(Thank you George for emailing this so Recaps can post it.)
UU6863 – “On the Eve of Something BIG ” by Mnt Goat
I am beginning my news letter today with some excellent news in a couple articles (see below).
Why is this such good news?
In my last news letter I talked about something really BIG was about to happen. So why do you think they had to have this meeting (see below) ? This was a meeting of all of Iraqi regions. The coming days will tell all.
Something BIG is about to happen!
Perhaps its trying to get unity agreement to support all the necessary remaining laws to fully implement these reforms?
THE START OF THE INFLUX OF LEADERS OF POLITICAL BLOCS TO THE PRESIDENTIAL PALACE IN PREPARATION FOR THE START OF THREE PRESIDENCIES
Special - scales News
We arrived at the presidential palace on Thursday, many of the leaders of political blocs to attend a meeting of the three presidencies convened by the President of the Republic in preparation for the start of the meeting.
A reporter / scales News / "Many of the leaders of the political blocs began arriving at the presidential palace in the Green Zone."
The correspondent added that "among the dignitaries who arrived Judiciary Chairman Medhat al-Mahmoud and head of the Islamic Supreme Council Ammar al-Hakim, the head of the renewal of Mahmoud al-Mashhadani and the Secretary General of the Islamic Party, Iyad al-Samarrai, Prime Minister Haider al-Abadi."
He explained that "one of the other characters that have reached the palace head of the competencies and Education Minister Hussein al-Shahristani and MP for the rule of law Abbas al-Bayati and director of the Office of the Prime Minister Mahdi Keywords First Deputy Speaker of Parliament Hamoudi and others,
Next article - More pressure from the citizens to do something about the corruption and those involved.
accounting spoilers defined as those involved in corruptive practices of rigging the books and falsifying contracts for self profiteering.
I quote from the article –
“demanding real reform and tackle the financial crisis and accounting spoilers”.
What do they mean by “real” reform?
For me it means something the people can see and feel. Like more money in their pockets and noticeable difference in this life style and surroundings. They also want the politicians of the prior administration to pay with justice for putting them in the currency economic situation. I also thing financially they want to get paid for their government work as paying their salaries (or lack of) keeps popping up in so many articles. They want change!
DEMONSTRATIONS IN MAYSAN AND BASRA, BABYLON AND CALLS FOR ADDRESSING THE FINANCIAL CRISIS AND REAL REFORMS
Baghdad scales News
Was launched in the provinces of Babil and Maysan and Basra, on Friday, demonstrations demanding real reform and tackle the financial crisis and accounting spoilers.
He said reporters / scales News /, that he "join dozens of activists, citizens and civilian demonstrations in the provinces of Babil and Misan and Basra to demand real reform and tackle the financial crisis and accounting spoilers and other demands included the salaries of the staff is not compromised."
This Dozens of citizens, civilians and militants on Friday in Tahrir Square in central Baghdad, demanding the government to stamp out corruption and lack of prejudice to staff salaries and approval of the death sentences.
Today is Friday January 29th 2016 and just 2 more days remaining in January. Oh – but I though all you intel “gurus” told us the RV was imminent. Really? That was back in December.
Parliament is now in session way over a week already and we have not yet seen much on the needed laws we have been waiting for.
Earlier this week we heard confirmation that the Amnesty law is agreed upon by all and ready for a final vote. Will they vote on it soon?
The 2016 budget has also been passed, ratified and in the gazette. It is now open for spending allocations, but no RV(as I said it is NOT any indicator of the RV anyhow, it was not in 2012, 2013, 2014, 2015 and it is not in 2016).
The problem of a huge deficit for 2016 still lingers as Abadi and parliament try to find ways to fill the gap. Now recent news that they are at least considering under study of increasing the value of the currency as an alternative solution.
So not much has changed on the surface in all these areas.
Update: Currency Reforms
So I bring the article below which I believe is very informative. So let us look at why.
First we know that the CBI has told us in the recent past they intended to review using Taxes and Revaluing the currency (and other recommendations) as options to filling the deficit gap. Now they are telling us the have the situation under control and have decided on a plan. They are going to revel their solution to us in the “next few days”. WOW!
I quote from the article below –
" that the Central Bank of Iraq has taken a number of recommendations to review the work of banks lagging and is committed to literally central instructions for flexible policy to strengthen monetary and financial track and put it tracks true, stressing that the NEXT FEW DAYS will witness the start of this economic recommendations”.
I quote from the article below –
“It is said that the Iraqi Central Bank seeks to achieve economic stability through the promotion of confidence in Iraqi dinars, and work on price stability, and the fight against inflation, and the use of the mechanics of this policy, in cooperation with the fiscal policy in order to reach a state of economic balance”
I don’t want to weave a yarn but I are they about to do something with their currency to make it stronger?
CENTRAL BANK OF IRAQ .. MONETARY AND FISCAL POLICY SUCCESSFUL
Director General of the Department of release and cabinets in the Iraqi Central Bank Shomran Yasiri Ahsan said that the banking system in Iraq is still strong and recuperative but no liquidity problems at some banks and not exceeding Monday.
He pointed Yasiri told the "Journal" that the government banks and the central bank continues to meet the needs of the public of cash, and that community Iraq has full confidence in the central bank to be considered the oldest banking institution in Iraq and has a track record of bank credits and the sale of the national currency in a manner in harmony with the preservation its value against hard currencies.
Yasiri said that the problem faced by the Iraqi Central Bank and other government banks is that some men call politicians talk is irresponsible and without evidence supported and disseminated through social networking sites and circulated by some weak-minded people and media that are trying to prejudice the central action.
He said the central bank has an active and important role in shaping and determining the Iraqi monetary policy, said: "If no public confidence in the central bank to shift the purchase of goods to the dollar and not the national currency, Vdinar for citizen important Shi factor primarily in the purchase, sale and compactness."
Director General of the release circle and cabinets in the Central Bank of Iraq and stressed that the situation now is much better than a year ago, but there are confusing information and statements fallacy monetary and financial reality of the fact that the country is now undergoing a state of war against terrorism, gangs, and that the black gold market continues to fluctuate and has a direct impact on national economy, the fact that Iraq is supported on fiscal revenue from the sale of crude oil, and these and other breed in some individuals opponents the right to work the word is not accurate, hoping to improve the overall situation in all its details globally and locally for the better to strengthen Iraq's economic process.
He revealed Yasiri for "Il Giornale" that the Central Bank of Iraq has taken a number of recommendations to review the work of banks lagging and is committed to literally central instructions for flexible policy to strengthen monetary and financial track and put it tracks true, stressing that the next few days will witness the start of this economic recommendations.
For his part, economic adviser in the Prime Minister Abdul Hussein Al-Anbuge confirmed in an interview with "Il Giornale" The Iraqi citizen has full confidence in government bank transactions and the Central Bank of Iraq to open bank accounts and credit led to the lifting shares of the citizen, it is not inconceivable that many citizens are losing confidence transactions banks government.
Anbuge between that at present appear on the economic and financial arena in Iraq's remarks to highlight the work of the Iraqi Central Bank and the distortion generated realities on the ground and that these statements are inaccurate and did not built on sound economic data, because investors are looking for the right climate for investment, and the environment dominated stability political and security, economic, Economic Stability means to maintain the value of the national currency.
For his part, stressed the economist Mahmoud Mayali for "Journal" today that the central bank policy of the current supportive of the Iraqi dinar and made its price steady against hard currencies, Masahm in attracting investment, whether internal or external, calling for a solution to the political and security problems, to encourage investors to launch their investments inside Iraq.
It is said that the Iraqi Central Bank seeks to achieve economic stability through the promotion of confidence in Iraqi dinars, and work on price stability, and the fight against inflation, and the use of the mechanics of this policy, in cooperation with the fiscal policy in order to reach a state of economic balance
Update: Restructuring the Iraqi Economy
So we are about to see Iraq grow by leaps and bounds. However be patient since they still have to clear ISIS out of Mosul. But what about the rest of Iraq? They are not going to just sit back and idle in the rest of the regions while they plan out the last battle with ISIS in Mosul.
PARLIAMENTARY FINANCE: THE GOVERNMENT EXCEEDED THREE POINTS IN ORDER TO CROSS THE ECONOMIC CRISIS
Economy News / Baghdad
Finance Committee in the House of Representatives said that the government in three stages in order to overcome the insurmountable economic crisis the country is experiencing at the moment.
He said the Commission decision of Hama Rashid Ahmed said in an interview for "Economy News", the country is today living a worsening economic circumstances, so the government must overcome three steps in order to cross this crisis and must find solutions to them you do not stand by and watch them.
And between Rashid that is first on the broad and clear economic strategy and, secondly, the elimination of corruption that plagued the country and wasting people's money, and thirdly the face of declining oil prices, which is that Iraq is not able to control it but possible to find alternatives.
He explained that the rational not to harm the government to attract qualified real empowered Iraqi There is nothing wrong to consult foreign experts, then the economic situation will improve through the development of practical solutions Vq not written pieces of paper and placed insert offices.
The next article is very good. The title is once again deceiving and you must read the entire article to understand what is being said and do not jump to conclusions that Kurdistan is going to break off from Iraq as an independent state. That is not what the author is saying.
What he is saying is the Kurds fully support an independent of Iraq and will do what it takes to help achieve it.
The article is about a political pep speech given by the president of the Kurdistan region to the Kurdistan people. He is describing the economic situation and why they are in such a situation. But the very good news, he tells the people, is they will resolve and come out of the crisis. He also points out that the government held a very important strategy meeting to find solutions.
I quote from the article below-
“It is said that the Ministry of Finance and Economy in the Kurdistan Regional Government, held Wednesday 01/27/2016 conference entitled "Reform and innovation strategy", the aim of finding a solution to the financial crisis, the presence of the President of the Kurdistan Regional Government and his deputy, and a number of ministers, as well as a number of foreign experts.”
So we see they are going to pop out solutions soon and personally I can not see them not pursuing the avenue of currency reform as a major objective to the solutions.
NECHIRVAN BARZANI: THE DAY WILL COME WHEN WE BECOME OWNERS OF AN INDEPENDENT STATE
|(Voice of Iraq) – Roudao Arbil -
Said President of the Kurdistan Regional Government, Nechirvan Barzani, said the financial crisis is the biggest on the Kurdistan Region danger, declaring the application of fiscal austerity policy. He said Nechirvan Barzani, in a speech, at a conference the Ministry of Finance in the province of Kurdistan, said "The war with Daash and the entry of a large number of displaced people to make the region is facing a financial crisis the province of Kurdistan."
He continued, "The drop in oil prices befuddled a lot of our plans and the latest implementation of the government Alr.s.," explaining that "we missed a lot of opportunities that we could not make use of them in time appropriate."Heassured Nechirvan Barzani, that" reforms in the interest of everyone, "pointing to" the adoption of new financial reforms, including the export of gas as the Kurdistan Regional Government has provided ample opportunities for foreign capital."
He called countries of the world to provide financial support to the Kurdistan because the province crisis harder than fighting Daash, adding that he "would one day become the owners of an independent state" and that he will defeat Daash and stepping province of Kurdistan great strides.
He called on the President of the Kurdistan Regional Government, citizens to hold out, adding that the application of fiscal austerity policy include the receipt of employees less than their salaries and savings the remaining part. He noted that "we are in the fronts front of the war on Daash and protect the 1.8 million displaced people in Baghdad does not help us in it," saying that the financial crisis is the biggest on the Kurdistan Region of risk. It is said that the Ministry of Finance and Economy in the Kurdistan Regional Government, held Wednesday 01/27/2016 conference entitled "Reform and innovation strategy", the aim of finding a solution to the financial crisis, the presence of the President of the Kurdistan Regional Government and his deputy, and a number of ministers, as well as a number of foreign experts.
I present these next couple article to you to show you that with any level of real solid stability (held back since June 2014 with the presence of ISIS) this country of Iraq is going to take off economically. Finally we also see a major effort to bring back reliable electricity to the provinces. Funny how years ago they installed all these ATM machines but many of them have never even been turned on as of yet. This effort alone will bring much peace to the people. Remember the government is no longer going to provide FREE electricity. The people and businesses will have to pay for it going forward (as a tax).
You see what they are doing is finding ways of new revenues but attempting to cycle back to the government (in the form of additional creative ways of revenues) some of this money the citizens are about to get from the HCL royalty payments once the price of oil goes back up. This was done by recommendations by the IMF and other financial experts.
Oh- but how can they perform economically without a currency reflecting their true value of the countries assets.? How can they compete on the global stage with a “closed economy”? How can they conduct trade in he future without a currency on the global exchanges?
BEACON MAKES IRAQ ONE OF THE LARGEST INDUSTRIALIZED COUNTRIES
The joy of pumice preparing the ministries of oil and industry agreement with the company Shell oil the world to implement the project «beacon» petrochemical in the province of Basra, which is the largest in the Middle East, as it is expected to achieve annual profits exceed one billion dollars, and provides more than 50 thousand jobs After the work done.
The official spokesman for the Oil Ministry, Assem Jihad, said in an exclusive statement »Sabah», the ministry support for plans to develop the oil industry and increase production, which will reflect positively on gas production, therefore, requires the establishment of projects for the petrochemical order to optimize the investment of oil and gas wealth in Iraq. As a result of the drop in oil prices in global markets and rents the Iraqi economy, Jihad pointed out that the Ministry of Oil permanent quest for the development of this vital sector in the country through investment in the petrochemical industry, which resulted in several agreements, project support, the most important project «beacon».
He explained the official spokesman said « was signed with Shell to establish a petrochemical plant and its accessories dubbed Project (beacon), which is scheduled to be held in the province of Basra », he returned him of important projects that have been agreed in collaboration with the Ministry of Industry and Minerals.
He said the project is in the planning and study by the company and needs to be nearly two years to complete its requirements and prepare for the next stages, and then will have to agree on direct and determine the period of time to implement the project in stages. In addition to project beacon, Jihad detect the presence of memoranda of understanding and other proposals with the companies «France's Total», and »Russia's Lukoil» for the establishment of factories for petrochemicals in the provinces of Basra and Dhi Qar, indicating it from a medium-term projects and need several years to complete it fully. He noted the official spokesman to the petrochemical industry on the development of the gas industry in Iraq, where the country had made considerable progress in gas investment projects through Basra Gas Company, which is to invest the associated gas for oil operations in the three oil fields, in addition to international companies that invest gas fields gas, as Iraq's production has now reached the gas to a million and a thousand standard cubic feet per day.
The present trends amid the efforts of the ministry to maximize fiscal revenues through increased refinery production to compensate for interruptions Baiji refinery, which it meets more than half of Iraq's need of oil derivatives, and add some production units for the development of production and improved, leading to the development of the oil industry in the country, according to Jihad.
INDUSTRY OPENS ASSEMBLE VOLVO TRUCKS IN BABYLON FACTORY 3000 TRUCK CARD ANNUALLY
ong-Presse / Babylon
Was opened by Minister of Industry and Minerals Mohammed Darraji, on Wednesday, assemble Volvo trucks in the automobile manufacturing plant factory, north of Babylon, and a production capacity of 3,000 annually truck, and as he emphasized that the project will provide 20% of the cost, surprised not to buy the state departments of products Ministry.
Said Darraji during the opening of the project and attended the (long-Presse) that "the ministry today achieved through the General Company for the automotive industry partnership strategy by choosing Volvo project compiling sizes different trucks to cars Alexandria manufacturing plant (55 km north of Babylon) 2,400 m area 2includes two lines Antegean annual production capacity of 3,000 truck, "pointing to" assemble the truck (head and VIN) in full in Iraq and manufacture all the accessories that cause the entire truck in Iraq (Alibda denial flap). "
He added edict "This project will provide 20% of the cost in the event of import trucks from the company as will be running workforce by 250 workers in the project which is run by a cadre of Iraqi specialist," noting that "step today will open a new step for the industry in Iraq and would fill a need the country of import from abroad in cooperation with the private sector. "
The Minister of Industry and Minerals that "our plan following the merger of companies is the production of batteries, tires and aspire to increase the productive capacity of our factories," expressing his "surprise at the government departments not to buy what is produced by the Ministry of Industry and Minerals."
The Ministry of Industry and Minerals in Iraq opened on Monday (3 March 2014), project assembling sedans in Alexandria factory, on an area of more than 30 thousand square meters at a cost of 50 billion dinars.
Baghdad has seen and the rest of the provinces over the past years, the entry of hundreds of thousands of imported cars of various origins, which cause the occurrence of a traffic Gorge momentum in several areas close to government institutions in particular.
IRAQ AWARDS "GE" A CONTRACT OF ONE BILLION DOLLARS FOR THE DEVELOPMENT OF POWER PLANTS
The contract includes adding 700 MW to the national electricity network to be available for use with the summer Solutions.
Baghdad signed the company "General Electric", a partnership agreement with the Iraqi Ministry of Electricity in order to implement a comprehensive development of power stations plan. The move is aimed to meet the growing demand for electricity during the summer months. This plan includes a number of technical solutions and modernization projects that ensure the provision of the necessary energy resources with the addition of 700 MW to the national electricity network to be available for use with the summer Solutions.
And it will exceed the cost of contracts signed billion US dollars, and began to finance the first phase of the project estimated at US $ 328 million.
Musab a teacher said, a spokesman for the Iraqi Ministry of Electricity: "We are committed to strengthening the infrastructure of the energy sector in order to keep up with the growing demand for electricity, especially at peak periods during the summer months, including the summer of 2016 and provide a 'plan to increase electricity generation in Iraq' a comprehensive set of solutions that enhance the productivity and efficiency of power plants affiliated to the ministry. The integrated approach that we adopt to raise the capacity of the national grid in order to support economic growth, by providing a stable supply of electricity to ensure the infrastructure and keep pace with the development of domestic demand.
And completed "GE" recently Shipping part of the materials for the implementation of projects within the gas stations sites in Iraq. And technical updates include conversion of heavy fuel oil which enhance productivity operations, in addition to the installation of parts and components solution, "the developer path for gas."
Link to Part 2