Moon of Alabama Brecht quote
April 27, 2006
War Costs

The non-partisan Congressional Research Service has made a new estimate for the costs of the War on Iraq and War on Afghanistan. Like often, the Washington Post, in reporting this buries, the lead and the day’s real headline in the second last paragraph of a page A16 story:

Of the total war spending, the CRS analysis found $4 billion that could not be tracked. It did identify $2.5 billion diverted from other spending authorizations in 2001 and 2002 to prepare for the invasion.

To my knowledge, this makes the CRS report the first official one to confirm the invasion of Iraq has been actively persued since 2001. Old news you may say, but so far there were only anonymous sources and very few named people who had alleged this.

Now this is officialy acknowledged in a non-partisan report to Congress. Why does that fact not deserve an A01 headline?

To answer that question seems to be above my capabilities.

So let us take a look at the reported CRS estimate. It does include some money for diplomatic issues, but not longterm health and benefit costs for veterans like some other recent studies did.

The CRS comes away with $320 billion for Iraq after the recent emergency spending bill will have passed. But that is only the money needed up to this point. Even with troop reductions beginning this year, CRS estimates the total costs for War on Iraq and Afghanistan at $811 billion. Though troop number were much higher then, the inflation adjusted Vietnam total was a cheap $549 billion.

Still, this is only some $6,300 per taxpayer, $105 per month over 5 years. The U.S. will not go bankcrupt spending this, but it is an investment that is unlikely to give a good return, if any at all.

The more important economic impact is through gas prices. The war tax or "risk premium" included in crude prices these days may be some $25 per barrel or, with U.S. consumption at 22 million barrels per day, $550 million per day. Over five years this accumulates to a decent 1 Trillion (that is a one with twelve zeroes) U.S. Dollars.

Part of this sum, like part of the war costs, will go back to U.S. pockets. But only to those people who own Exxon Mobil or Halliburton shares.

This is probably the biggest transfer of wealth from the people to an elite the world has ever seen.

What is most disturbing to me in the CRS study is the intransparency of the spending.

"Although DOD has a financial system that tracks funds for each operation once they are obligated — as pay or contractual costs — DOD has not sent Congress the semiannual reports with cumulative and current obligations for [Iraq] and [Afghanistan], or estimates for the next year, or for the next five years that are required by statute," the CRS noted.

The Defense Department is, illegally, blocking any oversight.

The report goes on to outline a series of "key war cost questions" for Congress to pursue and "major unknowns" that CRS has not been able to answer: How much has Congress appropriated for each theater of war? How much has the Pentagon obligated for each mission per month? What will future costs be? How much will it cost to repair and replace equipment? And how can Congress receive accurate information on past and future troop levels?

CRS is the Congress’ and the people’s controlling element that must find answers to these questions. I find it incredible that they are not able to do so, even if they put specific efforts into it.

Of the total war spending, the CRS analysis found $4 billion that could not be tracked.

Could not be tracked? Four billion? That may be small change in the bigger picture, still, where did Rumsfeld spend that money?

Your guess?

Comments

billion, trillion, smillion. fiat currency. china may as well stash monopololy money.

Posted by: DM | Apr 27 2006 9:02 utc | 1

Great post, Bernhard! You put it all together. Stories like this should be on the front page of every newspaper in the world. I hope this story gets linked to from all around the blogophere. Again, simply great. One of the most important posts ever.

Posted by: Malooga | Apr 27 2006 11:38 utc | 2

CRS analysis found Four billion?
Four Billion? Truth be known try 2.2 trillion. Damn fine work b.

Posted by: Uncle $cam | Apr 27 2006 13:34 utc | 3

Damned good work putting this together, Bernhard. I’m not sure now why my blood is boiling… this story or the fact that professional journalists can’t be bothered to do this kind of legwork so only a few dozen people will ever hear about it.

Posted by: Monolycus | Apr 27 2006 14:49 utc | 4

Let’s all go out on the web and post comments and link back to this.

Posted by: Malooga | Apr 27 2006 14:58 utc | 5

Exxon Mobil profit rises on soaring prices

Exxon Mobil Corp., the world’s largest publicly traded oil company, on Thursday reported quarterly profit surged, driven by rising oil prices.
Net income in the first quarter was $8.4 billion, or $1.37 a share, up from $7.86 billion, or $1.22 a share, a year earlier.

Posted by: b | Apr 27 2006 15:06 utc | 6

Well, I sent it out in an email but I also left a “spare” copy at the printer…

Posted by: beq | Apr 27 2006 16:24 utc | 7

Last year, Exxon Mobil made enough money to buy Porsche. Not just any number of Porsches but the entire company. Their net profits were more than the entire assets of Porsche AG.
Face it, those f*ckers own us.

Posted by: ralphieboy | Apr 27 2006 17:14 utc | 8

Great one b, will try and get this around — especially this:
This is probably the biggest transfer of wealth from the people to an elite the world has ever seen.
I wonder, do you think part of that 2.5 (unauthorized) billions for war preparations, was in some part spent on a detailed and calculated accounting of the potential windfall profits to be gained from going to war? That a nice balance sheet was prepared in advance of selling the world on the idea for very different reasons. And that they knew by the time this engine finally crashed and burned from its own inertia — that they would have managed still, to have made A FUCKING TRILLION DOLLARS, on the deal.

Posted by: anna missed | Apr 27 2006 17:45 utc | 9

hm, i posted but it didn’t post. maybe i forgot to hit post. excuse me if this shows up twice.
last night i read this b. woke up this morning wondering if 4 bill was enough to fund a private or personal nuclear missle system , hidden w/in the middle east, say inside the 100 acre ’embassy’
you should cross post @kos

Posted by: annie | Apr 27 2006 17:46 utc | 10

woke up this morning wondering if 4 bill was enough to fund a private or personal nuclear missle system , hidden w/in the middle east, say inside the 100 acre ’embassy’
Unlikely. A missle system and a nuke are two different lines of tech. There are enough nukes available in the US and enough secret labs to refurbush some to cover up the nucleotic “fingerprint”. The embassy is too dangerous territory. Some Swiss bankaccounts or covered operations elsewhere sound more possible to me.

I did crosspost at Dkos. Please recommend.

Posted by: b | Apr 27 2006 17:58 utc | 11

great post b, thanks.
And what about the missing trillions before 9/11, as pointed to by different parties? Most of the original news articles are dead …
Liberty Forum
Free Republic
Rense
Oil Empire
9/11 research

Posted by: Noisette | Apr 27 2006 18:03 utc | 12

Wow, great sleuthing, b.
Rumsfeld – criminally greedy, criminally neglient, and at base just plain criminal.

Posted by: Dismal Science | Apr 27 2006 18:29 utc | 13

I wonder how many of these fuckers have a slice of the heroin pie in Afghanistan.

Posted by: Cloned Poster | Apr 27 2006 18:45 utc | 14

I wonder how many of these fuckers have a slice of the heroin pie in Afghanistan.
Personally not many. But institutionally the CIA has been in the drug business for decades. They will not miss this opportunity.

Posted by: b | Apr 27 2006 19:07 utc | 15

I wonder how many of these fuckers have a slice of the heroin pie in Afghanistan.
All, but most not directly. Or only trickle – down.
The numbah one point from the US pov is that it keeps Afghanis working, earning, alive, eating, off the streets such as they are, that is, quiet and submissive under their Taliban / local sheik / warlords / US military authorities.
It is confusing and painful for them, they never know when they may suddenly come under scrutiny, have their fields razed for the CNN cameras, be the butt of local jokes, or be bombed, weep for family members, be forbidden to truck, move, harvest, plant. It is a hand to mouth existence but the only living available for about 40 to 80 % (?) of farmers. Non-farmers condition, treat, transport, organise, steal.. the end point is the small dealer in Kabul, gathering pennies to feed his children, and selling to Aids infected mothers who need the dope to be able to sell their bodies to get money…to feed their children.
In Afghanistan, it is not possible for an ordinary person to borrow money for a business venture of any kind from a bank. Farmers cannot buy tractors or seeds. Unless they plege to grow the only crop that will furnish a sure return.
(from my reading, particularly of UN documents.)

Posted by: Noisette | Apr 27 2006 20:16 utc | 16

FROM any kind of bank …PLEDGE to grow… sorry

Posted by: Noisette | Apr 27 2006 20:19 utc | 17

Photo of Chimp looking for album cover

Posted by: jj | Apr 28 2006 7:42 utc | 18

The American Prospect read the article too, but they still underestimate the issue.

Posted by: b | Apr 28 2006 18:25 utc | 19

The “Federation of American Scientists Project on Government Secrecy” has the CRS report here.
Find any details WaPo “missed”?

Posted by: b | Apr 28 2006 18:52 utc | 20

THIS INFORMATION IS GREAT. I AM WORKING ON MY THESIS REGARDING THE BREAKDOWN OF THE ACCOUNTING COSTS OF THE WAR ON TERRIORISM. DO YOU HAVE ANY CURRENT ACCOUNTING INFORMATION BROKEN DOWN TO ASSIST WITH MY RESEARCH? THANKS.
SANDY
SANDY36132004@YAHOO.COM

Posted by: SANDY | Apr 30 2006 1:48 utc | 21