Iraqi Dinar Discussion Board

[Rasica]

Iraq's rebuilding Budget has increased two fold since 2007 from $33 Billion to now $67 Billion -- this in and by itself leap years ahead of where they thought they would be.

"Iraq Minister of Finance: The financial crisis and the drop of oil prices did not effect on our national economy"

The Finance Minister Bayan Jabr said the national economy and the budget for 2009 was not influenced by the repercussions of the global financial crisis and the fluctuation of oil prices, warning of problems facing the country if the oil ministry would not rise its production capacity.

Al-Zubaidi said that the country had not been affected by the global financial crisis and the drop in oil prices will not reflect on staff salaries and the recent increase, saying that "precautions have been taken have proved to be successful in spite of the many criticisms that we hear from time to time by persons are now sharing with us the view that the national economy is fine, And the government is committed to its promises to citizens, even if the price of oil fell to less than 50 dollars.

"He added," There is no fear for the country's economy, there are huge oil reserves, he called on the oil ministry to work to repair its infrastructure and raise production capacity to three million Barrels as soon as possible otherwise we will face problems in 2010 and 2011, "Zubaidi stressed the importance of upgrading the industrial and agricultural reality that has improved through government allocations and the agricultural initiative of Prime Minister and allocations of the Ministry of Water Resources, which contributed to support for agriculture real has been evolving in the production of wheat and barley, noting that the industrial is sector well, but needed guidance to improve and develop. "He pointed out that the global financial crisis is a systematic crisis, saying that" after the collapse of socialism and the transformation of the world to capitalist system, there are no financial oversight or controls to policies of banks and lending institutions and funds, bonds and smart card which is the focus of dealing in the capitalist countries, so the real problem in the capitalist system and how it works ", pointing out that the index for the first signs of the current crisis started almost a year ago in the United States," but that the government had to postpone the collapse, I think we are in the beginnings of collapse, and not at the end and the remedies taken of trillions dollars, are just temporary not real ", calling for the adoption of the Islamic economic system as a compromise between socialism and capitalism.

http://www.iraqdirectory.com/DisplayNews.aspx?id=7454

Oil has increased by $9/bbl since this Statement.

Keep in the mind when you see these type of headline grabbers ... they are referring to Iraqs initial budget which called for almost a triple increase in budget from 2007. Iraq scaled back a mere $13 Billion from &80 Billion +.

Iraq is operating at a still huge windfall of doubling their revenue in 2008.

With regards to Iraq spending $1 to $1.5 Billion/month, buying back the Iraqi Dinar off the Open Market since June 2008, I see nothing that would point to a cessation. Granted, the Iraqi Government will have to end at some point, other wise they would buy all the dinars on the open market within 10-15 months or so. It simply depends on how many Dinars they have decided to reduce the open market to.

http://www.nytimes.com/2008/06/21/world/middleeast/21security.html?hp<br>
By STEPHEN FARRELL and RICHARD A. OPPEL Jr.
Published: June 21, 2008
Page 3

..... rate might be a good deal higher without the central bank’s aggressive policies. The bank spends $1 billion to $1.5 billion every month in oil revenue to buy Iraqi dinars on the open market, said Mudher M. Salih Kasim, senior adviser to the bank. This is the main lever for controlling consumer prices, said Kasim, who noted that the value of the dinar had risen about 20 percent against the dollar..........