TV News LIES

Wednesday, Jul 01st

Last update11:16:46 PM GMT

You are here News Economy Iraq war 'caused slowdown in the US'

Iraq war 'caused slowdown in the US'

E-mail Print PDF

THE Iraq war has cost the US 50-60 times more than the Bush administration predicted and was a central cause of the sub-prime banking crisis threatening the world economy, according to Nobel Prize-winning economist Joseph Stiglitz.

Professor Stiglitz told the Chatham House think tank in London that the Bush White House was currently estimating the cost of the war at about $US500 billion, but that figure massively understated things such as the medical and welfare costs of US military servicemen.

The spending on Iraq was a hidden cause of the current credit crunch because the US central bank responded to the massive financial drain of the war by flooding the American economy with cheap credit.

"The regulators were looking the other way and money was being lent to anybody this side of a life-support system," he said.

That led to a housing bubble and a consumption boom, and the fallout was plunging the US economy into recession and saddling the next US president with the biggest budget deficit in history, he said.

More... 


Most Recent Related Stories...


Obama acts to extend overtime pay for millions

ObamaSalaried workers who earn nearly $1,000 per week would become eligible for overtime pay under a...

Gap closing 175 stores to be more 'vibrant'

Gap closing 175 storesGap announced Monday it will close a quarter of its stores and cut 250 corporate jobs...

Massachusetts Home Care Workers Win Fight For $15

Home care workersMassachusetts home care workers have notched the latest victory in the Fight for $15.Under an agreement...

Oregon Becomes Fourth State To Pass Law Guaranteeing Paid Sick Days

paid sick days passes in OregonOn Friday, Oregon’s state House passed a bill that would require most employers to offer five...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!