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

LibertySugar — Wed, 06 Aug 2008 12:15:00 -0700

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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More Money, Less Problems? Iraqi Officials Hand Out Cash

LibertySugar — Mon, 14 Jul 2008 03:00:41 -0700

Money can't buy me love, but can it buy peace? Iraq's Prime Minister Nouri al-Maliki wants to find out — he's passing out cash on the streets of Iraq. Iraqi officials can dole out up to $8,000, to each person only once, as a way to improve the national economy and morale. I guess your $600 surplus check isn't looking so generous now!

Usually getting smaller sums, under $1,000, most Iraqi recipients use the money to get medical care, or cope after a death in the family or job loss. American and Iraqi officials believe money and better conditions will ease extremism; but concerns about favoritism and corruption still remain.

Governments love giving out money these days! While American lawmakers reach for consumer spending (and their own approval) with stimulus cash (and $42 million of taxpayer money used to notify every American that the government might send them money), Iraq wants these funds to spark confidence, and signal upcoming massive oil-revenue investments in Iraq's basic services. Are you buying it?

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

More Money, Less Problems? Iraqi Officials Hand Out Cash