[millionday] Member of the Committee called for the economy and investment Attorney Abdulabas Xiaa, the need to diversify the state's resources to avoid the impact of slowdown in the growth of the global economy on the Iraqi economy based almost entirely on oil.
Said Xiaa in a press statement that the decline in global economic growth will directly affect world oil prices, and thus harm the national economy being supported by more than (93 percent) on oil.
[millionday] He added that the development plan announced by the Ministry of Planning aims to reduce dependence on oil revenues in the construction of the federal budget,
but achieving results requires more time, because this subject needs to activate a set of economic laws Kaltarafh customs and protect the national product and other important laws .
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He explained that the diversification of the state's resources come through the promotion of local industry and the production of goods in the Iraqi market substitute for foreign imports and this will reduce the drain of hard currency which go to foreign imports, and thus will support the exchange rate of the Iraqi dinar.
[millionday] so this is an explanation that is about how it will grow in support for the rate and stability of the dinar as things are brought back to market and to export ect
[millionday] the dependence is on oil now but will change as they raise their other resources as a result of the plan for the budget and the industry
[millionday] brb with more
millionday] here are the scenarios they are presenting for the economy
[millionday] Drawing an economic researcher a number of possible scenarios for the Iraqi economy at the current stage, stressing at the same time that the economy and politics two parallel lines do not intersect as they to Ailtkien.
He said a researcher at the Iraqi Center for Economic Reform harmful and presence of four possible scenarios of varying grades and have an impact in shaping the future of the Iraqi economy under the current circumstances is going through.
The told (morning): that these scenarios associated with improvement in the case of the rule of law and economic reforms laws
[millionday] He added that the first scenario includes the optimistic case when you synchronize repair procedures and laws with the improved economic status of the rule of law, noting that the second scenario includes the case of missed opportunities in the event of improving the rule of law and delayed economic reform measures.
He noted that the third scenario includes the case of disappointment in the event of the implementation of reforms and economic measures accompanied not improve the rule of law, stressing that the fourth scenario is a desperate situation for the Iraqi economy if it is not implemented reforms and the lack of improvement in the rule of law in the country.
[millionday] note -- i couldn't have said it better -- reform is definitely needed -- smile
[millionday] He that raising the human development indicators and reform economic laws entering into the first scenario, a situation optimistic if the economy's dependence on oil represents 35 percent and 25 percent of the agricultural sector and 15 percent for the industrial sector and 25 percent other to other sectors such as tourism and others.
He explained that the reform of laws and delayed raising development indicators entering in the second case, which represent missed opportunities through the economy's dependence on oil by 55 percent and other sectors increased by 32 percent and Industry 5 percent and agriculture 8 percent.,
[millionday] amen -- smile
[millionday] Pointing out that the case of disappointment comes when the human development indicators high simultaneous and delayed reform of the laws of economics and the economy's dependence on oil by 45 percent and other sectors 31 percent and agriculture 14 percent, industry 10 percent, and hinted that the fourth scenario,
which comes from the delayed reform of economic laws and delayed raising the human development indicators consists of the adoption of the Iraqi economy on oil by 75 percent and Other sectors 17 percent and 5 percent agriculture industry 3 percent.
And called to the need to manage the economic file by a competent board and work on the application of vocabulary governance, especially the efficiency and the rule of law.
[millionday] so as we see not moving forward with the economic reform is a negative all around -- it will not be the best move in any way shape or form
[millionday] and that is exactly what we think
[millionday] now the growth they are discussing here is coming from development of each of these resources and which would pay off more to put more of their money into --- so the plan of support is what they are discussing
[millionday] very interesting to say the least
ROBINREDHED] i agree million
[millionday] the most positive is that they must apply the economic reform in order to support any scenario love it sounds like we wrote it my friend smile
[ROBINREDHED] well we truly need economic reform and if they are getting closer, this is good
millionday] absolutely -- i agree -- very close is so much better then the years before --- this is great – finally this is some info that was sent to me i find it very informative and especially because iraq is deciding the advantages of both for their banking system
millionday] A new set of regulations that most people have never even heard of that was developed by an immensely powerful central banking organization that most people do not even know exists is going to have a dramatic effect on the global financial system over the next several years.
[millionday] The new set of regulations is known as "Basel III", and it was developed by the Bank for International Settlements.
The Bank for International Settlements has been called "the central bank for central banks", and it is headquartered in Basel, Switzerland. 58 major central banks (including the Federal Reserve) belong to the Bank for International Settlements,
and the decisions made in Basel often have more of an impact on the direction of the global economy than anything the president of the United States or the U.S. Congress are doing.
All you have to do is to look back at the last financial crisis to see an example of this. Basel II and Basel 2.5 played a major role in precipitating the subprime mortgage meltdown. Now a new set of regulations known as "Basel III" are being rolled out.
The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019. These new regulations dramatically increase capital requirements and significantly restrict the use of leverage.
Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit.
millionday] The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand. By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy.
Not that the current global financial system is sustainable by any means. Anyone with half a brain can see that the global financial system is a pyramid scheme that is destined to collapse.
But Basel III may cause it to collapse faster than it might otherwise have.
So precisely what is Basel III? The following is a definition from the official website of the Bank for International Settlements
[millionday] "Basel III" is a comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
These measures aim to: improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source improve risk management and governance strengthen banks' transparency and disclosures.
All of that looks good at first glance. But when you start looking into the details you start realizing what it is going to mean for the global financial system. Banks are going to be required to have higher reserve ratios and use less leverage.
[millionday] Banks are going to have to be more careful with their money, which is a good thing, but it is also going to mean that credit will not flow as freely.
Unfortunately, the only way for a debt bubble to survive is if it keeps expanding. Anything that restricts the flow of easy money threatens to bring a debt bubble to an end. These new regulations are going to be phased in between 2013 and 2019.
[millionday] So why is bringing the debt bubble to an end a bad thing? Well, because it will cause the false prosperity that we have been enjoying to disappear, and that will be an exceedingly painful adjustment. Sadly, most people have no idea what is happening.
Most people have never even heard of "Basel III" or "the Bank for International Settlements". Most people just assume that the people they voted into office know what they are doing and have everything under control. Unfortunately, that is not the case at all.
The truth is that an unelected, unaccountable body of central bankers is making decisions which deeply affect us all, and there is not much that we can do about it
[millionday] note -- obviously we are not in that dark corner with the rest of these people they are refering to the reason I said that is because of our discussion last night money loses value and everything else gains value so -- hmmm
[ROBINREDHED] well that is interesting
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