Tuesday, 6 July 2010

US Debt Service and Defense Budget out of control

When Niall Ferguson warns about the level of US debt service surpassing the defense budget in 6 years time he fails to account for the fact that the US defense budget is out of proportion with what any reasonable government would spend on defense. Not only is it grotesquely over-sized but the spending is also woefully misdirected and a gift to the military-industrial complex that produces ever-more sophisticated (and expensive) toys for the generals. In any case, it does not need the 'hottest deficit hawk' to make us aware that the US budget spending needs a severe pruning and that gloating about real or perceived problems in the Eurozone is no substitute for proper housekeeping in the USA.