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Military spending on the up


Faustian

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Truly incredible figures....especially for America, George Bush spent BIG!

 

http://news.bbc.co.uk/1/hi/business/8086117.stm

 

Military spending sets new record

 

By Jorn Madslien

Business reporter, BBC News

 

 

The value of military hardware manufacturers has soared.

Global military spending rose 4% in 2008 to a record $1,464bn (£914bn) - up 45% since 1999, according to the Stockholm-based peace institute Sipri. In contrast with civilian aerospace and airlines, the defence industry remains healthy.

 

"The global financial crisis has yet to have an impact on major arms companies' revenues, profits and order backlogs," Sipri said. Peace-keeping operations - which also benefit defence firms - rose 11%.

 

Missions were launched in trouble spots such as Darfur and the Democratic Republic of the Congo.

"Another record was set, with the total of international peace operation personnel reaching 187,586," said Sipri, or Stockholm International Peace Research Institute.

 

Growth industry

 

As the world's aerospace and defence industry prepares for next week's Paris air show centenary, it seems much of the focus is set to shift away from troubled civilian aircraft makers, which are struggling with reduced orders from recession-hit airlines, towards the companies that make fighter jets and other military hardware.

 

The top 10 global arms producers

 

Boeing $30.5bn

BAE Systems $29.9bn

Lockheed Martin $29.4bn

Northrop Grumman$24.6bn

General Dynamics $21.5bn

Raytheon $19.5bn

EADS (West Europe) $13.1bn

L-3 Communications $11.2bn

Finmeccanica $9.9bn

Thales $9.4bn

Source: Sipri

 

The purchasing power of peace

Source: Sipri. All figures from 2007.

 

In total, the 100 leading defence manufacturers sold arms worth $347bn during 2007, the most recent year for which reliable data are available.

 

Almost all the companies were American or European. Some 61% of the total was accounted for by 44 US companies, with 32 West European companies accounting for a further 31%. Other companies were Russian, Japanese, Israeli and Indian.

 

"Since 2002, the value of the top 100 arms sales has increased by 37% in real terms," Sipri said. "The US presidency of George W Bush... was a period of continuity in the arms industry. This followed a period of consolidation in the 1990s and early 2000s."

 

The US aerospace and defence giant Boeing remains the world's largest, with arms sales of $30.5bn during 2007. The UK's BAE Systems ranked a close second, with arms sales of $29.9bn, while Lockheed Martin was third with $29.4bn in sales.

Big spender

 

The top 10 military spenders

 

USA $607bn

China $84.9bn

France $65.74bn

UK $65.35bn

Russia $58.6bn

Germany $46.87bn

Japan $46.38bn

Italy $40.69bn

Saudi Arabia $38.2bn

India $30.0bn

Source: Sipri. All figures from 2008.

 

The US remains the biggest spender, accounting for 58% of the total global spending increase during the decade, though China and Russia have reduced the gap.

Both tripled military spending over the decade, and Russia "is maintaining plans for further increases despite severe economic problems".

Military spending in the Middle East fell slightly during 2008, but Sipri saw this as a temporary drop. "Many countries in the region [are] planning major arms purchases," Sipri said.

 

One exception was Iraq, whose military budget rose 133% during 2008 when compared with 2007. "Iraq remains highly dependent on the US for ams supplies, with numerous orders planned," Sipri says.

 

US military spending accounted for 58% of the total global spending increase during the decade, with extra funds set aside to fight the "war on terror".

 

[color:red]In addition, the wars in Afghanistan and Iraq cost the US $903bn.[/color]

 

"The idea of the 'war on terror' has encouraged many countries to see their problems through a highly militarised lens, using this to justify high military spending," said Sam Perlo-Freeman, head of the military expenditure project at Sipri, or Stockholm International Peace Research Institute.

 

Trouble ahead?

[color:red]High levels of military spending can cause economic difficulties for even the wealthiest of nations, Sipri insisted.

"During the eight-year presidency of George W Bush, US military expenditure increased to the highest level in real terms since World War Two," Sipri said.[/color]

 

[color:red]"This increase has contributed to soaring budget deficits," the yearbook states, pointing to how both the Iraq and Afghanistan conflicts were funded "primarily through emergency supplemental appropriations outside the regular budgetary process", funded by borrowing.[/color]

 

"Arms companies may face reduced demand in the future if governments cut military spending in response to rising budget deficits," Sipri observed.

 

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Probably after every early war the US fought. Remember that until the late 1800s, the US tried to rely on a militia system - which never worked all that well except in small local conflicts (Indian squabbles). I imagine it is only since WWII that things have changed, thanks to the Cold War and the current world mess.

 

Ever seen films of the US sinking perfectly good warships just for the hell of it in the 1920s and early '30s? Remember the proposal about that time to abolish the USMC as "unnecessary"? I knew a retired colonel who was commissioned in the Army in the late 1930s. He said the Army was so small that many officers were retiring as O-3s. Post commanders might be O-2s.

 

Even between Korean and Vietnam there was a big military cutback. A buddy joined the Marines in 1956. He told me it took about two years to make E-2, and you'd get E-3 at around three years. E-4 and up were career ranks. It was Vietnam that brought about the rapid promotions. I know a retired sergeant major who made E-9 in just 9 years!

 

Of course, this is not to say the Feds didn't spend a helluva lot of taxpayer money on fancy technology and aircraft at the same time they were shafting the military personnel.

 

:dunno:

 

 

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True, but my point is, it almost never goes down an if it does, it shoots (heh!) right back up to a (at the time) unheard of level in about 10 years or so.

 

Now of course after a major war, WWII Civil, Vietnam, of course it will go down as we quite using $1m missiles or needing new battleships. But over a whole, over time, military spending never goes down for long.

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Sadly agreed. The US simply likes war too much. Loves it, in fact (I laugh when some pol says the US is a peace-loving nation).

 

I do not think that there has been a year in my lifetime that we were NOT blowing up some country. :(

 

Cheers,

SD

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