Tuesday, April 9, 2024
Following the “golden rule”. Government adviser explains how Iraq liquidated its foreign debt, 9 APRIL
Following the “golden rule”. Government adviser explains how Iraq liquidated its foreign debt
A government consultant explained how Iraq liquidated and reduced its foreign loans and debt.
“A positive indicator of the decline in external obligations, and future external loans will be limited when needed to income-generating and operating projects,” the Prime Minister’s financial adviser, Mazhar Mohammed Saleh told {Euphrates News}.
He pointed out, “Many of the external debts committed to and not withdrawn have been liquidated, which means that Iraq follows {the golden rule} in borrowing, which is spent that the returns on the use of external loans spent on productive projects exceed the cost of the loan itself, and this is what is called {productive external loans}.”
The government spokesman for Al-Awadi announced yesterday that “the government has taken a series of executive measures, and adopted a package of financial decisions, which ended in reducing external public debt by more than 50%, to reduce the debt from $19.729 billion in late 2022, to $15.976 billion in 2023, reaching nearly $8.9 billion this year.”
He pointed out, “These financial steps, (which included the suspension of a number of borrowing operations due to their relaxity and non-productivity, organizing, managing and auditing debts, restructuring and directing some debts to establish strategic projects), aim not to mortgage the Iraqi economy to commitments that may affect, in the future, the political decision, or the path of national development, and they coincide with an urban renaissance, and reconstruction of infrastructure, which opens the way for a promising future and a refreshed economy, in which our current and future generations perform the best performance, and receive the greatest opportunities.”
Raghad Dahham
"ZIM CURRENCY BACKED IN GOLD" BY GOLDILOCKS, 9 APRIL
GOLDILOCKS
This article reflects more about Zimbabwe currency than the Zim Bonds my friends.
It is good that they have changed their monetary policy to a backing in gold.
This will stabilize their currency and create new monetary policies for those who exchange with them over time.
© Goldilocks
https://bbc.com/news/world-africa-68736155
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"JAPANESE Prime Minister Fumio Kishida said on Friday (Apr 5) authorities will use “all available means” to deal with excessive Yen falls, stressing Tokyo’s readiness to intervene in the market to prop up the currency."
In other words, Japan has to do what is best for their own country at this point. If it means to change monetary policies for their currency, it is going to happen.
These changes will begin to affect shipping prices around the world as Japan formulates new price pressures that will formulate new correlations between other countries' currencies going forward.
This is why it is so important to watch the water because most of our trade actually takes place because of it. New demands such as these have a way of creating a ripple effect across the waters.
This move has the potential to decouple from the dollar as the World Reserve Asset currently dominating trade relations.
Watch the water.
© Goldilocks
https://www.businesstimes.com.sg/companies-markets/banking-finance/japan-warns-against-excessive-yen-moves-rep
"IMPORTANT IRAQ NEWS:ADVISER TO THE PRIME MINISTER: IRAQ IS WITHIN THE SAFE RANGE COUNTRIES IN TERMS OF PAYING FOREIGN DEBTS" BY MNT GOAT, 9 APRIL
ADVISER TO THE PRIME MINISTER: IRAQ IS WITHIN THE SAFE RANGE COUNTRIES IN TERMS OF PAYING FOREIGN DEBTS
Today, Thursday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the reasons for reducing annual allocations to pay off foreign debts, while noting that Iraq is among the countries in the safe range in terms of debt repayment.
Saleh said to the Iraqi News Agency (INA): “According to international standards in calculating the ability of the national economy to bear the burden of external debt, Iraq is among the group of countries in the safe range in terms of the global standard for the ratio of the external debt stock,” indicating that “the gross domestic product According to estimates, it does not exceed 20 percent, while the global measure of the debt-to-GDP ratio allows up to 60 percent.
He explained, “Given Iraq’s regularity in repaying its external debts due annually, of which only approximately 20 billion dollars remain, the annual allocations to pay external debts through the federal general budget allocations have begun to show a clear decline and decrease in the amount of external debts due, and this has been reflected.” This is in the 2024 budget tables regarding allocations for external debt payments, compared to the 2023 budget tables, with a difference of decrease that may exceed a billion dollars.
He added, “This matter is reflected in Iraq’s high creditworthiness in repaying its debts to external creditors and its commitment to repayment since the Paris Club Agreement in 2004 until the present. These are annual financial allocation mechanisms whose installments and interest are paid on a regular basis through the annual general budget, and they are decreasing. This means that the external debt gap is heading towards shrinking and then almost disappearing.”
He noted that “the Paris Club Agreement in 2004 dropped more than 100 billion dollars of Iraq’s pre-1990 debt after Iraq obtained a discount on its debts at that time, which was 80 percent and more, and only a little of the remnants of those debts remained after it was removed.” The remainder of it has been scheduled and is paid annually according to a precise and regular accounting mechanism on the part of Public Finance and the Central Bank of Iraq, and the continuous decrease in its allocations is demonstrated by the amount of the decrease in the annual allocation of external receivables from the debts that must be paid and their waiver annually.”
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
Monetary Revolution: The Fed Considers Ditching Fiat Currency For Gold BY AWAKE IN 3D, 9 APRIL
Monetary Revolution: The Fed Considers Ditching Fiat Currency For Gold BY AWAKE IN 3D, 9 APRIL
Is the U.S. on the Verge of Adopting a Beneficial Financial System Reset?
An unbelievable financial report was recently released outlining mathematically modeled scenarios for moving from Fiat to Gold financial systems.
I couldn’t believe my eyes when I read this Philadelphia Federal Reserve Bank’s February 2024 analysis and Working Paper.
The Fed, a principal overlord of modern fiat debt currency finance, is seriously contemplating a move that seems straight out of history books: bringing back a gold-backed currency for the United States and the global financial system.
How does an economy behave in a historical environment where gold is the international monetary standard? We find that key features of this monetary system are long-run price stability and the nonneutrality of money in the short run.
The Philadelphia Federal Reserve Bank Working Paper. February 2024
This isn’t a drill or a speculative thought experiment.
Given the dire predictions for our current fiat currency system, which is not backed by physical commodities and is on a crash course toward certain failure, this old-school idea suddenly makes all the sense in the world.
About the Philadelphia FED’s Surprising Working Paper
In a groundbreaking analysis released by the Philadelphia Federal Reserve Bank in February 2024, a compelling case is made for a significant pivot in the United States’ monetary strategy: the return to a gold-backed currency system.
This detailed examination, rooted in meticulously crafted economic modeling and historical insights, raises critical questions about the sustainability of the current fiat currency system.
The Federal Reserve’s exploration into this territory is not merely an academic exercise but a profound indication of the serious considerations at play to avert a financial system collapse that everyone knows is “mathematically certain and inescapable.”
The study, while complex, digs deeply into the foundational principles of the gold standard, underlining how such a system historically ensured long-term price stability and economic equilibrium.
In essence, the gold standard acts as a self-regulating mechanism for the money supply, linking the issuance of currency directly to gold reserves. This link curtails the propensity for unchecked money printing, a critical flaw in fiat systems that often leads to inflation or worse, hyperinflation.
Understanding the Gold Standard
Allow me to break down what this all means.
The gold standard is a monetary system where a country’s currency has a direct link to gold. So, if you have paper money notes, you can exchange it for a certain amount of gold.
Historically, this system kept economies stable because it prevented governments from printing money willy-nilly, which can lead to inflation or even hyperinflation.
The Fed’s report points out that with a gold standard, we’d likely see a more stable long-term economy, with fewer sudden spikes or drops in prices.
Why This Matters Now
You might wonder, why consider this now? The Fed’s analysis shines a light on three big reasons:
- Long-term Price Stability: Gold ties the hands of those who print money, ensuring that over time, prices don’t wildly fluctuate. Think of it as a financial thermostat that keeps the economy at a comfortable temperature.
- Money That Means Something : Right now, if the economy starts to falter, the government can just decide to print more money. Under a gold standard, this wouldn’t be as easy. Money would have real value tied to something physical, and as a result, its impact on the economy would be more predictable and steady.
- Protection from Economic Storms: The world economy is a complex web of trade and investment. The Fed believes that linking money to gold could act as a buffer against sudden shocks from abroad that can send our economy into a tailspin.
The Challenge Ahead
However, don’t think transitioning back to gold would be easy. It would require a delicate restructuring of international trade, balancing how much gold comes in and goes out of the country.
The Fed’s report is clear-eyed about these challenges. It talks about the need for careful policy planning and international cooperation to manage these complex dynamics effectively.
The very fact that the Fed is even considering this move is a wake-up call. It signals a profound concern about the sustainability of our current financial system.
This isn’t about looking backward with nostalgia. It’s suggests a forward-thinking strategy aimed at preventing a total economic collapse.
https://ai3d.blog/monetary-revolution-the-fed-considers-ditching-fiat-currency-for-gold/
Evening News with MarkZ. 04/09/2024
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...