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

[bbbbmer]

And what brilliant set of economic Einsteins finally deducted that Bush's War for Oil caused, or heavily contributed to, America's current economic woes????? Lord, some people are slow!!!

[thebanana]

Um..you're already in a recession. Your fearless leader just hasn't fessed up yet.

[speakingtruth2power]

A shock to BushCo?

The only shock is that it took so long to accomplish!

Study up on the Bush crime family's Chaos Theory and you'll see eighty years of advancing the cause of fascism AND profiteering along the way.

The failures in Iraq, Afghanistan, Katrina, the environment and the economy are not mistakes! They are planned chaos which the neocons have heavily profited from and when you add in all the spying and loss of freedom , here at home, yo have to admit, fascism has greatly advanced.

[LeftVetPatriot]

WHO KNEW?!

[TotobiAyokoh23]

It is very naive and completely sophomoric to assume that the stupendous amount of money spent in Iraq will have no effect on our economy. And it is also very criminal to engage in a massive war spending in conjunction with massive tax cuts for the rich. While there is no immediate economic returns from the war expenditure, tax cuts for the rich has no immediate multiplier effect on the economy. The resultant effect is a complete reduction in the growth potentials of the economy, hence, the devastating emerging recession.

[HumeSkeptic]

Budget Deficit to Widen to $219 Billion, CBO Says (Update2)

By Brian Faler

Jan. 23 (Bloomberg) -- The U.S. budget deficit will widen to at least $219 billion this year, the most since 2006, as a sagging economy reduces tax revenue, according to a Congressional Budget Office forecast.

The shortfall will be even larger if lawmakers approve a $150 billion economic stimulus plan, which wasn't included in the CBO's projection. The deficit projection also doesn't include all of the funding that may be provided for the wars in Iraq and Afghanistan, which might add another $30 billion in spending, the agency said. The deficit last year was $163 billion.
...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeE5.qjbk5U8&refer=home
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"War funding, which averaged about $93 billion a year from 2003 through 2005, rose to $120 billion in 2006 and $171 billion in 2007 and President George W. Bush has asked for $193 billion in 2008, the nonpartisan office wrote."

http://www.reuters.com/article/asiaCrisis/idUSN23650654
__________­__________­__________­__________

To summarize, out of the $219 Billion projected budget deficit for 2008, Iraq war is responsible for $193 Billion.

[DBlake]

Did prolonged U.S. presence in Iraq lead us into a recession?

http://www.youpolls.com/details.asp?pid=1619
.

[rollingdivision]

The Dow industrials surged 298.98 points, or 2.5%, to 12270.17 after falling more than 300 points earlier in the session. A blistering run by financial stocks resurrected the market. There is no recession, yet. And quite frankly, of course if you wait long enough there will be a recession. It's the consequence of the normal business cycle. To attribute the normal ups and downs to one specific event, in this case the Iraq war has caused a recession, requires much more proof then anyone has presented.

[eddieinc97]

If you still support this President your either stupid or arrogant. Unfortunately we have too many people in this country that are both.

[Ides]

Breaking News: EVERYBODY predicted prolonged US presence in Iraq could spark recession.

[lungfish]

Of course, the key phrase here is "prolonged". These dumbasses in the WH thought that we would liberate, meet and greet and then get on with those fat reconstruction contracts and the serious business of oil profiteeri­ng...
And they were so wrong...
Kinda like a mugger trying to rob someone and getting their ass kicked...
And now we expect these same idiots to fix this recession that they created... geez.
We gave them everything. A balanced budget with a surplus, Patriot Act, war money and the ability to borrow from the Chinese for more funding, etc and they cluster fucked the entire situation.
Bring them down.

[Jane22]

Watching little perky Dana speak the talking points gave me an image of her new name. Little miss Dana Parrot! Every day her handlers tell the little bird what to say and she goes out and parrots it for her masters. She might even believe it herself, but the little well-paid parrot is a fool if she thinks any of us believe it.

Wake up, America. It's time to put food, water, and other survival gear away for the time that's coming-Depression. Peace

[K-Dog76]

UM, its my understanding even Bush said there was going to be a long-term presence in Iraq. Remember WWII and occupying Germany and Japan?????? WE ARE STILL THERE>>>

[SubparDude]

1. Bush uses "borrow & spend" and the GOP rails against Dems as 'Tax & spend."

2. The borrowing escalated until we were actually 'broke' -- ie, in debt over our ears.

3. Meanwhile it cheapens the dollar, so foreign sovereigns/sheiks become our lenders/ATM

4. Next they foreclose.

5. We will wish it was only a recesssion.

6. It is all so sad....

[BBackSoon]

She does manage to stay right on point. And does not ever concede the truth no matter what.

There is a special place in hell for Bush Admin. Press Secretaries.