While the United States continues to spend billions of dollars on reconstruction of Iraq the Iraqi government is now showing a surplus of $79 billion, the result of increasing oil sales. From the New York Times:
Soaring oil prices will leave the Iraqi government with a cumulative budget surplus of as much as $79 billion by year’s end, according to an American federal oversight agency. But Iraq has spent only a minute fraction of that on reconstruction costs, which are now largely borne by the United States.
With the United States running enormous deficits our spending in Iraq is from borrowed money, while the Iraqi’s continue to bank their expanding oil revenues. It is amazing to see the reckless disregard for any type of fiscal sanity here.
In one comparison, the United States has spent $23.2 billion in the critical areas of security, oil, electricity and water since the 2003 invasion, the report said. But from 2005 through April 2008, Iraq has spent just $3.9 billion on similar services.
And our own infrastructure in the United States continues to crumble due to lack of money, and we are borrowing money to rebuild Iraqi infrastructure while they accumulate reserves???? This is good policy? Where are the fiscal hawks of the Bush Administration and the Republican Party? Oh, they are only against domestic spending. Senator Carl Levin (D) and Senator John Warner (R) issued a statement:
“The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects,” Mr. Levin, who is chairman of the Senate Armed Services Committee, said in a joint statement with Mr. Warner. “It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank.”
Yes that makes sense to me, but where is the action to stop U.S. spending on Iraqi infrastructure? The Iraqi’s claim that the new government has problems spending the money properly.
Sinan al-Shabibi, governor of the Central Bank of Iraq, which the report said was holding $5.7 billion of the surplus at the end of 2007, said that while he could not speak for the government, problems with spending money often had to do with continuing security problems and a shortage of expertise in Iraqi ministries.
That is fine, but how about re-imbursing us for the money that we are spending? If they can’t spend it I am sure that they can transfer it to us. Another fiscal outrage! Read the New York Times story here.
Bill Manzi.com 
Your Honor,
It’s probably time to begin pulling out our funding their infrastructure. Iraq has put some competent troops in the field. Now it’s time for them to manage their own finances.
Heck, your honor, can’t do worse than Massachusetts. (see entry “Another Monster Bill Coming Due”.)
I’ll wait for the Bush Bashers entries)
Jules
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I highlight ridiculous fiscal policies from both parties. This one is Republican, so some Bush bashing may be in order here. The laws of mathematics are not waived because some people feel that spending is for a noble cause.
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Your Honor,
I believe, as I said, if they have the cash, they should manage their own while we use ours for ourselves.
I think they are more corrupt than our guys and will waist a lot of it.
I will send this advice to the president. I’ll let you know how hat works out. Did I tell you I got 2 responses from Ted kennedy regarding the Amnesty thing. He is going to get it passed.
Jules
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Your Honor,
Just got the word. Iran is actually out spending us 20 to 1. We could be out of there in 2012. And we will still be in Europe and South Korea.
I notice you get your data from the New York Times, formerly the newspaper of record. They only print bad news for the present administration.
You may want to follow up to see if I’m right.
Jules
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Well Jules the thing about data is that it is right or wrong. Does Iraq NOT have 79 billion in reserves? If they do who cares where the data comes from? As far as Iran goes I do not know where you get your data, but I doubt that Iran has outspent us on Iraqi infrastructre by 20-1. We have spent over 50 billion on infrastructure, which would put Iran somewhere near a trillion by your count. I don’t think so. And if you did not want to increase Iranian influence why invade Iraq and overthrow the only real check on that influence in the region. You overthrow a Sunni dictator and install pro-Iranian Shia and you wonder why Iranians are exerting influence in Iraq???? Because WE put them there.
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Your Honor,
I misspoke. (I love that word). Please substitute Iraq for Iran. My bad.
Jules
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