BoatBanter.com - View Single Post - Charlie Cook Sees GOP Winning Big in 2012

Canuck57[_9_]

On 23/11/2011 12:11 AM, wrote:
On Tue, 22 Nov 2011 23:45:50 -0700,
wrote:

You could reduce military spending by $600 billion, and you still would
be spending more than China and Russia combined. Doesn't mean you
layoff 75%, just stop all the expensive stuff.

The expensive stuff is really the soldiers and sailors. Not only do
you have the salaries and benefits now. if they hang around 20 years
you own them for another 40 years.
The hardware is really just a jobs program, employing aerospace,
electronic and big iron companies like the ship builders.
If you look at a big DoD contract you will see it has a little pork
for at least 35 states,

One huge problem was has is that it is pure 100% wealth consumption.
There is no residual value once a bomb goes off.

Building a bridge, it is inefficient reallocation of wealth but has a
residual return. Ditto education, but war has no return.

I agree though, transition from a war economy to a peaceful one will be
hard. But given todays markets coinciding with Bernenke
print/counterfeit rant, I would say USA is toast.

And wealth is rapidly diminishing in the USA, too much consumption and
not enough production. At some point the consumption side will be
forced to back off or US will go Zimbabwe. Lets see how far Bernanke
insanity goes.

--
All successful people have one thing in common, if even for a moment
they think rationally.