Diagnosis for the U.S. Budget – Fiscal Cancer

After taking a look at Bush’s Budget, David Walker, head of the Government Accountability Office, has diagnosed the U.S. economy as suffering from “fiscal cancer.”

This past weekend, on an appearance on Bloomberg TV, Walker said, “We don’t face an immediate heart attack, but we have been diagnosed with fiscal cancer and we need to start treating it.”

Walker also said he “would not be surprised” if Iraq war costs ultimately top USD $1 trillion.

“We don’t know how long we’re going to be there – we’ve already been there longer than we thought,” he said. “Secondly, we’re going to end up having to replace a lot of equipment and refurbish a lot of equipment, reposition a lot of troops whenever this conflict comes to an end.”

Here’s our quote of the day, as heard from CBS News: “The situation in Iraq isn’t hopeless. We can win there, if we just stop the violence.”

Try to wrap your head around that one.

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.

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