The Pentagon Bailout Fraud

Commentary: How the military-industrial complex may bankrupt the United States.

By Chalmers Johnson

September 29, 2008

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Let's start with the money the Bush administration has already thrown at the war in Iraq. According to the June Congressional testimony of William Beach, director of the Center for Data Analysis, the war has cost $646 billion so far. The new defense budget for 2009 tacks on another $68.6 billion for Iraq and Afghanistan in the coming year. However, military expert Bill Hartung of the New America Foundation puts a conservative estimate of the costs of a single week of the Iraq War at approximately $3.5 billion (or about $180 billion a year).

In other words, the war in Iraq will cost far more in the next year than the Iraq portion of that $68.6 billion Congress is about to pony up in the defense budget, and so will be funded, as has long been true, through supplemental war bills submitted by the Bush administration (and then whatever administration follows). In other words, sometime in 2009 the direct costs of the war the Bush administration once predicted would cost perhaps $50-60 billion in total will stand at more than $800 billion, or $100 billion above the cost (if all goes well, which it won't) of the bailout of the financial system now being proposed in Washington.

Estimates of the true long-term costs of the President's war of choice, including payments of health care and veterans benefits into the distant future, soar into the budgetary stratosphere. They range from the Congressional Budget Office's $1-2 trillion to an estimate by economists Joseph Stiglitz and Linda J. Bilmes of up to $4-5 trillion. So we're talking somewhere between one-and-a-half and seven bailouts-worth of taxpayer dollars flowing into the morass of disaster, corruption, and carnage in Iraq.

And here's another curious bit of information: Just the other day, the website ThinkProgress pointed out a strange glitch in Iraq planning. The Bush administration, deep into negotiations with the Iraqi government, evidently managed to wheedle an extra year's time for the prospective withdrawal of American combat troops from Iraq; its negotiators pushed the date from 2010—the year suggested by both Barack Obama and Iraqi Prime Minister Nouri al-Maliki—to 2011. According to Maliki in an interview with an Iraqi TV station, this change came from the administration's concern over the "domestic situation" in the U.S. (that is, the needs of the McCain campaign).

"Actually," said Maliki, "the final date was really the end of 2010 and the period between the end of 2010 and the end of 2011 was for withdrawing the remaining troops from all of Iraq, but they asked for a change [in date] due to political circumstances related to the [U.S] domestic situation so it will not be said to the end of 2010 followed by one year for withdrawal but the end of 2011 as a final date." So we're talking about another perhaps $150-180 billion in 2011—or approximately the full suggested initial payout in the Washington bailout plan of at least one key Democrat. This gives the phrase "presidential politics" new meaning. Now, just imagine for a moment the situation we might be in if there had been no Iraq War. We could have bailed ourselves out many times over.

As Chalmers Johnson, author most recently of Nemesis: The Last Days of the American Republic, the final volume of his Blowback Trilogy, has pointed out for years, the Pentagon, the military-industrial complex, and America's wars are in the process of bankrupting us. How strange then that, as he indicates below, no one in the mainstream even blinks when a staggering new Pentagon budget sails through the House of Representatives and then, by voice vote, through the Senate just as negotiators in Washington are scrambling to find a similar sum to deal with a catastrophic financial meltdown; nor does anyone in the mainstream bother to make any connection between that budget and the funds we don't have available to use elsewhere, or between the looting of Iraq and the looting of our financial system (and, in both cases, of course, the looting of the American taxpayer). Tom

We Have the Money

If Only We Didn't Waste It on the Defense Budget
By Chalmers Johnson

There has been much moaning, air-sucking, and outrage about the $700 billion that the U.S. government is thinking of throwing away on rich New York bankers who have been ripping us off for the past few years and then letting greed drive their businesses into a variety of ditches. In fact, we dole out similar amounts of money every year in the form of payoffs to the armed services, the military-industrial complex, and powerful senators and representatives allied with the Pentagon.

On Wednesday, September 24th, right in the middle of the fight over billions of taxpayer dollars slated to bail out Wall Street, the House of Representatives passed a $612 billion defense authorization bill for 2009 without a murmur of public protest or any meaningful press comment at all. (The New York Times gave the matter only three short paragraphs buried in a story about another appropriations measure.)

The defense bill includes $68.6 billion to pursue the wars in Iraq and Afghanistan, which is only a down-payment on the full yearly cost of these wars. (The rest will be raised through future supplementary bills.) It also included a 3.9% pay raise for military personnel, and $5 billion in pork-barrel projects not even requested by the administration or the secretary of defense. It also fully funds the Pentagon's request for a radar site in the Czech Republic, a hare-brained scheme sure to infuriate the Russians just as much as a Russian missile base in Cuba once infuriated us. The whole bill passed by a vote of 392-39 and will fly through the Senate, where a similar bill has already been approved. And no one will even think to mention it in the same breath with the discussion of bailout funds for dying investment banks and the like.

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