BGG ~ Ok – so stop and think about this for a sec…

Iraq’s 2015 Budget was roughly 119 Trillion IQD…

Today is June 14th 2015 – almost EXACTLY half way thru the year…

The other day they went public with their “true deficit” as 30% the budget… (of 119 Trillion IQD) – in other words more like 40+ Trillion IQD (roughly all of their currency in circulation is their deficit – JUST THIS YEAR – or 40 Billion USD).

I have been saying this – right?? The deficit was waaaaaaay more than 25 Trillion (IQD)

50% of their budget is likely GONE half-way thru the year

Surely they have spent the full budget allocation during the first half of the year…

So they probably have only 20% of their budget left (of 119T IQD) to cover 50% of the remaining year…

At a current rate of a bit over 10 Trillion IQD per month… they have a tiny bit over 2 months before they run out of money completely.

They aren’t like the US where we turn on the printing presses and have a “QE1, QE2, QE3″ and make wealth out of thin air.

So where will it come from??

This is the question… and has no one bothered to read the fine print on the loan articles??

They aren’t even close to actually getting the assistance – and even if they were, the loans were only for like 833 million USD… 9 million USD (grant)… 5 billion USD (if they GET a credit rating and their bond issues sell… lots of “if’s”)… and not until well past July… Further, it really has the feel they are being slow walked. After all the “good will” Abadi got during his visit to DC – it appears there was an “IF” he didn’t hear or hasn’t “ponied up” with yet. IF you do XYZ, we’ll give you XYZ…

Is anyone curious about the early August time-frame for Customs (tariffs)?

All those numbers put together aren’t even CLOSE to 40 Trillion IQD (and they may need more than that if oil prices keep falling)…

So – I ask the rhetorical – were do you think they will get 40 Trillion IQD in spending power between now and the end of the year??

The GOI needs buying power. They are in the same boat as us.

If they change the value of their currency – the GOI benefits greatly – just like you.

Their budget problem goes – POOF!! If they increase the currency value (even a little) the GOI benefits just like you – they have have the buying power they need for “internal projects”.

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