The Cost of the Iraq Debacle

A story on the front page of the Washington Post describes the escalating cost of the Iraq debacle:

With the expected passage this spring of the largest emergency spending bill in history, annual war expenditures in Iraq will have nearly doubled since the U.S. invasion, as the military confronts the rapidly escalating cost of repairing, rebuilding and replacing equipment chewed up by three years of combat.
The cost of the war in U.S. fatalities has declined this year, but the cost in treasure continues to rise, from $48 billion in 2003 to $59 billion in 2004 to $81 billion in 2005 to an anticipated $94 billion in 2006, according to the Center for Strategic and Budgetary Assessments. The U.S. government is now spending nearly $10 billion a month in Iraq and Afghanistan, up from $8.2 billion a year ago, a new Congressional Research Service report found.

Compare and contrast with Rumsfeld's estimate in an interview with George Stephanopoulos on January 19, 2003, via the DoD:

Rumsfeld: The Office of Management and Budget estimated it would be something under 50 billion dollars.
Stephanopoulos: Outside estimates say up to 300 billion.
Rumsfeld: Baloney.

Did he lie or is he simply incompetent? Either way, does he deserve to keep his job?