2015 Budget - Going to be difficult

[rockfl9]

Looks like they will resume the recess and come back on 7 Jan. logical they would take the numbers to their bloc advisers.

[dontlop]

Well it won't be like last year unless the kurds do like they did last year as this article states what happened last year

The first three paragraphs explain http://www.al-monitor.com/pulse/originals/2014/02/iraq-budget-problems-oil-dependence-erbil-baghdad.html#%23ixzz3Mxz1qO7X

[dontlop]

Keep your eye on the kurds

[Texstorm]

I just posted on this email topic in another section anyways I thought that I would sum it up again. I never have had a budget in my life. May be my budget has been my paycheck. If I wanted something bad enough, I would wrangle a way and make it happen. Even when I was knocking it down faster than I was spending I didn't live on a budget. Now days it's still the same, if I can't figure out how to pay for it, I don't buy it. I think everyone is waiting on this budget like they are going to have a rate attached to it. Even here in the good ole U.S. of A. our government blows the hell out of the budget every year. My eyes are on the CBI and the HCL, if y'all want to worry about an imaginary budget go ahead because I never have. Thanks and Happy New Years !

[rockfl9]

Tex : No budget ? My guess is that you have a plastic budget system , typical today for most under 50 years old!  Charge it , pay it off. Charge some more.  

The HCL (whatever that is) has little to do with the value of the dinar , it is oil revenue and a trade surplus . Both in decline  today.

As far as the CBI , yes  It's main purpose to keep the government funded. A dark thought on my mind is that it may not be able to support the 1166 rate. 

[Texstorm]

Wrong again Rock ! I am 100 % solvent. A persons budget should be what they make not what they can spend. What you don't have control over is the unforeseen such as hospital bills, mechanical breakdowns and death.

[dontlop]

People remember the reason the cbi gave for not deleting the zeros in 2013

They said they couldn't do it at that time because the budget in effect was already made in current dinar

So since some people think they will see a rv simutainously with the deletion of the zeros they wait for the budget to come out to see if they are deleting the three zeros

Some people believe they can't have one without the other

They think in order to rv say to 3 dollars they first must delete the zeros

They think they will only get a 200% rv but that's what they are waiting for instead of selling out right now for a loss for about 800 dollars the new rate may bring them 3000 dollars

So they wait to see the new budget hoping the budget reads like 100 billion dinar instead of 1,166,000,000,000 one point one sixty six trillion dinar

They want to see the billion dinar budget with a new rate instead of the trillion dinar rate with the old exchange

This

Earlier, the ministry of finance ruled out the idea of cancelling the zeros in 2013 because the federal budget was based on the current currency

From this article http://www.iraqinews.com/business-iraqi-dinar/iraqi-dinar-3-zeros-canceled-by-central-bank-of-iraq-cbi/

Then others think they are going to become millionares when the budget comes out too

So reality doesn't come into play in some cases

But it is what it is

[rockfl9]

Wrong again Rock ! I am 100 % solvent. A persons budget should be what they make not what they can spend. What you don't have control over is the unforeseen such as hospital bills, mechanical breakdowns and death.

Tex:: That's great. If you are 50 or younger , you are better off than 90% of your cohorts! Best feeling is not to owe anyone.

The wallet budget. PAY CASH.

[dontlop]

I read iraq wants to borrow 5 billion dollars off the imf

Yet we also read that maliki and barzani between them hold 100 billion dollars

And the top 15 iraqi polititions hold an astounding 331 billion dollars in their personal accounts

Why don't they loan the money to iraq ?

When the usa had problems people like Rockefeller and Jp Morgan loaned our govt money

331 billion dollars in 15 polititions hands the rest of the 300 polititions most likely can match the first 331 billion

So what to do about the iraqi govt and their personal assets

Should they be audited and have them show where they earned that much money?

And if they can't show it , should they take the money off them ?

They should be legally liable for those assets

Like Ive said before there's a lot more money in iraq than the reserves

The 331 billion dollars in these polititions hands equates to around 350 trillion dinar

Yet the m2 money supply only accounts for 80 trillion dinar

[rockfl9]

The budget posted by Thug is the draft budget that was distributed to the MPs to review.  Most likely they will come bank Jan 7th with changes and additions. They will discuss and produce a second release. Think 2 or more weeks to the second reading.

 

The missing article could be a mistake OR There could be something the COM could not agree on took it out and rushed the release to allow the MPs to go home!.The reason it is dated Jan 1,,2015 IS that it must be retroactive whenever it is finished.

 

They PROPOSE covering the deficit by borrowing from the IMF/WB ? NOT a done deal.

 

AND issuing more dinar based T-Bills!. Debt that will roll over into 2016+ years. 

[dontlop]

You don't understand

The Kurds and the Sunnis are not doing so well especially the kurds being cut out of the budget last year

They are getting some relief to pay their military

But these guys are ready to pass anything right now to get some money

They don't want to boycott and stall like last year they learned what happens if they do

They are going to pass this as soon as it hits the deck unless the shittes disagree on something and decide to drag their feet this time

Wow now that would be a turn of events

Ah ha ha ha ha ha ha ha

The money from the imf is not to cover the budget deficit

The draft bill shows a 25 trillion dinar deficit in this budget

[rockfl9]

DL:: Why would they borrow money if not to cover the deficit??????

 

It has to come from somewhere!

 

Cant close a budget with unfunded accounts.

 

I have a suspicion that the missing article concerned salary and pension cuts !!!  It would be a subject that they would not want the populace to know about during the holiday break.. Keep it under the table. until the next meeting. 

Edited December 27, 2014 by rockfl9

[dontlop]

A core responsibility of the IMF is to provide loans to member countries experiencing actual or potential balance of payments problems. This financial assistance enables countries to rebuild their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong economic growth, while undertaking policies to correct underlying problems. Unlike development banks, the IMF does not lend for specific projects.

I don't think the imf is there so countrys can run budget deficits

[rockfl9]

A core responsibility of the IMF is to provide loans to member countries experiencing actual or potential balance of payments problems. This financial assistance enables countries to rebuild their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong economic growth, while undertaking policies to correct underlying problems. Unlike development banks, the IMF does not lend for specific projects.

I don't think the imf is there so countrys can run budget deficits

In a way you are correct.  The World Bank makes the money available, the IMF administers it. 

 

After the war, the CPA arranged to get the loan to begin rebuilding the country. 

[dontlop]

The money comes out of the fund

That's why it's called the international monetary "fund"

The fund is funded by the quotas

The imf deals in currencys and monitary policy

The money is there incase it's needed by any of the members for temporary relief but it comes with stipulations that they reorganizeand restructure to prevent the problems that caused the need for their loans

It's like an insurance policy

They will monitor who ever is borrowing to make sure they are fixing the problems and advise where necessary

If iraq wants to borrow from the world bank they don't go to the IMF they go to the world bank, two different places

What is the Difference Between the World Bank and the IMF?

People sometimes confuse the World Bank with the International Monetary Fund (IMF), which was also set up at the Bretton Woods conference in 1944. Although the IMF’s functions complement those of the World Bank, it is a totally separate organization. While the World Bank provides support to developing countries, the IMF aims to stabilize the international monetary system and monitors the world’s currencies. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/EXTEAPREGTOPSOCDEV/0,,contentMDK:20254898~pagePK:34004173~piPK:34003707~theSitePK:502940,00.html

Edited December 27, 2014 by dontlop

[rockfl9]

Just to make things clear.

ONLY the DRAFT budget is in the hands of the MPs to READ.

There was a announcement that finer details

 where available to some members.

 

Come the 7th there should be a rash of amendments or objections., thus there cant be a second reading ..

They could decide to rewrite OR remove contraversial items to a new bill..

The $2 or 5 thing pits a bunch of provinces against Bagdad.

[Deborah Layne]

Thanks rock.

Duh, about it being retroactive to the 1st. IDK why that never even crossed my mind! Wishful thinking I guess.

And I just wish they rest of the world would agree not to loan them any more money.

D

[dontlop]

Do ya think obama will extend 13033 again in May ?

Geez this thing is taking forever

I think we got the budget

Then 13033

Then june 31

Then after Ramadan

Then we head back to the first of the year again

Am I missing something ?

End of 2015 the debt was supposed to be completely paid off with kuwait but I hear the payments are on hold

After that does iraq get completely out of chapter 7

When is the WTO going to allow iraq in as a full member ?

Did they even get a soveriegn credit rating yet ?

Maybe they won't need one and everyone will just accept the dinar without even agreeing to imf article 8

How's that new grand port of faw doing?

Their going to need it with all the importing about to sky rocket into iraq

[Texstorm]

DL does all of this make you crazy or does it just give you more time to play.....as for me, I think it's looking like a long cold winter and I can't wait for spring.

[dontlop]

I think maliki is trying to take over the world

Him and his big red button

[Texstorm]

That's comical ! At least I got a smile this morning.

[rockfl9]

Tex::; DL has a rare form of Obsessive/compulsive disease....When logged on to DV he must post something. But can only do a sentence at a time .. Dont try to understand what they mean . That WILL drive YOU crazy.

His family knows he should see a Dr. , But  he is too much fun at parties  

[Texstorm]

Hey Rock what do you make of the confirmed new IQD denoms that are out, so much for the LOP theory. 

[rockfl9]

Tex: I think the CBI will continue a status quo position. The economy will not grow too fast this year so why rock the boat . No RV and no LOP. Either way they will be exposed to a big printing bill. The CBI depends on the commissions from dollar sales that will be lower thru 2015.  Got more important things to do.  

[Texstorm]

I don't know Rock, I don't see how the CBI would be happy with the lower commissions. I think they are just greedy enough that they might try a float if they are unable to pull a massive RV. Obviously the CBI is the most important and stable thing in Iraq that's why I don't see them going backwards.