Taking into account a direct cost of almost $900m for the Iraq war and other economic considerations, interest costs and the cost for lives lost, the total outlay for the last four years for the Afghani and Iraqi wars, comes to a mere $1.6trillion. Mr Bush sure knows how to spend, spending at a rate of roughly 200% of congressional budget limits.
To put this into perspective, the cost of these unwon, high-maintenance and very messy wars, exceeds $20,000 per US (four person) household. Not bad when you also consider that at over $9trillion, US public debt is now at $30,000 per US citizen.
Can the US really afford more war costs?
Well the middle-east war bill over the next 5 years, is projected to reach $3.5trillion or $40,000 per US household.
This all comes at a time when the US economy is suffering a huge mortgage default rate with over $1trillion in defaults against a $10trillion home mortgage market. That is a very material consideration in an economy that is reeling from declining dollar sentiments, dangerously high oil prices (close to $100 per barrel), profit shocks for major US multinationals (GM lost $39bn last quarter), increasing environmental costs, deteriorating political conditions in the middle east and UN leader Banki Moon's prediction that the world stands on an environmental precipice.
With 2008 being a US election year, the big strategic players couldn't hope for a better moment to exploit the fluidity of the middle east .... than in what is fast emerging as a highly significant period in world history.
The US has long been a moderating buffer to Russian and other expansionary forces in the middle east. I do not relish the thought of a Russian-Iranian alliance exploiting the dangerous power vacuum that has become Iraq, but its vast oil deposits promise an attractive return on investment for any well-timed military initiative.
To put this into perspective, the cost of these unwon, high-maintenance and very messy wars, exceeds $20,000 per US (four person) household. Not bad when you also consider that at over $9trillion, US public debt is now at $30,000 per US citizen.
Can the US really afford more war costs?
Well the middle-east war bill over the next 5 years, is projected to reach $3.5trillion or $40,000 per US household.
This all comes at a time when the US economy is suffering a huge mortgage default rate with over $1trillion in defaults against a $10trillion home mortgage market. That is a very material consideration in an economy that is reeling from declining dollar sentiments, dangerously high oil prices (close to $100 per barrel), profit shocks for major US multinationals (GM lost $39bn last quarter), increasing environmental costs, deteriorating political conditions in the middle east and UN leader Banki Moon's prediction that the world stands on an environmental precipice.
With 2008 being a US election year, the big strategic players couldn't hope for a better moment to exploit the fluidity of the middle east .... than in what is fast emerging as a highly significant period in world history.
The US has long been a moderating buffer to Russian and other expansionary forces in the middle east. I do not relish the thought of a Russian-Iranian alliance exploiting the dangerous power vacuum that has become Iraq, but its vast oil deposits promise an attractive return on investment for any well-timed military initiative.
(c) Peter Eleazar, www.bethelstone.com
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