The government is serious in overcoming the obstacles to investment and Iraq in a recession

[yota691]

Economic Adviser to the servants, the government is serious in overcoming the obstacles to investment and Iraq in a recession

 

The appearance of Mohammed Saleh

 

 

 

 

 

Author: Editor: br reporter: na

Number of Views: 90

 

15/02/2015 13:59

 

Tomorrow Press / Baghdad confirmed the economy adviser to Prime Minister appearance of Mohammed Saleh, Sunday, that the economic laws obstacle stand in the investment, noting that the government is serious in modified to provide an incubator of capital, while noting that Iraq today is going through Abeche from the recession.

Saleh said for "tomorrow Press" that "economic laws obstacle generally outside investor, is serious and the government to go to amend these laws commensurate with the stage and removed all the obstacles of the laws, regulations or instructions," referring to "the existence of the committee working on the activation of the Iraqi economy and the elimination all the bureaucratic procedures. "

He added that "Iraq faces a security challenge, but this has solutions and its sides that run it, but that does not mean the economy stops," noting that "capital coward but today we worked to provide a good incubator for this money to stimulate some business."

"The budget is not uncommon if exploited properly spent, and Iraq did not reach the stage of contraction, but need to raise economic efficiency," pointing out that "the current situation of the Iraqi economy is going through Abeche from the recession."

 

 

[Rabbi]

"The activation of the Iraqi economy" sounds to me like this is going to be some kind of "flip-the-switch" scenario.  Let's face it, the existing value in the private sector of Iraqi economy is NOT reflected in the value of the IQD.  Despite of the growth in GDP since 2010, the value of the dinar has remained basically unchanged (only moving from 1170 to 1166).  

 

Let me do some math:  40 trillion dinars x $1/1166 dinars =  $34.305 BILLION.  That's it, folks, the value of the entire Iraqi money supply is a whopping $34+ billion dollars.  Does that make any sense? 

 

And I'm assuming that all of those 40 trillion dinar are all in circulation around the world.  Certainly, a large percentage of those have actually been re-acquired through the auctions.  If, say, 50% of those are no longer "outstanding" (like shares of stock in a public company) then that $34 billion amount is cut in half to $17 billion...for the entire country of Iraq!!!  Really? 

 

To me, it's obvious that when they "activate" themselves to become a part of the world economy, there has to be some kind of instantaneous adjustment in the exchange rate.