increase of capital for the banks to the limits significantly.
He Goldfinch: This decision prevented many of the shareholders participating in the capital increase, where we see there is a great offer for the shares traded for the sale, especially in the banking sector, which accounts for 90% of the daily trading volume of the meetings of the Iraqi market for securities that so they can be a loss and a decline in share price one.
In turn, the economic expert Thamer Alheimus: The main reason behind the decline in the general index of the Iraq market for securities is the dominance of the private banking sector, the owner of the money supply the largest in the process of buying the dollar in daily auction of the Central Bank of Iraq. He Alheimus This auction has seen fluctuation in the exchange rate Iraqi dinar against the dollar as treats many investors and non-Iraqis, especially through these banks, and demand the current daily to the dollar up to $ 500 million a day buying with the central bank to sell limited amounts not exceeding $ 300 million in daily auction, which requires a mass cash in hard currency , which made many investors are waiting the stability of exchange rates.
Sales of the Iraqi Central Bank Bmzadeh for buying and selling foreign currencies at the end of its weekly, last Thursday to a record $ 265 million versus $ 153 million the previous session, a basic 1166 exchange rate of dollar for dollar. The bulletin issued by the Central Bank of the total volume of demand for the dollar was 265 million and 55 thousand dollars, covered by the central bank at an exchange rate baseline of 1166 dinars per dollar sales were recorded the previous session, the amount of 153 million and 330 thousand dollars. This comes after a sharp decline of the dollar sales in the Central Bank on the fourth of April, after his decision to tighten the conditions of sale currency, reaching less than half the average normal to the need of the market daily, which ranges between 150 to 160 million dollars a day. The sales meeting last Thursday, higher than the average sales routine over the past few years, after they have fallen significantly since early February current, compared with the end of 2011 and the month of January last, and which averaged about 200 million for the session, after the increase in demand in an unprecedented way, because of the sanctions imposed on Iran and Syria and the decline in exchange rates of the lira and Altoman half. Which called for the central bank to tighten foreign currency sale to private banks are required to disclose the clients of the applicants purchase, according to the instructions adopted at the first of February 2012, and ratified the instrument on the use of a single customer for the purposes of tariff. To return the central and emphasizes procedures for the sale of money orders last week, and declares it responds to the orders, but the existence of accountable tax year, and official documents to prove that the money is going to trade already, bringing the dollar exchange rate locally abruptly up to 1270 dinars per dollar, after it was at 1240 dinars per dollar.
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this is good
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5 - 19 - 2012
Twilight News / attributed to the Parliamentary Integrity Commission, on Saturday, the reasons for decline of the Iraqi dinar against the U.S. dollar to the federal government's attempts to link directly to the Central Bank, while the accused unnamed limbs of trying to weaken the oversight role of parliament and stripped of his powers.
A member of the Integrity Commission, Khalid al-Alwani said in a statement reported for "Twilight News", "We are in the Integrity Commission, we visited the Central Bank shows us that one of the reasons for the decline of the Iraqi dinar is the government's attempts to link the bank directly," noting that "this matter is not permissible that the Bank linked to the House of Representatives is within his powers. " Alwani said that "the Constitution systems, many of these files around the problems that arise," calling on all parties not to double standards in dealing with the constitutional articles Vtqubl each other and refuse to serve according to their own interests.
He noted a member of the Integrity Committee to "the existence of attempts to weaken the House of Representatives and the looting of his powers", describing Iraq as "an exceptional situation lived by all means he has not recovered from intractable problems that must be solved through the method of dialogue."
Alwani explained that "the causes of the current political crisis lies in the attempt to impose a fait accompli to others and end the state of harmony that enabled Iraq to cross some of the adversity he faced."
The al-Alwani, a deputy from the existing Iraqi "fear of the country's progress towards the establishment of a new dictatorship established in the light of the inability of parliament for the performance of the real role and fought some of the political blocs on the interests and forget the worries of the real Iraqis."
He said al-Alwani, that "the adoption of the principle of compatibility between the components and achieve balance in the File Manager, and the postponement of major crises until the availability of land suitable for processing is the guarantor of the country set aside the state of anxiety and paralysis and instability experienced by today."
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5 - 17 - 2012
Baghdad (newsletter) ... Economy and Investment Committee member excluded Deputy/Iraqi/coalition, a project of Qusay Gomaa deleted the three zeros from the currency early next year, saying he needs the approval of the Iraqi authorities through legislation.
He said Gomaa (News Agency news) on Thursday: draft deleted three zeros Iraqi currency needs sufficient time to apply and cannot be implemented in a short period of time, because it involves deleting zeroes and change the currency format, but only with the consent of the legislative and executive branches in the country through legislation.
He said that the Central Bank has the power to delete zeros from the currency and not in the process of changing the currency format by the law, adding that the process was a new form of currency requires enactment by Parliament to determine the size and shape of the currency.
Noted: that the implementation of the project is necessary for Iraq to reduce liquidity in the domestic market, but needs careful study and to have sufficient time to apply, noting that successful project experience many have fought the world as Turkey which had been deleted from its currency (6) zeroes and other countries.
And the parliamentary Finance Committee revealed earlier that the deletion of zeros and replace the Iraqi currency would be early January 2013, indicated it will start printing the new currency in various categories.
While the Secretariat of the Council of Ministers on 12 April 2012, a decision to wait in the application deleting zeros from the currency and requiring all the procedures relating to stop the process until further notice.
The Iraqi Central Bank, announced in January 2012, intended to put three large segments of the Iraqi dinar include 200, 100 and 50 dinars after deleting three zeros from the currency, he said the process of replacing the currency take two years.
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even if they do RD there can still be an RV after it so its not that big of deal i guess
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i am giving you all + for being nice tonight
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lol its off of the currency not the exchange rate
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5 - 15 - 2012
BAGHDAD / JD / .. called on the Iraqi Central Bank to set up a joint coordination committee of the parliament and the government to resolve the issue of the project to delete the zeros of the Iraqi currency. The deputy governor of Bank of the appearance of Mohammed to the reporter and the agency / JD / delete the zeros that the draft project is a radical change includes modification of accounting systems for all aspects of the state and is not easy. He added that the main problem in the delay of the project lies in the fear of many officials of the project, noting that this fear caused by lack of knowledge of the benefits of the project and its effectiveness in supporting the Iraqi economy. And that while the benefit to Oakd meeting of the Joint Committee, the decisions will be binding for all. He noted there is a problem of timing, as the opinion of the Council of Ministers on the patient in the project due to the timing may not be appropriate to start such a move, because similar projects carried out in a more stable political conditions. The Central Bank of Iraq plans to make a radical change in monetary policy through a deletion of three zeros from the monetary issuance, which is estimated at 32 trillion offset 4 billion banknotes and different categories and this number is large, either in the case of application of the new system, it will provide for the issuance and printing of 4 one billion paper currency of the new categories of old, where damage to ancient coins every 5 years and new Ataatlv so quickly so the project is very economic. The main task of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign currency reserves and the organization of the banking sector.
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5 - 13 - 2012
Baghdad/term
Called on parliamentarians to establish an Iraqi bank contributes to the public and private sectors, confirming the importance of the development of the banking system, which is the basis of the investment process in the country.
Witness the banking system Government subsidiary flounder as a result of the absence of a clear and modern banking technology awareness programs, to make its work limited to issuing letters and farewell money.
Member of the Economic Committee Abdullah Abbas sheyaa by (Agency news): the banking needs of modern banking systems suited to the practice in the world showing the Iraqi economy, free market oriented.
Sheyaa: that was the draft founding contributor Bank by the Government and private banks would ease that bear a great burden of Government, provided the Bank was granted some powers that help him contributing to the development of the investment process in the country as open credit and loans and certain other transactions.
It is recalled that the financial deposits by customers of Government banks (90%) Volume of deposits at banks of eligibility because of high public confidence, being supported by the State, although they are technologically advanced.
Said Economic Committee decision mohama Khalil Kassem, Deputy to the banking sector "obsolete" due to unstable conditions of the country, therefore, must develop scientific plans, working President rehabilitation is to attract investors to the Iraq capital.
He said Qassem: rehabilitation involves the departure of red tape in banking, legislation obliges the Iraqi banks develop its work according to the evolution of the world, and help to enter the Iraqi environment to investors.
Qasim said: that the country needed to establish an effective contributor to the Bank by some private banks and with the support of the Government of Iraq to increase its capital and be able to perform the investment process in the country.
And see the investment process in the country deteriorated because of political differences that gave a message that is reassuring for the investor and prevented him from going to Iraq for the purpose of investment.
The Committee member explained that the national body albegari Noora to invest sent a worksheet as amendments to the Iraqi investment law includes special support for Iraqi banks failed for long global banking evolution due to circumstances that passed on Iraq, as well as an intention to convene a Special Conference on how to develop Iraqi banks in parliamentary Economic Committee.
Albegari said that the idea of creating an Iraqi bank will be a successful contributor and would help to promote the investment process in Iraq it would create competition between the Government and private sectors, confirming that reliance on the Government sector would create a significant defect in the Iraqi economy because it supports the free market and not centrally holistic.
And Iraq's banking system consists of three and forty banks as well as the Central Bank and distributed by ownership between (7) and banks (30) communal banks, including Islamic banks (7) in addition to (6) foreign banks.
Although the investment law No. (13) of 2006 investment in the banking sector were excluded from its provisions, however, investment in the banking sector takes its legal framework based on Central Bank legal number (56) of 2004 and banks no. (94) for the year 2004, the minimum to establish a bank in Iraq 100 billion dinars, around 85 million dollars.
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removing the zeros means ur 25000 dinar will be worth 25
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lol most people dont even no what remove the 3 zeros mean
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5 - 12 - 2012
Baghdad/JD/...Member of the parliamentary Finance Committee and Attorney for Haitham Al-jaburi to National Alliance application process to replace the currency correctly to minimize oscillation caused. He said al-Jabouri l/JD/"replace current oscillation reduces the currency between Iraqi dinars to one dollar if applied with deliberate steps and correct". "The growing demand for hard currency because this currency and value of their small size, high purchasing and therefore resort to convert his dinars, Iraqi traders to dollars." And between "to toggle the Iraqi dinar currency because of the great pressure on the dollar and contributed to slumping unsettling the market at the moment." He is a member of the parliamentary Finance Committee and Attorney for the National Alliance on his optimism "deleting zeros from the dinar. The Government had demanded the wait in the process of replacing the currency which was hoped their starting soon.
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5 - 12 - 2012
Baghdad: the planning Ministry announced dinars higher inflation indicators for the month of April last (1%) In comparison with the previous month. With the annual inflation index for the period from April 2011 through April 2012 (8.7%). the Ministry attributed in a press release issued by the information Office of the reasons for the high annual inflation to higher prices for food section and non-alcoholic beverages with markedly total (13%) As a result of higher prices of vegetables ... As well as the high proportion of housing section asaa (7.9%) From rising prices of residential rents by (14%) The Ministry statement said the Central Bureau of statistics, the inflation report was completed for the month of April 2012 based on field data collection on prices of goods and services components of consumer basket sample selected sales outlets in all the governorates of Iraq. The results showed that: first: indicators of consumer price indices at the level of the overall index reached Iraq for consumer prices (142.4%) In April 2012 registered a rise of 1.1% for the month preceding rate rate of 8.7% compared with April 2011 results showed by section:-1. Department of food and non-alcoholic beverages:-this section higher prices during the month of April 2012 at a rate of 1.0% compared with the previous month, as a result of higher prices in the region of Kurdistan, at a rate of 1.9% in the Center at a rate of 0.1% in the South at a rate of 2.1%, the main reason for the high price of this section on the level of Iraq owing mainly to higher vegetable prices. This prices soaring section 13.3% compared to prices in April 2011. 2. alcoholic beverages and tobacco: price recorded in Iraq this month declined at a rate of 0.5% compared to the previous month, as a result of lower prices in the South at a rate of 1.5%, while stabilized in both Northern and central regions. Section prices rise 3.9% compared to prices in April 2011. 3. clothing and footwear: prices recorded in Iraq rose during the month at a rate of 0.2% compared with the previous month, as a result of higher prices in the Center at a rate of 0.4% in the South at a rate of 0.3%, while dropping in Kurdistan at the rate of 0.6%. Prices of this section 7.3% higher rate compared to prices in April 2011. 4. housing:-section: this section-prices rise during the month at a rate of 2.2% compared to the previous month, as a result of higher prices in the Center at a rate of 1.6%, and in the South at a rate of 4.8% while in Kurdistan at the rate of 0.1%. Section prices rise rate 9.7% compared with prices in April 2011 because of rising prices for rents aldoralsknet average 14.1%. Subset of fuel (gasoline, oil and gas) for the subset of fuel (gasoline, oil, gas) prices have seen a decline during the month of April 2012 at a rate of 1.2% compared with the previous month due to low prices in the region of Kurdistan, at a rate of 6.1% in Central region at a rate of 0.6% and in the South at a rate of 0.4%. Lower prices this series at a rate of 0.7% compared to prices in April 2011. 5. household furnishings and equipment section: prices recorded in Iraq rose slightly during the month at the rate of 0.1% compared with the previous month, as a result of higher prices in the region of Kurdistan, at a rate of 0.4% in the Center at a rate of 0.1%, while prices stable in the southern region. Section prices rise rate 2.7% compared to prices in April 2011. 6. health section:-price rise registered in Iraq this month at a rate of 0.4% compared to the previous month, as a result of higher prices in the region of Kurdistan, at a rate of 1.4%, both in the Centre and South at a rate of 0.2%. Prices soaring this section 7.4% compared to prices in April 2011. 7. transport section: prices recorded in Iraq rising at a rate of 0.3% compared to the previous month owing to high prices in the region of Kurdistan at the rate of 0.2%, and in the Center at a rate of 0.7%, while prices in the South at a rate of 0.2%. Lower prices this section at a rate of 2.5% compared to prices in April 2011. 8. section contact:-prices in Iraq registered a decrease of 0.4% during the month compared with the previous month, as a result of lower prices in the South at a rate of 1.2%, height in Kurdistan at the rate of 0.7%, while prices have stabilized in the middle. Prices this section 3.5% decline rate compared to prices in April 2011. 9. Leisure and culture section: prices recorded in Iraq decreased 0.2% during the month compared with the previous month, dropping prices in Kurdistan at the rate of 0.1% in the South at a rate of 0.7%, while prices have stabilized in the middle. This section prices decreased 0.8% compared to prices in April 2011. 10. education section: this section stable prices during the month compared with the previous month, due to a slight rise of prices in the region of Kurdistan by 0.1%, while prices have stabilized in the Centre and South. Prices this section 5.9% higher rate compared to prices in April 2011. 11. section restaurants:-price rise registered in Iraq during the month of 0.3% compared to the previous month owing to high prices in the Center at a rate of 0.7% and falling in the South at a rate of 0.3% while prices settled in the region of Kurdistan. Section prices rise rate 6.9% compared to prices in April 2011. 12. miscellaneous goods and services section:-price rise registered in Iraq this month at a rate of 0.3% compared to the previous month, as a result of higher prices in the region of Kurdistan, at a rate of 1.2% and the mean rate of 0.1% in the South at a rate of 0.3%. Higher prices this section 11.8% compared to prices in April 2011. 13. inflation (121.12%) Registered higher rate (1.0%) Previous month rate (6.7%) From April last year. Secondly: indicators of consumer price indices at the level of regions 1. Prices in the region of Kurdistan in April 2012 compared with the previous month, a rise of 0.7% was caused mainly by rising prices of food and non-alcoholic beverages at a rate of 1.9%, prices of household furnishings and equipment and maintenance at a rate of 0.4%, prices of health at a rate of 1.4%, transport prices at a rate of 0.2%, prices of call rate of 0.7%, prices of education at a rate of 0.1%, prices of goods and miscellaneous services at the rate of 1.2%. 2. in the mean prices in April 2012 compared with the previous month, a rise of 0.7% was caused mainly by rising prices of food and non-alcoholic beverages at the rate of 0.1%, the prices of clothing and footwear by 0.4%, prices of housing at a rate of 1.6%, prices of household furnishings and equipment and maintenance at a rate of 0.1%, prices of health at a rate of 0.2%, transport prices at a rate of 0.7%, prices of restaurant at a rate of 0.7%, prices of goods and miscellaneous services at the rate of 0.1%. 3. the prices recorded in the South in April 2012 compared with the previous month, a rise of 2.3% resulted mainly from higher prices of food and non-alcoholic beverages a rate of 2.1%, the prices of clothing and footwear at a rate of 0.3%, the prices of housing at a rate of 4.8%, prices of health at a rate of 0.2%, prices of goods and miscellaneous services at the rate of 0.3%.
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5 - 12 - 2012
Current exchange rate crisis highlighted the need for a brief pause for reflection on the conditions the Iraqi economy. There is no doubt that the monetary crisis is a reflection of the overall economy crisis express a deep structural imbalances. external causes that stumping (smuggling hard currency to Iran, Syria, etc.) is not enough in itself to interpretation despite his health partially, and in this regard we note that attacks of foreign-oriented areas soft and porous, but why not go attack the teeth to other markets in currency as a Gulf markets?
As these markets and economies of organization largely stable, flaccid economy oriented attack and unregulated market, and in our case this is the Iraqi market is the target.
Therefore, it is necessary, refer to the most important structural imbalances afflicting the Iraqi economy. And the necessity of referring to lie in interpretation from the wizards short, long-term photo.
1. the crisis of the real economy, the sector stagnated since 1991 from the devastating effects of wars and the economic blockade and the fact that the Government sector ... was dominant, influenced by these factors too has seen any qualitative but merely governmental activity with the purpose of maintenance effort limited. The private sector was vastthmarath and has also continued marginal evolved qualitatively. aggravation after 2003 as governmental sectors were almost completely turning your profit trend alastthmara the fastest and cheapest is trade. Reflected on the size of domestic production and employment.
2. the deterioration of the agricultural sector and especially after 2003.
3. as indicated in points above coinciding with increased Iraqi economy based on the export of oil as a source of almost alone to provide hard currency and economy (Iraqi society) to economy of incomes is an enhanced privilege escalating oil prices continued to rise.
4. rule of consumerism in society and transformation of excessive consumption and dissipation compensation case of deprivation before 2003 and rule look search for equivalent consumption patterns in the Gulf and Europe soon without link supposed evolution of the real sector and sliding again as a reflection of economic rent-seeking.
5. a trading chaos might not have seen any economy last for example even statistically purely administrative regulation process leave import violent resistance at all levels, as well as import duties and non-lenient too., thoughtful, reinforced the trend towards excessive consumption. absence of export activity (excluding oil)-based deterioration in the real sector, strengthened rule of style economy rental.
6. monetary and financial chaos: this wasn't a novel but the former Government from understanding that the country has not been purely property subject to any serious discussion and disbursements are only desire and recommendations (Commander = schema) without sound economic considerations and without any room for discussion. Either the monetary sector, based on market forces left to determine the exchange rate. After 2003 and despite the adoption and approval of the budget debate within Parliament continued extrabudgetary Exchange very large amounts (see Chalabi's remarks that no negation) yet we submit the final accounts for many years. Continued adoption of budgets with a clear deficit without questioning and searching for future serious surpluses recycled meaning that budget deficits and recognizes eventually called a surplus and the important question of why ended with a surplus of Wayne went this surplus and its impact on economic activity. Etc in monetary field, despite the relentless pursuit of the Central Bank, has continued proliferation of offices and shops banking without any deterrent or an officer and private banks to have proliferated dramatically to question outside continued to import finance and banking frameworks has grown the phenomenon of capital flight and others.
7. other sectors linked to the economic situation crisis mstaselh e.g. hastily higher education sector, research and development, societal values, infrastructure, housing, water problem.Etc.
Either economic policy which assumes that proceeds from the recognition of imbalances and seek to address them, note that the primary perceived, perhaps the only, is non-oriented economy and the shift towards a market economy, and the neglect of fact recognized all the Iraqi economy deteriorated over the past 3 decades, necessitating treatment. considered to go to free economy policy as the sole crane of any irregularities and corrected (recall visions Friedman cash) ignoring knowingly growth economics.
All stories after World War II based on the essential branches of policies and programmes. The first is to develop visions for public, community wants anywhere he wants under the Sun, is merely the role of affected or wants to be an active participant, you will want to become literate borrowed empowerment in science and technology or stay in darkness of ignorance, do you want to turn into an advanced industrial society or remains an agricultural society, may support balanced growth or unbalanced growth, do adopt push, Can develop alternative energy sources or remain dependent on oil refineries, and many others. Constitute an ensemble (Revelation) what should be the community, some call it nationalism or national, or challenge, or feeling of pride, or the future planning of Orientalism, the vision is simply is the sum of all these concepts.
And the second thing is the role of the State, contrary to myth (let him work, let him pass) classic and the alleged neutrality of the State, capitalism did not arise only in the embrace of the sponsoring State directed and the garrison had been established first capital accumulation by conquests, colonialism led by (State). Aside from this luxury historic intellectual experience of modern development we have seen only the welfare State and its active role, whether direct investment and/or router. And it has become recognized in the literature on International Monetary Fund, many intellectuals (sitghalz school alkenzet generally) that State almost crucial role not only in developing economies but also in the world economy as a whole and without breaks down the capitalist system and exposed to devastating crises and likely without developing State to remain stagnant.
Notable examples of the impact of these factors and their role in the successful experiences of development refer to Japan, China, Korea, Malaysia, Singapore, India, Brazil in its last and even Dubai experience. Return to economic policy in Iraq
We indent starting to lack (Revelation) guiding and addressed as we understand (vision) that the transition to a market economy and is visibly beyond concluded (wrongly) that the role of the State should be neutral and limited intervention in narrow areas. Not declared with opportunities to sit together to discuss our vision for Iraq's future.
It was therefore possible justifications to understand it in the first years of the State maalga last accumulations and dedication in the fight against the scourge of terrorism and sectarianism and promote national peace. But this is no longer understood especially after dwindling terrorist threats and reverse the threat of sectarian the fighting.
Understanding business to own as creative chaos develops first capital accumulation (read rapid enrichment regardless of any moral standard) and achieved successes, few and limited range also represents creative effort, predominantly it caused uncontrolled trade much less corruption.
State servant of venture capital and the mess instead of becoming Maid of capital for the development of creative and innovative national wealth and binoculars for recruitment.
Reflected in concentrated mainly on fiscal policy, operational expenses and especially public employment, again understandable justification was to attract unemployed and lift them from the temptation of terrorism and crime but for how long? The State cannot continue employment is not required nor possible.
We have seen so far, as far as I know, any project most of the wealth and real employment, but that the productive sector owned by the State has suffered negligence led to stops working although its capital is in good condition or possible rehabilitation. There is no plan to go far from the draft this year and that we want him in the coming year, so in other words we do not have a five-year plans due to absence or decimal (vision).
Although the previous years ' budgets had included a "catalytic" as it is understood alkenzi the impact on the real economy was very limited for a variety of reasons, most notably the failure to achieve planned spending, the inflexibility of the productive sector, not because of the absence of excess capacity but due to external factors such as security and the lack of electricity and high local wages and others, and also because of the very high marginal propensity to import linked to rising dinar against the dollar and is what leads to monetary policy.
From General State, strategic meaning of monetary policy by providing adequate climate to achieve desired economic objectives through monetary instruments. In order to lead the Central Bank the desired cycle away from narrow political whims and volatility, handshake device independence bonus for State Executive. Thus, business plans and builds expectations of behaviour based on known and stable monetary policy and hoped that Central unable to address imbalances instantaneous way predictable and guaranteed work (effective and efficient).
Central since 2003 has faced great challenges and dangerous mainly to debt overhang on Iraq, relations with international institutions, the relationship with the World Bank, organization and development of the domestic banking system, replacement of currency, exchange rate control, respond to the demands of the new economic policy and the transition to a market economy. these tasks constituted a considerable burden on the central device, but faced with courage and succeeded in the exam generally despite hiccups here and there.
Currency auction form the cornerstone in stabilizing the dinar but quietly towards the ongoing evolution towards improving dinar that arrived in the current price (1166 JD/dollars) this policy as a means of curbing inflationary forces.
Currency auction was generally accepted especially by any owners of limited income as long as the purchasing power of salaries rise continuously as well as acceptable business/importers for obvious reasons, but the production is adversely affected by this policy is no longer able to compete with imported goods which producers produce better conditions.
Also affected by the General State budget, the State spend more currency to get the same amount of Iraqi dinar and coupled with rising operational expenditures are rising which led to continued funding disability not as planned, but the result of the policy of fait accompli with reference to the size of the deficit would be larger if higher oil prices and increased production.
Although this policy is consistent with the recommendations of the IMF but it seemed desirable State to satisfy the general public under conditions of volatile political and social.
Continuation of this policy strengthened consumer trends in Iraqi society and frustrated investment in real sector of economy faced a rkodia real state sector did not submit to rehabilitate productive sectors and did not submit to qualitatively distinct new investments and the minimum shrink the productive sector.
Coupled with the continued turmoil in the foreign exchange market, i.e. mainly private banks and exchange offices, where hundreds of unauthorized offices that do not keep any records not subject any controls or control, which eventually led to the continued emigration of capital outflows.
It seems that the prevailing idea behind raise the value of the dinar is the surplus in the balance of payments, driven by higher oil prices without regard to the exclusion of oil sector an enormous deficit appears in trade and payments and weakness will show to what extent the recession in the sector ysshtri.
We can say that this is no longer acceptable from the standpoint of macroeconomic analysis and profound effect and mounting over a long time. Productive sector must revert activity cannot, in the light of the high prices of the dinar.
That this trend will increase pressure on the central reserves are necessary and guarantee for the economy as a whole certainly bet on continually increasing oil revenues consecrate the rentier nature of the economy and increase the risk of crises in the case of the emergence of new trends in the energy markets.
There is no doubt that the increasing integration of the world economy over the Iraqi economy from its appearance and makes it vulnerable to speculation, crises and what the current crisis only indicator can do international speculation and recall speculation on Sterling by an individual (George Soros) and speculation that ravaged Asian Tigers.
Central objectives include (to stabilize domestic prices, maintain stable financial system and promote development and provide employment and prosperity) and it seems that the second part of Central activation and goals play a bigger role in directing play advice and guidance to the Government so that this important aspect.
We believe that the current exchange rate is high and the Iraqi dinar is more than its real value, but the reverse will face severe opposition and resistance by citizens and importers can therefore understand severe attack on the Central Bank and its impact of the rise of the dollar in the market there is no doubt that this political ramifications and speculations.
Recognition from this truth should be translated into a corrective policies and also focused and broad information campaign to explain the expected impact in reducing exchange rate on domestic production and thus employment can and must go hand in hand with a policy of financial and commercial support for local production.
There is no doubt that the public, if touch and is satisfied with the benefits of the new policy would ease opposition particularly if satisfied that the reduction would positively affect employment.
And starting to believe the need to identify the average exchange rate is higher than the stated price by the central defence and then a quiet trend to modify more radical.
This immediate treatment and that accompany her to regulate import and foreign exchange market and others will bear fruit in the long term only a drastically confirm comprehensive national vision of the Iraqi economy.
Can we indent that (the problem of sluggish real economy) clearly aware of before the Central Bank researchers highlighted (see studies published on the Bank's site) and that there were strong analytical approaches and proposed treatments were worthy of consideration. It is regrettable that these analytical approaches do not reflect the opinion or policy but reflect Central only the viewpoint of researchers.
The publication of studies on the central site marks the existence of internal convictions need reform but not translated into (policies) marks a stronger pressure applied from Central prevents that.
Claim that the Western viewpoint and institutions such as the International Monetary Fund in particular tend to deal with recycling cash surpluses and pumped into the US and European economies to address crises and situations alrkodet first world economies. Any economic region (or country) succeed in forming the corresponding mean economic surplus growing trade deficit elsewhere (mainly American and Western Europe in General) which requires work to absorb this surplus through trade policy and/or cash-finance, or wars and local conflicts.
From here we recall their knees dates and the growing Asian, constant pressure on China to raise the value of its currency, the Gulf markets plunge, consumer goods and entertainment, and multiple wars in the Middle East.Etc.
To the extent that the resources of Iraq after 2003 and has grown in the absence of proper (Revelation) for socio-economic reform, the duty of international institutions is to impose trade policies — cash working on redirecting this surplus and absorbed not only the short term any absorption current surplus but seek to consolidate trade policies — cash works to absorb future cash surpluses through deepening consumer rental-character of the Iraqi economy.
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5 - 12 - 2012
Baghdad/JD/...The Iraqi Central Bank revealed a slight decline in the demand for hard currency. Bank Governor Sinan Al-Shabibi l/JD/"demand to buy hard currency dropped slightly after taking new measures to reduce the volatility of the dollar against the Iraqi dinar". Shabibi said "the Bank launched the currency freely available to dealers as controls." Central Bank Governor said that "the new procedures through which the Bank tries to prevent money laundering." The parliamentary Finance Committee had earlier confirmed that the Central Bank put restrictions on the sale of hard currency and require that the buyer has to dollar bank account and leave the import and trade lists in addition to the tax accounting. She is a member of the Committee and MP for the Liberal block for/JD Majida Al-Tamimi said "a meeting today of the Finance Committee with the Governor of the Central Bank and some representatives from the World Bank at the causes of the high rate of the dollar against the Iraqi dinar". Tamimi said "that the Central Bank under tight controls on the sale of hard currency in the Iraqi banks is that have submitted on purchase quantity of dollars leave import and bank account as trade lists and subject to tax account", stating "because of limitations on dollar buyers to control currency exchange rate of the Iraqi dinar in the market." Tamimi blamed the Central Bank for such asylum restrictions due to the instability of the dollar against the dinar, which had a negative impact on the work of the Bank. According to the parliamentary Finance Committee member and MP for the Liberal block "that the Central Bank put these restrictions to reduce width for the dollar,".
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5 - 12 - 2012
Twilight news/attributed the Ministry of planning and development cooperation, Saturday, rising inflation indices by 1 percent last month to increase food prices and housing section
According to a statement issued by the Ministry of planning has received "twilight news" copy that "annual inflation index for the period from April 2011 through April 2012 rose by (8.7%)." The Ministry attributed the statement of the reasons for the high annual inflation to increase food prices section and non-alcoholic beverages with markedly total (13%) As a result of higher prices of vegetables, as well as higher prices for housing section by (7.9%) From rising prices of residential rents by (14%).
The statement said Central Bureau of statistics in the Ministry report was completed April 2012 for inflation based on the field data collection on prices of goods and services components of consumer basket sample selected sales outlets in all governorates of the country. "
The United Nations Mission in Iraq declared in its statistical year, poverty in Iraq up to 23% saying it is creating jobs for young people in the oil and gas sectors and building the capacity of governmental institutions to benefit from the experience.
WE ARE ON THE ONE YARD LINE
in RV & Dinar Questions
Posted
where close to an RV or RD whenever they realse there newer currency