Economic take-off, the restoration of the monetary mass and stimulate banks (1)

Economic take-off, the restoration of the monetary mass and stimulate banks (1)

August 27, 2017, 9:27


Adel Abdul-Mahdi

Rely entirely on oil resources, which will not rise much prices rose soon .. US production because of the technology of 5 M.b.a, and less for more than 9 M.b.a, and will enter new producers to keep supply up .. Reducing "OPEC" for its production, It may prevent the deterioration of prices more, but Sakhosrna more markets will suffer from a long or permanent deficit.

Iraq was forced to stop appointments and reduce its expenses and contracts, to a deficit of about 23 trillion dinars. To demonstrate the seriousness of the situation we refer to one factor, which is to meet the needs of population growth alone will require an additional 6-7 dollars of national output annually billion, what work, with the decline in imports?

Did not grope serious plans for the launch, most of our plans focused on deductions and levies from economies are weak mainly, and the use of internal and external loans .. Valsndan "Tigris" and "Euphrates" intended primarily to cover the deficit, and rating (B- / stable), reveals the weakness of our economy, this advanced Morocco (BBB-) and Jordan (BB-) we have, two non-oilfields countries .. and should not hide the positive side we get the rating, and the large number of subscribers, and the speed of entry into force of the bond, and the return of some confidence, high interest for the loan of a sovereign, does not give its own indicators to diversify economy, spreading life in the real sectors.

Solutions are clear, and the potential of our hands, but they require a change mentalities and policies .. The first is to remove bureaucratic militancy and basic causes of stagnation, corruption and waste of money laundered and running away. We proposed formal memoranda and informal policies, including Astjmab more than 34 trillion dinars, located outside the banking session, for fear of past experiences, and radical measures that characterized the tax and banking system, and to take advantage of many inside and outside of the survival of paper currency economics Cash Economy, to encourage corruption and fraud evasion, and require detail as headings, and Labee of reference to understand:

We suggest -khalal for Mahddh- exempt money deposited, from revealing their source or subject to tax be held accountable, unlike international and Iraqi hard-line instructions, which contribute, consciously or ignorance, escape and survival money outside the banking session. The state is pressing today on the assets of banks to provide for the same money, at a time when banks are suffering from a weak economy, and non-payment of their debts to most contractors, the government's inability to pay their dues.

Ensure that the money deposited from any takeover process or nationalization or bankruptcy, and this is a matter of legislative and contractual.

Central Bank of the banks interest of 4%, and banks granted loans or interest rates profit much higher. But no sense of high interest rates without real guarantees, looking for the two Funds and not only one.

Some will take advantage of this policy to launder their money, but in front of a dangerous situation .. and requires radical reforms. Vtdhyat debt and risks are not less burdensome than the policy of trying to correct the tracks, Bastjmab our money and the money of others to get out of the paper currency economy and fight the real corruption, and spread the habit of banking, and move them out of business Chirvih auction currency, banks lending and investments and initiatives, which the stems of the national economy, and to achieve financial transparency of the real people and legal entities, and to activate the financial and monetary policy drivers for the start of the real economy tools. For comparison, not for reproduction, North Lebanon is an example, where there is no oil, and the crises and wars and the forces of armed like us, the state is weak and his energies and wealth and Messahath and its potential less of us, but the economic indicators of realism advancing on us, and the main reason is the strength of the banking sector.

Astjmab paper currency only one option, while the rest of the Iraqi funds internally and externally Vkberh .. It has recently occupied the first place in the purchase of real estate in Turkey .. stands at the forefront of investments in Oman and the United Arab Emirates, Lebanon, and many other countries. And scare people and repeating the words protect in the end of underdevelopment, corruption and waste, not for nothing but because the prevailing mind accustomed to chant to serve the failed systems, and replaced by offering concessions and some sacrifices to lure our money, which necessarily lead to lure others to contribute to the start of the economy, is easier on us than many sacrifices and burdens that cost us dearly to continue the current debt and policies, which did not get us previously, will now take us out of dependence on oil and indebtedness, underdevelopment, corruption and public waste.


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