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Heard It All Before.(ISSUES & INSIGHTS)(EDITORIALS)

Investor's Business Daily

| August 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Iraq: Those who knock whatever George Bush is up to must be running out of ideas. How else to explain the economic fear-mongering over an attack on Iraq?

In a front-page story Tuesday headlined "Profound Effect On Economy Seen In A War On Iraq," The New York Times warns of everything from recession-causing spikes in commodity prices to "substantial psychological effects" on financial markets, business investment, retail spending and travel.

"When weapons start going off in the Middle East," a former diplomat is quoted as saying, "markets generally go down, gold prices go up and oil prices shoot to the moon."

That, according to another expert -- this one an economics professor and former CIA analyst -- is a prescription for recession. He is "firmly of the school that the Iraqi invasion of Kuwait precipitated the American recession in 1991."

Is this August 2002 or August 1990?

We heard all this 12 years ago, before we last went into Iraq, and none of it panned out. In fact, what happened when the shooting started in January 1991 was just the opposite of what "experts" had predicted.

Many said ...

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