What if you don’t want to pay your debts?In 1990, the country wiped out its creditors in a day

2022-05-19 0 By

In the early morning of August 2, 1990, Iraq, the “little bully in the Middle East”, marched out and annexed neighboring Kuwait in one day, triggering the Gulf War and ushering in the history of the post-Cold War era.One of the reasons for Iraq’s annexation of Kuwait is that Iraq suffered heavy losses in the Iran-Iraq war in the 1980s and borrowed more than $14 billion from Kuwait.After the Iran-Iraq war, Iraq could not pay its debts, and wanted Kuwait to forgive its debts, but Kuwait refused, so Saddam became angry and ordered the annexation of Kuwait.But between the two countries, and a country in the international focus area, so many eyes, including the United States and the Soviet union such as the superpower.Why did Iraq risk offending the United States by annexing Kuwait?What else is behind this?Repudiation is just one of the purposes to understand that Iraq, is not because of wanting to “repudiation”, annexed Kuwait, first of all from the motivation to analyze.In the late 1980s, the eight-year Iran-Iraq war came to a halt when both sides lost too much money to fight.The Iranians and Iraqis have also lost a lot in this long-running religious war, but there are differences.Simply put, Iran’s economy was not doing so well before the Iran-Iraq war.So even though the war cost a lot of money, the economic situation could only get worse because it was already poor and could not get poorer.But Iraq is different, thanks to its small country, rich oil reserves, Iraq before the Iran-Iraq war, the economic level is very good.In 1980, Iraq’s GDP was more than $50 billion, the same as ours, when we had a population of 1 billion and Iraq had a population of just over 13 million.At the same time, In 1980, Iraq’s foreign exchange reserves stood at more than $30 billion, and seven years later, in 1987, our foreign exchange reserves were less than $5 billion.So Iraq was very rich before the Iran-Iraq war.But in 1988, when the Iran-Iraq War was over, Iraq’s GDP was still more than $50 billion, while Our country’s had reached more than $150 billion. In eight years, our GDP increased by three times, while Iraq was guarding so many oil fields, but it did not move in place.More importantly, he was deeply in debt from the war.Instead of running out of $30 billion in foreign reserves, they owe a whopping $70 billion in debt.Much of the $70 billion in debt comes from Saudi Arabia and Kuwait.Kuwait alone had $14 billion, equivalent to about a third of Iraq’s GDP that year.More importantly, although Iraq is rich in oil resources, during the Iran-Iraq war, many of its production facilities were bombed and burned, resulting in a decrease rather than an increase in Iraq’s oil production.This means that Iraq will not be able to repay the money any time soon.By contrast, Kuwait, a country a quarter the size of Iraq, has 80 percent of Iraq’s oil reserves and is well equipped to produce them.The so-called gentleman is innocent, he is guilty.Iraq owes Kuwait a huge amount of debt not to say, more crucial is oneself because of the war, in the short term can not restore the profits brought by oil exports, but neighbors Kuwait rich flow of oil, or one of their biggest creditors.In such a sharp contrast, it is all too normal for Iraq to have bandit ideas.In addition, Saddam hussein was a strong man who believed in his heart that The war between Iraq and Iran was for the Arabs to offset the Persian hegemony, and Arab countries like Kuwait and Saudi Arabia were the beneficiaries of this war.With this in mind, Saddam hussein wanted Saudi Arabia and Kuwait to share the losses of the war with Iraq, for example, by forgiving the debt that had been lent to Iraq during the war.His logic goes: Iraq, Along with Saudi Arabia and Kuwait, is a member of the Arab world, and now we, Iraq, have fought a war with Iran with our money and our people, and the rest of you have paid for it. How can YOU expect me to pay you back?Saudi Arabia and Kuwait, of course, don’t see it that way.They supported Iraq in the war against Iran and lent money to Iraq simply because they thought that if there had to be a hegemon in the Middle East, Iraq, as a fellow Arab, would be better than Iran.To put it bluntly, they support Iraq, but at heart they see it as a struggle between the two powers in the Middle East, not, as Saddam claimed, Iraq fighting Iran for the Arab world.In a word, brother, clear reckoning.No matter how close we are, you have to pay us what you owe us, and we don’t agree to renege on your debt.On August 1, 1990, negotiations broke down over debt and other issues, and Iraq went to war against Kuwait the next day.For this reason, many people believe that Iraq’s annexation of Kuwait was an act of default.From the above historical facts, “Iraq defaulting on its debts”, is supported by certain facts.But there is one very important factor missing, and that is the United States.Long before Iraq annexed Kuwait, the United States had made it clear that it would intervene if Iraq did.The Soviet Union, which stood behind Iraq, was too weak to compete with the United States and, more importantly, did not support Iraq’s annexation of Kuwait.In this international context, It makes little sense for Iraq to resist the pressure of the United States and be targeted by the United States in order to cancel its $14 billion debt.So what other reasons, besides default, did Iraq “have to” annex Kuwait?In fact, Iraq wants to annex Kuwait, not a day or two.Iraq tried several times to annex Kuwait in the 1960s, only to fail because of international pressure.On June 19, 1961, when Kuwait became an independent country, Iraq massed troops on both sides of the border, promising to teach Kuwait a “history lesson” and force Kuwait to agree to annexation.It just didn’t work because of the intervention of Britain, Saudi Arabia, Syria, etc.So why did Iraq want to annex Kuwait from the very first day of its establishment?We all know saddam was a strongman, but weren’t all of Iraq’s previous leaders strongmen?Of course not, the root of all this, but also from the UK, the world’s famous “stirring shit”.In the late 19th century, when our country was called the “sick man of East Asia”, there was also a huge empire in West Asia, the Ottoman Empire.At its peak, the empire, which lasted from around 1300 AD, stretched across Asia, Europe and Africa, using the Mediterranean as its inner lake.Iraq and Kuwait, on the other hand, were once just a province of the Ottoman Empire, and the name of the province was Basra.After the First World War, the Ottoman Empire was defeated and its power was naturally greatly damaged. Iraq and Kuwait under the influence of the Ottoman Empire also became the colonies of the victorious Britain.But there are differences between colonies and colonies.Kuwait is located just at the mouth of the Persian Gulf, and the British dominated the world with their navy. This mouth of the Persian Gulf naturally became the first place for British colonization, which was basically directly controlled by Britain, and its status was a bit like Singapore in Southeast Asia.Iraq, on the other hand, has a relatively large territory, most of which is in the interior of West Asia. Therefore, the British colonized Iraq indirectly, that is, by supporting proxies.The differences between these two forms of colonization gradually shaped the differences between Kuwait and Iraq.By 1921, when Iraq was officially formed, Kuwait was still under British control.At that time, Iraq was also indirectly colonized by Britain, so it could not compete with Britain, so it had to sign a border agreement with Kuwait in 1932, formally splitting into two countries.After the end of the Second World War, British forces gradually withdrew from the Middle East. Iraq was supported by the Soviet Union, another superpower at that time, and became a stronger country in the Middle East.But there was a great threat to Iraq. The mouth of the Persian Gulf was in Kuwait’s hands.Kuwait and Saudi Arabia are close to the United States.That created a lot of uncertainty about Iraq’s oil exports, so from the time Kuwait was established, Iraq tried to annex Kuwait.The ostensible reason was that Iraq and Kuwait were once part of the Ottoman Province of Basra, and the capital of Basra was in Iraq.Therefore, Iraq has always considered Kuwait to be part of its own territory and its annexation is not annexation but rather “recovery of the homeland”.But the problem is that Kuwait clearly does not see it that way, much less Saudi Arabia and the United States, which are behind Kuwait.If Iraq actually annexed Kuwait and took control of the Persian Gulf, after it had already shown a hostility to the United States.It’s not just Kuwait that’s going to suffer. Saudi Arabia’s oil exports are going to be threatened by Iraq, and America’s position as the world’s petrodollar is going to be affected.Hence the outbreak of the gulf War.Therefore, from this point of view, the reason why Kuwait took the risk of war with the United States and annexed Kuwait at that time was the dispute between Iraq and Saudi Arabia, Kuwait and other countries for access to the sea.And this leads to another key question, that is, the Middle East among the small countries for access to the sea, why the United States will not hesitate to send troops, but after the invasion, not completely defeated Iraq, but just stop?During the whole Gulf War, from Iraq’s annexation of Kuwait, to the United States decisive troops, Saddam was forced to accept mediation, the war declared an end.There are two key questions that go directly to the nature of why Iraq invaded Kuwait.First, why did America intervene so decisively in a middle Eastern contest between small states?Secondly, why did the U.S. troops not solve the Iraqi issue once and for all after the invasion, but stopped the war after Saddam accepted the mediation?On the first question, the key is Saudi Arabia.The dispute between Kuwait and Iraq over access to the sea had, at best, little to do with America.But Saudi Arabia, bound to Kuwait, is very important to the US.It can be said that since the collapse of the Bretton Woods system in 1974, the US global hegemony system has been built on the petrodollar system, and the key to the petrodollar system is the control of oil prices by middle Eastern oil producers represented by Saudi Arabia.Through Saudi Arabia, the United States indirectly controls the pricing power of global oil and energy, thus defeating the Soviet Union in the oil war and dominating the world.But once Iraq annexed Kuwait, its direct control of global oil reserves not only increased, but also control of the Persian Gulf, the mouth of the sea, seriously affecting Saudi oil exports.In this case, the pricing power of global oil energy may be usurped by Iraq, and behind Iraq is the Soviet Union.This was something that the United States could not allow, so after Iraq annexed Kuwait, the United States took decisive measures to send troops, almost without a minute’s delay, in order to avoid losing its oil pricing power.It can also be cited as evidence that the United States did not pursue saddam hussein after he announced that he had accepted mediation.Because in accordance with the trend of later history, the 2003 Iraq war, the United States still removed Saddam Hussein from power, complete control of Iraq.To put it bluntly, in the interests of the United States, keeping Iraq as an unstable factor is very detrimental to the layout of the Middle East.That was true in 2003, and it was certainly true in 1990.In this context, the Soviet Union was a big reason why the United States was able to tolerate Iraq and “recaptured” Kuwait after defeating Saddam Hussein’s forces.During the Gulf War, the Soviet Union did not support Iraq’s annexation of Kuwait, but that was due to international public opinion and its own strength, not because it wanted to abandon Iraq, nor did it want the right to set oil prices.Therefore, before the American invasion, the Soviet Union said that if Iraq withdrew Kuwait, it would continue to protect Iraq.Under such circumstances, if the U.S. continues to win, it is bound to clash with the Soviet Union, which is why the Iraqi issue was not resolved once and for all during the 1991 Gulf War.However, it also proved that in the Gulf War, apart from the interest differences between Iraq, Kuwait and Saudi Arabia for the access to the Persian Gulf, there was also a struggle between the United States and the Soviet Union for global oil pricing power.But the Soviet Union lost the battle and stayed in the background, not the front.Conclusion Since world War II, the Middle East has become the focus of a great power game.Especially during the Cold War, the United States and the Soviet Union repeatedly played games here, and their forces had penetrated into all aspects of the Middle East.The 1990 Gulf War was not so much the result of Iraq’s willingness to annex Kuwait to avoid paying its bills.Rather, it was the last indirect game of global hegemony between the U.S. and the Soviet Union before the collapse of the Soviet Union.Iraq, Kuwait and all the other parties involved in the war are pawns in this great power game.But “chess pieces” also have their own interests, Iraq’s annexation of Kuwait, is between chess pieces, chess players and chess players, the outcome of the interests of all parties entangled collision.