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Trump Slams Dems For “Defrauding The Public With Ridiculous Bullshit”

President Trump blasted Democrats during a rally Thursday that served as a victory party following the end of the 2 year plus witch-hunt over fantasy Russian collusion theories.

Trump was given a rock star welcome by an arena packed to the rafters with supporters:

“So the Russia hoax proves more than ever that we need to finish exactly what we came here to do: Drain the swamp,” Trump said to frantic applause.

Trump didn’t hold back, telling Democrats that they need to “decide whether they will continue defrauding the public with ridiculous bullshit, partisan investigations, or ways they will apologize to the American people and it join us to rebuild our crumbling infrastructure.”

Trump devoted an extended time of his speech to declaring “the Russia hoax is finally dead”.

“The collusion delusion is over.” The President declared, adding “The special counsel completed its report and found no collusion and no obstruction. I could have told you that two-and-a-half years ago very easily. Total exoneration, complete vindication.”

“You know, it’s interesting. Robert Mueller was a god to the Democrats,a god to them, until he said there wasn’t any collusion. They don’t like him so much right now.” Trump added.

The President also blasted the media, saying that “the crazy attempt by the Democrat Party and the fake news media right back there, and the deep state to overturn the results of the 2016 election have failed.”

“This was nothing more than a sinister effort to undermine our historic election victory and to sabotage the will of the American people.” Trump exclaimed.

“We defeated a very corrupt establishment, and we kept our promise to the American people, and it’s driving them craaazzy,” Trump said to the raucous crowd, describing opposition to his presidency as a “disgusting cloud”.

“This group of major losers did not just ruthlessly attack me, my family and everyone who questioned their lies. They tried to divide our country to poison the national debate and to tear up the fabric of our great democracy, the greatest anywhere in the world. They did it all because they refused to accept the results of one of the greatest presidential elections, probably number one in our history.” The President urged.

“Many, many people were badly hurt by this scam, but more importantly, our country was hurt. Our country was hurt. And they’re on artificial respirators right now. They are getting mouth-to-mouth resuscitation.” Trump added.

The president added that everyone who “perpetuated the single greatest hoax in the history of politics, they have to be — I’m sorry — they have to be accountable.”

The wild crowd joined in with chants of “lock them up”.

Watch the entire speech here:

Source: InfoWars

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Woman In ICE Custody After Attacking Man Wearing MAGA Hat In Mexican Restaurant

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Source: InfoWars

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Fed looks to avoid crossed signals at policy meeting

Federal Reserve Board Chairman Jerome Powell holds a news conference after a Federal Open Market Committee meeting in Washington
FILE PHOTO - Federal Reserve Board Chairman Jerome Powell speaks during his news conference after a Federal Open Market Committee meeting in Washington, U.S., December 19, 2018. REUTERS/Yuri Gripas

March 17, 2019

By Trevor Hunnicutt and Ann Saphir

NEW YORK/SAN FRANCISCO (Reuters) – Only two things will really matter when Federal Reserve Chairman Jerome Powell strides to the podium for his press conference on Wednesday after the end of the U.S. central bank’s latest two-day policy meeting: Dots and bonds.

That Powell and his colleagues will leave the Fed’s benchmark overnight interest rate unchanged in a range of 2.25 percent to 2.50 percent and stick to their pledge of a “patient” approach to monetary policy is effectively a given.

The big reveal, though, will be whether policymakers will have sufficiently lowered their interest rate forecasts to more closely align their notorious “dot plot,” a diagram showing individual policymakers’ rate views for the next three years in little blue-shaded circles, with that pledge of patience.

And, just as importantly, what new details will they share on a plan to stop culling the Fed’s holdings of nearly $3.8 trillion in bonds?

“It’s going to be new information for the market to trade whether it’s the Fed’s intention or not,” said Ben Jeffery, a strategist at BMO Capital Markets.

Dissatisfaction with Powell’s remarks in December regarding the balance sheet threw markets for a spin and helped lead to the Fed’s pause on rates a month later. Since then, the Fed chief has explicitly said one of his aims is to avoid “needless market disruptions.”

Traders currently expect there will be no rate hikes this year, and are even building in bets for a rate cut in 2020. Any gap between that view and the Fed’s could send markets lower. So too could a sharp drop in policymakers’ rate-hike expectations, especially if coupled with a softer economic outlook.

(Graphic: Federal Open Market Committee target rate projections – https://tmsnrt.rs/2UCRTe1)

Wrong or confusing signals on either the rate forecasts or the Fed’s bond portfolio could upend the market calm the central bank in large part has engineered despite nosediving economic forecasts.

Making Powell’s task even harder: A jumble of economic data, including a sharp slowdown in jobs growth last month that was accompanied by rising wages.

Uncertainty on the outlook for the world economy and global trade as well as a sharp U.S. growth slowdown expected by a range of forecasters mean that markets are on a hair trigger for signals from the Fed.

FED’S GUIDANCE

In January, the Fed pivoted from hiking rates quarterly to pledging patience before making more moves. Powell has also said the central bank could stop shedding bonds this year.

The central bank’s last official policy statement https://www.federalreserve.gov/newsevents/pressreleases/monetary20190130a.htm offered no hint about whether rates will rise or fall. The statement from the March 19-20 meeting is likely to do the same.

Asked if they would support rate hikes this year, Fed policymakers have been offering less information.

“Patience is basically saying we’re not going to give a lot of guidance to what we’re expecting down the road because there’s enough uncertainty that we just have to see how things evolve,” Boston Fed President Eric Rosengren told a National Association of Corporate Directors chapter on March 5.

But guidance is exactly what the Fed offers in its Summary of Economic Projections slated for release alongside the policy statement on Wednesday. That document could show the central bank expecting a rate hike if the economy delivers the strong 2019 growth most policymakers still forecast.

Some Fed officials voiced concern at the Jan. 29-30 policy meeting that the projections could send a misleading statement about what the central bank is doing, according to the records https://www.federalreserve.gov/monetarypolicy/fomcminutes20190130.htm from that meeting. Powell warned on March 8 https://www.federalreserve.gov/newsevents/speech/powell20190308a.htm against reading too much into the forecasts.

So far, the Fed’s on-guard and guarded communication has given markets new confidence. A gauge of swings expected in U.S. government bond prices over three months hit its lowest levels in 17 years. Stock markets have reacted as well, with the S&P 500 index up more than 12 percent this year.

With little sign of an inflation pickup, there would seem to be no urgency to raise U.S. borrowing costs, and investors have all but written off the possibility of a hike this year, especially with signs that slowing European and Chinese growth might weigh on the United States.

BALANCE SHEET

Meanwhile, the Fed faces pressure to elaborate on piecemeal statements that it will stop cutting bond holdings this year.

The Fed bulked up its books with bank reserves in order to buy trillions of bonds and further stimulate the economy once rates neared zero in the aftermath of the 2008 global financial crisis. To restore policy to normal, the Fed began shrinking its balance sheet in late 2017 by not replacing as many bonds when they mature.

Now, with the central bank ending that process, Fed policymakers face a number of questions. Some, for instance, have said they would not want the balance sheet policies, which might tighten financial conditions, to work at cross-purposes with the more cautious rate policy.

(Graphic: Federal Reserve bond holdings – https://tmsnrt.rs/2UD2oOr)

New York Fed President John Williams told Reuters earlier this month that “there is no clear answer” to exactly how large the balance sheet needs to be. Investors will be looking for answers as soon as this week. Powell is likely to be pressed on the subject at his press conference on Wednesday.

Cliff Corso, executive chairman at investment manager Insight North America LLC, said markets are looking for “confirmation and comfort” about their assumptions about the size and composition of the Fed’s assets. “Any deviations around that might create a little bit of volatility,” he said.

(Reporting by Trevor Hunnicutt in New York and Ann Saphir in San Francisco; Editing by Paul Simao)

Source: OANN

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Drones to deliver vaccines, blood and drugs across Ghana

A woman packs a box of vaccines to be delivered by a Zipline drone, in Ghana
A woman packs a box of vaccines to be delivered by a Zipline drone, in Ghana April 22, 2019. Gavi/2019/Isaac Griberg/Handout via REUTERS

April 24, 2019

By Kate Kelland

LONDON (Reuters) – Hundreds of drones will begin delivering life-saving vaccines, blood and medicines to patients in Ghana this week in the largest scheme of its kind, the global vaccine alliance GAVI said on Wednesday.

Medics will place orders by text message when supplies run dry, said GAVI chief executive Seth Berkley.

Drones will then fly in from four distribution centers, hover over health posts and drop deliveries using tiny parachutes.

“The idea is that these four distribution centers can make up to 600 on-demand delivery flights a day,” Berkley told reporters in a telephone briefing. “And that can expand up to 2,000 (a day) over time.”

The aim is for deliveries to arrive within 30 minutes, Berkley added, meaning emergency treatments such anti-snake venom or rabies shots could arrive in time to save lives.

The project – led by Zipline, a California-based robotics company – is designed to deliver to around 2,000 health facilities serving 12 million people across the west African country.

It is backed by the non-profits GAVI and the Bill & Melinda Gates Foundation, as well as several companies including the parcel delivery firm UPS and the pharmaceutical giant Pfizer.

Up to 12 routine and emergency vaccines will be available, including shots for yellow fever, polio, measles, meningitis and tetanus, as well as 148 blood products and other critical medicines. The drones fly autonomously and can carry up to 1.8 kilograms of cargo, GAVI said.

Zipline said a similar but smaller project had made more than 13,000 deliveries of blood products since it was launched in Rwanda in 2016 – about a third of them for emergency life-saving treatment.

(Reporting by Kate Kelland; Editing by Andrew Heavens)

Source: OANN

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Ilhan Omar raises nearly $1M after controversies, tops other progressive Dems like AOC, Tlaib

Embattled Minnesota Democrat Ilhan Omar is beating other House Democrats by raising nearly $1 million, despite a series of anti-Semitic controversies that plagued the first three months in office.

Omar, who continues to face a controversy over comments in which she appears to describe the September 11, 2011 terror attacks as “some people did something,” has proven to be able to monetize in the wake of a backlash.

TRUMP BLASTS PELOSI, OMAR AFTER 9/11 VIDEO CONTROVERSY

According to Federal Election Commission filing on Monday, Omar raised $832,000 in the first quarter this year, a figure that is among the best compared to other Congressional Democrats.

By comparison, Rep. Alexandria Ocasio-Cortez, who’s been pushing the party leftwards, raised $725,000 in the first quarter – more than $100,000 less than Omar.

Rep. Rashida Tlaib, another progressive, raised $316,000, which is over half a million dollars less than Omar.

In February, Omar drew bipartisan uproar after suggesting that politicians in the U.S. were bought by AIPAC, a non-partisan organization that seeks to foster the relationship between the U.S. and Israel.

“It’s all about the Benjamins baby,” Omar wrote in a now-deleted tweet, suggesting the group pays U.S. politicians to support Israel. AIPAC denied Omar’s claims that they fund politicians.

ILHAN OMAR'S ISRAEL TWEETS THE LATEST IN LONG LINE OF CONTROVERSIAL COMMENTS

“Congresswoman Omar's use of anti-Semitic tropes and prejudicial accusations about Israel's supporters is deeply offensive.”

— House Speaker Nancy Pelosi

Omar issued an apology but reiterated a “problematic role of lobbyists” in politics, particularly AIPAC as well as the NRA and fossil fuel industry.

Just weeks later, Omar reignited the controversy once again, this time saying that supporters of Israel were pushing for U.S. politicians to declare “allegiance” to that nation.

“I want to talk about the political influence in this country that says it is OK for people to push for allegiance to a foreign country,” Omar said. “I want to ask why is it OK for me to talk about the influence of the NRA, of fossil fuel industries, or big pharma, and not talk about a powerful lobbying movement that is influencing policy?”

“I want to talk about the political influence in this country that says it is OK for people to push for allegiance to a foreign country.”

— Rep. Ilhan Omar

CLICK HERE FOR THE FOX NEWS APP

The FEC records show that Omar received over $415,000 from people who gave her less than $200. She also received larger donations from other Democrats, including from Ocasio-Cortez who gave her $2,000.

House Majority Whip Jim Clyburn, who caused a controversy of its own after defended Omar by saying that her experience was “more personal” than Jews whose parents survived the Holocaust, also donated $1,000 to Omar.

Source: Fox News Politics

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Pivotal New Hampshire primary may come down to Sanders versus Warren

Democratic 2020 U.S. presidential candidate Warren speaks at Plymouth State University in Plymouth
FILE PHOTO: Democratic 2020 U.S. presidential candidate and U.S. Senator Elizabeth Warren (D-MA) speaks at Plymouth State University in Plymouth, New Hampshire, U.S., February 23, 2019. REUTERS/Brian Snyder

February 25, 2019

By James Oliphant

PLYMOUTH, N.H. (Reuters) – Bernie Sanders’ entry into the 2020 presidential race has complicated fellow liberal Elizabeth Warren’s bid for the Democratic nomination, a path that runs straight through New Hampshire.

Sanders, a U.S. senator from neighboring Vermont, retains a strong following in the state where he trounced Hillary Clinton by more than 20 percentage points in the 2016 presidential contest.

An Emerson College opinion poll of New Hampshire voters released on Saturday showed Sanders to be the top choice of respondents with 27 percent of the vote. Warren, a senator from neighboring Massachusetts, was far behind at 9 percent – a worrisome number given many New Hampshire voters are familiar with her.

But as Warren, 69, returned to the early voting state over the weekend for the second time this month, there were signs she could be chipping away at Sanders’ support a year before the New Hampshire primary election.

Some New Hampshire residents who voted for Sanders last time told Reuters they now were leaning toward Warren. Some said the 77-year-old Sanders’ political window had closed. Others said they wanted to see a female nominee.

“Bernie lost his shine,” said Candace Moulton, 36, who attended Warren’s campaign event in Manchester, New Hampshire. “I think we’re really ready to have a woman president, to be frank.”

New Hampshire often has been where presidential aspirations are solidified. While the Iowa caucuses serve as the first test of a candidate’s strength, New Hampshire holds the first party primary, and has been a state where a contender can build momentum, salvage a campaign or reach the end of the road.

Ten Democrats have already declared their candidacy for the party’s nomination, and more are expected to join the contest. The winner will likely face Republican President Donald Trump in the general election in November 2020. [nL1N20E0EH]

New Hampshire’s primary traditionally has favored candidates with ties to the region, making it important for Sanders and Warren to target. Both are progressives with similar policy platforms that include providing universal health care coverage and raising the minimum wage.

Dante Scala, a professor of political science at the University of New Hampshire, said he expects the presidential field to narrow significantly by the time the primary comes.

“There’s a good likelihood that New Hampshire will be framed as a Sanders-Warren competition with one ticket out,” he said.

Should Warren fail to win Iowa, New Hampshire becomes a “must-win,” Scala said. “It’s hard to see her lasting if she can’t win here.”

Former Vice President Joe Biden could muddy things further if he mounts a bid. Biden placed second in the Emerson poll, and his high name recognition with voters could give him a boost.

FRIENDLY TERRITORY

Warren campaigned in New Hampshire as if she were a local.

“You guys know me,” she told a gathering of 1,000 state party leaders and activists in Manchester on Friday. She followed up by speaking to a full hall in Plymouth on Saturday.

On this swing, Warren played up her personal story over policy, talking about her family’s struggles growing up in Oklahoma and the challenges she faced as a young mother.

After the Plymouth event, Nancy Chandler, 84, said Warren won her support with a fiery speech where she talked about wanting “big, systemic change” and fighting for the middle class.

“I think the bus has passed,” Chandler of Warren, New Hampshire, said of Sanders.

Liz Alcauskas, 74, of Manchester, said many of Sanders’ ideas were important, but she planned to vote for a different Democrat in next year’s election.

“I would like to not have an old, white man be president,” she said. “It’s someone else’s turn now.”

Even some of Sanders’ most loyal supporters are unsure of him this time. Andru Volinsky, a member of Sanders’ 2016 steering committee in the state, said “my first inclination is towards Bernie, but I haven’t ruled out a handful of others.” 

The home-field advantage enjoyed by Sanders and Warren has sparked speculation that other candidates may compete less intensely in New Hampshire, focusing instead on other early states.

Senator Kamala Harris of California made her first campaign trip to the state earlier this month and insisted she would be an active presence there. But she had made a point of visiting South Carolina, with its large swath of African-American voters, before New Hampshire.

Harris likely will also concentrate on gaining the majority of support from the millions of voters in her home state, which has its primary in early March but will allow early voting to begin around the time of the New Hampshire contest.

Raymond Buckley, chairman of the New Hampshire Democratic Party, said other candidates cannot afford to write the state off.

“In 2020, we have such an immensely diverse group of candidates, in every sense of the word, that it’s dangerous to make any assumptions about how the primary will turn out,” Buckley said.

There remains room in the state for Warren’s support to grow. Her Plymouth event was filled with undecided voters.

“I feel very wide open right now. I feel like I could support anyone,” said A.J. Coppola, 32, from Thornton, New Hampshire. “I’m inclined to the person who is really passionate, who feels like they have energy behind them.”

(Reporting by James Oliphant; Editing by Colleen Jenkins and Grant McCool)

Source: OANN

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Sexism still an issue, says Parton, as ‘9 to 5 the Musical’ opens

West End debut of Dolly Parton's '9TO5 The Musical' at the Savoy Theatre, in London
Dolly Parton arrives for the West End debut of Dolly Parton's '9TO5 The Musical' at the Savoy Theatre, in London, Britain February 17, 2019. REUTERS/Peter Nicholls

February 18, 2019

LONDON (Reuters) – Nearly 40 years after playing a secretary who takes revenge on her sexist boss in “9 to 5”, Dolly Parton again beat the drum for gender equality at the West End premiere of a musical version of her hit 1980 movie.

The country superstar joined the cast of “9 to 5 The Musical” for the curtain call at the end of Sunday’s official opening performance in London.

She hoped the show would help shine a light on sexual misconduct and gender inequality which, as the #MeToo and #TimesUp movements have shown, remain issues of concern in entertainment and other industries.

“It (the film) really paved the way and things did change but there’s still a lot more to be done,” she told Reuters on the red carpet ahead of the show. “With … people drawing attention again to equal pay, equal work, harassment in the workplace, this is just another good way for us to shine a light on some things that need to be lit up a little.”

The multiple Grammy winner also confirmed there will be a “9 to 5” movie sequel, starring the original cast – herself, Jane Fonda and Lily Tomlin – alongside some “new young girls”.

Bookings for the musical at London’s Savoy Theatre are being taken through to August.

(Reporting by Emily Roe; Editing by John Stonestreet and Peter Graff)

Source: OANN

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Venezuela's Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas
Venezuela’s Foreign Affairs Minister Jorge Arreaza talks to the media during a news conference in Caracas, Venezuela April 8, 2019. REUTERS/Manaure Quintero

April 26, 2019

WASHINGTON (Reuters) – The U.S. Treasury Department on Friday imposed sanctions on Venezuela’s foreign minister and a Venezuelan judge, according to a statement on the department’s website.

Foreign Minister Jorge Arreaza and a judge, Carol Padilla, were targeted over the ongoing crisis in Venezuela, the Treasury Department said, the latest in a list of officials blacklisted by U.S. authorities for their role in President Nicolas Maduro’s government.

(Reporting by Susan Heavey, Makini Brice and Lesley Wroughton; Editing by Chizu Nomiyama)

Source: OANN

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Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of
Avengers fans gather at the TCL Chinese Theatre in Hollywood to attend the opening screening of “Avengers: Endgame” in Los Angeles, California, U.S., April 25, 2019. REUTERS/Mike Blake

April 26, 2019

LOS ANGELES (Reuters) – Marvel Studios superhero spectacle “Avengers: Endgame” hauled in a record $60 million at U.S. and Canadian box offices during its Thursday night debut, distributor Walt Disney Co said.

Global ticket sales for the film about Iron Man, Hulk and other popular characters reached $305 million for the first two days, Disney said.

(Reporting by Lisa Richwine; Editing by Chizu Nomiyama)

Source: OANN

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Funeral of journalist Lyra McKee in Belfast
Labour Party leader Jeremy Corbyn attends the funeral service for murdered journalist Lyra McKee at St Anne’s Cathedral in Belfast, Northern Ireland April 24, 2019. Brian Lawless/Pool via REUTERS

April 26, 2019

LONDON (Reuters) – The leader of Britain’s opposition Labour Party, Jeremy Corbyn, said on Friday he had turned down an invitation to a state dinner which will be part of U.S. President Donald Trump’s visit to Britain in June.

“Theresa May should not be rolling out the red carpet for a state visit to honor a president who rips up vital international treaties, backs climate change denial and uses racist and misogynist rhetoric,” Corbyn said in a statement.

He said maintaining the relationship with the United States did not require “the pomp and ceremony of a state visit” and he said he would welcome a meeting with Trump “to discuss all matters of interest.”

(Reporting by Andy Bruce; Writing by William Schomberg)

Source: OANN

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A bedridden 67-year-old woman and more than a dozen animals were rescued Thursday after a welfare check found that they were living in a home filled with trash, urine, and feces, Florida police said.

Pinellas County sheriff’s deputies said when they arrived at the home in Dunedin around 7:20 p.m. Thursday, they could smell the odor of rotting trash and animal feces as they walked up to the driveway.

“Inside the residence, the odor of feces and urine was so overwhelming that deputies had to don masks,” the sheriff’s department said in a statement.

FLORIDA SHERIFF ON BORDER CRISIS AFTER MAJOR DRUG BUST: ‘IT MAKES ME ABSOLUTELY CRAZY’

Walking throughout the residence, the deputies found 10 emaciated dogs and puppies living in bins filled with their own feces, five large Macaw birds flying freely, rats, bugs and overall squalor.

Puppies discovered living in their own feces inside a Florida home that was filled with trash, urine, and feces.

Puppies discovered living in their own feces inside a Florida home that was filled with trash, urine, and feces. (Pinellas County Sheriff’s Office)

Deputies said due to the large amounts of trash in the home, they had to clear a path to reach the victim’s bedroom.

“None of the home’s toilets were working and all were found to be overflowing with feces,” deputies said. “The only working sink was located on the opposite end of the house from the victim’s bedroom.”

They said there was no food or water for the victim or the animals.

FLORIDA MAN IN EASTER BUNNY COSTUME CAUGHT IN VIRAL BRAWL IS WANTED IN NEW JERSEY, HAS HISTORY OF ARRESTS

The victim was transported to a local hospital for injuries that were non-life threatening, while the animals were transported to shelters.

The woman’s caretaker, Richard Lawrence Goodwin, 65, was arrested and charged with abuse and neglect of an elderly person, disabled person, and cruelty to animals.

Richard Goodwin, 69, was arrested for abuse and neglect of an elderly and disabled person after deputies found she was living in deplorable conditions.

Richard Goodwin, 69, was arrested for abuse and neglect of an elderly and disabled person after deputies found she was living in deplorable conditions. (Pinellas County Sheriff’s Office)

The sheriff’s department said this was Goodwin’s second arrest for abuse and neglect of the same victim. He was previously arrested in May 2018.

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Neighbor Victoria Muenzerbeer told FOX 13 that Goodwin and the victim were hoarders and the conditions inside the home were horrible years ago when she visited once.

“I went in and it was absolutely, a human being couldn’t live there,” she said. “The kitchen wasn’t usable and part of the wall was falling in.”

Source: Fox News National

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Libyan Minister of Economy Ali Abdulaziz Issawi speaks during an interview with Reuters in Tripoli
Libyan Minister of Economy Ali Abdulaziz Issawi speaks during an interview with Reuters in Tripoli, Libya April 25, 2019. REUTERS/Hani Amara

April 26, 2019

By Ulf Laessing

TRIPOLI (Reuters) – Libya’s U.N.-recognized government has budgeted up to 2 billion dinars ($1.43 billion) to cover costs of a three-week-old war for control of the capital, such as treatment for the wounded, to be funded without new borrowing, the economy minister said.

Ali Abdulaziz Issawi suggested the government hoped for business to continue more or less as usual despite the assault on Tripoli, in the country’s northwest, by forces tied to a parallel administration based in the eastern city of Benghazi.

Once Africa’s third largest producer of oil, Libya has been riven by factional conflict since the fall of Muammar Gaddafi in 2011, with the country now broadly split between eastern-based forces under Khalifa Haftar and the U.N.-backed government in Tripoli, in the west, under Prime Minister Fayez al-Serraj.

Still, with Haftar’s Libyan National Army forces unable so far to pierce defenses in Tripoli’s southern suburbs, normal life and business activities continue in much of the capital and western coastal towns.

Issawi, in an interview with Reuters in his Tripoli office, also said Libya’s commercial ports and wheat imports were still functioning normally, although some roads have been blocked.

He said the Serraj government estimates it will spend up to 2 billion dinars extra on medical treatment for wounded, aid for displaced people and other “emergency” war costs.

He said this was not military spending but analysts believe that the sum will also cover expenditures such as pay for allied armed groups or food for fighters.

“We could actually spend less,” he added, in comments that gave the first insight into the economic impact of the fighting.

Issawi said the Tripoli government, which controls little territory beyond the greater capital region, would not incur new debt to fund the war costs, sticking to a plan to post a 2019 budget without a deficit.

Tripoli derives revenue largely from oil and natural gas production, interest-free loans from local banks to the central bank, and a 183 percent surcharge on foreign exchange transactions conducted at official rates.

But with centralized tax collection greatly diminished, public debt has piled up – to 68 billion dinars in the west, including unpaid state obligations such as social insurance.

Some analysts expect Serraj’s government will be forced to raise new debt if the war for control of Tripoli drags on.

With much of Libya dominated by armed factions that also act as security forces, the public wage bill for both the western and eastern administrations has soared as fighters have been made public employees in efforts to buy their loyalty.

The east has sold bonds worth 35 billion dinars outside the official financial system as the Tripoli central bank does not fund the parallel government apart from some wages.

Despite its limited reach, the Tripoli government still runs an annual budget of around 46.8 billion dinars, mainly for public salaries and fuel subsidies.

“This year we cannot finance via debt…we will not borrow (by agreement with the central bank),” Issawi said.

According to International Monetary Fund data, Libya’s central government debt-to-GDP ratio is 143 percent, making it one of the most heavily indebted in the world on that measure.

Issawi declined to say what parts of the budget would be trimmed to support the extra outlay for war costs.

However, with some 70 percent of the budget allocated to public wages, fuel subsidies and other welfare benefits, a portion devoted to infrastructure is most likely to be axed.

Widespread lawlessness has meant there have been no major infrastructural projects since 2011, when a NATO-backed uprising overthrew dictator Muammar Gaddafi, leaving schools, hospitals and roads in acute need of restoration.

FOREX SURCHARGE

Issawi said the government planned to raise as much as 30 billion dinars by the end of 2019 from hard currency deals after imposing in September a 183 percent surcharge on commercial and private transactions done on the official rate of 1.4 to the U.S. dollar. That fee has effectively devalued the official rate to 3.9, much closer to the black market equivalent.

Some 17 billion dinars have been raised since then, with hard currency allocated for import credit letters now issued without delays, Issawi said. The forex fee has helped the government forecast a budget in the black for 2019.

Despite the narrowing spread between the two rates, the black market continues to thrive. Dozens of traders remained at their favorite spot behind the central bank headquarters in Tripoli when Reuters reporters visited it last week.

But traders said it could take time for the Serraj government to register the extra forex receipts as official banking channels were taking up to six months to approve import financing, keeping the black market in play for dealers.

Issawi said authorities planned to lower the forex fee from 183 percent, without saying when. The black market rate has dropped from 6 to around 4.1 since September but it has hardly moved of late as demand for black market cash remains high.

The Tripoli government has stopped subsidizing food and bread, which used to be cheaper than drinking water in Libya. Wheat imports are now being arranged by private traders and there are surplus stocks of flour at the moment, Issawi said.

(Reporting by Ulf Laessing in Tripoli with additional reporting by Karin Strohecker in London; Editing by Mark Heinrich)

Source: OANN

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