Saleh: The coming days will witness a weakening of the purchasing power of the individual and exposing the general economy to recession

[yota691]

Saleh: The coming days will witness a weakening of the purchasing power of the individual and exposing the general economy to recession

Last updated: September 26, 2020 - 11:42 AM

Baghdad / Iraq News Network - The economic expert, Mazhar Muhammad Salih, said today that the 2020 budget law is useless, given that it suffers from a large financial deficit in its folds, while the best solution to get out of the financial deficit crisis that the country suffers from is to go Saleh, who worked as a financial advisor with more than one prime minister, said in a press interview today that “the cabinet’s withdrawal of the budget from Parliament is consistent with the previous public finance vision, which confirms the futility of relying on an annual budget. For the year 2020, because it is paralyzed in its formulas and components. ”He added,“ The 2020 budget depends on a deficit of more than 60% of its expenditures and there is no ability to finance except through borrowing that meets strong parliamentary opposition as well as weak lending financing sources except at burdensome and high costs. For the national economy ”.And Saleh continued, "The idea of going to adopt the monthly budget is the available solution in the short term instead of relying on a general and formal budget law that cannot be planned." He stated, "There is a restriction on the general budget activity, represented by the operating budget costs of more than 7 trillion dinars per month, while the available oil and non-oil revenues do not exceed 4 trillion dinars per month, and this means that the 2020 budget will be limited to the clause of paying salaries. Wages and salaries of retirees and social care until the end of the current year, while the state’s investment and operational expenses will inevitably be stopped. The economic figure pointed out that "the state will face great difficulties in the next two months unless it maximizes its resources through exceptional policies or improves oil revenues."Saleh explained, “The continued government spending in this way will have a negative impact on the general economic activity of the country, as the surveys confirm that the gross domestic product is losing about 30% of its components, which helped to spread unemployment and at the same time led to a decrease in the per capita share and its annual share of the product. Local ”. He added that "the coming days may witness a weakening of the purchasing power of the individual, which will lead to the exposure of the general economy to recession." The government had sent the 2020 budget bill to Parliament, before withdrawing it to make amendments to it, amid talk of a large deficit in it.

[WheresmyRV?]

Does this mean the dinar is going to be worth even less than it is now?

[3n1]

 

 

25 minutes ago, yota691 said:

and this means that the 2020 budget will be limited to the clause of paying salaries. Wages and salaries of retirees and social care until the end of the current year

 

.....unless they get that 50 billion back from maliki and the stolen money from the other corruptors in iraq im sure most of it has gone to fund Iran and various terror groups in the region .... thanks yota , heres hoping 

 

18 minutes ago, WheresmyRV? said:

Does this mean the dinar is going to be worth even less than it is now?

 

.... from the article if true its saying they're broke and just dog paddling to stay afloat

  

 

 

[sgtsanders]

Smoke and mirrors???

[Engine1]

6 minutes ago, 3n1 said:

 

 

 

.....unless they get that 50 billion back from maliki and the stolen money from the other corruptors in iraq im sure most of it has gone to fund Iran and various terror groups in the region .... thanks yota , heres hoping 

 

 

.... from the article if true its saying they're broke and just dog paddling to stay afloat

  

 

 

Better watch it.  The last time I mentioned that Iraq was broke, someone came out and,,,, well I guess he wasn't feeling all warm and fuzzy inside.  

[3n1]

1 minute ago, Engine1 said:

Better watch it.  The last time I mentioned that Iraq was broke, someone came out and,,,, well I guess he wasn't feeling all warm and fuzzy inside.  

 

Engine1 , lol the article implied it , that was just my conjecture after speed reading it , Shabibi stated that " as you know Iraq is rich eventually " , and in a roundabout way they are floating on a sea of oil and valuable minerals 

 

Shabibi at jackson hole , wy. ,,,, 3:45 mark in video .... have the best day possible engine1 ,cheers 

 

https://video.foxbusiness.com/v/4321880/#sp=show-clips

[rvmydinar]

Is this article for real or just another BS again to distract and scare dinar investors away? The more BS articles i read, the closest goi and cbi will announce the rv suddenly and quietly. The more bad news i read, the more time for goi and cbi  to discuss how to announce the rv behind closed door quietly and secretly. Just wait and see. People who can survive patiently through a hard time is a winner who can win a game in the end. Go rv.

[Laid Back]

 "the state will face great difficulties in the next two months unless it maximizes its resources through exceptional policies or improves oil revenues."
 

Go RV 

Go maximizes resources

Go purchasing power

[alreis]

Create a distraction with the right hand and implement the plan with the left hand

[KDuesing]

2 hours ago, WheresmyRV? said:

Does this mean the dinar is going to be worth even less than it is now?

Yes, and you should sell me your dinar at half price now. LMAO

[rvmydinar]

1 hour ago, Engine1 said:

Better watch it.  The last time I mentioned that Iraq was broke, someone came out and,,,, well I guess he wasn't feeling all warm and fuzzy inside.  

Is iraq flat broke? BS. If iraq keep borrowing money, does it mean iraq is broke? BS. If there is a lot of corruptions in iraq, does it mean iraq is broke? BS.  Has iraq been the second top oil producers in the middle east? Of course. Can every article be 100% accurate and trustable? No. Has every article written directly by the goi and cbi? Absolutely not. Can the iraqi editors make up the articles because they got bribed by someone? Absolutely Yes no question about it because bribery is a way of getting rich quickly among government officials in iraq. Does iraqi editors try to distract the readers on purpose by making up articles? Yes. Go rv.

[yota691]

7 hours ago, rvmydinar said:

Is this article for real or just another BS again 

Well I wouldn't say it BS, As a constant poster  I would say the above is real but it not telling the whole story, it is a snip it or part of the subject. Sometime it take 2 or 3 maybe 4 articles combined to get the actual message across. Then you have translation issue but in today world a couple words might be different but the subject remain the same..Purchasing Power is for this article, which is what everyone wants to hear...any how waiting for the next article let me get it...

[yota691]

Quote

Here another person talking about the same subject Purchasing Power and is he referring to New stuff...

 

 

Deputy reveals the truth about the trend to print more Iraqi currency papers to cover expenses

 

Economie 2020/09/27 21:41 ht 

Baghdad A member of the Parliamentary Finance Committee, Representative Jamal Cougar, denied, on Sunday, September 27, 2020, that there is a government intention to print more Iraqi currency to cover expenses, while he warned of the risks of this step, without providing the difficult currency. In an interview, Cougar said, "Any government approach to printing more cash must be covered by hard currency, gold, or domestic product, otherwise this will dilute the currency, after losing part of its value." He added that "there is no government approach so far in this direction, and the Finance Committee does not support such a decision, because of the economic risks it has in different directions." He added that "his committee has an important economic alternative in order to provide financial liquidity to the government, to pay its expenses without resorting to a new currency printing, which is the resettlement of salaries for all its employees in the ministries and the adoption of accelerated steps in this direction." And Cougar indicated that "Emiratisation has many positive aspects, including securing financial liquidity for the government to cover its expenses." The economic expert, Rasim Al-Akidi, spoke on Monday (May 25, 2020) about the 3 most important controls that must be taken into account when printing the national currency, in order to prevent high prices in the country and harm the poor. Al-Aqidi said, in an interview with (Baghdad Today), "Any printing process for the Iraqi local currency must take into account 3 important factors, which are the monetary mass (the amount of money that is printed) the size of the transaction (that is, after you print the currency, how much will it be in the market And shops, houses, and banks) and the volume of circulation (that is, how many activities that deal in the national currency and how many activities that deal in hard currencies, including the dollar). Al-Akidi added, "Any printing process for the national currency must be printed according to the country's economic cycle, that is, the sum of all commercial activities and practices that occur, and on the basis of which the volume of monetary dealings is." The economic expert pointed out, "When Iraq printed 40 trillion dinars and then reached 56 trillion in recent years, that was according to the country's economic cycle," indicating that "any increase in printing is more than the need of the economic cycle will create a mass of cash more than the market needs." What leads to the creation of inflation that pushes up prices and affects the purchasing power of many segments, especially the simple and low-income people. "

 

[DWS112]

4 minutes ago, yota691 said:

Purchasing Power is for this article, which is what everyone wants to hear

What if...they deleted the 3 zeros today?

1190 would become 1.190 dinars per dollar. (round off to 1.200 dinars per dollar).

The result would be a drop in the exchange rate of 10 dinars. This could be the weakening of the purchasing power he is talking about.

 

Just a thought - DWS112

[dinarbeleiver]

In an article about a month ago it stated the Dinar would devalue to 1500 and then 1800 before they delete the zeros. Not sure if that’s the plan or not

[yota691]

6 minutes ago, DWS112 said:

The result would be a drop in the exchange rate of 10 dinars. This could be the weakening of the purchasing power he is talking about.

From the deputy article should answer the Purchasing power part, His answer is what they all say just like the 3 zero article you just posted and the outcome. 

Quote

"When Iraq printed 40 trillion dinars and then reached 56 trillion in recent years, that was according to the country's economic cycle," indicating that "any increase in printing is more than the need of the economic cycle will create a mass of cash more than the market needs." What leads to the creation of inflation that pushes up prices and affects the purchasing power of many segments, especially the simple and low-income people. "

 

11 minutes ago, DWS112 said:

The result would be a drop in the exchange rate of 10 dinars.

Don't forget that the CBI gets a cut on dinars on sales as well. IMO Hope that made sense..DWS

[DWS112]

9 minutes ago, yota691 said:

Hope that made sense

Yes Yota. Thank you for your input.

[Half Crazy Runner]

3 hours ago, DWS112 said:

What if...they deleted the 3 zeros today?

1190 would become 1.190 dinars per dollar. (round off to 1.200 dinars per dollar).

The result would be a drop in the exchange rate of 10 dinars. This could be the weakening of the purchasing power he is talking about.

 

Just a thought - DWS112

Interesting! That 1.2 dinars to $1 is the rate that was showing on the CBI website a few years back (on that hidden test page). That would make the dinar worth .83¢ and I’d take that in a heartbeat!!  Thanks DWS112!

 

[blueskyline]

truth mixed with Propagada.........as shabibi once said ???

[rvmydinar]

13 hours ago, alreis said:

Create a distraction with the right hand and implement the plan with the left hand

you got that right.

[rvmydinar]

4 hours ago, Half Crazy Runner said:

Interesting! That 1.2 dinars to $1 is the rate that was showing on the CBI website a few years back (on that hidden test page). That would make the dinar worth .83¢ and I’d take that in a heartbeat!!  Thanks DWS112!

 

below $1 or above $1 don't matter,  I will run to the bank and never look back. in country rv or out country rv actually don't matter, but if I have to choose between in and out, I would prefer choose out country rv much convenient.

[rvmydinar]

7 hours ago, yota691 said:

Well I wouldn't say it BS, As a constant poster  I would say the above is real but it not telling the whole story, it is a snip it or part of the subject. Sometime it take 2 or 3 maybe 4 articles combined to get the actual message across. Then you have translation issue but in today world a couple words might be different but the subject remain the same..Purchasing Power is for this article, which is what everyone wants to hear...any how waiting for the next article let me get it...

I respect your own opinion.Therefore, I don't want to argue about it anymore.

[rvmydinar]

7 hours ago, DWS112 said:

What if...they deleted the 3 zeros today?

1190 would become 1.190 dinars per dollar. (round off to 1.200 dinars per dollar).

The result would be a drop in the exchange rate of 10 dinars. This could be the weakening of the purchasing power he is talking about.

 

Just a thought - DWS112

actually, the weakening  of the purchasing power is only temporarily because iraq has never been actually flat broke. Has Iraq ever stopped producing oil specially since covid-19 pandemic? never. when will goi and cbi actually annouce the rv? suddenly, quietly,secretly behind closed door. why are there a lot of corruptions in iraq?  because it is the way of doing business and getting rich quickly among iraqi government officials. will the corruptions stop the rv? never cause they are irrelevant. go rv.

[rvmydinar]

1 hour ago, rvmydinar said:

below $1 or above $1 don't matter,  I will run to the bank and never look back. in country rv or out country rv actually don't matter, but if I have to choose between in and out, I would prefer choose out country rv much convenient as long as the exchange rate will remain the same between in country rv and out country rv. If I say if the exchange rate for in country rv is higher than out country rv, then I have no choice I have to take the highest rate therefore I will run to the bank in iraq. for this moment, I just hope the exchange rate between in country rv and out country rv will remain the same. go rv.

 

[screwball]

Not sure but I was always of the  belief and told that countries go through a period of deflation until prices are adjusted as a result of the new rate! Could be wrong but believe this is what it is saying