the financial gains of the war

8/3/2019 The Financial Gains of the War

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What makes a warWhat makes a war

happen?happen?Backstage of the American attackBackstage of the American attack

against Iraq inagainst Iraq in 19911991

Part of the material for the course Models and NaturalResources Management 1, Milan Technical University.


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The expenses for the Gulf warThe expenses for the Gulf war

4040 billion US dollarsbillion US dollars

oror 4242 billion eurosbillion euros


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But who paid for this?But who paid for this?InstinctivelyInstinctively we saywe say that thethat the $ 40$ 40 billion,billion,

was paid by the USAwas paid by the USA

This is partially trueThis is partially true:: indeedindeed

4040 BILLIONBILLION $$

25%25% of the expensesof the expenseswas paid by the USAwas paid by the USA

(10 billion$)(10 billion$)

75%75% of the expensesof the expenses was paidwas paidby the Arab countriesby the Arab countries,,

specifically byspecifically by Kuwait andKuwait andSaudi ArabiaSaudi Arabia (30(30 billionbillion $)$)


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Where did they find this money?Where did they find this money?

The oil price before the war was approx.The oil price before the war was approx. 15$15$per barrelper barrel......

but with the Gulf war, it rose tobut with the Gulf war, it rose to 42 $42 $ per barrelper barrel,,generating angenerating an EXTRAEXTRA profit of aboutprofit of about 6060 billionbillion $$

Who did this profit go to?Who did this profit go to?

In the Arab countries the fifty fifty law is valid: 50%to the state and 50% to the multinational that controls

the oil deposit. This gives us


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Where did they find this money?Where did they find this money?

Net profit from the increase in theNet profit from the increase in theprice of oilprice of oil: 60: 60 billionbillion $$

3030 billionbillion $$ to theto theoil companiesoil companies

3030 billionbillion $$ to theto the

governments of the Arabgovernments of the Arabstates (Kuwait +states (Kuwait + SaudiSaudi

ArabiaArabia))


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Who owns the oil companies?Who owns the oil companies?

In the Middle East, the extraction and trading of oil is in thehands of the 7 Sister (Shell, Tamoil, Esso), all of which are

American, and 5 are state owned.

30 billion $

Approx. 21 billion $ tothe American State

Approx. 9 billion$ tothe American private

sector


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Lets make some calculationsLets make some calculations

Expenses ofExpenses ofwarwar

Profit from theProfit from theincreaseincrease in thein the

oil pricesoil prices

Profit or lossProfit or loss

Arab NationsArab Nations

30$30$

billionbillion

30 $30 $

billionbillion 00

USAUSAGOVERNMENTGOVERNMENT

10$10$

billionbillion

21 $21 $

billionbillion

USA PrivateUSA PrivateSectorSector 00 9 $9 $billionbillionProfitProfit $ 9$ 9 billionbillion

Now all is clear USA have made a profit of 20$$

billion from the war! It had nothing to do with Free

Kuwait they were only after the cheese !

ProfitProfit 11 $11 $billionbillion


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But this is not over yetBut this is not over yet

Finally, who paid theFinally, who paid the 9191 war against Iraq?war against Iraq?

Those who use the oil

which means

us!!!


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1. So, the USA, have made a total profit of...

$ 11 billion from theoil

$ 49 billion fromthe weapons!!!


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2. Where did the $ 40 billion spent for the war go?

To the war industry, all of which just happens to be almost

exclusively

AMERICAN!!!


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Last thoughtsLast thoughts

Now it is easy to assume that the Gulf war inNow it is easy to assume that the Gulf war in 1991,1991,happened for financial reasons onlyhappened for financial reasons only,, and not forand not forsome humanitarian reason or for the right tosome humanitarian reason or for the right to

freedomfreedom..

But now it is easy to understand two other events:the reason behind the war in Afghanistan and the new war

against Iraq


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The war in Afghanistan had as a main target the installation ofa pawn government that would agree with the constructionof a pipe line (American owned), of 2.500 km length that

would run across its territory.

This strategically important pipe line, has as unique alternative,the construction of another one, of 5.500 km lenght, much morecostly to construct and maintain, due to the taxes that would beimposed to the USA by the countries through which it would run.

It is much easier to reduce to dust a country alreadytormented by 30 years of war and turn it into your annex, with

the possibility of constructing and managing the shortestpipe line without any trouble at all.


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To understand whyTo understand why Bush jr.Bush jr. wants to attackwants to attack IraqIraq again,again,we must know that the main supplier of oil in thewe must know that the main supplier of oil in the

Middle East is Saudi Arabia.Middle East is Saudi Arabia.

The rupture of their relationship cannot be mended, becauseThe rupture of their relationship cannot be mended, becauseSaudi Arabia is one of the countries involved in theSaudi Arabia is one of the countries involved in the Bin Laden,Bin Laden,

terrorist movement and because the International Publicterrorist movement and because the International PublicOpinion is against this country due to their lack of respect of theOpinion is against this country due to their lack of respect of the

Human rights.Human rights.

So, theSo, the Bush administration has a goal:Bush administration has a goal: to find an alternative oilto find an alternative oilsupplier except for Saudi Arabia in the Middle East.supplier except for Saudi Arabia in the Middle East.


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The easiest way, of course, is a war in Iraq and the installation ofThe easiest way, of course, is a war in Iraq and the installation ofa pawn government under USA guidance. The answer thata pawn government under USA guidance. The answer that

spontaneously comes to mind is Why Iraq?spontaneously comes to mind is Why Iraq?

For 3 simple reasonsFor 3 simple reasons::

It is a country that cannot defend itselfIt is a country that cannot defend itself ((poverty due to the embargo is killingpoverty due to the embargo is killing300.000300.000 babies/year due to malnutritionbabies/year due to malnutrition).).

Iraq offers an easy excuseIraq offers an easy excuse ((the presence of nonthe presence of non--existent weapons of massexistent weapons of massdestruction, that can be only produced with high technology which Iraq doesdestruction, that can be only produced with high technology which Iraq does

not have) tonot have) to justify the attack to the International community that knowsjustify the attack to the International community that knowsnothing about oil deposits.nothing about oil deposits.

Until now, Iraq does not have the support of a powerful nation, that would beUntil now, Iraq does not have the support of a powerful nation, that would bein the position to withstand the American threat.in the position to withstand the American threat.


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On top of this, in the lastOn top of this, in the last 33 yearsyears, a social revolution has taken, a social revolution has takenplace in Venezuela, due to the terrible living conditions.place in Venezuela, due to the terrible living conditions.

VenezuelaVenezuela is the greatest oil supplier for the USA.is the greatest oil supplier for the USA.

TheThe BushBush administration had to find an alternative to Saudi Arabiaadministration had to find an alternative to Saudi Arabia

and Venezuela.and Venezuela.


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What can we do?What can we do?

Inform as many people as you can about the trueInform as many people as you can about the truereasonsreasons behind this war. An ignorant person is easybehind this war. An ignorant person is easy

to controlto control.. A person thinking logically can resist!A person thinking logically can resist!

Visit the site ofVisit the site of Emergency:Emergency: www.emergency.itwww.emergency.it

the financial gains of the war

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