Mnt Goat Full Newsletter for June 2 2020

by **Ponee** Tue Jun 02, 2020 9:22 pm

Hi Everyone,

I bring you much news today.

So much news lately about the currency auctions and the loss of revenue as a result of them. Also, the constant talks about the funding of terrorism through the auctions. Oh – I thought the purpose of shutting down the IQD in 2003 was to stop Iraq from funding terrorism against the allied coalition?

I have said that these auctions are a negative impact on Iraq since 2006. Bu they are not the only problem. Today we read about some people drawing up to 4 salaries while some go hungry. We read about the loss of $5 billion in revenue from the customs and tariffs. We read about the loss of money to pay for electricity and it goes on and on.

So what does this all tell us today?

It tells us the country has not been managed correctly. That the government is corrupt and the politicians are sucking Iraq dry and we can see they have not hit the bottom of the tank and it is dry. There is no more to take.

So now what do they do? Do they finally implement the promised reforms? Do they have any alternative?
How many times over the years have we read about ghost employees on the payroll or this double or triple dipping for salaries? But it still exists and nothing is done about it. That seem to be the trend in Iraq.
Were do we stand with the revaluation of the Iraq dinar?

I am still hearing from the CBI that the fully intend to complete the project to delete the zeros and do it much sooner than later. But I have no official article or announcements yet from the CBI in this regard. I was told we should see some announcement soon of the progress and what they intend to do next. We still wait for this from the CBI. It is supposed to come out this week.

More news….

BIG, BIG NEWS:
Member of the Parliamentary Finance Committee, Hanin Qaddo, confirmed on Saturday (30 May 2020) that Prime Minister MUSTAFA AL-KAZEMI OWNS THE POWERS TO CANCEL THE FOREIGN CURRENCY AUCTION AT THE CENTRAL BANK.

(Mnt Goat – I do not think this is true. This is someone’s opinion. We do know the CBI would like to have the support of Al-Kazemi prior.The CBI makes monetary policy not the GOI. Sorry we know better…)
More news….

Magda Al-Tamimi proposes a mechanism to amend the salary scale and warns: Money from the currency auction goes to finance terrorism
You can read the entire article. Here is the link.

link

Member of Parliamentary Finance Committee, MP Magda Al-Tamimi, on Monday (1 June 2020), spoke about a deficit of billions of dollars in the state budget rising every year since ."2003, while revealing the proposal of "the Iraq Salvation Committee Speaking during the program (Shortest Roads)

And he talked about the auction of selling currency in Iraq, and the currency auction said that his money goes to 4 sides which are employees of the central bank, parties, merchants, terrorism and financing of terrorism, which was through the currency auction.

(Mnt Goat – another warning about the auctions funding terrorism)

More news….

OIL REVENUES ARE NOT SUFFICIENT TO SECURE THE SALARIES FOR THE MONTH OF JUNE
Iraq relies on the proceeds of the sale of oil to finance about 95 percent of the country's expenditures.
Proceeds from the sale of oil gradually decreased in recent months to 1.5 billion dollars in April, compared to about 3 billion in March, and about 5 billion in February.

Friday, the Parliamentary Labor and Social Affairs Committee disclosed that the financial revenues generated from the sale of crude oil are not sufficient to secure the salaries for the month of June for those who receive them from the state.

Committee member Fadel Al-Fatlawi said in a statement seen by him / the information: “The number of employees in the state, as well as contracts and wages exceeded five million employees,” noting that “oil imports for the past month amounted to two trillion dinars and it is not sufficient to secure the salaries of state employees.”

He added that "the government will go to borrow more than four trillion dinars from government banks to secure salaries, as it did in the month of May." He pointed out that "THE GOVERNMENT NEEDS SIX TRILLION DINARS A MONTH TO SECURE THE SALARIES OF EMPLOYEES, RETIREES AND SOCIAL PROTECTION."

More news….

AL-KAZEMI AND MERKEL AGREE TO DEVELOP ECONOMIC AND FINANCIAL COOPERATION BETWEEN IRAQ AND GERMANY

Prime Minister Mustafa Al-Kazemi, Thursday (28 May 2020), German Chancellor Angela Merkel, agreed to develop economic and financial cooperation between the two countries.

The Information Office of the Prime Minister said in a statement received (Baghdad today), that "Al-Kazemi received a phone call from German Chancellor Angela Merkel," noting that "Merkel congratulated Al-Kazemi, on the occasion of his assumption of the post of Prime Minister."

(Mnt Goat – Iraq tried to hit Germany up for June’s 4-5 billion needed for June’s salaries…lol..lol..lol.. Without success! )

More news….

WHEN WILL THE 2020 BUDGET GO TO PARLIAMENT?

The parliamentary financial committee ruled out the possibility of deducting or saving employees ’salaries without making legal amendments, while assuring that the 2020 budget will arrive in Parliament soon.
Member of the committee Haneen Qaddo said in a press statement, "The Finance Committee in Parliament has not received any serious proposals by the government related to deduction or reduction of salaries and allowances for employees and retirees."

(Mnt Goat – Again I am saying to you the RV is NOT in the budget and this makes absolutely no difference in getting the reinstatement now just as it has not in the past. Every budget these gurus fill you with the same crap)

More news….

ISX: TRADING SESSIONS AND DEALING IN STOCKS FOR THE PERIOD FROM SUNDAY MAY 31 TO THURSDAY 4 JUNE 2020

It is noteworthy that the Supreme Committee for Health and Safety decided, yesterday (May 30, 2020), to impose a comprehensive curfew for one week
.
The Stock Exchange said in a statement received by "Al-Iqtisad News", that the market will not organize "trading sessions and dealing in stocks for the period from Sunday May 31 to Thursday 4 June 2020, in compliance with the decision of the Supreme Committee for Safety and Health in Iraq to impose a total curfew in Iraq."

More news….

Baghdad / extent

Mustafa Al-Kazemi’s government is moving towards borrowing from the central bank’s reserves to secure the employees ’salaries until the end of the current year, while deputies and economists oppose this approach.

The Prime Minister and his team were forced to use the cash reserves due to financial constraints and lack of liquidity due to the deterioration of oil prices in global markets on the one hand and the outbreak of the Corona epidemic on the other hand.

(Mnt Goat – this is still opinion and not FACT. Al-Kazemi has told the news that this is not the first option and is not doing to borrow from the CBI reserves at this time. So where and why they put out these articles I don’t know. We all know this would be a huge mistake and it would devalue the dinar if they did.)

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Formal Articles are below. Due to FACEBOOK limitations they do not print my RED colored fonts or italics, so my comments are in brackets ( ) throughout the articles. I will preface my comments with “Mnt Goat” so you know I am jumping in with observations. Also, I separated the articles with asterisks.

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Articles Begin

MAGDA AL-TAMIMI PROPOSES A MECHANISM TO AMEND THE SALARY SCALE AND WARNS: MONEY FROM THE CURRENCY AUCTION GOES TO FINANCE TERRORISM

Member of Parliamentary Finance Committee, MP Magda Al-Tamimi, on Monday (1 June 2020), spoke about a deficit of billions of dollars in the state budget rising every year since 2003, while revealing the proposal of a Iraq Salvation Committee Speaking during the program.

We spent from 2003 to the end of 2019 a trillion (15 zero), 226 trillion and 631 billion dollars, noting that the oil and non-oil revenues reached a trillion and 24 billion dinars.

He added: "From the beginning of 2003 to the end of 2019 there is a deficit of approximately $70 billion She explained:

We suffer from emotional and confusion and lack of planning in drawing and spending state budgets And she added: I spoke to President of the Republic Barham Salih that WE NEED A COMMITTEE CALLED THE IRAQ SALVATION COMMITTEE, WHICH CONSISTS OF A SMALL TEAM FROM THE EXECUTIVE AND LEGISLATIVE BRANCHES, AND THOSE WHO LIVE INSIDE THE COUNTRY work according to two tracks, the first is urgent and the second is medium and long-term

And she continued: This committee must reconsider the salary scale, because there IS A DISPARITY IN SALARIES BETWEEN A MINISTRY AND A MINISTRY, THERE MUST BE JUSTICE IN WHICH SALARIES ARE EQUAL BETWEEN ALL AND THIS PROPOSED MECHANISM HAS BEEN PUT FORWARD IN PRACTICE.

And after 2003, laws were enacted on emotional backgrounds that created allocations that allowed dual salaries to exist, she added, adding: "IT IS IMPOSSIBLE TO IMAGINE AN EMPLOYEE WITH TWO OR THREE SALARIES, AND AN EMPLOYEE AND CITIZEN WHO CANNOT FIND WHAT HE EATS.

She went on to say, The graduates are thinking of the appointment and that behind him retired because of the lack of support from the private sector, adding that IRAQ IS ABLE TO OVERCOME THE CRISIS ACCORDING TO MY VISION THREE MONTHS BY RESTORING THE ECONOMIC SITUATION.

And she saw that "the financial situation is bad in the country, but the solution is easy with the presence of the will, and the decision-maker needs boldness and strength IN APPLYING THE LAW, AND MANY OF THE DECISIONS AND REFORM LAWS WERE INITIATED AND NOT IMPLEMENTED

He pointed out that the doors of appointments recently opened without planning", warning that there is no database in some ministries, showing the number of those who were referred for retirement, for example the Ministry of Education does not have and 13,000 new employees were appointed without knowing the size of the number of those who left.

And she added: "There is no accuracy indicating the number of people referred for retirement, there is a discrepancy between the numbers installed on paper and what is ".mathematically proven, there is no computing She talked about "forgery that occurred in some appointment orders issued by the previous government," noting that "we have a lot of money but it is not collected or received less money according to the law, we have a lot of money that must be collected and go to the ".state but it does not reach the treasury She pointed out that "there is an agreement with the electricity distribution centers for some malls, and 50 thousand instead of one million dinars are received, for example, and this ".includes commercial shops as well.

And he talked about the auction of selling currency in Iraq, and the currency auction said that his money goes to 4 sides which are employees of the central bank, parties, merchants, terrorism and financing of terrorism, which was through the currency auctions.

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PARLIAMENTARY FINANCE: AL-KAZEMI HAS THE POWERS TO CANCEL THE CURRENCY AUCTION
Member of the Parliamentary Finance Committee, Hanin Qaddo, confirmed on Saturday (30 May 2020) that Prime Minister MUSTAFA AL-KAZEMI OWNS THE POWERS TO CANCEL THE FOREIGN CURRENCY AUCTION AT THE CENTRAL BANK. Qaddo said in an interview with (Baghdad Today), that “the Prime Minister, has the powers to cancel or stop the auction of foreign currencies in the central bank.”
He added, “This matter provided that it is attached to a study or documents proving the existence of money laundering operations, or corruption operations occurring during the sale operations,” stressing “the need for the government and the central bank to control the exchange rate of the dollar against the Iraqi dinar in Iraqi markets.”

Often, deputies from various blocks and components talk about the existence of major corruption operations that take place at the auction of currency sales by banks and personalities accused of money laundering operations .

Member of the mini-parliamentary committee concerned with following up the implementation of the budget, Abdul Hadi Al-Saadawi, SPOKE MONDAY (JULY 08, 2019) ABOUT THE EXIT OF THE CURRENCY AUCTION FROM THE CONTROL OF THE CENTRAL BANK, while the latter sold $ 150-200 million on a daily basis .

Al-Saadawi said in a press statement that “THERE ARE PROBLEMS AND VIOLATIONS RECORDED ON THE SALE OF THE CURRENCY BY THE CENTRAL BANK, AS WELL AS THE CURRENCY EXCHANGE RATE, which is often mobile and unstable in most cases,” noting that “any candidate for the position of the governor has to sit with the parliamentary finance to discuss These two things . ”

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WHAT DOES IT MEAN TO REDUCE THE IRAQI DINAR PRICE AGAINST THE DOLLAR? .. AN ECONOMIST ANSWERS

On Thursday, economist and academic expert Nabil Al-Marsoumi expected a set of results if the proposal to reduce the Iraqi dinar’s price against the dollar was applied to confront the financial crisis.

"If the Iraqi dinar exchange rate is reduced substantially by 25%, for example, the economies of some of the countries neighboring Iraq that export to it more than 20 billion dollars will be severely damaged," said Al-Marsoumi, an academic at the University of Basra. Annually, because the cost of its exports to Iraq will become high and its competitive capabilities in the Iraqi market will decrease, which is an important brake on taking this type of policy due to the strong influence that neighboring countries possess in Iraq.

He added, "Given the lack of flexibility of the production base and its limitations in Iraq, the prices of
imported goods will rise in the short term, especially, but in the medium and long term this may constitute an incentive to activate the role of the private sector in establishing projects that produce consumer goods, especially food, to cover the needs of the Iraqi market, which will lead to lower prices. Later".

He continued, "The government revenues denominated in the Iraqi dinar will increase by the same percentage of the dinar price, which will increase its ability to cover public expenditures and maintain the cash reserves of the Iraqi Central Bank from erosion."

He pointed to another point which is that "putting an end to the flight of capital in view of the low value of the dollar in the face of the dinar, as well as reducing Iraqi investments abroad, especially in real estate and reducing Iraqi deposits in foreign banks, as well as the relative reduction of money laundering operations in Iraq."

In this regard, the decree expected that "reducing foreign labor in Iraq, as work becomes less feasible on the one hand and foreign labor becomes more expensive compared to national employment."

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DEPUTY FOR SAEROUN: IF HALBUSI DOES NOT IMPLEMENT HIS REFORMS IN PARLIAMENT, WE WILL HAVE ANOTHER WORD

The deputy of the Alliance of Saeron Amjad Al-Aqabi WARNED, ON THURSDAY, SPEAKER OF PARLIAMENT MUHAMMAD AL-HALBOUSI OF THE FAILURE TO COMMIT TO IMPLEMENTING REFORMS WITHIN THE PARLIAMENT.

Al-Oqabi said to “The Information” that “a coalition of walkers is expected to implement Parliament Speaker Mohamed Al-Halbousi to implement the promises he made in the case of parliament reforms and vote on important laws in addition to activating the role of parliamentary oversight committees.”

He added, "If the reforms are not implemented, then surely we will have other words."

And yesterday, the former MP, Muhammad Al-Lakash, called on Prime Minister Mustafa Al-Kazemi to fire a mercy bullet on the House of Representatives, STRESSING THE NEED TO SET A DATE FOR EARLY ELECTIONS IN COOPERATION WITH THE ELECTORAL COMMISSION AND THE NEW ELECTION LAW.

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DIPLOMATIC SOURCES SETTLE THE CONTROVERSY OVER THE NEWS OF KUWAIT FORGIVING IRAQ DEBTS
Kuwaiti diplomatic sources commented on the rumors regarding Kuwait’s forgiveness of Iraq’s remaining debts, linked to compensation for the invasion of the previous regime and the postponement of other payments.

The sources said to the newspaper, “An-Nahar” that the Iraqi Finance Minister during his recent visit to Kuwait submitted a request on behalf of his country’s government to postpone the payment of the remaining debts for a period ranging between one or two years, given the economic conditions imposed by the low oil prices as well as the repercussions of the spread of the Corona virus, indicating that the request still under study were pending after by the government. ”

The sources pointed out that Iraq had been paid to Kuwait share of debt in the month of April / April last, worth $ 440 million, indicating that the total remaining debt value of $ 2.8 billion.

The MP former Kuwaiti, Abdul Hamid Abbas Dashti, wrote yesterday, Thursday, THAT HIS COUNTRY EXEMPTED IRAQ FROM DEBTS AMOUNTING TO $ 3 BILLION, AND DECIDED TO POSTPONE FURTHER PAYMENT.

Dashti wrote in a tweet on Twitter, “Congratulations to Iraq, to exempt debts of $ 3 billion due to Kuwait, and to postpone a debt of 1.6 billion dollars. ”

NEITHER KUWAIT NOR IRAQ HAS FORMALLY ANNOUNCED THE EXISTENCE OF SUCH AN AGREEMENT BETWEEN THE TWO COUNTRIES, AS WAS PREVIOUSLY THE PRACTICE.

Finance Minister Ali Allawi, who is also Deputy Prime Minister and Acting Oil Minister, suggested that Kuwait postpone about $ 3 billion in Iraq’s debt related to Gulf War compensation (1990-1991), when the ousted President Saddam burned Kuwait’s oil fields at the time.

(Mnt Goat – FACT Finding: remember this is still not formally announced but it is highly probably that Kuwait did agree. I quote –“ to exempt debts of $ 3 billion due to Kuwait, and to postpone a debt of 1.6 billion dollars. ” )

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PARLIAMENTARY FINANCE: 30 ITEMS OF REVENUE THAT ARE NOT ENTERED INTO THE BUDGET DUE TO CORRUPTION

The decision of the Parliamentary Finance Committee Ahmad Al-Saffar revealed, on Sunday, 20 to 30 items of revenue that do not enter the budget due to corruption, while warning that prejudice to the employees ’salaries constitutes a threat to government stability.

Al-Saffar said in a televised interview followed by "Al-Iqtisad News", that "prejudice to the salaries of employees in light of the circumstances that Iraq is going through today to confront Corona and the economic recession; Very dangerous for government stability, especially since this crisis will not exceed more than two months, as oil prices are rising and the global economy has begun to regain its vitality again. ”

He added, “Borrowing from the central bank’s reserves for two months is a quick solution that can be easily compensated and returned at a low interest rate because it is short-term.” He pointed out that “internal borrowing is better than external borrowing, which depends on conditions and very large benefits that may overburden the government at a later time.” .

Al-Saffar said, “The government should exclude unnecessary expenditures related to large allocations and other matters related to petty cash and protections, which also constitute a waste of public money.” He pointed out that “the state has from 20 to 30 items of revenue that do not enter the budget due to corruption starting with border crossings and customs And the real estate of the state, so the financial system must be re-established, move away from monetary policies, deal with cache and rely on the electronic automation of payment, in addition to resorting to the biometer until the state gets rid of the burden of multiple salaries, and we need to review the salaries and put a new ladder for them.

Al-Saffar stressed, "Restructuring the financial system for public revenues, as well as getting rid of the rentier system that depends on unstable oil revenues and relying on diversification of resources such as agriculture, industry and tourism, and that Iraq be an importer."

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THE VALUE OF THE DINAR!

As usual, he's always angry, sharp, radical, so a close friend confronted me on the phone, and he talks with a whiff of what he describes as a disaster, if the Iraqi dinar's exchange rate against the dollar is actually devalued!

This is his style since we had a close relationship on the middle school benches more than four decades ago, and like many of his impulsive temperaments, his character has not had a cultural and social life experience for decades.

I assured him that a study was conducted and a statement issued by the Central Bank of Iraq a few days ago, entitled "Reducing the exchange of the Iraqi dinar. It was as follows:
Determinants and Alternatives: ruled out the government resorting to such a measure, at least for the time being. The study referred to eight related factors, including the impact of the supposed reduction in the consumer, the increase in economic growth, and then the expected impact on social groups that adopt government support, and then questioned the ability of financial and monetary politicians to cope with the inflationary effects, before concluding that the government, by resorting to this measure to cover the budget deficit, would earn nothing according to the study, because what it earns by reducing it returns to losing by compensating for inflation.

Instead, THE CENTRAL BANK'S STUDY RECOMMENDED PRACTICAL STEPS TO REPLACE THE REDUCTION, AND URGED THE GOVERNMENT TO ADDRESS THE WASTE OF STATE RESOURCES, BECAUSE A PROCESS LIKE THIS, IF IT DID, COULD PROVIDE THE GOVERNMENT WITH MANY TIMES AS MUCH MONEY AS IT COULD GET FROM DEVALUATION OF THE DINAR.
The study cited, for example, $20 billion in annual electricity expenditures, while only less than 10% receive less than 10% of the expenditure. While our imports are worth about $50 billion a year, the government only makes 50 billion dollars in customs and other fees!

Similarly, the central bank's study suggested that the government should resort to saving money BY REDUCING EXPENDITURES IN THESE RESOURCES AND RATIONALIZING THEM, because in their view it is more useful in covering the budget deficit and the consequences of the current crisis, arising from the fall in oil prices and corona together.

I am now returning to my friend, who I have asked him to rest assured that THE GENERAL DIRECTION OF GOVERNMENT POLICY SO FAR IS NOT TO COMPROMISE THE VALUE OF THE IRAQI DINAR, so I have heard directly from the Governor of the Central Bank that the Bank is ready to ensure that the EXCHANGE RATE REMAINS AT CURRENT LEVELS FOR THE NEXT FIVE YEARS.

I honestly acknowledged to him that it is in my personal interest as a citizen that the dinar should remain in its present value, because it makes it easier for me and my ideals to buy dollars easily to travel or to treat outside Iraq, and I also admitted to him that this price helps to save a dollar for me and others, in order to ensure the vagaries of time and the demands of the end of life at the end of life!

But I wondered with him frankly, is it in the interest of the country to keep the exchange rate at its current value, especially considering that the oil dollar makes up more than 90% of our sources of income? It is estimated that the LOWEST ANNUAL HARD CURRENCY SMUGGLED OUT OF IRAQ TO NEIGHBORING COUNTRIES AND OTHER COUNTRIES IS UP TO $2 BILLION?

I don't extend the story to you, and my angry friend, at the end of the day, that one possible solution for the future is the systematic gradual devaluation of the dinar against the dollar, but certainly not in the style of shock or float, as happened to many countries around us, driven to float by a programmed decision as happened in Egypt and Turkey, or the forced float under the pressures of the economy, war and blockade, as happened in Iran and Syria.

No one is thinking today of taking even one dollar out of Iran, Egypt, Syria and Turkey, because it is an uneconomical process;

Naturally, this is not a call to flotation, but it is a general idea to deliberate, and the right decisions in such serious cases remain those that depend on competent studies, successful experiences, and more about us!
(Mnt Goat – this is opinion from an Iraq economist. It is noteworthy they are still debating in public what to do with the dinar. Why would they be debating about the value of the dinar is raising the value was not also an option?)

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Articles End

Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!

Disclaimer: All information in this newsletter is not intended for investment decisions / purposes. Mnt Goat is not a financial analyst, planner, banker, attorney or associated in any role with giving out professional investment advice.

In ending I want everyone to know your constant prayers in the fight against evil (ISIS) and now the corruption in Iraq have worked. God has guided these young men and women on the battle field. He has guided the honest, patriots of Iraq to fight for their homeland. So this new war now on our citizens is underway. New battles are raging every day over corruption. These are battles to save our societies from the corrupt politicians and secret societies who are bent on taking what they want from our current wealth and from future generations without our permission. We must keep praying for the end to the rapid corruption and enslavement of people in Iraq and also in the United States. We must pray for our leaders that they may be anointed by the Holy Spirit and guided to do God’s work. We must stand by them and let them know we are still there to support them, even after the election is over. I have composed a prayer maybe we can all pray today in our own way and until the reinstatement of the Iraq dinar occurs.

PRAYER

“For all leaders of all nations, that they may be anointed by the Holy Spirit to do God’s will and work to bring about abundance and prosperity to their nation.

To fight this waging war on corruption, our freedoms, our liberties, socialist plans and injustice.
To bring all those corrupt to justice and pay for their crimes no matter how high up in the government they are.

To end the corona virus “manmade crisis” and to awaken people everywhere of the dark side and the tools it will use to gain power and control.

That the FREE WORLD may be a shining example for the rest of the entire planet.
In the name of Jesus Christ our King and Savior, Amen”

Auf Wiedersehen
Much love to ya all,
Mnt Goat