Summarization of Article below:
The article I found below is just a summarization to the article wrote by Reuters. If you read my previous article, you understand that the CBI is hedging against the debt that is mounting in Iraq and to support the banking system. Please take note that the security issue remains a big issue over in Iraq, which is a key element to why Iraq has to continue to fork out large amounts of money to pay for deaths, destruction of property, and loss of tax revenue from local businesses.
The Treasury Bills are being used to create additional revenue to help stabilize the economy (the finances for Iraq) so inflation stays in check. Also, and please read carefully the next few sentences….
The IMF is just a support mechanism for those countries in need economically. The main reason the CBI and Iraq are not choosing to take the IMF loan, is because the IMF is used for countries in need economically (financially in turmoil), and Iraq (CBI) don’t want to view in this manner- if they are to show the international exchange market that they can managed their government, country, and finances on their own.
Ponder this:
Chew on this for a while…. Would you invest your money into a company that has financial issues, or better yet, relies on others to manage their company? Perception is a big part of investing, whether it’s a stock, commodity, or currency. Fear also plays a big part of that. Investors want to see that Iraq is stabile economically, fiscally; a quality government, and a country that safe and business owners fell confident that their business will not be harmed by terrorism or corruption.
That being said, have you notice in all the recent IMF, World Bank, UN, and many news articles, that Iraq has done an about face in regards to many of these issues. Believe this, CBI has had a game plan for a very long time with a complete “things to accomplish in order to RV list”.
The Rothschild’s who own the CBI is rich for a reason. They basically purchased them back in 2003, through buying up all the government securities (bonds and t-bills) The Rothschild family and the Bilderberg Group (the other richest family in the world) own all the world banks, central banks, and even our U.S. federal reserve. I know it’s hard to believe for some of you, but it’s true. You can do all the research you like and you will ultimately find that these banks are ran by the richest people in the world, not the governments.
There is a reason for this. What do you think would happen if our U.S. government or any other government for matter was in control of the money in these banks? IMO, they would screw it up as they usually do! I’m going to go into all the biased or political ways they could screw it up, but you know they would. The U.S. government can’t even manage the U.S. Post Office, Medicaid, and Medicare! What makes you think they can be in charge of their own money?! Disturbing, yet frighteningly funny!
So if we know that CBI is owned and ran by the Rothschild family, we know that the UN, is requesting that Iraq RV, IMF and the World Bank give them their blessings to forth and stand on their own two feet, then why hasn’t CBI just come out with the RV!? That my friend is the Trillion dollar question! So can someone please get the Rothschild family or Shabibi on the horn and ask them what’s up?!
Maybe my friends Enorrste and Kaperoni can answer that one. Either way, understand that we are so close, and we know that CBI will RV this currency on the international exchange market (Forex) and we will all be rich! And for all you Rate and Date (Rad) people, take a deep breath, unless you are in the bathroom, and just know that God has a plan and you are lucky enough to be in it.
Gankans
Let go and let God
Iraq has told the IMF that it plans to issue a new round of government debt this year to plug its budget deficit and establish a benchmark interest rate.
“As our financing needs in 2010 will still be substantial, we will step up our efforts to mobilise domestic financing through the treasury bill market,” the central bank governor Sinan al Shabibi, and the finance minister Bayan Jabr, told the IMF as part of its application for a US$3.6 billion (Dh13.22bn) lending programme.
“To that end, we will conduct regular auctions and refrain from cancellations, while allowing interest rates to be determined by the market.”
Iraq’s banking sector remains undeveloped after the second Gulf War and continuing sectarian violence, and there is no market for trading government debt. The central bank unilaterally sets rates on the only debt it does issue, the short-term securities that are bought by banks.
In a bid to develop its financial sector, the government told the IMF it also wants to develop foreign exchange markets, including an interbank foreign exchange market. The government said it would not return to a budget surplus until 2012. Its budget for this year had been based on an average oil price of $62.50 a barrel.
Mr al Shabibi and Mr Jabr warned that unless oil prices increased markedly, the government would be forced to constrain spending this year and next year while the country’s developmental and security needs remained high.
“A fiscal contraction would hurt the economy and undermine our hard-won macroeconomic stability, and could also contribute to a deterioration of the security situation,” they wrote.
They said the country planned to introduce a sales tax as a precursor to a value-added tax (VAT). A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax.
Iraq’s GDP growth slowed to 4 per cent last year from almost 10 per cent the year before, they said. GDP would rise by almost 7 per cent this year and between 7.5 and 8 per cent next year and in 2012, they said.
Supporting economic growth would be an increase in oil output to 3.1 million barrels per day (bpd) in two years, from about 2.5 million bpd now, the officials said in the letter, which was submitted to the IMF on February 8 and released yesterday.
http://www.thenational.ae/apps/pbcs....703119935/1005
Reply With Quote
Originally Posted by Mesha
