McCain's plan to balance the budget

[TexasTiger 12,974]

“The McCain administration would reserve all savings from victory in the Iraq and Afghanistan operations in the fight against Islamic extremists for reducing the deficit. Since all their costs were financed with deficit spending, all their savings must go to deficit reduction.”

http://www.politico.com/news/stories/0708/11553.html

Who can spot the logical fallacy in that statement?