Time to get pissed.

[Cleaner]

Report: Iraq could have $79 billion budget surplus

WASHINGTON (AP) — The Iraqi government could end this year with as much as a $79 billion cumulative budget surplus, based largely on ever-increasing oil revenues, congressional auditors say.

A report by the Government Accountability Office made public Tuesday prompted renewed calls from senators that Baghdad pay more of the bill for its own reconstruction, which has been heavily supported with U.S. funds.

The projected Iraq surplus, including unspent money from 2005 through 2008, has been building because of rising world oil prices, increasing Iraqi oil production, the government's inability to execute budgets for spending its money and persistent violence in the country, the GAO said.

The report was requested by Sen. Carl Levin, D-Mich., and Sen. John Warner, R-Va., the chairman and ranking member, respectively, of the Senate Armed Services Committee.

"The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects," Levin said in a statement. "It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves."

"It is time for the sovereign government of Iraq, using its revenues, expenditures and surpluses, to fully assume the responsibility to provide essential services and improve the quality of life for the Iraqi people," Warner said.

The GAO said Iraq had an estimated cumulative budget surplus of about $29 billion from 2005 to 2007 and could have another surplus of up to $50 billion this year.

The expected surplus could be lower if Iraq passes stalled legislation for a $22 billion supplemental budget for 2008 — and if the government then executes the budget.

But the report noted oft-repeated factors holding the government back on its spending plans.

"First ... (the) relative shortage of trained budgetary, procurement and other staff with the necessary technical skills as a factor limiting the Iraqi government's ability to plan and execute its capital spending," the GAO said, adding that a second problem is the government's weak accounting systems.

"Third ... violence and sectarian strife remain major obstacles to developing Iraqi government capacity," it said.

The report also estimated that this year Iraq could generate $67 billion to $79 billion in oil sales. Other U.S. officials previously had said they expected the oil windfall to be about $70 billion.

"This substantial increase in revenues offers the Iraqi government the potential to better finance its own security and economic needs," the GAO said.

Since 2005, the United States has funded a number of efforts to teach civilian and security ministries how to effectively execute their budgets.

The efforts included programs to advise and help Iraqi government employees develop the skills to plan programs and to effectively deliver government services such as electricity, water and security.

http://www.usatoday.com/news/washington/2008-08-05-iraq-budget_N.htm

Wow, I can't believe this shit. Meanwhile gas is teetering around $4 per gallon. Like Chris Rock said, "if I robbed a Waffle House, I wouldn't be paying full price for waffles." (can't remember the exact qoute but it was something like that)

[jagr]

they should use it to build big statue of Ronald Mcdonald.

For he will lead them unto the promised land.

What? you dont think they are already planning it?

[yotaman88210]

Damn!

[wolfman]

Shit...

[redbarron77]

this does not surprise me at all.......

[kawi kid]

we should get a kick back

[SAMBUSA]

Why arwsupposed to be pissed? Our gas prices are set by investors not oil companies. Besides we get the majority of our oil from Canada and Mexico, not the middle east

[12oclocker]

goverment does not care about pissing our money away, they'll just raise our taxes and take more of our money to piss away.

[jagr]

we should get a kick back

WE do get a kick back Mr. Kid.

WE get kicked back to THE CURB.

[Cleaner]

Why arwsupposed to be pissed? Our gas prices are set by investors not oil companies. Besides we get the majority of our oil from Canada and Mexico, not the middle east

We are fighting a war for their country and you and I get to foot the bill for it. Our soldiers get killed over there for the sake of democracy and you and I are paying for that shit. WE don't have a freaking budget surplus. WHY, because its funding the war. A war they're not paying for. What I am saying is that AT LEAST we could get some free petrol out of it while they're running around with their surplus.

BTW, gas prices are not set by investors.

[Fonzie]

we should get a kick back

We SHOULD be sending them a bill for services rendered over the last 5+ years!!

[Disclaimer]

Why do you say prices are not set by investors?

Depending on how you define the term investors - they certainly are. The price of crude is set by supply and demand. You can invest in gasoline just like farmers invest in corn, or realty companies invest in real estate. Crude is traded on the global market that way. When investors think they're going to have a shortage, they buy more crude oil, driving the demand up, in the hopes to sell the barrels later at a profit. When there's an abundant supply, then oil isn't as good of an investment and the price per barrel drops. Granted, this is a drastically oversimplified example, but there's additional information on speculation and gasoline futures here ---> (http://answers.yahoo.com/question/index?qid=20080626163320AA1kqKx)

That's investing, or am I missing something?

[SAMBUSA]

Thanks Justin. I'm on a train so its a little hard to keep up on the posts.

IIRC, the crude oil prices are mainly set by the investors in Chicago. Big Chief would know more about it than me

[wolfman]

Thanks Justin. I'm on a train so its a little hard to keep up on the posts.

Damn..you get to browse the interwebs while you drive a train?

[SAMBUSA]

Yeah but its on my phone so it takes a little longer to post up cuz I cant stay logged on like at home

[SAMBUSA]

So just think, I am burning 400 gallons of diesel fuel per hour while I browse Ohioriders

[Disclaimer]

What's a train get on average - carrying a normal load of cargo, however you guys define 'normal load'? I suppose it's measured in GPM not MPG.

[SAMBUSA]

A locomotive at full throttle burns 200 gallons per hour. But thats with10k tons at 50 mph under normal conditions. different tonnage and grade conditions change the fuel usage up/down

I think it breaks down to 1 ton uses 1 gallon to travel around 200 miles. 1 ton on a semi travels 40 miles on 1 gallon.

[Cleaner]

JRMMii, you are missing smething. Btw, the gas issue is not the point of my post.. it is the war that we are paying for. But, to elaborate on the gas issue. Blaming the investers only works if you have a fixed supply. the oil companies have a variable supply. with relatively little cost to them, they could increase production. the cost of an additional gallon of oil is not that expensive. the companies can manipulate their "supply" in order to drive demand. its called Supply Side Economics. The investors do play a role, however. their purchasing and selling of oil futures sends the oil producers information that those companies use to determine how much to produce.

[Disclaimer]

@ Cleaner:

I agree with the Supply Side economics, I understand your point. But, I further the debate by saying that the supply side is driven by speculation and investment in gasoline futures - this creates an artificial and easily manipulated market for this ever-so-valuable natural resource. The oil companies aren't just arbitrarily releasing and withholding the reserves - they're doing it to maximize profits based on those speculations and futures - we are capitalists after all.

I know your beef is with the war and I completely agree with you there - you're preaching to the choir on that point. But, asking for fiscal responsibility from this administration is like asking everyone to stop breathing oxygen. We were told the war would fund itself - and again, were lied to.

I honestly don't blame the Iraqi gov't in the least - surplus or not. Do I think it's wrong that we're funding this? Absolutely. Unjust? Sure. Unfair? You bet, but you can't expect the Iraqi government to quit suckling on America's teats when they're used to getting handouts and everything paid for. It's kind of like telling a "trust fund" baby that they're cutoff - it just doesn't work like that. We've told the Iraqi gov't numerous times that they're going to have to stand on their own two feet eventually, but have shown no tough love... and you can't be tough, because it'll just crumble down back into a state even worse than before we 'liberated' it.

Responsibility isn't like an on/off switch - it must be grown over time, and we've given the Iraqi gov't a pass on all those metrics we've set years and years ago because the Bush administration didn't want to admit it was a mistake. The US gov't made sure it looked like Iraqi's were meeting the metrics, thus turning it into a political move for the administration - not a step towards establishing a responsible Iraqi gov't.

The more I think about it, it reminds me of high school and college where the more intelligent kids would get assigned to group projects and just carry the slackers through because 'it was only temporary' and the smart kids didn't want to be detrimentally affected by the lack of performance on the slackers. The slackers will continue to be slackers throughout life because they'll always find someone to feel sorry for them and be able to ride coat tails.

Sorry for the RANT

[shittygsxr]

JRMMii, you are missing smething. Btw, the gas issue is not the point of my post.. it is the war that we are paying for. But, to elaborate on the gas issue. Blaming the investers only works if you have a fixed supply. the oil companies have a variable supply. with relatively little cost to them, they could increase production. the cost of an additional gallon of oil is not that expensive. the companies can manipulate their "supply" in order to drive demand. its called Supply Side Economics. The investors do play a role, however. their purchasing and selling of oil futures sends the oil producers information that those companies use to determine how much to produce.

Maybe just maybe there is a finite supply of oil and they "opec" countries are trying to "ration" out what they have so that they dont run out before they expect to.

[Cleaner]

Maybe just maybe there is a finite supply of oil and they "opec" countries are trying to "ration" out what they have so that they dont run out before they expect to.

There is a finite supply of oil but no one on the planet is able to tell us if or when we will run out. Further, its still the companies making a determination of how much they should produce and at what price, etc. But I am not just ranting on the price of oil. I think $5 per gallon of oil is not such a bad idea. My problem, and the reason I posted the article, is that when we use our tax dollars to fund a war and they essentially have a money tree over there (oil reserves) they should fucking share a little and not be allowed to have a huge surplus. I don't care if they have a finite supply of oil or not. If we save your fucking country (whether we actually saved Iraq is an entirely different thread) you should give us a freaking coupon for a few quadrillion gallons of oil. ESPECIALLY if you have a $79 billion surplus (projected).

That's like me renting a truck and movers and helping you move to a new apartment. I borrow money from my family to pay for said movers and truck. After all the hardship we finally get all of your shit moved and you give me a pat on my back and send me on my way. Meanwhile you have tons of cash and I owe a large debt to help you out.

"The oil companies aren't just arbitrarily releasing and withholding the reserves - they're doing it to maximize profits based on those speculations and futures -" True Dat JRMii

"But, asking for fiscal responsibility from this administration is like asking everyone to stop breathing oxygen. We were told the war would fund itself - and again, were lied to." Yuppers

"I honestly don't blame the Iraqi gov't in the least - surplus or not." I agree with you there too. I am sure the Iraqi's are saying, "hey retards, I don't remember asking you guys to invade our country... You made this mess, YOU pay for it."

[jagr]

Well i hope the majority of that 80 B goes back into theie infrastructure. You know, the one we are paying to rebuild.

The more they pay for the less we will.

Im sure would still go to the large U.S. contractors like Haliburton.

just wishful dreaming.

[Disclaimer]

Im sure would still go to the large U.S. contractors like Haliburton.

just wishful dreaming.

+1 for that! What surplus can we hold KBR responsible for? I think (without looking at the figures) that KBR has banked more for it's shoddy work than the Iraqi gov't surplus. Someone correct me if I'm wrong.