KTFA:
Clare: The Executive Director of the International Monetary Fund warns: Is there a possibility of the collapse of the global monetary system?
5/3/2024
The Executive Director of the International Monetary Fund, Alexei Mugin, said on Friday that he does not rule out the possibility of the collapse of the current global monetary system.
In an interview with the “Novosti” agency, Mogin asked: “Is there a possibility of the collapse of the global monetary system? It seems to me that such a possibility actually exists.”
The expert pointed out that the current system relies on confidence that dollar assets are safe, but central banks, institutions, and even families have already begun to sell dollar assets and buy gold, due to growing lack of confidence in their safety.
Mougins warned of chaos in the global economy, noting that “once this confidence is lost, a period of chaos will occur in the global economy.”
Reports issued by the International Monetary Fund warned last April that the debts of the United States and China pose a threat to global finances.
The rise in US public debt and the dependence of global trade on the dollar raises concern among experts and a number of countries around the world.
Data issued by the US Treasury Department earlier this month revealed that the US budget deficit exceeded one trillion dollars in the first six months of the fiscal year, partly paid for by the rise in interest on public debt. LINK
Alicia2015: Is there a possibility of the collapse of the global monetary system?
IMO yes. All debt base monetary systems eventually collapse. Once taken off a gold standard Fed-R kept printing dollars at a phenomenal rate. Now…Every 3 months interest on our debt increases 1 trillion dollars, that’s 4 trillion a year.
It’s mathematically impossible to pay it down so printing more money and feeding the machine is the Fed R only option. Every dollar printed draws value from existing dollars, weakening the purchasing power, creating inflation (too many dollars chasing too few goods).
IMO a global monetary collapse is in the horizon, which explains why Global World banking institutions are purchasing gold at a higher rate than ever before. The smart money is running to gold and silver!
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Clare: Specialist: Floating the dinar is economic suicide
5/3/2024- Baghdad
Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.
Helu said, “The Central Bank of Iraq cannot think about floating the exchange rate because it will abandon its only influential tool in light of the weakness and disruption of other economic tools.”
He added that the exchange rate is the nominal stabilizer of monetary policy in Iraq, and thinking about abandoning it is economic suicide and the bank cannot even think about that.
He continued, adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices.. LINK
Paulette: IMO…..As Saleh was stating but only stronger wording
Clare: Al-Sudani: There is no alternative to upholding the state’s word, protecting the constitution, and enforcing the law in Iraq
5/3/2024
Prime Minister Muhammad Shiaa Al-Sudani stressed, on Friday, the necessity of what he called “upholding the word of the state, protecting the constitution, and enforcing the law” in Iraq.
This came in a speech he delivered during the celebration held today in the capital, Baghdad, on the occasion of the anniversary of the founding of the Asaib Ahl al-Haq movement.
Al-Sudani said in the speech, “The government is moving, supported by broad parliamentary and popular will, towards achieving sustainable development.”
He continued by saying: Our country is moving today to the stage of production, building infrastructure, stimulating the economy, creating job opportunities, confronting challenges, and consolidating sovereignty.
Al-Sudani also stressed that “we all bear the task of enforcing the law, and building the edifice of justice, equality, and institutional stability,” stressing that “there is no alternative to upholding the word of the state, protecting the constitution, and enforcing the law in the country.” LINK
CalandLQ: IMO, the buzz words that keep appearing each day now are everything! Words like, upholding, protecting, enforcing and my favorite celebration!! When I imagine as an American being in their shoes and salaries have not been paid and purchasing power is weak the only way I see any leader in Washington giving a celebration speech in public (in said conditions) would be with the National Guard and no civilians allowed within 100 yards of the speaker. Yet, these guys are celebrating…celebrating what?!?!?! IMO we will soon find out. It is my understanding based on our study and as pointed out by Frank last night the requirements for the SAP and WTO are the same which means is they MUST have a REER! Also, if I’m not mistaken, the WTO meeting is scheduled for May 9th
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Clare: Economic: The fixed dollar exchange rate depletes Iraq’s foreign currency reserve
5/3/2024
Economist Manar Al-Obaidi confirmed that the fixed dollar exchange rate adopted by Iraq depletes the country’s foreign currency reserves.
Al-Obaidi said, “The only thing that is completely under the control of the Iraqi state is the exchange rate, which forcefully drains all foreign reserves to maintain an imaginary fixed price that traders benefit from to increase their profit margin.”
He added, “I never called for following a free-float policy. Rather, I called for a start to follow a compensation policy managed with a small volatility factor and gradually work to increase it until complete liberalization is reached.”
He continued, “The alternative to maintaining the fixed exchange rate is to continue depleting the reserves until they run out and the oil market is exposed to very expected future fluctuations. Then, will we be forced, not given the choice, to an absolute floatation of the currency or a shocking reduction in the exchange rate, as happened in 2020, and then the risks will be greater and greater?” LINK
Paulette: IMO…..AGREE!!!!! Managed prior to Free
