😊Another article today on establishing a sovereign fund but this time it is more seriously addressed and more aggressively and not just recommendations. They are going to do it and use all these additional revenues to fund it, such as taxes, customs, tariffs, minerals, and other major financial outlets sectors.
You can go read the entire article titled “PARLIAMENTARY FINANCE COMMITTEE DISCUSSES PROPOSAL TO ESTABLISH SOVEREIGN FUND”. The Parliamentary Finance Committee announced, on Monday, discussing a proposal to establish this sovereign fund. They have to park all this money somewhere and let it grow.
Why would Iraq even need this sovereign fund? So, let me explain. At least this is how it was told to me by my CBI contact. Iraq will need to invest its money. But what money?
Are we talking about the oil revenues? Yes, some of this money is from excess oil revenues beyond what they need to pay to run the government and salaries of Kurdistan. This excess comes when the budget is priced lower than the actual outgoing price of oil.
We can call this “surplus revenues”. Right now they put this money in their reserves so they can use it for the proverbial “rainy day” if the oil prices drop below their budgeted price of oil.
What Iraq is now attempting to do, and they will be successful, is to try to harvest all avenues of additional revenues beyond the oil revenues. We can clearly see that the oil industry is not the energy of the future. It is not that oil is running out anytime soon but that there will be cleaner, more efficient energy sources coming our way. Keep in mind what the prophets also told us about three (3) news sources of energy and that these sources would be very affordable and practical. So, then why still use dirty oil. Do you get my point?
To overcome this future situation Iraq must now make the changes and make them way in advance. The plan therefore is to capitalize on ALL and EVERY additional source of revenues besides oil. We were told that a combination of these revenues could rival the oil revenues.
Really? Years ago, when I first heard this, I found this hard to believe, but as time passed I can see that there is enormous potential to get off the oil rentier economy and move more to self-sufficiency. Iraq must take advantage of all these sources of revenues. In addition, they are now kick-starting manufacturing. Yes, I am told the factories are being rebuilt and newer ones coming to life. This too will create more tax revenues, exports and of course jobs.
Having said all this about additional revenues, one must also keep asking but why? Is there more to this that meets the eye? If you really study what is going on in Iraq you then can see it. No, not some stupid intel guru bank stories but take the time to really study. Then out pops the replacement of the petro-dollar and on to the petro-dinar. I want now to reinforce the enormous magnitude of this move if they can pull this off.
No comments:
Post a Comment