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...Even before the auction, analysts warned that Iraq's plans for attracting the investment necessary to crank up its output were overly optimistic. Iraq plans to retain ownership of its oil, but make long-term agreements with foreign companies to run the operations. But Oil Minister Hussein Shahristani demanded that oil companies lower their profit expectations, offering to pay them $2 for every barrel pumped in Iraq rather than the $4-a-barrel rate sought by oil executives. Chevron, which had negotiated for a year to develop Iraq's second-biggest field, West Qurna, pulled out of the deal...

Author: /time Magazine | Title: The Reasons Behind Big Oil Declining Iraq's Riches | 7/2/2009 | See Source »

...January. While that might under normal circumstances make any stimulus more popular, voters have been spooked by the enormous deficits Washington is running up as it tries to right the economy. In 2009 alone, the U.S. government will take on debt equal to about 13% of its economic output, and by 2016 the U.S. debt is projected to top 70% of GDP, twice the 2000 level. Poll after poll has shown a steady erosion of confidence in the stimulus measure; one survey found that 45% of voters believe it should be abandoned midstream...

Author: /time Magazine | Title: What Happened to the Stimulus? | 7/1/2009 | See Source »

Japan's hard-hit economy this week got a double dose of mildly good news. According to official figures released June 29, Japanese industrial output jumped nearly 6% in May, matching the largest monthly increase since 1953. And on July 1, the much-watched tankan survey, which measures sentiment among Japan's largest manufacturers, improved for the first time in two-and-a-half years, indicating confidence in the country's economic prospects is starting to grow...

Author: /time Magazine | Title: Japan's Economic Green Shoots Could Wither Fast | 7/1/2009 | See Source »

...while it may be true that Japan has seen the depths of its worst postwar recession, economists say things are still far from good - and a "double-dip" recession is an increasingly likely outcome. "It will take several years, not one or two years, before Japan's output gap, or economic slack, disappears," says JPMorgan chief economist Masaaki Kanno. "Deflation and high unemployment will last for a long time. The question is whether the economy will continue to grow for several years without having the double dip." (See pictures of Japan in the 1980s and today...

Author: /time Magazine | Title: Japan's Economic Green Shoots Could Wither Fast | 7/1/2009 | See Source »

...while industrial output in the world's second-largest economy jumped 5.9% in May - the third consecutive month-to-month increase - output remains down nearly 30% compared with May, 2008. "Currently, the recovery is boosted by global destocking and the government economic-stimulus measures," says Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo. "If [those] fade away, it's possible for the [economy] to go down again." (See 10 things to do in Tokyo...

Author: /time Magazine | Title: Japan's Economic Green Shoots Could Wither Fast | 7/1/2009 | See Source »

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