President Lyndon B. Johnson’s policy of Great Society spending and Vietnam War is credited with the rising American inflation that persisted until checked by President Reagan’s supply-side policy.
In Johnson’s time the American economy and the US dollar were strong, and there was no current account deficit. Yet, LBJ’s policy of guns and butter did long-term harm.
The Bush/Obama 21st century policy of guns and butter makes LBJ look like a piker.
The 2009 and 2010 federal budget deficits will be monstrous even without guns. But Obama is exiting (apparently) the Iraq War in order to start two, possibly three, more wars.