What's the meaning of this??!!

I was never much of a student of English in school. Freshman English was the worst. Save for the first year or so, I'd spoken English all my life. I thought my time could be better spent in some other class. Like Social Dance maybe.

But if there was one aspect of the language that enthralled me, it was the use of metaphors. Metaphors taunted me, because they concealed behind the written word a different meaning.

Well, I was reminded of how weak I am at deciphering hidden meanings by the following joke received from a former high school classmate of mine this morning. I think I could use some help in interpreting its deeper meaning.

Here's the joke, with my (mis)interpretation afterwards?

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"Little Nancy"

Little Nancy was in the garden filling in a hole when her neighbor peered over the fence. Even though he didn't much like the kid he was interested in what the freckled - faced youngster was doing, he asked, "What are you up to there, Nancy?"

"My goldfish died," replied Nancy tearfully without looking up, "and I've just buried him."

The neighbor laughed and said condescendingly, "That's a really big hole for a Goldfish, isn't it?"

Nancy patted down the last heap of earth then replied, "That's because he's inside your damn cat."

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My (mis)-take(?) on this metaphor ladened joke:

Little Nancy = the Islamic Middle East
Neighbor = Bush, Rumsfeld, Rove, your choice
Goldfish = the president's fallacious Iraq war
Cat = American taxpayer's monies

Remember, I admit I'm not very good at it. If you disagree, feel free to uncover your own hidden meanings.