DINAR IRAQ & DONG VIETNAM UPDATE, 2 JULY

 ECONOMIST INDICATES THE RISKS OF CURRENCY PRINTING

Asher, the economic expert, Ahmed Saddam, today, Saturday, the dangers of currency printing.

Saddam stated to Earth News that “there is no economic feasibility in printing the currency to cover the budget expenses for the reason that the increase or printing of the currency will raise the level of the monetary mass and thus will cause a significant rise in the price level by virtue of the lack of current production capacity within the economy, meaning an increase in the monetary mass.”

(basically printing more money to increase the currency in circulation will cause inflation. I think we all know the danger of this now since the US has made this their policy and we can see the inflation in the US. Time to go back to the gold standard…. )

In exchange for the absence of real non-oil production in the commodity sectors, namely agriculture and the manufacturing industry.

He added, “This will translate into a rise in the price level, in other words, a rise in the level of inflation and a decrease in the value of the Iraqi currency. The interests in the private sector lead to the dismissal of a number of workers and reduce them by virtue of the weak purchasing power and thus the failure to achieve revenues that can employ a larger number of workers.

And that “these are all negative effects that may be left behind by resorting to printing a new currency in return for the lack of real production capacity, in addition to a lack of confidence in the Iraqi currency and in decisions, and this causes great economic confusion even at the level of the investment decision, which in the end affects the reality of the economy in a way very negative.”