Question Answered
Some time ago, Matt and I argued with Jerry for a long time about who would win a war between the U.S. and China. Obviously, Jerry believed that China had a legitimate shot.
Recently, my firm asked me to begin covering Defense/Aerospace in the high yield space. I stumbled upon this factoid the other day. President Bush recently asked Congress for $439.3 billion in preparing his 2007 Federal Budget. This is a 7% increase from 2006. Keep in mind that we actually spend nearly $200 billion beyond what is budgeted thanks to supplemental budgeting throughout the year. So we should spend, give or take $50 billion, around $650 billion on defense in 2007.
China, on the other hand, spent $29.9 billion on defense in 2005 according to their government. Most Americans believe it is actually close to triple this so, for the sake of argument, let's say they spent $90 billion on defense in 2005. Assuming aggressive increases, they MIGHT be able to get to $125 billion by 2007.
Is there any question as to who would win this fight? I mean, obviously everyone loses, but come on. I'll even let them have Russia and their $18 billion defense budget.
Recently, my firm asked me to begin covering Defense/Aerospace in the high yield space. I stumbled upon this factoid the other day. President Bush recently asked Congress for $439.3 billion in preparing his 2007 Federal Budget. This is a 7% increase from 2006. Keep in mind that we actually spend nearly $200 billion beyond what is budgeted thanks to supplemental budgeting throughout the year. So we should spend, give or take $50 billion, around $650 billion on defense in 2007.
China, on the other hand, spent $29.9 billion on defense in 2005 according to their government. Most Americans believe it is actually close to triple this so, for the sake of argument, let's say they spent $90 billion on defense in 2005. Assuming aggressive increases, they MIGHT be able to get to $125 billion by 2007.
Is there any question as to who would win this fight? I mean, obviously everyone loses, but come on. I'll even let them have Russia and their $18 billion defense budget.
posted by Fresh at
4:14 PM
8 Comments:
but since we spend 10x what we should on things - say a 20 dollar hammer = 200 dollars, maybe it's equal?
According to the movie Independence Day, that $200 dollar hammer goes to maintaing the weather weapons program, the Ken Lay is really alive fund, and the Roswell, NM aliens.
We've also been spending like that for a LONG time. Defense spending as a percentage of GDP now runs between 4 and 5% which is as low as it has been (post WWII). In the 1950's it ran as high as 15% and traditionally it has stayed between 6 and 10%.
Which means I bet we have some really cool shit that is classified.
Plus we have weather weapons.
Penny in the journal editorial today. I almost through something through my computer when I read it.
Also, Malpass had an editorial. I think that GDG is saying buy dollars, short yen. Stick that in your crack pipe and smoke it.
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The Penny editorial is a prime example why I rarely read WSJ editorials. The last editorial I read - quite some time ago - was some schmuck lamenting the decline of the manufacturing sector. His main argument was that it was the primary wealth generator in the country. Yes, manufacturing continues to decline in this country while we keep getting richer. Freakin schmucks.
Doug are you up at 5:32 in the morning?
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