2015 Budget - Going to be difficult

[caz1104]

DB,

 

The only time this place (Da Tank) has any excitement is when a regurgitated LOPster re-invents him/her self. My fav is when they come back claiming NEVER to have purchased dinar(LOL), but are only here to bring salvation to less fortunate stupid sheep. They all are NOW foreign currency/ economic experts. The personal stories (family,farm animals, etc) are just iceing on DA Cake. VH1 used to have(maybe still do) a show called "Where are They Now".....................DV should have the same for LOPsters-LOL. It could also be called "The Many Faces of LOPsters". Quick question that only Lopsters can answer: Why do you need to change your name & circumstance?.............it's not like folks buy into any of it. Guru's do the same thing........................hmmmmmmmm..... interesting. Coincidence?...............I think not-JMO

[rockfl9]

It was not difficult for Iraq to pass the budget - rock we now need a new topic. Also is any of your LOPSTER buddies coming back onto here under new names. If they are make sure they give a good sob story like their dog made them buy dinar

GO RV!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I must hand it to the speaker and COM for this legislative slight of hand. Did they really pass a budget or just 41 articles???

Proof will be in the execution.  They need to find 21T dinar somewhere. The more they borrow the harder it will be to balance the budget next year!

It is a good thing because if they continued on the 1/12 th plan they would go broker faster.

Now will the haggling begin? 

[dontlop]

Abadi on 2014 budget cutting the kurds out

Iraq

Iraq can’t finance budget deficit without Kurdish oil revenues, says legislator

Jan 19, 2014

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BAGHDAD // Iraq cannot finance its projected 2014 budget deficit unless the northern Kurdistan region pays its oil export revenue into the national treasury — or loses its share of state spending, a senior legislator said on Sunday.

Haider Al Abadi, head of parliament’s treasury committee, said the budget, swollen by extra expenditure, would “collapse” if the state kept paying the autonomous region its 17 per cent share even as the Kurds withhold oil export proceeds.

Baghdad’s chronic quarrel with Kurdistan over how to manage and share Iraq’s energy resources intensified this month when the Kurdish Regional Government (KRG) said oil had begun flowing to Turkey for export via a pipeline outside federal control.

Last week, Iraq’s oil minister threatened legal action and drastic trade reprisals against Turkey and any foreign companies involved in what he called the “smuggling” of Iraqi oil.

The KRG’s prime minister, Nechirvan Barzani, arrived in the Iraqi capital on Sunday to pursue talks on an issue that has bedevilled relations between Iraq’s Arabs and minority Kurds.

“We go to Baghdad with the intention of closing gaps,” KRG spokesman Safeen Dizayee said before the talks, which he said would focus on increasing Kurdistan’s oil output and a mechanism for marketing its exports.

Mr Al Abadi said the draft budget projected a deficit of about $18 billion (Dh66bn), assuming the Kurds paid the treasury the revenue from budgeted oil exports of 400,000 barrels per day (bpd) — a target industry sources say far exceeds Kurdistan’s current export capacity of around 255,000 bpd.

To Baghdad’s fury, the Kurds handed over no oil export revenue last year because of an unresolved dispute over the payment of oil companies operating in the northern region.

For much of 2013 the Kurds were trucking what industry sources estimated was up to 60,000 bpd of crude and condensates to Turkey, while the independent pipeline was being completed.

In 2012, the Kurds exported 61,000 bpd of crude via the Baghdad-controlled pipeline to Turkey, so the revenue went automatically to the central government.

Baghdad complained at the time that the Kurds should have exported more than double this amount, however.

Mr Al Abadi said state spending had risen sharply in the draft budget due to increases in pensions and the minimum public sector wage, child benefits and student allowances.

Echoing remarks made in the past week by the prime minister Nouri Al Maliki and Oil Minister Abdul Kareem Luaibi, Mr Al Abadi said the central government would have to cut the Kurds’ budget share.

“They are not contributing, so why should they get something out of it?” he asked in an interview. “At the moment we have a deficit of 21 trillion. If you add 15 to 16 trillion to it, the budget will collapse,” he said, estimating the additional shortfall if no Kurdish oil revenue is handed over.

Mr Al Abadi, who is also a senior member of Mr Al Maliki’s Shiiite Dawa party, said time was running out for the budget to be passed before parliament is dissolved ahead of an election on April 30. He said it would be hard to muster a quorum of 163 of the assembly’s 325 members during an electoral campaign.

Kurdish and Sunni Muslim opposition lawmakers would stay away, as would MPs busy campaigning or those without a motive to turn up because they were not running for re-election, he said.

Mr Al Abadi accused the Kurds of seeking to prolong oil talks until after the poll to entrench a fait accompli whereby they pocket their own revenue from oil “officially” piped to Turkey and still receive their 17 per cent share of the federal budget.

Kurdish officials say that in practice Kurdistan receives closer to 10 per cent of the national budget.

Even if the Kurds paid over notional oil revenues from exports of 400,000 bpd, Mr Al Abadi said, Baghdad would only just be able to bridge its 2014 budget gap.

He said the withholding of the KRG’s earnings also violated a UN security council resolution under which all Iraqi oil export proceeds must be paid into a UN-approved account in New York from which five per cent must be deducted to pay war reparations to Kuwait for Iraq’s 1990 invasion.

http://m.thenational.ae/world/iraq/iraq-cant-finance-budget-deficit-without-kurdish-oil-revenues-says-legislator

[RVPleaseToday]

$91,724,000 sold at auction 7/02.

 

So much for the $74 million cap. Apparently, the cap referred to something else.

Edited February 2, 2015 by RVPleaseToday

[dontlop]

http://iraqidinarchat.net/?p=33090

[rockfl9]

It was not difficult for Iraq to pass the budget - rock we now need a new topic. Also is any of your LOPSTER buddies coming back onto here under new names. If they are make sure they give a good sob story like their dog made them buy dinar

GO RV!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

DB ::: Still have a few i's to dot. If you read the budget it contained a few conflicting paragraphs. In haste they voted them in without really understanding. I would not be surprised for the president to remove them before approval. Like a line item veto , if that is permitted.

[rockfl9]

It was not difficult for Iraq to pass the budget - rock we now need a new topic. Also is any of your LOPSTER buddies coming back onto here under new names. If they are make sure they give a good sob story like their dog made them buy dinar

GO RV!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hmmm . They are still working on it . Maybe another month?

[dontlop]

I wonder if this has anything to do with it >>>>

Magda Tamimi: the real budget deficit 50 trillion dinars and Kurds objected to the reduction in the price of oil

Saturday, 31 / January 2015 16:10

http://iraqidinarchat.net/?p=33090

Don't tell any one

[rockfl9]

Shhh Could they be broke? Where's the RV?

Who whoe.

Aza

[dontlop]

The president says he never recieved the budget

Parliment says they sent it to him on feb 2

So it disappeared

[rockfl9]

Just like socks in the dryer...

I know i put 2 in there???

WTF!

[dontlop]

With 90% of Iraqs income coming from oil , and the price of oil moving around so much , how would that effect the iraqi dinar if they floated their currency on open market ?

And if the value of the dinar dropped drastically in an oil war , how woukd that be good for an iraqi budget if all the sudden their currency lost half its buying power ?

Maybe that's why all those oil country's in the Middle East peg their currency

[rockfl9]

Some non-oil countries peg to the dollar.

Happens to be the most stable thing to peg to.

Seems that they are counting on the US to always be there with more dollars when they need them.

The few countries that un-peged  did not fare well.

[dontlop]

They are moving to depeg from the dollar and re- peg to a basket of currency most likely they will follow libya and depeg from the dollar and re-peg to imf sdr

Now they are just concerned with getting the dinar back to normal as close to 2% of the official rate as they can

I think they are at 6% now

[rockfl9]

IF they depeg the dinar . it will drift to the market rate , 1234 now ,. the MOF will get more Dinar in the auction BUT Dinarians loose!

It's going the wrong way.

The 2015 budget may be debated for a long time.
It looks now that 2014 projects will be carried over or CANCELLED! Some were not started.
That will not set well with the MPs expecting them.
The plans to increase salaries for example.
Still not sure how much money is left in the treasury.
They can't budget for monies they don't have.
May have to lay off people (unemployment)
Reduce salaries (lower GDP)
Tighten your belts!

Said this 2 months ago.

[dontlop]

Yes if they remove the peg and let it float , the market rate assumes the official rate status

The govt doesn't rv a floating rate , the market takes care of the rate , and we see where the market rate is

It is what it is

So if they remove the peg right now the new exchange rate woukd be officially 1235

With 40 trillion dinar it could end up even lower

This is becoming more and more rediculous

Just rv it

Push the button

Move the decimal place over three notches and show the auditors

They will say

How do you come up with this and the Iraqis will just say , look , see , we just took that decimal place over three digits , now we are worth trillions of dollars

Edited February 9, 2015 by dontlop

[rockfl9]

DL ??? I don't understand your thinking???

Its pegged. 

Cant change the rate.

[dontlop]

What's to understand

Just push the button and out comes new accounting records

Just rv this crap and get it over with I'm tired of waiting

[dontlop]

They put together a policy that insures the dinar would lose value and then the next week they say oh that made the dinar lose value

So I guess they will stop the cap on auctions

This abadi guy is preventing a rv

Barzani and the kurds woukd of rvd long time ago

[rockfl9]

If they let it float , they can print as many dinar as they want to! print another 25 T dinar and balance the budget in a few days.

All would be OK.

No Problem.

[dontlop]

I think they should just move the decimal place over three places to the left and call it deleting zeros

Like if I owe you $1000.00 I move the decimal place over three places , then I only owe you 1 dollar

You be good with that huh

I print up 1000 debt notes and tell the world I'll honor all my currency

Then move the decimal place to the left and say I'm only honoring 1 debt note

Then I'll tell everyone how rich I am

I'll tell em that's what deleting zeros means

Why doesn't the cbi delete the three zeros off the reserves two

They got $ 67,000,000,000.00 right now

Move it to the left three spaces

Then they got $67,000,000.00

If your gonna be stupid , might as well go all the way

[dontlop]

Ah ha ha ha ha ha ha ha

[OregonMan]

Ah ha ha ha ha ha ha ha

 

Are you now in the Tank?  

[Bumper64]

Are you now in the Tank?  

 

No, he had some words with one of the other mods and got himself banned!! 

[staunch]

dang, it's gonna be quiet down here now