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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Strategy for establishing a sovereign fund

    Rocky
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    • Post n°1

    Strategy for establishing a sovereign fund Empty Strategy for establishing a sovereign fund

    Post by Rocky Sat May 11, 2019 6:37 pm

    Strategy for establishing a sovereign fund
     Saturday, 11 May 2019


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    All the countries that have the money obviously will have influence in the world, and this influence is being cleaned through the so-called national funds or sovereign wealth funds and to know the sovereign wealth fund must know the Fund first is a company that manages the funds of different investors individuals, companies and bodies to achieve greater The sovereign investment fund is also an investment fund and is subject to the same idea as the ordinary fund, but it does not manage money for companies or individuals, but manages state and government funds.
    Does every country have a sovereign fund? Definitely the answer absolutely no.
    The sovereign fund is created when the state has a surplus of money, in the sense of every country that has transactions with the outside world, sells and buys from it. If the total of the goods it sells are more imported goods if it has a surplus of money and what applies to goods applies to services and investments for heads Money.
    For example, if you receive a large number of tourists such as the UAE, if you receive the money of these tourists in return for giving them tourism service on your land, and therefore if you get money through tourism more than your citizens spend in tourism in the outside world, A surplus of financial services in tourism and so in the economy, investment, oil and others, the total of what it exports more than it imports will be a country with a surplus of money, here we want to know where this surplus goes in countries.
    The cash surplus often goes to what is known as the monetary reserve supervised by the central bank.
    If this reserve is limited, such as Tunisia, Egypt, Morocco, etc., the state puts it aside and uses it in the event of any emergency, or uses it for investments. For example, it buys American debts and gets treatment, wheat or other goods in case of emergency.
    But if a country has a very large surplus of cash reserves (Kuwait, UAE, Saudi Arabia, Norway), then this huge money is invested by the Sovereign wealth fund. These funds are a necessary benefit and they do harm to countries. For investments of this country, for example, the UAE or Saudi Arabia 90% of its revenues come from the sale of oil or gas and therefore any decline of oil will suffer budgets of these countries suffering as large as in Iraq, and thus the existence of such a sovereign fund investment over many years can compensate for price disturbances Petroleum This is a great benefit. It also gives them the opportunity to diversify their investments in many different markets and in different sectors that can reduce dependence on the sale of oil.
    As for the damage if there is a huge surplus and this surplus was paid in salaries or increase the salaries of the citizens or increase and redundancy to satisfy the citizens, or increase government expenditures, will be the proportion of liquidity more in this country and can become inflation and high and without benefit to the state will be more damage than its benefits, The state is always at risk, as happened in Venezuela and other African countries that own and sell oil, but poverty has hit the citizen and the state together.
    The first sovereign fund in the world 1953 Kuwait was the first sovereign fund in the world, followed by a large number of our funds (100) investment funds in the world. There is an institute called the Sovereign Funds Institute. This institute specializes in studying all investments and movements of sovereign funds In the world based in the United States of America.
    The last estimate of these funds (8) trillion dollars means a thousand billion dollars and this is a very large number. There is a rise and fall in funds because they invest in corporate bonds and investments in the purchase of companies, factories and media institutions and in lending to countries.
    There are large fixed funds such as the Norwegian sovereign fund is the largest fund in the world undisputed is the first company exceeds the ownership of the barrier (trillion dollars) in 2016, and then followed by the funds of some countries Saudi Arabia, the UAE, Kuwait, Qatar and others.
    And another arrangement for these funds
    Kuwait Fund $ 692 billion, Kuwait Investment Fund $ 500 billion, Hong Kong $ 509 billion, Hong Kong $ 509 billion, China Fund $ 400 billion, Singapore Fund $ 360 billion, Singapore Fund $ 350 billion, a third fund for China called National Council 341 billion and in tenth place the country fund of 320 billion
    Of course, Saudi Arabia always keeps one of the top ten but does not send its data to the institute. So it does not have its name in the last ranking. It has two funds. The first one competes in the top 10. Sama fund is worth 550 billion dollars and the second is competing in the 20 with a value of 300 billion dollars.
    Half of the funds are owned by oil-exporting countries and the other half have strong economies such as China and Singapore.
    China's coffers are growing abnormally. We see in the first ten boxes, three of which are for China, totaling more than 1.7 trillion dollars.
    Norway has saved countries in the global economic crisis and saved companies. This is certainly due to big profits. China is a country that has bought American companies in the world. It invests its huge money in all countries of the world. Even Saudi Arabian Gulf countries have money. In the sovereign fund is influential in Western countries regardless of the Arab countries, the UAE and even Kuwait.
    Iraq, which does not have the idea of ​​the sovereign fund and the reason is to spend every surplus comes when the rise in the price of oil, causing permanent deficit in most budgets, and makes it vulnerable to any crisis, such as urging and low oil almost torn Iraq, and took advantage of the opportunity that was not fabricated and forced by companies and global banks To borrow and that any significant drop in oil will be caused by a disaster on the Iraqi economy at any time later.
    The loans from the World Bank to smart countries such as Japan, which was the largest borrower country in the world is due to borrow interest because it invests this money and pay off profits. As for the consumer countries only, such as Iraq is borrowing to meet consumer needs and then borrow again and find that a large proportion of The budget goes into debt.
    If the establishment of a sovereign fund in Iraq becomes a strategic necessity for the future, and this fund is established the least of the surplus oil and support other productive sectors and invest funds of the Fund and the establishment of factories and productive laboratories that achieve self-sufficiency in the right form, and the sovereign fund is far from partisan quotas, It is not logical to manage the shrines in Iraq succeed in investing their money properly and a country can not invest these astronomical figures.
    Budget 2013 = 150 billion dollars in Maliki's time
    The budget of 2016 = 66.8 billion dollars in the time of Abbadi
    The 2018 budget is $ 88.3 billion in the time of Abbadi
    The budget for 2019 is $ 108 billion Adel Abdul Mahdi


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