I have never considered the relative merits of an Iraqi bond versus a California state bond, but a reader of my toolbox for finance article, Military Entitlements Are Impoverishing Us, forwarded me an article from the Boston Globe on investing. This short excerpt from the Boston Globe makes an alarming comparison that indirectly makes one of my articles points. The piece is about two intrepid buyers of really scary emerging markets bonds from places like Venezuela, Dubai, Pakistan and Iraq. The comments about California and Iraq are most amazing.
Michael O’Hanlon, who tracks indicators of progress for the Brookings Institution’s Iraq Index, said that “Iraq has continued its remarkable trajectory of improvement.’’
“It is still fairly violent by Mideast standards, but many countries in places like South America have higher overall levels of violence now from crime,’’ he said.
Traditional Wall Street investors have taken note. Iraq is now considered a safer bet than Argentina, Venezuela, Pakistan, and Dubai — and is nearly on par with the State of California, according to Bloomberg statistics on credit default swaps, which are considered a raw indicator of default risk.
“Compared to California, I’d rather bet on Iraq,’’ [Emerging market bond investor Saleh] Daher said. “Iraq is a country where there are still bombs going off and people getting murdered, but they are less indebted than the United States. California is likely to have more demands on its resources, and there is no miracle where California is going to have more revenue coming out of the sky. Iraq has prospects for tremendously higher revenues, if they can manage to get their act halfway together, which they seem to be doing.’’…
America has wasted a fortune to invade and occupy a nation that was no military treat to the US nor did it have WMDs. Now America Taxpayers are forced to spend another fortune to maintain security and rebuild Iraq at no cost to Iraq. We got the world to forgive Iraq debt as we piled up debt. Iran loved the fact taxpayers paid the cost of eliminating their number one enemy, Saddam. Now the Middle East, Oil Sheiks enjoy $85 dollar oil and the protection of the American taxpayer military, thanks to their Uncle Sam.
The cost of Iraq and Afganistan occupation nearing ONE TRILLION DOLLARS.
Now this astronomical number doesn't include the cost of a life time of medical and psychiatric care nor disability payments for wounded soldiers.
It's time the US concentrate more on its Economic Might, if it wishes to keep its Military Might.
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