Save U.S.

Here's the understatement of the year for you: The United States is in some pretty deep trouble.

As our presidential nominees debate whether or not to have a debate tomorrow, our current head honcho, George Bush, broadcast himself into our living rooms to tell us "our entire economy is in danger." Thanks, W, for that update from the Department of the Obvious. He must still be trying to determine how many zeros to write on that $700 billion bailout check.

Meanwhile, the $27 billion in damages caused by Hurricane Ike this month has left large swatches of Texas and the Gulf coast in disarray. The storm also caused gasoline prices to surge throughout the nation, which already is in an energy crisis. Offshore drilling is a contemptuous issue enough, but it does not help our unstable situation that one of our primary oil suppliers, Venezuela, is controlled by Hugo Chavez, an ardent American antagonist who unceremoniously sent home the U.S. ambassador nearly two weeks ago on September 11--coincidence? I think not. Last week, our embassy in Yemen was blown up and, just yesterday, Iranian figurehead Mahmoud Ahmadinejad declared to the UN assembly that "the American empire...is reaching the end of the road." This statement comes from the man who infamously told Columbia University that there are no homosexuals in Iran. Brilliant.

Did I forget to mention that our troops (and dollars) are still...in...Iraq? Here's a simple idea: Let's bring our women and men home and use some of the millions of bucks we are spending in the Persian Gulf to give them jobs in Ohio, Michigan, Louisiana..we have 50 places to choose from! We can call this plan Economics 101.

Sarcasm aside, it sure has been a rough several weeks, months, years for the United States. When things get this dire, it can be difficult to find that clichŽd light at the end of the tunnel. But as I flip through my calendar, I do see something to look forward to. It's called Election Day, and it's November 4. If you aren't registered, don't know where to vote, or need an absentee ballot, check out www.stopandvote.org. This may be the most important election of our lifetime.

Debt for Oil?

In April, it was established that the Russian oil company Lukoil will become the largest oil supplier in Iraq. They will be replacing the disgraced Halliburton and will become the dominant conveyor of "black gold" in the country. In fact, the Russian government is giving full support to Lukoil's ambition to become the first large international energy group to develop a major Iraqi oil field since the 2003 U.S. invasion.

What does this mean? As Iraq works to rebuild itself, it is still struggling with a massive amount of debt. Russia has forgiven Iraq for much of the debt, but not entirely. Since the world's top oil companies are scrambling to win a stake in Iraqi oilfields (which hold the third largest reserves in the world), Lukoil would like to exchange debt for oil. Iraq has so far refused. However, the passage of an oil law is expected within the next couple of weeks. If Iraq allows the countries that it is indebted to trade debt for resources, this would be good for businesses in Russia and other countries, and presumably it would be good for Iraq.

But would it? Refer to my earlier blogs on foreign investments in Africa, and WTO and IMF criticisms. What a fine line we walk as developers; jobs are good, facilities are good, money is good, however the risk is that the country could be dominated, or "sucked dry," by foreign interest.

A member of Iraq's Parliamentary Commission of Economy, Investment and Reconstruction told the press that Iraq needs around $300 billion to rebuild all its oil, economy, industry, agriculture, infrastructure. It is important to note that currently over seven foreign firms from Iran, China, Egypt, France, Germany, Italy, Japan, Saudi Arabia, and, of course, Russia (among others) are attending the Rebuild Iraq International Trade Fair, which is being held in Jordan right now. What are the alternatives to foreign investment in Iraq? Perhaps there are none.

Sources: Moscow News, MSNBC, Business Day (South Africa), The Middle East/North Africa Financial Network