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Cabinet approves budget 2013 138 trillion dinars

yota691

By yota691,
in Iraq & Dinar Related News

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yota691 Grand Master

yota691

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Cabinet approves budget for 2013 and exempts citizens of the benefits of bank loans

Date: 23/10/2012 15:36:50 Tuesday

Baghdad (news) .. Cabinet decided to ratify the draft budget 2013, which amounted to (138) trillion dinars.

said government spokesman Ali al-Dabbagh said in a statement received Agency (news) copy of it on Tuesday: price was calculated (90) dollars per barrel of oil exported and the quantity (9.2) million barrels per day, of which (250) thousand barrels per day from the Kurdistan region. added: that the Council also decided to exempt citizens of the amount of interest on loans granted to them by the Land Bank and the Agricultural Bank and the Housing Fund, and continue to grant such loans. / end / d. Q /

http://www.ikhnews.com/news.php?action=view&id=61089

Dabbagh: the government approved the budget that 2013 value / / 138 trillion dinars

Published on Tuesday, 23 October 1 / Okrudolf 2012 12:11 | Written by: Rasan | | | Hits: 8

BAGHDAD / With: government spokesman Ali al-Dabbagh approval of the Council of Ministers on the budget for fiscal year 2013, $ / / 138 trillion dinars.

Al-Dabbagh said in a press statement on Tuesday said: "The budget calculated on the basis of the export price of oil worth / 90 / dollars per barrel and a production value of / 2.9 / million barrels per day, / 250 / thousand barrels issued by the Kurdistan region."

Dabbagh said that "the Council of Ministers also decided to exempt citizens of the amount of interest granted to them by the Land Bank and the Agricultural Bank and the Housing Fund, and continue to grant such loans." (Finished)

http://www.mustakbal.net/index.php/2012-05-17-17-37-03/2012-05-17-17-38-54/26165-2013-138

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Dalite Newbie

Dalite

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So, what's your thought on this Yota?

With 60+ billion USD worth of Foreign Reserves to cover he deficits, why wouldn't they approve it.

The problem is that for every 10 billion $ USD that they drain from the CBI's reserves causes a 10 billion USD reduction in what they can use to set the exchange rate for any Currency Reform.

Budgets, tanks, airplanes, a new Camel..pretty soon you're talking about real money.

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rico1 Newbie

rico1

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Cabinet approves budget 2013 138 trillion dinars

Tuesday 23 v 1 2012 11:56 GMT

Alsumaria News / Baghdad

Council of Ministers approved, on Tuesday, the budget next year 2013 worth 138 trillion Iraqi dinars. http://www.alsumaria...ess%20news.html

It is good new that they have passed it but at the current Dinar and if I have done the math right that would make that budget about 1.186 trillion dollars at .0086 if I have made a mistake please let me know. :unsure:

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SocalDinar Proficient

SocalDinar

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With 60+ billion USD worth of Foreign Reserves to cover he deficits, why wouldn't they approve it.

The problem is that for every 10 billion $ USD that they drain from the CBI's reserves causes a 10 billion USD reduction in what they can use to set the exchange rate for any Currency Reform.

Budgets, tanks, airplanes, a new Camel..pretty soon you're talking about real money.

GM Dalite,

With the CBI being independent wouldn't the GOI need to borrow from the Bank? ( Government Bonds ) and would this money come from the reserves?

US borrows quite a bit from the FED ( A trillion dollars a year ) I'm not sure by any means, but I don't think we have reserves close to this?

So if the CBI sells these bonds to foreign countries it should not effect the reserves. Whats your take on this? Thanks

Thanks for the article YOTA!

Edited by SocalDinar
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danny55 Newbie

danny55

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I'm sorry but I'm relatively new to all this--- but doesn't setting a 138 trillion dinar budget for 2013 mean that the value of the dinar is going to stay exactly where it is now? I don't understand. Could someone shed some light on this for me, please?

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rico1 Newbie

rico1

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I'm sorry but I'm relatively new to all this--- but doesn't setting a 138 trillion dinar budget for 2013 mean that the value of the dinar is going to stay exactly where it is now? I don't understand. Could someone shed some light on this for me, please?

That would be my guess.

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SocalDinar Proficient

SocalDinar

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Posted (edited)

I'm sorry but I'm relatively new to all this--- but doesn't setting a 138 trillion dinar budget for 2013 mean that the value of the dinar is going to stay exactly where it is now? I don't understand. Could someone shed some light on this for me, please?

Danny,

We were all new to this once.

This budget is based on todays rate, which in my opinion has been manipulated. It has not changed ( besides 4 ips in january ) for almost 4 years now. There is no way Iraq would budget with a different than current rate. Just won't happen. The interesting part to this article is firstly that it has passed ahead of schedule and another good policy is the zero interest loans pointed out by Unirod.

Edited by SocalDinar
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easyrider Newbie

easyrider

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Danny,

We were all new to this once.

This budget is based on todays rate, which in my opinion has been manipulated. It has not changed ( besides 4 ips in january ) for almost 4 years now. There is no way Iraq would budget with a different than current rate. Just won't happen. The interesting part to this article is firstly that it has passed ahead of schedule and another good policy is the zero interest loans pointed out by Unirod.

I do like that as well about the about the zero interest loans. The strange thing is Shabbibi has had the reserves to back the Dinar in order to raise the value then the question becomes why has he waited so long to do so? currency manipulation which he is being charged with perhaps? i dont know if its true or not but its looking more and more convenient for shabbs that the dinar has only rose 4 pips in 4 years with the largest amounts of reserves in their history hmm you have got to wonder why the delay?

Edited by easyrider
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jg1 Mentor

jg1

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Has it been run in the gazette yet? Or does it not have to?

RV next week? Ok!

KK

MADD for Heather

I dont think this is set in stone, and like you say has it been published in the gazette? They are known for changing things around over and over so, dont say its over till its over right. Was telling this to my sister the other night. Budget does not look like a RV, then bammm. :o $$$$$$ chinggg.

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Dalite Newbie

Dalite

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GM Dalite,

With the CBI being independent wouldn't the GOI need to borrow from the Bank? ( Government Bonds ) and would this money come from the reserves?

US borrows quite a bit from the FED ( A trillion dollars a year ) I'm not sure by any means, but I don't think we have reserves close to this?

So if the CBI sells these bonds to foreign countries it should not effect the reserves. Whats your take on this? Thanks

Thanks for the article YOTA!

The CBI has consistently fought to be able to fully back the exchange rate. When they announced that they had 130% of the reserves necessary to back the rate, at that time, they could strengthen the rate by 30%.

Every dollar worth of reserves that is siphoned off by the GOI, diminishes the ability of the CBI to increase the value of the dinar.

After the GOI appropriates more than 30% of the reserves, the value will start to decrease in proportion to the remaining backing.

No foreign country would even think about buying bonds from a bank that is in the process of being nationalized by that country's government, and one with a shrinking monetary value.

If they could have sold bonds to back debt, they would have started 8 years ago. All they could have done would be to sell bonds for interest that could be obtained by reinvesting the proceeds at a higher rate.

Countries that have to depend on foreign reserves have little to attract foreign bond investors.

I could be wrong in my assessment, but have you ever seen a treasury bond from Vietnam Nam circulating in the US?

This thing about fractional reserve banking isn't an option for a Central Bank, unless you are a reserve currency, otherwise Greece and the other EU countries facing bankruptcy would be competing with the US in the printing game.

Maliki taking any reserves from the CBI, even if it is termed borrowing will lessen any possibility of the dinar gaining value.

If they could pay it off, they wouldn't have had to borrow it to cover deficits in the first place.

So far, they have not shown a profit, don't have dependable electricity or water treatment, and rely on imports. You can't borrow your way into prosperity .

Seeing Shabibi taken out of the equation for a GOI appointee is not a good thing. Time will quickly prove it.

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Nelson0528 Newbie

Nelson0528

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The CBI has consistently fought to be able to fully back the exchange rate. When they announced that they had 130% of the reserves necessary to back the rate, at that time, they could strengthen the rate by 30%.

Every dollar worth of reserves that is siphoned off by the GOI, diminishes the ability of the CBI to increase the value of the dinar.

After the GOI appropriates more than 30% of the reserves, the value will start to decrease in proportion to the remaining backing.

No foreign country would even think about buying bonds from a bank that is in the process of being nationalized by that country's government, and one with a shrinking monetary value.

If they could have sold bonds to back debt, they would have started 8 years ago. All they could have done would be to sell bonds for interest that could be obtained by reinvesting the proceeds at a higher rate.

Countries that have to depend on foreign reserves have little to attract foreign bond investors.

I could be wrong in my assessment, but have you ever seen a treasury bond from Vietnam Nam circulating in the US?

This thing about fractional reserve banking isn't an option for a Central Bank, unless you are a reserve currency, otherwise Greece and the other EU countries facing bankruptcy would be competing with the US in the printing game.

Maliki taking any reserves from the CBI, even if it is termed borrowing will lessen any possibility of the dinar gaining value.

If they could pay it off, they wouldn't have had to borrow it to cover deficits in the first place.

So far, they have not shown a profit, don't have dependable electricity or water treatment, and rely on imports. You can't borrow your way into prosperity .

Seeing Shabibi taken out of the equation for a GOI appointee is not a good thing. Time will quickly prove it.

No one can compete with the US when it comes to just printing currency. In fact the US is an anomoly. The only reason we can print dollars and even somewhat maintain their value (which as everyone has seen is diminishing rapidly because of all the recent printing of Trillions); is due to the PetroDollar, and the USD being a world reserve currency. Because of these two things, there is always demand for the dollar and thus the value remains artificially high.

Now sadly, many nations are going away from the petrodollar; and the USD as a world reserve currency, is being threatened by MOST of the G8. So, we're now on a precipice; and it doesnt feel like the pinnacle of our former glory or success either. :-/

Best wishes to ALL!

We're in for an even bumpier ride...

Edited by Nelson0528
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