Greece collapse begins

The PIGS (Portugal, Ireland, Greece and Spain) have been under scrutiny for months due to their unsupportable mountains of debt in comparison to their incomes – on Monday, Greece may be the first to go down.

Despite Greek Priminister Tsipras’ plea for calm in this video:

Greeks lined up to drain ATMs of every ounce of cash they contained.

 

Reports say that Greece will not open banks on Monday at a minimum and it may take days or longer to get them open due to lack of cash.

Greece said it would temporarily close banks on Monday in a bid to prevent its banking system from collapsing after the European Central Bank moved to cap the amount of emergency loans it provides for the country’s cash-strapped lenders.

The ECB said earlier on Sunday that it wouldn’t increase the lifeline of emergency liquidity that has been sustaining Greece’s banks, even as nervous Greek depositors appeared to withdraw their money at a greater pace over the weekend.

Zerohedge is reporting that the Greek stock market may not open Monday. Without capital inflows, why would they?

This entire event is due to debt. Just debt. Nothing more than debt. It’s what happens when a nation offers services it cannot possibly pay fore and as Margaret Thatcher put it “eventually runs out of other people’s money.”

The United States should watch what happens to Greece closely as America’s debt-to-GDP is even worse than it looks. Remember that the government decided to include R&D and pension write-downs in GDP just recently. That only makes GDP look better while the government hides how bad American debt really is.

Schiff Acknowledges Mueller May Never Get Trump To Testify

Democratic U.S. Rep. Adam Schiff of California said special counsel Robert Mueller should seek President Donald Trump’s sworn testimony Sunday, but seemed to acknowledge that outcome was unlikely.

Speaking Sunday on NBC’s “Meet the Press” Schiff, who chairs the House Intelligence Committee, said it would be a mistake for Mueller to conclude his investigation without interviewing Trump in person and under oath.

“I think the constraint that Bob Mueller is operating under is he had an acting attorney general who was appointed because he would be hostile to a subpoena on the president,” Schiff said. “And now he has a permanent attorney general who was chosen for the same hostility to his investigation and who would likely oppose that step.”

“I also think that the special counsel feels some time pressure to conclude his work,” Schiff added.

Schiff’s pessimistic assessment notwithstanding, Attorney General William Barr did not foreclose the possibility that Mueller could subpoena Trump during his January confirmation hearing for the attorney generalship.

“The question from me would be ‘What’s the predicate?’” Barr told the Senate Judiciary Committee. “If there was a factual basis for doing it, and I couldn’t say that it violated established policies, then I wouldn’t interfere.”

The Supreme Court enforced a subpoena against former President Richard Nixon in the 1974 U.S. v. Nixon decision, ruling that he had to comply with special prosecutor Leon Jaworski’s request for the infamous White House tapes.

Whether the president must comply with a subpoena for testimony is a different question, however, one which the high court has never answered. In one relevant historical incident, former Chief Justice John Marshall indicated that prosecutors could subpoena former President Thomas Jefferson to testify during the 1807 treason trial of Aaron Burr. Jefferson never appeared and Marshall was speaking merely as the presiding judge, not for the Supreme Court.

Former President Bill Clinton testified from the White House by remote video feed before a federal grand jury in 1998 that independent counsel Ken Starr convened. A subpoena for Clinton’s appearance was revoked when Starr and the president’s lawyers reached a deal setting terms for his testimony.

5 arrested in scheme to take English proficiency exam for Chinese nationals seeking student visas

Federal authorities in California arrested five defendants Tuesday morning linked to a scheme that helped Chinese nationals obtain student visas by hiring individuals who used fake Chinese passports to take an English proficiency test for the foreign students.

The arrests were made pursuant to a 26-count indictment returned on Friday by a federal grand jury. The indictment charges the defendants with conspiring to use false passports, using false passports, and aggravated identity theft as part of the scheme to impersonate Chinese nationals who were required to take the Test of English as a Foreign Language (TOEFL) to obtain a student visa.

This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the State Department’s Diplomatic Security Service, and U.S. Citizenship and Immigration Service’s Fraud Detection National Security Section. The Educational Testing Service, which administers the TOEFL exam, has provided assistance during the investigation.

“On top of allowing students to cheat their way into our top universities, schemes such as this exploit our nation’s legal immigration system and threaten our national security,” said Joseph Macias, Special Agent in Charge for HSI Los Angeles.  “As this case shows, we will move aggressively to identify and prosecute those who engage in fraud and corrupt the immigration process for profit.”

The five defendants were taken into custody this morning without incident. They are:

  • Liu Cai, 23, of Woodland Hills, who allegedly facilitated the scheme, took at least five TOEFL exams himself and is residing in the United States on a student visa;
  • Quang Cao, 24, of San Francisco, who allegedly took at least four TOEFL exams with false identification, and who was arrested today in Stockton, California;
  • Elric Zhang, 24, of Los Angeles, who allegedly took at least five TOEFL exams as part of the scheme;
  • Mohan Zhang, 24, of Cerritos, who allegedly took at least two TOEFL exams under the names of foreign nationals; and
  • Samantha Wang, 24, of Corona, who allegedly took at least two TOEFL exams.

The four Southern California defendants are expected to be arraigned on the indictment this afternoon in U.S. District Court in downtown Los Angeles. Cao is expected to make an initial appearance this afternoon in the Eastern District of California.

The sixth defendant in the case – Tuan Tran, 33, who allegedly took at least one TOEFL exam with a false identification document – is believed to be currently residing in Taiwan.

The United States requires foreign citizens who wish to enter the United States on a temporary basis to study at a college or university to first obtain an F-1 student visa. To obtain a student visa, foreign citizens must first apply to study at a school that has been authorized by the Student and Exchange Visitor Program (SEVP) to enroll foreign students. In the United States, many SEVP-certified schools require foreign citizens whose first language is not English to certify proficiency in English by achieving a particular score on the TOEFL.

When the foreign national goes to a TOEFL testing location, the test taker must present an original, non-expired, government-issued identification document recognized by their home country. According to the indictment, all six defendants used counterfeit People’s Republic of China passports to impersonate 19 different Chinese nationals at various TOEFL testing locations in and around Los Angeles.

The indictment further alleges that Cai paid for and registered 14 Chinese nationals for TOEFL exams over a one-year period in 2015 and 2016. Following the tests, Cai allegedly paid three co-defendants approximately $400 per test from his PayPal and Venmo accounts.

The conspiracy count in the indictment carries a statutory maximum penalty of five years in federal prison. The charge of using a false passport carries a maximum sentence of 10 years. Aggravated identity theft carries a mandatory consecutive two-year sentence.

Shock! IMF cuts global economic forecast.. for third time this year

Tuesday, the IMF updated it’s World Economic Outlook downgrading three-out-of-four of the world’s most powerful economies.

While the Eurozone was given an outlook putting them more into reverse, the U.S. and China are now expected to grow even more slowly than the previous projections. Only Japan was given an improved outlook.

News reports have spun the three consecutive downgrades as showing the global economy “in nuetral”, but declining expectations and now U.S. small business sentiment dropping in June paints a much more bleak picture – the recovery that has been heralded seems not to be materializing.

There are approximately 9 million fewer jobs in the U.S. economy than when the recession started. With only 47% of adults holding full-time jobs, things are not likely to improve soon as government programs pull more money out of the economy through fees and taxation and leave less capital for growth and investment.

The latest Bureau of Labor statistics report echoes the IMF’s report. The report showed that job growth was mainly in part-time jobs and that a large portion of the American workforce remains unemployed which gives no reason to doubt the recent IMF downgrade.

Emerging markets took a hit as well. Brazil had it’s growth prediction dropped from 3% to 2.5%.

Cliven Bundy Vows To Fight If Feds Put Him Back On Trial

  • Nevada rancher Cliven Bundy may be heading back to court again for criminal charges related to his standoff with federal officials in 2014.
  • U.S. District Judge Gloria Navarro dismissed the charges against Bundy in January 2018, but federal prosecutors intend to appeal the judge’s decision to the Ninth Circuit by Feb. 6.
  • Should the Ninth Circuit rule against him, Bundy plans to continue his court fight and “expose the rest of their dirt” after federal prosecutors violated federal law by withholding exculpatory evidence during Bundy’s trial.

Federal prosecutors plan to appeal U.S. District Judge Gloria Navarro’s decision to dismiss the charges against Nevada rancher Cliven Bundy by Feb. 6, according to a Wednesday court filing.

Navarro dismissed the case against Bundy, his two sons and one other man “with prejudice” on Jan. 8, 2018, preventing the defendants from being retried. Bundy and the others faced 15 criminal charges related to a standoff with federal officials at his ranch in 2014.

Department of Justice (DOJ) prosecutors intend to request the Ninth Circuit Court of Appeals overturn Navarro’s ruling. Assistant U.S. Attorney Elizabeth White requested a 14-day extension to file an appeal with the Ninth Circuit Wednesday, following up two previous requests for a 60-day extension, then a 21-day extension.

“Hey, get with it. We’ll expose the rest of their dirt,” Bundy told The Daily Caller News Foundation, ready to go back to court should the Ninth Circuit order a retrial.

Bundy’s case ended in a mistrial on Dec. 20, 2017, after a team of federal prosecutors were found withholding evidence from the court that was favorable to the Bundy’s defense. Prosecutors handed over roughly 3,000 pages worth of overdue evidence to the court after repeated requests from the defendants.

Navarro found the prosecutorial team had broken federal law and violated the defendants’ civil rights by not turning the documents over sooner, according to court documents.

“The Court’s finding of outrageous government conduct was not in error,” Navarro wrote in a July 2018 ruling, obtained by The Oregonian. “On the contrary, a universal sense of justice was violated by the Government’s failure to provide evidence that is potentially exculpatory.”

The federal prosecutors’ attempt to overturn Navarro’s decision and put Bundy back on trial is “surprising” to the 72-year-old Nevada rancher.

“They lied in the indictment. It was unbelievable,” Bundy told TheDCNF in a phone interview Friday. “Then they built upon those lies and continued to lie and tried to hide it from the jury. … They didn’t ever let us bring forth any of the real evidence of whether we were guilty or not guilty.”

Former Attorney General Jeff Sessions took notice of the Bundy’s case after Navarro dismissed it. Sessions ordered a DOJ investigation into the potential misconduct of the federal prosecutors, led by former acting Nevada U.S. Attorney Steven Myhre.

The DOJ has yet to issue any findings in the investigation of Myhre’s team. Until those results are released, any DOJ attempts to bring Bundy back before a judge are “absolutely premature,” Bundy family lawyer Joseph Kerry told TheDCNF.

“These prosecutors, and apparently members of the FBI, were going to be called to answer for missing documents, materials that weren’t provided,” Kerry said Friday. “Just maybe, instead of focusing on Cliven Bundy and his family, the Department of Justice should be looking at the status of that internal investigation.”

Myhre stepped down from his No. 2 position at the Nevada U.S. attorney’s office in April after taking criticism for committing what Navarro called “flagrant” misconduct in the Bundy trial. The Nevada U.S. attorney’s office did not give an official reason for Myhre’s action, the Las Vegas Review-Journal reported at the time.

Bundy believes the jury would have found him innocent had his trial been allowed to conclude with the withheld evidence. His case rested on his right to self-defense against hyper-aggressive action taken by Bureau of Land Management (BLM) officials attempting to impound his cattle.

The results of an internal investigation of the BLM found that federal agents committed “the most intrusive, oppressive, large scale and militaristic trespass cattle impound possible.” The investigation results were part of the 3,000 overdue pages of evidence that led to the mistrial.

“If we would have had two more hours before that jury, we would’ve brought a lot of evidence forward that the government didn’t want the jury to hear,” Bundy said. “I felt like dropping the case and releasing me out of jail and all those things were to the government’s advantage more than it were to mine.”

Though he was forced to forget his business while he stayed two years in prison, the ranch is still in operation thanks to family and neighbors helping out.

“It did hurt us financially and physically, but we are surviving,” Bundy told TheDCNF.

Coming back home to his family, friends and his way of life after the charges were dismissed was, simply, “nice.”

“I have a large family — had a lot of grandchildren that was happy to see me and love me,” Bundy said. “I have a lot of faith in the Heavenly Father and I feel like he’s protecting me and blessed me in many, many ways, so with that faith I don’t have a lot of fear.”

Florida Store Owner Jailed on Food Stamp Fraud

A Florida convenience store owner and his son were arrested yesterday and charged with Food Stamp Fraud. According to the report they would buy area resident’s EBT card for pennies on the dollar and then use the card at other stores to buy items which were then sold in the convenience store.

Read more at the Daytona Beach Journal.

Q1 GDP Down 2.9%: Admin says – meh

Today we learned that the Gross Domestic Product of the United States decreased by 2.9% in the first three months of 2014 – a number greatly different than dismal .1% increase the administration reported initially.

How could this be? According to the Huffington Post Obamacare had just saved the economy from contraction.. or something.

As the U.S. economy teetered on the brink of contraction in the first quarter, one thing stood out. Healthcare spending increased at its fastest pace in more than three decades.

That surge is attributed to the implementation of President Barack Obama’s signature healthcare law, the Affordable Care Act, also known as Obamacare. Because of Obamacare, the nation narrowly avoided its first decline in output in three years.

After the report showing that things were not so rosy, the excuses came fast and furious – no pun intended – from the White House, liberal news and even some economists. The weather was the cause.

Unfortunately for the apologists, most economist believe that the weather only affected the economy to the tune of about 1% of GDP – so where did the rest go?

According to the Wall Street Journal, some, but not all, appears to come from healthcare spending:

Spending on health-care services declined at a 1.4% annualized pace in the first quarter, compared to an earlier estimate of a 9.1% increase. That revision contributed to a revision of gross domestic product to a 2.9% annualized decline from an earlier estimate of a 1% decline.

The WSJ report tells us that even more pain is yet to come thanks to Obama’s attack on one of the largest parts of the American economy:

Michael Feroli, a J.P. Morgan Chase economist, said spending increases related to the new health-care law that didn’t show up in the first quarter “may ramp up more gradually throughout the year.”

For the second quarter, housing starts are down, inventories are down… heck, everything is down. Even the Federal Reserve isn’t acting like Americans are experiencing a recovery (as if they don’t know it.)

The real test will be the second quarter numbers. If we get two quarters of negative growth, Obama will have a recession he’ll get to call his own. Then again, we know he’ll never take the blame so we’ll quietly await Obama’s version of the “Malaise” speech while we all sit back and “eat cake” as instructed by our great leader.

Greek Finance Minister gives resignation letter [full text]

Greek finance minister Yanis Varoufakis has, according to blog post with his name, resigned.

After having kept a broke financial system working for months, Varoufakis submitted a letter saying that because his attendance at meetings with EU, IMF and ECB financiers had been viewed as objectionable, he is relinquishing his position.

The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.

Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.

Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.

And I shall wear the creditors’ loathing with pride.

We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.

The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.

 

BofA Freezes Funds to AZ Gun Dealer

A Scottsdale gun manufacturer had a run-in with Bank of America. Joe Sirochman, is owner American Spirit Arms, which manufactures and sells rifles. Like other gun makers Sirochman saw a huge increase in sales last month.

KFYI: Due to the sudden increase in revenue, Sirochman tells KFYI News that Bank of America began putting his deposits on hold out of concern that they might be fraudulent. The bank told him that the deposits would be released after 48 hours.

But according to Sirochman, “48 hours turned into another 48 hours, which turned into a week, then two weeks.” He says his company was in a pinch because it needed that revenue to operate and to pay its own bills.

Sirochman called Bank of America again to complain, and ended up talking to a manager who told him the bank had concerns about his company’s product. “It’s because we sell guns and parts on the internet, and they believe we shouldn’t be selling guns and parts on the internet,” he said.

Sirochman is now in the process of moving his business to a locally owned bank.

 

CBS 5 – KPHO

Rebuttal: 10 myths about defense spending

The opponents of a strong defense are spreading many myths about defense spending to mislead the public and induce it to support deep defense cuts. This is dangerous, because uninformed decisions always tend to be bad ones, and intellectual disarmament always leads to actual disarmament.

For that reason, I’ve prepared this rebuttal of the 10 myths about defense spending which, by my experience, are most widespread right now.

Myth #1: Sequestration (the planned $600 bn additional defense spending cut slated to kick in on January 2nd, on top of all defense cuts already implemented or scheduled) would be a mere cut in the rate of defense spending growth.

Fact: Sequestration would not be a mere cut in defense spending growth; quite the contrary. It would take defense spending from today’s level of $535 bn down to a paltry $469 bn in January, and from that point, defense spending would not come even close to today’s level for at least a decade, and probably longer than that. A decade from now, in FY2022, defense spending would still be at $493 bn, $42 bn below today’s level. Vide this CBO report (Table 1-4 on page 11) and this CBO graph. Even without sequestration, defense spending will not return to today’s level until FY2018 at the earliest… assuming the Congress doesn’t cut defense any further, which is unlikely.

Myth #2: Sequestration still leaves the defense secretary much latitude to make the required cuts and excludes war spending.

Fact: It doesn’t. The BCA says clearly that if sequestration is triggered, all non-exempt DOD accounts (including war spending) are to be cut by the same percentage (15%). Only personnel spending and bases in the US are exempt. The SECDEF would be required everything by the same percentage (as made clear by the White House report on the subject), the waste along with the necessities. Even Sen. Coburn knows that and opposes sequestration for that reason.

If sequestration proceeds, the DOD has as much possibility to shift money between accounts and avoid deep cuts as the female body has of shutting down pregnancy in case of rape. In other words, none.

Myth #3: Sequestration would only return defense spending to FY2006 or FY2007 levels.

Fact: Sequestration would set defense spending back by an entire decade, to the lowest level since FY2003, when it was $468 bn in real terms. In FY2004, the base defense budger was $473 bn in today’s money, i.e. more than what the DOD would have under sequestration. For details, see here. In FY2003, China’s and Russia’s military buildups (which, by now, have exceeded any legitimate self-defense requirements)

Myth #4: We spend more on defense than all other countries in the world (or the next top 10 spenders) combined.

Fact: No, we don’t. The next biggest military spender, China,

is extremely opaque about its military spending, hiding large portions of it outside its military budget – so we have to rely on unofficial estimates. The DOD estimated that in FY2011, China’s military budget was at ca. $160 bn, while SIPRI estimated it to be $143 bn. In fact, in FY2007, the DOD estimated the People’s Liberation Army’s budget to be between $ bn and $140 bn. (See the graph below.)

In 2012, the DOD estimates that Beijing’s military budget is between $160 bn and $250 bn, and that’s before PPP differences are accounted for. As Bill Gertz writes:

“The official figure for Chinese defense spending is considered by the Pentagon and other non-government specialists to be far lower than actual spending, which has been estimated to be at least $160 billion and as high as $250 billion a year. (…)

Last year, China announced a 12.7 percent increase in defense spending to about $91.5 billion. The boost “continues more than two decades of sustained annual increases in China’s announced military budget,” the Pentagon said in August.

The Pentagon’s annual report on the Chinese military stated that China actually spent more than $160 billion in 2010, noting that Chinese military secrecy makes estimates difficult.”

But even the PDA’s Carl Conetta, a supporter of deep defense cuts, estimates China’s military budget, with PPP differences, to be $240 bn. This is a stark contrast to Beijing’s official figure of $100 bn for 2012.

So according to the DOD, the SIPRI, and the PDA, China’s military budget as of 2011 was far higher than $89 bn and is even higher this year. In fact, the DOD says China spent $160 bn on its military as early as 2010, and even more than that in 2011 and this year.

China also leaves most personnel and operational costs off the PLA’s budget, and many other military expenditures, along with off-the-books sources of income, such as those from PLA farms. GlobalSecurity.org has more on that subject here. AirPowerAustralia correctly writes that:

“The oft quoted comparisons between the United States and PRC defence budgets produce a misleading picture of the relative scale of investments, especially in terms of equipment recapitalisation. Chinese aggregate defence budgets as cited reflect primarily capital equipment acquisition and support costs, while many infrastructure and personnel costs are born by regional governments. United States budgets tend to carry a significant fraction of operational costs which have been unusually high over the last decade due to the ongoing global conflict with Islamo-fascist insurgent movements.”

All of which means that China’s annual military budget is much higher than what Beijing admits to and what the IISS claims, and then has to be multipled by a factor of at least 2 or 3 to account for PPP differences. Therefore, if China’s military budget for FY2012 was $250 bn (the DOD’s high-end estimate), and if we assume that in China one dollar can buy 3 times more than in the US, China already outspends the US in military expenditures by $750 bn to $645 bn, i.e. by more than $100 bn, if PPP differences are accounted for.

But even if PPP differences are not accounted for, the next 10 top spenders combined (China, Russia, the UK, France, Japan, Saudi Arabia, India, Germany, Brazil, and Italy) outspend the US in military expenditures. Their respective military budgets this year arre as follows: $250 bn, $71.9 bn, $62.7 bn, $62.5 bn, $59.3, $48.2 bn, $46.8 bn, $46.7 bn, $35.4 bn, $34.5 bn (and that’s AFTER the deep cuts made in the British, German, and Italian defense budgets in recent years). The figure for China ($250 bn) is from the DOD (as cited here) and the figures for the other 9 countries come from SIPRI’s 2012 Yearbook for military spending, as cited by Wikipedia.

Together, these countries’ military budgets add up to $718 bn, far more than America’s military budget for FY2012 ($645 bn) or FY2011 ($688 bn).

In fact, the top 8 after-USA military spenders collectively outspend the US at $648.1 bn to America’s $645 bn.

Myth #5: Our total military budget has more than doubled since 9/11 and now exceeds $700 bn per year.

Fact: No, it hasn’t and it doesn’t. On 9/11 (i.e. in FY2001), the defense budget (when there was no supplemental war funding and no GWOT) was $291.1 bn in nominal (then-year) dollars, i.e. $390 bn in real terms (inflation-adjusted dollars) according to the DOL’s inflation calculator. In FY2012, the base defense budget was $531 bn, i.e. 36% more in real terms than in FY2001, and the total military budget (including war spending and all of the DOE’s defense-related programs) amounted to $645 bn, per the FY2012 National Defense Authorization Act. The FY2012 Defense Appropriations Act appropriated even less, $633 bn. America has never had a $700 bn military budget. Not in FY2012. Not ever. In FY2011, the peak year, military spending came close to but did not reach (let alone exceed) $700 bn, peaking at $688 bn before declining to $645 bn in FY2012.

If the FY2013 NDAA is passed as reported by the Senate Armed Services Committee, defense spending will decline further to $613 bn this FY.

Myth #6: Defense spending has so far avoided any serious scrutiny, tough choices, or real cuts.

Fact: On the contrary, defense spending is scrutinized by Congress every year – with lawmakers usually passing less than what DOD requests – and has already been cut repeatedly during the last 4 years. In 2009 and 2010, the DOD killed over 50 crucial weapon programs, including the F-22, the C-17, the Airborne Laser, the EP-X aircraft, the Zumwalt class DDG, the CGX cruiser, the Multiple Kill Vehicle, the Kinetic Energy Interceptor, and the AC-X gunship. In 2011, Secretary Gates announced $178 bn in efficiencies and cuts, which included cuts to bureaucracies, troop layoffs, and weapon program closures. And earlier this year, complying with the Budget Control Act, Secretary Panetta announced another $487 bn in cuts, including weapon program closures, cuts to cruiser, fighter, attack jet, airlifter, and other platform fleets, and the layoff of 80,000 troops. Any claim that the DOD has not “taken stuff out of its budget”, or has so far been exempt from scrutiny and budget cuts, or has not yet had to make tough choices, is a blatant lie.

Republicans agreed to all of these cuts, plus to the New START unilateral nuclear arms cuts treaty, which also belies the myth that defense is Republicans’ “third rail” or “their Medicare”.

Myth #7: We can make deep cuts in defense spending without jeopardizing national security.

Fact: Deep cuts are exactly that – deep cuts. While there is some waste in the DOD’s (and every government agency’s) budget, there isn’t enough waste in it to pay for deep defense spending cuts. Claims to the contrary, like other myths about defense spending, are made by those who want to mislead the public and lull it into a false sense of security by misleading it into thinking that deep defense cuts can be made safely, without adverse national security consequences.

But they are wrong, because as stated above, while there is some waste in the DOD’s (and every government agency’s) budget, there isn’t enough waste in it to pay for deep defense spending cuts. Dramatic defense budget cuts would mean deep cuts in one or more of the following:

  • Military personnel and their salaries and benefits;
  • The force structure of the military services (Army, Navy, Marine Corps, Air Force, Coast Guard);
  • Operations and training (including flight hours, ship steaming days, and vehicle miles);
  • The maintenance of existing equipment and bases;
  • The development and acquisition of new, badly needed equipment.

Which do you choose, folks? Because that’s what you’d have to cut deeply if you support deep defense budget cuts. “Waste” is a drop in the bucket. (And no, crucial weapon programs such as the Next Generation Bomber and the V-22 Osprey are not “waste”, contrary to what groups like POGO, TCS, and the NTU claim.)

Myth #8: We could make big savings if we just withdrew our troops from all foreign countries they are stationed in.

Fact: Doing so would not save a penny. The little dirty secret that the “noninterventionist” crowd won’t tell you is that bringing the troops home won’t save a penny. That’s because doing so would require not only bringing them and their equipment physically back to the US, but also building new bases and homes for them, as well as schools for their children. This would far outweigh the meagre savings resulting from closing bases abroad. Moreover, in many countries, such as Japan and South Korea, the US military is compensated for being there and military construction costs are shared with allies.

This is, of course, besides the adverse security consequences of retrenching behind oceans and reverting to an isolationist posture, which would mean dumping all of America’s allies and leaving them for potential aggressors like China, Russia, and North Korea to attack.

Myth #9: Cutting military spending deeply would bring about huge savings.

Fact: On the contrary, deep defense cuts would bring about relatively small (compared to the budget deficit’s size) savings, while gravely weakening the military and thus undermining national security for the reasons stated above. The budget deficit for FY2012 was $1.3 trillion. Cutting the military budget by $300 bn per year would still leave trillion dollar deficits for every year till kingdom come.

Even eliminating the military budget entirely would fail to even halve the budget deficit, let alone to eliminate it, as this Heritage Foundation graph proves.

Myth #10: We have to cut everything deeply, including defense, to balance the budget.

Fact: No, defense DOES NOT have to be cut deeply to balance the budget, as proven by the budget plans of Chairman Paul Ryan, the Republican Study Committee, Sen. Pat Toomey, and Sen. Mike Lee. That’s because these budget plans prioritize defense – the federal government’s #1 Constitutional duty – and cut other government programs (including unconstitutional ones) much deeper.

The “we have to cut everything dramatically” meme is being spread only by those who want to see deep defense cuts for their own sake and those who are unable to propose any specific cuts of government programs according to Constitutionality, usefulness, or performance. Some of these people are intellectually unable to do this, others are unable or unwilling to do so for political reasons. All of them are wrong, however. Their preferred “salami-slicing” approach of cutting everything equally (or even worse, cutting defense deeper than anything else, which is what is scheduled to happen under current law) is the most politically expendient, and national-security-wise, most destructive approach.

I hope this analysis has been useful to you. Here is a rebuttal of 10 other popular myths about defense spending.