Three Bucks A Gallon May Save Iraq
Someone tell Cindy Sheehan, Michael Moore, and the KosKidz to quit driving– en masse.
The London Times reports:
…Iraq still has good economic prospects, thanks to the high price of oil, the International Monetary Fund said yesterday.
In its first assessment of the Iraqi economy in more than 25 years, the IMF reported that the interim Government needs to tackle chronic security and political problems if it hopes to rebuild the country. The cost of security and insurance cover swallows 30 to 50 per cent of reconstruction funds.
One man’s irony will be another’s nifty conspiracy theory — a jack in oil prices rescues Baghdad.
Every evening last summer I heard an update on Iraq’s economic struggle. Oil production and oil pipeline security were recurrent subjects, but agriculture received attention as well. Saddam restroyed Iraq’s thriving date palm industry. I’ve seen a series of recent reports that theft and looting in April 2003 damaged Iraq’s economic infrastructure. That may have occurred in some places– but Iraq’s oil industry suffered from long-term neglect. Maintenance was constantly deferred.
The Times notes that a political agreement regarding oil revenues would be an economic plus:
The outlook for the medium term is reasonably optimistic, but the security situation has to improve,” said Lorenzo Perez, a senior IMF official who headed the fund’s office in Baghdad until it was closed after the bombing of the United Nations building in Iraq two years ago.
He said that the approval of the country’s postwar constitution, which is being debated, would be an important step in the political and economic development of Iraq.
Iraq also needs to reduce government subsidies for fuel and basic food items, which are the highest in the world and account for a third of the country’s GDP.
Read the whole report.
Husband of Iraq war protester files for divorce SAN FRANCISCO — The husband of Cindy Sheehan, the California woman camped outside President Bush’s
Trackback by Unpartisan.com Political News and Blog Aggregator — 8/16/2005 @ 5:36 pm
$40 a barrel oil would have been sufficient to rebuild Iraqi infrastructure with US aid. The problem is, the infrastructure is being destroyed, in the oil industry at least, almost as fast as it can be rebuilt.
Comment by davebo — 8/16/2005 @ 6:11 pm
I think that higher oil prices is a reasonable tradeoff for a thriving, democratic Iraq. Of course, coming from Alberta, it isn’t bad for them either.
Comment by Half Canadian — 8/16/2005 @ 6:44 pm
It’s the subconcious understanding that in one form or another the Lefties are subsidizing “Bush’s War for Oil,” that’s driving them to distraction. One way or another, whether it’s through taxes (which all but Cindy Sheehan can avoid) or or gas prices (which none but the most hard core of hard core Lefties can forego) they’re putting their money where their mouths dearly wish to flee.
Comment by Alex — 8/16/2005 @ 6:51 pm
This just may force those limousine liberals to take public transportation. Perish the thought!
Comment by David Fennimore — 8/16/2005 @ 8:18 pm
The other day at my blog a fellow left a comment that said One other nice factoid I found somewhere (I can research it if desired): Iraq’s GDP and per-capita income are growing faster than any other state in the region. That is not all roses because the starting point was in the dumps. I remember the stat as per-capita income being in the $3,700 range for 2004 - which was up some 40%. Projected growth was in the 35% range for 2005. If the projections are accurate than we are looking at a per-capita income of some $5,000. Statistically, once that number exceeds $6,000 there is no turning back on a democratic movement - and the region (or courntry) will inch out of ‘gap’ status. With the jump in the price of oil, this will fill Iraqi coffers nicely and increase that GDP at a better rate.
Comment by Marcus Aurelius — 8/16/2005 @ 8:30 pm
I think over the next 10 years, people are going to be amazed at what kind of economic miracle is possible in an Arab country with free markets and a sensible economic plan. It’s easy to forget that nearly all the Arab states, with oil or without, are socialist dictatorships in the style of the old Soviet Union.
Comment by TallDave — 8/16/2005 @ 8:42 pm
One Man Gathers What Another Man Spills. So, this is interesting thing is Austin Bay puts it in the reverse order. Usually (certain) people suspect we raided Iraq for the oil, but what if oil turns out to save Iraq? Instead of us obtaining oil on the cheap (is it cheap?) the global economy …
Trackback by Blogger Beer — 8/16/2005 @ 8:46 pm
So we need to need to drive big SUVs and eat lots of dates. Or else, the terrorists win.
Comment by Protagonist — 8/16/2005 @ 9:56 pm
http://www.spectator.org/dsp_article.asp?art_id=8581 Checkout the article in the American Spectator about this patriot Sheehan! Unbelievable!
Comment by patd95 — 8/16/2005 @ 10:33 pm
[…] cost of security and insurance cover swallows 30 to 50 per cent of reconstruction funds. Link here. Leave a Reply You must be logg […]
Pingback by The Baltimore Reporter — 8/16/2005 @ 10:44 pm
Saving Iraq…one gallon at a time Austin Bay has the latest on what it might take to save Iraq…$3 a gallon gas in the USA! But…this little line got my attention:Iraq also needs to reduce government subsidies for fuel and basic food items, which are the highest in the world and acco…
Trackback by GZ Expat, Part II — 8/16/2005 @ 11:17 pm
Sooooo, does this mean Conservatives are going to support taxation and redistribution of wealth from here on out? Sweet! Let’s invade Harlem next! Let’s spend billions daily “bringing democracy” to East St. Louis! How about a military occupation of Michigan? Okay, seriously, this is some mad effort to turn lemons into lemonade, right? Everyday Americans are getting fleeced at the pump to bolster terrorist-lovin’, Israel-hatin’, Bush-buddyin’ Saudis, and you want to talk about how great it is for the IRAQI economy? Let me know when Republicans return to their isolationist roots … I’m not crazy about that ideology, but at least it makes sense!
Comment by J — 8/17/2005 @ 6:19 am
This got me thinking… why are fuel prices so high, list all of the arguments ad nauseam… the big X factor is the booming Chinese economy… Now if you want to talk conspiracy theories, I’ve been reading in Business Week how the Chinese banking industry is rotten to the core; giving out big loans to local party cronies, knowing full well that most loans won’t be paid back. Raise oil prices… that trickle of payments on those loans more or less stops… severely cramping their ability to “Make War.†Let me run this one by the Trilateral Commission, anyone got a phone #?
Comment by Jorge — 8/17/2005 @ 9:07 am
This got me thinking… why are fuel prices so high, list all of the arguments ad nauseam… the big X factor is the booming Chinese economy… Now if you want to talk conspiracy theories, I’ve been reading in Business Week how the Chinese banking industry is rotten to the core; giving out big loans to local party cronies, knowing full well that most loans won’t be paid back. Raise oil prices… that trickle of payments on those loans more or less stops… severely cramping their ability to “Make War.â€Let me run this one by the Trilateral Commission, anyone got a phone #?
Comment by Jorge — 8/17/2005 @ 9:12 am
It was a huge mistake of the US to continue the subsidies for oil — it should have been a Trust Fund of oil-sold for everybody (or all voters, only?), with the price of gas raised up to the world market level; or some 5% higher than the neighbors.
Comment by Tom Grey - Liberty Dad — 8/17/2005 @ 9:54 am
I doubt Iraq has enough oil to save it. Iraqis will determine what happens in Iraq. If they succeed in building ademocratic society, their own economy will be all the saving that needs doing. The high unsustainable oil prices are driven by futures speculators. In time …
Comment by bill — 8/17/2005 @ 10:24 am
Oil, oil, toil and trouble A couple pieces talking about oil: First off, Austin Bay blogs about one man’s pain being another man’s gain:
Trackback by My Dogs are Smarter — 8/17/2005 @ 11:01 am
This post is a joke, right? Higher gas prices are good because they will save Iraq’s economy. Of course, these higher gas prices will also negatively impact our economy. Brilliant.
Comment by circlethewagons — 8/17/2005 @ 12:53 pm
VOICE OF NEW ORLEANS igviu@pterre.net
Trackback by VOICE OF NEW ORLEANS — 9/2/2005 @ 4:02 pm