IRAQ PILES UP SURPLUS AS U.S. DEBT DEEPENS
CNN - Iraq is raking in more money from oil exports than it is spending, amassing a projected four-year budget surplus of up to $80 billion, U.S. auditors reported y. Oil accounted for 94 percent of the Iraq's revenue from 2005 to 2007, a U.S. report says. Leading members of Congress, noting that Washington is paying for reconstruction in Iraq, expressed outrage at the assessment. One called the findings "inexcusable."
"We should not be paying for Iraqi projects while Iraqi oil revenues continue to pile up in the bank, including outrageous profits from $4-a-gallon gas prices in the U.S.," said Sen. Carl Levin, the chairman of the Senate Armed Services Committee. "We should require that U.S. taxpayers be reimbursed for the cost of large projects."
3 Comments:
80 billion dollar surplus over four years? Oh, yeah. That should make a big freakin' difference to them. Maybe average Iraqis can get 3 hours of electricity a day instead of one!
If you're lookin' for the jack, you might check snarlin' fatboy's account(reminds you of Wizard of Oz, doesn't it? Cheney the Tin Man's lookin' for a heart and he'll buy a new one with your money).
The petro-dollars are finally starting to pile up.
Problem is they only buy about half of what they would have four years ago---a dilemma, one would imagine, that confronts the other members of OPEC, as well.
Unlike Iraq, the other member nations of OPEC have the economic clout to drive the short term value of the international dollar anywhere they want it.
So, with an inundation of half-rate dollars, it would be only logical to sit on them and watch them accumulate for as long as one could get away with it. Then, at the appropriate time, shift to what appears to be a long position on dollars US, establishing an illusion of renewed confidence in the currency. The market will respond accordingly. With the value of the international dollar thus driven temporarily up, one then converts their cache of dollars into the more stable EURO.
Such a plan could be devastating for the real long term prospects of the dollar, and by extension, the United States.
There are many ways to neutralize an adversary.
Fundamental to the art of self-defense is knowing how to redirect an opponent's strength back upon them.
And on it continues...
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