After communism and capitalism, there is asterism.

Monday, February 06, 2006

Self fueling prophecy

Lets file this one under officials stating the bleeding obvious:

Oil Graft Fuels the Insurgency, Iraq and U.S. Say

BAGHDAD, Iraq, Feb. 4 — Iraqi and American officials say they are seeing a troubling pattern of government corruption enabling the flow of oil money and other funds to the insurgency and threatening to undermine Iraq's struggling economy. ...

Ali Allawi, Iraq's finance minister, estimated that insurgents reap 40 percent to 50 percent of all oil-smuggling profits in the country.

Last week I reported that Iraqi government faced Catch 22 over electricity - cant raise money without electricity can't rebuild electricity without money. So here is Catch 22 no. 2. The insurgency fuels corruption and corrution fuels the insurgency.

This Iraqi government is doomed no matter how you look at it.


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