March 16, 2007

Achilles Heel?

It is sometimes boggles the mind on how the US government is able to get trillions of dollars for defense, but it is still in debt. That is the difference between you and the government.

This article points to the trillion dollar defense budget:

If the additional elements of defense spending continue to maintain the same ratio to the Pentagon’s amount—and we have every reason to suppose they will—then in fiscal year 2007, through which we are now passing, the grand total spent for defense will be $1.028 trillion. I confirmed the rough accuracy of this forecast by adding up the government’s own estimates of fiscal 2007 outlays for the various additional defense-related items, obtaining a total of $987 billion—an amount only 4 percent less than my ratio-based estimate. Future defense-related supplemental appropriations for fiscal 2007, which would hardly be surprising, might easily bring the lower estimate up the higher one.
Now, consider the subprime conundrum, and your effect on it (if you are in debt). While it is not certain, it is quite possible that a similar bubble will burst with the current defense spending. Companies get no money, and that will be our great countries Achilles heel.

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