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The War in Iraq and the American Economy - Princeton University Economics professor Paul Krugman



April 10, 2008 – Comments (19) | RELATED TICKERS: GLD

The biggest issue you should take on before investing is the War. What is your position on the war?

The war is:

1. Driving up commodities

2. Destroying the US dollar

3. Driving up Defense contractor stocks

4. Destroying good will towards America

5. The largest "malinvestment of resources" from the government

6. Destroying the US ground forces and their equipment

7. Driving investors to BRIC, as a "safe haven" to get out of the US dollars

8. Destroying the savings of US savers, by destroying the dollar

9. Creating a "crsis of confidence" in:

    a. the President

    b. the regulator agencies

    c. the dollar

    d. investment banks

    e. the military leadership

    f. the FED

    g. the intelligence agencies

    h. the Congress 

The video is a starting point to making a decision about the war and the impact. 

New York Times columnist and Princeton University Economics professor Paul Krugman visits UC Berkeley to discuss the war on Iraq and the American economy.

1. "we don't have a big enough Army" 

2. "the Iraq adventure is mildly expansionairy in the short run"

19 Comments – Post Your Own

#1) On April 10, 2008 at 3:58 PM, stillwaiting0410 (< 20) wrote:

I love to gamble blackjack is the best game for me, I do win more at the casino, just paid IRS off for my gains, from the slots play $5. & $10. machines this is where you can win. Love the black jack tables at Mohegan Sun. anyways thanks for you tip about my 500 , maybe I'll take this savings and put it into my granddaughters collage fund account , and take the gamble that she's going to collage (lol) enjoy your day & game.

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#2) On April 10, 2008 at 4:05 PM, lquadland10 (< 20) wrote:

Now we have the figures for Iraq. Can you find me the answers for the total cost we have for Afghanistan, Iraq, and all the other Bases around the world from 9/11 on? Also can you break down the cost of our military prior to 9/11.Then what is the cost the first year and each year after and including Afghanistan and Iraq only. I also would like to know all the money from that time that went to MEXICO,Pakistan, IRAN yes we gave money to IRAN, SAUDI ARABIA, Egypt.Just thinking about something.

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#3) On April 10, 2008 at 4:17 PM, leohaas (29.35) wrote:

abitare, you continue to amaze me. Now you are quoting a die-hard liberal like Krugman...

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#4) On April 10, 2008 at 4:17 PM, abitare (29.90) wrote:


If you only have $500, you need to find a job or more work. $500 may not buy a cup of coffee in a few years.


That is big task give me some time. 

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#5) On April 10, 2008 at 4:43 PM, abitare (29.90) wrote:


Like most Americans I am an independent and moderate. I do not fit into the "liberal" or "conservative" collectives created by the media. 

I can listen to Krugman and draw my own conclusions. He does not say anything to me that seems inaccurate here.

The best free source of video information on the war IMO is here: PBS Frontline

Start with: The Dark Side 

FYI - As for me, I have lived outside of the US for years and have traveled to 25+ countries, in Africa, Europe and Asia. I have read: Fiasco, Cobra II, Bright Shinning Lie, About Face, Dereliction of Duty etc...and seen about every documentary on Iraq.  

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#6) On April 10, 2008 at 5:49 PM, EScroogeJr (< 20) wrote:

All of the above.

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#7) On April 10, 2008 at 6:01 PM, lquadland10 (< 20) wrote:

Thanks Aba, You are my HERO. Ops.. I forgot one more little tinsy wincy part of the Question.  I can't seem to find any information on what the health care cost have been since 9/11 and the 2 wars and because this will be on going for the life time of the injured vet. what are the future cost for our brave military personal who give so much. No one seems to factor this into the cost either. Have you ever been to Peru?  Maybe gone to Iquitos and explored the Amazon river? It is quite a sight. To bad 5 years later it has changed quite a bit with more logging. Sometimes I wonder just how much and what kind of growth is needed. What is progress and does it need to be so fast? What part of Asia and Africa?  I need to start dreaming and working on being able to travel more. After I take care of my father. Now to the viedo onPBS. Thanks Aba.

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#8) On April 10, 2008 at 6:03 PM, motleyanimal (39.46) wrote:

Yeeee Gawds!

Now I know things are bad when Krugman begins to sound reasonable to me!

Tonight I shall be flagellating myself with a copy of Friedman's "A Monetary History of the United States" in hope that it may drive the demon from my brain.


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#9) On April 10, 2008 at 7:04 PM, abitare (29.90) wrote:


Good to hear. Although we are on different planets with real estate etc... :)


I have not made it to South America, unfortunately. I have been to about 5 countries in Africa and about 6 in Asia. 


Although I suspect Friedman might be guilty of treason, I did read two of his books. The World is Flat - is a must read, but do not buy it as some money might reach Friedman. I also saw a great counter to Friedman's WIF propaganda, by the author of the book Bad Samairitian.

Friedman can be funny:

"Rules Kids Won't Learn in School,

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#10) On April 10, 2008 at 7:13 PM, abitare (29.90) wrote:

Sorry bad link: But this is funny enough to post:

Thomas Friedman, a columnist for the New York Times (and author of several best selling books on foreiogn policy) was the graduation speaker at Rensselaer Polytechnic Institute this year.... and cited some of the "Rules Kids Won't Learn in School,", which he apparently thinks are somewhat harsh, but likes anyway.


Here's the full text of his speech... and here's the relevant passage:


"It’s always a struggle to figure out what to say to a graduating class.  Should I be brutally frank about the world you are about to enter or gently inspiring or lovingly sentimental?  Because this is my first visit to Rensselaer, I thought today that I’d better cover all my bases and give three speeches, one brutal, one inspiring, and one sentimental.  I can’t go wrong.


Let’s start with a dose of brutality.  Not being a particularly brutal person myself, I decided to borrow some in-your-face rules of life written by Charles Sykes, the author of Dumbing Down Our Kids.  He has many such rules.  I’ll just offer five to you as you leave these hallowed grounds for the real world.  

Rule One: If you think your teacher is tough, wait ’til you get a boss.  He doesn’t have tenure.

Rule Two: Before you were born your parents weren’t as boring as they are now.  They got that way from paying your bills, cleaning your clothes, and listening to you talk about how cool you are.  So before you save the rain forest from the parasites of your parents’ generation, try cleaning the closet in your own room. 

Rule Three: Your school may have done away with winners and losers but life has not.  In some schools, they have abolished failing grades and they will give you as many times as you want to get the right answer.  This does not bear the slightest resemblance to anything you will encounter in the real world.

 Rule Four: The world won’t care about your self-esteem.  The world will actually expect you to accomplish something before you feel good about yourself.

Rule Five: (And this one should at least make some people here happy) Be nice to nerds.  Chances are you will be working for one.

Okay, now that I’ve toughened you up a little it’s time to inspire you if I can."

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#11) On April 10, 2008 at 7:34 PM, lquadland10 (< 20) wrote:

He is right on this one.

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#12) On April 10, 2008 at 9:45 PM, dwot (29.67) wrote:

The war has robbed the next generation of their future.

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#13) On April 11, 2008 at 7:17 AM, abitare (29.90) wrote:


Yep, it might create another currency for the US if this one is destroyed. "Not worth a continential" they said about the first US currency. 

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#14) On April 11, 2008 at 8:07 AM, abitare (29.90) wrote:


Iraq War: 5 Years Later (Slideshow + The Onion Articles) 


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#15) On April 11, 2008 at 2:40 PM, GS751 (26.91) wrote:

I am extremly angry at what policy makers have done to my generation, I am 18.  I hear all these guys in their 50's talking about policy and the war and its like who's wages are gonna pay for all this stuff???? Mine.

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#16) On April 11, 2008 at 2:50 PM, abitare (29.90) wrote:


No doubt. As dwot said, the next generation is being robbed. The lifestyle of their parents and grandparents will be tougher to achieve, based on the governments expected pay out of SS and Medicare benfits.

FYI - In Italy, an estimated 20% of Italians work outside of the country.  There are many reasons, but one is the tax burden to pay government largess in Italy, makes it difficult to keep your income or to get ahead. 

My recommendation to you is to focus on trying to gain a skill set where you can work for cash or have your own business. In Italy, and other socialist countries, working for cash or having your own business is the best way to get ahead.    

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#17) On April 11, 2008 at 3:12 PM, abitare (29.90) wrote:

The War in Iraq Costs

National Priorities Project analyzes and clarifies federal data so that people can understand and influence how their tax dollars are spent.

Consider the costs...
$4,681 per household.$1,721 per person.$341.4 million per day.

Of interest digg comments:

"Buried.. Inaccurate.. 100% of your tax money goes toward paying the interest on our massive debt. "

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#18) On April 11, 2008 at 3:18 PM, abitare (29.90) wrote:

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
~ Woodrow Wilson, after signing the Federal Reserve Act of 1913.

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#19) On April 11, 2008 at 6:01 PM, lquadland10 (< 20) wrote:

~ Woodrow Wilson, after signing the Federal Reserve Act of 1913. So true.    Now if we only pay cash and not use debit cards,credit cards, save and pay cash for cars or home. If your can't pay with cash do without.     If only the  Fed will raise the lending rate it  would make our dollar worth more. ALAS, he won't.                                                                        So how much more will we owe when the Fed lowers the rates again to save the banks instead of the rest of the bussiness in this country not to mention the people.                                                   Consider the costs...
$4,681 per household.$1,721 per person.$341.4 million per day. What will the new figures be?

"Buried.. Inaccurate.. 100% of your tax money goes toward paying the interest on our massive debt. Hum......... sounds like the housing market. Buy your home and pay interest only on the loan for 5 years.  I said it before and I will say it again, recession???????? please.........  DEPRESSION.

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