Goldman Sachs: US Faces Credit âDowngradeâ if it Counts Eventual End of War as âDeficit Reductionâ
Claiming Wars Will End Sooner or Later Not a Real Savings
Senate Democrats have issued a new âsavingsâ plan that would nominally pare the projected deficit by overÂ $1 trillion simply by assuming that the costs of the wars in Iraq and Afghanistan will eventually go away by virtue of those wars ending.
This has spawned a myriad of criticism,Â including a leaked Goldman Sachs memo warning that the nation faces a credit downgrade if it tries to use this sort of on-paper gimmick instead of actual cuts in spending.
And indeed, while politicians may be comfortable with the notion that the wars will end at some point in the next decade, it isnât clear at all that this will be the case. Officials are already talking up continuing in Afghanistan long beyond 2014, while the war in Iraq seems set to be extended for âyears to come.â
The memo noted that this war savings was only a problem âwithout a credible follow-on process,â which is to say an actual effort to end those wars. Given strong Democratic opposition to other efforts to end wars (including the ongoing war in Libya), it seems hard to believe officials are looking at doing anything credible about the seemingly endless conflicts.
Last 5 posts by Jason Ditz
- Iraq’s Weekend Deadline Passes, No Deal on US Troops – July 25th, 2011
- New US Envoy: No Rush to Leave Afghanistan – July 25th, 2011
- New Law: Syria Allows Creation of Opposition Parties – July 25th, 2011
- At Least 31 Killed in Pakistani Tribal Area Fighting – July 25th, 2011
- Mullen: US-Pakistan Military Ties at ‘Crossroads’ - July 25th, 2011
- Congress Warned of Credit ‘Downgrade’ if War Savings Counted as Deficit Reduction (foxnews.com)
- A surprise expected request. I bet no one guessed it. (ikners.com)
- US kill rate in war (ikners.com)
- Always plenty of money for a war, but let’s not tell anyone about how much, when or where (ikners.com)
- War winning or ending is always a good election ploy. Afghanistan no different (ikners.com)
- Iraq US deaths highest in 2 years (ikners.com)
- Goldman Sachs Is Now Punishing Personal Emails About Lingerie With Public Humiliation (businessinsider.com)
- Libya War Lies Worse Than Iraq (thetruthiswhere.wordpress.com)
- Letters to the Editor – Weekly Issue of July 25, 2011 (csmonitor.com)
- Prison Planet.com ” An Economy Destroyed: The Enemy Is Washington (gunnyg.wordpress.com)