mike

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Article:  “Iraqi state is facing the threat of bankruptcy next year

For what it’s worth, I just don’t know how much effect the IMF’s going to have on the situation in Iraq. Can the IMF pass the needed laws to create an open market economy?  Can they charge, prosecute and imprison the elite who are responsible for scamming the auctions? Can they craft the legislation and get it through Parliament relating to the long overdue banking reforms?  Iraq has known for over a year now that oil wasn’t going to be enough to make payroll, fund the infrastructure projects and fight the war against ISIL and what have they done?  Not much. There’s been a few laws passed but in the end, Iraq is still holding tight to the old, centralized, government controlled systems they’ve had for years.

It won’t work anymore, they can’t generate enough money from oil to control everything, those days are gone.  Until Iraq can release the constraints on foreign investment, create an open market economy and allow the currency to be internationally accepted, we’re going to continue to watch the slow death of Iraq’s economy and it’s ability to pay the salaries of it’s people. Even if reforms, laws and legislation magically happens tomorrow, it’s going to take a considerable amount of time for it to take effect and move the country forward.  In the meantime, these guys are spending the reserves like a sailor on shore leave.  It’s like watching a car wreck in slow motion, these guys just don’t get it.  IMO