The Geopolitical Impact of Cheap Oil. By Martin Feldstein *
[tlm724] Iraq has delayed the budget not only to try and include the requirements of the Kurds but mainly because of the fluctuation in oil prices. Trying to calculate a number that will work for them.
[tlm724] oil has fallen more than 25% in the past five months, to less than $80 a barrel
[rsp1] That's huge
[tlm724] yes shows how this impacts Iraq
[tlm724] If it falls further, as seems likely, the geopolitical consequences on some oil-producing countries could be dramatic
[rsp1] I agree Especially for a country trying to get on it's feet
[tlm724] exactly and supply and demand will dictate the prices however demand is down
[tlm724] Today’s oil price is also linked to anticipated future interest rates. More specifically, oil producers have an investment choice:
They can increase production now, selling the additional oil at today’s price and investing the proceeds at the existing long-term interest rate, or they can leave the oil in the ground as an investment.
Although Saudi Arabia and several of the Gulf states are also major oil exporters, they differ from other producers in two important ways. First, their cost of extracting oil is extremely low, which means that they will be able to produce profitably at the current price – or even at a much lower price.
Second, their enormous financial reserves allow them to finance their domestic and international activities for an extended period of time, as they seek to transform their economies to reduce their dependence on oil revenue.
[tlm724] as they seek to transform their economies to reduce their dependence on oil revenue.
[tlm724] Iraq is a different animal in the game though, terrorism and bombing have damaged some of the oil infrastructure and they need to repair that and also build more refineries etc... so they have their hands full
[tlm724] A further decline in the price of oil could have major geopolitical repercussions. A price of $60 a barrel would create severe problems for Russia in particular.
President Vladimir Putin would no longer be able to maintain the transfer programs that currently sustain his popular support. There would be similar consequences in Iran and Venezuela.
[tlm724] its hurting all the oil producing countries not just Iraq, the timing stinks lol
It is not clear whether these countries’ current regimes could survive a substantial and sustained future decline in oil prices. By contrast, it is obvious that oil-importing countries would benefit greatly – as they already are.
[tlm724] this just gives us an example how the oil prices have a very direct impact on Iraq and the calculation of their budget and why at this time it is so difficult
The responsibility of banks
[tlm724] Iraq marked a turning point whatever in the history of the Iraqi banking because he was truly a real calendar pause to the reality of the banking sector in general *hallelujah*
[tlm724] love turning points
[tlm724] in particular, private banks being held at an important stage of implementing the contents of the government program.
[tlm724] implementing the contents of the government program, yeah baby
[tlm724] Messages sent by Abadi to bankers that it is time they set about rebuilding Iraq guaranteed legislative support of the state institutions
[tlm724] bring on those laws !!!
[rsp1] yes !!!!!
[tlm724] this wonderful transformation.
[tlm724] puts Association also in greater responsibility as the legitimate representative of the banking sector.
[tlm724] CBI is making the moves to include the private banks to further the whole of the country !
It's part of the economic plan and without a doubt part of the requirement to go into Article 8 of the IMF regulations !
[tlm724] to involve the private sector in making decisions that concern the economic development process
[tlm724] we will find a direct private banks efforts to attract the participation of the heads of the funds, and companies with a long history of such investment opportunities
[tlm724] Thus, a new challenge borne by the banks under the wow achieved Conference, precious rare opportunity will not be repeated.
[tlm724] wow is right !
[rsp1] and will not be repeated!
[tlm724] the timing of this conference is incrediable when you think about the economic plan from Abadi, many things that make you go hmmmmm Shabib back in town, Saleh as economic advisor, private banking sector being activated, new banking laws to be presented .... makes me warm and fuzzy
[tlm724] cat yeppers hmmm
[cstacy] now thats the cats meow
[tlm724] cstacy lol true enough
A low-cost financing to do strategic projects
[tlm724] Banking Conference which has been under the auspices of Prime Minister Dr. Haider al-Abadi to expedite the approval of the Deposit Insurance Act in order to increase confidence in banks and raise the proportion of savings,
[tlm724] to expedite the approval of the Deposit Insurance Act, thats just like our FDIC
[tlm724] as well as prompt members of the House of Representatives passage of paper the banking and financial sector reform, which has already been prepared by the parliamentary session
[tlm724] *hallelujah* we are on our way
[tlm724] they are gonna get that pushed through
[rsp1] I believe you're right timmy
[tlm724] meet with businessmen and government institutions are concerned by the investment
[tlm724] especially the two believe transition to an open market economy.
[tlm724] pending the issuance of Islamic banking law which will regulate it
[tlm724] the people trust those banks and will give their dinars for deposit
[tlm724] He concluded by referring to the formation of a committee of banks and financial institutions and non-governmental organizations concerned with the economy and economic figures to follow the recommendations.
[tlm724] so this confence seems to be putting the finishing touches on Abadi's program as well as a very loud call for the economic laws !
Linking mail and savings departments
[tlm724] completed the Ministry of Communications Hall (e-governance) to connect the postal services and savings unified system, as it seeks to open post offices in universities and institutes of the country
[tlm724] completed the work of Hall (e-governance) to be a center for complex electronic systems which are handled by the Directorate to provide services in line with the evolution in the field of e.
[tlm724] this is big because there is money to track from the post offices ! Linking centrally as stated above ! One unified system !
[tlm724] means the e-governance system is up
The fact that investment in Iraq
[tlm724] those days of non-investment will soon be over ^^^^
[tlm724] that is a one stop shop , one window where the investors find everything they need
[tlm724] We in the National Investment Commission recognize the importance and the role of investment in Iraq and what can be achieved by the transmission, the quality of the life of the Iraqi citizen who deserves to live the luxury of Okt.
[tlm724] the role of investment in Iraq and what can be achieved by the transmission, the quality of the life of the Iraqi citizen who deserves to live the luxury
[tlm724] Iraqi citizen who deserves to live the luxury, how they gonna do that ???
[tlm724] from the fight in fact, with all its challenges and the implications of our commitment to overcome them with great vigor and determination to reach the desired goals in providing the best services to the Iraqi citizen who is our hope and our hope
[tlm724] the investment law will open the flood gates ! and will give the Iraqi people all they deserve and then some
Deputies: Kurdish delegation wants to raise the "sanctions" from the budget in 2015 and will discuss the restructuring of the Department of Airports and Sumo region
[tlm724] the delegation of the Kurdistan Regional Government began extensive discussions and "positive" as soon as he arrived in Baghdad on Sunday morning, in order to put an end to chronic disagreements with the federal government *hallelujah*