Disaster Costs to Swell U.S. Deficit (AP)

[Bush_Eats_Beef]

http://news.yahoo.com/news?tmpl=story&cid=514&u=/ap/20050916/ap_on_go_pr_wh/katrina_bush_41

By NEDRA PICKLER, Associated Press Writer 20 minutes ago

WASHINGTON - Taxpayers will pay the bill for the massive reconstruction program outlined by President Bush for the hurricane ravaged-Gulf Coast and the huge expense will worsen the nation's budget deficit, White House officials said Friday.

With disaster costs estimated at $200 billion and beyond, Al Hubbard, director of Bush's National Economic Council, said, "It's coming from the American taxpayer." He acknowledged the costs would swell the deficit — projected at $333 billion for the current year before Hurricane Katrina slammed into the Gulf Coast.

President Bush, in an address to the nation Thursday night, said the recovery effort would be one of the largest reconstruction projects the world has ever seen. He promised that the federal government would pay for most of it.

Claude Allen, the president's domestic policy adviser, said the administration had not identified any budget cuts to offset the disaster expense.

[merwin]

1. This whole administration is one big disaster

[Dark]

2. Just cut some more taxes. That'll solve all our problems.

Then the rich can spend more money on New Orleans. . .or their cocaine. Either way it will trickle down so much the average worker might see an extra penny, maybe two if they're white!

[ixion]

3. got that? because * wanted to save a few million, he cut the levee project

and now WE have to come up with ANOTHER 200 billion+ to finance another adventure with chimpy.

What the hell is going on in this country?

[cliss]

6. Absolutely.

I couldn't agree more. Since when is a pound of cure better than an ounce of prevention? And we all know what the "cure" is going to be...a mirage.

(also a great post below)

[Lone_Star_Dem]

7. I guess Halliburton wasn't in line for the levee contract

This way they get the whole enchilada and a free hand to rape the American tax payers too boot.

[Robert Oak]

8. reduce bureaucracy

Cut out the middle man...the US government and let Halliburton
just rape and pillage the American people directly...this will save billions in overhead costs.

[rurallib]

4. That original $333 B projected deficit for the coming year

did not include the cost of Bush's War (the mistake in Irake) the way I understand it. That would make the real yearly deficit $333 + 100 (bushwar) + 200 (katrina) = @ $633 billion.
The concept is to get the government so far in debt it can only pay debt service and defense both at 50 cents on the dollar. (Who's gonna vote against defense and get elected again?) This will eliminate those nettlesome problems like Social Security and medicare and medicaid etc.

[teryang]

10. That figure also treats social security revenues as general...

...revenues disguising another $200 billion or so in additional unfunded red ink.

[xchrom]

5. this is the news i've been wondering about.

[Orsino]

9. Just the excuse the Administration has been hoping for!

A lovely disaster on which they can blame their failed economic policies.

What do you get when you add one to a trifecta?

[Systematic Chaos]

11. A superfecta!

No, really. And at most racetracks you can bet on them. The top 4 horses, in order. :)

[Coastie for Truth]

12. Heard on NPR that Senator Vitter (R-LA)

Senator David Vitter has "suggested" an "Oil Severance Tax" to pay for the reconstruction of Louisiana.