Economists Predicted Prolonged US Presence In Iraq Could Spark Recession

In yesterday's press briefing, a reporter asked White House Press Secretary Dana Perino about the tie between the current U.S. economy and the Iraq war. Perino quickly dismissed the reporter's question, insisting that the U.S. economy has been "very strong" and adding that the money was necessary to "take the fight to the enemy" after 9/11...

...Oil prices are at approximately $88 a barrel, although they have dropped from the record high of $100 earlier this month. As Nobel laureate Joseph Stiglitz recently noted in Vanity Fair, "The soaring price of oil is clearly related to the Iraq war. The issue is not whether to blame the war for this but simply how much to blame it."

Before the war, economists were predicting that oil prices at just $75 a barrel could potentially send the U.S. economy into a recession. Therefore, the current economic situation should not come as a complete shock to the Bush administration.

Read more, and watch video, here.

Comments

[Meah]

Why does Congress keep giving Halliburton our money? We are going broke letting them live the life of Reilly. These guys belong in jail for robbery of the American people. Our tax dollars are being protected by the IRS? Who is counting the money and controlling the greed? And who is exploiting our soldiers? It all starts at the top, does it not?

[researcher]

could it be karma?

no way this is god's country and war mongering for corp. profits is part of god's plan for evangels.

bet the recession has not hit the industrial military complex corp. profits or the corp. oil folks.

[eddiestardust]

Forget the idiot Economists for they subscribe to voodoo economics.

Seriously though, anyone could have predicted this..it happened in the 1970's and into 1980 and it's the result of ....

Being in a WAR but deciding NOT to pay for it and Stagflation, extremely high interest rates and higher unemployment.

Sadly, I'm afraid it's going to get worse before it gets better!

[oldcitizen]

Why does the Washington press corps bother to listen to, question or report anything that Dana Perino says. Like Snow Job Tony before her, she is a shill for the White House and no matter what the factual evidence indicates Perino always tries to "spin" it so that it is favorable to the administration. In other words, she is a low ranking liar dismissing all criticism of the high ranking liars that keep insulting the American people and the dignity of their once highly respected offices.

[Chupacabras]

I hope Oliver Stone's upcoming movie about our brightest Prez. ever includes this chapter...­uummm, lets see:

Advisor: "Mr. President, our econoic advisors have warned us that the war can produce a speculative mindset in the oil trading exchanges, and they belive anything over $75/barrel can slow down the economy, in fact even bring on a recession"

Prez.: "...eeeeeh­hhhhh...we­ll, bring it on, bring it on. We'll show 'em...uuum­mmm, I'm the decider, and I say we can take $750/barrel. Saddam us an evildoer with them nukes, er, mushroom clouds, yeah, in 45 minutes...­World War III..."

In Mr. Stone's tradition it will be a top dollar production, I just wonder if by then I'll have $10 for the movie ticket!

[realitytrumpsbull]

Suck all the cash out of the NasheKonme, then you're overseas training your thug army on other countries' citizens, then you come back and you've got the dough, AND you've got the gunz....wo­ohoo! Caliphate Of American States, here we come...wal­king arm-in-arm with Prince Texaco, there...

[WASanford]

Every time Congress gives this president the billions of dollars needed to extend our occupation of Iraq, those dollars have to be borrowed and Joe six-pack (Remember me?) takes one on the chin. Those dollars enter our economy without a commensurate creation of wealth. In other words they are inflationary! Their effect is to increase the price of everything except our wages, creating a serious decline in the quality of life for most Americans.
.
We’re already losing our homes to something called the housing bubble and with the cost of gasoline rising, driving our Hummers is becoming an unaffordable luxury. Some Americans already have to make a decision between eating and driving to work.

If the inhumanities occurring in Iraq because we’re there don’t bother you, if you think global warming is just a scare tactic, then consider the above statement. That six-pack of tall cool ones is rapidly changing into a 12 ounce single!


Revolution does not happen on a whim, it is born from human desperation.

[research]

2 trillion dollars of blood and treasure dumped in the desert probably hurts the economy, huh.

[MIKEBC]

WE NEED TO END THE WAR, STOP THE GOP EMPIRE BUILDING, RESTORE THE CONSTITUTION, AND BRING US BACK TO AN AMERICA WE CAN BE PROUD OF!

[Wulfstan]

Selling more Treasury Bills ain't gonna solve this problem. Now the elite rich have all the money, what are they gonna do with it ? Go for rides on SpaceShip2

[Wulfstan]

Rich people don't care about recessions. In fact it is a chance to buy stuff cheaply. Like foreclosed property.

[OhgReaTone]

As our life savings are drying up in the deserts of a foreign country the Bush Bunch are planning on filling the 'old family coffers' after the administration is out of office.
Ohg
http://thefiresidepost.com/2008/01/24/stimulating-economy-stimulating-hope/

[TXfemmom]

The cost of this war, which many believe is actually already a TRILLION AND A HALF, along with Bush's tax cuts for the rich, is why we are in the mess we are in.

We shall never, ever be able to continue the costs of this war and think that the economy would be able to recover.

[americaforme]

What did our fearless leaders do?? Congress cranked up the votes,200 billion at a crack, for FIVE years to (support the troops). Where did Pres. think that kind of money was going to come from? I hate to think he didn't care...Eve­ry time Congress was bullied into more BILLIONS, this old Grandma would gasp...Two years ago all credit lines jumped 10k, we all took the bait,and helped the economy...­One major hayday of spending..­.Who did these brilliant ideas help, you figure it out...I gotta go and pay my oil bill.

[Tom95134]

Clearly, this is the final phase of Bush/Cheney/Rummy plan for keeping troops stationed and fighting in Iraq for a very long time because there aren't going to be any jobs for them to come home to.