U.S. economists see long-term ills from Iraq war

[sabra]

Source: Reuters

<snip>

Money was not much of an issue five years ago when President George W. Bush led the country into war in Iraq. Instead, all eyes were on allegations, later proven unfounded, that then-Iraqi President Saddam Hussein had weapons of mass destruction and could use them against the United States.

But $500 billion later, experts worry about the impact on the world's biggest economy, already facing a crippling housing crisis.

"The short-term economic consequences of the war have been manageable and modest. But the long-term consequences will be substantial," said Mark Zandi, chief economist of Moody's Economy.com.

Much of the problem, economists say, is that every month of combat adds more than $10 billion to a U.S. debt that now tops $9 trillion.

"Extra government debt is undoubtedly a bad thing for our economic performance in the long run," said Doug Elmendorf, senior fellow at the Brookings Institution and a former economist for the Federal Reserve Board.

Read more: http://www.reuters.com/article/featuredCrisis/idUSN12513456

[LynnTheDem]

1. Oh yeah. And it ain't just financial by a very long shot.

It's called BLOWBACK. and it's gonna be one fuck of a bitch.

[KansDem]

2. Wow!!! Ya think? And it took "experts" to figure this out?

I'm underwhelmed! :wow:

[Doctor_J]

3. These guys are freakin' genii

First they tell us we might be in a recession, now this! When we're done locking up the entire * administration, economists might be an excellent second group to take out of society. Paul Krugman, Jeff Faux, and Doug Henwood would be exempt.

[ozone_man]

4. The debt bubble begins to pop.

It's going to be an accelerating downward spiral as all of these derivatives unwind. We've been living off an economy fueled by cheap credit that about to meet reality in the form of a giant margin call.

[grahamhgreen]

5. or "War Profiteers see long-term advantage from iraq war"

[Yavin4]

6. That's It!! I Want A Job As An Economist!!!

All you have to do is state the friggin obvious, and people think that you're a genius?

Wars cost a lot of money, and America will have a hard time paying for it.

[RedEarth]

7. Don't tell the right wing... it might rain on their parade,

but then again, they probably wouldn't understand.

[ConcernedCanuk]

8. The Soviet Union broke up as a result of protracted wars they could not win

.
.
.

North America may be better off if the USA were broke up in such a fashion.

Almost 50-50 split between left and right

And I think Mexico and Canada would welcome a diverse collection of countries in between rather than the massive warmongering nation that lies to Canada's south, and Mexico's north.

And I think there just might be a few USAmericans that would like some independence from the warlords also.

The present US Department of Defense is more a Department of War.

They are not defending anyone other than Corporate greed.

The DOD is just flexing it's muscle, all over the globe.

And I for one do not like it,

Nor am I impressed.

[Angela Shelley]

9. I agree with you

:-)

[newfie11]

19. Well now the Lakota are working on it!

Part of SD and NE would secede from the US.

[ConcernedCanuk]

27. I've read about that - trying to get the past treaties honored.

.
.
.

They have my best wishes on that - I am definitely on the side of the natives, even though I am not one.

It was only a few centuries ago that this continent was theirs.

Would be one thing if we had made it a better place, instead of driving species like the buffalo to extinction, and poisoning the land, air and water.

But we didn't make it better, and harmed the natives by taking away their food sources, and replacing them with OUR food which causes the natives diseases unknown before our arrival.

I am not proud to be part of this.

[pokercat999]

24. A kindred spirit! I've been advocating the break up of

the US into 2 or 3 separate countries for the last few years. I thought I was a lone voice in the wilderness.

[ConcernedCanuk]

28. I think it would be best for the continent AND the World.

.
.
.

And it would not be too hard to make the divisions, political persuasions appear to have geographical similarities.

I think California should be a country on it's own.

Another block of states on the Eastern North to be a country on it's own.

Again another block along the Canadian Border

And another centering around Texas.

4 countries - that's how I see a realistic division.

It's gonna happen, either voluntarily or not.

Most likely not in the scenario I put above,

but hopefully close.

The World isn't gonna put up with the USA's aggression much longer.

We are at the point where we are willing to take our chances with the USA's threat of nuclear armageddon to just get rid of them.

That's my Canuk Opinion.

[coalition_unwilling]

30. The United States of Canada and Jesus-Land -n/t

[callous taoboy]

10. Mepublicans, like my dad, don't see it this way...

My dad blames all of our economic woes on gas prices
which he blames on the oil futures fellows egging
the price upward.

[denverbill]

17. You might explain that oil prices haven't really risen.

At least, not nearly as much as he might think.

It's the dollar dropping like a rock that is to blame, and the fall in the dollar is due in no small part to the enormous budget deficits run up by Bush with his tax cuts, and the huge spending increases on the war and earmarks passed by the Republican Congress during Shrubby's first 6 years.

6 years ago, one euro was worth $.80. Now, it's worth over $1.55. THAT wasn't caused by oil prices. It was caused by the Republicans.

[DCKit]

23. What would be especially enlightening...

and if Mom does all the shopping and he hasn't been in a grocery store since a gallon of milk cost $1.56 and a dozen eggs were $0.45.... I wonder if he'd just blame the greedy cows and chickens.

[Zorra]

11. Not to worry. Bu*h will start another war to jumpstart the economy in

order to pay for the mess in Iraq.

Republican economics - no ideas, no solutions.

[al bupp]

12. The latest issue of Vanity Fair

has an article on this, an excerpt from a forth-coming book which "conservatively" estimates the total costs for the Iraq war at 3 Trillion dollars. It's well worth the read.

http://www.vanityfair.com/politics/features/2008/04/stiglitz200804

[onehandle]

13. The war will be paid for by Iraqi Oil.

Dick said so.

[pokercat999]

25. I just caught a line in the "news" on the radio yesterday.

The Iraq government is running a budget SURPLUS!

[damntexdem]

14. The Bushistas well and truly fucked us over.

And we will be a long time recovering, even if we can get the GOP out of any real power this November.

If we can't do that, better start learning Chinese!

[daleo]

15. Guns or butter

Sooner or later, that's always the choice.

[CubicleGuy]

16. There's an inaccuracy in the very first line of the article

It says "Money was not much of an issue five years ago when President George W. Bush led the country into war in Iraq."

What it should say, to be accurate, is "Money was not much of an issue five years ago when President George W. Bush lied the country into war in Iraq."

[tanyev]

18. And add, "thanks to the surplus he inherited when he took office".

[Amonester]

31. Good catch!

Probably was a typo by the right-wing shill, posing as a "Journalist"

[bronxiteforever]

20. Someone should clue in genius Robert Samuelson.

He recently wrote an article saying the war cost doesn't matter, drop in the bucket.His economic plan is keep cutting taxes for the rich and give up your social security.:argh:

[JBoy]

21. A war with Iran will fix that. n/t

[DeepModem Mom]

22. K&R

[pokercat999]

26. Last line of the article.

"Americans will have to pay for the war at some point—and when they do, they will be paying not the Bush markdown but the full price".


And you can bet it will be those "tax and spend" democrats that will bare the brunt of the blame when those taxes have to be collected.

[Lost4words]

29. but it was supposed to pay for itself and over in 6 days.

but where were the democrats? Towing the puke line of course.