Can't the US just buy the oil from Iraq and the hell with France and Russia and UN?

[TCO]

Originally posted by DanS
Huh??

They didn't make the payments when they were due. They defaulted. But they have since restarted payment on some loans, restructured others, etc. IIRC.

So it's not the end of the world if a country defaults. maybe even a good thing to have a clean default and stop the "game" of IMF bailouts and moral hazard and such.

[DanS]

No, it's not the end of the world. Like I said, Iraq has already been in default for decades.

But default does create some problems, like what happened in Russia. I think Russia probably did the right thing in default/devalue, although they have been pretty lucky to have subsequent periods of high oil proceeds. Saras and Sten probably have some good things to say about this.

Edit: Some random googling indicates that Russia is paying on some $48 billion in Soviet-era debt to Paris Club members. Russia's total external debt is something like $150 billion, 2/3rd of which was incurred during Soviet times.

Given all of this, Russia might be in the right to use all the power at its disposal to pressure Iraq to pay much of her debts. But then Iraq would also be in the right to say "sod off" and renegotiate terms.

[Spiffor]

DanS : by the way, do you know whether Russia will pay back the infamour "Russian loans" from the pre-revolution era ?

[Ned]

I would suggest if you don't pay your debts, such as to bank A in country B, then it would be very hard to do business in country B without bank A being all over you for repayment.

However,

Can one sue a foreign government against its will? I don't think so. But there may be subtle ways at getting at its assets, such as by suing the private company that is about to deliver something to the foreign government.

[DanS]

Spiffor: Here's a PBS Newshour report on the Iraqi situation...

http://www.pbs.org/newshour/bb/middle_east/jan-june03/debt_5-6.html

It seems to suggest that the Czarist debts are worthless and won't be repaid by Russia.

[LoneWolf]

Originally posted by GePap


Private companies found to be selling and transporting illegal Iraqi oil could face legal penalties in all sorts of states outside of the US. Just because of that major US oil companies would not be eager to get their hands on Iraqi oil, if it meant legal nightmares for them in other states. That would make the US government the one selling Iraqi oil on a market unsure about buying it, probalby making the US government also the only interested buyer. And that would create one giant political firestorm.

You guys want to keep the French and germans out of Iraq? Why the hell do you think then they would not act to stick it to you and make your job more difficult and dangerous? As i said earlier, grow up kiddies.

Well, I think that they would and they have and they will in the future. And yet you and they seem to think that we should continue to treat them as "friends" (oh, so touchy feely). I think you ( and they) need to grow up.
If they (and you) want to be adversaries, let's go, but no crying! Enough with this "alliance" silliness.

[Dinner]

Originally posted by Spiffor
DanS : by the way, do you know whether Russia will pay back the infamour "Russian loans" from the pre-revolution era ?

Heck we're still waiting for the French and British to pay us back for the WW1 loans we made to them.

[Lancer]

FOX news reports that Bush said that the "US is suspending sanctions against Iraq, and he hopes the UN will do so as well."

My thread title is:


Can't the US just buy the oil from Iraq and the hell with France and Russia and the UN?

Bush just answered it...

[TCO]

I wonder which Navy they will use to check for sanctions violations??

[Dinner]

Like I said in another thread. The US & British navies have been the one's to enforce the sactions so if they decide to cease the sanctions then defacto the sanctions are over. This is even more true if the world's two largest navies decid to protect Iraqi shipping. Can you imagine the French or Russians trying to enforce an embargo if the US/UK announces their ships were going to prevent them from doing so? I sure can't...

[Lancer]

Let it be the French, p l e a s e...

[Cruddy]

Sure they can. It will be interesting to see who they pay the money to, and even more interesting when American trade with countries who don't like it is affected.

There's always a price to pay - and if you don't work hard at making friends, pretty soon you have a lot of enemies. Not necessarily military threats, but countries that just don't like you.

[TCO]

And vice versa.

[Lancer]

"countries that just don't like you"

They didn't like us before, screw em.

[TheStinger]

Originally posted by Oerdin


Heck we're still waiting for the French and British to pay us back for the WW1 loans we made to them.

The british have paid bcak evrything, infact those loan payments together with the ww2 ones are a major factor in why the US economy came to dwarf evryone else