[Marxism] Bremer's Follies: Economic Disaster Fuels Iraqi Resistance

["Jim Essig \(E-mail\)" <jessig22000@xxxxxxxxx>]

Bremer's Follies: Economic Disaster Fuels Iraqi Resistance

A currency crisis appears to be one of the factors fuelling Iraqi
resistance. I suspect that Iraqi patriotism is the most important factor.
(Wouldn't you fight to expel foreign soldiers from American cities?) But
Iraqi patriotism is far from the only factor. Also feeding the resistance
are America's repressive, Israeli-style occupation tactics, and a lack of
knowledge of, and respect for, Iraqi culture.

According to a story that recently appeared on the Russian Site IraqWar.ru,
still another, less anticipated factor appears to be strengthening the
resistance -- a plummeting dollar. Bremer is paying Iraqis, including Iraqi
pensioners and ex-military personnel, in dollars. But the value of those
dollars when converted to Iraqi Dinars is about half what it was just 2
months ago.

The article gives the following example:

  Here are some figures to give you an idea of the current financial crisis
in Iraq:

  2 months ago: 1$ = 1950 Iraqi Dinars (ID)

  The value continued to drop, and 2 days ago the value was: 1$ = 1410 ID

  Yesterday: 1$ = 1100 ID

  Keep in mind that all Iraqis working for the CPA are paid in US dollars.
In addition, all of the severance pay for Iraqi ex-Army personnel,
unemployment payments, and a large percentage of Iraqis are paid in US
dollars.

  When an Iraqi ex-Army man was being paid 60$ per month by the CPA, this
translated to 120,000 IDís 2 months ago. Now he makes 60,000 IDís. At the
same time the cost of basic food products has been rising, and continues to
rise.

The situation is not likely to change anytime soon. The US is spreading lots
of dollars around Iraq while the Iraqi dinar is becoming more scarce.
Ultimately, the deteriorating economic situation in Iraq may do more than
anything else to further turn the Iraqis against the occupation and
destabilize the country.

Unless the situation can be altered, crime is likely to increase while
ordinary business pursuits for Iraqis become untenable. Meanwhile, both food
costs and unemployment will continue to rise. Already riots have broken out
in Iraq in protest against the horrendous economic conditions, and tens of
thousands of Iraqis have been protesting in Basra.

The arrogance of the Bushies is topped only by their incompetence.

--
Posted by James Essig to Progressive Update at 1/16/2004 01:08:15 AM
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