Iraq, half-trillion-dollar deficit will be drag on US economy

[somapala]

http://thestar.com.my/news/story.asp?file=/2003/9/10/latest/13958Iraqhalf&sec=latest

WASHINGTON (AP) - President George W. Bush's request for US $87 billion in new spending for Iraq and Afghanistan will worsen already gloomy forecasts for the budget deficit - sending it above the half-trillion-dollar mark next year - and could ultimately translate into weaker economic growth in the United States.

That is the assessment of private economists who believe the surging federal deficits, while helping to boost a lagging economic recovery this year and next, will mean trouble down the road in the form of rising interest rates and higher inflation.

This scenario of a classic "guns and butter'' conflict between competing military and domestic priorities was visibly demonstrated in the 1960s when President Lyndon Johnson's "Great Society'' programs ran up against escalating costs for the Vietnam War, triggering higher inflation and rising interest rates.

Bush administration officials, briefing reporters on the details of the president's plan, rejected this bleak scenario.

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[Jacobin]

1. It'll come like snow in the winter

Fricking whackos have wrecked this country.

[Brucey]

2. The Nobel Prize winner in Economics said

what the Stumphead Admin is doing is like "looting!"

[oneighty]

3. If these idiots

had crystal balls that worked we would not be in this mess.

180

[xchrom]

4. yep -- that's the way it is

and of course the powers that be will play americas favorite past time -- how to pass the hurt on to the middle and lower classes.
all the more reason to have progressives in charge -- limit the harm to those who can least afford it.

[belab13]

5. Contrary to what the reaganites will tell you, a little war in Afghanistan

caused the dissolution of the Soviet Union. Our countries arrogance will catch up with us, sooner or later.

[ender]

7. soviet union was done well before afghanistan...

[chaumont58]

6. Yeah, but just think about how much richer Bechtel and .....

Harliburton will be when it is all over. Of course, we all be starving(not on welfare, because there won't be any welfare). George Shultz and Unca Dick Cheney will be just so rich, beyond even their wildest dreams.

[Paschall]

8. The mendacity

"They said the additional US $87 billion that Bush is seeking for military operations and reconstruction will not prevent the administration from achieving its goal of cutting the budget deficit in half over the next five years."

Well, since the budget deficit has been created voluntarily, I suppppppose they might be able to turn the tide. But that's still ignoring the fact that when ShrubCo stepped illegally into the executive branch, there was a budget surplus. Wouldn't it have been nice if the administration's goal had been to double the surplus, instead, to create a "bad weather" fund for the country? Not to mention several dozen federal programs in need of a fix.

[radfringe]

9. we all know

that the $87-billion will turn into alot more, this is just the beginning of more requests

Red-Ink Republicans Ride Again

[cliss]

10. We can't keep this up forever

Already, it seems like the budget deficit is growing every day. Last I heard, it was $$600,000,000,000$$. I think one more year in Iraq, and we will be done for. We'll end up being a Third World Economy, looking for Care Packages from France and Germany.

As far as crony contracts in Iraq: Bush can keep giving huge contracts to his buddies at Bucktel, Hallitosis, Kellog Brownturd and Rootcanal, and WorldCon. But the bottom line is, they'll be signing their own bankruptcy papers because we can't continue like this.

They will bankrupt this country, and they'll seal their own fate in the process. They will have to relocate to Nairobi, and there won't be much business there.

[Dr Fate]

11. Perhaps his "Coalition of the Willing" could pitch in?

The Republicans/Media insited that we had a "Coalition of the Willing" that would help us through these kinds of things-right?

Why cant they come up with some of funds- or was this just one more Bush/Media hoax?-"you decide!"

[JNelson6563]

15. haha Good one!

Aren't we sending Poland some $300 million to help them cover the costs of being one of our valuable allies?

Nice of this misAdministration to buy themselves some pals with our tax $$$.

Julie

[Yavin4]

12. What Kills Me About Budget Deficit Discussions

is the belief that we won't spend beyond $87 billion or that Bush will cut the deficit in half even though he's spent over a trillion dollars in less than three years. We're going to be spending billions of dollars in Iraq without creating new jobs here to pay for it.

There's nothing, N-O-T-H-I-N-G, that Bush has done to show that he will reduce the deficit in any meaningful way. Trusting Bush to cut the deficit is like trusting a crack addict to watch your house while you're away.

[somapala]

13. He is going to be in History in 2004

if There is no Liberman. is competeting against him. if lieberman does . it is end of the Great US

[ProfessorGAC]

14. File This Under "Well, Duh!"

Boy, this sure belabors the obvious.
The Professor

[newyawker99]

16. somapala

Per DU copyright rules
please post only 4
paragraphs from the
news source.

Thank you.


NYer99
DU Moderator

[somapala]

17. Smile Mr Bush You are in Candid Camera