Wednesday, February 03, 2010
How Bin Laden Bankrupted America
The five ways
by Jon Basil Utley
First, financing the wars with debt was the final straw that broke the camel's back. No one knew how much debt would break America, but doubling the national debt from $5 trillion to $10 trillion, with new trillions being borrowed now, finally did it.
Second, the destruction of Iraq, and Bush's constant threats to start bombing Iran, which could have closed down the Strait of Hormuz, brought about sky-high oil prices, which then busted world prosperity.
Third, all of Washington's attention was absorbed by the wars, leaving little time or energy for dull domestic issues such as debating reforms to the financial markets
Fourth was the toxic alliance of neoconservatives and religious fundamentalists
Fifth, war spending deficits were in effect a massive Keynesian pump-priming operation, bound in the end to leave an economic hangover