No money, no play: US on the brink in Iraq -- EXCELLENT

[Emillereid]

By Herbert Docena

BANGKOK - This coming October 23 to 24, the United States will be sitting down with rich creditor countries, the International Monetary Fund (IMF) and the World Bank (WB) during an international donors' conference on Iraq in Madrid. The IMF, the World Bank and the UN have estimated that Iraq will need US$36 billion for reconstruction within the next four years, in addition to $19 billion for other nonmilitary needs calculated by the American occupation regime. <1> With few options left, the US will be passing the hat.

This meeting could be a turning point in the occupation because whether the hat goes back to the US full or not will determine whether the US can afford to stay. The decision of donor countries to cough up cash will depend, in turn, on whether this continues to be a unilateral or multilateral economic takeover of an occupied country.

'This has nothing to do with oil'
The US is now forced to turn to the creditor countries, including war opponents France and Germany, and international financial institutions (IFIs) because it has nowhere else to go. The US initially had two options: to turn to the Iraqis or to the American taxpayers.

<snip>
The development fund is intended to finance the rehabilitation of all that's been damaged by the war. The choice of corporations to undertake this reconstruction, however, has so far been a question reserved exclusively for the US. And since most contracts are negotiated on a cost-plus basis, the price of the "reconstruction" is all up to the chosen contractor. In other words, what will be paid to Kellogg, Brown and Root to repair Iraq's oil fields and machinery, for example, will be financed out of Iraqi oil revenues at a price determined by Kellogg, Brown and Root itself. ...

Incredible analyses of the financial pickle we're in Iraq. Four little paragraphs cannot do this piece justice.

[Barrett808]

1. link? n/t

n/t

[critical_thinker2]

2. This is good?

Less money for social programs? More money for defense? Do you really think that Bush will or should pull out?

[never cry wolf]

3. It is good in that

Shrub will be forced into making this a multilateral operation. At least I believe that is what the poster is getting at.

[RC]

5. All bu$h&co care about is the oil.

And thay can hardly get it out of the ground, let alone transport is anywhere. They will let the rest of Iraq go to whoever wants it, but the oil belongs to cheney. It was stolen fair and square. The oil money will never go towards reconstruction.

[critical_thinker2]

6. I dont think so

I dont think it will force him to do anything he dont wanna do. We'll be forced to pay for this. We've done it before and we'll do it again. It was called the Marshall Plan in the past today its just another foreign aide hand out.

[Emillereid]

4. Here's the link

Sorry about that -- http://www.atimes.com/atimes/Middle_East/EJ10Ak01.html

[bemildred]

7. Nice Piece.