LIQUID WEALTH A MIRAGE: Oil income not enough to cover the costs of rebuilding

San Francisco Chronicle ^ | April 12, 2003 | Carolyn Lochhead

[cgbg]

This socialist rag is incapable of understanding why the Iraq economy will be booming in a few years and will be the dominant economy of the Middle East for generations to come.

It is called capitalism. Let the Iraqi people free to use their talent and ingenuity and watch out!

Gloom and doom schemes are based on assuming the socialist command economy method of production and distribution of wealth. Private Iraqi citizens, not foreign governments, should own the oil wells of Iraq.

Hopefully they won't make the mistake of Germany and Japan and allow their riches to be depleted on stupid social welfare schemes.

[B4Ranch]

I opened the thread to see who this article was from; San Francisco Chronicle/Carolyn Lochhead. Well, there's no need to even read it to know her conclusions. Carolyn is not a well known economic analyst so I'll let this one slide.

[Free the USA]

A rather biased source but FYI.

[snooker]

>>>The Commies were wrong before...I guess they will be wrong again

It;s like watch the three stooges' perpetual door smack in the face routine.

[lewislynn]

Not enough oil money?

Iraq; American business' next cheap labor/industrial state.

[hove]

Since when was it America's/Bush's job to see that Iraq...or any other nation...get schools roads...etc. We got our regime change and stopped the threat of Saddam's WMD's. Our job is done. The Iraqi's are extremely fortunate to be sitting on their large oil reserves. At least they will have the resources to rebuild...as long as a stable..honest..government is formed. Let them solve their own problems. We are done....it is time for America to move on!

[bigfootbob]

Correct me if I'm wrong, but I thought we spent the past 4 weeks targeting military targets with our bombs. We didn't bomb Iraq's infrastructure back into Medieval age. Like Klintoon did in Kosovo.

We also surrounded and protected the oil fields. Me thinks libs like this are chronic whiners that like to spew forth BS. Perhaps, she's grooming her resume for a job at CNN.

[RightWhale]

"I think it's foolish to talk about looking to oil revenues to take care of all the needs of the country. That's just very misleading."

Alaska's oil production is about the same as Iraq's. There is no way oil revenues would produce a modern city the size of Bagdad in Alaska. Iraq needs something else, just as Alaska does.

[F.J. Mitchell]

We can build it back a lot less expensively than the original-no gold trimmed faucets, commodes, wash basins or deuche bowls.

[F.J. Mitchell]

We can build it back a lot less expensively than the original-no gold trimmed faucets, commodes, wash basins or douche bowls.

[blake6900]

Iraq sits atop the world's second-largest oil reserves. Yet oil will not come close to covering the immediate expenses of rebuilding its broken economy.

I look at it this way...if this nonsense were even remotely true liberals would have been shoving this down our throats from the get-go along with "The war will take years" and "Inspections are working".

The fact that they didn't proves they just came up with this when it became obvious they were wrong on all other accounts. And if this is the best they can do, they outta go back to Pelosi's "We could have knocked down that statue for a lot less." At least her statement was laughable. This is just BS...

[Carry_Okie]

More

[MeekOneGOP]

. . . the three stooges' . . .

[blake6900]

Alaska's oil production is about the same as Iraq's. There is no way oil revenues would produce a modern city the size of Bagdad in Alaska. Iraq needs something else, just as Alaska does.

Even if this statement is true it's helpful to remember Alaska has to contend with environmental regulations that do not exist in Iraq. Also, Iraq's oil production has been severely curtailed since the first Gulf War.

And finally, the climate in Alaska as well as the easier availability of oil in Iraq make this a comparison of apples and oranges.

[MeekOneGOP]

Well, it wasn't about oil at all. Except for the French and their SWEET Oil for Arms deal.

That aside, this I always found humorous, ignoring the 'It's all about Oil' insinuation . . .

Hehehe !! We've already done it !!

[Mike Darancette]

If Iraq would privitize its oil industry the could raise $1 Trillion Dollars almost immediately plus providing 10s of thousand of jobs.

[RightWhale]

the climate in Alaska

The weather climate in Alaska is immaterial; the major deleterious climate is political--environmental concerns. People cry themselves to sleep every night over the loss of the caribou calving grounds. Even though there's no such thing and the acreage isn't being lost. Point is, oil is 90% of the economy of Alaska, and a population of 600,000 is all we can manage on that. Maybe somebody else is getting rich off Alaska oil, it isn't Alaska.

[DannyTN]

Before the war Iraq was producing 2.4-2.5 million barrels of oil a day. At $25 a barrel that is $62.5 million per day or almost $23 billion annually. 10 years ago Iraq was producing 3.5 million barrels a day.

1998 Iraq's GDP was $56 billion. But of course this was with sanctions. Assuming they can get that up to $100 billion or higher in short order, with a $20% tax base for $20 billion in addition to $23 billion in oil revenues. Gives them $43 billion.

If they do have to pay down the 378 billion in existing debt, plus pay us for the rebuilding there may not be enough revenues to pay it down.

Bush is right about the debtors needing to write-off debt. Iraq just needs to default and start with a clean slate.

In addition, currently 67% of Iraq's 27 million people are dependent on aid to eat. As the Economy gets going again, assume that is reduced to 35% in short order. Therefore you still need to feed 13 million people who apparently can survive on $2 a day or $9.5 billion a year.

[WhiteGuy]

Shortsighted?

Perhaps.............................

However, taking into consideration today's rate of taxation and the largest annual deficit in history, I believe that AMERICANS deserve to get first consideration.

There will be generational fortunes made by the take-over of the Iraqi oil enterprise. I'd like to see US take our share for once.

As for the Marshall Plan, I think I should be the one who decides whom, if anyone I should loan money to.

[SauronOfMordor]

It is called capitalism. Let the Iraqi people free to use their talent and ingenuity and watch out!

Use the oil cash to finance roads, schools, and hospitals, but no welfare payments to the people on the street. Have there be no income taxes in Iraq, and provide a safe and stable environment to live, and you will see a flood of businesses and professionals coming into Iraq to set up shop