The U.S. versus the bond vigilantes
James Joyner examines Secretary Gates' defense budget:
Again, this is hardly "austerity" in the sense the rest of the NATO Allies are experiencing. But that's a reflection of not only greater financial resources here but of the responsibilities that come with being a global superpower.Further, let me again re-emphasize that Gates is not pretending that these are deep cuts. Or "cuts" at all. Rather, he's recognizing that the era of unlimited growth in the American defense budget are over, at least for a while, and acting accordingly.
I think this reality - taken together with an obvious unwillingness on the part of the political establishment to tackle entitlement spending - means that some form of bond market-provoked crash austerity program of the likes that is currently roiling Greece and Ireland has now become more likely for the U.S. over the medium term. But at least we'll have met our "global responsibilities."
(AP Photo)
