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Iraq Has $79 Billion Surplus — What's the US Deficit Again?

Wed, 08/06/2008 - 12:15pm by LibertySugar
344 Views - 10 comments

Thanks to rising oil prices, Iraq will enjoy a $79 billion surplus by the end of the year, according to a report requested by a bipartisan group of senators. While the US has spent $48 billion in American taxpayer money on Iraq's reconstruction since 2005, Iraq has spent only a fraction of its oil revenue on reconstruction projects. And, Iraq spent only 1 percent of its 2005-2007 budget to maintain existing projects already funded by Americans or Iraqis. Thus, preinvasion promises that Iraqi oil money would finance the rebuilding of Iraq have gone unfulfilled.

The Central Bank of Iraq cites a lack of expertise in Iraqi ministries along with security problems as reasons for the lack of spending. There seems to be a vicious cycle: Iraq can't use its money to increase security because there's not enough security.

Congressional Democrats have already called for Iraq to spend its own money on reconstruction. Since the US just predicted a record $489 billion deficit for 2009, hopefully Iraq's windfall surplus will be put to use soon. Should Americans struggling with rising oil prices be frustrated that Iraq is sitting on oil profits while America pays for the reconstruction?

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10 Comments Add a Comment

  • stephley's picture
    stephley
    1

    We can feel frustrated but I can't blame the Iraqis. They didn't ask us to invade their country and certainly didn't sign any waivers saying they'd pay for any damage the invasion caused.

    8 weeks 4 days ago Report Comment
  • True Song's picture
    True Song
    2

    But maybe they could give us a tip, just leave a few billion on the table for our trouble...

    8 weeks 4 days ago Report Comment
  • hypnoticmix's picture
    hypnoticmix
    4

    It will be used, it's only a matter of time. Things need to be sorted out and they are although be it slowly. This is a circumstance of our own making and I'm certainly not going to rake the Iraqi government over the coals for working under the terms dictated by the situation.

    8 weeks 4 days ago Report Comment
  • MartiniLush's picture
    MartiniLush
    5

    The sad thing is so many americans are going to be boiling mad about this, and saying that the Iraqis should "fix their own mess" (yeah, someone at work has already said this - groan!) without stopping to think that WE created this mess they are in in the first place.

    8 weeks 4 days ago Report Comment
  • zeze's picture
    zeze
    6

    What is even sadder ML is that Iraqis, the people, for the most part are poor, starving, can't go to school due to violence, live without electricity for the most part, and in the most ironic twist of all...they are in desperate need of gasoline for transportation and homes. They have to wait in line for hours just to get a tank in most areas.

    I dont want to get flagged by putting in the link, USA TODAY has an article on it "Gas shortage frustrates Iraqis, fuels black market"

    8 weeks 4 days ago Report Comment
  • stiletta's picture
    stiletta
    7

    I know this isn't a popular opinion, but I do believe Iraq will be better off in the future for what we've done and this to me is an indication of that.

    8 weeks 4 days ago Report Comment
  • zeze's picture
    zeze
    8

    I don't, not b/c I blame the war or Bush or any of that, but my understanding of the middle east and Iraq has led me to believe that the middle east is incapable of any sort of order. Either its dictators and kings who rule with an iron fist or it is complete termoil b/c no country can come together and self govern as a people.

    I put the blame on the way the high powers divided the ME into a ridiculous puzzle and the other part of the blame on the history and the effects of the border drawing which led to not one united group.

    8 weeks 4 days ago Report Comment
  • stiletta's picture
    stiletta
    9

    Zeze, are you saying that the people in the Middle East are incapable of ruling themselves?

    8 weeks 4 days ago Report Comment
  • zeze's picture
    zeze
    10

    I don't want to be too politically incorrect, so I'll say yes and no. Yes, they can not rule themselves the same way "the people" of other countries rule themselves but that largely due to the make up of the middle east.

    Democracy or any type of government where the people have a say in the matter have succeeded where there is come unity or understanding among the people - France is "french" for lack of a better term, Britain (their recent gov, not their monarchs) was formed with the rich nobles who all shared similar lineage and backgrounds.

    The ME, mostly b/c of what these great powers did, has no unity whatsoever to create any united "people" to self govern. Look at the ME in terms of race, some look African, some look African American, some look German/Aryan. Religion is just the same, part of the ME is jewish (jews and arabs are both "Semitics" and they can't tell each other apart in many instances), some are strict fundamentalist, some are as Muslim as Paris Hilton is Christan (Lebanon, Turkey) and some have all of that and more in the same cities (Baghdad for example has tons of liberal Muslims, strict sunnies and shias, and lots of catholics)....how on earth can such a mix of people come together and cooperate and compromise - especially since these differences have made them compete city and city country and country for the past eternity? Especially when each side has a rich and deep rooted culture and history, because of their many similarities but very distinct differences the ME has been a never ending tug of war between the groups each trying to show its dominance and hold on to its roots by dismissing the other side's roots.

    I just don't see how that area will ever resemble peace - the "people" aren't a "people" and when I say they can not govern themselves I dont mean that they are too violent or too stupid or too anything else...what I mean is that there is no "they" in the first place to rule - there are only lumps of groups thrust together, left to fight each other and kill each other off while the rest of the world gets as much as they can gain from their loss.

    8 weeks 4 days ago Report Comment

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