Samson: Parliamentary Finance: We rejected two official requests from the government to reduce and save employee salaries
19:54 – 04/28/2020
The Parliamentary Finance Committee announced on Tuesday that it formally rejected two government proposals submitted to Parliament to reduce the salaries of employees and compulsory savings.
Member of the Finance Committee Shirvan Mirza told / “The information” that “the government submitted several proposals to Parliament and the Finance Committee specially to address the financial crisis.”
He added, “Among the proposals submitted is to reduce the salaries of employees and compulsory savings,” noting that “the Finance Committee has formally responded by rejecting the two proposals, and citizens cannot be charged with successive fiscal policy mistakes of governments.”
He emphasized that “the Finance Committee agreed not to pass any proposal that affects the salaries of employees and retirees.” LINK
Iobey77: Well, IMO,here’s an idea, if you had a shiny new Exchange Rate for your country, you might not need to cut anyone’s salary!
InvestDean: Just thinking….or do they need to lower the salaries as it will have more power of purchase soon..
BillA: Logic says there will need to be an adjustment
Iggy: Why is Peter Pan always flying?
Iggy: A woman walks into a library and asked if they had any books about paranoia.
The librarian says “They’re right behind you!”
Iggy: When you look really closely, all mirrors look like eyeballs.
Iggy: I told my girlfriend she drew her eyebrows too high. She seemed surprised.
Iggy: Whatdya call a frenchman wearing sandals? Phillipe Phillope.
Iggy: An Army Drill Sergeant took some recruits to the mess hall. After everyone had made it through the chow line, he sat them down and told them “There are three rules in this mess hall- Shut up! Eat up! Get up!” Checking to see that he had everyone’s attention, he asked, “What is the first rule?” Much to the amusement of the other instructors, 60 privates yelled in unison, “Shut up, Drill Sergeant!”
Pompeo: Iraqi leaders must set aside the quota system and reach a settlement to form a government
29th April, 2020
US Secretary of State Michael Pompeo on Wednesday called on Iraqi leaders to set the quota system aside and reach a settlement to form a government.
Pompeo, in a statement followed by “Al-Ikhbaria”, called on the Iraqi government to “put all the gunmen under the government’s umbrella, and we welcome the step taken towards that.” LINK
Don961: The global financial system is in crisis and heading towards change
– 8 Hours Ago Researcher Shatha Khalil *
The world today lives in a real and dangerous crisis as the public debt of all countries of the world has become three times its national product, which means that the world lives in a state of bankruptcy and a crisis of global order, accompanied by chaos upon collapse or reshaping the global system and the division of the strongest country in the world, and is considered The period is bad in terms of the rise of indebtedness (the countries of the world combined) to three times its national product, where the gross national product constitutes 85 trillion dollars in all countries of the world, while the total of global loans, i.e. debt, reached about 260 trillion dollars, which indicates that the world lives in a state bankruptcy.
Where the European Union specified the risk ratio of public debt should not exceed 60% of gross national product and today it reaches three times the output, that is, a child born in the world is born and the debt has three times its income.
Experts predicted a severe and short recession while the Corona virus severely restricted “economic activity” and economic growth decreased by 2.4% in the first quarter, and will decrease by 26.5% in the second quarter
The unemployment rate rose to 12% by the middle of the year, while the United States of America might lose 4.58 million jobs in the second quarter, and job losses will affect spending, which is the main driver of the US economy, with consumer spending accounting for about 70% of economic growth.
Despite the sudden downturn, economists remain optimistic that the economy will rebound again in the last half of 2020, as it is expected to grow at approximately 6% by the end of the year.
American public debt is the total money that the federal government owes the United States to holders of US debt instruments, so how does it work?
Gross national debt includes the components of “public debt” – such as Treasury bonds held by investors outside the federal government, including individuals, corporations, the Federal Reserve System, foreign, loyal, and local governments.
“Government account debts” or “government debt” – which are non-marketable treasury bills within program accounts managed by the federal government, such as the Social Security Trust Fund.
The debts held by government accounts represent the cumulative surpluses, including interest earnings, for the various government programs that have been invested in treasury bonds.
Generally speaking, government debt increases as a result of government spending, and it decreases from taxes or other revenue, which fluctuates during the fiscal year.
Throughout history, the United States’ public debt has been a share of GDP, increased during wars and recessions, and then decreased. The debt-to-GDP ratio may decrease as a result of government surplus or because of GDP growth and inflation.
In recent decades, aging demographics and rising health care costs have caused concern about the long-term sustainability of the federal government’s fiscal policies, the total amount that the Treasury can borrow is limited to the US debt ceiling.
By September 30, the end of the fiscal year, American public debt will exceed 100% of US GDP, up from about 80% before the Corona virus crisis.
Because of the Corona virus pandemic, Congress enacted, at the request of President Trump, the Corona Virus Assistance and Economic Security (CARES) Act on March 18, 2020. The responsible Federal Budget Committee estimated that the budget deficit for fiscal year 2020 would reach 3.8 trillion, the highest in US economic history.
As is well known, the mechanism of America’s treatment of public debt came in a report from the IIF International Institute on November 15, 2019 that global debt, which became $ 255 trillion, an increase of $ 70 trillion by the end of the year. These increases were paperless US dollar presses, as global debt increases 220% of global gross domestic product and the same treatment method is used by America to process today, where the economic, financial, and political system cannot continue in this way. And that the trillions of American presses for dollars bring those dollars from the air and enter the global debt bubble that will explode, and so these dollars return to the air from where they came, and thus ends the play of the virtual financial system that made the global economy intrusive of the productive economic system.
Trade war between America and China:
According to the clear data of the researcher of the current situation, it indicates an increase in complexity, as Donald Trump will be re-elected as President of the United States of America, which will cause deepening trade wars with China and destroy the existing trade alliances, and this will be reflected on the economy of the United States and the economies of the world as a whole.
What could lead to a decrease in international trade, and thus to a decrease in total global consumption, and the ever-growing psychological expectations for the end of the unprecedented growth of the global economy, which could lead to a decrease in lending and investment and Consumption, where a number of active economic institutions are taking increasingly cautious positions and actions.
According to economists, China and its closest neighbors in the Asia Pacific region will be affected, as instability in the West and unpredictable US policy will undermine European economic growth, and the worst situation in global economies will be in Southeast Asia, while the situation will A little better in the super powers, but because of the globalization of the global economy, the whole world will be affected, but to varying degrees.
As for the financial losses recorded in early March 2020, the European stock exchanges decreased by 20-23%, which is much worse than the general situation, and over the past three weeks, the exchanges in Germany and France lost 33%, in the United Kingdom 30% , The United States 26%, Japan 28%, meaning that the past three weeks witnessed the destruction of stock growth that occurred over the past 4-10 years.
The US Central Bank also pumped $ 1.5 trillion during the March 12 and 13 days, which is to aid the collapse of the stock market, and the US Central Bank promised to become what will be pumped until the end of this month, 4 trillion dollars. And the volume of dollars circulating in the world rose to 4.2 trillion dollars, meaning that the number of dollars circulating in the world during 3 weeks may nearly double without a corresponding increase in the volume of goods, which will increase inflation significantly.
Against this background, the strengthening of currencies that represent investment harbors will further reduce the competitiveness of American and European goods, which will deal a strong blow to the industries there, and the balance of trade deficits will rise in the United States of America, Britain and others. The government budget deficit will also increase. Indeed, the scale of the current trade wars will appear as a game in the sand in relation to the wave of customs duties and embargoes, which will be a fatal blow to world trade.
In short, the collapse of globalization will become more visible, more random and out of control. After the collapse of world trade, the stage of declining gross domestic product will come more to most of the countries of the world, then in those countries that have printed trillions of dollars in the framework of the “quantitative easing” policy, where the massive inflation phase, which will eliminate the rest of the national industries, will begin. At that moment, the dollar will become a worthless paper, but the developing countries will be in a more difficult and tragic situation.
In this way, the dollar after the initiation of “quantitative facilities” will fluctuate in relation to the currencies of Arab countries and other currencies of developing countries, then it will jump up as the crisis enters the critical phase, then it will be worthless, meaning that keeping the dollar will be a profitable matter at one time However, only gold will eventually retain its value.
Economic Studies Unit
Links Center for Research and Strategic Studies link